HomeMy WebLinkAbout2015-103 1
RESOLUTION NO. 2015-103
2
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
3 OF SAN BERNARDINO AUTHORIZING THE IMPLEMENTATION OF THE CITY'S
4 FISCAL RECOVERY PLAN, THE FILING OF THE CHAPTER 9 PLAN OF
ADJUSTMENT AND DISCLOSURE STATEMENT, AND THE FILING OF RELATED
5 DOCUMENTS
6
WHEREAS, on July 18, 2012, the Mayor and Common Council of the City of San
a Bernardino adopted Resolution 2012-206 authorizing the filing of a petition under chapter 9 of
9 the United States Bankruptcy Code; and
10
11 WHEREAS, on August 1, 2012, the City filed a petition under chapter 9 of the United
12 States Bankruptcy Code commencing Case No. 6:12-bk-28006-MJ now pending in the United
13 States Bankruptcy Court for Central District of California, Riverside Division; and
14
15 WHEREAS, on August 28, 2013, the Honorable Meredith A. Jury determined that the
16 City was eligible to be a debtor under chapter 9, that the City filed its chapter 9 petition in good
17 faith and that the petition met all of the applicable requirements of the United States
18 Bankruptcy Code, and entered an order for relief on September 17, 2013; and
19
20 WHEREAS, on November 18, 2014 the Honorable Meredith A. Jury ordered the City
21 to file a proposed plan of adjustment by no later than May 30, 2015; and
22
23 WHEREAS, on April 6, 2015, the Mayor and Common Council of the City of San
24 Bernardino adopted Resolution 2015-71 establishing and adopting the Operating Practices for
25 Good Governance attached thereto as Exhibit A; and
26
27 WHEREAS, the Operating Practices for Good Governance provide that the City
28 Manager shall have both the authority and accountability to produce a confirmable Plan of
1
DOCS SM/3015834v3/200430-0003
1 Adjustment to the Common Council of the City of San Bernardino for approval, and shall also
2
have the responsibility for implementing the Plan of Adjustment to ensure the City exits its
3
chapter 9 Bankruptcy Case as soon as possible; and
4
5
WHEREAS, the City shall continue to work with the Charter Review Committee for
6
the purposes of reviewing the City Charter for governance and operational efficiencies and
effectiveness consistent with the City's Recovery Plan; and
8
9
WHEREAS, the City is committed in its efforts to resolve the claims of creditors
to
through mediation or consensually, but must also proceed in an efficient and cost effective
11
manner and comply with the Bankruptcy Court's order to file a proposed plan of adjustment
12
with the United States Bankruptcy Court by no later than May 30, 2015 in furtherance of the
13
completion of the City's chapter 9 case and in the best interests of the City's residents; and
14
15
16 WHEREAS, the Mayor and Common Council understand and adopt the Recovery Plan,
17 attached as Exhibit 1, as may be amended from time to time, as circumstances may warrant; and
18
19 WHEREAS, the Mayor and Common Council understand and accept that the Plan of
20 Adjustment, the Disclosure Statement and any documents related to the Plan of Adjustment and
21 Disclosure Statement, may be amended from time to time, prior to their filing, as the claims of
creditors are resolved or other factual and legal circumstances may warrant.
22
23
24 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
25 COUNCIL OF THE CITY OF SAN BERNARDINO,AS FOLLOWS:
26
27
SECTION 1. Findings. The foregoing recitals are true and correct and the Mayor and
28 Common Council hereby so find and determine.
2
DOCSSM/3015 834v3/200430-0003
1
2
SECTION 2. Major Actions and Implementation of Recovery Plan Supporting the
3
Plan of Adjustment. The Mayor and Common Council hereby commit to the implementation
4
of any and all of the actions described in the Recovery Plan supporting the Plan of Adjustment,
5
including without limitation, contracting out municipal services, which are aimed at restoring
6
and maintaining budget, service and cash solvency for the City and its residents.
7
8
SECTION 3. Authorization To File Disclosure Statement and Plan of Adjustment,
9
and Further Related and Necessary Documents in Furtherance of the Resolution of the
10
City's Chapter 9 Case.
11
12
(a) The City Attorney or his appropriate designee is hereby authorized and directed, on
13
behalf of and in the name of the City, and, where appropriate, with the assistance and/or advice
14
of the City Manager, to approve and file the Disclosure Statement and the Plan of Adjustment,
15
and to file amendments to the Plan of Adjustment and/or the Disclosure Statement and all
16
17 related and necessary documents, in furtherance of the resolution of the City's chapter 9 case.
18
19 (b) The City Attorney and all other appropriate officials and employees of the City are
20 hereby authorized to execute and file all other papers, and to take any and all actions which they
21 shall deem necessary and proper in connection with the filing of the Plan of Adjustment and the
22 Disclosure Statement, and for the execution of the major actions and implementation of the
23 Plan of Adjustment, with a view to the successful completion of the City's chapter 9 case.
24
25 SECTION 4. Other Actions. The City Attorney, City Clerk, and other appropriate
26 officers of the City, each acting alone, are authorized to take such other actions as are
27 appropriate to carry out the intent of this Resolution.
28
3
DOCSSM/3015 834v3/200430-0003
1 SECTION 5. Effectiveness. This Resolution shall take effect immediately upon its
2
adoption.
3
4
5
6
///
7
8
9
10
11
12
///
13
14
15
16
17
18
19
20
21
22
23
///
24
25
26
27
28
4
D O C S S M/3 015 834v3/20043 0-0003
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
2 BERNARDINO AUTHORIZING THE IMPLEMENTATION OF THE CITY'S FISCAL
3
RECOVERY PLAN, THE FILING OF THE CHAPTER 9 PLAN OF ADJUSTMENT
4
AND DISCLOSURE STATEMENT,AND THE FILING OF RELATED DOCUMENTS
5
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
7 Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the
8 18th day of May, 2015, by the following vote, to wit:
9 Council Members: AYES NAYS ABSTAIN ABSENT
to
MARQUEZ X
11
12 BARRIOS X-
13 VALDIVIA X
14 SHORETT X
15
NICKEL X
16
JOHNSON X
17
18 MULVIHILL X
19 -L�2
20
GeorgeaA Hanna, City Clerk
T
21 The foregoing Resolution is hereby approved this / day of May, 2
22
G'C
23
R. CAREY AVIS, Mayor
24 City of San Bernardino
Approved as to form:
2 5 GARY D. SAENZ, City Attorney
26
27 B
28
5
DOC SSM/3 015 834v3/20043 0-0003
EXHIBIT "A"
1 RESOLUTION NO. 2015-71
2
3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ESTABLISHING AND ADOPTING OPERATING PRACTICES FOR
4 GOOD GOVERNANCE.
5
WHEREAS, the People of the City of San Bernardino have chosen to exercise their right
6 and power under the California Constitution to organize as a charter city, and have adopted the
7 City Charter, which serves as the City's constitution; and
8 WHEREAS, the intent of the People of the City in choosing this form of home rule
government was to promote the efficient and effective operation of City government; and
9
10 WHEREAS, the Strategic Planning Core Team examined the provisions of the San
Bernardino City Charter that establish the distribution of duties and powers within City
11 Government; and
12 WHEREAS, the primary role of the Common Council is to establish city policy through
13 the Council's legislature power, pursuant to Article III of the City Charter; and
14 WHEREAS, the primary role of the Mayor is to serve as chief executive and
15 spokesperson for the city pursuant to Article IV of the City Charter, provided that he also has the
power, subject to Council approval, to appoint and generally supervise the City Manager, and
16 approve or disapprove ordinances, as well as certain other specified duties and powers; and
17 WHEREAS, section 102 of the City Charter specifies the many duties and powers of the
18 City Manager, the most significant of which is to direct and exercise immediate supervision over
the administration of all Manager-directed City departments; and
19
WHEREAS, section 104 of the City Charter provides broad authority to the City
2 Manager to exercise his appointment and management duties without interference; and
21
WHEREAS, under Charter Section 55, the role of the City Attorney is to be the chief
22 legal officer of the City, and in that capacity to represent and advise the Mayor, Common
23 Council and other City officers; and
24 WHEREAS, other provisions of the City Charter provide for an elected City Treasurer
and City Clerk, and specify the important duties and powers of those officials; and
25
26 WHEREAS, in certain respects the provisions of the Charter establishing the distribution
of duties and powers within City Government appear unclear or inconsistent, which imposes an
27 impediment to the efficient functioning of the City Government; and
28
t
1 WHEREAS, under established municipal law principles, these City Charter provisions
must be harmonized in a reasonable manner to promote the public interest and intent of the
2 voters in approving those provisions; and
3
WHEREAS, in other charter cities that function effectively and efficiently, substantial
4 deference and discretion is provided to the city manager to manage and supervise the operations
s
of city government; and
6 WHEREAS, all parties hereto recognize that the efficient functioning of the City
Government is essential to the City's ability to Adopt a Plan of Adjustment and to emerge from
7 bankruptcy; and
8 WHEREAS, the City of San Bernardino's Strategic Planning Core Team ("Team"), a
9 group of diverse community and institutional leaders, was tasked with recommending to the City
Council a new direction for the City, a strategic plan; and
to
11 WHEREAS, this plan will provide a roadmap for the renaissance of San Bernardino and
direction for the City's impending bankruptcy exit plan, i.e. Plan of Adjustment; and
12
WHEREAS, in order to plan for a new future the Team established that it was important
13 to understand the current organizational context and they listened to a high-level assessment of
14 the City organization to evaluate barriers to excellence; and
15 WHEREAS, the Team discussed potential causes for the City's bankruptcy, the reasons
16 why the City cannot provide adequate services and why it is so hard to determine who is in
charge and ultimate accountability for organizational performance; and
17
WHEREAS, the Team feels that the foregoing issues need to be addressed in order to
18 achieve the vision and goals of a strategic plan and exiting bankruptcy; and
19
WHEREAS, it is apparent to the Team that the City's Charter is a compendium of
20 conflicting provisions, a recipe for inefficiency and finger pointing given the overlapping of
legislative (policy making) and managerial responsibilities between the Mayor, Common
21 Council, City Attorney and City Manager; and
22
WHEREAS, it is unclear who is in charge and whom to hold accountable; and
23
WHEREAS, the bankruptcy judge has ordered the City to produce a Plan of Adjustment
z4 by May 30, 2015; and
25
WHEREAS, the City's economy continues its slide as an economic island in one of the
26 fastest growing regions in the country; and
27
WHEREAS, the Team feels that a change in decision making and operating practices
28 needs to occur immediately; and
2
1 WHEREAS, the Team recommends that a process should be put into place leading to a
new City Charter that draws from other successful cities' experiences; and
2
3 WHEREAS, the Team recommends that the four principals (Mayor, Common Council,
City Attorney and City Manager) should agree to a list of operating practices that are ubiquitous
4 in high functioning cities of a similar size; and
5 WHEREAS, the Team recommends that given the complex San Bernardino City
6 Charter, the City should seek an independent legal review to ensure the principles in the
Operating Practices can be effectuated on an interim basis until a wholesale Charter revision can
7 take place and be submitted to the voters; and
8 WHEREAS, the City has retained Renne Sloan Holtzman Sakai LLP to review the
9 Operating Practices to ensure that they can be effectuated without violating the Charter;
10 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
11 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
12 SECTION 1. The Mayor and Common Council has reviewed and considered the
13 recommendations of the Strategic Planning Core Team and hereby establishes and adopts the
14
Operating Practices for Good Governance, attached hereto as Exhibit "A" and by this reference
15
16 made a part hereof.
17
18
19
20
21
22
23
24 ///
25 ///
26
27
28
3
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ESTABLISHING AND ADOPTING OPERATING PRACTICES FOR
2 GOOD GOVERNANCE.
3
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
4
Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the
5
6 6th day of April, 2015,by the following vote, to wit:
7 Council Members: AYES NAYS ABSTAIN ABSENT
8 MARQUEZ X-
9
BARRIOS X
10
11 VALDIVIA X
12 SHORETT X
13 NICKEL X-
14
JOHNSON X-
15
MULVIHILL X _
16
17
Georg e nn 4anna, City erk
18
The foregoing Resolution is hereby approved this l d da of April 015.
19
20
21 R. Carey Da is, Mayor
22 City of San emardino
Approved as to form:
23 Gary D. Saenz, City Attorney
24
25 By
26
27
28
4
2015-71
OPERATING PRACTICES FOR GOOD GOVERNMENT
Common Council:
1) The role of the Common Council is legislative in character,which includes the power to set
policy,approve contracts and agreements and undertake other obligations consistent with the
Charter and Code,while deferring to the discretion of management and staff to choose the
appropriate means to achieve the Council's goals.
2) The Common Council will make the necessary decisions to expeditiously exit bankruptcy,as well
as develop and implement a strategic and tactical plan that ensures the City of San Bernardino's
success in the foreseeable future. To this end, it will comply with Judge Jury's order to produce
a confirmable Plan of Adjustment by May 30, 2015.
3) The Common Council will proved the resources to pursue the City's best interests in bankruptcy
court along with a robust communication plan to inform the citizenry of what is at stake.
4) The Common Council, as the elected body serving all of the residents of the City, shall perform
its duties and exercise its powers in a manner that serves the best interests of the entire City,
rather than any particular geographic area or special interest.
Mayor:
1) The Mayor will build consensus with the Common Council to create and implement a shared
vision and plan of implementation to restore the City's fiscal integrity.
2) The Mayor will establish and maintain partnerships and regional leadership roles to advance the
City's interest.
3) The Mayor will be the key"face" and chief spokesperson for the City.
4) The Mayor will be the presiding officer at meetings of the Common Council and will fully
participate in discussions.
5) The Mayor will, consistent with the separation of powers contemplated by a reasonable reading
of the City Charter, not interfere with the discretion of the City Manager in the exercise of his
powers and the performance of his duties under the City Charter.
6) The Mayor will work with the Common Council and City Manager to coordinate goal setting and
the performance evaluation of the City Manager.
Mayor and Common Council:
1) The Mayor and Common Council will jointly develop clear expectations of the City Manager and
hold him/her accountable by conducting performance evaluations at least every six(6) months.
2) The Mayor and Common Council will develop and implement norms(Code of Conduct)to guide
and direct their interactions and duties, including measures to hold one another accountable for
deviations from the goals and principles set forth in the City Charter, City Code and these
Operating Practices.
1
2015-71
3) Neither the Mayor nor the Common Council will interfere with the judgment and discretion of
management staff with respect to the duties that are typically managerial in nature, such as the
appointment, removal, and supervision of subordinate staff.
4) Neither the Mayor nor the Common Council will direct departmental staff(other than those in
their own departments).
City Attorney:
1) The City Attorney will focus his attention and resources on the performance of his duty as chief
legal officer to provide legal advice to the Mayor, Common Council and City Manager, and the
management of his office,and shall leave the formulation of policy and managerial matters
exclusively to those officials charged by the City Charter with those duties.
City Manager:
1) The City Manager will be the sole authority for managing City operations and directing City staff
in those departments under his supervision.
2) The City Manager will make business and policy recommendations based solely his or her
independent professional judgment and best practices in the best interests of the City, rather
than political considerations, and to this end shall strictly guard against interference with the
performance of his duties.
3) The City Manager will have both the authority and accountability to produce a confirmable Plan
of Adjustment for Common Council approval by May 30, 2015.
4) The City Manager will be responsible for implementing the Plan of Adjustment to ensure the
City exits bankruptcy as soon as possible.
5) The City Manager will be accountable for the implementation of Council goals and policy and
the overall performance of the City.
6) The City Manager will be responsible for ensuring that the Common Council and Mayor are fully
informed on all aspects of important emerging issues, and as part of that responsibility will fully
brief the Common Council at their Council Meetings on business matters before them.
Signed:
1
Date:
R. Cary D"'is, Mayor
Date:
Virgi a rqu
Memb r, Common Cou cil
Date: l
ito J. B ios
Member, Common Council
2
2015-71
Date:
John Valdivia
Mrr ommon unc
CMG . � Date:
Fred Shorett
Member, Commo Council L�
r� Date:
Nic —�
M C Mn 'I C unc
Date: -7
Rikke V hnson
mber o mon unc I 1�..
Jame Mulv ill
e Common Council
Date:
Gary D. Saenz
City Attorn y
Date: 14�
Allen J/,P6rker
City Manager
3