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HomeMy WebLinkAbout06-10-1989 Minutes f . City of San Bernardino, California June 10, 1989 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 their Adjourned Regular Meeting held at 3:07 p.m., Wednesday, June 7, 1989, in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. The City Clerk has caused to be posted the Order of Adjournment of said meeting held June 7, 1989, 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 9: 00 a.m., Thursday, June 8, 1989, on the door of the place at which said meeting was held. The Adjourned Regular Meeting was called Mayor Holcomb at 9:10 a.m., in the Council City Hall, 300 North "0" Street, San California. to order by Chambers of Bernardino, . INVOCATION The Invocation was given by Phil Arvizo, Executive Assistant to the Council. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Marshall JUlian, City Administrator. ROLL CALL Roll Call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Miller; Senior Assistant City Attorney Barlow, Deputy City Clerk Copeland, Marshall Julian, City Administrator. Absent: Council Member Pope-Ludlam. PUBLIC COMMENTS There were no public comments. (A) OUT OF STATE TRAVEL - POLICE DEPARTMENT LT. W. D. SMITH - WASHINGTON D.C. - 6/12/89 - 9/12/89 POLICE FOUNDATION INTERN PROGRAM In a memorandum dated June 5, 1989, Donald J. Burnett, Chief of Police, stated that Lieutenant W. D. Smith has been invited by the new Drug Czar, William Bennett in Washington, D. C., to attend the Police Foundation Intern Program, June 12, 1989, through September 12, 1989. (1) . 1 6/10/89 r . Chief Burnett stated that Lieutenant Smith has been asked to organize several conferences relative to drugs and violence and community oriented policing, and submit a written document on the results of the conferences to Mr. Bennett. Lieutenant W. D. Smith of the San Bernardino Police Department answered questions concerning the filling of his position while he is in Washington, D. C. A discussion ensued regarding the City continuing to pay Lt. Smith's salary for the period of June 12, 1989 through September 12, 1989. Lt. benefits Program. Smith answered questions regarding the direct the City would receive from the Police Intern COUNCIL MEMBER POPE-LUDLAM ARRIVED Council Member Pope-Ludlam arrived Meeting and took her place at the Council at the Table. Council . CITY ATTORNEY PENMAN ARRIVED City Attorney Penman arrived at the Council Meeting and replaced Senior Assistant City Attorney Barlow. Council Member Estrada made a motion, seconded by Council Flores and unanimously carried, that authorization for Lieutenant W. D. Smith to accept the Intern Program offer by the Police Foundation, be approved. This would commence June 12, 1989, and end September 12, 1989. COMMUNITY DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY - ADJOURNED REGULAR MEETING The Adjourned Regular Meeting of the Community Development Commission/Redevelopment Agency was called to order at 9:213 a.m., by Chairman Holcomb in the Council Chambers of City Hall, 31313 North "D" Street, San Bernardino, California. ROLL CALL Roll Call was taken with the following being present: Chairman Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; City Attorney Penman, Deputy City Clerk Copeland, City Administrator Julian. Absent: None. Also present was Steve Dukett, Executive Director of the Redevelopment Agency. . 2 6/113/89 - --T . CONSIDERATION OF REFUNDING ANY OUTSTANDING OBLIGATIONS BY SELLING FOR RESIDUAL INTEREST _ MILLER AND SCHROEDER BOND COUNSEL This is the time and place set for a Special Redevelopment Agency meeting to consider the refunding of any outstanding obligations where substantial savings can result by selling for residual interest, the issuance of new tax exempt bonds, and the refunding of existing bonds. (R-l, R-2, R-3) Mayor Holcomb stated that he had asked Jim Iverson, of Miller and Schroeder, to make a presentation regarding possible opportunities for generating additional monies in the Redevelopment Agency and Ci ty. He urged the Counci 1 to seriously consider this proposal. Mayor Holcomb reviewed the working relationship the City has had with Miller and Schroeder and explained that they had pioneered the purchasing of tax increment bonds in California, and over the years had satisfactorily handled over one half-billion dollars in funding for various projects for the City. . He explained that he was aware of the loss of some funds last year, but pointed out that the firm had taken steps to indemni fy the Ci ty and the Redevelopment Agency against any loss. Mr. Jim Iverson, Senior Partner of Miller & Schroeder, 505 Lomas Santa Fe Drive, Solano Beach, thanked the Counc i 1 for the opportuni ty to speak, and expressed his concern that actions to rectify past errors were satisfactory to the City. Mr. Iverson explained three concepts that he recommended that the City consider: 1) Refunding any outstanding obligations where substantial savings can result by selling for residual interest. 2) Issuance of new tax exempt bonds; and 3) Refunding of existing bonds. City Attorney Penman explained that a contract between the City and Asterwood had been recommended by Miller and Schroeder in 1988, and it was later learned that Miller and Schroeder had a financial interest in that contract. On July 7, 1988, the City opinion concluding that Government Code Section 1090 consultant to be financially Attorney's Office wrote an "It is a violation of for an outside financial interested in a contract . 3 6/10/89 ~ . which he has recommended or encouraged the Agency to enter into. Disclosure of the financial interest will not relieve the conflict although it may do so for any potential conflicts under the Political Reform Act of 1974." Mr. Penman also read a portion of an opinion prepared by Counsel for Miller and Schroeder as follows: . . . "The acts by Miller and Schroeder in this regard were strictly actions in its capacity as a private business and were not in any way connected to Miller and Schroeder's official capacity for which Miller and Schroeder were engaged by the Agency. "Accordingly, it was not a violation of Government Code Section H1913 for Miller and Schroeder to be finan- cially interested in the arrangement that the company had with the Agency, because Miller and Schroeder's recommendation to the Agency to consult the Company and subsequent involvement with the company were not part of the services Miller and Schroeder had contracted to perform for the Agency." . City Attorney Penman stated there was a possibility his office would recommend the filing of a lawsuit on this matter as the City/Agency has not yet received reimburse- ment of funds that were lost in the FSLIC transaction of 1988, and further, that it was his obligation to advise the Council on legal matters. Mayor Holcomb stated that the matter being considered is a policy matter rather than a legal one. Mr. Iverson stated that his firm is prepared to put money into an escrow account to represent to the City that the City will be repaid should the City loose the appeal to FSLIC. After City Attorney Penman attempted to question Mr. Iverson regarding the legal oplnlon of his counsel relative to Government Code Section 113913, and was called out of order by Mayor Holcomb, he requested that the record show "that the Mayor is refusing to permit the elected City Attorney to bring to the attention of the Mayor and Common Council legal matters". A discussion ensued relative to the duties of the City Attorney as outlined in the City's Charter. . 4 6/113/89 . RECESS MEETING - CLOSED SESSION At 10:00 a.m., Council Member Estrada made a motion, seconded by Council Member Pope-Ludlam and unanimously carried, that further discussion relative to this matter be discussed in Closed Session pursuant to Government Code Section 54956.9(c), so that Council may decide whether to initiate litigation. (Continued from June 7, 1989) (2b) CLOSED SESSION At 10:00 a.m., the Closed Session was called to order by Mayor Holcomb in the Conference Room of the Council Chambers in City Hall, 300 North "0" Street, San Bernardino, California. ROLL CALL Roll Call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Rei lly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; City Attorney Penman, Deputy City Clerk Copeland, City Administrator Julian. Absent: None. ADJOURN CLOSED SESSION At 10: 30 a.m., the Closed Session adjourned to the Regular Meeting of the Mayor and Common Council of the City of San Bernardino, California. . RECONVENE MEETING At 10:30 a.m., Mayor Holcomb called the Regular Meeting of the Mayor and Common Council to order in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. ROLL CALL Roll Call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Mi ller; Ci ty Attorney Penman, Deputy City Clerk Copeland, City Administrator Julian. Absent: None. MILLER AND SCHROEDER VERBAL AGREEMENT Mayor HOlcomb announced that the Mayor and Common Counci 1 had arr i ved at a verbal agreement between the City and Miller and Schroeder, that Miller and Schroeder place in escrow, in terms and conditions satisfactory to the City Attorney, the sums that will hold the City harmless from any loss that might incur should the FSLIC appeal not be resolved satisfactorily in favor of the City. . 5 6/10/89 . Mr. Iverson answered questions regarding the long term effects of refinancing the outstanding obligation bonds and explained how the City could retain 90% of the proceeds from the sale of those bonds. Steve Dukett, Executive Director of the Redevelopment Agency, answered questions regarding whether the surplus cash flow presently being received appears in the Redevelopment Agency's budget. Mr. Iverson sta ted tha t the Ci ty' s trustee wi 11 not release information to Miller and Schroeder to do an audit of mortgages that are in default, unless there is authorization from the Mayor and Council. Council Member Pope-Ludlam made a motion, seconded by Council Member Estrada and unanimously carried, that there be affirmation that the provisions of Government Code Section 1090 be adhered to by Miller and Schroeder as part of this entire transaction and any future transactions; and that there be an escrow account established under the preparation of the City Attorney for all funds necessary to hold the City harmless from the FSLIC appeal. . RECESS MEETING - CLOSED SESSION - CONTINUED FROM JUNE 7, 1989 At 11:00 a.m., Council Member Pope-Ludlam made a motion, seconded by Council Member Estrada and unanimously carried, that the meeting be recessed to Closed Session pursuant to the following: Government Code Section 54957 (2c): to consider personnel matters; Government Code Section 54956.9 (b) (1): withits attorney regarding pending litigation, significant exposure to litigation; to confer as there is Government Code Section 54956.9 (a): to confer with its attorney regarding pending litigation which has been intitiated formally to which the City is a party as follows: City of San Bernardino vs. CAL-NEV Pipeline Company, a Delaware Corporation and Does 1 - 100 - San Bernardino Superior Court Case No. 249735. . 6 6/10/89 . CLOSED SESSION At 11:00 a.m., Mayor Holcomb called Session to order in the Conference Room of Chambers of City Hall, 300 North "0" Bernardino, California. the Closed the Council Street, San ROLL CALL Roll Call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; City Attorney Penman, Deputy City Clerk Copeland, City Administrator Julian. Absent: None. Also present were: Barlow, Steve Dukett, Redevelopment Agency. Senior Assistant Ci ty Attorney Executive Director of the MAYOR HOLCOMB EXCUSED At 11:02 a.m., Mayor Holcomb left the Closed Session. ADJOURN CLOSED SESSION At 11: 25 a.m., the Closed Session adjourned to the Adjourned Regular Meeting of the Mayor and Common Council in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. . RECONVENE MEETING At 11: 25 a.m., the Adjourned Regular Meeting of the Mayor and Common Council reconvened in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. ROLL CALL Roll Call was taken with the following being present: Mayor Pro Tempore Reilly; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; City Attorney Penman, Deputy City Clerk Copeland, City Administrator Julian. Absent: None. ATKINS VS HARRIS - MCC 109709 - SAN BERNARDINO COUNTY MUNICIPAL COURT Mayor Pro Tempore Reilly announced that in Closed Session the Mayor and Council voted to hear an emergency matter that arose subsequent to the posting of the Council Agenda. That case was Atkins vs. Harris Co. MCC 109709 . 7 6/10/89 r . CLOSED SESSIONS Council Member Estrada made a motion, seconded by Council Member Minor and unanimously carried, that the following Closed Sessions, be continued to 4:00 p.m. Monday, June 12, 1989, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California: 2a - to discuss pending litigation pursuant to Government Code Section 54956.9(b) (1), as there is significant exposure to litigation; 2b - to discuss pending litigation pursuant to Government Code Section 54956.9(c), so that Council may decide whether to initiate liti- gation; 2c - to consider personnel matters pursuant to Government Code Section 54957; 2d - to discuss pending litigation pursuant to Government Code Section 54956.9(a), to confer with its attorney regarding pending litigation which has been initiated formally to which the City is a party as follows: . City of San Bernardino vs. CAL-NEV Pipeline Company, a Delaware Corporation and Does 1-100 - San Bernardino Superior Court Case No. 249735 BUDGET - FISCAL YEAR 1989-90 - REVIEW OF PROPOSED GENERAL FUND This is the time and place set to review the proposed General Fund of the Budget for the Fiscal Year 1989-90. (2) Jim Robbins, Deputy City Administrator/Administrative Services, stated that a fifth priority of filling unfunded positions in police and parks community services and providing some level of street repairs have been added to the four priorities established last year. Those priorities were 1) having a balanced budget; 2) building a reserve; 3) replacing equipment; 4) addressing capital projects and expanded programs. Mr. Robbins presented an overview of the following categories of the 89-90 Budget: . Motor Pool Mr. Robbins stated that a motor pool fund has been created in order to provide more efficient monitoring of the activity of City equipment. 8 6/10/89 . Revenue Enhancement Deputy City Administrator Robbins stated that last year several suggestions of generating revenue for the Ci ty were discussed. He listed those sources of revenue as the following: 1) the establishment of a City wide street lighting assessment district; 2) the transferring of the balance from the street sweeping account to the refuse account; and 3) the increasing of Transient Occupancy Tax and Utility Tax . He added that if the proposed increase to staff were not funded this year, a savings of approximately $282,333 could be generated and put into a reserve account. Omnitrans This year $224,333 from Omnitrans. the the City State will receive towards the approximately operation of . Equipment This year equipment purchases are down by 63% over last year. Fiscal Year 89-93 will be the second year that the City proposes to go on a five-year lease plan for some of its heavier equipment. It is proposed that several large pieces of equipment will be replaced during the Fiscal Year 89-93. Capital Outlay Sky light repairs on the Central City Mall plus some street repairs in the amount of $233,333 are recommended in this year's budget. In closing, Mr. Robbins recommended that if the residual selling of outstanding bonds is considered, that the funds be used in the following ways: 1) that the first million dollars be designated to street repairs; 2) that the second million dollars be designated to relieve personnel, materials and equipment constraints; and 3) that any remaining balance be placed in a general fund reserve account. Andy Green, Director of Finance, distributed to the Council the following documents: Budget Summary by Fund 1989-93, and graphic charts showing the General Fund Revenue by Category, General Fund Expenditures by Major Function, General Fund Revenue Five Year Comparison, and General Fund Revenue by Major Source Five Year Comparison. . 9 6/13/89 -- r--- . Finance Director Green stated that the general fund revenues are primarily made up of five items: sales tax, uti I i ty users tax, property tax, motor vehicle in lieu fee, and development fees. He explained in detail the various components of the chart entitled "General Fund Revenue by Category Fiscal Year 1989-90". As he explained each component of the chart he gave a projected rate of increase in revenues for FY 89-90. Finance Director Green pointed out that the consultant firm of Municipal Resource Corporation estimation of $300,000.00 in additional sales tax collection for FY 88-89 has not yet been realized. He stated that the City has only realized about $100,000.00 this year in additional sales tax collection. He added that he will be looking into whether payments made to the consultants are viable expenses. Mr. Green answered questions regarding the total projected cost of the moritorium to the City. He stated that he would prepare some information concerning this item and present it to Council at some future date. CITY ATTORNEY PENMAN EXCUSED City Attorney Penman left the Council Meeting. . Finance Director Green explained categories of the 89-90 Budget: the following Transfers-In Transfers-In are transfers from various other funds into the general fund, used to help offset some of the costs, such as parking district funds, special gas tax, refuse, traffic safety, and traffic systems construction funds. Proposed Expenditures This category is approximately $800,000.00 shy of the actual amounts detailed due to the vacancy factor of not filling or the delay in filling positions within City Hall. In order to have a balanced budget for 89-90 there will have to be a forced salary savings in the amount of $800,000.00 for FY 89-90. Personnel Services Unfunded Positions Included in this category are the refunding of five sworn and one non-sworn police officers positions and two park maintenance workers positions in the parks and recreation divisions. . 10 6/10/89 r . Expenditures This category contains approximately million dollars of forced increases. The growth in 88-89 in materials, services and been budgeted for 2.5% in the 89-90 Budget. 1.6 to 1.7 actual real supplies has Equipment The proposed equipment category of $300,000.00 is the out-right purchase of equipment, which is separate from the equipment replacement fund. In the equipment replacement fund it is anticipated that $100,000.00 will be used for the out and out purchases of various pieces of equipment with approximately $665,000.00 in financing for the 5-year lease program. Overall between the two equipment fund accounts there will be approximately one million dollars. Capital Improvement Approximately $200,000 has been set aside for street improvements or street paving and $40,000.00 for skylight work to be done on the Central City Mall for FY 89-90. . Transfers-Out The transfers out of the general fund are used to subsidize the various operations for library, cable telev ision, parking distr ict, animal control, and publ ic park extension funds. Finance Director Green pointed extra pay period that was not included has been included in the 89-90 Budget. out that two-week in the 88-89 budget Mr. Green did a line by line review of the document entitled "Budget Summary by Fund 1989-90". He answered questions regarding the maximum amount the City receives from the Cable TV Franchise. Andy Green answered questions regarding the payment status of the Hamshire Flood settlement. A discussion ensued regarding the possiblity of creating a settlement fee on insurance claims. Mr. Green explained that under the current P.E.R.S. health insurance plan the City pays a premium and will be able to more accurately budget and plan for health insurance claims. . 11 6/10/89 r . Mr. Green answered quest ions regard ing whether City is still paying claims under the old Blue-Cross John Hancock Plans. the and Mr. Robbins answered questions regarding how liability and worker's compensation claims are processed and explained the new procedure of establishing a reserve account for each liability claim now required by Bicep. CITY ATTORNEY PENMAN RETURNED City Attorney Penman returned to the Council Meeting. Mr. Green explained the cause for many of the accounts with deficit balances. He recommended that if the residual selling of the outstanding bonds were taken into account, that first consideration be given to the combined health insurance and self-insurance health plans. Marshall Julian the self insured assessment. answered questions regarding whether health plans provided for member . Finance Director Green provided an overview of the following charts: General Fund Expenditures by Major Function, Revised General Fund Five Year Comparison and the General Fund Revenue by Major Source Five Year Comparison comprised of Business License, Franchise Fees, Development Fees, Other, Sales Tax, Utility Users Tax, Property Tax and Motor Vehicle Tax. Mr. of 18% Budget. Green answered questions stating that an increase in development fees is predicted for the 89-90 A discussion ensued regarding the possible negative economic effects of the closure of Norton Air Force Base. Director Green stated that been given in the FY 89-90 Budget, economic effects of the closure of some consideration has concerning the negative Norton Air Force Base. A discussion ensued regarding scheduling additional Council meetings to discuss the 89-90 Budget on a line by line basis. . 12 6/10/89 ! . It was suggested that each department head be present to present their budget before the Mayor and Council. Council Member Estrada made a motion, seconded by Council Member Minor and unanimously carried, that the Closed Session on the Redevelopment Agency Agenda and Mayor Common Council agenda be continued to 4:00 p.m., Monday, June 12, 1989, in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. ADJOURN MEETING At 12:40 p.m., Council Member Estrada made a motion, seconded by Council Member Maudsley and unanimously carried, that the Adjourned Regular Meeting adjourn to 4:00 p.m., Monday, June 12, 1989, in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. (3) . S4'~CcClwJc City Clerk bY~~~~ Oeput City Clerk No. of Items: 3 No. of Hours: 3 hours 30 minutes . 13 6/10/89