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HomeMy WebLinkAbout06-15-1994 Minutes MINUTES MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ADJOURNED REGULAR MEETING JUNE 15, 1994 COUNCIL CHAMBERS This is the time and place set for an adj ourned regular meeting of the Mayor and Common Council of the City of San Bernardino from the adjourned regular meeting held at 9:00 a.m., Monday, June 13, 1994, 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, June 13, 1994, 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 8:45 a.m., Tuesday, June 14, 1994, on the door of the place at which said meeting was held. The adjourned regular meeting of the Mayor and Common Council of the city of San Bernardino was called to order by Mayor Minor at 8:05 a.m., Wednesday, June 15, 1994, in the Council Chambers of city Hall, 300 North "0" Street, San Bernardino, California. ROLL CALL Roll call was taken by city Clerk Rachel Clark with the following being present: Mayor Minor; Council Members Negrete, Curlin, Hernandez, Oberhelman, Devlin; Deputy City Attorney Roth; City Clerk Rachel Clark; City Administrator Shauna Clark. Absent: Council Members Pope-Ludlam, Miller. RECESS MEETING - CLOSED SESSION At 8:05 a.m., the Mayor and Common session for the following: (1) Council recessed to closed 1. Pursuant to Government Code section 54957.6: Conference with Labor Negotiator: Agency Negotiator: Shauna Clark, City Administrator Emolovee Oraanizations: San Bernardino Public Employees' representing General Employees; Association, San Bernardino Public Employees' representing Mid-Management Employees; Association, 1 6-15-94 International Association of Firefighters, Local 891, representing Fire Safety Employees; San Bernardino Police Officers' Association, representing Police Safety Employees. CLOSED SESSION At 8:05 a.m., Mayor Minor called the closed session to order in the conference room of the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Rachel Clark with the following being present: Mayor Minor; Council Members Negrete, Curlin, Hernandez, Oberhelman, Devlin; Deputy City Attorney Roth; City Clerk Rachel Clark; City Administrator Shauna Clark. Absent: Council Members Pope-Ludlam, Miller. COUNCIL MEMBER POPE-LUDLAM ARRIVED At 8:13 a.m., Council Member Pope-Ludlam arrived at the closed session. COUNCIL MEMBER MILLER ARRIVED At 8:15 a.m., Council Member Miller arrived at the closed session. ADJOURN CLOSED SESSION At 8:33 a.m., the closed session adjourned to the adjourned regular meeting of the Mayor and Common Council of the City of San Bernardino. RECONVENE MEETING At 8:36 a.m., Mayor Minor reconvened the adjourned regular meeting of the Mayor and Common Council of the City of San Bernardino in the Council Chambers of city Hall, 300 North "0" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Rachel Clark with the following being present: Mayor Minor; Council Members Negrete, Curlin, Hernandez, Oberhelman, Devlin, Pope-Ludlam, Miller; Senior Assistant City Attorney Barlow; City Clerk Rachel Clark; City Administrator Shauna Clark. Absent: None. FISCAL YEAR 1994/95 BUDGET DELIBERATIONS (2) In a memorandum dated June 13, 1994, Shauna Clark, City Administrator, presented the fiscal year 1994/95 budget, and stated that the City is facing many challenges in financing the City's current level of services. The impact of the recession, rising number of legislative mandates and stagnant development over the past three years have strained the City's fiscal condition. During 2 6-15-94 the past three years, the City has eliminated 84 positions, and through a combination of budgets cuts and revenue enhancements, significant budget deficits have been eliminated. The proposed general fund expenditure budget for fiscal year (FY) 1994/95 is $75,271,100, and estimated available funds are $74,437,400, which reflects an anticipated budget shortfall of $833,700 for FY 1994/95. Since the issue of the extension of the city-wide assessment district has not been resolved, specific recommendations to reduce the budget shortfall have not been provided. It is anticipated that on June 22, 1994, the matter of the city-wide assessment district will be resolved and specific recommendations will be conveyed at the Mayor and Council meeting scheduled for June 24, 1994. The proposed FY 1994/95 budget assumes the continuation of the existing City-wide Assessment District No. 994 (street lighting and street sweeping); however, it does not reflect the proposed expansion of the district to include graffiti removal and traffic signal maintenance. As part of the FY 1993/94 mid-year budget review held on February 21, 1994, a forecast was made relative to the City's FY 1994/95 budget which assumed revenue collections and department expenditures would remain at the same level as FY 1993/94 and $500,000 would be set aside for mandatory Charter Section 186 compensation. Based on these assumptions, it was anticipated that the general fund would realize a shortfall of $1,424,700 for FY 1994/95. However, the original shortfall has been reduced to $833,700, as a result of the following: a cost allocation plan which was recently completed identified an additional $461,000 which could be charged to various capital improvement projects; there was a reduction in the PERS rates for employees and it is anticipated that an additional $100,000 in sales tax would be received. state Budaet Impact. On January 7, 1994, the Governor released the proposed FY 1994/95 state budget. Although the proposed budget did not directly impact cities in terms of revenue reductions, there are many assumptions in the Governor's budget which makes the budget outlook for cities much more unpredictable than it may appear from the initial reading. The major assumption is that the Legislature and the Administration are considering the adoption of a budget based upon the receipt of $3-5 billion in revenues, which may not be forthcoming. Additionally, the budget would probably not include contingency funding for lawsuits which may be lost by the state and could produce an additional cost of $2 billion. If the Legislature adopts a budget based upon these factors, it would mean that the cuts made to local government would be kept 3 6-15-94 to a minimum. However, cities would be at a greater risk after the election in November. If the economy does not experience a significant turnaround, the state's budget would produce a crisis which could necessitate a special legislative session in December, and the cities could expect to be significantly impacted. However, if the economy were to recover strongly during the last quarter of 1994, the recovery would assist greatly in reducing the deficit. General Fund Revenues. The fiscal year 1994/95 revenue projections are very conservative. with the exception of the slight growth in sales tax revenue, no growth is assumed in any of the major revenue categories. For the past three years, collateralized mortgage obligation (CMO) monies have been used to fund capital purchases. However, the last year these funds were available was for FY 1993/94. The net impact for this revenue loss for FY 1994/95 is $900,000. The FY 1994/95 estimated available resources are $74,437,400, and assumes continuation of all existing city revenue sources, which includes estimated revenues of $66,670,000; $839,400 in net transfers to other funds and an estimated beginning fund balance of $2.98 million. The FY 1994/95 total resources represents approximately a five percent (5%) reduction over the beginning FY 1993/94 budget of $77,489,800. Revenue sources which have remained stagnant and most affected by the economic situation are development fees and property taxes. The amount anticipated for utility Users Tax reflects a reduction over FY 1993/94 because of a one-time transfer of revenues from the utility Users Tax Trust Fund. The Edison Company indicated a loss of a number of accounts in the City which would also have an impact on the utility Users Tax. Transfers to the general fund total $4,784,300, and transfers out of the general fund total $3,483,900, which results in a net transfer in the general fund of $1,300,400. Expenditures. The FY 1994/95 budget is $75,271,100, which includes transfers out, and represents a 0.7 percent increase over the beginning FY 1993/94 budget. As previously noted, department budgets were held at the same level as FY 1993/94. Allowances were made for mandatory internal service cost adjustments in certain departments. with the exception of the City Attorney's Office, which is proposing that two new positions be established within its budget, no other additions in personnel were presented. Charter section 186 requirements have been budgeted at $500,000, as well as the Fire Department final year sell back costs as determined by PERS. Proposition 172 revenues are budgeted at $372,000, and pursuant to Resolution No. 94-41, these funds are to be used for public safety services and not to be used to supplant the existing budget. The Police Department budget increased by $319,500 over the FY 1993/94 allocation, and the Fire Department's proportionate 4 6-15-94 share of the 800 MHz radio system is approximately $70,000. In addition, the Fire Department budget was increased by $60,000 to purchase disaster preparedness supplies. Combined, the items total $449,500 which offsets the proposed Proposition 172 revenues. Equipment costs in the general fund include the first year lease payment for 24 new police cars which totals approximately $200,000, ongoing clean up of underground storage tanks at a cost of $40,000, funding for the City business system computer software upgrade at a cost of $39,000, purchase of supplies to enhance the city's level of disaster preparedness, and the estimated first year lease payment for the 800 MHz voice-radio system at a cost of $575,000. Smaller miscellaneous equipment purchases have also been included in each respective department budget. Some of the key projects included in the proposed Capital Improvement Program are: $900,000 for resurfacing of streets throughout the City, funding for installation of intercepting sewer on "I" street from Mill to Fifth street, installation of Mt. Vernon Avenue master plan storm drain from the east branch of Lytle Creek Channel to Baseline Street and Mt. Vernon Avenue, widening Rialto Avenue grade crossing with Santa Fe Railroad between Rancho and Pepper Avenues to planned ultimate width, upgrade traffic signals at "E" and 34th streets, supplemental funding to finance the cost for widening the Kendall Drive and Cajon Boulevard bridges over the Devil's Canyon Creek Flood Control Channel and installation of a catch basin on Kendall Drive at Little Mountain Drive. In a memorandum dated June 15, 1994, Barbara Pachon, Director of Finance, stated that the departments' bottom line budgets have been adjusted to reflect a reduction in the fiscal year 1994/95 Public Employees Retirement System (PERS) rates. The savings realized from the lower PERS rates for fiscal year 1994/95 have been used to help balance the budget. Shauna Clark, city Administrator, provided an overview of the proposed fiscal year 1994/95 budget. Fred Wilson, Assistant City Administrator, provided an overview of the anticipated budget shortfall, revenue and expenditures; and stated that final action on the budget would not be taken until the Mayor and Council determines whether Assessment District (A.D.) No. 994 will be extended. He stated that the proposed fiscal year 1994/95 budget does not reflect the expansion of A.D. No. 994. Barbara Pachon, Director of Finance, provided an overview of the general fund revenues anticipated for fiscal year 1994/95, and answered questions concerning the proposed budget. 5 6-15-94 senior Assistant City Attorney Barlow answered questions regarding the findings of the Harvey Rose Management Audit of the City Attorney's Office. A discussion ensued regarding the proposed outline for the budget presentation. Assistant city Administrator Wilson provided an overview of the key capital improvement projects anticipated for fiscal year 1994/95. SENIOR ASSISTANT CITY ATTORNEY MORILLO ARRIVED At 9:12 a.m., Senior Assistant City Attorney Morillo arrived at the Council meeting and replaced Senior Assistant Deputy City Attorney Barlow. Discussion continued regarding the findings of the Harvey Rose Management Audit and the affect it would have on the proposed fiscal year 1994/95 budget. CITY ATTORNEY'S OFFICE Council Member Hernandez made a motion, seconded by Council Member Pope-Ludlam, that the City Attorney's Office budget be approved on a line-by-line item basis. A discussion was held regarding the motion. The motion carried by the following vote: Ayes: Members Negrete, Curlin, Hernandez, Pope-Ludlam. Nays: Members Oberhelman, Devlin, Miller. Absent: None. Council Council SENIOR ASSISTANT CITY ATTORNEY BARLOW ARRIVED At 9:22 a.m., Senior Assistant city Attorney Barlow arrived at the Council meeting and replaced Senior Assistant City Attorney Morillo. Council Member Hernandez made a motion, seconded by Council Member Pope-Ludlam, that the following positions be approved: (Note: There was no vote taken and the motion was subsequently amended. ) 1 - city Attorney 2 - Senior Assistant City Attorney 1 - Senior Deputy city Attorney 1 - Deputy city Attorney IV 1 - Deputy City Attorney III 1 - Deputy city Attorney II 1 - Paralegal I 6 6-15-94 Richard Morillo, Senior Assistant city Attorney, stated that the additional Deputy City Attorney IV and Legal Secretary I positions requested in the proposed fiscal year 1994/95 budget were recommended by the Harvey Rose Management Audit. Mr. Morillo further stated that an additional Paralegal position had been deleted and the City Attorney's Office reduced its proposed expenditure for outside litigation costs by $125,000, which was the projected savings the audit indicated could be realized with the hiring of the additional attorney and secretary. He stated that if the Council approves only the recommended positions within the motion, the Council should consider reestablishing the second Paralegal I position and increase the City Attorney's Office budget by an additional $125,000. A discussion was held regarding the staffing levels of the City Attorney's Office, and the proposed additional positions being requested for the fiscal year 1994/95 budget. Senior Assistant City Attorney Barlow explained that the duties of his position and his secretary's have not been reduced as a result of not providing services to the Economic Development Agency because the agency documents still require review by the City Attorney's Office. Discussion continued regarding the staffing levels of the City Attorney's Office. Council Member Hernandez amended his motion, Council Member Pope-Ludlam, that the secretarial included in the list of positions to be approved; following positions be approved: (Note: There was and the motion was subsequently amended.) seconded by positions be and that the no vote taken 1 - Administrative Operations Supervisor 2 - Senior Assistant city Attorney 2 - Legal Secretary I 1 - Legal Secretary II 1 - Paralegal I 1 - city Attorney 1 - Senior Deputy City Attorney 1 - Deputy City Attorney IV 1 - Deputy City Attorney III 1 - Deputy city Attorney II 1 - Executive Secretary Discussion ensued relative to the Legal secretary Trainee position. 7 6-15-94 Council Member Hernandez amended his motion, seconded by Council Member Pope-Ludlam, that the Legal Secretary Trainee position also be added to the list of secretarial positions to be included in the list of positions to be approved; and that the following positions be approved: (Note: There was no vote taken and the motion was subsequently amended.) 1 - Administrative Operations Supervisor 2 - Senior Assistant City Attorney 2 - Legal Secretary I 1 - Legal Secretary II 1 - Paralegal I 1 - City Attorney 1 - Senior Deputy City Attorney 1 - Deputy city Attorney IV 1 - Deputy city Attorney III 1 - Deputy City Attorney II 1 - Executive Secretary 1 - Legal Secretary Trainee Discussion continued regarding the staffing levels of the City Attorney's Office. Richard Morillo, Senior Assistant City Attorney, stated that he would prefer that an additional Legal Secretary I position be approved, and recommended the deletion of the Legal Secretary Trainee position. He stated that the City Attorney's Office had reduced its bottom-line budget by $12,000. Shauna Clark, City Administrator stated that the reduction of the $12,000 within the City Attorney's Office was realized through the reduction of PERS rates. Council Member Hernandez amended his motion, seconded by Council Member Pope-Ludlam, that the Legal Secretary Trainee position be deleted, that an additional Legal Secretary I position be added to the list of secretarial positions to be included in the list of positions to be approved; and that the following positions be approved: (Note: There was no vote taken and the motion was subsequently amended.) 1 - Administrative Operations Supervisor 2 - Senior Assistant City Attorney 3 - Legal Secretary I 1 - Legal Secretary II 1 - Paralegal I 1 - city Attorney 1 - Senior Deputy City Attorney 1 - Deputy City Attorney IV 1 - Deputy City Attorney III 1 - Deputy City Attorney II 1 - Executive Secretary 8 6-15-94 1 - Legal Secretary Trainee - DELETE Discussion continued regarding the staffing levels of the City Attorney's Office. Council Member Hernandez amended his motion, seconded by Council Member Pope-Ludlam, that the following positions be approved within the City Attorney's Office; and that the remaining positions be referred to the Personnel Committee: 1 - Administrative Operations Supervisor 2 - Senior Assistant City Attorney 3 - Legal Secretary I 1 - Legal Secretary II 1 - Paralegal I 1 - City Attorney 1 - Senior Deputy city Attorney 1 - Deputy city Attorney IV 1 - Deputy city Attorney III 1 - Deputy City Attorney II 1 - Executive Secretary 1 - Legal secretary Trainee - DELETE The motion carried by the following vote: Ayes: Members Negrete, Curlin, Hernandez, Pope-Ludlam. Nays: Members Oberhelman, Devlin, Miller. Absent: None. council Council Mayor Minor announced that he would consider vetoing the motion, and that he would announce his decision later in the meeting. COUNCIL MEMBER POPE-LUDLAM EXCUSED At 10:00 a.m., Council Member pope-Ludlam left the Council meeting. Discussion continued regarding the staffing levels of the city Attorney's Office, and ensued relative to the various line items within the City Attorney's Office budget. Council Member Hernandez made a motion, seconded by Council Member Negrete, that the city Attorney's Office budget be approved with the exception of Personnel Services. The motion failed by the following vote: Ayes: Council Members Negrete, Hernandez. Nays: Council Members Oberhelman, Devlin, Miller. Abstain: Council Member Curlin. Absent: Council Member pope-Ludlam. A discussion was held regarding the impact to the City if the extension of Assessment District No. 994 was not approved. 9 6-15-94 ADJOURNMENT (3) At 10:44 a.m., the adjourned regular meeting of the Mayor and Common Council adjourned. The next meeting will be held on Monday, June 20, 1994, at 8:00 a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. RACHEL CLARK City Clerk By: ~I V / .N ,v,-",A ~:1 A6U<t ::iu..zanna Cordova lXlputy City Clerk No. of Items: 3 No. of Hours: 2.45 10 6-15-94