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Home My WebLink About02-18-1999 Minutes MINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING FEBRUARY 18, 1999 ECONOMIC DEVELOPMENT AGENCY BOARD ROOM This is the time and place set 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 held at 8:02 a.m., Monday, February 15, 1999, 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 the adjournment of said meeting held on Monday, February 15, 1999, 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 4:00 p.m., Monday, February 15, 1999 on or near the door of the place at which said meeting was held. The joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission was called to order by Mayor Valles at 9:05 a.m., Thursday, February 18, 1999, in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Mayor Valles; Council Members Estrada, Lien, McGinnis, Schnetz, Devlin, Anderson, Miller; Senior Assistant City Attorney Carlyle, City Clerk Clark, City Administrator Wilson. Absent: None. Mayor Valles indicated that for the first time in many years the City and Economic Development Agency were meeting jointly for a budget workshop so everyone could see how the two entities are doing holistically. CITY ATTORNEY PENMAN ARRIVED At 9:09 a.m., Senior Assistant City Attorney Carlyle left the conference table and was replaced by City Attorney Penman. Following some general announcements, Mayor Valles turned the meeting over to City Administrator Wilson. - 1 - 2/18/1999 DISCUSS & TAKE POSSIBLE ACTION - FISCAL YEAR 1998/99 MID- YEAR BUDGET REPORT CITY & ECONOMIC DEVELOPMENT AGENCY (1) City Administrator Wilson presented a brief review of the budget process and stated that the City would make its presentation first, followed by the Economic Development Agency. Each agency would cover the following items: 1) Mid-year review and fiscal year 1999/2000 budget projections, 2) Major issues for next year, and 3) Budget time lines. Citv Presentation Barbara Pachon, Director of Finance, submitted a staff report dated February 18, 1999, with an attached mid-year budget analysis/report. She reviewed with staff the Summary of Revenues, Expenditures, and Transfers and explained the deficits in the Cemetery, Baseball Stadium, EMS, and Refuse Fund Accounts. Ms. Pachon provided an overview of the General Fund, pointing out that the estimated fund balance for FY 1998/99 is a little over $1 million (which would be placed in a reserve fund). She noted that if the utility tax is done away with, $15 million would have to be cut from the City's budget. Mayor Valles stated that every effort is being made to have the City responsible for its own expenditures rather than depending on the Economic Development Agency to bail them out. Discussion ensued regarding the fact that the Fire Department would be over budget due to the high level of overtime; however. OSHA dictates certain constant manning requirements, so when a person is sick or off for any reason that position must be filled. Fire Chief Pitzer explained the staffing formula followed by the Fire Department versus other staffing methods, stating that the City uses the most cost- effective method for staffing 24-hour shifts and maintaining constant manning standards. COUNCIL MEMBER ANDERSON EXCUSED At 10:02 a.m., Council Member Anderson left the Council meeting. City Administrator Wilson reviewed the major issues relative to the fiscal year 1999-2000 budget such as the expiration of the COPS grant, a Stadium Fund deficit, reduced transfers from the Economic Development Agency, Year 2000 (Y2K) problems, and the Capital Improvement Program. - 2- 2/18/1999 It was noted that at the present time, staff projects a City budget deficit for FY 1999/2000 of approximately $3.3 million (based on the Mayor and Council putting another $1.1 million into the reserve account). Council Member Estrada stressed the importance of knowing what other entities are doing to prepare for the Y2K problems, especially those dealing with health and safety issues. She noted that it is important to protect both the City's coffers and the City's residents. Janis Ingels, Director of Management Information Services, stated that they are talking to hospitals and other agencies regarding Y2K, and that the County has a Y2K disaster exercise planned to take place in the fall. Finance Director Pachon distributed and reviewed with staff a document titled, Projected General Fund Balance (for) Fiscal year 1999-2000. RECESS MEETING At 10:24 a.m., Mayor Valles declared a ten-minute break. RECONVENE MEETING At 10:35 a.m., Mayor Valles reconvened the joint adjourned regular meeting of the Mayor and Council and Community Development Commission of the City of San Bernardino. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Mayor Valles; Council Members Estrada, Lien, McGinnis, Schnetz, Devlin, Miller; City Attorney Penman, City Clerk Clark, City Administrator Wilson. Absent: Council Member Anderson. DISCUSS & TAKE POSSIBLE ACTION - FISCAL YEAR 1998/99 MID-YEAR BUDGET REPORT CITY & ECONOMIC DEVELOPMENT AGENCY (1) City Administrator Wilson advised that one of the Mayor's priorities is to be more business friendly. To this end, two ideas are being considered-first, to reduce the area tax downtown, and second, a utility tax rebate policy. These ideas are being developed and fine-tuned and will be brought to the Council in the near future. Economic Development Al!encv Presentation Gary Van Osdel, Executive Director of the Economic Development Agency, spoke candidly to the council members and staff regarding the Agency budget. He stated that the Agency will not be turned around without some hard, hard decisions - 3 - 2/18/1999 being made by the Mayor and Council. He pointed out that outgo is much higher than income, caused by years of spending money on projects that bring nothing into the Agency. According to Mr. Van Osdel, within 16 months the Agency would no longer be able to make debt service. He stated that he wanted to let the Mayor and Council know how they got to this position, and that even with a quick shot of capital the problem would not go away. Mr. Van Osdel distributed a memorandum dated February 15, 1999, addressed to the Community Development Commission Chairperson and Members regarding the Mid-Year Budget Review, and a document titled, "Summary of EDA Projected Budget Expenditures and Revenues for 1999-2000 Fiscal Year." Barbara Lindseth, Agency Administrative Services Director, reviewed the Summary of EDA Projected Budget Expenditures and Revenues for 1999-2000 Fiscal Year. At this time it is projected that the Agency will have a $2,900,000 deficit for FY 1999/2000. MA YOR VALLES EXCUSED At 11:07 a.m., Mayor Valles left the Council meeting and Council Member Miller assumed the duties of Mayor Pro Tem. Mr. Van Osdel distributed a handout titled, "Economic Development Agency Recommendations to Commission for February 18, 1999 Workshop" stating that the Agency has two major goals-to build a surplus and to cease deficit spending. COUNCIL MEMBER ANDERSON RETURNED At 11:16 a.m., Council Member Anderson returned to the Council meeting, took her place at the conference table, and assumed the duties of Mayor Pro Tem. Council Member Estrada pointed out that within the last year the efforts made by the Agency to cut costs have been phenomenal, including a reduction in staff from 45 positions to 24 positions. Discussion ensued regarding what measures could be taken to cut the deficit and balance the budget. It was suggested that the Council and staff use the community survey to identify what is important to the citizens and what is not important. The Council pointed out that this endeavor would include programs, personnel and equipment. Some of the Council stated they would like some direction as to what staff wanted them to do as a body, and a decision must be made as to necessities and priorities of the City and the Agency. - 4- 2/18/1999 It was suggested that City Administrator Wilson and Agency Executive Director Van Osdel meet together to see what could be done to obtain the goals of both the City and the Agency. Council Member Estrada made a motion, seconded by Council Member Schnetz, and unanimously carried, that the Mayor and Council schedule a workshop for 4:00 p.m. on Tuesday, March 2, 1999, to consider City/Economic Development Agency budget priorities. ADJOURNMENT (2) At 11:50 a.m., the meeting was adjourned. The next joint regular meeting of the Mayor and Common Council/Community Development Commission will be held at 8:00 a.m., Monday, March 1, 1999, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RACHEL G. CLARK, CMC City Clerk BYU~.~ Linda E. Hartzel Deputy City Clerk No. of Items: 2 No. of Hours: 3 - 5 - 2/18/1999