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ClTY OF SAN BERNaDINO - REQUEST iaR COUNCIL ACTION
From: Counci lwoman Esther Estrada
Subject: Ways & Means Committee Report
Dept: Council Office
D~e: May 11, 1988
Synopsis of Previous Council action:
Recommended motion:
That minutes of Ways & Means Committee meeting held May 9,
1988 be received and filed.
Q.
Contact parson:
Phil Arvi7.n
Phonal
':lR4-I:\?nR
Supporting data aUachad:
Yes
Ward:
N/A
FUNDING REOUIREMENTS:
Amount:
N/A
Sourca: (ACCT. NO.)
(ACCT. DESCRIPTION)
Finance:
Council Notl.:
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WAYS & MEANS COMMITTEE
MAY 9, 1988
ATTENDEES:
Councilwoman Esther Estrada - Chairwoman
Councilman Jess Flores
Councilwoman Norine Miller
Treasurer - Craig Graves
Acting City Administrator - Jim Robbins
Depty. City Admin./Development - Jim Richardson
Asst. to City Administrator - Fred Wilson
Deputy city Attorney - Cynthia Grace
Public Works Director - Roger Hardgrave
RDA Deputy Director - Sandy Lowder
Assistant city Engineer - Gene Klatt
Council Executive Assistant - Phil Arvizo
Mayor's Executive Assistant - Richard Bennecke
Chamber of Commerce: Les Debritz, Gil Snyder: David
Porter, Pat Caffrey, Jim Seville, Laurie Aldern
Central City Parking Place Commission: George Webster:
Wallace Green; Art Lindholm; Erven Tallman
1. GENERAL OBLIGATION BONDS/CAPITAL IMPROVEMENT PROGRAM
- The Committee recommended that the General Obligation Bond
issue be presented to the full Council to determine whether
there is majority support. The Acting City Administrator
will provide a memo at the May 16 meeting with this item
explaining the needs, effects and what a $110 million GOB
would mean to the citizens of the city. If the Council votes
to go ahead, the Committee would recommend a working com-
mittee with staff, representatives from each ward, Mayor'S
representative and one or two Councilmembers to establish a
priority list of projects to be recommended.
2. PUBLIC UTILITIES RATE CHANGE - GTE REQUEST FOR RATE
INCREASE - The attached letter from General Telephone was
read into the record and the item was received and filed.
3. TRAFFIC SYSTEMS FEE - $12 PER TRIP, GENERATED BY NEW
DEVELOPMENT OR REDEVELOPMENT - The Committee recommended
approval of the $12 fee. The documentation will be presented
to the Mayor and Council on the June 6 Agenda.
4. VISITORS/CONVENTION BUREAU - The Committee received
presentation from staff and Chamber of Commerce members. The
Committee continued the item as recommended by the city Trea-
surer that they first review the 88-89 budget.
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5. CONSIDERATION OF ANNUAL PAYBACK ARRANGEMENT ESTAB-
LISHED FOR PARKING DISTRICT SECONDARY ASSESSMENT ROLL-
Councilwoman Miller absented hereself due to conflict of
interest. The Committee recommended referral to the full
Council without a recommendation after receiving information
from staff and several members of the Central City Parking
Place Commission and property owners. This item will be
placed on the June 6 Council Agenda. (Attached are options
presented by staff.)
Meeting adjourned.
~-.::J -
Councilwoman Esther Estrada
Chairwoman
Ways & Means Committee
EE:ej
Attch. (2)
o
am
"
Genersl Telephone Company
of California .
Post Office Box 641
San BernardinO, California 92402.0641
800 482-6711
May 6, 1988
In Reply Refer To
A11.1A4
Esther Estrada, Councilwoman and
Chairman Ways and Means Committee
City of San Bernardino
Reference: GTE RATE CASE 1988
RATE CASE CHRONOLOGY
August 1986
GTE California tendered a notice of intent to file a general rate case
using 1988 as a test year.
January 1987
GTE California filed general rate case which requested:
Revenue reduction of $14 million
December 1987
The California Public Utilities Commission ordered an interim order
effective January 1988 to reduce revenues by $122.7 million.
GTE California has asked the CPUC to reduce our total revenue in
1988... which means that many of our customers can look forward to
lower phone bills. The effect of our request on the individual customer
will really depend on how that person used the telephone.
Three factors have combined to make this request possible:
A. The massive infusions of new technology that we've been
making into our network have not only greatly improve'
the quality of our service. They have also played
a major role in reducing our cost of operation.
B. The drop in interest rates has helped to make this request
for reducted revenues possible.
C. The effect of the new tax law has reduced the company's
level of tax expense.
Now that competition has entered the telecommunications industry,
the subsidies that were once used to keep flat rate service artifically
low are swiftly disappearing. The changes make it necessary to base the
prices of our services more closely on our costs for providing those
services.
A part of GTE Corporation
"':1...
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Robert L. Traister - 0 Rate Case 1988
Page 2
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Our costs to provide flat rate residential service is approximately
$33 per month.
I hope the information I have provided has helped the ways and means
committee better understand the 1988 Rate Case now pendi~g before
the CPUC.
I apologize for not being available for this meeting, however, if I
can be of further assistance please contact me at 884-4390.
B~!~~;b
District Manager -
Community Relations
RLT:sh
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F.~ruary 18, 1988*
OUTLINE AND TIMETABLE FOR PLACING A CITY
GENERAL OBL I GAT I ON BOND I SSUE ON
JUNE 7, 1988 OR NOVEMBER 8, 1988
BALLOT AND ISSUING GENERAL OBLIGATION
BONDS FOLLOWING A SUCCESSFUL ELECTION
Statutory provisions authorizing the issuance of City general obligation bonds
are found in the Government Code. Statutory provisions governing the conduct of City
general obligation bond elections are found in the Election Code.
June 7. 1988
Election
1. Not later
than March 3.
1988 [This
date must be set
to allow for
sufficient time
for the adoption
of the ordinance
de.cribed in
n1.8ber 3.]
BOND ELECTION
November 8. 1988
Election
Not later than
August 4. 1988
[This
date must be
s.t to allow for
sufficient time
for the adoption
of the ordinanc.
described in
number 3.]
Resolution Initiating Bond El.ction
Proc.edinqs
Bond .lection proceedings are
begun when two-thirds of the City
Council (or other legislative body)
pass a resolution determining that the
public interest and/or necessity
demand the acquisition. construction
or completion of any municipal
improvement. "Municipal improvement"
includes c.rtain sp.cifi.d imp~v.ments and
.other works. prop.rty or structur..
nec.ssary or conveni.nt to carry out the
object..
. Pl.... not. that this is tiIM dated info~tiOl1. Thi. outline .hou1d
not be r.lieis upon after the date .tated above. Pleas. contact an
Orrick. Herrington , Sutcliff. public finance attorn.y r.garding
applicable statutory updat... '
Copyright Orrick. H.rrington , Sutcliff.. 1988
.71Sa
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June 7. 1988
Election
z.
Not later than
March 3. 1988
[This date is
set as a resul t
of the date in
item 3.]
3.
Not later than
March 11. 1988
[This date is the
deadline for
adoption of the
resolution
requestinq
consolidation of
the election.
That resolution
and this ordinance
must be adopted
on the same day.
See number 5.
below. ]
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November 8. 1988
Election
Not later than
Auqust 4. 1988
[This date is
set as a result
of the date in
item 3.]
Not later than
August 12. 1988
[This date is the
deadline for
adoption of the
resolution
requestinq
consolidation of
the election.
That resolution
and this ordinance
must be adopted
on the same day.
See number 5.
below. ]
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purposes. and powers of the City." Article
XIIIA of the California Constitution (as
amended by Proposition 46) further limits
the use of bond proceeds to acquisition or
improvement of land and buildinqs. Bond
proceeds will not be available for
furnishinqs or equipment.
Introduction of Ordinance
At a reqular meeting of the City
Council at least 5 days before such
ordinance is to be voted upon. an
ordinance callinq for the submission of the
qeneral obligation bond proposition to the
voters must be introduced.
Ordinance Callinq Election
An ordinance callinq the election
must be passed by a two-thirds vote of
the City Council at a reqular meetinq
subsequent to the meetinq where the
resolution in item 1 is passed. The
ordinance will take effect upon
passaqe.
The ordinance must state all of
the followinq:
(a) The purpose for issuinq the bonds;
(b)the estimated cost of the public
improvement (s ) ;
(c) the principal amount of the proposed
issue;
(d) the maximum rate of interest to be paid
(not to exceed twelve percent). which is to
be paid annually the first year and
semiannually thereafter;
(e) the date of the election; and
(f) the manner of holding the election and
the procedure for votinq for or aqainst the
proposition.
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June 7. 1988
Elec~ ~on
November 8. 1988
Election
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The ordinance may also state that the
estimated cost stated therein includes
costs of construction period interest (if
the improvements are revenue producing).
legal. printing. and miscellaneous other
fees. The City is then authorized to spend
bond proceeds for these purposes.
Date of Election: The election must be
held on an established election day unless
the City is a charter City with election
dates specified in its charter.
Established election days are (3 each
year) :
l(a). The second Tuesday in April (even
numbe red yea rs ) ;
lIb). The first Tuesday after the first
Monday in March (odd numbered years);
2. The first Tuesday after the first
Monday in June; and
3. The first Tuesday after the first
Monday in November.
Manner of Holding the Election: If the
election is consolidated with another
election. the bond election ordinance may
provide that the precincts. polling places.
and officers of election shall be the same
as those set forth in the ordinance or
notice for the election with which the bond
election is consolidated. The bond
election ordinance must refer to the
ordinance or notice to which it refers
specifically.
Debt Limit: The principal amount of the
City'. general obligation bonds cannot
exceed in the aggregate one-quarter of 15%
of the assessed value of all real and
personal property in the City.
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June 7. 1988
Ele::,; ion
4. No,; later than
Ka:-ch 11. 1988
4715a
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November 8. 1988
Election
Not later than
August 12. 1988
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Consolidatinq an Election
The election may be consolidated with
any other election scheduled for the same
day and must be consolidated with a
statewide election scheduled for the same
day. Statewide elections are held'on the
first Tuesdays after the first Mondays in
June and November. respectively. in even
numbered years. Consolidations are to be
effected by (ollowing Election Code '
Sections 23300 et seq.
To consolidate an election with another
local election. the City Council must adopt
a resolution requesting consolidation. The
resolution requesting consolidation must be
adopted at the same meeting where the
ordinance calling the election is passed.
At the time of adopting the consolidation
resolution. but at least 88 days before the
election. the City Council must file copies
of the resolution requesting consolidation
(which must contain the language of the
ballot proposition) and the bond election
ordinance with the governing body of the
jurisdiction with which the election will
be consolidated.
For consolidation with a statewide
election. the county board of supervisors
is the governing body with which the
resolution and ordinance must be filed.
The county clerk should also receive copies
of the resolution and the ordinance.
To effect the consolidation. the
governing body of the jurisdiction with
which the election will be consolidated. or
the county board of supervisors. as
applicable. must order the consolidation.
If a statewide special election is
called less than 88 days prior to the date
of such special election. the City Council
may call a special election to be
consolidated with the statewide special
election if the call is issued within four
days of the proclamation or the effective
date of the statute calling for the
statewide special election.
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June 7. 1988
Election
5. First publication
not later than
~pril 11. 1988
6.
[This deadline
depends upon the
time needed by the
City Clerk to have
the arquments
printed. )
7.
(This deadline
depends upon the
t~ needed by the
CitJ' Attorney to
draft the analysis
and the time needed
by the clerk to
print the analysis.)
4715a
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November 8. 1988
Election
First publication
not later than
September 9. 1988
[This deadline
depends upon the
time needed by the
City Clerk.to have
the arquments
printed.) .
(This deadiine
depends upon the
ti.. needed by the
City Attorney to
draft the analysis
and the tilll8
needed by the
clerk to print
the analysis.)
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Publication or Publication and Posting
of Ordinance Calling Election
~ copy of the ordinance must be
published either: (al once a day for at
least seven days in a newspaper published
at least six days a week in the City; or
(b) once a week for two weeks in a
newspaper published less than six days a
week in the City. The first notice shall
be published no later than 50 days before
the election. If no such newspaper is
published in the City. the ordinance must
be both (a) posted in three public places
in the City for two consecutive weeks and
(bl published in a newspaper published in
the nearest city.
Set Deadline for Filing Ballot
~rguments and Rebuttals
The City Clerk shall set a
reasonable time for submission of
ballot arquments. Notice of such deadlines
should be published once in a newspaper of
general circulation in the City. The
arquments must conform to the requirements
of and are to be chosen pursuant to the
Election Code.
If the City has adopted certain
provisions relating to rebuttal arquments.
the City Clerk must mail a copy of each
direct arqument to the authors of the
contrary arqument. The deadline for filing
rebuttals is ten days after the deadline
for filing direct arguments.
City Attorney's Analysis of Bond Issue
The City Council may direct the
City Clerk to forward a copy of the
proposed bond issue to the City
Attorney. who then must prepare a 500
word or less impartial analysis of the
measure. The City Attorney's analysis must
be printed in the ballot pamphlet.
preceding the ballot arguments. Language
specified in Section 5011 of the Election
Code must be printed immediately below the
analysis .
5
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June 7. 1988
Elec~ion
8.
['!!'.is deadline
de?ends upon the
t~~e needed by the
City Clerk to have
the election
ma~erials printed.]
9.
[nis deadline
de ?ends upon the
ti:2le needed by
the City Clerk to
ha~e the election
materials printed.]
10. Not later than
April 28. 1988
Ul5a
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November 8. 1988
Election
[This deadline
depends upon the
time needed by the
City Clerk to have
the election
materials printed.]
Period of Public Examination
At least ten days before the
election materials (i.e.. sample
ballot. ballot arguments. et=.) are
to be printed. copies of all such materials
must be made available for public
inspection in the City Clerk's office.
During this ten-day period. the City Clerk
or any voter in the City may seek a writ of
mandate to have any or all of the election
, materials amended or deleted.
[This deadline
depends upon the
time needed by
the City Clerk to
have the election
materials printed.]
Send Election Materials To Printer
The City Clerk shall have the
necessary ballots printed and shall
furnish the election offices with the
necessary supplies.
Not later than Mail Sample Ballot and Voter
September 29. 1988 Pamphlet. Including Tax Rate Statement
\. I, --7 Not more than 40 nor less than 10 days
0.1\Kf- '\-'l before the election. the City Clerk (or. if
{I(li:. \(11 the election has been consolidated. the
(~~ County Clerk) must mail to each registered
voter: a sample ballot. a notice
describing the polling place and time of
the election. a tax statement. and a voter
pamphlet.
All official publications and any
ballot pamphlet prepared addressing the
bond issue must include a tax rate
statement. The tax rate statement should
include the best estimate from official
sources as to all of the following:
(1) The tax rate (per $100 of assessed
valuation on all property to be taxed)
needed to fund the bonda for the fiscal
year following the initial sale of bonds;
(2) the tax levy needed to fund the
bonds for the fiscal year following the
final sale of bonds if the bonds are issued
in series and the year in which the rate
will apply; and
6
June 7. 1988
Elect ion
11. Not later than
Ju.~e 9. 1988
Not later than
July 5. 1988
t715a
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November 8. 1988
Election
Not later than
November 10. 1988
Not latel' than
Decembel' 5. 1988
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(3) the highest tax rate needed to .fund
the bonds and the fiscal year(s) in which
that l'ate is expected to occur.
The statement may also describe any
intent to use revenues other than ad
valorem taxes to fund the bonds and the
effect such a policy would have on the tax
rate(s) expected to be levied.
If the proposition is approved by
two-thirds of the electors voting. bonds
may be issued.
Canvass of Retul'ns and Statement
and Resolution of Results
An official canvass shall be conducted
by the County Clerk commencing no latel'
than the first Thursday following the
election at any public place as the County
Clel'k designates. The canvass shall be
conducted by opening the returns and
determining the vote fol' and against each
measure and declaring the result thel'eof.
The County Clel'k shall prepare a
cel'tified statement of the results of
the election and submit it to the City
Council within 28 days of the election.
The statement of result shall show:
(a) the total number of ballots cast.
(b) the number of votes cast at each
precinct fol' and against each meaSUl'e
(c) the total numbel' of votes cast fol' and
against each measul".
Th. City Council must adopt a
l'.solution declal'ing the l'.sults of the
election.
7
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June 7. 1988
Elect ion
November 8. 1988
Election
BOND ISSUANCE
l. [Prior to bond [Prior to bond City Council Resolution
sale. ] sale. ]
The City Council is to pass a
resolution prescribing the total amount of
bonds to be sold; setting out the series of
the bonds. if any; prescribing the form of
the bonds and fixing the date of the bonds;
fixing a time and place for payment of the
bonds (which may be required to provide for
level debt service); fixing maturity dates
for the bonds (maximum maturity not to
exceed 40 years); fixing the denominations
of the bonds; providing for delivery of the
bonds and for receipt and transmittal of
the purchase price thereof in certified
Federal Reserve Bank funds; stating the
maximum acceptable interest rate (not to
exceed 12%) and the call provisions of the
bonds.
2. [Prior to bond [Prior to bond Financial Advisor Contract
sale. ] sale. ]
If the City Council determines that a
financial advisor is necessary or desirable
to aid in structuring the bond issue. the
City Council must enter into a contract
with the financial advisor.
3.
[Not later than 30
days prior to bond
sale. ]
[Not later than
30 days prior to
bond sale.]
CDAC Notice
Notice of the proposed bond sale must
be mailed to the California Debt Advisory
ColmIission.
4.
[Not later than
15 calendar days
prior to bond sale.]
[Not later than
15 calendar days
prior to bond
sal..]
Financial Publication Notice
If the amount of bonds to be sold
exceeds $1,000,000, the City Council must
caus. notic. of the sale to b. publish.d in
a financial publication generally
circulated throughout California.
8
4715a
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June 7. 1988
Election
s. [This deadline
exists because of
the deadline in
item 6 below. ]
6. [P~io~ to bond
sale. ]
7. [This date is set
by the adve~tise-
ment desc~ibed in
numbe~ 6.]
8.
9. [Following bond
sale. ]
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Novembe~ 8. 1988
Election
[This deadline
exists because of
the deadline in
item 6 below.]
[P~io~ to bond
sale. ]
[This date is set
by the adve~tise-
ment desc~ibed in
numbe~ 6.]
[Following bond
sale. ]
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Official Statement
The City Council may p~epa~e o~
have p~epa~ed an official statement. The
official statement is typically ~eady by
the date of publication of the
adve~tisement of bids (see below).
Adve~tisinq fo~ Bids
Following the City Council ~esolution
the City Council must adve~tise fo~ bids in
the manne~ p~esc~ibed by the City Council.
Offe~inQ Bonds fo~ Sale
The City Council will offe~ the
bonds fo~ sale at the time p~esc~ibed by
the Clty Council in its adve~tisement.
Bids a~e to be accepted by the City Council
pu~suant to the guidelines in the
Gove~nment Code. The bonds may not be sold
at a discount.
Form and Execution of Bonds
The bonds a~e to be signed by (1) the
mayo~ o~ such othe~ office~ autho~ized in a
~esolution of the City Council passed by a
two-thi~ds vote of all its membe~s and
(2) the City T~easu~e~ and counte~signed by
the eithe~ the City Cle~k o~ a Deputy City
Cle~k. The signatu~es may be facsimile
signatu~es. The bonds must be in
~e9iste~ed form..
Bond Delive~y
The bonds a~. to be delive~.d to the
pu~chase~ the~eof. and the pu~chase~ is to
pay fo~ the bonds on the date detemined by
the City Council. P~emiums and accrued
inte~est ~eceived are to be placed in the
principal and interest payment account and
the ~emainde~ of the bond p~oceeds are to
be deposited in the City T~easury and
c~edited to the p~oper imp~ovement fund.
9
June 7. 1988
Elect;on
10. (On or before the
15th day of the
second calendar
month after the
close of the
calendar quarter
in which the bonds
are issued.]
11. [At the time
of levying other
City taxes.]
12.
4715a
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November 8. 1988
Election
(On or before the
15th day of the
second calendar
month after the
close of the
calendar quarter
in which the bonds
are issued.]
[At the time
of levying other
City taxes.]
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Form 8038
Reporting form 8038 must be
filed with the IRS.
Tax for Payment of Bonds
The City Council must annually levy a
tax for the purpose of paying the principal
(redemption price) and interest on the
bonds.
Performance of Work
The City may perform the work for which
bond proceeds are used without following
the ordinary procedures in awarding
contracts.
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