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WAYS & MEANS COMMITTEE
October 12, 1987
ATTENDEES: Councilwoman Esther Estrada - Chairwoman7 Coun-
cilman Jess Flores, Councilwoman Norine Miller; City Attorney
James Penman; City Administrator - Ray Schweitzer, Deputy
City Administrator/Administration - Jim Robbins, Assistant to
City Administrator - Fred Wilson; Public Works Director
Roger Hardgrave7 Finance Director - Warren Knudson; Public
Buildings Supt. - Wayne Overstreet7 RDA Executive Director-
Glenda Saul; Animal Control Acting Director - Debra Briggs;
Council Executive Assistant - Phil Arvizo, Mayor's Executive
Assistant Richard Bennecke7 Bill Harford, Susan Dawson,
Jules Carvalho, Margo Tannenbaum.
1. HUMANE SOCIETY PROPOSAL FOR OPERATING ANIMAL SHELTER
- Item continued. The Committee recommended that this item
remain open en the Ways & Means agenda until next May when
the budget is reviewed. The Committee recommended that the
City continue to run the Animal Shelter for the rest of this
fiscal year. Staff was requested to put together a PERT
schedule to provide the Humane Society a time frame to put a
formal proposal together. Staff will also provide a list of
the City's needs to the Humane Society so a very specific
proposal can be submitted with the understanding that the
Ways & Means Committee will look at it for FY 88-89. Mr.
Carvalho, Animals for Research representative, made a short
presentation to the Committee regarding sale of animals for
research. His contention was that the City is losing revenue
by not selling very many animals to research facilities even
though last year's vote of the people allowed sales to con-
tinue. He stated that if the Humane Society was allowed to
operate the shelter, there would be DQ sale of animals to
research.
2. PARKING DISTRICT FUNDING REPORT - The Committee
received the report from the Finance Director (attached) and
recommended that:
a) Since no Parking District Commission members were
at the meeting, they should be notified by letter of the
discussion that took place and sent a copy of the report.
b) Parking District funds be transferred immediately
to the City's General Fund as originally agreed upon.
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c) The Mayor
of assessment to be
the Parking District.
d) A new interest rate and lease policy be adopted
by resolution with the interest rate proceeds designated for
future parking development needs.
and Common Council formalize the amount
paid annually to the General Fund from
Meeting adjourned.
Respectfully
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Councilwoman
Chairman
Ways & Means
submitted,
~I~
Esther Estrada
Committee
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\.# POBox 2982 . San Bernara,n.. ~al"V""a 92406 .
October 12, 1987
Mr. James Robbins
Deputy City Administrator
City of San Bernardino
300 No. -D" Street
San Bernardino, CA 92418
Dear Mr. Robbins:
The Humane Society Board of Directors have had the desire to
provide Animal Care and Control services to the city for many years.
Conversations in board meetings and community meetings over the years
have always addressed the fact that Animal Care and Control is an
extremely complex profession. We recognize, understand and agree that
behind every successful program exists good leadership. And with good
leadership comes the ability to recognize the needs of a program and
the ability to recruit qualified staff who are able to provide those
services the citizens expect from a community Animal Control program.
We are READY and WILLING to make this major commitment to our city.
Based on the information in your report, you have shown income
ranges from $426,000.00 to $481,000.00 ending fiscal year 1986-1987
and yet it appears that actual income for 1986-1987 was approximately
$362,000.00.
As noted in your memo, you stated projected income of $436,000.00
for fiscal year 1987-l988. From the recent council meeting, I
understand that that figure is based upon" among other things, a fee
increase which the council has not yet acted on and we are already
four (4) months into the fiscal year.
Based on last year's revenue, it would appear that a more
realistic income figure would be $395,000.00 to $400,000.00 which will
require general fund support of approximately $156,000.00. Regardless
of the foregoing, it is our firm belief that the city cannot do an
effective animal control program for $SSI,OOO.OO. The level of
service to the people and animals of San Bernardino will suffer.
In your analysis, you pose many question. to which we would be
more than happy to respond. But, before I respond to your questions,
I would like to make several points about our proposed budget. It is
obvious that you are very concerned about the lack of revenue we have
Offices and Clinic loc2ted at
763 West Highland Avenue. San Aernaldiroo. CA 92406
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l....;Ir. James Robbins
October 12, 1987
Page Two
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projected compared to the amount your previous director projected.
After reviewing documents supplied to us by the Director of Finance,
it was apparent that revenues projected versus revenue generated for
1986-1987 show a tremendous disparity. When we prepared our budget,
we used valid figures from your program. If we missed a revenue
source that does not appear on your financial statement, we would of
course need to amend our proposal.
Because cost seems to be the most important factor to the City,
our Board of Directors has agreed to subsidize the Animal Control
portion of our proposed budget in an amount which is open to
negotiation.
Your first area of concern is with vehicles. In particular, the
arrangement for maintenance and repair. The reason for the
negotiation request was to try and determine if it would be more cost
effective to have the vehicles maintained by city maintenance staff or
recruit an outside vendor who could maintain these vehicles in a
timely manner and at a reasonable cost. If the City requires that we
buy the current vehicles we can possibly do so.
The communication question is valid. We made our proposal based
on the fact that a communication system presently exists. Again, is
it more cost effective to use the present Animal Control radio system,
or would it be better for the City to have the Humane Society purchase
an outside system? And, if the latter position is taken, the cost of
the system would have to be budgeted and paid for by the City funds
based on the fact that a system is not needed by the Humane society
unless it is providing Animal Control Services. It should be noted
that our research shows there are Humane Societies doing Animal
Control who have their own in-house systems on business frequencies
and Humane SOcieties using government channels.
In the area of computer services, what we want to negotiate is
basically enhancement. If the present system does not provide for tbe
maintaining or dissemination of certain information, we would like to
be able to negotiate for these enhancements. Por example, if tbe
state laws governing dog licenses change or if we see a need for
processing renewals or delinquent notices in a ~re progressive
manner, will we have the ability to make recommendations to city
staff? Our position on automated dog licensing is the same a. in the
area of communication in that there are outside systems that could be
used.
("Mr. James Robbins
~Oetober 12, 1987
Page Three
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Public Relations and Humane Education is the heart and soul of
any Animal Control program. What we propose is a fUll-time position
that would interface with the San Bernardino School System and provide
information to any civic organizations, block groups or any other
groups of citizens who we can make aware of the need for responsible
pet ownership in our community. Our present program is on a volunteer
basis. This proposal is for a full-time position shared in cost by
both the Humane Society and the city. We feel that city funds should
be used in educating its citizens of what services are provided and
why some services are not provided. Humane Education should be looked
at as a prevention tool for Animal Control, the latter performing four
functions in our city: (1) Responds to complaints, (2) impounds
animals, (3) cares for those animals, and (4) euthanizes the majority
of those impounded. Humane Education and Public Relations would be
used to make people more aware of why animals should be spayed and
neutered, why animals should have regular check-ups with a
veterinarian, and why it is important for people to be more
responsible pet owners.
In the area of manpower, you have made several inquiries
regarding responsibilities. I would like to respond to each
individual position as follows:
Animal Health Technician. No Animal Sealth Technician positions
have been budgeted. Present Animal Health Technicians on staff would
be offered a kennel attendant position. We feel that Animal Health
Technicians are not a necessity in running an Animal Control program,
they are a luxury.
Accountinq Clerk. This position would be responsible for
maintaining a daily breakdown of all funds received by the Society.
This position would be responsible for, but not limited to, daily
receipt reconciliations, daily deposits, statistical analysis, monthly
financial statements, and all Humane Society and Animal Control
financial data.
Dispatcher/Record Keeper. This position would be responsible
for, but not limited to, maintaining all complaints received by the
Society as they related to Animal Control services, log and dispatch
all requests for Animal Care and Control service., gather and
disseminate information on a monthly basi. regarding Animal Control
activities. This position would be responsible for preparing any and
all reports of activities that is requested by tbe City for
accountability of Animal Control services being provided by the
Society.
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\..... Itr. James Robbins
OCtober 12, 1987
page Four
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The overhead account for the Society includes Social Security,
FOTA, Unemployment Insurance, Workman's Compensation, Employee Health
Insurance, and Employee Life Insurance. OTHER insurances, such as
vehicle, general liability, umbrella liability, fidelity bond for
employees, and professional liability would be maintained and
accounted for as a separate line item.
It would be the desire of the Society
to provide services to surrounding cities.
Bernardino, of course, is in the reduction
service.
to do everything possible
The benefit to San
in cost for its own
Under California State Law, Humane Societies with contracts for
Animal Control services are allowed to issue citations. Also, under
State Law, the fines derived from those citations can be used to
offset Animal Control services. From a bUdgetary standpoint, we feel
that funds collected by the courts from the Animal Control enforcement
program should be credited to the program. But if the City chooses to
maintain those funds in their general fund, the budget can be made to
reflect that posture. Other than court fines that are automatically
refunded by the courts to the City, no other fees have to be collected
by the City unless the City chooses to sell dog licenses in City Hall
as a convenience to the citizens.
The Society is more than open to any reasonable standards,
requirements or conditions for the program. I would like to add that
the Society looks at this possible arrangement for services with the
City as a joint venture, and that any accountability that you desire
to monitor this program is welcome.
In closing, I hope that I have been able to give you a better
insight to our proposal. We realize the decisions the City is
contemplating are not easy, which is why we request that an Ad Hoc
Co~ittee be appointed for the purpose of an in-depth study of the
current Animal Control program as well as our proposal.
Respectfully yours,
THE HUMANE SOCIETY OF SAN
BERNARDINO VALLEY, INC.
Susan Dawson,
Director
SD:ms
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C I T Y 0 FCs A N B ERa R DIN 0
INTEROFFICE MEMORANDUM
8710-106
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TO: WAYS AND MEANS COMMITTEE
FROM: WARREN A. KNUDSON, DIRECTOR OF FINANCE
SUBJECT: PARKING DISTRICT FINANCING
DATE:
COPIES:
OCTOBER 7, 1987
(7220)
CITY ADMINISTRATOR, MAYOR
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This Is In response to a request for a report on
fInancIng of the parkIng dIstrIct expansion, funds paid
of the General Fund by the CIty as a result of
expansIon, and alternatives to retirIng the debt.
the
out
this
Sl.~GROUN~
In 1977 Parking DistrIct Lease Revenue Bonds In the amount of
$1,950,000 .were Issued for acquisitIon, demolition, and
constructIon of off-sIte parking spaces. The revenue from
Parking DistrIct assessments Is used to make lease payments
to the Agency.
In 1979 the City and the ParkIng Place CommissIon determined
that expansIon of the District was necessary. The cost was
estImated at $1.2 mil I Ion and review of documentatIon
IndIcates that the cost was Intended to be covered InitIally
by a commercial loan and repaid mainly from Increases In
assessments to parcels wIthIn the DIstrict.
The Redevelopment Agency was authorized to accept funds
advanced to It by the City for District expansIon with the
Intent that the monIes would be repaid from a permanent loan.
At a later date (December 1981) consideration was gIven to
funding the costs of the DistrIct Expansion by means of a
bond Issue.
NeIther the commercIal loan nor the bond Issue approach was
feasible at the time and neIther came to fruitIon.
Beginning In 1979 a "Secondary Rol I" was added to the
"Primary Roll" was In place to service the Parking DIstrIct
Lease Revenue Bonds In the amount of $1,950,000 which were
Issued In 1977. The "Secondary Rol I" was based upon 30~ of
the existIng assessment, and the rol I was set at $30,300
annually. Several documents state that the purpose of the
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INTEROFFICE MEMORANDUMc:)8710-106
PARKING DISTRICT FINANCING
October 7, 1987
Page 2
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"Secondary Rol I" was to pay for the costs of the Parking
District Expansion.
COSTS OF EXeAH~~
The CIty's co~
S652,074.99 and
properties:
which were "Advanced to RDA"
were expended for acquiring
amounted to
the fo I low I ng
DATE PAID
PROPERTY
AMOUNT
11-17-80
10-03-80
08-22-79
08-10-79
08-10-79
Fleming Property
National Dollar Store Property
Gregory Property
Fullerton Property
Stockwel I & Binney Property
S 55,100.00
45,375.00
80,642.25
380,457.74
90,500.00
S652,074.99
In addition to the above properties, It was necessary for the
City to purchase two parcels of property on "E" Street at a
cost of SI&0,688.46 In order to provide replacement spaces
taken from District parking for 46 spaces used for pol Ice
parking and 5 spaces taken for bus terminal purposes. The
need for funds for replacement spaces was anticipated and the
monies had been budgeted. Recovery of this amount was not
anticipated.
In addition to the S652,074.99 Incurred for property
acquIsition, S79,053.90 was spent by the City for surfacing,
striping, and landscaping of the expansion lots. The
majority of this sum was paId to contractors. The Intent at
that time was that the monies were to be paid back by bond
proceeds.
This brings the total expended by the City that Is expected
to be recovered to 1731.128.89.
The Redevelopment Agency has Incurred costs reported at
1189.642.31 for the Parking District expansion.
REFLECTION OF AMOUNTS DUE
The CIty
1731.129
Agency.
Financial Statements reflect the amount of
In the General Fund as due from the Redevelopment
The Redevelopment Agency, under the Parking Olstrlct
Expansion Project, reflects the amount of 1652,075 as due to
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INTEROFFICE MEMORANDUMC) 8710-106
PARKING DISTRICT FINANCING
October 7, 1987
Page 3
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the City of San Bernardino with a note that states In part:
"The funds were transferred to the Agency as a vehicle
for the purchasing of the properties and the construction
of facilities. Repayment to the General Fund was antici-
pated In the form of long-term lease revenue financing,
repaid by Ad Valorem assessments to the parking district.
The financing has yet to be accomplished. The amount of
$652,075 Is recorded as an advance to the Agency. The
advance bears no Interest."
Any monies paid to the City's General Fund to reduce the
amount of the "loan" or "advance" wll I be additional cash to
the Genera I Fund but w III not resu I tin new revenue for
budget purposes.
AVAILABLE FOR DEBT REDUCT~
1.
.s.&~ary R~
$30,000 has been
ment according
$242,098.66.
The secondary rol I of approxImately
assessed since 1979. The total assess-
to the Real Property section has been
2. ~~erty Acq~ltlon - In 1978 an additional amount of
$8,100 was authorized to add to the assessment rol I. The
amount was classified as property acquisition costs and
was the amount paid for the lease of parking spaces from
the Masonic Temple. The Parking Place Commission decided
to continue the assessment and It remains In place.
The total of these amounts assessed Is $314,998.66
through June 30, 1987.
3. Parking District Fund Balance - At June 30, 1987, the
Parking District Fund has an estimated fund balance of
$410,541. This represents an accumulation of the above
assessments which have not been paid out as well as
approximately $95,000 resulting from prior year
activities (higher revenues or lower expenditures than
anticipated).
AL TERNATI VES
The funds are available In the Parking District Fund to
reduce the debt to the General Fund by $314,998.66, which Is
the amount that has been assessed on the "Secondary Rol I" and
the "Property Acquisition" rolls. Documentation that has
been prepared both by the City and RDA In prior years
Indicates that the additional assessments were for the
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INTEROFFICE MEMORANDUMC8710-106
PARKING DISTRICT FINANCING
October 7, 1987
Page 4
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purpose of paying for Parking District expansion. The monies
available from the two assessments would al low for reduction
of the amount due to the General Fund. Formalization of a
pol Icy to apply the amount of the designated assessments
annually would provide for annual debt service and eliminate
the uncertainty that has existed.
RECOMMENDAT~.s
1. Reduce the amount due to the General Fund from the
balance available from the Parking District Fund.
2. Formal ize through action of the Mayor and Common Council
the amounts of the assessments to be used annually to pay
back the loan to the General Fund.
3.
Establ Ish a new
General Fund and
leased parking.
Interest rate
a polley on
on the amount due the
the use of monies from
4. Establ Ish a fund for future parking district needs.
tJo-O./L t2
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WARREN A. KNUDSON
Director Of Finance