No preview available
HomeMy WebLinkAbout2010-221 1 2 RESOLUTION NO. 2010-221 RESOLUTION OF THE MAYOR AND COMMON COUNCIL APPROVING AND 3 ADOPTING THE CITY OF SAN BERNARDINO'S FINAL BUDGET FOR FISCAL YEAR 2010-2011 AND DIRECTING STAFF TO PREPARE BUDGET DOCUMENTATION 4 5 WHEREAS, at the meeting ofthe Mayor and Common Council on June 30, 2010, the "City 6 of San Bernardino California Preliminary Budget Fiscal Year 2010-2011," was presented 7 ("Preliminary Budget"), a copy of which is on file in the office of the City Clerk and which is 8 incorporated herein by reference as though fully set forth at this point; and 9 WHEREAS, at the June 30, 2010 meeting of the Mayor and Common Council, the 10 Preliminary Budget was amended by motion to incorporate therein the Interoffice Memorandum of 11 the Office of the City Attorney Subject: Final Proposed City Attorney Office Budget for FY 12 2010/2011, dated June 30, 2010, a copy of which is attached hereto as Exhibit A, and by this 13 reference made a part hereof; and 1.4 WHEREAS, the Preliminary Budget as amended constitutes the Final Budget. 15 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 16 17 18 19 SECTION 1. The Mayor and Common Council approve and adopt the Final Budget. SECTION 2. The City Manager is hereby directed to prepare budget documentation and take such further action as necessary to implement the adoption of the 20 Final Budget. 21 22 23 III 24 III 25 III 26 III 27 28 SECTION 3. This Resolution shall take effect upon the date of its adoption. F:\WILSON\Resolutions\201 0-2011 Budget2- 7.1.1 O.wpd 2010-221 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL APPROVING AND ADOPTING THE CITY OF SAN BERNARDINO'S FINAL BUDGET FOR FISCAL YEAR 2 2010-2011; AND DIRECTING STAFF TO PREPARE BUDGET DOCUMENTATION 3 4 5 6 7 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a joint adjourned regular _ meeting thereof, held on the 30th day of June ,2010, by the following vote, to wit: NAYS ABSTAIN ABSENT Q~h.~ '- CITY CLERK 20 The foregoing Resolution is hereby approved this J::!!... day of July, 2010. 21 22 23 24 A RICK . S, Mayor City of San Bernardino Approved as to form: JAMES F. PENMAN, 25 City Arney 26 27 28 F:\WILSON\Resolutions\2010-2011 Budget2~ 7.1.10.wpd 2 2010-221 EXHIBIT "A" INTER OFFICE MEMORANDUM OFFICE OF THE CITY ATTORNEY CITY OF SAN BERNARDINO Subject: Charles McNeely, City Manager James F. Penman, City Attorney '7 f Final Proposed City Attorney offfce Budget For FY 2010/2011 To: From: Date: June 30, 2010 Attached please find the final proposed budget from this office for FY 2010/1011. This is not the 15% decreased budget amount. This is the amount we request even if additional reductions are not found to be necessary. Because this office has no control over how many lawsuits will be filed in the next fiscal year it is not possible to reduce the proposed Outside Counsel costs line item by more than $125,000md the Litigation Costs line item by more than $40,449. We have made those reductions. ---lheonly other-me-items that couldlrereduced to realizea:t5% reduction wouidirein personnei--- costs. However, any such reduction would result in the immediate necessity to farm out to outside counsel numerous existing law suits. The cost of the outside counsel would significantly exceed the money saved by the personnel reductions. Lawsuits cannot "sit and wait" to be defended. They must be defended aggressively. Failure to file motions in court, to make any court appearance or to be ready for trial will result in sanctions and then the entries of default judgments against the City. For example, if we had failed to make any appearance in the Flesh Club case, failed to file any motions or required responses, or failed to appear ready for trial, that case would have been lost instead of won. The City would have faced an immediate demand to pay over $2.4 million including the judgment, post-judgment interest and attorney fees. The amount of $2.4 million is approximately 65% of the entire proposed city attorney office budget. We have obtained the now estimated 8% necessary budget reduction by the combined $165,449 reduction in outside counsel and litigation costs and by adding one ACP Enforcement position. This position will result in an approximately $200,000 increase in fines and penalties for the general fund for FY 2010/2011. After subtracting the salary, including benefits of the additional position the net increase to the general fund will be $136,687. 2010-221 MEMORANDUM TO: James Penman, City Attorney FROM: John Wilson, Sr. Ass!. City AttyA1v:-. SUBJECT: Application of Budget Reduction DATE: June 30, 2010 This office has been advised to prepare a budget reflecting a possible 15% reduction in the amount proposed to be budgeted in fiscal year 2010/2011. The reduction equates to $566,505. It was originally proposed that $466,505 be deducted from Account No. 5503, Litigation-Outside Attorneys. The remaining $100,000 would be deducted from Account No. 5177, Litigation Expenses. We are now advised that the reduction is more in the range of 8% or $302,136. As discussed, if an additional ACP Enforcement Position is added to the budget at a cost of $63,313, and that position generates $200,000 in new revenue, it will be necessary to reduce the Litigation - outside attorney account by $125,000, and the Litigation expenses account by $40,449 to accomplish the 8% adjustment. The sums contained in the proposed budget are based on projections of future costs of current litigation provided by the outside attorney's presently handling these matters for the City. The number in the proposed budget is actually $330,000 less than requested. With a further 8% reduction, this office will experience a $455,000 under-funding of the money needed to properly service the City. It is recognized that these projections may ultimately prove to be higher or lower than the actual costs and are subject to some adjustment on that basis. However,iti~a given that new litigation willbe-comrnencea-againstthe City duiing-thidisciiIyear which will change these cost estimates. These costs, like workers compensation, costs of basic utilities, and bonded indebtedness, are not amenable to regular budget reduction practices in the short run. Reductions in staff or other aspects of City Attorney Office operations represent false economies in that anticipated revenues would be lost and/or the costs would continue to be realized elsewhere. To the contrary, the longer term budget solution for the Office is to hire one or more additional attorneys and support staff to perform work in-house. The money must be available when needed. Proceeding on the basis that it will not is problematic in terms of successfully resolving cases. However, in accounting for expenditures for outside attorneys and litigation expenses, it may be a better practice to accept reasonable projections of the costs and to book them to the departments whose activities give rise to the expenditures. True costs of operations of the department are thereby documented and an important information loop between operations and costs is created. !'1]ND 001 QENERAL nnm ACCOtJNT OBJBC'I' " T:I'1'LB 2010-221 UPZND:I'l't7RS B'tItlc;J:'1' L:IHZ rrBH DftAl:L F:ISCAL YEAR 2009-2010 ~1't) R~_.J';, ~ f,'lllv I.,j-if. P./(i'.4-i f?o!' /11-'rJj.... ftd..J-cJ. D:IV:IS:ION on ern A'1"1'ORDY 2.2 2I "' ACTUAL 2006-07 Ac::ro1L 2007-0B PROJB~ 200B-09 ADOPTED 2009-10 5011 SALARIES PERM/FULLTIME 5013 AUTOMOBIL~ ALLOWANCE 5014 S~IES TEMP/PARTTIME 5015 OVERTIME 5026 PERS RETIREMENT 5027 HEALTH '" LIFE INSURANCE S02S UNEMPLOYMENT INS1..iRANCE 5029 MEDICARE TOTAL PBRSONNEL SERVICES 511: MATERIALS ~ SUPPLIES 5112 SMALL TCC~S & EQUIPMENT 5:2: ADVERT!S::;~ 5122 DUES & SvESCRIPTIONS 5:2) LIBRARY B~OKS <;. l3 1 MI LEAGE 5132 MEETIN~S & CONFERENCES 5133 EDUCATIOl; '" TRAINING 5171 RENTALS 5: 72 EQUIPME::,:- MAINTENANCE: 5~i4 PRINTING 2HARGES .~ 5175 POSTAGE 5176 t 5177 CQPY MACHINE CHARGES 1: LITIGAT:::n: EXPENSES 5IS3 MANAGEMENT ALLOWANCE _ __~Q.TA~d'!A};~ElY\.Nl;~_ _~__Q!~R.A,':r.t~qN 5502 PROFESSIONAL/CONTRACTUAL svCS ~ 5503 'LITIGATION-OUTSIDE ATTORNEYS 5505 OTHER PROFESSIONAL SERVICES TOTAL CONTRACTUALSERVJ:CES 5601 GARAGE CHARGES 5604 IT CHARGES IN-HOUSE 5605 TELEPHONE SUPPORT 5610 COMMUNICATION SHOP 5f12 F~EET CHGS. FUEL TOTAL :INTERNAL SERV:IC!: CHARGES 5702 COMPVTER EQUIPMENT 5704 MISCELLANEOUS EQUIPMENT TOTAL CAPITAL OUTLAY TDTAL 1. 674,915 4,.?OO 76,176 345 243,357 186,290 4,390 25,540 2,215,514 12,345 o 6,511 11,356 73,553 " 4,463 10,837 5,5.30 4,353 S,061 5,159 4,336 162,586 35 309,2~_~ 8,603 556,163 564,765 2,535 2,700 8,9Bl 5,200 1, BB7 21,303 , 1,927 1,1127 3,112,729 -* 51<1 ,.J.,,.d f4-0j 4'1"'1 -('eJ""",i ~ 11-0; p~O SSp) 63 1,841,045 5,700 96,056 1,997 343,012 194,597 4,862 28,305 2,51.5,573 11,779 o o 11,397 88,765 o 6,691 7,994 4,910 3,679 6,956 4,598 8,B81 158,157 90 313~ B97 910 637,554 140 638,604 883 2,500 6,342 9,700 3,047 22,472 3,490,670 ROD.1- ft (. P 125 o 125 1,844,77;6 .6\000 91,21:3 5,516 371,488 213,824 4,869 28,436 2,566,122 16,056 o o 9, no S7,606 lOB e,375 2,599 5,892 2,904 11,828 6,576 11,075 292, e64 BB 455,692 6,167 558,024 1,147 565,338 400 1,400 4,400 6,900 2,300 1.5,4.00 6,463 2,185 8,64.7 3,6U,199 CO"", iQQ 6,300 -88, lee 3,OOP 361,200 221,400 4,700 27,100 :? t:..(, 1G8 ~ 1,100 4,400 14,000 75, 000 300 ..6...LlJ>O ~ ~-.o 9,000 .....- 7,000 11,100 ~ 600 Ull.,30G 6,000 ~ 1,000 in~ nl)O 600 2,800 4,400 4,600 4,700 ..u....J..Wl. 200 2,500 ~ 3, [liB, 880" lSj..I(e-..'-'L,..........; PD~.'-:--,~eF,' 16" d:; '-- ., r~.. [.,/~ /: I ,i\ y ,v" i "I fi-o f~J i....r 20!() i- '{" 0 I /7'\ /!OQ i 1,1 [, \, .'1 " f...h:,"O ~i! f.:' I n<:y()O '3, i' c.' (.' 'te! ti ~'). '-I ?,'(I ~L o..D 19~, 1'/ it 3 Co~ ;2." I of ,,")'"/ ~ r.>9. S'f 5; foc, >I~ '> 52 <;0 0 ~ / t \' ~l \ " 41; bOO ---".-.---.--- '~ DO " 1 :'- S I'" 31101" +- 0 ~ ..; 3, (" 1<1, 5H 2010-221 City Attorney's Office FY 2010-11 Proposed General Fund Reductions Budget Summary Total: General Fund Budget Total: 8% Reduction Target: Department Recommendations Total: $3,776,700 $3,776,700 $302,136 $302,136 Full Time Department Employee Total: Proposed Full Time Employee Reduction: New Proposed Full Time Employee Total: 21.5 nla 22.5 - _._---,,- --.--- -,,-- Item Program Ongoing Budget Reduction Plan Impact Position Savin as Chanae Add 1 ACP Enforcement Position 1 Prosecution for a net increase in revenues of See Attached 1 $136,687 , 2 Litigation deduct $125,000 from Litigation - Outside Attorney's acc!. 3 Litigation deduct $40,449 from Litigation exoenses acc!. Total $0.00 Jo "'-Iv U./;(Scfv 0/30 110 3~ <;<.( (,'N"( 2010-221 Positions by Program Position Program Municipal Legal Services Litigation Prosecution (Incl. EDA) Attorney 5.55 3.1 1.35 Legal Secs. 1.8 1.5 1.7 Admin, Super. .3 .6 .10 Admin. Analyst 1.00 Exec, Asst. 1.00 Investigator Super. .10 .10 .8 Invest. FIT .10 .10 1.3 Invest. PIT .05 .05 1.9 Sub-Totals 8.9 5.4 8.2 Total 22.5 J\) \.-'" (,.J( ()Dr- 0/'10(10 )..5l r- ,\<-I" \