1

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
STRADLING YOCCA
CARLSON & RAUTH
LAWYE RS
NEWPORT BE ACH
DECLARATION OF ANDREA M. TRAVIS-MILLER
DOCSOC/1580192v2/200430-0003
PAUL R. GLASSMAN (State Bar No. 76536)
LAURA L. BUCHANAN (State Bar No. 156261)
KATHLEEN D. DeVANEY (State Bar No. 156444)
STRADLING YOCCA CARLSON & RAUTH
A Professional Corporation
100 Wilshire Blvd., Suite 440
Santa Monica, CA 90401
Telephone: (424) 214-7000
Facsimile: (424) 214-7010
E-mail: pglassman@sycr.com
lbuchanan@sycr.com
kdevaney@sycr.com
JAMES F. PENMAN (State Bar No. 91761)
CITY ATTORNEY
300 North D STREET, Sixth Floor
San Bernardino, CA 92418
Telephone: (909) 384-5355
Facsimile: (909) 384-5238
E-mail: Penman_Ja@sbcity.org
Attorneys for Debtor
City of San Bernardino
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
RIVERSIDE DIVISION
In re:
CITY OF SAN BERNARDINO,
CALIFORNIA,
Debtor.
Case No. 6:12-BK-28006-MJ
Chapter 9
DECLARATION OF ANDREA TRAVIS-
MILLER IN SUPPORT OF CITY OF SAN
BERNARDINO'S MEMORANDUMOF
FACTS AND LAWIN SUPPORT OF THE
STATEMENT OF QUALIFICATIONS UNDER
SECTION 109(C) OF THE BANKRUPTCY
CODE
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 1 of 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-1-
STRADLING YOCCA
CARLSON & RAUTH
LAWYE RS
NEWPORT BE ACH
DECLARATION OF ANDREA M. TRAVIS-MILLER
DOCSOC/1580192v2/200430-0003
DECLARATION OF ANDREA M. TRAVIS-MILLER
I, Andrea M. Travis-Miller, declare:
1. My name is Andrea M. Travis-Miller. I am over 18 years of age. I am authorized
to and do make this declaration in support of the City Of San Bernardino's Memorandum Of
Facts And Law In Support Of The Statement Of Qualifications Under Section 109(C) Of The
Bankruptcy Code. I have personal knowledge of the matters set forth in this declaration, and if
called upon to testify, I could and would competently testify thereto.
2. I am the Interim City Manager for the City of San Bernardino, California (the
City or San Bernardino). In my capacity as Interim City Manager, I am primarily
responsible for managing and directing the day-to-day operations and administration of the City
government, and planning and executing programs and projects to accomplish City goals and
objectives within broad general policy guidelines and Mayor and Common Council mandates. I
also provide direction, oversight, and coordination of all City functions and activities unless the
Citys Charter specifically provides otherwise, including direction to department heads
responsible for overseeing law enforcement and fire service, finance, public works, human and
recreation services, waste management and information technology.
In addition to these duties, I am also responsible for providing assistance and guidance to
the Mayor and Common Council on short-term and long-term financial planning and policy
matters to meet service delivery and facilities infrastructure development objectives in a manner
consistent with the Citys financial resources. My duties also include preparing and assisting in
the development of the annual City budget and associated budget processes, participating in the
analysis of proposed legislation and regulation, interpreting Common Council instructions and
requests, and interpreting City ordinances, codes and applicable laws and regulations to ensure
compliance by City departments and staff. I am also responsible for developing and reviewing
reports of findings, alternatives and recommendations involving a wide variety of reports and
making presentations to the Common Council, other agencies and community groups on the
status of the City.
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 2 of 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-2-
STRADLING YOCCA
CARLSON & RAUTH
LAWYE RS
NEWPORT BE ACH
DECLARATION OF ANDREA M. TRAVIS-MILLER
DOCSOC/1580192v2/200430-0003
Prior to my employment as the Interim City Manager, I served as the Assistant City
Manager from June 2011 to April 2012. As the Assistant City Manager, I worked under the
direction of and assisted the City Manager (who maintained line authority over all of the
operating departments) in managing and directing the day-to-day operations of the City,
managed major projects and performed complex administrative, financial and statistical analyses,
provided professional recommendations and assistance in formulating policy, procedure, and
legislative positions; participated in long-range and strategic planning, and coordinated activities
to support the Mayor and Common Council.
3. I have more than 20 years of administrative experience in local government
emphasizing budgeting, intergovernmental relations, legislative analysis, personnel management,
contract administration, public safety, municipal code enforcement, prosecution, planning, public
information, emergency preparedness, redevelopment, housing, refuse and recycling,
transportation, air quality, customer service and community involvement programs. Prior to my
employment by the City of San Bernardino, I was employed by the City of La Mirada, California
as the City Manager from December 2001 to September 2008, the City Manager Designate from
June 2001 to December 2001, the Assistant to the City Manager from November 1998 to June
2001, the Assistant Director of the Community Resources Department from June 1996 to
November 1998, an Administrative Assistant from July 1993 to June 1996 and a Code
Enforcement Specialist from November 1989 to July 1993. I have a Bachelor of Arts degree in
Business Administration/Economics from California State University, Fullerton, a Master of
Public Policy and Administration from California State University, Long Beach and a Juris
Doctorate from Western State University, College of Law. I also practiced law in private
practice from November 2008 to June 2011.
4. As the Interim City Manager, I am familiar with the procedures of the City for the
maintenance of business records. I am one of the custodians of the books, records and files of
the City that pertain to the matters set forth in this declaration. I have personally worked on the
books, records and files, and as to the matters in this declaration, I know them to be true of my
own knowledge or I have gained knowledge of them from the business records of the City
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 3 of 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-3-
STRADLING YOCCA
CARLSON & RAUTH
LAWYE RS
NEWPORT BE ACH
DECLARATION OF ANDREA M. TRAVIS-MILLER
DOCSOC/1580192v2/200430-0003
maintained in the ordinary course of the Citys business, which were made at or near the time of
the acts or events recorded therein by, or from information transmitted by, a person with
knowledge of the acts or events who had personal knowledge of the event and had or has a
business duty to record such event accurately. During all relevant times, the practice of the City
was to maintain accurate and complete records.
5. Beginning in late 2011 and continuing through early May of 2012, key City
management personnel retired or resigned. The Citys former Director of Finance retired at the
end of December 2011. The former City Manager resigned effective May 1, 2012. As late as
April of 2012, the former City Manager believed that the Citys estimated budget shortfall for
fiscal year 2011-12 would be about $3.1 million which the City believed could be remedied by
additional cuts to department budgets, continuing a hiring freeze on filling vacant positions and
making revenue adjustments.
6. When I began my duties as Interim City Manager on May 2, 2012 after the former
City Manager resigned, part of my responsibilities including overseeing the Citys Finance
Department. In that regard, members of my staff and I worked with the Citys Director of
Finance (Finance Director), Jason P. Simpson, and his staff to begin the process of analyzing
the Citys financial condition. This process culminated in a report by the Citys Finance
Department entitled San Bernardino Budgetary Analysis and Recommendations for Budget
Stabilization (the Budget Report) dated July 9, 2012. Michael Busch of Urban Futures, Inc.,
a consulting firm retained by the City in June 2012, also assisted in the process of preparing the
Budget Report.
7. The Budget Report concluded that the City faced insolvency and an immediate
liquidity and fiscal crisis. As such, the Budget Report recommended that the City consider
taking steps for a potential Chapter 9 filing. The City placed on the July 10, 2012 agenda of a
noticed meeting of the Mayor and Common Council that there would be a discussion on the
Citys budget for the fiscal year 2012/2013 and possible action authorizing the City to file a
Chapter 9 petition. I uploaded the Budget Report to the Citys website to make it available to the
public on July 9, 2012.
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 4 of 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-4-
STRADLING YOCCA
CARLSON & RAUTH
LAWYE RS
NEWPORT BE ACH
DECLARATION OF ANDREA M. TRAVIS-MILLER
DOCSOC/1580192v2/200430-0003
8. At the July 10 meeting of the Mayor and Common Council, Jason Simpson,
Michael Busch and I made presentations to the Common Council and Mayor regarding the
matters set forth in the Budget Report.
9. On July 16, 2012, the City placed on the agenda of the noticed meeting of the
Mayor and Common Council that there would be a discussion concerning a declaration of fiscal
emergency in the City of San Bernardino and a resolution authorizing the Citys filing of a
Chapter 9 petition. That meeting was open for public comments. I attended the July 16 meeting
and made a presentation regarding the Citys financial crisis. After discussions and public
comments regarding the Citys fiscal condition at the July 16 meeting of the Mayor and
Common Council, that meeting was adjourned and continued to July 18, 2012 for further
discussions. The Citys fiscal emergency and a resolution authorizing the Citys filing of a
Chapter 9 petition was again on the agenda of the July 18, 2012 meeting of the Mayor and
Common Council, and further discussions and comments from the public were considered.
10. I helped prepare a staff report regarding a declaration of fiscal emergency (Staff
Report) for the Common Council meetings July 16 and July 18, which was presented at the July
18, 2012 meeting of the Mayor and Common Council. Following the presentations, discussions
and public comments which took place at the three noticed meetings of the Mayor and Common
Council held on July 10, July 16 and July 18, a majority of the members of the Common Council
voted to declare a fiscal emergency and approved a resolution finding that: (1) the City is or will
be unable to pay its obligations within the next 60 days, and that the financial state of the City
jeopardizes the health, safety or well-being of the residents of the City absent the protections of
Chapter 9; and (2) given the Citys dire financial condition, it was in the best interest of the City
to declare a fiscal emergency. The Common Council passed Resolution No. 2012-205 declaring
a fiscal emergency. On July 18, 2012, the Mayor and Common Council also determined that
given the Citys dire financial condition and taking into consideration the advice of City staff and
counsel, it was in the best interests of the City to seek protection under Chapter 9 of the
Bankruptcy Code and the Common Council passed Resolution No. 2012-206 authorizing the
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 5 of 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-5-
STRADLING YOCCA
CARLSON & RAUTH
LAWYE RS
NEWPORT BE ACH
DECLARATION OF ANDREA M. TRAVIS-MILLER
DOCSOC/1580192v2/200430-0003
filing of a voluntary petition. I also prepared a document entitled City of San Bernardino
Financial Status Update which was released to the public on July 18, 2012.
11. On July 24, 2012, the Finance Director and I presented a report entitled Fiscal
Emergency Operating Plan July 2012 to September 2012 (the Fiscal Emergency Plan)
which was prepared by the Finance Director and me with the assistance of the Citys consultant,
Michael Busch of Urban Futures, Inc., and a report entitled City of San Bernardino Selected
Monthly Cash Flow Analysis (Cash Flow Analysis) to the Common Council and Mayor. I
believe that these two reports demonstrated that the City estimated it had substantial net cash
deficits of over $11.5 million and, as such, could not pay all of its obligations due and owing or
becoming due from July through September of 2012. I believed that it was necessary for the
City to defer and not pay millions of dollars of financial obligations in order to pay the August
payroll and continue to operate and provide essential services to the Citys residents. The Fiscal
Emergency Plan was approved at the July 24 meeting of the Mayor and Common Council.
12. I prepared a document entitled San Bernardino Fiscal Emergency Operating
Plan released on July 24, 2012. The Citys financial condition deteriorated after its distressed
financial condition became public knowledge even after implementation of the Fiscal Emergency
Plan. The City faced certain creditor actions ranging from declaring defaults on certain
obligations to threats to levy on City assets.
13. In response to the declining economy, the City has reduced or eliminated funding
for many General Fund programs and services below levels that the City views as minimally
acceptable. The City intends to make even further reductions, but does not believe that these
cuts alone can solve the Citys serious financial difficulties. Over the last few years, the City
tried to balance its budgets by negotiating reductions in employee costs, while continuing to
provide essential services to the public and eliminating certain City positions, all of which
resulted in reductions in service levels to the community. The City has eliminated over 250
positions during the last three years and now has its lowest staffing level in many years despite
population growth of nearly 25,000 people and an increased demand for services. The City
successfully negotiated labor concessions with most City employees resulting in savings of $10
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 6 of 10
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 7 of 10
million annually. Even after the cuts made by the City to date, more positions will be cut and
2 these cuts still will not be enough to balance the City's 2012-13 budget. Despite personnel cuts
3 made by the City, the City's cost per employee is increasing so it has not received any reduction
4 in labor costs as a result of those cuts. The City already has eliminated significant non-public
5 safety resources that otherwise would be devoted to maintenance and repair. As it stands now, 1
6 believe that City buildings, roads, trees, and parks that have begun to show neglect would
7 deteriorate further if more cuts are made.
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
14. The City could not reach any negotiated labor concessions with the City' s
firefighters and, therefore, imposed unilateral concessions in an effm1 to cut costs. In response,
the San Bernardino ProfessionaJ Firefighters, Local 891 fiJed a lawsuit against the City and San
Bemardino City Council challenging the imposition of salary reductions and a change to the
definition of overtime. The Firefighters prevailed and were awarded a judgment of$1 ,400,000;
which the City has appealed.
IS. Public safety is a major concern in the City. ln addition to reductions in many
safety programs over the last several years, the City made reductions in public safety
staft1ng and services that I believe have negatively affected the safety and welfare of the City' s
residents. These reductions include the elimination of City positions through layoffs and unfilled
vacancies and have translated into service reductions. San Bernardino now has fewer police
officers, a higher crime rate than in past years and crime rates that are higher than the national
and state averages. I believe that fmther cuts in public safety may be felt acutely because of the
particular need for police services in the City; and may increase response time or limit pollee
response to only the most serious violent crimes in prob'Tess. Investigating crimes would take
longer, and special units to prevent and abate crime may be reduced. The City also has fewer
firefighters now than in past years.
I declare under penalty of perjury that the foregoing is true and correct. Executed on
August Z92012 at San Bemardino, California.
STRAI)I . .!NU YOCCA
-6-
CARLSON & RAUTH
LAWVRU
Nr.WPOR,T RRA(' II
DECLARATION OF ANDREA M. TRA VIS-Mll..LER
DOCSOC/1 580 192v2/200430-0003
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
June 2012 F 9013-3.1.PROOF.SERVICE
DOCSOC/1581506v1/200430-0003
PROOF OF SERVICE OF DOCUMENT
I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is:
100 Wilshire Blvd., Suite 440, Santa Monica, CA 90401.
A true and correct copy of the foregoing document entitled: DECLARATION OF ANDREA TRAVIS-MILLER IN SUPPORT
OF CITY OF SAN BERNARDINO'S MEMORANDUM OF FACTS AND LAW IN SUPPORT OF THE STATEMENT OF
QUALIFICATIONS UNDER SECTION 109(C) OF THE BANKRUPTCY CODE will be served or was served (a) on the
judge in chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner stated below:
1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Pursuant to controlling General
Orders and LBR, the foregoing document will be served by the court via NEF and hyperlink to the document. On August
31, 2012, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the
following persons are on the Electronic Mail Notice List to receive NEF transmission at the email addresses stated below:
Jerrold Abeles abeles.jerry@arentfox.com
Joseph M Adams jadams@lawjma.com
Andrew K Alper aalper@frandzel.com, efiling@frandzel.com;ekidder@frandzel.com
Thomas V Askounis taskounis@askounisdarcy.com
Anthony Bisconti tbisconti@bmkattorneys.com
Jeffrey E Bjork jbjork@sidley.com
Sarah C Boone sboone@marshackhays.com, ecfmarshackhays@gmail.com
J Scott Bovitz bovitz@bovitz-spitzer.com
Jeffrey W Broker jbroker@brokerlaw.biz
Deana M Brown dbrown@milbank.com
Michael J Bujold Michael.J.Bujold@usdoj.gov
Christina M Craige ccraige@sidley.com
Alex Darcy adarcy@askounisdarcy.com
Susan S Davis sdavis@coxcastle.com
Robert H Dewberry robert.dewberry@dewlaw.net
Todd J Dressel dressel@chapman.com, lubecki@chapman.com
Chrysta L Elliott elliottc@ballardspahr.com, manthiek@ballardspahr.com
Scott Ewing contact@omnimgt.com, sewing@omnimgt.com
Paul R. Glassman pglassman@sycr.com
Everett L Green everett.l.green@usdoj.gov
Chad V Haes chaes@marshackhays.com, ecfmarshackhays@gmail.com
James A Hayes jhayes@cwlawyers.com
M Jonathan Hayes jhayes@hayesbklaw.com,
roksana@hayesbklaw.com;carolyn@hayesbklaw.com;elizabeth@hayesbklaw.com
D Edward Hays ehays@marshackhays.com, ecfmarshackhays@gmail.com
Eric M Heller eric.m.heller@irscounsel.treas.gov
Bonnie M Holcomb bonnie.holcomb@doj.ca.gov
Whitman L Holt wholt@ktbslaw.com
Michelle C Hribar mch@sdlaborlaw.com
Steven J Katzman SKatzman@bmkattorneys.com
Jane Kespradit jane.kespradit@limruger.com, amy.lee@limruger.com
Mette H Kurth kurth.mette@arentfox.com
Richard A Marshack rmarshack@marshackhays.com,
lbergini@marshackhays.com;ecfmarshackhays@gmail.com
Gregory A Martin gmartin@winston.com
David J Mccarty dmccarty@sheppardmullin.com, pibsen@sheppardmullin.com
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 8 of 10
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
June 2012 F 9013-3.1.PROOF.SERVICE
DOCSOC/1581506v1/200430-0003
Reed M Mercado rmercado@sheppardmullin.com
Aron M Oliner roliner@duanemorris.com
Scott H Olson solson@seyfarth.com
Dean G Rallis drallis@sulmeyerlaw.com
Christopher O Rivas crivas@reedsmith.com
Kenneth N Russak krussak@frandzel.com, efiling@frandzel.com;dmoore@frandzel.com
Gregory M Salvato gsalvato@salvatolawoffices.com, calendar@salvatolawoffices.com
Mark C Schnitzer mschnitzer@rhlaw.com, mschnitzer@verizon.net
Benjamin Seigel bseigel@buchalter.com, IFS_filing@buchalter.com
Diane S Shaw diane.shaw@doj.ca.gov
Jason D Strabo jstrabo@mwe.com, losangelestrialdocket@mwe.com
Matthew J Troy matthew.troy@usdoj.gov
United States Trustee (RS) ustpregion16.rs.ecf@usdoj.gov
Anne A Uyeda auyeda@bmkattorneys.com
Annie Verdries verdries@lbbslaw.com
Brian D Wesley brian.wesley@doj.ca.gov
Service information continued on attached page
2. SERVED BY UNITED STATES MAIL:
On _____________, I served the following persons and/or entities at the last known addresses in this bankruptcy case or
adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States mail, first class,
postage prepaid, and addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will
be completed no later than 24 hours after the document is filed.
Service information continued on attached page
3. SERVED BY PERSONAL DELIVERY, OVERNIGHT MAIL, FACSIMILE TRANSMISSION OR EMAIL (state method
for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on August 31, 2012, I served the
following persons and/or entities by personal delivery, overnight mail service, or (for those who consented in writing to
such service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration
that personal delivery on, or overnight mail to, the judge will be completed no later than 24 hours after the document is
filed.
Honorable Meredith A. Jury (Personal Delivery)
U.S. Bankruptcy Court
3420 Twelfth Street, Suite 325 / Courtroom 301
Riverside, CA 92501-3819
Everett L Green (Personal Delivery)
Office of the US Trustee
3685 Main St Ste 300
Riverside, CA 92501
Twenty Largest Creditors:
Served on counsel via NEF:
2006 City of San Bernardino Taxable Pension Obligation Bonds, 2005, Series A
Wells Fargo Bank, N.A. Corporate Trust Services Special Accounts Group -
Jerrold Abeles abeles.jerry@arentfox.com
Mette H Kurth kurth.mette@arentfox.com
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 9 of 10
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
June 2012 F 9013-3.1.PROOF.SERVICE
DOCSOC/1581506v1/200430-0003
Kohl's Corporate Offices
N56 W17000 Ridgewood Drive
Menomonee Falls, Wisconsin 53051
Scott H Olson solson@seyfarth.com
US Bank, N.A., Trustee
633 West 5th Street, 24th Floor,
Los Angeles, California 90071
Jason D Strabo jstrabo@mwe.com, losangelestrialdocket@mwe.com
California Infrastructure Bank and Economic Development Bank
980 9th Street, Suite 900
Sacramento, California 95814
Diane Shaw diane.shaw@doj.ca.gov
Marquette Bank,
10000 W 151ST ST,
Orland Park, Illinois 60462
Thomas V Askounis taskounis@askounisdarcy.com
[The remainder of the List of 20 Largest Creditors are being served by the official claims agent; a separate proof of service
will be filed]
Service information continued on attached page
I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct.
August 31, 2012 Christine Pesis /s/ Christine Pesis
Date Printed Name Signature
Case 6:12-bk-28006-MJ Doc 126 Filed 08/31/12 Entered 08/31/12 12:05:01 Desc
Main Document Page 10 of 10