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HomeMy WebLinkAbout08-23-2010 Jt. Adj Reg Mtg CITY OF SAN BERNARDINO 300 N. "D" Street San Bernardino, CA 92418 Website: www.sbcity.org Mayor Patrick J. Morris Council Members: Virginia Marquez Jason Desjardins Tobin Brinker Fred Shorett Chas Kelley Rikke Van Johnson Werury McCammack MINUTES MA YOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING AUGUST 23, 2010 ECONOMIC DEVELOPMENT AGENCY BOARDROOM 201 NORTH "E" STREET 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 regular meeting of the Mayor and Common Council and Community Development Commission held at 1 :30 p.m., Monday, August 16, 2010, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The City Clerk has caused to be posted the order of adjournment of said meeting held on Monday, August 16, 2010, 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 9: 15 a.m., Tuesday, August 17, 2010, on the City Hall breezeway bulletin board. 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 5:10 p.m., Monday, August 23, 2010, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. 1 08/23/2010 Roll Call Present: Mayor/Chairman Morris; Council Members/Commissioners Marquez, Desjardins, Brinker, Shorett, Kelley, Johnson, McCammack; City Attorney Penman, City Manager McNeely, Deputy City Clerk Hartzel. Absent: None. 1. Closed Session Pursuant to Government Code Section(s): A. Conference with legal counsel - eXIstmg 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: Fire Management Fire Safety General Management/ Confidential Mid- Management Police Management Police Safety G. Conference with real property negotiator - pursuant to Government Code Section 54956.8. 2 08/23/2010 City Attorney Penman announced that an additional item would be discussed under California Government Code Section 54956.9 (b)(3)(A) - facts and circumstances that might result in litigation against the local agency but which the local agency believes are not yet known to a potential plaintiff or plaintiffs, which facts and circumstances need not be disclosed. 2. A Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the establishment of a City-owned vehicle impound facility to be operated and maintained by the City of San Bernardino Police Department. (Continued from August 16, 2010) Note: No resolution was distributed with the backup materials. Council Member/Commissioner McCammack made a motion to table the item. The motion died for lack of a second. Council Member/Commissioner Desjardins stated that he would abstain on this matter as he has a financial interest in a towing operation. Council Member/Commissioner Shorett made a motion, seconded by Council Member/Commissioner Brinker, that the matter be continued to the Council! Commission meeting of September 20, 2010. The motion carried with McCammack voting "no," Desjardins abstaining, and Kelly absent. 3. City Budget Deliberations - Fiscal Year 2010/11 The following document was distributed to the Mayor and Common Council: An interoffice memorandum from James F. Penman, City Attorney, to Charles McN eely, City Manager, entitled, "Final Proposed City Attorney Office Budget For FY 2010/2011," dated June 30,2010. The following PowerPoint presentation was distributed and Charles E. McNeely, City Manager, and Barbara Pachon, Director of Finance, provided a detailed overview of the information contained therein: "Fiscal Year 2010-11 Budget Discussions, City of San Bernardino, Charles E. McNeely, City Manager, Barbara Pachon, Director of Finance, August 23, 2010." Charles McNeely, City Manager, stated that at the August 2, 2010 Council meeting he was directed to bring back an alternate budget proposal to rebalance the budget, given the Council's action to not go forward with specific revenue measures that had been recommended. He stated that he had forwarded to the City Council for their consideration his budget proposal to rebalance the FY 2010/11 budget, as well as the 2011/12 budget. 3 08/23/2010 Mr. McNeely stated that he believes it is necessary to be in a position to cover a two-year spending plan. He acknowledged the fact that staff has been in the process of negotiating with the bargaining groups and has been successful in reaching agreements with many of the bargaining groups, so they have an understanding of what some of the cost items will be over the next two years. During the initial budget sessions, staff also presented to the Council a five-year plan based on a number of assumptions, which included anticipated revenue from a proposed property tax, sales tax and utility tax. He stated that his recommendation, and what they have presented to the Council, is a two-year budget proposal; however, he believes it is critical to also look at a five-year plan that would focus on the remaining three years of the budget process. Mr. McNeely stated that if the Council has no interest in moving forward with additional significant revenue measures, some cuts are going to be necessary, and in order to balance the budget for the next two years the Council needs to take action quickly because those cuts will have to be made during this budget year. Mr. McNeely stated that the longer they wait, the significance of the expenditure reduction grows, and he wanted to be able to provide department heads and their staff with the necessary clearance about the decisions that have to be made, proceed to make those tough choices, and then begin to restructure the organization based upon those reductions. In closing, Mr. McNeely recommended that an 8 percent reduction be made across the board and shared throughout every department. He stated that public safety represents over 70 percent of the City's budget and continues to be a vital service; however, balance in the operating side is shrinking, which means that less than 30 percent of the General Fund operating budget is made up of the remaining departments. He stated that they need to get away from simply adjusting the budget one year after the next-they need to think long term. Terry Shea, partner with Rogers, Anderson, Malody and Scott, LLP, provided clarification of the City's financial status. Dave Kennedy, City Treasurer, stated that his monthly report of the City's investment pool shows that it has shrunk $40 million in three years. He noted that these cash shortages, especially in the General Fund are going to make it very difficult to make bill payments in a timely fashion. That monthly report includes a statement at the bottom that states, "The City has sufficient cash reserves to pay its bills for the next six months." He stated that he's required by law to put that on there, but he's not sure he's going to be able to continue holding to that statement, so he's going to have to provide the California Debt and Investment Advisory Commission (CDIAC), the State Agency that regulates cities and finances, with an explanation of why the City can't or may not be able to pay its bills. This will probably have serious repercussions. 4 08/23/2010 The City has to file with the Federal Agency that supervises bonds and securities for cities any significant change in its financial status which bond holders or potential bond buyers should know in order to make educated, informed decisions about buying our bonds. This is a required ongoing disclosure-not just at the time the bonds are issued, but every time one of these events occurs, we have to notify this agency of these deteriorations in our economic situation. This will probably affect the City's credit rating and that's going to affect all City financing, not just the City's General Fund. It's going to affect EDA, and it's going to affect the Water Department-we're all bunched together for purposes of borrowing money. Failure to do this carries civil and criminal sanctions. City of San Diego Council people have been indicted by the Federal Government for failure to disclose adequately on bond issues. The SEC just served a bunch of subpoenas on the City of Victorville over the weekend. This is serious. In conclusion, Mr. Kennedy stated that the City really needs to do something and we need to do it now. We need real budgeting with real numbers-no more pretended revenues. He quoted Winston Churchill who said, "Americans will always do the right thing, but only after they've tried everything else." Mr. Kennedy added that he believes we've tried everything else. Representatives from the following departments described how budget reductions have impacted their respective departments and how the proposed 8 percent cut will further impact services to the community: Police; Fire; Community Development; Public Works; Parks, Recreation and Community Services; and the Library. Public Comments: Abe Majadi, President and CEO of the Boys & Girls Club, San Bernardino, CA; Roger Henderson, San Bernardino, CA; Robert Jenkins, San Bernardino, CA; Warner Hodgdon, San Bernardino, CA; Don Stubbs, Parks employee; Sandra Romero, Board Member at the San Hi Football Junior All American League, San Bernardino, CA; Lucky V. Simpson, San Bernardino, CA; Robert E. Keitt, San Bernardino, CA; Scott Johnson, San Bernardino, CA; Jim McMullen, Vice-President of the San Bernardino City Professional Firefighters Local 891, San Bernardino, CA; Paul W. Sanborn, San Bernardino, CA; Cheryl Brown, San Bernardino, CA; Tom Ramos, San Bernardino, CA; John Marini, Yucaipa, CA; James Smith, San Bernardino, CA; Kim Burgett, San Bernardino, CA; 5 08/23/2010 Norma Archie, San Bernardino, CA; Charles Greenwood, San Bernardino, CA; Draymond Crawford, San Bernardino, CA; Richard Rodriguez, Parks employee; Kathy and James Geasland, San Bernardino, CA, spoke regarding a citation they received for lack of maintenance on their property. Discussion ensued regarding the City's budget crisis, revenue enhancement measures, the current housing market, reductions in workforce and services, retirement incentives, operational efficiencies, parking meters, and economic development. City Attorney Penman requested a continuance regarding his department's eight percent reduction target of $293,968 in order to give him an opportunity to meet with the City Manager to discuss the disposition of pending lawsuits. Council Member/Commissioner Marquez requested clarification of an item under the budget reduction plan for park maintenance to eliminate two park maintenance supervisors, or eliminate one supervisor and close Delmann Heights. She asked if this was an either/or situation. Kevin Hawkins, Director of Parks, Recreation & Community Services, answered in the affirmative. He stated that the standing recommendation is to eliminate one supervisor, and the option being presented to the Council is to either eliminate the funding for Delmann Heights for the Boys and Girls Club contract or to include an additional supervisor, keeping in mind that the supervisors are part of the working crew so that would mean a reduction in park maintenance staff. Council Member/Commissioner Marquez made a motion, seconded by Council Member/Commissioner Brinker, to keep Delmann Heights open. The vote was taken following further discussion. Council Member/Commissioner Johnson stated that he sits as Chairman of the Boys & Girls Club and they have a contract with Delmann Heights. He stated that he has not derived any income from sitting on that position, in fact, he gives money to the Boys and Girls Club, but it is an appearance of a conflict of interest, and if the matter was going to be discussed, he would have to step out of the room. Council Member/Commissioner McCammack made a substitute motion to approve the Tier 1 cuts except for the Library, the Fire Department and the Parks, Recreation and Community Services Department. A second to the motion and the vote was taken later in the meeting. 6 08/23/2010 Council Member/Commissioner McCammack stated that it was her understanding that the other cuts were not going to take effect until July 1 of next year. City Manager McNeely stated that the two-tier process would require them to start early during this budget year so that by July 1 those cuts would have already been made and the City would benefit from a full year's worth of savings. Council Member/Commissioner Kelley asked Council Member McCammack why she did not include Public Works and the Police Department in her motion. Council Member/Commissioner McCammack stated that Tier 1 is basically leaving vacant positions vacant. She stated that she did not want to leave them vacant; however, some tough choices are going to have to be made in order to balance the budget and not have any layoffs. It would mean they would leave in tact the budgets for Fire, the Library, and Parks and Recreation. Barbara Pachon, Director of Finance, clarified that Tier 1 is vacant positions and maintenance and operations, things they could do immediately, whereas Tier 2 has to do with filled positions that go through a Civil Service process that will take time to implement-and it has to be done by June 30. City Attorney Penman stated that if the Council were to vote on this cut, he would have to immediately stop lawyers from working on cases. He stated that the Council needs to review in closed session which cases they want to settle and which cases they want to accept losses on. The substitute motion made by Council Member/Commissioner McCammack, was seconded by Council Member/Commissioner Kelley, to approve the Tier 1 cuts except for the Library, the Fire Department and the Parks, Recreation and Community Services Department. The motion failed by the following vote: Ayes: Kelly, McCammack. Nays: Marquez, Brinker, Shorett, Johnson. Absent: Desjardins. The original motion made by Council Member/Commissioner Marquez, seconded by Council Member/Commissioner Brinker, to keep Delmann Heights open died for lack of a quorum with Desjardins, Kelley, Johnson and McCammack absent. Council Member/Commissioner Shorett made a motion, seconded by Council Member/Commissioner Marquez, that the City Manager's Modified Budget Strategies be approved and implemented as outlined in the staff report from Charles McNeely, City Manager, dated August 19, 2010; and that the Director of Finance be authorized to amend the FY 2010/11 budget and prepare the 7 08/23/2010 preliminary FY 2011/12 budget to reflect the implementation of these strategies. No vote was taken. Council Member/Commissioner Johnson requested clarification of the motion, stating that he would have to abstain from voting on the Delmann Heights issue. Mayor/Chairman Morris confirmed that Delmann Heights was included in the motion. Council Member/Commissioner Johnson requested that Delmann Heights be removed and voted on separately. Council Member/Commissioner Johnson made a substitute motion, seconded by Council Member/Commissioner Brinker, that the City Manager's Modified Budget Strategies be approved and implemented as outlined in the staff report from Charles McNeely, City Manager, dated August 19, 2010; to exclude Delmann Heights; and that the Director of Finance be authorized to amend the FY 2010/11 budget and prepare the preliminary FY 2011/12 budget to reflect the implementation of these strategies. The vote was taken following further discussion. City Manager McNeely stated that if the Council was to approve his recommendation, the option regarding Delmann Heights could be worked out and brought back at a later date. Council Member/Commissioner Desjardins requested that the motion be amended to leave the Fire Department's budget intact, and that it be revisited after fire season is over-around November. City Manager McNeely stated that the City Attorney has offered to bring forward a recommendation for the Council's consideration regarding his budget; however, he noted that the City Council's budget was unresolved. He indicated that he would like some direction from the City Council with respect to their budget and what they would like to offer up as part of their eight percent reduction. Council Member/Commissioner Kelley made a second substitute motion, seconded by Council Member/Commissioner McCammack, that the City Manager's Modified Budget Strategies be approved and implemented as outlined in the staff report from Charles McNeely, City Manager, dated August 19, 2010; to exclude the City Attorney's office, the Fire Department, and Delmann Heights; and that the Director of Finance be authorized to amend the FY 2010/11 budget and prepare the preliminary FY 2011/12 budget to reflect the implementation of these strategies. The motion was subsequently amended. 8 08/23/2010 City Attorney Penman stated that he was not asking that the City Attorney's office be excluded-he was merely requesting a two-week continuance in order to meet with the Council in closed session to discuss the cases. Council Member/Commissioner Kelley amended his second substitute motion, seconded by Council Member/Commissioner McCammack, that the City Manager's Modified Budget Strategies be approved and implemented as outlined in the staff report from Charles McNeely, City Manager, dated August 19, 2010; to exclude the Fire Department, keep the Delmann Heights Community Center open, and continue the City Attorney's budget for two weeks; and that the Director of Finance be authorized to amend the FY 2010/11 budget and prepare the preliminary FY 2011/12 budget to reflect the implementation of these strategies. The motion failed by the following vote: Ayes: Desjardins, Kelley, McCammack. Nays: Marquez, Brinker, Shorett, Johnson. The original substitute motion made by Council Member/Commissioner Johnson, seconded by Council Member/Commissioner Brinker, that the City Manager's Modified Budget Strategies be approved and implemented as outlined in the staff report from Charles McNeely, City Manager, dated August 19, 2010; excluding the Delmann Heights Community Center; and that the Director of Finance be authorized to amend the FY 2010/11 budget and prepare the preliminary FY 2011/12 budget to reflect the implementation of these strategies carried by the following vote: Ayes: Marquez, Desjardins, Brinker, Shorett, Johnson. Nays: Kelley, McCammack. 4. Direct the City Manager to begin exploring the implementation of parking meters in the Courthouse square in the City of San Bernardino Public Comments: Warner Hodgdon, San Bernardino, CA. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Brinker, that the use of parking meters in the Judicial Square around the Courthouse be approved and that the City Manager be directed to begin exploring the implementation of parking meters in the Courthouse square in the City of San Bernardino. The motion carried unanimously. 9 08/23/2010 5. Adjournment At 11 :08 p.m., the meeting adjourned. The next joint regular meeting of the Mayor and Common Council/Community Development Commission is scheduled for 1:30 p.m., Tuesday, September 7, 2010. RACHEL G. CLARK City Clerk BY~~t~ Linda Sutherland Deputy City Clerk 10 08/23/2010