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HomeMy WebLinkAbout10A- City Attorney CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: John F. Wilson Subject: Resolution Ratifying the A option of Sr. Asst. City Attorney Resolution 2010-221 Approving and Adopting Final Budget for Fiscal Year 2010/2011; and Dept: City Attorney Directing Establishment of the Appropriation Limit Required by Article XIIIB of the California Date: July 2, 2010 Constitution M/CC Meeting Date: July 6,2010 Synopsis of Previous Council action: June 30,2010 - Council Adopted Resolution No. 2010-221 Approving and Adopting the City of San Bernardino's Final Budget for Fiscal Year 2010-2011 and Directing Staff to Prepare Budget Documentation Recommended motion: That said resolution be adopted Signature Contact person: John Wilson Phone:384-5355 Supporting data attached: Staff Report Ward: All FUNDING REQUIREMENTS: Amount: Per Adonted Final Budget Source: (Acct. No.) (Acct. Description) Finance: Council Notes: Z/ 75-0262 Agenda Item No._ 1 b A -7/4// Reg ForCouncilAction 2010-2011 Budget Adoption CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION STAFF REPORT Subject: Ratification of adoption of the Final Budget for Fiscal Year 2010-2011 Background: At a Special Meeting on June 30, 2010, the Mayor and Common Council adopted Resolution No. 2010-221, a"Resolution of the Mayor and Common Council Approving and Adopting the City of San Bernardino Final Budget for Fiscal Year 2010-201 and Directing Staff to Prepare the Budget Documentation." That resolution was not before the Mayor and Common Council in its final form at the time of adoption. The resolution, as adopted, is attached hereto. This action ratifies the adoption of Resolution No. 2010-221. Further, it provides direction to the staff to commence the process for the adoption of the City's appropriations limit required by Article XIIIB of the California Constitution and to prepare such additional budget documentation as is required to implement the adopted Final Budget. Financial Impact: Per the Final Budget adopted through Resolution No. 2010-221. I RESOLUTION NO. COPPY 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL RATIFYING THE ADOPTION OF RESOLUTION NO. 2010-221 APPROVING AND ADOPTING THE CITY 3 OF SAN BERNARDINO'S FINAL BUDGET FOR FISCAL YEAR 2010-2011; AND DIRECTING THE ESTABLISHMENT OF THE CITY'S APPROPRIATION LIMIT AS 4 REQUIRED BY ARTICLE XIII B OF THE CALIFORNIA STATE CONSTITUTION 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 6 OF SAN BERNARDINO AS FOLLOWS: 7 8 WHEREAS,at the meeting of the Mayor and Common Council on June 30,2010,the"City of San 9 Bernardino California Preliminary Budget Fiscal Year 2010-2011,"was presented("Preliminary Budget"), 10 a copy of which is on file in the office of the City Clerk and which is incorporated herein by reference as 11 though fully set forth at this point; and 12 WHEREAS, at the June 30, 2010 meeting of the Mayor and Common Council, the Preliminary 13 Budget was amended by motion to incorporate therein the Interoffice Memorandum of the Office of the City © 14 15 Attorney Re: Final Proposed City Attorney Office Budget for FY 1010/2011,dated June 30,2010,a copy of which is attached hereto as Exhibit A, and by this reference made a part hereof; and 16 WHEREAS, at the June 30, 2010 meeting of the Mayor and Common Council, the Preliminary 17 Budget as amended, was approved and adopted as the Final Budget ("Final Budget") by adoption of 18 Resolution No. 2010-221; and; 19 WHEREAS, Article XIII B of the Constitution of the State of California as proposed by the 20 Initiative Measure approved by the people at the special statewide election held on November 6, 1979, 21 provides that the total annual appropriations subject to limitation of each local government shall not exceed 22 the appropriations limit of such entity for the prior year adjusted for changes in the cost of living and 23 population except as otherwise specifically provided for in said Article; and 24 WHEREAS,Section 7910 of the Government Code provides that each year the governing body of 25 each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year 26 pursuant to Article XIII B at a regularly scheduled meeting or a noticed special meeting and that fifteen days 27 prior to such meeting,documentation used in the determination of the appropriations limit shall be available 28 FAWILSONMResolutlonsX2010-2011 Budga7.1.10mpd 1 ® I RESOLUTION OF THE MAYOR AND COMMON COUNCIL RATIFYING THE ADOPTION OF RESOLUTION NO.2010-221 APPROVING AND ADOPTING THE CITY 2 OF SAN BERNARDINO'S FINAL BUDGET FOR FISCAL YEAR 2010-2011; AND DIRECTING THE ESTABLISHMENT OF THE CITY'S APPROPRIATION LIMIT AS 3 REQUIRED BY ARTICLE XIII B OF THE CALIFORNIA STATE CONSTITUTION 4 5 to the public; and 6 7 WHEREAS,the City Council of the City of San Bernardino wishes to establish the appropriations 8 limit for fiscal year 2010-2011 for the City of San Bernardino. 9 NOW THEREFORE,BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 10 SECTION 1. The action of the Mayor and Common Council in approving and 11 adopting Resolution No. 2010-221 is hereby ratified, and said Final Budget, as approved 12 and adopted, is the 2010-2011 Final Budget of the City of San Bernardino effective July 13 1, 2010. ® 14 15 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 16 Final Budget,and to establish an appropriations limit in accordance with Article XIII B of 17 the Constitution of the State of California. 18 SECTION 3. This Resolution shall take effect upon the date of its adoption 19 20 21 22 23 HI 24 25 26 27 28 F:\WICS0N\Reso1utions\2010-2011 Budget 7.1.10."d 2 © I RESOLUTION OF THE MAYOR AND COMMON COUNCIL RATIFYING THE ADOPTION OF RESOLUTION NO.2010-221 APPROVING AND ADOPTING THE CITY 2 OF SAN BERNARDINO'S FINAL BUDGET FOR FISCAL YEAR 2010-2011; AND DIRECTING THE ESTABLISHMENT OF THE CITY'S APPROPRIATION LIMIT AS 3 REQUIRED BY ARTICLE XIII B OF THE CALIFORNIA STATE CONSTITUTION 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 7 Mayor and Common Council of the City of San Bernardino at a 8 meeting thereof,held on the day of 2010,by the following 9 vote, to wit: 10 COUNCILMEMBERS: AYES NAYS ABSTAIN ABSENT 11 MARQUEZ 12 DEJARDINS 13 BRINKER 14 SHORETT 15 KELLEY 16 JOHNSON 17 MCCAMMACK 18 19 20 CITY CLERK The foregoing Resolution is hereby approved this_day of 2010. 21 22 PATRICK J. MORRIS, Mayor 23 City of San Bernardino 24 Approved as to form: 25 JAMES F. PENMAN, City At mey 26 By: 27 ® 28 F:\"SON\R=1u[ions12010-2011 Budgd 7.1.10.wpd 3 1 RESOLUTION N0. 2010-221 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL APPROVING AND 3 ADOPTING THE CITY OF SAN BERNARDINO'S FINAL BUDGET FOR FISCAL YEAR 4 2010-2011 AND DIRECTING STAFF TO PREPARE BUDGET DOCUMENTATION 5 WHEREAS,at the meeting of the 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 ® 14 WHEREAS, the Preliminary Budget as amended constitutes the Final Budget. 15 NOW THEREFORE,BE IT RESOLVED BY THE MAYOR AND COMMON 16 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 17 SECTION 1. The Mayor and Common Council approve and adopt the Final Budget. 18 19 SECTION 2. The City Manager is hereby directed to prepare budget 20 documentation and take such further action as necessary to implement the adoption of the Final Budget. 21 22 SECTION 3. This Resolution shall take effect upon the date of its 23 adoption. 24 25 26 27 28 F:\WILS0MReso1ufim\2010-2011 Budget2-7.I.10.wpd 1 © I 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 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 6 Mayor and Common Council of the City of San Bernardino at a 7 _meeting thereof,held on the day of 2010,by the following vote, to wit: 8 9 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 10 MARQUEZ — 11 12 DEJARDINS 13 BRINKER SHORETT 14 — IS KELLEY 16 JOHNSON MCCAMMACK 17 18 19 CITY CLERK 20 The foregoing Resolution is hereby approved this day of 2010. 21 22 PATRICK J. MORRIS, Mayor 23 City of San Bernardino Approved as to form: 24 JAMES F. PENMAN, 25 City A �rney 26 By: ,t 27 28 F-MUSOMResolutions12010-2011 Budget2-7.1.10.wpd 2 eERNwRD p ; - EXHIBIT "A" 'Y�ED 1N� INTER OFFICE MEMORANDUM OFFICE OF THE CITY ATTORNEY CITY OF SAN BERNARDINO To: Charles McNeely, City Manager From: James F. Penman, City Attorney � 3 Subject: Final Proposed City Attorney Office Budget For FY 2010/2011 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. O 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 $125,000and the Litigation Costs line item by more than $40,449. We have made those reductions. -- Theanly-other-fine-items that cuuidbereduced rto-realiz -a ooreductionwould-beinpersonnel 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 waif'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. © MEMORANDUM TO: James Penman, City Attorney FROM: John Wilson, Sr. Asst. City AttyA 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 ACT 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, it is a given-that-new-litigation-will-be commencezl againsTthe City during t� fiscal year 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. z,_> EEPENDITORE HIIDGFI LINE ITEH DETAIL FISCAL YEAR 2009-2010 / ' g%D Qed'u9 r,P rM a,ar^ Nau F'os r`1 ,b 1. � d�'C'q � � POtm DOI FUND aMBION 051 CITY ATTOOIR! - Pro pea kef ACI` 0E08CT 4 TSTLE ACT'D2.L 2006-01 ACTTIIJ, 2007-OB P100 MD 2009-09 iaOPTID 2009-10 5011 SALARIES PERM/FULLTZME 1,674,915 1,841,D45 1,044,776 -i.B6hA00- 5013 AUTOMOBILE ALIAWANCE 4,500 5,7DO .6,D00 6,300 5014 SALARIES TEMP/PARTTIME - ]6,1]6 96,056 .91,213 jj P OQ 5D15 OVERTIME 345 1,997 5,516 3,ODP 5026 PERS RETIREMENT 243,357 343,012 371,488 361,200 IppI 5027 HEALTH 6 LIFE INSURANCE 186,290 194,597 213,824 221,400 ,� 1 5020 UNEMPLOYMENT INSURANCE 4,390 4,862 41869 4,700 5029 MEDICARE 25.540 28,305 20,436 21,100 k K�r1� TOTAL PERSONNEL SERVICES 2,215,714 2,515.573 2.566,122 3.5367490 5111 MATERIALS 6 SUPPLIES - 12,345 11,]]9 16,056 30.900 /&,000 5112 SMALL TWLS 6 EQUIPMENT 0 0 0 1,100 512: ADVERTIS:NG 6,511 0 0 4.400 5122 DUES 6 SU?SCRIPTIONS 11,356 11,390 9,720 14,000 5:23 LIBRARY BOOKS 73,553 88,765 80,606 75,000 5131 MILEAGE 95 0 106 300 5132 MEETINGS 6 CONFERENTIS 4,463 6,691 0,375 c nm '3, D O o 5133 EOUCATIOY. t TRAINING 10,837 1,994 2,599 "0 3171 RENTALS 5.530 41910 5,892 6--000 5172 EQUIPME'.' MAINTENANCE 4,353 3,679 2,904 9.000 5174 PRINTING CHARGES 8,061 6,956 11,828 11..940 b, o•O M 51/75 POSTAGE 5.159 4,598 6,576 7,000 Enr MACHINE CHARGES 4.336 8,881 11,075 11,100 ri 5 ITIGAT:ON EXPENSES 1621SB6 158,157 292,864 _a8 8 5183 MANAGEMENT ALLOWANCE 35 90 88 600 1 ?� TYPAL 14AINTE1pNR 4 OPERATION 309,220 313,897 455,692 4*913 JIO / 25 5502 yPROFESSIONAL/CONTRACTUAL SOCS 6,603 910 6.167 61000 91 5503 LITIGATION-OUTSIDE ATTORNEYS 556,163 637,554 550,024 5y y/ QOO 5505 OTHER PROFESSIONAL SERVICES 0 140 1,157 1,ODO TOTAL CON1'RACPOAI, SERVICES - 564,765 630,6D4 565,338 4:0' t 5601 GARAGE CHARGES 2,535 083 400 600 4 5604 IT CHARGES IN-H011SE 2,700 2.500 1,900 2,800 5605 TELEPHONE SUPPORT 81981 6,342 4,4DO - 4,400 CF 5610 COMMUNICATION SHOP 5,200 9,700 6,900 4,600 \ 5612 FLEET CNGS FUEL 1,BB7 3,047 3,300 4,700 TOTAL INTERNAL SERVICE CEAROES 21,303 22,472 15,400 41, 5702 COMPUTER EQUIPMENT - C 125 6,463 200 5704 MISCELLWEDUS EQUIPMENT 1,921 0 2,185 2,500 Dp TOTAL CAPITAL OUTLAY 11927 125 8,647 -47440 © 3,112,729 3,190,670 31611,199 3s-f00r87r0' 31 (.j IiI SIT 1 ADD �- AGP 55D3 125/ Poo 3 63 V- f City Attorney's Office FY 2010-11 Proposed General Fund Reductions Budget Summary Total: $3,776,700 © General Fund Budget Total: $3,776,700 8% Reduction Target: $302,136 Department Recommendations Total: $302,136 Full Time Department Employee Total: 21.5 Proposed Full Time Employee Reduction: nla New Proposed Full Time Employee Total: 22.5 Item Program Ongoing Budget Reduction Plan Impact Position Savings Chan e 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 acct. 3 Litigation deduct$40,449 from Litigation expenses acct. Total $0.00 Jo �� ltli �5ew 00 I/o 3� S`� Positions by Program Position Program Municipal Legal Services Liti ag tion 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. F/T .10 .10 1.3 Invest. P/T .05 .05 1.9 © Sub-Totals 8.9 5.4 8.2 Total 22.5 Q N 0,10NO g .51 `�a1