HomeMy WebLinkAbout06-07-2000 Minutes
MINUTES
MAYOR AND COMMON COtlNCIL AND
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
JOINT ADJOURNED REGULAR MEETING
JUNE 7, 2000
ECONOMIC DEVELOPMENT AGENCY
BOARD ROOM
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 8:15 a.m., Monday, June 5, 2000, in
the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California.
The City Clerk has caused to be posted the order of the adjournment of said
meeting held on Monday, June 5, 2000, and has on file in the Office of the City Clerk
an affidavit of said posting together with a copy of said order which was posted at 8:00
a.m., Tuesday, June 6, 2000, on or near the door of the place at which said meeting
was held.
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 7,2000, in the Economic Development Agency Board Room,
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, Schnetz, Suarez, Anderson, McCammack;
Senior Assistant City Attorney Carlyle, City Clerk Clark, City Administrator Wilson.
Absent: Council Members Lien, McGinnis.
Also present: Economic Development Agency Executive Director Van Osdel,
Economic Development Agency Administrative Services Director Lindseth, and
Director of Finance Pachon.
BUDGET DELIBERATIONS - FISCAL YEAR 2000/01 - DISCUSS &
TAKE POSSIBLE ACTION - CITY & ECONOMIC DEVELOPMENT
AGENCY (EDA) BUDGETS. (1)
City Administrator Wilson reviewed the schedule for the budget meetings and
what staff hoped to accomplish at each meeting. He noted that today would be a review
of both the City and EDA budgets.
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Economic Development Al!encv Presentation
Agency Executive Director Van Osdel noted that the EDA budget was projected
at over $45 million; however, over $41 million was already obligated to existing
obligations, bond payments, etc. He advised that the Agency was anticipating a budget
deficit of $1,579,000--a larger amount than what the Council/Commission had been led
to believe. He itemized four expenditures that helped to contribute to the larger deficit,
as follows: 1) a balloon payment of $470,000 on a Section 108 loan relative to the
Westside Shopping Center; 2) a payment of $100,000 to the Housing Fund to take care
of audit findings; 3) an $80,000 parking agreement with the State relative to the
Cinema; and 4) the Agency's membership fee to IEEP.
Barbara Lindseth, Director of Administrative Services, distributed and reviewed
with the Council the following handouts: 1) the 2000-01 Fiscal Year Revenue and
Expenditure Summary Worksheet, 2) the Existing Obligations, Bond Payments,
Projects and Programs (which account for 92 percent of the budget), 3) the
Discretionary Expenditures (8 percent of the budget), and 4) the 2000-01 Cash Flow
Analysis, Tax Increment/Bond Proceeds.
Ms. Lindseth answered questions and discussed various issues with the Council
including the Master Services Agreement with the City, the value of land owned by the
Agency, security for the new Cinema, and the anticipated $1.5 million deficit (which
will eventually come from the $8.5 million now in reserves).
Mayor Valles called on the following individuals, who had submitted speaker's
slips, to address the Council.
Curtis Stout, Treasurer for the Northwest Project Area Committee (PAC),
distributed a document entitled, "Northwest Project Area Committee Planned Budget,
2000-2001 Fiscal Year" and reviewed said document with the Council. He called
particular attention to the PAC's proposed Property Maintenance-Abatement Program,
with a proposed budget of $20,000, to be used for abatement and code compliance
work. The total PAC budget, as submitted by Mr. Stout, amounted to $79,500.
Council Member Estrada inquired whether the PAC could apply for Community
Development Block Grant (CDBG) funds for this purpose, and was advised by Senior
Assistant City Attorney Carlyle that they would be eligible to apply for CDBG funds to
be used for specific purposes, including blight eradication. It was also suggested that
the PAC work with the neighborhood associations to address the blight problem in their
area.
RECESS MEETING
At 3:25 p.m., Mayor Valles declared a short recess.
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RECONVENE MEETING
At 3:47 p.m., Mayor Valles reconvened the joint adjourned regular meeting of
the Mayor and Common Council and Community Development Commission.
ROLL CALL
Roll call was taken by City Clerk Clark with the following being present:
Mayor Valles; Council Members Estrada, Schnetz, Suarez, Anderson, McCammack;
Senior Assistant City Attorney Carlyle, City Clerk Clark, City Administrator Wilson.
Absent: Council Members Lien, McGinnis.
Also present: Economic Development Agency Executive Director Van Osdel,
Economic Development Agency Administrative Services Director Lindseth, and
Director of Finance Pachon.
Citv Presentation
City Administrator Wilson advised that things are looking up for the City this
year due to a number of factors, including careful financial management and economic
growth.
Barbara Pachon, Director of Finance, reviewed the City's current year budget,
noting that the City is right on target with mid-year estimates. She advised that the
undesignated fund balance as of June 30, 2000, is now estimated at about $3.9 million.
This is $702,100 more than what was projected at mid-year, due in part to sales tax
coming in better than projected.
Ms. Pachon advised that there is one anticipated decrease; Southern California
Edison will be going through a billing conversion, and instead of paying in advance of
collections, they will pay only on what is collected. Due to this billing change, the City
will receive only 11 Utility User Tax (UUT) payments from Edison, instead of the 12
payments projected at mid-year.
Ms. Pachon proceeded to review with Council and answered questions relative
to the General Fund revenues, which are projected to be approximately $78,900,000.
This revenue is generated by sales tax, motor vehicle in-lieu fees, property taxes,
business registration, utility users tax, etc.
City Administrator Wilson reviewed several General Fund expenditures as
outlined in the handout titled, "FY 2000-2001 Budget Workshop."
Mr. Wilson advised that there are two issues pending which would benefit the
City--l) possible one-time State discretionary funds (ERAF offset) which would amount
to $789,000 for the City, and 2) PERS Miscellaneous Category super-over funding.
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Director Pachon provided a detailed explanation of what it means to be a PERS
Super-Over Funded Agency. She noted that this allows the City to utilize the excess
funding to offset the 7 percent employee rate currently paid by the City per approved
MOU's. The City's estimated savings would be $249,200 for every 1 percent (or
$1,744,400 for all 7 percent).
Mavor's Recommendations for Budl!et Excess
City Administrator Wilson reviewed the following recommendations for use of
the excess funds in the City's budget:
I. Increase reserves - goal of 10 percent
2. Focus on one-time infrastructure investments
3. Quality of life issues
Council Member Schnetz asked if there was any way the Council could make a
commitment to figure out some ongoing infrastructure goals.
Mayor Valles noted that these are one-time dollars; however, a plan does need
to be in place for these infrastructure items, so each ward is aware that they will have
their turn and get their money, but it will be by planned projects rather than a little here
and a little there.
Michael Hays, Director of Development Services, noted that the next budget
workshop would cover the Capital Improvement Program.
Council Member Estrada stated that it is difficult to wear two hats--City Council
and Commission--especially when one agency is short of money and the other has
extra. She mentioned specifically the $600,000 that the Agency is still picking up for
the City, and appealed to her colleagues to consider directing part of the City's
overflow back to the Agency to cover this expense.
Ms. Estrada also noted that the City is currently involved in three projects
which hold great potential for the City--the lakes and streams project, reuse of the
former Norton Air Force Base, and downtown revitalization. She stated that she would
like to see about $200,000 of this extra money directed to the Mayor's budget in order
to hire a person who has planning and redevelopment experience to oversee these three
major projects.
She also suggested putting some of the money back into the Police Department
to help in achieving the City's goal of "being the safest city in Southern California" and
also suggested that the Council consider reinstating the Administrative Assistant to the
Council position back in the Council Office budget.
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Mayor Valles noted that one of the toughest things is having patience when
wanting to get things done. She stated that although the City is in a comfortable
position, everyone must keep in mind that these are one-time monies. She added that it
would be unwise to become encumbered with ongoing costs and advised the Council to
proceed with caution.
Council Member Schnetz stated that he would like to see the 50/50 match on the
sidewalks be increased by about $20,000 and to also include sewer laterals; and another
$30,000 to the plumbers for repair and upgrade of the sprinklers in the parks.
The following members of Inland Congregations United for Change (ICUC)
asked the Council to consider using City resources and staff to meet the needs of
thousands of children who have been retained this year due to the new retention
program and other at-risk children. They asked the Council to support the educational
system; and more specifically, to support tutorial sites. the expansion of
homework/learning centers, and the use of cable television in meeting the needs of
these students.
Linda Pederson, 2939 Stoddard Avenue, San Bernardino, CA
John Peterson, 5474 Elmwood Road, San Bernardino, CA
Ann Blades, 1295 Valencia Avenue, San Bernardino, CA
Pat Tyler, 7480 Sterling Avenue, San Bernardino, CA
Mayor Valles advised that the after school program had been a partnership of
the schools, the County, and the University. She stated that she would ask Linda
Jenkins of her office to explore a similar plan for the tutorial programs.
SEMI-ANNUAL UPDATE - CITY'S GOALS & ACTION PLANS
(NB1)
(Note: This item was continued from the Mayor and Council meeting of June 5,
2000; however, the agenda for the June 7, 2000 meeting had already been posted.
Therefore, the item was designated as a New Business matter, since the continuance
was subsequent to the posting of the agenda.)
Council Member Anderson made a motion, seconded by Council Member
Suarez, and unanimously carried, that the matter arose subsequent to the posting of the
agenda.
Council Member Anderson made a motion, seconded by Council Member
Estrada, and unanimously carried, that the matter be continued to the budget meeting
scheduled for 4:00 p.m. on June 13, 2000, in the Economic Development Agency
Board Room.
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ADJOURNMENT (2)
At 5:14 p.m., the meeting adjourned to 4:00 p.m., June 8, 2000, in the
Economic Development Agency Board Room for a Charter Review Committee
Workshop.
RACHEL G. CLARK
City Clerk
By: t.~ ~ ~~
Linda E. Hartzel
Deputy City Clerk
No. of Items: 3
No. of Hours: 3
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