Ryan Hagen, Staff Writer
Posted: 11/03/2012 01:01:30 PM PDT
Special Section: San Bernardino
SAN BERNARDINO – City representatives and their major creditors will meet in court for the second time Monday morning after CalPERS and others objected that the city didn’t qualify for bankruptcy protection.
The city’s bankruptcy attorney argued in papers filed with U.S. Bankruptcy Court in Riverside on Friday that – contrary to the objections – the city is making serious progress toward a plan to adjust its debts and has demonstrated that it filed for bankruptcy in good faith.
But to finish that process – and to avoid “tens of thousands of dollars in potentially avoidable legal fees and costs” – the city asks for Judge Meredith Jury to set the next hearing for Dec. 21 rather than deciding on eligibility on Monday.
Already, $29.78 million of the projected $45.8 million deficit for this fiscal year has been eliminated, attorney Paul Glassman wrote in an eight-page argument, but he said the city can’t survive just by cutting or raising revenues.
“Absent Chapter 9 protection, the city would be unable to pay its employees, go into uncontrolled default of its obligations for critical city assets such as police cars, fire trucks, and refuse trucks, and could not provide basic essential services to ensure the health, safety and welfare of its citizens,” Glassman wrote.
The next step toward financial stability, a pendency plan, is expected to come up for a City Council vote Nov. 19 or soon after, Glassman said. The city decided to first pass a pre-pendency plan – a set of cuts that Glassman acknowledged involved “spirited and extensive discussions and debates” – then make additional cuts afterward and present that final pendency plan to the court.
One demonstration of how seriously the city is looking at all budget solutions will come at 3 p.m. Monday, when the City Council meets, said City Attorney James F. Penman.
The council will discuss whether to ask the San Bernardino County Sheriff’s Department how much it would cost to have sheriff’s deputies police the city, after rejecting – at least for a time – movements toward outsourcing refuse services, custodial work and park maintenance.
“(Police are) one of our most expensive departments and one of the most important,” Penman said. “Our situation is further complicated by the fact that we are in a situation with such a high crime rate and such a crime problem.”
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Sheriff Hoopster: “Sure Jimmy, we’ll work the City up a bid to convert the SBPD to the SBSD, but first I’ll have to get some information from the City Council, the City Manager and staff about what they are looking for in their law enforcement for San Berdoo doo, you know their vision for the future.”
City Attorney Penman: “What are you talking about Rod, their vision, you must be hanging onto every word that your boss Gregory Peckory tells you… bet the next thing you’ll be bringing-up is what kind of quality-of-life do we want in this City?!”
Sheriff Hoopster: “You must be reading my mind! That’s exactly what Greg told us to ask, and to make sure we get it in writing and approved by the Council, and of course approved by legal counsel too, that means you Jimmy!”
Penman: “You must be kidding, you want the seven member City Council and the Mayor to all agree on a vision of the future quality-of-life for San Berdoo doo residents and businesspeople… they can’t agree on anything?!”
Sheriff Hoopster: “Once we know your vision for law enforcement, then we can determine how much it will cost to provide that level of protection to the community, c’mon Jimmy, were not talking rocket science here, it’s only public safety.”
Penman: “And lets just say that the level of protection that the City desires is cost prohibitive? In layman’s terms, what if it costs too much to provide the level of law enforcement services for the community that is desired to retain or better the quality-of-life for our residents?”
Sheriff Hoopster: “Ok, Greg told me it would be like this, that you guys would be pleading poverty because you’ve got that little “b” word going in federal court… Bankruptcy! Don’t worry, have we got a deal for you, sort of like a fire-sale price, only this is for police protection by SBCo’s finest!”
Penman: “Bottom-line then, what kind of deal do we get… this almost feels like extortion because you guys are the only other game in town, and basically we can’t afford what we’ve got now, and have to show the Feds in court that we are putting cost-cutting measures in place, to do everything we can to pay our bills. The legal fees are the real dozy in the equation for the BK process, and that cost will determine how much we can afford to pay for the police… guess we’ll have to go bare bones on the size of the force we need.”
Sheriff Hoopster: “I’m taking notes here… heard the City cares about quality-of-life, but due to being BK, you’re looking for bare bones with your boots on the streets… you know all that lawyering just seems to make you double-speak about everything. I’ll make it simple Jimmy, and put it in cop lingo for you, how many murders are in your future vision for downtown, and how much longer do you want to keep your job at City Hall? Greg says the only quality the City will be able to afford will be if enough taxpayers and businesses end-up being able to stay alive through this City’s BK process, in order to pay for your fat retirement, thanks to all those legal fees.”