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HomeMy WebLinkAbout11-26-1990 Minutes City of San Bernardino, California November 26, 1990 This is the time and place set for an Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino at the Regular Meeting held at 8:30 a.m., Monday, November 19, 1990, 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 November 19, 1990, 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 11: 30 a.m., on Tuesday, November 20, 1990, on the door of the place at which said meeting was held. The Adjourned Regular Meeting of the Mayor and Common Council was called to order by Mayor Holcomb at 3: 00 p. m., on Monday, November 26, 1990, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Krasney with the following being present: Mayor Holcomb; Council Members Reilly, Flores, Maudsley, Minor, Miller; City Attorney Penman; City Clerk Krasney, City Administrator Edwins. Absent: Council Members Estrada, Pope-Ludlam. READING AND WAIVING OF ORDINANCES City Clerk Krasney read the titles of all the ordinances on the agenda. Council Member Minor made a motion, seconded by Council Member Reilly, and unanimously carried, that further reading of all the ordinances on the agenda be waived. MC-760 - ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING CHAP'I'ER 3.72 TO THE MUNICIPAL CODE ENTITLED "USER FEES FOR EMERGENCY MEDICAL SERVICES," AUTHORIZ ING THE COLLECTION OF USER FEES AND MEMBERSHIP FEES FOR FIRE DEPARTMENT EMERGENCY MEDICAL SERVICES. FINAL (1) MC-761 - ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING SECTIONS 2.56.173 AND 2.56.175 TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO UNCONTESTED ELECTIONS. FINAL (2) MC-762 - ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 10.16.150 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO PARKING RESTRICTIONS. FINAL (3) 1 11/26/90 MC-763 - ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 5.04.525.B AND ADDING SECTION 5.04.525.G. TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO BUSINESS LICENSE FEES FOR BARBER SHOPS, MANICURISTS, SHAMPOOING AND HAIRDRESSING PARLORS. FINAL ( 4 ) MC-764 - AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION 8.90.040.F OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO THE APPLICABILITY OF THE MOBILE HOME PARK RENT STABILIZATION ORDINANCE TO CERTAIN RECREATIONAL VEHICLES. FINAL (5) Council Member Flores made a motion, seconded by Council Member Minor, that said ordinances be adopted. Ordinance Nos. MC-760, MC-761, MC-762, were adopted by the following vote: Ayes: Reilly, Flores, Mauds1ey, Minor, Miller. Nays: Council Members Estrada, pope-Ludlam. MC-763 and MC-764 Council Members None. Absent: COUNCIL MEMBER At 3:02 p.m., Council meeting and POPE-LUDLAM ARRIVED Council Member Pope-Ludlam arrived took her place at the council table. at the STATUS OF CITY TREASURER POSITION - CONTINUED FROM NOVEMBER 19, 1990 - POSSIBLE CHARTER AMENDMENT This is the time and place continued to for discussion regarding the status of the City Treasurer position and possible Charter amendments. (6 & S-l) City Administrator Edwins stated that following a suggestion that the Treasurer's Office and the Finance Department be combined, Fred Wilson, Assistant City Administrator, and Ray Salvador, Administrative Assistant to the Mayor, met with City Treasurer Craig Graves and Finance Director Andrew Green and prepared a report regarding the combination of the two departments. After that meeting, Mr. Graves announced that he was not going to run for re-election. A suggestion was then made that the position become part-time. Mrs. Edwins explained that she had met with Mayor Holcomb, Lorraine velarde, Executive Assistant to the Mayor, and Mike Williams, a CPA, who is also part-time City Treasurer with the City of Colton. Mr. Williams suggested that the Treasurer's Office and the Finance Department remain separate, as the Treasurer's main job was to look after the City's investment portfolio. City Administrator Edwins explained that the City Treasurer's position could be made part-time and the salary changed by resolution. If the two departments were combined, or 2 11/26/90 if qualifications for a City Treasurer are set forth, a Charter amendment would be required. Mrs. Edwins presented the following alternative resolutions prepared by the City Attorney's Office. RESOLUTION OF THE CITY OF AMENDMENT OF THE CHARTER OF TREASURER. (AI terna te "A") bond) SAN BERNARDINO PROPOSING AN SAID CITY RELATING TO THE CITY (Treasurer appointive; $250,000 RESOLUTION OF THE CITY OF SAN BERNARDINO PROPOSING AN AMENDMENT OF THE CHARTER OF SAID CITY RELATING TO THE CITY TREASURER. (Alternate "B") (Over Finance Dept.; $250,000 bond) RESOLUTION OF THE CITY OF SAN BERNARDINO PROPOSING AN AMENDMENT OF THE CHARTER OF SAID CITY RELATING TO THE CITY TREASURER. (Alternate "CO) (Part time) RESOLUTION OF THE CITY OF SAN BERNARDINO PROPOSING AN AMENDMENT OF THE CHARTER OF SAID CITY RELATING TO THE CITY TREASURER. (Alternate "D") ("Watch dog" responsibilities) Mrs. Edwins answered questions regarding the Finance Director's qualifications, stating that Mr. Graves has far more qualifications than are presently required under the Charter and has done an excellent job. Present qualifications for City Treasurer are that a person is 18 years of age and a registered voter in the City for 30 days. COUNCIL MEMBER ESTRADA ARRIVED At 3:07 p.m., Council Member Estrada arrived at the Council meeting and took her place at the council table. City Treasurer Graves answered questions, stating that he was concerned because of the low level of qualifications for a City Treasurer. He recommended that if the functions are combined with the Finance Department, that there be internal controls to insure that the cash operations do not mix with the accounting operations, that sufficient staff be provided and the establishment of built-in guidelines which would attract the most qualified candidates. Mr. Graves explained that the range of investments available to a municipality has increased over the years and requires a greater understanding of the investment process than in prior years. City Administrator Edwins suggested that one option is the combination of all duties of the Treasurer with the Finance Department except the investments portfolio, and having a part- time treasurer that would report to the Mayor and Council independently. Such a change would require a Charter amendment. 3 11/26/90 Finance Director Green answered questions, stating that the major impact of the addition of duties from the Treasurer's Office could be minimized, given the recommendations made in the report from Fred A. Wilson, Assistant City Administrator, dated November 21, 1990. He also stated that he did not see any opportunity for consolidation of positions in the Finance Department, as it would take all the present staff to absorb any new duties from the Treasurer's Office. City AdministraLor Edwins explained the urgency of a decision because nominations for the Primary Municipal Election to be held on March 5, 1991, open on December 6, 1990, and any candidate for the office of City Treasurer needs to be aware of what the position entails. Since filing fees are based on the first year's salary, City Clerk Krasney has to know if there is going to be any change in the salary. Mayor Holcomb explained that due to the urgency of the matter, all that is being asked of the Council at this time is to set the part-time salary by motion, so that the election process can proceed with full knowledge of the Treasurer's position. The various other options can be studied at a later time. A discussion ensued regarding the recommendation of part- time provisions and salary for the City Treasurer. City Administrator Edwins answered questions, stating that the Council can lower the salary without a Charter amendment to provide that the City Treasurer position be part-time. However, a Charter amendment would be required if that person is just to be in charge of the investment portfolio and have the other duties performed by the Finance Department. Finance Director Green answered questions, stating that with some changes and the realignment of duties with the Treasurer's staff, such as dog licensing, the Finance Department could absorb the duties of the Treasurer's office without any additional staff. City Administrator Edwins answered questions, stating that the Animal Control Department is presently handling most of the dog licensing through the mail and has requested complete control over the process. Dog licensing used to be done once a year, but now licenses can be purchased for two or three years. A discussion ensued regarding the input and accountability of the City Treasurer position. Concern was expressed regarding the independence of the office being threatened and the potential to oversee the activities of the government and particularly, the finances of the City. 4 11/26/90 Mayor Holcomb suggested that a consensus be reached before deciding all the procedures for enactment. He stated that the important thing is the selection of a qualified person, and suggested that the best way to do this is through the professional selection process rather than through the election process. He also recommended that there be an increase in the bond for the City Treasurer. Under the Charter, the Treasurer only has to have a $5,000 bond. Council Member Estrada made a motion, seconded by Council Member Miller, for discussion purposes, that the Finance Office and the Treasurer's Office be combined under the Finance Office. City Treasurer Graves answered questions regarding bond administration and staff supervision. Mr. Graves answered questions regarding the feasibility of a part-time position for the City Treasurer in view of a quickly changing bond market. He stated that if staff were available to execute the decisions once they were made, a well qualified person could do the job on a part-time basis, using today' s technology and computers, either at the office or in the home. Mr. Graves answered questions regarding the amount of time spent on investments and overseeing banking transactions. He stated that the part-time treasurer would be concentrating basically on investment of City funds, with some time spent in the banking relationship. He explained that the City Treasurer would still be the legal officer in terms of signing documents between the City and the bank, and that the Finance Department would take over the bond administration and special projects. Mr. Graves explained that many functions of the Treasurer's Office are not listed in the City Charter, but were being done because of time and tradition. He also stated that there are certain functions that the law requires be done by the Treasurer, such as any actions under the 1915 Act. Also, the Government Code provides that investments shall be done by the legislative body or may be delegated to the treasurer. City Administrator Edwins read Section 70 of the City Charter which sets forth the duties of the City Treasurer. She also explained the duties of the Finance Department, such as payroll, accounts payable, receipts from the cashiers and other departments. She explained how the two departments are inter- related in their duties. City Attorney Penman explained the Charter provisions, and stated that most of the duties performed by Mr. Graves are either required by law, duties that the Council has authorized, or that have been taken on without any objection. In the Charter itself, the Treasurer is made the custodian of the City's monies. 5 11/26/90 Originally, the job was part-time, but has been made full time over the years. Mayor Holcomb answered questions regarding the quality of candidates that could be attracted to a part-time position. He stated that some very well qualified candidates would be attracted to the part-time position. He pointed out that if a poorly qualified appointed person got the job, the person could be fired, but there would not be that option for an elected treasurer. Various options for Council action were enumerated: 1. Transfer all Treasurer's Department duties, except the investment portfolio, to the Finance Department; and provide that the Treasurer position become an elected part-time position; 2. Transfer all duties, except the investment duties, to the Finance Department with the provision Treasurer would be an appointed part-time position. duties of the Finance Director would be changed overseeing these additional responsibilities. portfolio that the Existing to include 3. That the Finance Department operate under the elected treasurer. Mayor Holcomb urged the Council to set the salary at meeting. He explained that after the election, if a qualified person is elected, the salary could be raised to the qualifications. this well suit City Administrator Edwins answered questions regarding the Treasurer's Office and explained that the only thing that can be changed without going to the voters is the salary. The voters would have to decide whether the treasurer will be elected or appointed. Mrs. Edwins stated that unless a Charter amendment is put on the March 5, 1991, ballot, probably the next opportunity would be in June, 1991. The motion to combine the Finance Department and the Treasurer's Department was withdrawn. Council Member Minor made a motion, seconded by Member Reilly, that an annual salary of $12,000 be set Treasurer of the City of San Bernardino. Council for the The motion carried by the following Members Estrada, Reilly, Minor, Miller. Flores, Maudsley, Pope-Ludlam. Absent: vote: Nays: None. Ayes: Council Council Members Mayor Holcomb stated that the duties included in the $12,000 salary are those functions that the Charter now requires. If 6 11/26/90 the individual who is elected demonstrates a higher degree of skill he will be given additional responsibility and will be paid more. DISCUSSION OF PROGRAM BUDGETS SOURCES This is the time and place set budgets and potential revenue sources. AND POTENTIAL REVENUE (7 ) for discussion of program City Administrator Edwins introduced a memorandum dated November 20, 1990, from Andrew Green, Director of Finance, that explained the years and areas in which budget deficits occurred. She explained that the last page of the report indicates that the fiscal year 1983-84 was the first year in which there was any deficit spending, and that was in the health fund. However, the General Fund had a reserve of 1.3 million dollars, so the City was ahead by $959,758. When Mayor Holcomb left office in 1985, the General Fund had $ 2,630, 662 in reserve. There had been deficit spending in the Emergency Fund, the Animal Control Fund and in Health Insurance, but at the end of the year the City was ahead $2,505,000. The budget that Mayor Holcomb inherited in 1989 included a deficit in the General Fund of $6,665,540. At that point the new Finance Director and City Administrator Julian started to repay the money to the General Fund. City Administrator Edwins stated that neither she nor any of the present Council were aware of this financial situation, which she confirmed by stating that she had taken minutes at all meetings during this period and the budget deficit was never addressed. She only became aware of the problem after assuming the position of City Administrator in July, 1990. Finance Director Green answered questions regarding the deficit in the Animal Control Fund. He explained that the deficit started in 1984, and continued through the next few years, increasing considerably in the 1987-88 budget because the research sale fees were eliminated. Mr. Green explained accounting and financial procedures used to lower the deficit. City Administrator Edwins explained that she had asked Finance Director Green to put the report together at this time, rather than at budget time, to provide the information to the Council, but recommended that any decisions be postponed until the midyear budget review. She emphasized the fact that action has begun to correct the deficit situation. Mayor Holcomb emphasized the fact that a serious financial problem exists and that it should be dealt with by finding ways to either cut costs or enhance revenue. 7 11/26/90 A discussion ensued regarding ways to reduce the deficits in various accounts. City Attorney Penman explained that a recent study indicated that in earlier years, funds had been earmarked for certain purposes but had been spent on something other than the intended purpose. He stated that his office had begun an inquiry into the situation, which thus far completely exonerates the present Council and Mayor from any wrongdoing, as the decision to use the money earmarked for another use was made several years previously. It was clear that this information had been kept from the present Council. Mayor Holcomb commended City Administrator Edwins and Finance Director Green for their presentation of the current financial situation and bringing the problem out into the open. COMMUNITY DEVELOPMENT COMMISSION/REDEVELOPMENT AGENCY At 4:35 p.m., the Adjourned Regular Meeting of the Community Development Commission/Redevelopment Agency was called to order by Chairman Holcomb. RECESS MEETING - CLOSED SESSION At 4:35 p.m., Council Member Estrada made a motion, seconded by Council Member Miller and unanimously carried, that the meeting be recessed to closed session for the following: to give instruction to the City/s Commission/s the purchase of property pursuant to Government 54956.8; negotiator on Code Section to consider personnel matters pursuant to Government Code Section 54957. CLOSED SESSION At 4:35 p.m., the closed session was called to order by Mayor Holcomb in the conference room of the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. (8, R-1) ROLL CALL Roll call was taken with the following being present: Mayor Holcomb, Council Members Estrada, Reilly, Flores, Maudsley, Minor, pope-Ludlam, Miller; City Attorney Penman, City Clerk Krasney. Absent: City Administrator Edwins. Also present: Ken Henderson, Director, Development Department; Robert Temple, Acting Executive Redevelopment Agency; Dennis Barlow, Sr. Assistant City John Hoeger, Redevelopment Manager; Lorraine Velarde, Assistant to the Mayor. Community Director, Attorney; Executive 8 11/26/90 CITY ADMINISTRATOR EDWINS ARRIVED At 5:00 p.m., City Administrator Edwins arrived at the closed session. KEN HENDERSON, ROBERT TEMPLE, JOHN HOEGER EXCUSED At 5: 05 P . m. , Ken Henderson, Director, Communi ty Development Department, Robert Temple, Acting Executive Director, Redevelopment Agency, and John Hoeger, Redevelopment Manager, left the closed session. ADJOURN CLOSED SESSION At 5:20 p.m., the closed session adjourned to the Adjourned Regular Meeting of the Mayor and Common Council in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RECONVENE MEETING At 5:20 p.m., the Adjourned Regular Meeting of the Mayor and Common Council reconvened in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Krasney with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; City Attorney Penman, City Clerk Krasney, City Administrator Edwins. Absent: None. ADJOURN MEETING At 5:25 p.m., Council Member Minor made a motion, seconded by Council Member Flores and unanimously carried, that the meeting be adjourned to 8:30 a.m., December 10, 1990, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. I/~' "~ :.i'~.1:... ,G, , City Clerk ,~ No. of Items: 9 No. of Hours: 2.5 9 11/26/90