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HomeMy WebLinkAbout06-23-2011 Adj. MinutesMayor Patrick J. Morris CITY OF SAN BERNARDINO Council Members: 300 N. `D" Street Virginia Marquez Vacant San Bernardino, CA 92418 robin Brinker Website: www.sbcity.org Fred shorett Chas Kelley 100 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 23, 2011 ECONOMIC DEVELOPMENT AGENCY BOARDROOM 201 NORTH "E" STREET SAN BERNARDINO, CALIFORNIA 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 20, 2011, 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 June 20, 2011, 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 12 p.m., Wednesday, June 22, 2011, on the bulletin board located in the City Hall breezeway. 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 Morris at 5:10 p.m., Thursday, June 23, 2011, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. Roll Call Present: Mayor/Chairman Morris; Council Members/Commissioners Marquez, Brinker, Shorett, Kelley, Johnson, McCammack; City Attorney Penman, City Manager McNeely, Deputy City Clerk Ochiqui. Absent: None. Vacant: Second Ward. 06/23/2011 1. Closed Session Pursuant to Government Code Section(s): A. Conference with legal counsel - existing litigation - pursuant to Government Code Section 54956.9(a). 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. 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. 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. Mid -Management General Management/Confidential Fire Safety Fire Management Police Management Police Safety G. Conference with real property negotiator - pursuant to Government Code Section 54956.8. 2. Budget Workshop and Deliberations - Fiscal Year 2011/12 - City, Capital Improvement Program, and EDA Budgets Mayor/Chairman Morris stated that as you look at the five-year projections for this City it is not a good news story. As we learn more, given the state of the economy and the state of our City's needs, we are in a great deficit and will be moving to a deeper deficit without some major decisions by the Council on going forward. 2 06/23/2011 City Manager McNeely stated that staff had planned for three hearings for this year's budget in comparison to the four that we had last year. The reason for the reduction of one hearing is that during last year's process the Council approved a two-year budget process. He indicated that additional follow-up meetings could be scheduled, as necessary. He stated that he would be making some overview comments, followed by a presentation by Barbara Pachon, Director of Finance, and then go back and reacquaint the Council with some of the past actions that this Council and previous Councils have had to take with respect to attempting to balance the annual budget. He stated that Ms. Pachon would also go through the proposed budget for this year and deal with some of the significant changes and some of the assumptions that have been placed into the budget. As part of that presentation, she would present an updated five-year plan. He stated that there would also be a presentation by the City's sales and property tax consultant. Mr. McNeely advised that this was the kickoff meeting for the City's budget discussions. He stated that this was the third budget that he has been involved in as city manager—the second that he has been personally responsible for submitting to the Council. He stated that he wanted to reiterate that this process is evolving, and it has been his pleasure as city manager to work with the Council as policymakers in an effort to do what they can for the long haul of stabilizing our revenue picture. He added that clearly we are still in the downward spirals of the economy; however, when we look at our numbers they have begun to stabilize somewhat. He stated that last year staff presented to the Council a five-year budget projection. He thought that the five-year projection was the first time that this Council or previous Councils had an opportunity to go beyond simply a one- year submittal. The key element in that look over the five years is that when you looked at what staff was projecting in the way of expenses, as well as revenue, the cumulative effect of that five-year projection was over a $40 million deficit. Mr. McNeely stated that staff spent a fair amount of time talking to the Council about that deficit and beginning to look at what was necessary in order to begin to change the likely path down which we were headed. He stated that this Council decided that everything needed to be put on the table—every single revenue item, expenses, all those things needed to be put out there and this Council needed to have a full blown discussion about which of these were acceptable changes, areas where the Council wanted to go, and which ways they felt uncomfortable with facilitating. 3 06/23/2011 We did that and at the end of that discussion we only ended up with one revenue option that the Council felt comfortable going forward with, and that was a Cost Allocation Study. At the end of that, this Council also made a decision, given the lack of other revenue sources, to recommend going forward, albeit reluctantly, with an 8 percent across the board cut. Those were the two keystones of the budget that was adopted last year, which we now have implemented. From a departmental standpoint, we dealt with that over the two-year process and we worked with departments to do what we called a first-tier cut. Most departments were able to get that 8 percent cut in the first year. Some of the larger departments had to take full advantage of the second year, but today most, if not all of those cuts have been made. With the status of where we are now, there remain some challenges. In implementing the 8 percent cut and continuing to deal with the challenges, we still have services of our City that are problematic. Some examples of those still remain in our parks. We are not able to maintain many of the parks in a manner that we would like to—our ability to maintain and mow those areas are problematic. We have gone to two- or three-week cycles rather then having those done once a week. We've also had threats for closure of our pools. We have many of our maintenance districts not being maintained at the level they should be. Last year as a result of the 8 percent cuts we were forced to reduce police staffing by 51 sworn personnel, and we had a number of cuts in our Fire Department as well. Our main library was required to close on Fridays and we also have some of our branches that have reduced hours of operation. In terms of lighting, we still have a huge backlog of many lights that are out throughout the City; in fact, we have over 1,000. In Public Works we have challenges with our fleets. Several vehicles are grossly outdated and are expensive to maintain. If we look at the cost analysis, it's costing us more to maintain the vehicles than it would be to go out and acquire new ones. Mr. McNeely stated that Ms. Pachon is constantly sharing with him that because of the shortage of our funds we are unable to go out and do any kind of bonding. Our reserves and our revenues are so low at this point that we are not credit worthy in the sense that we would like to be, and that poses a challenge for us insofar as going out and taking advantage of bonding capabilities that we would like to pursue. 4 06/23/2011 The following documents were distributed and PowerPoint presentations made, as follows: • City of San Bernardino Fiscal Year 2011-12 Preliminary Budget, Charles E. McNeely, City Manager, Barbara Pachon, Director of Finance, June 23, 2011 (Presentations made by Charles McNeely, City Manager, and Barbara Pachon, Director of Finance) • City of San Bernardino Sales & Use Tax Trends, June 23, 2011 (Presentation made by Lloyd de Llamas of The HdL Companies) • Public Works Department Fiscal Year 2011-12 Preliminary Departmental Budget (Presentation made by Nadeem Majaj, Director of Public Works) • City of San Bernardino FY 2011-2012/2015-2016 CIP (Capital Improvement Program) (No presentation was made - item was continued to budget meeting scheduled for June 28, 2011) R3. Budget Adoption Fiscal Year 2011-2012 - Economic Development Agency Resolution of the Mayor and Common Council of the City of San Bernardino, California, authorizing the funding of various City of San Bernardino fiscal year 2011-2012 public improvement expenditures and making findings and determinations pursuant to Health & Safety Code Sections 33445 and 33445.1 as to the benefit to the various redevelopment project areas for undertaking public improvements in connection with these various City expenditures. (113A) Resolution of the Mayor and Common Council of the City of San Bernardino, California, approving the execution and delivery of an Agency - City 2011-2012 Loan Agreement and 2011-2012 Note of the City of San Bernardino ("City") payable to the Redevelopment Agency of the City of San Bernardino ("Agency") in the principal amount equal to $1,356,250 for the repayment of the $1,332,925 principal amount of the 2010-2011 Note payable from the City to the Agency. (R3B) Resolution of the Mayor and Common Council of the City of San Bernardino, California approving a Master Services Agreement for fiscal year 2011-2012 by and between the Redevelopment Agency of the City of San Bernardino ("Agency") and the City of San Bernardino ("City") and authorizing the Agency's payment to the City for the performance of certain functions by City Departments for the benefit of the Agency. (R3C) 5 06/23/2011 Resolution of the Community Development Commission of the City of San Bernardino, California, approving the Economic Development Agency's budget for the Fiscal Year 2011-2012 with any such amendments, changes and modifications that may be specifically authorized by said Commission, except for those portions of certain budget lines which are related to the Central City Projects Redevelopment Area and the Uptown Redevelopment Project Area. (R3D) Resolution of the Community Development Commission of the City of San Bernardino, California, approving the Economic Development Agency's budget for those portions of certain budget lines which are related to the Uptown Redevelopment Project Area for the Fiscal Year 2011-2012 with any such amendments, changes and modifications that may be specifically authorized by said Commission. (R3E) Resolution of the Community Development Commission of the City of San Bernardino, California, approving the Economic Development Agency's budget for those portions of certain budget lines which are related to the Central City Projects Redevelopment Project Area for the Fiscal Year 2011- 2012 with any such amendments, changes and modifications that may be specifically authorized by said Commission. (R3F) Resolution of the Community Development Commission of the City of San Bernardino, California, authorizing the funding of various City of San Bernardino Fiscal Year 2011-2012 public improvement expenditures and making findings and determinations pursuant to Health & Safety Code Sections 33445 and 33445.1 as to the benefit to the various redevelopment project areas for the undertaking of various public improvements. (R3G) Resolution of the Community Development Commission of the City of San Bernardino, California, approving the Economic Development Agency's analysis and determination of the appropriateness of the planning and administration expenditures of the Low- and Moderate -Income Housing Fund for the Fiscal Year 2011-2012 Agency Budget. (R311) Resolution of the Community Development Commission of the City of San Bernardino, California approving a Master Services Agreement for Fiscal Year 2011-2012 by and between the Redevelopment Agency of the City of San Bernardino ("Agency") and the City of San Bernardino ("City") and authorizing the Agency's payment to the City for the performance of certain functions by City Departments for the benefit of the Agency. (R31) 6 06/23/2011 Resolution of the Community Development Commission of the City of San Bernardino, California, approving the execution and delivery of an Agency - City 2011-2012 Loan Agreement and 2011-2012 Note of the City of San Bernardino ("City") payable to the Redevelopment Agency of the City of San Bernardino ("Agency") in the principal amount equal to $1,356,250 for the repayment of the $1,332,925 principal amount of the 2010-2011 Note from the City to the Agency. (113,1) Resolution of the Community Development Commission of the City of San Bernardino, California, authorizing the Economic Development Agency to continue expenditures, except for those portions of certain budget lines which are related to the Uptown and Central City Projects Redevelopment Project Areas, at the budgeted level for the 2010-2011 Fiscal Year, with allowance for those budgeted items having prior Commission approval, pending final approval of the 2011-2012 budget. (R3g) Resolution of the Community Development Commission of the City of San Bernardino, California, authorizing the Economic Development Agency to continue expenditures for those portions of certain budget lines, which are related to the Central City Projects and Uptown Redevelopment Project Areas, at the budgeted level for the 2010-2011 Fiscal Year, with allowance for those budgeted items having prior Commission approval, pending final approval of the 2011-2012 budget. (R3L) Note: No Mayor and Common Council resolutions were distributed with the backup materials. There was no discussion or action taken regarding the Economic Development Agency budget. This item was continued to the budget meeting of June 28, 2011. 4. Public Comments Warner Hodgdon, San Bernardino, CA, stated that he learned a lot tonight, reminisced about getting his first building permit in San Bernardino when he was 20 years old and about building City Hall, and stated that one of the most important things that needed to be passed was the Transportation Overlay District. Roger Henderson, San Bernardino, CA, stated that we do have a problem with our parks and it all comes down to money—that Parks and Recreation has been cut to the bone. He implored the Council not to cut anymore in the Parks and Recreation area. 7 06/23/2011 4. Adjournment At 8:45 p.m. the meeting was adjourned to 5 p.m., Tuesday, June 28, 2011, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California, to discuss the FY 2011/12 City and EDA budgets. The next joint regular meeting of the Mayor and Common Council/Community Development Commission is scheduled for 1:30 p.m., Tuesday, July 5, 2011, in the Council Chambers of City Hall. RACHEL G. CLARK City Clerk By: Linda E. Hartzel Deputy City Clerk 8 06/23/2011