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Home My WebLink About02/26/2014BAKERSFIELD /s / sf�v� Te,g (,i,a- Staff: Steven Teglia Assistant to the City Manager AGENDA SUMMARY REPORT SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE Committee Mei Willie Rivera, Cr Ken Weir Terry Maxwell Wednesday, February 26, 2014 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue, Bakersfield, CA 93301 The meeting was called to order at 12:04 p.m. 1. ROLL CALL Committee members: Councilmember Willie Rivera, Chair Vice Mayor Ken Weir Councilmember Terry Maxwell City Staff: Alan Tandy, City Manager Steven Teglia, Assistant to the City Manager Chris Huot, Assistant to the City Manager Caleb Blaschke, Management Assistant-City Manager's Office Virginia Gennaro, City Attorney Josh Rudnick, Deputy City Attorney Andrew Heglund, Deputy City Attorney Nelson Smith, Finance Director Sandra Jimenez, Assistant Finance Director Doug Mclsaac, Community Development Director Ryan Bland, Community Development Coordinator Nina Carter, Associate Planner Lyle Martin, Assistant Chief of Police Others present: fli ic+ir� I?oili�h I—IG17�1 AGENDA SU� Budget and Finance Comr Wednesday, Fe 4. DEFERRED BUSINESS A. Continued Discussion and Committee Recommendation re__qardir Safety Component of the Proposed FY 2014-15 CDBG Action Plan City Manager Tandy provided a review of the actions taken c the last Committee meeting. The CDBG Action Plan was forv� City Council for consideration, minus the current componen Police Officers. Committee Chair Rivera had asked that that component be i replaced with additional curb, gutter, sidewalks and streets He had directed staff to come back with options to continu officers through alternative means. Mr. Tandy said funding the officers from the Council Conti could be considered. The preliminary budget outlook is that � revenues will remain static; however City staff has only ju� budget review process, so it is too early to have certainty w that will change. The CDBG amount now allocated towards $230,000, and there is $250,000 in Council Contingency, wr rarely used. Vice Mayor Weir said he would support the suggestion; remaining Councilmembers would have to be cautioned tha would remain in the fund for unforeseen expenses. Committee member Maxwell asked if there was a fundinc could be used as an alternative to the Council Contingency f� City Manager Tandy said that as staff gets further into the bu� another source may become available. Committee Chair Rivera reiterated his direction from the pre� that more than one option was to be presented. He cor interested in finding a revenue source other than CDBG to officers. He requested that staff address this issue whe Department's proposed budget is presented to the City Cou he asked if it was necessary to address it sooner. Community Development Director Mclsaac said that the fu �ffi�Prs hc�s c�IrPC�c�v hPPn rPm�vPC� fr�m thP C'f�RC� Ac�ti AGENDA SU� Budget and Finance Comr Wednesday, Fe Committee Chair Rivera made a motion to refer the item ba� Council for discussion when the departmental budget K presented. The goal is to retain the two officers, but use a f� different than CDBG. He is not certain that using Council would be his preference. Committee member Weir asked about the current status of thE Finance Director Smith said that they are currently budgete funds within the Police Department's General Fund, and extends until October. As the budget process is in the e< review, and the amount of revenue that can be projected 1 and sales taxes is uncertain, staff will require additional time alternative funding options for the two officers that would noi the amount of the General Fund for safety positions that I been approved. City Manager Tandy assured the Committee that the I compliment will not be reduced; however, it is not possible c present clear options for funding the officers from a sourc CDBG. A motion to continue the item for review by the full Coun� budget process was unanimously approved. 5. NEW BUSINESS A. Discussion and Committee Recommendation reaardinq the Participating in the PACE/HERO Program Assistant to the City Manager Teglia provided an ovei information that had been included in the meeting packet. F Mr. Reilich from the HERO program, who was available to ans� A slide show was presented. Property Assessed Clean Energy (PACE) is a financinc commercial and residential energy and water efficiency pro assessment that allows property owners to finance up-front cc such projects and repay the debt through contractual as property taxes over a period of 5-25 years. The properi collateral. Participation in the program is voluntary. In Ca IiPn� ��nPr�PC�P m�rtc�c�c�PS_ AGENDA SU� Budget and Finance Comr Wednesday, Fe In 2012, the Federal Housing and Finance Agency (FHFA) issuE to Fannie Mae and Freddie Mac to adjust the loan/value ratio maximum PACE loan that is available, and to reduce tl debt/income ratio to account for additional obligations as� possible future residential loans. While this information caused ambiguity for residential pro� commercial, industrial and multi-family property owners who v� advantage of the program have been able to do so. In response to the concerns by FHFA, Governor Brown signed � This legislation allows for the creation of a loss reserve fur provide reimbursement to a PACE program provider or lende losses that may be incurred with a forced sale or foreclosure c property. Two PACE programs are currently offered to Bakersfield industrial and multi-family property owners, California First and to possible impacts to residential property owners from the FH staff determined that the best course of action is to refrain fror program to them until clarity is obtained. Mr. Reilich reported that 122 cities in California have opted i program and offered it to homeowners. The assessment is att property; so when the residence is sold, the new homeownE be responsible for the assessment. SB-96 secures the position of the lender under any circumst providers are required to pay into the fund, which has a startir $10 million. Once the program validation process homeowners. is approved by the City Council, therE that takes 3-5 months before it can � Letters have been sent to FHFA asking for feedback on their date, no response has been received. Full disclosure is provided to homeowners that their lender ma� the assessment be baid off before the home can be sold. AGENDA SU� Budget and Finance Comr Wednesday, Fe Community Development Director Mclsaac agreed with the believes that the program is beneficial. He said that hc revenue fund in place might allow for a homeowner to qua that might otherwise have been denied. Committee member Maxwell asked about the term of the loc said that it is typically based on the useful life of the product; homeowner can specify the term, from 5-25 years. Assistant to the City Manager Teglia stated that each P� provider has their own qualification requirements; but if a upside down on their mortgage, they would not qualify for a P The initial funding of the loss reserve fund in the amount of projected by the Governor's office to last 10 years. The requi PACE providers to contribute towards the fund is an attemp the duration of availability. This fund is a security measure, v provide temporary relief to the lender, and ultimately to avoid Committee Chair Rivera asked if staff anticipates a response Assistant to the City Manager Teglia said that they may not res but may choose to communicate with the Governor's office know more in the next few months, at which time the i agendized for continued discussion. Mr. Reilich suggested that when additional information is recei be referred directly to the City Council for discussion rather tr back to Committee. City Manager Tandy said that if there is clarity, staff can forwa Council; however, if it continues to be vague, further Commit� may be required. Committee Chair Rivera approved the recommendation, c motion to that affect. The motion was unanimously approved 6. COMMITTEE COMMENTS None