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HomeMy WebLinkAbout07/28/2014 B A K E R S F I E L D Staff: Committee members: Steven Teglia, Assistant to the City Manager Willie Rivera, Chair Ken Weir Terry Maxwell REGULAR MEETING OF THE BUDGET AND FINANCE COMMITTEE of the City Council - City of Bakersfield Monday, July 28, 2014 12:00 p.m. City Hall North 1600 Truxtun Avenue, Bakersfield, CA 93301 First Floor, Conference Room A AGENDA 1. ROLL CALL 2. ADOPT APRIL 28, 2014 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Continued Discussion and Committee Recommendation Regarding the Open Gov Budget Data Sharing Website 1) Presentation by Open Gov 2) Staff Comments B. Update Report and Committee Recommendation Regarding the Possibility of Participating in the PACE/HERO Program – Teglia 5. COMMITTEE COMMENTS 6. ADJOURNMENT B A K E R S F I E L D /s/ Steven Teglia Committee Members: Staff: Steven Teglia Willie Rivera, Chair Assistant to the City Manager Ken Weir Terry Maxwell AGENDA SUMMARY REPORT REGULAR MEETING OF THE BUDGET AND FINANCE COMMITTEE Monday, April 28, 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 - Absent City Staff: Alan Tandy, City Manager Rhonda Smiley, Assistant to the 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 Joshua Rudnick, Deputy City Attorney Nelson Smith, Finance Director Tera Loveless, Accountant II – Financial Services Randy McKeegan, Accounting Supervisor – Financial Services Art Chianello, Water Resources Manager Nick Fidler, Acting Public Works Director Joe Navarro, Business Manager – Recreation and Parks Department Others present: Jennifer Pitcher, Kern Citizens for Sustainable Government Robert Braley, Citizen Members of the Media AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, April 28, 2014 Page 2 2. ADOPT FEBRUARY 26, 2014 AGENDA SUMMARY REPORT The Report was unanimously adopted as submitted. Note: It was incorrectly identified on the agenda as the January 27, 2014 Agenda Summary Report. 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. Discussion regarding the Open Gov Budget Data Sharing Website Finance Director Smith reported that Councilmember Johnson referred this item to Committee at the City Council meeting on March 5, 2014. During the Public Statement portion of that meeting, a brief presentation of the Open Gov software was given by a representative of the Kern Citizens for Sustainable Government. He stated that the City is in support of transparency, and has, for many years, posted financial statements and all Budget documents on the website, which is fully accessible by the public. Further, the Government Finance Officers Association (GFOA) requires a high level of disclosure and transparency, and the City of Bakersfield has repeatedly met that criterion, as evidenced by multiple awards bestowed on the City by the Association. Staff researched both the Open Gov software and a product produced by another firm, Socrata. Cost estimates were received. The yearly cost for the Open Gov software is $12,000 and $22,000 per year for the Socrata product. Assistant to the City Manager Huot provided a practical overview of the Budget information posted on the City’s website, including how to use the navigational tools. The format is considered to be user friendly. All Budget documents from 1999 forward, including a condensed “Budget in Brief”, are posted. At the Committee’s request, Finance Director Smith accessed the Open Gov website, and presented a random overview of its capabilities. He indicated that it is an alternative method to viewing the information that is already available on the City’s website. City Manager Tandy added that other than being able to generate a preferred type of chart, all of the information is the same as what the City already has, and has had for a long time. Ms. Pitcher stated that some of the Board Members from the Kern Citizens for Sustainable Government use this software for their own company. It assists them with seeing trends, and she believes that is might help the public interpret the City’s finances more easily. She also thought it might be helpful for City staff to use in developing the Budget, and that it would increase the amount of transparency that currently exists. AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, April 28, 2014 Page 3 Committee Chair Rivera asked when the City’s Budget information would be posted on our website. Assistant to the City Manager Huot said that it will be posted the day after the City Council meeting during which the Council is provided the information. The Telecommunications Division will upload the entire Council meeting for viewing, also. Committee member Weir asked if there is any advantage to the City using this software. City Manager Tandy said that staff does not see an advantage. The information is posted in both comprehensive and condensed formats for the public. Committee member Weir asked if staff had received any negative comments from the public about the Budget that is posted online. Both City Manager Tandy and Finance Director Smith said that very few calls are received; and in response to those that are, those individuals are either walked through the online document, provided with a DVD of the document, or provided with an electronic copy of the specific section they wanted to see. Committee member Weir asked if this would be an added burden to the budget process, or if would change that process. Finance Director Smith said that the process itself would not change. It would involve extra work on staff’s part, however, as they would have to map out the information the first time, then update the data on an annual basis. Staff believes that it would not be worth the effort or expense for the few individuals who look at the Budget online. City Manager Tandy added that there would be no benefit to staff. Committee member Weir asked if there were any pending state or federal issues that would require a standardization of formatting between cities or counties. City Manager Tandy said that GFOA does not have specific formatting criteria, but they are quite stringent on the data that must be made available, and it is that criteria by which each city and county budget is judged. Finance Director Smith added that GFOA strongly recommends that any financial documents that are posted on a governmental website, must be posted in their entirety. AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, April 28, 2014 Page 4 Committee member Weir said that perhaps this could be kept in mind for the future, but he does not see a use for it at the present time. Committee Chair Rivera agreed with that statement. He mentioned that the City’s website is in need of update. 5. DEFERRED BUSINESS A. Update on Validation Action City Attorney Gennaro provided a verbal report on the process and the current status of the City’s action. She said that this is a Court process that the City is using to approve or validate sources of funding and borrowing that will be used for TRIP projects. The City’s validation action was filed in Kern County Superior Court on November 13, 2013. The City is represented by Neil Arney and Mike Reppe of Kutak Rock, LLP. Mr. Reppe has made presentations to the City Council on this topic. The process involves statutory time limitations, after which adequate evidence and testimony is presented to the Court. If an objection is filed, the process becomes more complicated and lengthy. An administrative record must be created, and a hearing is scheduled. In the City’s case, an objection was filed by the Westpark Homeowners Association, which is represented by the law firm of Brumfield and Hagan. Two status conferences have been held, and the case will appear before Judge David Lampe, who set a follow-up case management conference on May 21, 2014. The City Clerk is working diligently to put the administrative record together, and it is estimated, when finalized, to contain 3,000 to 5,000 pages for the Court’s review. It is the City’s intention to lodge the administrative record with the Court by May 21, 2014. Judge Lampe will then schedule a hearing date for oral arguments and provide a deadline for receipt of required backup documentation from both parties. The Court is currently calendaring hearings in March of 2015, so there will be a lengthy waiting period. City Manager Tandy stated that the City will not need to formally borrow any funds for at least two years, so the delay will not encroach upon that plan. B. Continued Discussion regarding Funding for TRIP Projects Committee member Maxwell asked that, due to his inability to attend this meeting, this item be deferred. 6. COMMITTEE COMMENTS None 7. ADJOURNMENT The meeting adjourned at 12:35 p.m. OFFICE OF THE CITY MANAGER MEMORANDUM June 27, 2014 TO: Alan Tandy, City Manager FROM: Steven Teglia, Assistant to the City Manager ST SUBJECT: Residential Property Assessed Clean Energy (PACE) Program Update ______________________________________________________________________________ On February 26, 2014, staff provided the Budget and Finance Committee (Committee) with an update regarding the status of residential PACE programs in California. This discussion included the potential of the City of Bakersfield joining the HERO Residential PACE program. Staff provided the committee members with a packet of information related to residential PACE and the HERO program (that information is provided once again for reference). During the committee discussion staff conveyed concern in moving forward with joining the HERO program at the time, due to the position the Federal Housing Finance Agency (FHFA) had taken regarding “first-lien” residential PACE programs. In response to the FHFA position, the state of California had initiated the process to create a loss reserve fund, in an attempt to mitigate FHFA’s concerns. At the conclusion of the February 26th meeting, staff requested more time to evaluate the impact of the loss reserve fund on FHFA’s position. The Committee concurred with this request and directed staff to come back to the Committee or the full council as appropriate. Since that time, staff has received a copy of a letter from FHFA to the Governor’s Office (attached) which reiterates FHFA’s position. In addition, staff has been in discussions with representatives from both the California FIRST and HERO programs regarding the proliferation of residential PACE in California. Staff felt an update discussion with the Committee was warranted as new information has been received and should be considered with respect to moving forward with residential PACE opportunities in Bakersfield.