HomeMy WebLinkAbout02.B- City Manager DOC ID: 1959 A
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Public Hearing
From: Andrea Travis-Miller M/CC Meeting Date: 07/18/2012
Prepared by: Heidi Aten, (909) 384-5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Filing of a Petition Under Chapter 9 of the United States Bankruptcy Code. (At Meeting of July
16, 2012, Item Continued to July 18,2012)
Financial Impact:
The hearing was opened on July 16,2012.
Motion: Close hearing; and adopt Resolution.
Synopsis of Previous Council Action:
None.
City Attorney Review:
Supportin¢Documents:
reso 1959 (PDF)
Updated:7/17/2012 by Sabdi Sanchez A
Packet Pg. 9
1
RESOLUTION NO.
2
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
3 CITY OF SAN BERNARDINO AUTHORIZING THE FILING OF A PETITION
4 UNDER CHAPTER 9 OF THE UNITED STATES BANKRUPTCY CODE
5 WHEREAS, The Mayor and Common Council of the City of San Bernardino have determined d
6 c
that the City faces an immediate and severe fiscal crisis and that it is or likely will become >,
7 .U.
CL
unable to meet the City's financial obligations as and when those obligations are due or beco
B me Y
9 due and owing; and m
N
7
10 r
0
11 WHEREAS, Government Code sections 53760 through 53760.7 (collectively,the"Act")
d
12 a
authorize a local public entity to file a petition and exercise powers pursuant to applicable
13
federal bankruptcy law, if the local public entity declares a fiscal emergency and adopts a c
14
15 resolution by a majority vote of the governing board at a noticed public hearing that includes
16 findings that the financial state of the local public entity jeopardizes the health, safety,or well-
0
17 being of the residents of the local public entity's jurisdiction or service area absent the o
S
18 u
protections of Chapter 9 of the United States Bankruptcy Code;and
19
20 rn
rn
21 WHEREAS, By Resolution No. adopted on July 16, 2012, the Mayor and Common o
0
22 Council declared a fiscal emergency and determined that the City is or will be unable to pay its c
23 E
obligations within the next 60 days, and found that the financial state of the City jeopardizes the
24 z
a
25 health, safety,or well-being of the residents of the City absent the protections of Chapter 9 of
26 the United States Bankruptcy Code. Resolution No. was adopted after the City placed
27 on the City's agenda on July 16,2012 a noticed public hearing on the fiscal condition of the
28 City to take public comment.
DOCSOC/1572751v2/200430-0003 1
i
1 Given the City's dire financial condition and taking into consideration the advice of City staff
2 and counsel,the Mayor and Common Council has determined that it is in the best interests of
3
the City to delegate to the City Attorney the power to file a petition for protection under
4
s
Chapter 9 of the United States Bankruptcy Code.
d
c
6 0
V
T
V+
7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE �
8 'Y
CITY OF SAN BERNARDINO AS FOLLOWS: m
9 N
7
10 t
11 SECTION 1. Findinim
d
12 The foregoing recitals are true and correct and the Mayor and Common Council hereby
Z
v
13 so find and determine. The Mayor and Common Council hereby make the following findings: 0
14 C
7
C
15 O
16
(a)Based on'the analysis provided by the City staff and counsel at its meetings on a
m
w
17 July 10,2012 and July 16,2012,that without restructuring the City's financial obligations 03
c
18 through a Chapter 9 bankruptcy case,the City will be insolvent in the current fiscal year, ``
19 a,
r-
20 a
(b)That without the protections afforded by Chapter 9 of the Bankruptcy Code,the City
21 O
22 will be unable to meet its payroll which would endanger the health, safety and welfare of the `
Y
C
d
23 citizens of the City. E
r
24 z
Q
25
(c) That pursuant to Resolution No._adopted on July 16,2012, a fiscal emergency
26
27 was declared by the Mayor and Common Council, and the City is or will be unable to pay its
28 obligations within the next 60 days,and the Mayor and Common Council found that the
V
{ DOCSOCl1572751v2l200430-0003 2
Packet Pg. 11
i
1 financial state of the City jeopardizes the health, safety,or well-being of the residents of the
2 City absent the protections of Chapter 9 of the United States Bankruptcy Code.
3
4
s
SECTION 2. Authorization to File ChWter 9 Petition.
Z'
M
6 0
U
T
7 (a) Based on the findings set forth in Section 1 above, the Mayor and C
8 Common Council hereby resolve that a petition under Chapter 9 of the United States G
A
m
9 y
Bankruptcy Code shall be filed.
10 i
46
0
a
m
12 (b)The City Attorney is hereby authorized and directed,on behalf of and in the C
r
13 V
name of the City,to execute and verify such petition and cause the same to be filed with the
14 c
United States Bankruptcy Court,Central District of California. c
15 c
'a+
d
16 d
m
17 (c) The City Attorney,Interim City Manager and all other appropriate officials °�
c
18 and employees of the City are hereby authorized to execute and file all petitions, schedules, a
rn
19 LO
lists,and other papers, and to take any and all actions which they shall deem necessary and
20
proper in connection with said Chapter 9 case, and with a view to the successful completion of
21 0
W
22 such case.
c
m
23 E
r
v
24 SECTION 3. Other Actions. >r
25
26 The City Attorney, Interim City Manager,Director of Finance, City Clerk,and other
27 appropriate officers of the City,each acting alone, are authorized to take such other actions as
28 are appropriate to carry out the intent of this Resolution.
DOCSOC11572751v2/200430-0003 3
g. 12
1
2 SECTION 4. Effectiveness.
3
The Resolution shall take effect immediately upon its adoption.
4
5
m
a
6
T
7 /// Q
3
C
N
9 m
V)
10
11 C
d
12 m
r
13 v
v
14
c
15 4
16 L
17
18
rn
19
20
_m
21 o
w
P
22 .`.
c
23 d
r
U
24
Q
25
26
27
28
DOCSOC/1572751v2/200430-0003 4
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AUTHORIZING THE FILING OF A PETITION
2 UNDER CHAPTER 9 OF THE UNITED STATES BANKRUPTCY CODE
3
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5 Common Council of the City of San Bernardino at a meeting thereof, held on
6
0
the day of 2012,by the following vote,to wit:
7 n.
s Council Members: AYES NAYS ABSTAIN ABSENT
0
9 MARQUEZ 00
y
7
m
10 JENKINS
0
0
11 VALDIVIA
y
12 C-
SHORETT
13
d
14 KELLEY
C
15 JOHNSON
16 MCCAMMACK L
0
0
17 �
c
19 Georgeann Hanna, City Clerk
o
19 The foregoing Resolution is hereby approved this day of , 2012. 1 LO
20
m
21 0
V!
22 Patrick J. Morris, Mayor `
City of San Bernardino m
23 Approved as to t
form:
m
24 Q
25 Q
26
es F. Penman
27 ity Attorney
2
DOCSOC/1572751v2/200430-0003 5
Pa