Loading...
HomeMy WebLinkAbout05-31-1988 Minutes City of San Bernardino, California May 31, 1988 . This is the time and place set for an Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino at the Adjourned Regular Meeting held on 9:03 a.m., Monday, May 23, 1988, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The City Clerk has caused to be posted the Notice of Adjournment of said meeting held on Monday, May 23, 1988, at 9:03 a.m., and has on file in the Office of the City Clerk an affidavit of said posting together with a copy of said Notice which was posted at 10:30 a.m., on Tuesday, May 24, 1988, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The Adjourned Regular Meetlng of the Mayor and Common Council of the City of San Bernardino was called to order by Mayor Wilcox, at 11:17 a.m., Tuesday, May 31, 1988, in the Management Information Center (MIC), Sixth Floor, City Hall, 300 North "D" Street, San Bernardino, California. . ROLL CALL Roll Call was taken by Deputy City the following being present: Mayor Members Estrada, Reilly, Flores, Minor, Assistant City Attorney Barlow, Deputy Deputy City Administrator Robbins. Members Maudsley, Pope-Ludlam. Clerk Reese with Wilcox; Council Pope-Ludlam; Sr. City Clerk Reese, Absent: Council PUBLIC COMMENTS There were no public comments. (A) APPROVE MINUTES - APRIL 26, 1988 Council Member Minor made a motion, seconded by Council Member Reilly and unanimously carried, to approve the minutes of the meeting of the Mayor and Common Council of the City of San Bernardino held on April 26, 1988, as submitted in typewritten form. (1) WORKSHOP - GENERAL OBLIGATION BOND MEASURE Deputy City Adminlstrator Robbins introduced the background on the proposed General Obligation Bond measure. He stated that at the meeting of the Mayor and Council on May 16, 1988, there was a request to set a time to review material relating to a General Obligation Bond Measure, to determine if there were another source of funding, and to prioritize projects. (2) . - 1 - 5-31-88 COUNCIL MEMBERS MAUDSLEY, POPE-LUDLUM ARRIVED At 11:20 a.m., Council Members Maudsley and pope-Ludlam arrived at the Council Meeting. . In a memorandum dated May 13, 1988, Deputy City Administrator Robbins presented information regarding the proposed General Obligation Bond which is being considered cO assist the City in funding various infrastructure related needs. A summary of the project departmental needs that were considered for inclusion are as follows: 1. Parks, Recreation and Community Services $ 9,675,000 50,756,900 9,100,000 2. Public Works 3. Public Services TOTAL $69,531,900 The following Public Building needs ldentified for consideration: have been 1. Police Station . 2. Fire Station (2) $20,000,000 3,000,000 3,000,000 3. Library (3) TOTAL $26,000,000 Attached to the memorandum was a Report on Financing Alternatives for Project Proposed for General Obligation Bonds, including project descriptions from the Redevelopment Agency, Parks, Recreation & Community Services, Public Works and Public Services Department. A discussion ensued regarding the needs of the City. It was suggested that a list of priorities be presented to the voters where the City can present its needs in view of the financial constraints now and in the future and ask them whether they are willing to buy into these costs at today's prices vs. tomorrow prices. It was also suggested that the Council determine if it wants to . - 2 - 5-31-88 . educate the community regarding the priorities, and give the citizens an opportunity to decide whether or not they want to be taxed for these priorities. A reasonable dollar amount must be established for these improvements. A would taxes discussion ensued regarding the amount of taxes be imposed if the Bond Measure were adopted. would be based on the value of the home. that The Manuel Moreno, Jr. Director, Public Services, chere were three categories in his department considered as three-year requirements: stated to be 1. Streets 2. Concrete work 3. Part of sewers It was stated that there would be a 25 year period in which to repay the $100,000,000. Craig Graves, City Treasurer, answered questions, stating that what is being considered is requests from all the departments, including street repairs in the Public Services Department, storm drains and street widening in Public Works, police facilities and fire stations. He stated that the buildings would have a 20 - 25 year life span, and that the debt service for the bonds would be amortized over a 25 year period. . Mayor Wilcox suggested that the City study other funding mechanisms that might be available, and emphasized that marketing would have to be done to sell the idea of the General Obligation Bond Measure if it is pursued. Manuel Moreno, Jr., Director of Public Services, explained that four years ago the Mayor and Council put street maintenance as a priority and allocated $600,000, $800,000 and $900,000 for paving needs for three respective years. Last year none was allocated, and nothing is allocated this year. He stated that the average street life on a residential street is 10 years and on major arteries is around five to seven years. Mr. Moreno described various processes to repair streets. Sr. Assistant City Attorney Barlow stated that the City cannot use public monies to promote or oppose any ballot measure. He explained that the City can provide information, but cannot do any lobbying or campaigning. He suggested that since the November election 1S a presidential year election, it would be an appropriate time to place the measure on the ballot, because of the anticipated high voter turn-out. . - 3 - 5-31-88 Mayor Wilcox stated she didn't think that the City can present two dozen projects and have people vote on them. . City Treasurer Graves explained why the General Obligation Bond Measure is being considered, stating that it has the lowest interest rate in terms of all the public financing instruments, but more important, is that it is the only one of the financing instruments that sets a new revenue stream. If the debt service has to be paid from ehe General Fund, then you reduce the amount of dollars available for ongoing maintenance costs in other areas. A discussion ensued regarding the priorities as presented by the different departments. City Treasurer Graves stated that when considering the size of some of the projects being proposed, it was his opinion that it would not be wise to have that debt service absorbed in the General Fund over the next ten to fifteen years. In dealing with projects with a 25 year life span, and a $2,000,000 debt service, the money needed to maintain the streets is eliminated, and that is what has happened in the past. The General Fund should be taking care of those streets, but has been paying the debt service instead. . City Treasurer Graves stated that when a 25 year bond lssue is in place, it should be determined that the projects financed are still there at the end of the 25 years. That is why it is generally recommended that the lmprovements consist of permanent improvements, such as bridges, storm drains, sewers or buildings. If the City continues to pay for those same items with existing revenue sources, then the money that is available to deal with other maintenance type services is decreased. Mr. Graves answered questions regarding the current debt service amounts. Glenda Saul, Executive Director of the Redevelopment Agency, answered questions regarding financing. Manuel Moreno, Jr., Director, Public Services, stated that there is a great inherent value in the existing streets and to protect them and other similar investments, maintenance is essential. City Treasurer Graves explained that if projects are selected that deal with the permanent widening of streets, storm drains, setting up a whole infrastructure in the Tri City Area, a police station that should last 30 years and . - 4 - 5-31-88 possibly agreement these are two new fire stations, depending on a pending with the National Orange Show, the majority of permanent improvements. . Mr. Graves expressed concern about putting street improvements in a General Obligation Bond Issue. The question is not whether they are needed or not, but the issue is the way capital improvements have been handled over the last ten years. Because General Fund monies have been used to pay for those expenses, there has not been ~he necessary money to do street resurfacing and maintenance. Roger Hardgrave, Director of Public Works/City Engineer, answered questions, stating if maintenance on the streets is not done, they deteriorate more quickly, and the City might end up with grid lock, or at least congestion and delays. If the storm drains are not done, there will be floOding. All of these problems would cost the City additional money. Mayor Wilcox stated that the voters in the State had voted for Proposition 13 because they thought their property taxes were too high. It was her opinion that the average property owner east of the freeway is going to complain about the additional cost. That presents a marketing job that has to be done. . Ken Henderson, Director of Community Development, answered questions, stating that, based on information from the General Plan material, approximately 12% - 20% Jf the homes in San Bernardino are at or above $100,000 valuation. City Treasurer Graves answered questions, stating that unless a major change occurs, the City cannot expect any financial assistance from either the State or Federal Governments. He stated there may be some help in some specific areas, such as parks, but he didn't anticipate any revenue. Mr. Graves stated that a year from now, or four years from now, the City will have to have a new pOlice facility and the price will be $20,000,000+. He stated that the City must look to the future and set priorities and urged that a Committee be formed to look at City-wide needs and prioritize them. Mayor Wilcox expressed her opinion that some business and financial people need to be included in the committee who might have ideas about alternative mechanisms for financing. . - 5 - 5-31-88 A letter from Mr. Catalano from the Central City Company was introduced, in which he expressed interest in the property General Obligation Bond Measure. . Council Member Minor made a motion, seconded by Council Member Pope-Ludlam and unanimously carried, to establish a committee to study the feasibility of the proposed General Obligation Bond Measure. The committee is to be comprised of two members from the Ways and Means '~ommittee, one other Council Member, and a representative from each of the seven wards, and one to represent the Mayor. ADJOURNMENT At 12:42 p.m., Council Member Minor made a motion, seconded by Council Member Reilly and unanimously carried, that the meeting be adjourned to 9:00 a.m., Monday, June ), 1988, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. IfJtC/~ ~ Deputy City Clerk . . - 6 - 5-31-88