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HomeMy WebLinkAbout11/24/2014 B A K E R S F I E L D         /s/ Steven Teglia Committee Members: Staff: Chris Huot Willie Rivera, Chair Assistant to the City Manager Ken Weir Terry Maxwell AGENDA SUMMARY REPORT REGULAR MEETING OF THE BUDGET AND FINANCE COMMITTEE Monday, November 24, 2014 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue, Bakersfield, CA 93301 The meeting was called to order at 12:00 p.m. 1. ROLL CALL Committee members: Councilmember Willie Rivera, Chair arrived at 12:39 p.m. 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 Christopher Gerry, Administrative Analyst Caleb Blaschke, Management Assistant Virginia Gennaro, City Attorney Josh Rudnick, Deputy City Attorney Andy Heglund, Deputy City Attorney Nelson Smith, Finance Director Randy McKeegan, Finance Accounting Supervisor Don Anderson, Property Management Manager Nick Fidler, Public Works Director Ted Wright, Assistant Public Work Director Kristina Budak, Thomas Roads Improvement Program (TRIP) Engineer William Knoetgen, Thomas Roads Improvement Program Parsons Manager Greg Gharib, Thomas Roads Improvement Program Parsons Senior Contracts Officer Janet Wheeler, Thomas Roads Improvement Program Parsons Community Outreach Others present: Theo Douglas, The Bakersfield Californian AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, November 24, 2014 Page 2 2. ADOPT AUGUST 25, 2014 AGENDA SUMMARY REPORT The Report was unanimously adopted as submitted. 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS A. Continued Discussion regarding Funding for TRIP Projects – Fidler/Gennaro/Smith The following responses where provided to Committee member Maxwell’s questions regarding the costs associated with the 24th Street widening project, recapture of federal funds for terminated TRIP projects, the current spending on non-TRIP related road improvements, and current resources available after revenue sources were committed during the August 25, 2014 Budget and Finance Committee meeting. Public Works Director Fidler stated the cost estimate to widen the one way streets between F and M Streets is $2.4 million. The estimate includes cost estimates to install necessary drainage improvements, resurfacing and reconstruction of the roadway, and restriping of the pavement to accommodate the 4th lane in each direction between M Street and F Street. The design is in the initial phase of the Final Design and a revised cost estimate will be available at a later date. City Attorney Gennaro stated that there are no documents which clearly articulate what federal money the City would be responsible to repay if any TRIP projects were terminated. In reviewing several documents, the City may be responsible to repay “preliminary engineering” work, although what costs that would include is uncertain. Finance Director Smith stated the five year average of approximately $12.3 million has been used for non-TRIP road maintenance and road construction projects. The current fiscal year budget includes approximately $21 million for non-TRIP road maintenance projects. A combination of General Fund and Capital Outlay fund revenues which are not being pledged for the TRIP borrowing will remain available for such projects. In addition, Community Development Block Grant (CDBG) funds are also used for a variety of road improvements in specific qualified areas. Committee member Maxwell asked if it was possible to move forward with resurfacing 23rd and 24th street between M and F Streets with only three lanes. Public Works Director Fidler stated the resurface entails a significant amount of design work including traffic flow adjustments, curb height adjustments to comply with the Americans Disability Act (ADA), and drainage issues. AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, November 24, 2014 Page 3 City Manager Tandy also stated the design for the section mentioned has not been completed. In order to comply with the ADA curb requirements, several slivers of property acquisition will be required as well. Moving forward with the project before design completion would only add more costs to the overall project. Committee member Maxwell asked the City Attorney if any examples exist in which someone has been required to repay monies to the Federal Government on projects that were not completed. City Attorney Gennaro stated her office was unable to find any such cases. Committee member Maxwell asked if the City would lose the pledged Gas Tax, Transportation Development Fees, and Utility Surcharge Fees funds if the City did not proceed with borrowing money for the Centennial Corridor. Finance Director Smith stated those funds would not be lost. The funds would need to be used on road maintenance projects; there a specific list of projects that Transportation Development Fees can be used for. City Manager Tandy stated Gas Tax funds can only be used on street projects as well. 5. NEW BUSINESS A. Discussion regarding the Thomas Roads Improvement Program Name – Tandy City Manager Tandy stated there are several complexities associated with changing the Thomas Roads Improvements Program acronym TRIP. It is highly recognized by several agencies including but not limited to the California Transportation Commission, Caltrans, the Federal Highway Administration, and the US Environmental Protection Agency. The majority of projects are all under construction under the TRIP name which would cause marketing and continuity difficulties for the remaining projects. The three other members of the partnership also do not wish to change the name. After the completion of the final TRIP project, the name TRIP will no longer be utilized. B. Discussion regarding TRIP Right-of-Way – Smith Finance Director Smith stated a status report on property acquisition for the TRIP program will be updated quarterly. He provided a summarization of the September 2014 report. Committee member Maxwell asked if there were any demolition costs with the Rosedale Highway Widening Project. Property Management Manager Anderson stated there were none because there was no acquisition of any complete structures. AGENDA SUMMARY REPORT Budget and Finance Committee Meeting Monday, November 24, 2014 Page 4 Committee member Maxwell also asked were the legal costs estimates were being budgeted. City Attorney Gennaro stated that those costs would be identified under support costs within the provided report. Finance Director Smith stated that the costs could also be found in Administrative Settlements and Damages/Goodwill costs. Committee member Maxwell requested the City Attorney and the Finance Director work together to define the legal costs and identify them in a separate line item. Committee member Maxwell asked if businesses located in commercial developments would be relocated. Property Management Manager Anderson stated all occupants, including businesses, will be relocated in the acquisition of a full property, whether residential or commercial. C. Discussion regarding the General Fund Balance Policy – Smith Finance Director Smith stated that in a recent review by the Government Finance Officers Association (GFOA), they emphasized the City establish a written policy to comply with the Governmental Accounting Standard Board (GASB) statement establishing fund balance classifications creating a hierarchy based primarily on the extent to which a government is bound to observe limitations imposed upon the use of the resources reported in governmental funds. These limitations are generated from either formal action by the City Council, decisions by management or external funding entities. The GASB recommends that a formal written policy be established by a government to properly determine the composition of its ending fund balance. The City would be in compliance with the GASB statement and qualify for the annual certificate for financial reporting that the GFOA awards by adopting such a policy. Vice-Mayor Weir made a motion to approve the policy and present the Resolution to the full City Council for approval. The motion was unanimously approved. 6. COMMITTEE COMMENTS None 7. ADJOURNMENT The meeting adjourned at 12:54 p.m.