HomeMy WebLinkAbout06-29-2009 Adj. Minutes
CITY OF SAN BERNARDINO
300 N. "D" Street
San Bernardino, CA 92418
Website: www.sbcity.org
Mayor Patrick J. Morris
Council Members:
Esther Estrada
Dennis J. Baxter
Tobin Brinker
Fred Shorett
Chns Kelley
Rikke Van Johnson
Wendy McCammack
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MINUTES
MAYOR AND COMMON COUNCIL AND
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
JOINT ADJOURNED REGULAR MEETING
JUNE 29,2009
ECONOMIC DEVELOPMENT AGENCY
BOARDROOM
201 NORTH "E" SREET
SAN BERNARDINO, CA
This is the time and place designated 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 adjourned regular meeting of the Mayor and Common
Council and Community Development Commission which was cancelled at 4:00 p.m.,
Wednesday, June 24, 2009, in the Economic Development Agency Boardroom, 201
North "E" Street, San Bernardino, California.
The City Clerk has caused to be posted the order of cancellation of said meeting
scheduled to be held on Wednesday, June 24, 2009, 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 4:00 p.m. on June 22, 2009, on or near the door of the place where the joint
adjourned regular meeting was to be held.
The joint adjourned regular meeting of the Mayor and Common Council and
Community Development Commission of the City of San Bernardino was called to
order by Mayor/Chairman Morris at 4:12 p.m., Monday, June 29, 2009, in the
Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino,
California.
06/29/2009
Roll Call
Present:
Mayor/Chairman Morris; Council Members/Commissioners Baxter,
Brinker, Shorett, Kelley, Johnson. McCammack; City Attorney Penman,
City Manager McNeely, City Clerk Clark.
Absent:
Council Member/Commissioner Estrada.
Council Member/Commissioner Estrada Arrived
At 4: 15 p.m., Council Member/Commissioner Estrada arrived at the Council/
Commission meeting.
1. Closed Session
Pursuant to Government Code Section(s):
A. Conference with legal counsel - eXlstmg litigation - pursuant to
Government Code Section 54956.9(a).
B. Conference with legal counsel - anticipated litigation - significant
exposure to litigation - pursuant to subdivision (b) (1), (2), (3) (A-F) of
Government Code Section 54956.9.
C. Conference with legal counsel - anticipated litigation - initiation of
litigation - pursuant to subdivision (c) of Government Code Section
54956.9.
D. Closed Session - personnel - pursuant to Government Code Section
54957.
E. Closed session with Chief of Police on matters posing a threat to the
security of public buildings or threat to the public's right of access to
public services or public facilities - pursuant to Government Code
Section 54957.
F. Conference with labor negotiator - pursuant to Government Code
Section 54957.6.
G. Conference with real property negotiator - pursuant to Government Code
Section 54956.8.
Reading of Resolutions
City Clerk Clark read into the record the titles of all the resolutions on the regular
agenda of the Mayor and Common Council and Community Development Commission.
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2. RES. 2009-174 - Resolution of the Mayor and Common Council of the City
of San Bernardino authorizing the execution of Amendment No. 2 to the
Agreement and an increase to Purchase Order Number 302232 by an
additional $32,400 to Fluoresco Lighting & Signs for additional streetlight
maintenance services. (Continued from June 16, 2009.)
City Manager Charles McNeely provided a memo to the Mayor and Common
Council dated June 29, 2009, providing additional information regarding
Fluoresco Lighting.
Council Member/Commissioner McCammack made a motion that the matter be
tabled. The motion failed for lack of a second.
Council Member/Commissioner Brinker made a motion, seconded by Council
Member/Commissioner Shorett, that full reading be waived; and that said
resolution be adopted. The motion carried and Resolution No. 2009-174 was
adopted with Estrada and McCammack voting "no".
3. Budget deliberations - Fiscal Year 2009/10 - discuss and take possible
action concerning proposed City budget
Resolution of the Mayor and Common Council approving and adopting the
City of San Bernardino's final budget for fIScal year 2009-2010; and
establishing the City's appropriation limit as required by Article XIII B of
the California State Constitution; and authorizing the transfer to the
General Fund of Administrative Civil Penalties revenues collected pursuant
to San Bernardino Municipal Code Chapter 9.93 for violations of the San
Bernardino Municipal Code and held in trust; and repealing Resolution
2008-116. (3A)
RES. 2009-175 - Resolution of the Mayor and Common Council of the City
of San Bernardino, California, authorizing the City of San Bernardino to
establish 2009-2010 expenditures for the month of July, 2009 only, at one-
twelfth the actual levels contained in the adopted budget for 2008-2009
fiscal year, or as needed to pay the authorized costs incurred for the month
of July, 2009 only, pending final approval of the 2009-2010 budget, and
continuing the consideration of the City of San Bernardino's final budget
for fiscal year 2009-2010 and establishing the City's appropriation limit as
required by Article XIII B of the California State Constitution. (3B)
Note: No action was taken on Resolution 3A.
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06/29/2009
The following documents were distributed:
. Interoffice Memorandum dated June 29, 2009, to the Mayor and
Common Council from Charles McNeely, City Manager, regarding
6/29 Budget Workshop Information
. Fiscal Year 2009/2010 Preliminary Budget: City of San Bernardino
(PowerPoint presentation by Charles E. McNeely, City Manager and
Barbara Pachon, Director of Finance)
Discussion ensued regarding several of the additional proposed budget savings
actions outlined in the PowerPoint presentation. including the question as to
whether the library qualifies for Cultural Development Fund monies.
City Attorney Penman advised that if the Cultural Fund is based on development
fees, there is a good likelihood it cannot be used for this purpose-that
development fees generally have to be utilized in the area where they are raised.
Relative to the Fire Chief's proposed management reorganization with a
proposed savings of $223,000, Council Member/Commissioner Kelley
expressed concern about making a budget decision on any item that requires
Council action, prior to the Council taking that action. He questioned why this
particular item would be included in the budget before going to the Personnel
Committee and the Council for approval first.
City Attorney Penman advised that both he and Agency Counsel Sabo were very
concerned about at least two of the issues being proposed-one of them being
the use of funds from another project area to pay for security, janitorial, and
utilities at the Carousel Mall. He stated that this is contrary to state law;
specifically, Health and Safety Code Section 3345B, which states that a
redevelopment agency shall not pay for the normal maintenance or operations of
buildings, facilities, structures, or other improvements that are publicly owned.
He cautioned the Council about adopting a budget that may include illegal items,
or items that will not come to fruition. He stated that he and his staff and Mr.
Sabo needed additional time to look at these items to see if they are legal or not.
He advised that it is not good government to pass a budget that has not been
vetted by the City Attorney.
City Manager McNeely explained that in essence it is being recommended that
the Council adopt a budget that is over $140 million. Included in that budget
are a number of recommended activities and projections based upon what staff
feels will occur during the course of the year-and this happens every single
year. He stated that, hopefully, most of those things on the revenue side are
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06/29/2009
realized-and during the course of that year staff tracks those items. He stated
that some of those items involve contracts and some involve negotiations with
separate entities; and staff then has to negotiate those items and bring them back
to the Council-and that is standard procedure.
He noted that there are occasions when negotiated items may come back with
agreements that are less than projected, but this does not prevent the Council
from adopting a budget based on these projections and directing staff to follow
through and implement those contracts or negotiate them and bring them back.
If, at some point, one of those items doesn't bear fruit as anticipated, staff
brings it back to the Council and looks at ways to balance it out.
City Attorney Penman stated that he agreed with Mr. McNeely that a budget is
generally a guideline that you follow that does change; and probably before
Proposition 13 in California, that was all a budget was. Today, however, under
the State Constitution that has changed, and there are now specific requirements
that Council's must follow when adopting a budget.
He informed the Council that if the State Constitution requires the City to adopt
a balanced budget, and if some of the proposals they are going to vote on are
not legal and/or cannot be spent for the purposes for which they are listed, the
Council is not going to be adopting a lawful budget in compliance with the State
Constitution. He stated that several such items have already been identified in
the two documents distributed as backup to this item, and there are numerous
legal problems in them.
Mr. Penman stated it was not prudent for the Council to act on a budget that
they don't have to act on, by law, today or tomorrow or next month, that may
not be legal. He stated that taking such action is only going to get the City into
a great deal of trouble and cost it a lot more money.
Mr. Penman indicated that he believed his staff and Agency Special Counsel
Sabo could look at these issues that they have identified in the budget and come
back to the Council within three to four weeks with the information needed to
make an informed decision.
City Manager McNeely stated he was not suggesting that the Council had to
adopt this budget today. He stated that he did not want to violate the law and he
did not want the Council members to interpret any of his remarks and comments
otherwise. He stated it is just a matter of process as far as he is concerned. He
stated that he would not bring back to the Council any documents (contracts)
without having the Attorney's office review them. He said that what he and the
City Attorney have is simply a disagreement about process.
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06/29/2009
Mr. McNeely stated that what he has shared with the Council is based upon his
experience as a manager both in California and other places. He noted that
there are a number of cities that do tow operations and a number of cities that
do transfers and loans from one agency to the other; and as far as he knows,
none of them have gone to jail for that. It is simply a decision by the
policymakers that do that, with the review of the City Attorney's office to vet
the process and make sure that it is legally appropriate.
City Attorney Penman pointed out that what the Council is being asked to do
tonight is vote on the fmal budget. He added that that does not mean it cannot
be changed later, but the final budget has to comply with certain legal
regulations and rules and he and his staff need the time to make sure it is in
compliance.
Discussion ensued regarding the proposal for a City-operated tow yard. Police
Sergeant Burguan advised that there are other cities that operate impound yards,
and staff has come up with a plan for the City to maintain an inventory of
impounded vehicles. He stated that essentially the plan that has been developed
would maintain all of the City's existing tow carriers-they would perform all
towing services for the City-and the City would take possession of the
impounded vehicles, maintain possession of those, realize the revenue from the
daily storage on those vehicles, and the tow companies would continue to see
revenue from the tow itself, as well as revenue from all the other vehicles that
are stored.
City Attorney Penman noted that the City is allowed to recoup its costs, but
cannot be in the business of making money; and some of the Council members
questioned whether this would be a viable enterprise for the City. Mr. Penman
advised that before such a plan could be adopted, the anticipated $700,000 that
the City would receive would have to be zeroed out-that to adopt a budget
showing the City making a profit of $700,000 on an activity that we have never
done before and that we are doing as a service, with the income from the service
exceeding the costs that have been identified so far by the City, will not fly.
Some of the Council members felt they needed a better understanding of what
the impact would be to the tow companies. Others expressed their belief that no
government agencies should be in competition with the private sector-that in
fact there are some things that the private sector can do more effectively.
Police Chief Kilmer stated that the running of a tow yard by a police entity or
by a municipality is not an uncommon thing, noting that the City of Long Beach
operates its own towing operation. He noted that what the City of San
Bernardino is proposing is something different than what has been done in Long
Beach-more of a hybrid model with the City operating the yard for the
impounds only.
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06/29/2009
The following individuals spoke in support of the tow companies and voiced
opposition to the City establishing and maintaining a storage facility for
impounded vehicles. They noted that the six local tow companies pay
combined franchise fees of over $460,000 annually to the City, that business is
already down 30-50%, and that this action would trickle down and affect other
businesses in town as well.
Larry Quiel, Vice-Chair of Business Support, San Bernardino Area Chamber of
Commerce;
Jason Desjardins, Big Z Auto Works;
John Vach;
Steve Johnson, President, Tri-City Towing;
Darren Desjardins, General Manager, Big Z Auto Works;
Randy Wyatt Jr., Wyatt's Paint and Body;
Brian Schooley, representing Pete's Road Service;
Mike Hileman;
Judi Penman, CEO, San Bernardino Area Chamber of Commerce;
Robert Walsh, representing Billy's Express;
Gary Stockman, owner of Stock All Services;
Jerry Lair;
Dominick Ferro, intern with the San Bernardino Area Chamber of Commerce;
Tim Megerle, Merit Oil Company;
Robert Gastel, President, San Bernardino Area Chamber of Commerce.
Joe Arnett pointed out what appeared to be an inconsistency, noting that at one
meeting the City is advocating outsourcing of services and the next they want to
handle things in-house. He stated that he would like to see the City do a better
job of providing information in advance of its meetings and that the process
needs to be much more transparent.
Warner Hodgdon expressed his personal support of what the mayor and staff
are trying to accomplish here in the city. He stated that he understands the
budget explicitly and re-submitted for the record a letter of support dated
Monday, June 1,2009.
Council Member/Commissioner McCammack asked that further discussion of
the towing proposal be held with the complete Council present rather than at the
committee level.
Council Member/Commissioner McCammack stated that she would like a
document that explains, for instance in the Fire Department, what is the
difference between the 06/07, 07/08, 08/09, and 09/10 budgets. She also stated
that they have not yet removed the nonessentials from the budget, and she
cannot support the budget as it now stands.
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06/29/2009
Council Member/Commissioner McCammack made a motion, seconded by
Council Member/Commissioner Estrada, that full reading be waived; and that
said Resolution 3B, be adopted. The motion carried and Resolution No.
2009-175 was adopted unanimously.
4. RES. 2009-176 - Resolution of the Mayor and Common Council of the City
of San Bernardino setting the 2009 regulatory fee for the sale of fireworks
and amending Resolution 2009-122.
Council Member/Commissioner McCammack stated that her issue relative to
fireworks is the way the City handles the establishment and placement of the
fireworks booths; and she would like to see the matter referred to the
Legislative Review Committee.
Council Member/Commissioner Johnson stated that he would like to see a
conversation about elimination of fireworks in the city and how the City can
help the nonprofits tap into other revenue streams.
Jeff Brandenburg, Phantom Fireworks, asked the City to consider lowering the
10 percent fee and explained his rationale for same.
John Kelly, Vice President, TNT Fireworks, reiterated the comments made by
Mr. Brandenburg relative to various costs and a reduction of the 10 percent fee.
Council Member/Commissioner Kelley made a motion, seconded by Council
Member/Commissioner Estrada, that full reading be waived; and that said
resolution be adopted. The motion carried and Resolution No. 2009-176 was
adopted with Johnson voting "No".
5. RES. 2009-177 - Resolution of the Mayor and Common Council authorizing
the City Attorney to cooperate with the League of California Cities, other
cities and counties in litigation challenging the constitutionality of any
seizure by State government of the City's street maintenance funds.
Council Member/Commissioner Kelley made a motion, seconded by Council
Member/Commissioner Brinker, that full reading be waived; and that said
resolution be adopted. The motion carried and Resolution No. 2009-177 was
adopted unanimously.
6. RES. 2009-178 - Resolution of the Mayor and Common Council of the City
of San Bernardino adopting the Fiscal Year 2009/2010 through 2013/2014
Capital Improvement Program.
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Mayor/Chairman Morris explained that due to potential conflicts of interest,
which require certain Council members to recuse themselves from voting on
Capital Improvement Projects (CIP) located within 500 feet of real property
which they own or in which they have an interest, it would be necessary to take
three separate motions to approve the CIP.
Council Member/Commissioner McCammack made a motion, seconded by
Council Member/Commissioner Brinker, that full reading be waived, and that
said resolution with attached Exhibit "A" be adopted; and that the Director of
Finance be authorized to incorporate the completed FY 2009/10 Capital
Improvement Program into the final FY 2009/10 budget. The motion carried
and Resolution No. 2009-178 and Exhibit "A" were adopted unanimously.
Council Member/Commissioner Estrada stated that she would abstain from
voting on Exhibit "B" because she owns or has an interest in real property
within 500 feet of CIP No. PR04-08. She left the boardroom and returned after
the vote was taken.
Council Member/Commissioner Baxter stated that he would abstain from voting
on Exhibit "B" because he owns or has an interest in real property within 500
feet of CIP No. SS04-116. He left the boardroom, returning after the vote was
taken.
Council Member/Commissioner McCammack made a motion, seconded by
Council Member/Commissioner Brinker, to adopt Exhibit "B" as attached and
made a part of said resolution. Exhibit "B" was adopted with Estrada and
Baxter abstaining.
Council Member/Commissioner Brinker stated that he would abstain from
voting on Exhibit "C" because he owns or has an interest in real property within
500 feet of CIP No. SS04-51. He left the boardroom, returning after the vote
was taken.
Council Member/Commissioner Jolmson stated that he would abstain from
voting on Exhibit "C" because he owns or has an interest in real property within
500 feet of CIP No. SS06-11. He left the boardroom and returned after the vote
was taken.
Council Member/Commissioner Baxter made a motion, seconded by Council
Member/Commissioner McCammack, to adopt Exhibit "C" as attached and
made a part of said resolution. Exhibit "C" was adopted with Brinker and
Johnson abstaining.
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7. Authorize the Director of Finance to amend the Mayor's Office FY 2008/09
budget by transferring $25,000 from the Mayor's Office Professional/
Contractual Account (No. 001-011-5502) to the Parks, Recreation and
Community Services FY 2008/09 budget Salaries-Temporary/Part-time
Account (No. 001-389-5014) for the purpose of augmenting the Parks,
Recreation and Community Services Department Swim Program for the
2009 summer season.
Council Member/Commissioner McCammack made a motion, seconded by
Council Member/Commissioner Johnson, that the Director of Finance be
authorized to amend the Mayor's Office FY 2008/09 budget and transfer
$25,000 from the Mayor's Office Professional/Contractual Account (No. 001-
011-5502) to the Parks, Recreation and Community Services FY 2008/09 budget
Salaries-Temporary/Part-time Account (No. 001-389-5014). The motion
carried unanimously.
COMMUNITY DEVELOPMENT COMMISSION
R8. Budget Adoption - Fiscal Year 2009/10 - Economic Development Agency
Resolution of the Mayor and Common Council of the City of San
Bernardino, California, authorizing the funding of various City of San
Bernardino fIscal year 2009-2010 public improvement expenditures and
making findings and determinations as to the benefit to the various
redevelopment project areas for undertaking public improvements in
connection with these various City expenditures. (R8A)
Resolution of the Community Development Commission of the City of San
Bernardino, California, approving the Economic Development Agency's
budget for the fiscal year 2009-2010 with any such amendments, changes
and modifications that may be specifically authorized by said Commission,
except for those portions of certain budget lines which are related to the
Uptown Redevelopment Project Area. (R8B)
Resolution of the Community Development Commission of the City of San
Bernardino, California, approving the Economic Development Agency's
budget for those portions of certain budget lines which are related to the
Uptown Redevelopment Project Area for the fiscal year 2009-2010 with any
such amendments, changes and modifications that may be specifically
authorized by said Commission. (R8C)
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Resolution of the Community Development Commission of the City of San
Bernardino, California, authorizing the funding of various City of San
Bernardino fiscal year 2009-2010 public improvement expenditures and
making findings and determinations as to the benefit to the various
redevelopment project areas for undertaking public improvements in
connection with these various City expenditures. (R8D)
Resolution of the Community Development Commission of the City of San
Bernardino, California, approving amendments to Exhibits "A" and "B",
deletion of Exhibits "C-64" through "C-66" and Exhibits "C-87" through
"C-89", and addition of Exhibits "C-93" through "C-1I4" of the Personnel
Policies and Procedures for all employees of the City of San Bernardino
Economic Development Agency. (R8E)
Resolution of the Community Development Commission of the City of San
Bernardino, California, approving the Economic Development Agency's
(" Agency") analysis and determination of the appropriateness of the
planning and administration expenditures of the Low- and Moderate-
Income Housing Fund for the fiscal year 2009-2010 Agency Budget. (R8F)
RES. CDC/2009-29 - Resolution of the Community Development
Commission of the City of San Bernardino, California, authorizing the
Economic Development Agency to continue expenditures, except for those
portions of certain budget lines which are related to the Uptown
Redevelopment Project Area, at the budgeted level for the 2008-2009 fiscal
year, with allowance for those budgeted items having prior Commission
approval, pending final approval of the 2009-2010 budget. (R8G)
RES. CDC/2009-30 - Resolution of the Community Development
Commission of the City of San Bernardino, California, authorizing the
Economic Development Agency to continue expenditures for those portions
of certain budget lines, which are related to the Uptown Redevelopment
Project Area, at the budgeted level for the 2008-2009 f"ISCal year, with
allowance for those budgeted items having prior Commission approval,
pending final approval of the 2009-2010 budget. (R8H)
Note: Resolution R8A was not distributed with the backup materials. No action
was taken on Resolutions R8A through R8F.
Council Member/Commissioner McCammack made a motion, seconded by
Council Member/Commissioner Estrada, that full reading be waived; and that
said Resolution R8G, be adopted. The motion carried and Resolution No.
CDC/2009-29 was adopted unanimously.
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06/29/2009
Council Member/Commissioner McCammack stated that she would abstain from
voting on Resolution R8H because she owns or has an interest in property
within 500 feet of the Uptown Redevelopment Project Area. She left the
boardroom and returned after the vote was taken.
Council Member/Commissioner Brinker made a motion, seconded by Council
Member/Commissioner Baxter, that full reading be waived; and that said
Resolution R8H, be adopted. The motion carried and Resolution No.
CDC/2009-30 was adopted with McCammack abstaining.
It was the consensus of those present that the date and time for the next budget
meeting would be set at the regular meeting of the Mayor and Common
Council/Community Development Commission to be held on July 6,2009.
9. Adjournment
At 7:32 p.m. the meeting adjourned. The next joint regular meeting of the
Mayor and Common Council/Community Development Commission is
scheduled for Monday, July 6,2009.
RACHEL G. CLARK
City Clerk
By: ~.f~Hd
Deputy City Clerk
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