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HomeMy WebLinkAbout06-24-1994 Minutes MINUTES MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING JUNE 24, 1994 COUNCIL CHAMBERS This is the time and place set for a joint adjourned regular meeting of the Mayor and Common Council of the City of San Bernardino from the adjourned regular meeting held at 7:00 p.m., Wednesday, June 22, 1994, at the Sturges Auditorium, 780 North "E" Street, San Bernardino, California. The City Clerk has caused to be posted the Order of Adjournment of said meeting held on Wednesday, June 22, 1994, 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 11:45 a.m., Thursday, June 23, 1994, on the bulletin board adjacent to the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The joint adjourned regular meeting of the Mayor and Common Council of the City of San Bernardino was called to order by Mayor Minor at 8:03 a.m., Friday, June 24, 1994, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Rachel Clark with the following being present: Mayor Minor; Council Member Devlin; Senior Assistant City Attorney Morillo, City Clerk Rachel Clark, City Administrator Shauna Clark. Absent: Council Members Negrete, Curlin, Hernandez, Oberhelman, Pope-Ludlam, Miller. RECESS MEETING At 8:04 a.m., Mayor Minor recessed the meeting to 9:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RECONVENE MEETING At 9:05 a.m., Mayor Minor reconvened the joint adjourned regular meeting of the Mayor and Common Council of the City of San Bernardino in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. 1 6/24/94 ROLL CALL Roll call was taken by City Clerk Rachel Clark with the following being present: Mayor Minor; Council Members Negrete, Curlin, Hernandez, Oberhelman, Devlin, Pope-Ludlam, Miller; Senior Assistant City Attorney Morillo, City Clerk Rachel Clark, City Administrator Shauna Clark. Absent: None. PROPOSED FISCAL YEAR 1994/95 BUDGET DELIBERATIONS CONTINUED FROM JUNE 15, 1994 (1) This is the time and place continued to review the proposed Fiscal Year 1994/95 budget. In a memorandum dated June 20, 1994, Barbara Pachon, Director of Finance, stated that based on the direction from the Mayor and Council at the June 15, 1994 meeting, the City Attorney's budget has been adjusted to reflect a $274,100 savings in Personnel Services costs, reducing the preliminary departmental total of $1,852,800 to the revised departmental allocation of $1,578,700. The following positions have been deleted from the City Attorney's budget: one Legal Secretary Trainee position for a savings of $29.400, two Investigator positions for a savings of $128,800; and two positions proposed for Fiscal Year 1994/95, one Legal Secretary I position for a savings of $34,500, and one Deputy City Attorney IV position for a savings of $81.400, including salary and benefits. The deleted positions are currently vacant with the exception of the two Investigator positions. If the two Investigators are terminated, the City Attorney's budget would incur approximately $5,000 in expenses for payment of accrual balances. At this time, none of the funds deleted from Personnel Services have been reallocated to the Outside Counsel account. In a memorandum dated June 23, 1994, Shauna Clark, City Administrator, stated that the proposed Fiscal Year (FY) 1994/95 budget presented to the Mayor and Common Council on June 15, 1994 contained a shortfall of $833,700; however, the Mayor and Council took action on June 15, 1994 to reduce the shortfall to $559,600. Ms. Clark recommended that the following options be considered in an effort to eliminate the budget deficit, and allow adoption of the FY 1994/95 budget: REFINANCE PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) UNFUNDED LIABILITY - $400.000 - The City of San Bernardino owes $8,020,800 to the Public Employees Retirement System (PERS) which is an unfunded liability. PERS has offered cities the option of extending the time period to pay back unfunded liabilities. Finance Director Barbara Pachon has made application to PERS for an estimate on reducing our annual PERS contribution through an extension, and PERS has estimated that if the City took advantage of the plan and extended the payback period to the year 2011, the City would save approximately $400,000 annually. ELIMINATE REFUSE CHARGES FOR CITY FACILITIES - $100.000 - The City's general fund pays the Refuse Department for services at City facilities. It is proposed that the Refuse Department absorb these costs. Most other cities do not bill themselves for refuse services whether provided in house or by contract. 2 6/24/94 CHARGE IMPOUND FEE FOR POLICE TOWS - $50.000 - The Police Department is required to tow and impound vehicles for various reasons. Tow charges and impound fees are paid when the vehicle is claimed, but the administrative costs of the police staff are not recovered without further Council authorization. If this concept is supported, it is recommended that a public hearing be scheduled to establish a fee for administrative costs associated with Police tows and impounds. TRANS (TAX & REVENUE ANTICIPATION NOTE) PROCEEDS - $20.000 - Staff initially projected that TRANS, arbitrage of property tax revenue stream, would net $80,000; however, it netted $100,000, which is $20,000 more than the estimate. Approval of these four recommendations would total $570,000 and create a surplus of $10,000. Understanding that the administrative charge for Police tows and impounds has not been supported in the past, the following recommendation is offered as a substitute, or an additional option: ECONOMIC DEVELOPMENT AGENCY TO SHARE THE COSTS OF MUNICIPAL RESOURCE CONSULTANTS (MRC) WITH CITY - $50.000 - The City has a contract with Municipal Resource Consultants (MRC) to audit sales tax accounts to ensure the City is receiving its fair share allocation, to prepare quarterly sales tax reports, provide industry profiles, and train staff on sales tax issues. This information is shared with the Economic Development Agency to aid in business retention and recruitment efforts. The annual cost of the contract is based upon a percentage of the additional revenue that MRC identifies each year. The City Administrator's Office continues to review City operations to identify cost savings and revenue opportunities, and is presently reviewing development fees, and positions to identify further savings. Staff is aware that the State of California has not yet adopted a budget and may not until after the November elections, and will advise the Mayor and Council of any news on the State budget. Discussion ensued regarding the budget balancing options presented by City Administrator Shauna Clark in the memorandum dated June 23, 1994, and the funds received from the County of San Bernardino pursuant to a court approved settlement agreement relative to fines and forfeiture monies collected by the County on behalf of the City. Fred Wilson, Assistant City Administrator, answered questions regarding the funds received from the County of San Bernardino pursuant to a court approved settlement agreement relative to fines and forfeiture monies collected by the County on behalf of the City, and how those funds are reflected in the proposed FY 1994/95 budget, and the proposed refinancing of the PERS unfunded liability. 3 6/24/94 Shauna Clark, City Administrator, answered questions regarding the funds received from the County of San Bernardino pursuant to a court approved settlement agreement relative to fines and forfeiture monies collected by the County on behalf of the City and how those funds are reflected in the proposed FY 1994/95 budget, the services provided by Municipal Resource Consultants, and the proposed elimination of refuse charges for City facilities. Barbara Pachon, Director of Finance, answered questions regarding the fines and forfeiture monies collected by the County on behalf of the City, and how those funds are reflected in the proposed FY 1994/95 budget; and the recommended refinancing of the PERS unfunded liability. Discussion continued regarding the recommendations presented by City Administrator Shauna Clark in the memorandum dated June 23, 1994. Concern was expressed regarding the impact that the Police administrative charge for towed and impounded vehicles could have on low income residents; and the merits of having the Economic Development Agency fund various City contracts and projects. Discussion continued regarding which services are funded by the general fund, the refuse fund, and redevelopment funds; what other options exist for eliminating the budget deficit such as imposing the Service Users Tax (utility tax) on water, gas and sewer bills, increasing the Service Users Tax (utility tax), imposing an entertainment tax, and allowing card parlors to operate within the City. Council Member Hernandez made a motion, seconded by Council Member Oberhelman, and unanimously carried, to approve refinancing of the Public Employees Retirement System (PERS) unfunded liability in the amount of $400,000. Council Member Oberhelman made a motion, seconded by Council Member Curlin, and unanimously carried, to accept the TRANS (tax and revenue anticipation note) additional proceeds in the amount of $20,000. Council Member Devlin made a motion, seconded by Council Member Oberhelman, and unanimously carried, to approve the elimination of refuse charges for City facilities in the amount of $100,000. Council Member Devlin made a motion, seconded by Council Member Oberhelman, to authorize the Police Department to charge an administrative fee for vehicles impounded or towed by the Police Department. (Note: There was no vote taken.) Senior Assistant City Attorney Morillo explained that the City currently imposes a Police Department administrative charge for vehicles impounded as the result of drunk driving arrests. 4 6/24/94 Discussion ensued regarding the circumstances under which a vehicle is impounded or towed by the Police Department. City Administrator Clark clarified that the State Vehicle Code requires the Police Department to impound or store towed vehicles under certain circumstances, and answered questions regarding the proposed police administrative fee for impounded or towed vehicles. Discussion continued regarding the proposed police administrative charge, and the circumstances under which a vehicle is impounded or towed by the Police Department. Council Member Curlin made a substitute motion, seconded by Council Member Hernandez, that a public hearing be set to authorize the Police Department to charge an administrative fee for vehicles impounded or towed, and that the Economic Development Agency share in the cost of the Municipal Resource Consultant (MRC) contract in the amount of $39,600.00. (Note: There was no vote taken.) Discussion continued regarding the recommendations proposed by City Administrator Shauna Clark in the memorandum dated June 23, 1994. Council Member Pope-Ludlam made a motion, seconded by Council Member Miller, and unanimously carried, to increase the Fiscal Year 1994/95 Fines and Penalties Account #1410 - General Fines line item by $70,000, to reflect $500,000, instead of the $430,000 amount reflected in the proposed budget. Senior Assistant City Attorney Morillo recommended that the City Attorney's budget be increased to authorize the addition of the two positions recommended in the City Attorney's Office Management Audit. Mr. Morillo stated that because of the action taken at the June 15, 1994 meeting to delete five positions (three existing positions and two proposed positions) within the City Attorney's Office, the ability of the City Attorney to function in the manner prescribed by the City's Charter and Municipal Code have been severely hindered. He explained that two of the positions deleted at the June 15, 1994 meeting were the additional Attorney and Legal Secretary recommended by the Management Audit, and that the two Investigators perform tasks that would otherwise be performed by Attorneys. Discussion ensued regarding management of the City Attorney's Office. RES. 94-163 - RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING THE FINAL BUDGET OF SAID CITY FOR THE FISCAL YEAR 1994/1995. (1) Council Member Oberhelman made a motion, seconded by Council Member Pope- Ludlam, that further reading of the resolution be waived; and that said resolution be adopted. (Note: The vote was taken after discussion.) 5 6/24/94 Discussion continued regarding the City Attorney's Office budget for FY 1994/95. Senior Assistant City Attorney Morillo answered questions regarding personnel services and outside counsel expenses in the City Attorney's Office. Council Member Devlin made a substitute motion, seconded by Council Member Miller, that the following positions be approved and restored to the City Attorney's budget: one Deputy City Attorney IV, one Legal Secretary I, and one Legal Secretary Trainee. Discussion continued regarding the City Attorney's Office budget for FY 1994/95. John Thur, 3936 North Golden, San Bernardino, CA, recommended that the City Attorney's Office Management Audit be implemented in its entirety. The substitute motion failed by the following vote: Ayes: Council Members Oberhelman, Devlin, Miller. Nays: Council Members Negrete, Curlin, Hernandez, Pope- Ludlam. Absent: None. City Administrator Shauna Clark read the title of said resolution. The motion carried, and Resolution No. 94-163 was adopted by the following vote: Ayes: Council Members Negrete, Curlin, Hernandez, Oberhelman, Devlin, Pope-Ludlam, Miller. Nays: None. Absent: None. PROCLAMATION - EASTER SEAL SOCIETY DAY - JUNE 26, 1994 (NB-l) Phil Arvizo, Executive Assistant to the Council, read a proclamation declaring June 26, 1994 as Easter Seal Society Day in the City of San Bernardino in recognition of the 50th anniversary of the Easter Seal Society of the Inland Counties. Bob Miller accepted the proclamation. RECESS MEETING At 11: 11 a.m., Mayor Minor declared a ten-minute recess. RECONVENE MEETING At 11:18 a.m., Mayor Minor reconvened the joint adjourned regular meeting of the Mayor and Common Council of the City of San Bernardino in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. 6 6/24/94 ROLL CALL Roll call was taken by City Clerk Rachel Clark with the following being present: Mayor Minor; Council Members Negrete, Curlin, Hernandez, Devlin, Pope-Ludlam, Miller; City Clerk Rachel Clark, City Administrator Shauna Clark. Absent: Council Member Oberhelman; Senior Assistant City Attorney Morillo. RES. 94-164 - RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO MENTONE TURF SUPPLY FOR MAINTENANCE OF LANDSCAPING FOR CAROUSEL MALL, CITY HALL AND VARIOUS OTHER CITY FACILITIES. (Continued from June 20, 1994) (2) RES. 94-165 - RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO MENTONE TURF SUPPLY FOR MAINTENANCE OF LANDSCAPING IN ASSESSMENT DISTRICT NOS. 956 AND 968. (Continued from June 20, 1994) (3) RES. 94-166 - RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO MENTONE TURF SUPPLY FOR MAINTENANCE OF LANDSCAPING IN ASSESSMENT DISTRICT NO. 982. (Continued from June 20, 1994) (4) Rachel Clark, City Clerk, read the titles of said resolutions. Council Member Miller made a motion, seconded by Council Member Devlin, that further reading of the resolutions be waived; and that said resolutions be adopted. (Note: The vote was taken after discussion.) SENIOR ASSISTANT CITY ATTORNEY MORILLO RETURNED At 11:21 a.m., Senior Assistant City Attorney Morillo returned to the Council meeting. City Administrator Shauna Clark, explained that the Minority Business Enterprise and Women's Business Enterprise (MBE/WBE) goals do not apply to the contract for maintenance of landscaping in Assessment District Nos. 956, 968 and 982, items three and four, because the goals are applied on a aggregate basis to Public Works contracts. Discussion ensued regarding the Minority Business Enterprise and Women's Business Enterprise (MBE/WBE) program goals. Roger Hardgrave, Director of Public Works/City Engineer, answered questions regarding the MBE/WBE program goals. 7 6/24/94 Dan Griffen, Mentone Turf Supply, P. O. Box 592, Mentone, CA, stated that 98% of his employees are minority, and felt that he had made a good faith effort to comply with the MBE/WBE program goals. COUNCIL MEMBER OBERHELMAN RETURNED Council Member Oberhelman returned to the Council meeting and took his place at the council table. Discussion ensued regarding the intent of the program to provide opportunities for businesses owned by minorities and women versus the laudable goal of providing employment opportunities for minorities and females, the merits of the MBE/WBE program, and how to expand opportunities for minority and female business owners to compete for City contracts. Council Member Oberhelman made a motion, seconded by Council Member Miller, that further reading of the resolutions be waived; and that said resolutions be adopted. The motion carried, and Resolution Nos. 94-164,94-165, and 94-166 were adopted by the following vote: Ayes: Council Members Negrete, Oberhelman, Devlin, Pope-Ludlam, Miller. Nays: Council Members Curlin, Hernandez. Absent: None. CITY ADMINISTRATOR SHAUNA CLARK EXCUSED At 11 :35 a.m., City Administrator Shauna Clark left the Council meeting. COMMUNITY DEVELOPMENT COMMISSION - JOINT ADJOURNED REGULAR MEETING At 11:35 a.m., Chairman Minor called the joint adjourned regular meeting of the Community Development Commission to order in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. At this time, the Mayor and Common Council, acting as the Community Development Commission, took action on Community Development Commission items. 8 6/24/94 ADJOURNMENT (5) At 12:20 p.m., the meeting was adjourned to 10:00 a.m., Monday, June 27, 1994, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RACHEL CLARK City Clerk By /" ~'~~&?-C-<0" -~~ J Melanie Vale Deputy City Clerk No. of Items: 9 No. of Hours: 3.5 9 6/24/94