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HomeMy WebLinkAbout06-07-2005 MinutesSan CITY OF SAN BERNARDINO 300N. "D"Street San Bernardino, CA 92418 Website: www.sbcity.org MINUTES MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO Mayor Judith Valles Council Members: Esther Estrada Susan Longville Gordon McGinnis Neil Derry Chas Kelley Rikke Van Johnson Wendy McCammack JOINT ADJOURNED REGULAR MEETING JUNE 7, 2005 ECONOMIC DEVELOPMENT AGENCY BOARDROOM 201 NORTH "E" STREET SAN BERNARDINO. CA 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 of the Mayor and Common Council and Community Development Commission held on Monday, June 6, 2005, at 1:30 p.m. in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. 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 Valles at 3:21 p.m., Tuesday, June 7, 2005, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. Roll Call Roll call was taken by City Clerk Clark with the following being present: Mayor/Chairman Valles; Council Members/Commissioners Derry, Kelley, McCammack; City Attorney Penman, City Clerk Clark, City Administrator Wilson. Absent: Council Members/ Commissioners Estrada, Longville, McGinnis, Johnson. Mayor Valles advised that because a quorum was not present, they would begin the proceedings as a committee of the whole. She stated that two items were continued from the June 6, 2005, Council meeting, but no action would be taken on those items until a quorum was present. 1 06/07/2005 1. Budget deliberations - Fiscal Year 2005/06 - discuss and take possible action concerning proposed City and EDA budgets Mayor/Chairman Valles stated that presentations would be made by Barbara Lindseth, Director of Administrative Services for the Economic Development Agency (EDA), and Barbara Pachon, Director of Finance for the City, followed by a presentation by City Administrator Fred Wilson on what the next steps of the process would be. Economic Development Agency Barbara Lindseth, Director of Administrative Services, distributed the following materials and provided an overview of the information contained therein: • Economic Development Agency, City of San Bernardino, 2005-2006 Fiscal Year Budget, Combined - Summary, Redevelopment Project Area/Federal Grant Programs/Low-Moderate Housing Fund (tan sheets) • City of San Bernardino, Cash Flow Analysis - Tax Increment, Combined Project Areas, As of May 1, 2005 (light blue sheets) • Economic Development Agency, City of San Bernardino, Bond Proceeds, As of April 30, 2005 (yellow sheets) • Economic Development Agency, City of San Bernardino, Cash Flow Analysis, Low and Moderate Income Housing Fund For Fiscal Year 2005-2006 - As of May 1, 2005 (light green sheets) • Economic Development Agency, City of San Bernardino, Cash Flow Analysis - Tax Increment, State College Project Area As of May 1, 2005 (dark blue sheets) • City of San Bernardino, Economic Development Agency Memorandum to the Chairperson and Community Development Commission Members, dated May 25, 2005, from Barbara Lindseth, titled, "Proposed Economic Development Agency Budget" • City of San Bernardino, Economic Development Agency 2005-2006 Budget. Ms. Lindseth advised that the Agency's overall budget for Fiscal Year 2005-2006 is $65 million versus $55 million for Fiscal Year 2004-2005. She stated that the difference is that there are some carryovers in the low -mod housing funds of over $7 million and the tax increment has increased by $2.2 million. Ms. Lindseth advised that because of this year's Education Revenue Augmentation Fund (ERAF), they would not have a large surplus. 2 06/07/2005 City Barbara Pachon, Director of Finance, thanked Joe Soto of the Public Services Department for his help with the design of the budget document cover. She distributed the following document and provided an overview of the information contained therein: • City of San Bernardino Preliminary Detail Budget, Fiscal Year 2005-2006. Ms. Pachon stated that total estimated expenditures for the General Fund is just over $125 million with a budget excess of $15,000, assuming that the budget reserve is kept at its current level of $6,398,200. She stated that in the last projection presented to the Mayor and Council, the City had an estimated shortfall of about $3 million, but by making an adjustment now to the two-year agreement to help balance the State budget, the City will start receiving its full revenues back, which will then help offset the $3 million adjustment. Ms. Pachon stated that the City has about $4 million worth of growth proposed in revenue, with sales tax bringing in about $2 million more this year, which is about a 6 to 7 percent increase. City Administrator Wilson stated that this is a good budget because it is a balanced budget, which is a refreshing change from previous years. He stated that they have probably received $4-5 million in requests from departments that will come to the Council at the next budget workshop, and those requests range from new positions to funding for landscape contracts to roof repairs. He stated that even though there is some money in the general government account, it would not begin to address some of the challenges the City must confront. Mr. Wilson stated that the Mayor initially talked about using that money to fund four police officer positions and two new positions in the Development Services Department, but she has agreed to defer action on that until the Council has had a chance to look at the requests from the departments and staff has had an opportunity to receive input from the Council on any other issues they may have between now and the next budget workshop. Mr. Wilson stated that in January 2005, the Mayor, Council, and Department Heads met at Cal State San Bernardino and they agreed upon a set of goals they will follow as their guiding document for the upcoming years. These goals are: • Public safety • Strong financial security for the City and EDA • Image enhancement and quality of life • Adequate staffing levels • Signature development projects • More effective community beautification • Streamlining City operations. Council Member/Commissioner Estrada asked if it was safe to say that the City would not be having any layoffs. 3 06/07/2005 Mr. Wilson stated that there are no proposals for cutbacks or reductions in services at the present time. He stated that the Council will have to look at the one-time adjustments that may not be there next year in order to get a good picture of what the City is facing for the next couple of years. With the anticipated funds from the sale of the City's refuse roll -off operation and the Pension Obligation Bonds (POBs), Council Member/Commissioner Estrada asked if the Council could dedicate a percentage of those numbers to public safety, understanding that some of that may be one-time money coming in. She suggested that maybe there is a way of investing the money and counting on the return on the investment in terms of funding those expenses on an ongoing basis. Mr. Wilson stated that they are still working with the Ways and Means Committee to structure the Pension Obligation Bond issue. He stated that they don't have the details yet, but once they have the numbers they will be in a better position to answer that question. Ms. Pachon stated that it would be a budget amendment and the City Council would direct Finance to put the money into a budget reserve, appropriate it, use it, or budget it for a specific project. Council Member/Commissioner Estrada stated that the Council should be prepared to say how the money should be spent. She recommended that Council Members be as conservative as they can be and should adopt the budget, but they should have a plan. Council Member/Commissioner McCammack stated that the City really needs 15 more police officers, based on information received from the Police Department. She stated that without thinking about any revenues generated from the roll -offs, and in light of the discussion on the POBs and the direction of the Council to at least go forth with the validation of the POBs, they have set the stage for some yearly savings of payments to PERS, and that yearly savings is going to approximate somewhere between six and ten officers. Ms. McCammack stated that if the City could make a commitment by September of this year, we would know one way or the other about the POBs, and would have enough money to fund six more officers with that one funding mechanism alone. Then, by January 2006, the City could commit to hiring at least five more. Ms. McCammack stated that the goal, "image enhancement and quality of life" goes a long way in the reduction of crime, which means that your police force is not as taxed. She stated that there are potentials for additional amounts of money that have not been obligated through EDA, and in the past, the City has spent additional monies on demolition and code enforcement through EDA. She felt that the City needs to step up those efforts and there should be agreement that building affordable housing at this point in time has not been the consensus of this Council. 4 06/07/2005 City Attorney Penman stated that it had been confirmed that this budget did not contemplate any layoffs and asked if that included temporary and part-time employees in Refuse and other departments. Mr. Wilson stated that there are no layoffs and no "golden handshakes" contemplated, but there are some requests from departments to increase funding for some part-time positions the Council may have to consider. Mr. Wilson stated that between now and next week they were going to refine the list of requests from the departments, and he added that he would appreciate receiving feedback from Council Members and then at the next meeting they will present the list from the departments as well as any additional information they may have received and they will continue their discussions. Mr. Wilson stated that they are in the process of finalizing the Capital Improvement Program, but he wasn't sure it would be ready in the next two weeks and advised that they may have to set another meeting to discuss it. 2. Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the Mayor to approve an agreement with WL Covenant 88 Associates, LLC, a Delaware Limited Liability Company, for the dedication and improvement of a 4.7-acre park (Verdemont Heights Hilltop Park) at the northeasterly corner of Palm Avenue and Irvington Avenue. (Continued from June 6, 2005) Due to the fact that a quorum was not present, Mayor/Chairman Valles continued this matter to the Council/Commission meeting of June 16, 2005. 3. Resolution of the Mayor and Common Council of the City or San Bernardino awarding a contract to S. Parker Engineering, Inc., for construction of pocket park at the southeast corner of Norma Lane and Stephanie Avenue (PR04-23), per Plan No. 11126. (Continued from June 6, 2005) Due to the fact that a quorum was not present, Mayor/Chairman Valles continued this matter to the Council/Commission meeting of June 16, 2005, 5 06/07/2005 4. Adjournment At 4:57 p.m., the meeting was adjourned to 3:00 p.m., Thursday, June 16, 2005, in the Economic Development Agency Boardroom, 201 North "E" Street, for budget deliberations. No. of Items: 4 No. of Hours: 2 RACHEL G. CLARK City Clerk BY-Iw+ dt a. aCJ� LlAtcci 1) Linda Sutherland Deputy City Clerk 6 06/07/2005