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HomeMy WebLinkAbout06-16-2009 Minutes CITY OF SAN BERNARDINO 300 N. "D" Street San Bernardino, CA 92418 Website: www.sbcity.org Mayor Potril:k J. Morris CouncU Members: Esther Estrada Dennis J. Baxter Tobin Brinker Fred Shoren Coo. Kelley Rikke Van Johnson Wendy McCammack ~ MINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING JUNE 16, 2009 ECONOMIC DEVELOPMENT AGENCY BOARDROOM 201 NORTH "E" SREET SAN BERNARDINO, CA This is the time and place designated 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 at 1:30 p.m., Monday, June 15, 2009, 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 Monday, June 15, 2009, 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 a.m., Tuesday, June 16, 2009, on the City Hall breezeway bulletin board. The joint adjourned regnlar meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino was called to order by Mayor/Chairman Morris at 4:08 p.m., Tuesday, June 16, 2009, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. Roll Call Preseut: Mayor/Chairman Morris; Council Members/Commissioners Estrada, Baxter, Brinker, Shorett, Kelley, Johnson, McCanunack; City Attorney Penman, City Manager McNeely, City Clerk Clark. None. Absent: 1 06/16/2009 1. Closed Session Pursuant to Government Code Section(s): A. Conference with legal counsel - existing litigation - pursuant to Government Code Section 54956.9(a): Allen, Jamora, et aI. v. City, et aI. - San Bernardino Superior Court Case No. CIVSS 805915; Alliant Ins. Services, Inc., et al. (City Muni Water Dept. v.) - San Bernardino Superior Court Case No. CIVSS 702820; Alvarez, Jaime, et al. (RDA v.) - San Bernardino Superior Court Case No. SCVSS 86091; Batey, Jane, et al. v. City, et al. - San Bernardino Superior Court Case No. SCVSS 141503; Belinski, Paul v. City, et aI. - United States District Court Case No. CV08-8571PSG(MANx) ; Cora Constructors, Inc. v. City Muni Water Dept. - San Bernardino Superior Court Case No. CIVSS 803484; County of San Bernardino (City v.) - Los Angeles Superior Court Case No.KC49711 "J"; Daves, Edward, et aI. v. City, et al. - San Bernardino Superior Court Case No. CIVSS 815804; Desrochers, Michael, Lowes, Steve v. City, et aI. - United States District Court Case No. EDCV06-1408 V AP (JCRx); Desrochers, Michael, Lowes, Steve v. City, et aI. - San Bernardino Superior Court Case No. CIVSS 708367; Flores, Emelio S., et aI. v. City of Hi~and, et al. - San Bernardino Superior Court Case No. CIVSS 700464; Golding, Justin Ryan v. City, et al. - San Bernardino Superior Court Case No. CIVSS7oo791; 2 06/16/2009 Hearns, Kimberlyn v. City, et aI. - United States District Court Case No. EDCV03-01434 RT (SGLx); Hearns, Kimberlyn v. City, et aI. - United States District Court Case No. CV05-04524 GHK(RZX); Jackson, Dennis, et aI. v. City, et al. - San Bernardino Superior Court Case No. CIVSS 800797; Kin~, Edward & Aia Jae~er v. City - United States District Court Case No. CV -09-01339-SJQ(PJWx); Lopez, Jose Luis, Jr., et aI. dba The Club (Peo. v.) - San Bernardino Superior Court Case No. SCVSS 134051; Manta Mana~ement Corp. (Peo. v.) (#2-Red Li~ht Abatement) San Bernardino Superior Court Case No. SCVSS 117285; Maravilla, Luisa v. Deanna Marie Crosby, et aI. - San Bernardino Superior Court Case No. CIVSS 707097; Montez, Rodolfo v. City of SB Mnni Water Dept., et aI. - San Bernardino Superior Court Case No. CIVSS 701871; Moore, Adrian Eu~ene v. City, et aI. - United States District Court Case No. CVOI-03064 DDP (RZ); Moss, Richard "Scott", et al. v. City, et aI. - United States District Court Case No. CV07-01027 SGL(OPx); Osias, Daniel, an ind., et al. (City v.) - San Bernardino Superior Court Case No. SCVSS 140090; Redden, Deryl v. City, et al. - San Bernardino Superior Court Case No. SCVSS 144245; Romero, Mi~el, et al. v. City, et aI. - San Bernardino Superior Court Case No. CIVSS 703673; San Bernardino City Prof. Firefi~ters, Local 891 v. City et al. - San Bernardino Superior Court Case No. CIVSS 807685; San Bernardino Police Officers' Assoc.; Richard Lawhead, et al. v. City, et aI. - San Bernardino Superior Court Case No. CIVDS 902362; 3 06/1612009 Soderbloom, Don v. City, et al. - DLSE State Case No. 4962; State of Calif. ex reI. Nora Armenta; City of SB v. James Jones, Co. - Los Angeles Superior Court Case No. BC173487; Vinson, Demariae v. City, et al. - San Bernardino Superior Court Case No. CIVSS 818649; Walker, Robert v. City, et al. - San Bernardino Superior Court Case No. CIVSS 814767; Wan~, H. Ro~er, et al. v. WaI-Mart Real Estate Business Trust, et al. - San Bernardino Superior Court Case No. SCVSS 129158; Watson, Zakyia, et aI. v. City, et al. - San Bernardino Superior Court Case No. CIVSS 807970; Weisenber~er, Timothy, et aI. v. State of Calif., et al. - San Bernardino Superior Court Case No. SCVSS 134901; Zimmon, Garrett-Ind. Disability Ret. Application - OAH#2oo7080890. B. Conference with legal counsel - anticipated litigation - significant exposure to litigation - pursuant to subdivision (b) (1), (2), (3) (A-F) of Government Code Section 54956.9: Claim of Boom, Brian v. City, et al. Claim of Lowes, Steve v. City Claim of Martinez, Sochildt v. City Claim of Vargas-Quiroz, Miguel, et al. v. SBCUSD; City, et al. Claim of Walker, Travis v. City C. Conference with legal counsel - anticipated litigation - initiation of litigation - pursuant to subdivision (c) of Government Code Section 54956.9. D. Closed Session - personnel - pursuant to Government Code Section 54957. 4 06/16/2009 E. Closed session with Chief of Police on matters posing a threat to the security of public buildings or threat to the public's right of access to public services or public facilities - pursuant to Government Code Section 54957. F. Conference with labor negotiator - pursuant to Government Code Section 54957.6. G. Conference with real property negotiator - pursuant to Government Code Section 54956.8. Prior to the start of the meeting, City Attorney Pemnan distributed an Interoffice Memorandum dated June 16, 2009, addressed to the Mayor and Common Council, from James F. Pemnan, City Attorney, regarding Funding of Agreements for Outside Counsel and Litigation Expenses. Following closed session, City Attorney Pemnan stated that the only actions taken in closed session would be revisited when the entire budget is reviewed and a vote is taken in open session at that time. 2. Budget deliberatious - Fiscal Year 2009/10 - discuss and take possible action concerning proposed City and EDA budgets The following documents were distributed: . June 16, 2009 - Budget Workshop Agenda; . City of San Bernardino FY 2009-201012013-2014 CIP Draft 06-16-09 Capital Improvement Program (PowerPoint presentation by Robert Eisenbeisz, City Engineer); . FY 2009/2010 - 2013/2014 Capital Improvement Program - Potential Conflicts ofInterest (distributed by the City Attorney's office). Council Member/Commissioner Estrada stated that it would be helpful if the Council could have information showing how many of the City's projects have been accomplished cooperatively with other agencies, including dollar amounts; and Mr. Eisenbeisz stated that he could provide that information. Warner Hodgdon expressed concern regarding the proposal to borrow $5 million from the Economic Development Agency (EDA) to balance the City's budget, equating it to the City digging itself into a hole. He stated that he would like to see a lO-year projection in order to know how large the crevice is going to be 12 months from now. He suggested that staff obtain an unqualified 5 06/16/2009 opinion as to whether the Agency can loan this money, pointing out that EDA money is a multiplier and there is synergy in it. City Manager McNeely provided a review of his recommended budget savings actions. He stated that if Council members had questions between now and June 24, to contact him-that staff would be preparing the necessary resolutions and other measures that would be required for the Council's adoption. Council Member/Commissioner Estrada asked Mr. McNeely if he felt he had been briefed enough on the City's financial situation that he could unequivocally make these recommendations. Mr. McNeeley answered that he believed he had enough confidence in the information he has thus far, as well as the staff, to make these recommendations to the Council. He added that his one caveat is that he is coming in as a new city manager and he has a number of questions with respect to long-term. He stated that he presented a number of issues to the Council that are hanging out there that will come due next June; and what he is asking right now is that the Council move forward with getting this budget wrapped up so that they can begin in earnest to sit down and go through the more major issues that are coming up. Mr. McNeely stated it was not his preference to come in at the outset and suggest a loan of this magnitude from the Economic Development Agency. However, in looking at the numbers and going through the budget, at this juncture he believed this was the best course to take on an interim basis. He stated that there are clearly fundamental changes that need to be made-other analysis and review of the City's fmances that he needs to make-and he can't do that in a 2-week, 2-day time frame. Council Member/Commissioner Estrada stated that she thought there were other things that haven't been explored-whether it's the refinancing of City Hall or whatever-but that all potential assets haven't been explored; and this is an enormous hit to the EDA budget. Council Member/Commissioner McCammack requested that between now and June 24 that the City Manager review the document put together by John Wilson, Senior Assistant City Attorney, regarding other assets and reserve funds that can or cannot be borrowed from on a short-term basis. Council Member/Commissioner Brinker suggested that they look into the idea of reducing the number of committees and commissions that we have in the City in order to reduce the amount of staff time devoted to them. 6 06/16/2009 He stated that when he thinks about borrowing, to him there is good borrowing (such as money for a college education - an investment in yourself) and bad borrowing (one-time expenses such as a vacation on a credit card). He stated that using one-time money for ongoing expenses is typically not considered very good borrowing. He stated that he thought the purpose of this borrowing was to buy the City time to improve its fmancial situation, so he would like to see the following done to show that they are serious about improving the City's financial situation: . Include in the City's budget some type of positive plan to support new businesses and a generation of new taxes in the city; . A year in which there are no layoffs or cuts of City employees and an understanding of how that is being accomplished proactively with the employee bargaining units; . More information on what kinds of structural changes they are looking at that will improve efficiency or effectiveness in our City-what areas are they going to focus on; . Proactively preparing for next year's budget; . What is the opportunity cost of borrowing the money from EDA- ultimately, what is the best use of those dollars. Are they better used in the EDA generating new dollars, or is it money that is just going to be sitting there and would be better used to help buy the time needed to get through all the other things the Council has talked about. Mr. Brinker also requested a I-page document listing the full cost of all the City's debt service-how much debt do they already have, what percentage of the budget is the debt service, and can any of it be refinanced. Discussion continued regarding the budget and Mr. McNeely's plan for moving forward with the 2009/2010 budget as well as the budget for 2010/2011. Ultimately, Mr. McNeely stated that he would be honest with the Council and he would be consistent with the Council; however, at the end of the day it would be the Council's call as to how they move forward. Mention was also made regarding the refuse operation and the tow operation. Ms. McCammack noted that the tow yard was included in the budget and asked about the tow yard business plan. She stated that it could not be part of the budget at this point in time, and that she would not support a budget with the tow yard in place, since the Council doesn't know what the plan means or what the plan looks like. 7 06/16/2009 NB1. Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of Amendment No. 2 to the Agreement and an increase to Purchase Order No. 302230 by an additional $32,400 to FIuoresco Lighting & Signs for additional streetlight maintenance services. (Continued from June 15,2009) Council Member/Commissioner McCammack stated that she would like to have all backup paperwork regarding this item before making a decision. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Estrada, that the matter be continued to the next budget meeting to be held Wednesday, June 24, 2009. The motion carried with Kelley voting "no." 3. Adjournment At 7:38 p.m. the meeting adjourned to 4 p.m., Wednesday, June 24, 2009, in the Economic Development Agency Boardroom to consider the Fiscal Year 2009/10 City and Economic Development Agency budgets and other agendized matters. The next joint regular meeting of the Mayor and Common Council/Community Development Commission is scheduled for Monday, July 6,2009. RACHEL G. CLARK City Clerk By: 4P~ LmdaE.Hartzcl Deputy City Clerk 8 06/16/2009