HomeMy WebLinkAbout01/25/2016
B A K E R S F I E L D
Staff: Committee members:
Chris Huot, Assistant City Manager Willie Rivera, Chair
Ken Weir
Chris Parlier
SPECIAL MEETING OF THE
BUDGET AND FINANCE COMMITTEE
of the City Council - City of Bakersfield
Monday, January 25, 2016
12:00 p.m.
City Hall North
1600 Truxtun Avenue, Bakersfield, CA 93301
First Floor, Conference Room A
AGENDA
1. ROLL CALL
2. ADOPT AUGUST 17, 2015 AGENDA SUMMARY REPORT
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
A. Discussion Regarding the Local Vendor Policy – Huot / Smith
5. NEW BUSINESS
A. Discussion Regarding Additional Funding for Spay/Neuter Program – Tandy/Teglia
B. Discussion Regarding Economic Opportunity Action Plan – McIsaac
C. Discussion and Committee Recommendation Regarding Annual Audit Reports
ending FY 2015 – Smith
D. Discussion and Committee Recommendation Regarding Adoption of the 2016
Committee Meeting Schedule – Huot
6. COMMITTEE COMMENTS
7. ADJOURNMENT
B A K E R S F I E L D
Committee Members:
Staff: Chris Huot Councilmember, Willie Rivera, Chair
Assistant City Manager Councilmember, Ken Weir
Councilmember, Chris Parlier
AGENDA SUMMARY REPORT
SPECIAL MEETING OF THE
BUDGET AND FINANCE COMMITTEE
Monday, August 17, 2015
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 member:
Councilmember, Willie Rivera - Chair
Councilmember, Ken Weir
Councilmember, Chris Parlier
City Staff:
Alan Tandy, City Manager
Steven Teglia, Assistant City Manager
Chris Huot, Assistant City Manager
Chris Gerry, Administrative Analyst
Virginia Gennaro, City Attorney
Joshua Rudnick, Deputy City Attorney
Nelson Smith, Finance Director
Kim Berrigan, Purchasing Officer
Nick Fidler, Public Works Director
Navdip Drewal, Civil Engineer IV – Public Works Department
Additional Attendees:
Members of the media
2. ADOPT MARCH 19, 2015 AGENDA SUMMARY REPORT
The Report was adopted as submitted.
AGENDA SUMMARY REPORT
Budget and Finance Committee Meeting
Monday, August 17, 2015
Page 2
3. PUBLIC STATEMENTS
None
4. DEFERRED BUSINESS
A. Discussion Regarding the Local Vendor Policy
According to Committee Chair Rivera, the item is tabled.
5. NEW BUSINESS
A. Discussion Regarding Requests for Proposals and Bid Practices
Finance Director Smith referenced a memo that had been included in the
packet, summarizing specific Bakersfield Municipal Code sections and
internal purchasing guidelines that are currently followed. The information
resulted from a broad discussion on bidding annual contracts and the
Request for Proposal (RFP) process.
Committee Chair Rivera stated that he referred this item to Committee
based on the recent renewal of a contract for security services at the
Parking Garage at 18th and Eye Streets. He asked about the customary
practice to renew contracts with individual vendors; and, in this case, when
the cost had increased. He also asked if there was a threshold to trigger
when a new bidding process would be initiated for projects.
Finance Director Smith said that contracts in larger amounts would be bid
more often than those in smaller amounts. Another factor is when a
measurable amount of vendor interest in a project, the bid process would
occur more frequently than when there is little interest shown. Lastly,
economic conditions are considered. During the economic downturn,
projects were bid more often than what might take place in inflationary
times, as contractors were bidding in lower amounts because they needed
the work. In regard to the contract extension for security services at the
Parking Garage, the amount increased due to the increase in the minimum
wage.
Committee Chair Rivera stated that he believes the City’s process may not
be open and fair, and perhaps does not encourage vendors to approach
staff on their own. He believed that the only cost associated with preparing
for a new bid is staff time, which is already covered. He noted that the
highlighted Municipal Code sections do not reference a time line that
compels the City to initiate a new bid on a project.
Finance Director Smith said that not all projects are open to bids, as it
depends on the type of services in the contract.
AGENDA SUMMARY REPORT
Budget and Finance Committee Meeting
Monday, August 17, 2015
Page 3
Committee Chair Rivera reminded staff that he had previously reported
about an experience he had in the Parking Garage that he believes would
have necessitated new bids. He asked for the City Attorney’s assistance in
formulating the establishment of a definitive threshold that would trigger
new bids on a project.
City Attorney Gennaro indicated that the City Council has the option at any
time of directing staff to issue new bids or an RFP on a project, the last of
which would be when the contract is brought before them for approval.
She recommended against a definitive policy that might reduce the City
Council’s flexibility.
Committee Chair Rivera asked what challenges might be involved when
issuing a new RFP.
Public Works Director Fidler said that a considerable amount of staff time is
involved, including composing the specifications, thoroughly reviewing
each Statement of Qualifications that is received, and eventually training
the contractor. Most often, when a contractor has worked with the City
before, performance measures are understood and followed; and if any
costs increase, it is usually those for a cost of living adjustment or prevailing
wage increase.
City Attorney Gennaro added that the RFP contains those specific
requirements reported by Mr. Fidler and a draft contract, so that the bidder
is aware of all provisions, including the term of the contract and potential
extension(s).
City Manager Tandy said that a list of contracts that resulted from the
bidding process had been provided. He offered to generate a separate list
of projects that were the result of the RFP process.
Committee Chair Rivera clarified with Finance Director Smith the contents of
the information that had been provided in the packet. One detail in
particular was that any contract in an amount less than $40,000 was a
Department Contract, and those that exceeded that amount had been
approved by the City Council.
Committee Chair Rivera said that his preference is to define a specific
mechanism that would provide more control over the process.
City Attorney Gennaro suggested that after staff assembles the requested
list, that a new Council Policy be proposed that would address the bidding
and RFP processes.
AGENDA SUMMARY REPORT
Budget and Finance Committee Meeting
Monday, August 17, 2015
Page 4
Committee Chair Rivera directed staff to produce information about
Department Contracts that would include start dates on the original
contracts, start dates on any of those contracts that had been amended, if
there had been a change in price, and what may have caused the
change in price if there had been one.
Finance Director Smith noted that some contracts contain a cost escalation
feature based on either the Consumer Price Index or Consumer
Construction index, depending upon the type of work involved.
City Manager Tandy reiterated that staff offered to provide a list of those
contracts that resulted from the RFP process, so that that similar information
to that of the bidding process would be available.
Committee member Weir stated that there has rarely been an issue with the
current process, and he does not object to staff having discretion in such
matters. He recommended that should a Councilmember develop a
concern over a certain project or contract that it be brought to light for
discussion and eventual resolution.
Committee member Parlier believes that most issues related to the security
contract at the Parking Garage involve the lack of adequate oversight by
supervisors.
B. Discussion and Committee Recommendation Regarding Adoption of the
2015 Committee Meeting Schedule
Assistant City Manager Huot reported that an annual schedule had been
ascertained; however, since the Committee had not been meeting
regularly, no formal calendar had been adopted. Dates for the remainder
of the year had been identified and were noted on the draft calendar.
The Committee unanimously approved the 2015 calendar of meetings.
6. COMMITTEE COMMENTS
None
7. ADJOURNMENT
The meeting adjourned at 12:25 p.m.
OFFICE OF THE CITY MANAGER
MEMORANDUM
January 22, 2016
TO: Alan Tandy, City Manager
FROM: Chris Huot, Assistant City Manager CH
SUBJECT: Council Referral to Budget and Finance – Local Vendor Preference
Policy
______________________________________________________________________________
At the May 7, 2014 City Council Meeting, Councilmember Rivera requested the Budget
and Finance Committee consider a different type of local vendor preference policy.
The item was placed on the August 25, 2014 and August 17, 2015 Budget and Finance
Committee meeting agendas. During both meetings, Chairman Rivera requested the
item be deferred to a future committee meeting for discussion.
Background
Attached are two documents which provide background on the current status of the
local vendor preference policy.
Attachment #1: Administrative Report from March 7, 2012 City Council Meeting, which
provides background information on the history of the local vendor preference policy,
as well as outlines the Budget and Finance Committee’s recommended amendments
to the policy at that time. At the March 7th Council meeting, Resolution 026-12 was
unanimously approved, which increased the local vendor preference from 1 to 3
percent on bids that meet certain guidelines.
Attachment #2: Council Resolution 026-12, which outlines the current local vendor bid
preference and how it applies to the bidding process.
Further discussion on the local vendor preference took place at the Budget and
Finance Committee meeting on November 25, 2013. The Committee unanimously
voted to maintain the policy in its current form, with no further action taken.
Bakersfield
Economic Opportunity Area Plan
SUMMARY
WHAT. The Bakersfield Economic Opportunity Area (EOA) Plan is a locally initiated development
tool that uses tax increment financing to promote economic growth within specific geographic
areas throughout Bakersfield.
WHERE. Staff recommends two specific areas (Downtown and Airport) to focus our initial efforts.
An additional four areas are under consideration based upon their need for supplemental
economic development activities.
WHEN. The City currently receives an annual allocation of property tax revenue from
homeowners and businesses, which is appropriated to the General Fund. If adopted, the EOA
Plan would “freeze” the assessed property value for the area at a specified year, and any
subsequent growth in property tax revenues would be allocated to a separate fund to be used
toward economic revitalization for that specific area.
WHY. Ideally, the EOA Plan will facilitate initial capital investment, and continued reinvestment
of the tax increment funds into each of the identified areas that need stimulation. These
improvements will result in new growth via an increased investment interest by private
businesses, which will yield higher property values and increased property tax revenue.
HOW. Funds will be used for activities that stimulate growth in the EOA Plan areas, including:
Development: Rehabilitation, demolition, and/or renovation of vacant or under-used
buildings and street facades, site preparation activities, property acquisition assistance,
beautification, branding efforts, etc.
Infrastructure Improvements: Upgrades to storm drains, streets and alleys, curb and gutter,
landscape and median enhancements, pedestrian connectivity, etc.
Financial Incentives: Low rate loans, grants, fee reductions, etc.
Staff estimates that the EOA Plan will yield a tax increment amount between $20,000 to $250,000
annually for economic development activities. The City will have the ability to suspend the EOA
Plan at any time if there is economic hardship to the General Fund. Following expiration of the
Plan, the tax increment would be redirected back into the General Fund.
WHO. Staff shall present EOA Plan accomplishments to the City Council during the annual
budgetary process. City Council may set additional policy and direction related to the EOA
Plan, and may request revisions to the EOA Plan’s priorities anytime through the referral process.
NEXT STEPS. The EOA Plan is currently conceptual based upon existing programs and best
practices. The next steps include:
Further refinement of the EOA Plan areas and boundaries
Further define each concept contingent upon approval of the EOA Plan
Develop program guidelines for developers and businesses who wish to use the EOA Plan
City of Bakersfield
Economic Opportunity Area Plan
Staff Contacts
Paul Johnson, Principal Planner
Jacqui Kitchen, Planning Director
Douglas McIsaac, Community Development Director
DevPln@bakersfieldcity.us
City of Bakersfield Economic Opportunity Area Plan
1
Table of Contents
1. Introduction ......................................................................................................................... 2
2. Tax Increment Financing .................................................................................................... 2
2.1. Funding Source ....................................................................................................... 2
2.2. Example ................................................................................................................... 3
3. Economic Opportunity Areas ............................................................................................ 4
3.1. Downtown Economic Opportunity Area ............................................................ 4
3.2. Airport Economic Opportunity Area .................................................................... 6
4. Implementation Plan .......................................................................................................... 8
4.1. Adoption of an Ordinance ................................................................................... 8
4.2. Approval of Economic Development Activities ................................................ 9
4.3. Continual Transparency ...................................................................................... 10
5. Conclusion ........................................................................................................................ 10
Attachments
A. Economic Opportunity Areas (Under Initial Consideration)
B. Assessed Values (2012/2013 – 2014/2015)
C. Downtown Economic Opportunity Area
D. Airport Economic Opportunity Area
City of Bakersfield Economic Opportunity Area Plan
2
1. Introduction
The City of Bakersfield’s Economic Opportunity Area Plan (Plan) is a locally initiated
program that uses tax increment financing to promote economic growth within
specific geographic areas in Bakersfield. The Plan is partially modeled after previous
statewide redevelopment concepts, but conversely more flexible to meet the
demands of specific areas. Ultimately, the implementation of this Plan should
facilitate more private sector investments by creating more tax revenue, promoting
businesses growth, and developing new jobs.
The Plan first outlines the concept of tax increment financing as a commitment to
revitalize specific areas. Next, the Plan addresses the concept of Economic
Opportunity Areas (EOAs), including a description of the first two proposed areas
and respective economic development activities. Finally, the framework for the
implementation plan describes the process for creating EOAs and the review
process to ensure that the economic development activities align with the City
Council’s priorities. Please note this is a working document that is subject to revisions
as the Plan develops over time. In addition, this Plan is a pilot program, and four
additional areas for future implementation are under consideration as well. A map
of all areas that were under initial consideration can be found as Attachment A.
2. Tax Increment Financing
When the private market does not provide sufficient capital and economic
development activities to a specific area, public actions may be necessary to
stimulate growth. This public action may include public investments, capital
improvements, enhanced public services, technical assistance, tax benefits, and
other types of stimuli. Tax increment financing may serve as a mechanism to
develop and encourage new business, enable existing business retention and
expansion, and provide other economic development opportunities.
2.1. Funding Source
The City annually receives an allocation of property tax revenue from
homeowners and businesses in Bakersfield. This revenue is subsequently
appropriated to the General Fund to provide for a variety of municipal
services. If the City Council adopts this Plan, the growth in property tax revenue
from these specific areas would remain in the respective areas to fund
economic development activities.
City of Bakersfield Economic Opportunity Area Plan
3
To explain, the assessed property value in a defined area is “frozen” at a
specific year, which is referred to as the base year. On an annual basis, all
property tax revenue collected above the base year (tax increment) is
allocated toward a special fund to apply toward meeting the Plan’s priorities.
Following the expiration of the Plan, the tax increment is redirected back into
the General Fund.
Ideally, the continual reinvestment of tax increment into a specific area raises
the assessed property values above where they would have been without such
improvements. With higher values, property tax revenue naturally rises as well.
2.2. Example
Imagine a defined area that generates $500,000 in property tax revenue
annually. The City Council approves this Plan, which subsequently establishes
the base year. After the first two years of the Plan, the specific area now
generates $522,000 in property tax revenue. The difference in property tax
revenue between the base year ($500,000) and year 2 ($22,000) is the tax
increment. After 10 years, the specific area now generates $590,000 in property
tax revenue, which equates to $90,000 in tax increment. An explanation of this
example is displayed on the chart below.
Figure 1: Tax Increment Financing Example
$440,000k
$460,000k
$480,000k
$500,000k
$520,000k
$540,000k
$560,000k
$580,000k
$600,000k
Tax Increment
Property Tax (Base
Year)
City of Bakersfield Economic Opportunity Area Plan
4
3. Economic Opportunity Areas
As a pilot program, City staff recommends initially implementing two EOAs as
presented throughout this Plan. The recommended areas include the Downtown
Bakersfield EOA and the Airport EOA. These two initial areas were selected based on
their need for supplemental economic development activities, and if this Plan is
successful, additional areas for future implementation can be identified.
These boundaries include property zoned for commercial, industrial, and
manufacturing uses, which are uses that contain business and economic growth
opportunities. Also, please note that the Downtown Bakersfield EOA contains two
small areas that are zoned for multiple family dwellings and Planned Unit
Development. The areas were included to maintain a logical mapping boundary.
As previously mentioned, the purpose of this Plan is to develop and encourage new
business, promote existing business retention and expansion, and provide other
economic development opportunities. Funds will be allocated toward economic
development activities that include, but are not limited to:
Development: Rehabilitation and renovation of buildings, demolition and site
preparation, and property acquisition
Infrastructure Improvements: Upgrades to storm drains, streets and alleys, curb
and gutter, and landscape enhancements
Financial Incentives: Loans, grants, and fee reductions.
3.1. Downtown Economic Opportunity Area
The Downtown Bakersfield EOA is located in the heart of the city and
characterized as the central business district. The area profile includes:
Figure 2: Downtown Bakersfield EOA – Area Profile
Area Size: 970 Acres
No. of Parcels: 1,668 Parcels
Primary Zoning: Commercial, Manufacturing
Assessed Property Valuation (2014): $620,840,799
Property Tax Revenue (2013): $ 1,037,112
Property Tax Revenue (2014): $ 1,053,819
Tax Increment: $ 16,707
City of Bakersfield Economic Opportunity Area Plan
5
3.1.1. Investment Opportunities
This specific area offers a plethora of dining and shopping opportunities.
City staff recommends allocating the initial tax increment toward
constructing aesthetic improvements, filling vacant structures, and
infilling undeveloped property. The potential economic development
activities here include, but are not limited to:
Improve pedestrian connectivity (e.g., sidewalks, park benches)
Enhance visual characteristics (e.g., stamped concrete, kiosks)
Promote the arts and shopping district (e.g., street banner program)
Beautify medians and islands (e.g., install synthetic turf or pavers)
3.1.2. Financial Incentives
For the purposes of this Plan, financial incentives may include the loan
and grant programs, as follows:
Loans:
Low Interest Loan: Up to $50,000 with a term of not more than 10
years, or the remaining term of the Downtown Bakersfield EOA.
No Interest Loan: The City Council may waive all or a portion of a
loan’s interest based on the individual activity and its impact on
achieving the priorities set forth in the Downtown Bakersfield EOA.
Grants:
Facade Improvement Grant: Financial assistance to invest in exterior
building improvements (e.g., awnings, doors, windows, lighting). Up
to 25% of the improvements or $20,000, whichever is less.
Site Enhancement Grant: Financial assistance to invest in non-
structural improvements (e.g., sidewalk, parking lots, landscaping).
Up to 50% of the improvements or $10,000, whichever is less.
City of Bakersfield Economic Opportunity Area Plan
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Tenant Improvement Grant: Financial assistance to encourage new
and existing businesses to construct building improvements. Up to $10
per square foot with a maximum of $25,000.
Upper Floor Commercial Rehabilitation Grant: Financial assistance to
encourage property owners to rehabilitate upper floors, which are
often times vacant. Up to 50% of total improvements or $5,000 per
unit, whichever is less.
Upper Floor Residential Grant: Financial assistance to encourage the
property owners to convert upper floors of existing commercial
structures into residential units. Up to $7,500 per residential unit with a
maximum of $75,000 over the entire life of the project.
Fee Reductions:
Development Assistance: Financial assistance to encourage area
revitalization. Businesses must relocate to the area, expand, or
change the use of their existing building. Types of fees may include,
but are not limited to, transportation impacts, building permits and
inspections, water and sewer connections, water and sewer i mpacts,
and planning and zoning.
3.2. Airport Economic Opportunity Area
The Airport EOA is located in Southeast Bakersfield, and is anchored by the
Bakersfield Municipal Airport, which is a City-owned and operated 190-acre
general aviation airport. The area profile includes:
Figure 3: Airport EOA – Area Profile
Area Size: 929 Acres
No. of Parcels: 209 Parcels
Primary Zoning: Industrial, Manufacturing
Assessed Property Valuation (2014): $74,128,871
Property Tax Revenue (2013): $ 95,585
Property Tax Revenue (2014): $ 117,709
Tax Increment: $ 22,124
City of Bakersfield Economic Opportunity Area Plan
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Most of the land adjacent to the airport is lightly developed, and supports
warehousing and other types of storage uses. The area south of White Lane
consists of lightly developed or vacant land.
Please note that significant portions of land north and south of the airport have
development constraints due to the airport’s flight pattern. Acceptable uses in
the flight pattern include warehousing, two-story offices, and single-family
homes on existing residential lots. Unacceptable uses include retail,
manufacturing, hotels and motels, and residential subdivisions.
3.2.1. Investment Opportunities
This specific area offers excellent opportunities to develop into an
industrial cluster, especially for businesses that req uire sizeable amounts
of land. City staff recommends allocating any initial tax increment
toward filling vacant structures and infilling of undeveloped properties.
The potential economic development activities here include, but are
not limited to:
Incentives to fill vacant buildings
Incentives to develop vacant land
Environmental remediation and site preparation
3.2.2. Financial Incentives
For the purposes of this Plan, financial incentives may include the loan
and grant programs, as follows:
Loans:
Low Interest Loan: Up to $50,000 with a term of not more than 10
years, or the remaining term of the Airport EOA.
No Interest Loan: The City Council may waive all or a portion of a
loan’s interest based on the individual activity and its impact on
achieving the priorities of the Airport EOA.
City of Bakersfield Economic Opportunity Area Plan
8
Grants:
Underutilized Building Rehabilitation Grant: Financial assistance to
invest in businesses that provide retail, commercial, service industry,
warehouse, or other services. Up to 25% of the improvements or
$60,000, whichever is less.
Relocation and Expansion Grant: Financial assistance to encourage
companies to relocate to the Airport EOA and subsequently employ
a minimum of 15 jobs. Up to 25% of the eligible relocation expenses
or $60,000, whichever is less.
Rent/Lease Reimbursement Grant: Financial assistance to encourage
new businesses to relocate to the Airport EOA. Assistance includes a
rent reimbursement to assist businesses during the critical first year of
operation. Up to $7,500 during the first year with the condition that a
business enters into a multi-year lease and subsequently creates a
minimum of two jobs.
Fee Reductions:
Development Assistance: Financial assistance to encourage area
revitalization. Businesses must relocate to the area, expand, or
change the use of their existing building. Types of fees may include,
but are not limited to, transportation impacts, building permits and
inspections, water and sewer connections, water and sewer i mpacts,
and planning and zoning.
4. Implementation Plan
4.1. Adoption of an Ordinance
In order to establish the EOAs, City staff recommends adopting an ordinance.
The ordinance will provide City Council the flexibility to amend the EOAs by
resolution in the future. The ordinance shall mention in generality the concepts
related to establishing the EOAs, as follows:
Boundary: The boundary includes whole parcels as they appear on the
assessment roll. The focus of the boundary must be non-residential in nature.
City of Bakersfield Economic Opportunity Area Plan
9
Creation Date: The base year is July 1, 2014, and the duration of the EOAs
do not exceed an initial term of 10 years. At that time, the City Council
may extend the duration the program for a specified number of years, or
abolish the program.
Name: The EOAs are named to reflect the general locations.
List of Economic Development Activities: Provide a general list of authorized
economic development activities for each EOA.
Tax Increment Designation: Designate future tax increment received from
property tax revenue in the prescribed boundary toward economic
development activities.
Minimum and Maximum Tax Increment: Establish minimum and maximum
amounts of tax increment that is designated annually toward economic
development activities. City staff recommends setting forth minimum and
maximum amounts of $20,000 and $250,000, respectively. In addition, any
federal or state grants awarded to the City for projects within an Economic
Opportunity Area is applied toward the minimum and maximum amounts.
Tax Increment Financing Fund: Tax increment is held in a special fund
designated as the Tax Increment Financing Fund. The fund is segregated
from other City funds, and appropriated to the applicable department in
order to implement the Plan’s priorities.
Economic Hardship: City staff recommends that the City have the ability to
suspend the Plan if the City is facing or forecasting an economic hardship
to the General Fund. If necessary, the proposed suspension of the Plan will
be presented for City Council consideration.
4.2. Approval of Economic Development Activities
City staff shall request City Council consideration of specific economic
development activities through the annual budgetary process. It is through this
process that the City Council may set additional policy and direction related to
the Plan. The economic development activities shall be presented in broad
categories in order to have the flexibility in meeting business demands. In
addition, please note that the City Council reserves the right to request
revisions to the Plan’s priorities anytime through the referral process. A change
City of Bakersfield Economic Opportunity Area Plan
10
to the Plan’s priorities will require Council approval. City staff shall request City
Council consideration if proposing a deviation from the Plan as well.
4.3. Continual Transparency
Similar to the approval process, City staff shall present to the City Council the
Plan’s accomplishments during the annual budgetary process. In addition, City
staff shall continually document each request for economic development
assistance with keeping in mind the Plan’s priorities. Monitoring guidelines will
be further developed contingent upon the City Council’s approval of this Plan.
5. Conclusion
The various economic development activities contained within this Plan shall have
their own specific policies and procedures. Each activity is currently conceptual in
nature based upon existing programs and best practices. Therefore, City staff will
further define each concept contingent upon approval of the Plan. In summary,
City staff believes the implementation of this Plan will continue to make Bakersfield
the epicenter of development in the San Joaquin Valley.
34th ST CORRIDOROPPORTUNITY AREA(FUTURE)
HWY 58 / MT VERNONOPPORTUNITY AREA(FUTURE)
BAKERSFIELDAIRPORTOPPORTUNITY AREA
DOWNTOWN OPPORTUNITY AREA
EAST HILLSOPPORTUNITY AREA(FUTURE)
EAST BAKERSFIELDOPPORTUNITY AREA(FUTURE)
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/
Attachment A
Date: 1/6/2016
DOWNTOWN OPPORTUNITY AREA(TARGET)
BAKERSFIELDAIRPORTOPPORTUNITY AREA(TARGET)
Target EOA
Future EOA
Economic OpportunityAreas(Under Initial Consideration)
Attachment B
Assessed Values (2012/2013 – 2014/2015)
Below is an example of the assessed values from 2012/2013 through 2014/2015.
Downtown Bakersfield Economic Opportunity Area
Fiscal Year Tax Revenue
2012/2013 $ 999,724.40
2013/2014 $1,037,111.84
2014/2015 $1,053,819.38
Airport Economic Opportunity Area
Fiscal Year Tax Revenue
2012/2013 $ 89,202.74
2013/2014 $ 95,585.36
2014/2015 $ 117,709.12
0 540 1,08 0Feet
/
Date: 11/19/2015
DOWN TOWNECONOMICOPPORTUNIT Y AR EA
Zoning (city)
Commercial ZoneDesignations
C-O C ommercial andProfessional Office
C-1 Lim ited C ommercial
C-2 Commercial
C-B Central Business
C-C Civic C enter
Industrial ZoneDesignations
M-1 Light Manufacturing
M-2 GeneralManufacturing
Resource ZoneDesignations
OS Open Space
Residential ZoneDesignations
R-4 Lim ited M ultipleFamily Dw elling Z one - 1unit/600 sq. ft.
P.U .D. Planned UnitDevelopment
Other/Public ZoneDesignations
HOSP Hospital
P Parking (18 ac)
(2 ac)
(8 ac)
(2 ac)
(10 ac)
(40 ac)
(138 ac)
(279 ac)
(84 ac)
(12 ac)
(42 ac)
(976 ac)
ATTACHMENT C
24th ST
23rd ST
TRUXTUN AVE
CALIFORNIA AVE
E TRUXTUN AVE
24th ST
E CALIFOR NIA AVE
CHESTER AVE
CHESTER AVE
UNION AVE
UNION AVE
F ST
F ST
H ST
H ST
R ST
Q ST
N ST
M ST
L ST
V ST
O ST
21st ST
19th ST
17th ST
26th ST
28th ST
30th ST
34th ST
36th ST
38th ST
40th ST
22nd ST
18th ST
20th ST
BEECH ST
GOLDEN STATE AVE
GOLDEN STATE AVE
STATE ROUTE 178
E PLANZ RD
E PACHECO RD
M
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PACHECO RD
PLANZ RD
WATTS DR
PLANZ RD
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E WHITE LN
0 580 1,160Feet
/
ATTACHMENT D
Date: 1/6/2016
(69 ac)
(74 ac)
(522 ac)
(334 ac)
BAKERSFIELD AIRPORT OPPORTUNITY AREAZoning (city)
Industrial ZoneDesignations
M-1 Light Manufacturing
M-2 GeneralManufacturing
M-3 Heavy Industrial
(522 ac)
(74 ac)
(334 ac)
ADMINISTRATIVE REPORT
MEETING DATE: 1/20/2016Consent - Miscellaneous t.
TO:Honorable Mayor and City Council
FROM:Nelson K. Smith, Finance Director
DATE:12/18/2015
WARD:
SUBJECT:Audit Reports to be Referred to Budget and Finance Committee:
Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended June 30, 2015.
1.
Agreed Upon Conditions Report for the fiscal year ended June 30,
2015.
2.
Independent Auditors Report – Compliance with Contractual
Requirements relative to the Bakersfield Subregional Wastewater
Management Plan for the year ended June 30, 2015.
3.
Independent Auditors Report on Appropriations Limit Worksheet
(GANN Limit) of the City of Bakersfield for the fiscal year ended
June 30, 2015.
4.
STAFF RECOMMENDATION:
Staff recommends referral of reports to the Budget and Finance Committee.
BACKGROUND:
Staff requests the following items be referred to the Budget and Finance Committee, where the
reports may be reviewed and discussed at the committee level. The reports will come back to
the full Council after the Committee has completed their review.
1. The City’s Comprehensive Annual Financial Report (CAFR), commonly referred to as the
Annual Audit Report, for the fiscal year ended June 30, 2015 will be provided to the City Council
prior to the meeting date. A copy of the report will also be on file in the City Clerk’s office for
public review. The CAFR represents the City’s financial statements as of June 30, 2015, which
are audited by the accounting firm of Brown Armstrong Accountancy Corporation. The current
year audit opinion issued by the outside auditors indicates that the City complied, in all material
respects, with accounting principles generally accepted in the United States of America.
2. The Agreed Upon Conditions Report is designed to increase efficiency, internal controls
and/or financial reporting and includes any reportable conditions noted during the Audit. A copy
of this report will also be provided to the Council prior to the meeting date. A summary of
reported conditions are included in the report. The report also addresses conditions identified
in the prior year which have all been resolved to the auditors’ satisfaction.
3. Contract requirements contained in City of Bakersfield Agreement 76-153 as amended by
Agreements 76-153(5), 76-153(4), 77-44, 85-197 and 92-106 apply to operations of the
Bakersfield Sub-regional Wastewater management Plan. The City’s compliance with contract
requirements is audited on an annual basis. The current Compliance Report, issued by the
outside auditors, is attached for your review and indicates that there were no audit findings.
4. Attached is a letter from the City’s independent auditors Brown Armstrong Accountancy
Corporation indicating they have completed their annual review of the Appropriations Limit
Worksheet prepared by the City in accordance with Section 1.5 of Article XIIIB of the California
Constitution (GANN Limit). This annual review is performed by the auditors as part of their
contract to provide auditing services to the City of Bakersfield. The agreed upon review
procedures are substantially less in scope than an audit and therefore no audit opinion is
expressed regarding the calculation.
All of the reports are being provided to the full Council at this meeting, but no action is being
requested on the reports at this time.
ATTACHMENTS:
DescriptionType
GANN Limit letter Backup Material
Wastewater Compliance Letter Backup Material
To the Honorable Mayor and Members of the City Council
City of Bakersfield, California
We have applied the procedures enumerated below to the accompanying
Appropriations Limit Worksheet Six of the City of Bakersfield, California, (the City) for
the year ended June 30, 2015. These procedures, which were agreed to by the
League of California Cities and presented in their Article XIIIB Appropriations
Limitation Uniform Guidelines, were performed solely to assist you in meeting the
requirements of Section 1.5 of Article XIIIB of the California Constitution. This
agreed-upon procedures engagement was conducted in accordance with attestation
standards established by the American Institute of Certified Public Accountants. The
sufficiency of these procedures is solely the responsibility of those parties specified in
the report. Consequently, we make no representation regarding the sufficiency of the
procedures described below either for the purpose for which this report has been
requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the City’s completed worksheets required to determine that the
correct annual adjustment factors were adopted by resolution of the City
Council.
2. For the accompanying Appropriations Limit Worksheet Six, we added line A,
last year’s limit, to line E, total adjustments, and agreed the resulting amount
to line F, this year’s limit.
3. We agreed the current year information presented in the accompanying
Appropriations Limit Worksheet Six to the other worksheets described in 1
above.
4. We agreed the prior year appropriations limit presented in the accompanying
Appropriations Limit Worksheet Six to the prior year appropriations limit
adopted by the City Council during the prior year.
We were not engaged to, and did not, conduct an audit, the objective of which would
be the expression of an opinion, on the Appropriations Limit Worksheet Six.
Accordingly, we do not express such an opinion.
Had we performed additional procedures, other matters might have come to our
attention that would have been reported to you.
This report is intended solely for the information and use of management, the Mayor,
and the City Council and is not intended to be, and should not be, used by anyone
other than these specified parties. However, this restriction is not intended to limit
the distribution of this report, which is a matter of public record.
BROWN ARMSTRONG
ACCOUNTANCY CORPORATION
Bakersfield, California
December 18, 2015
CITY OF BAKERSFIELD
APPROPRIATIONS LIMIT – WORKSHEET SIX
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
A. Last year's limit 322,310,373$
B. Adjustment factors:
1. Population %101.86%
2. Inflation %99.77%
Total adjustment %1.625722%
C. Annual adjustment5,239,871
D. Other adjustments:
Booking fees 425,000
Property tax administration fees520,000
E. Total adjustments 6,184,871
F. This year's limit 328,495,244$
INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING
AGREED-UPON PROCEDURES
To the Technical Advisory Committee of the
Bakersfield Subregional Wastewater Management Plan,
the City of Bakersfield, California,
the Kern Sanitation Authority,
and the East Niles Community Services District
We have performed the procedures enumerated below to determine the City of
Bakersfield’s (the City) compliance with certain provisions of contractual
requirements as specified in Agreement 76-153, as amended by Agreements 76-
153(6), 76-153(5), 76-153(4), 77-44, 85-197, and 92-106, regarding the Bakersfield
Subregional Wastewater Management Plan. These procedures, which were agreed
to by the Technical Advisory Committee (TAC), were performed solely to assist you
in meeting the requirements of Agreement 76-153, as amended by Agreements 76-
153(6), 76-153(5), 76-153(4), 77-44, 85-197, and 92-106. The City’s management is
responsible for the Bakersfield Subregional Wastewater Management Plan. This
agreed-upon procedures engagement was conducted in accordance with attestation
standards established by the American Institute of Certified Public Accountants. The
sufficiency of these procedures is solely the responsibility of the parties specified in
the report. Consequently, we make no representation regarding the sufficiency of the
procedures described below, either for the purpose for which this report has been
requested or for any other purpose.
We reviewed and tested the City’s compliance with certain provisions of contractual
requirements as specified in Agreement 76-153, as amended by Agreements 76-
153(6), 76-153(5), 76-153(4), 77-44, 85-197, and 92-106. These procedures resulted
in no current year findings.
We were not engaged to, and did not, conduct an audit, the objective of which would
be the expression of an opinion on the City’s compliance with certain provisions of
contractual requirements as specified in Agreement 76-153, as amended by
Agreements 76-153(6), 76-153(5), 76-153(4), 77-44, 85-197, and 92-106, regarding
the Bakersfield Subregional Wastewater Management Plan. Accordingly, we do not
express such an opinion. Had we performed additional procedures, other matters
might have come to our attention that would have been reported to you.
This report is intended for the information of the Technical Advisory Committee of the
Bakersfield Subregional Wastewater Management Plan, the Kern Sanitation
Authority, the East Niles Community Services District, the City’s management,
appropriate regulatory agencies, and the City Council and is not intended to be used,
and should not be used, by anyone other than those specified parties.
BROWN ARMSTRONG
ACCOUNTANCY CORPORATION
Bakersfield, California
December 18, 2015
All meetings will be held at City Hall North, First Floor, Conference Room A
Adopted: DRAFT
Budget & FinanceCity Council Meetings
Committee Meetings 3:30 Closed Session, 5:15 p.m. Public Session
12:00 p.m.Budget Hearing 06/08, Budget Adoption 06/29
Budget Departmental WorkshopsHolidays - City Hall Closed
12:00 p.m.
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League of California Cities Annual Conference - October 5-7, 2016
League of California Cities Mayors and Council Members Executive Forum - June 22 - 24, 2016
JULYAUGUSTSEPTEMBER
OCTOBERNOVEMBERDECEMBER
APRILMAYJUNE
Budget & Finance Committee Calendar
January 2016 Through December 2016
JANUARYFEBRUARY MARCH
Documents
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n
be
Fu
n
d
e
d
?
•
Ov
e
r
s
i
g
h
t
/ Re
v
i
e
w
Pr
o
c
e
s
s
•
Ac
c
o
m
p
l
i
s
h
m
e
n
t
s
wi
l
l
be
pr
e
s
e
n
t
e
d
to
Ci
t
y
Co
u
n
c
i
l
an
n
u
a
l
l
y
du
r
i
n
g
th
e
De
p
a
r
t
m
e
n
t
a
l
Bu
d
g
e
t
Wo
r
k
s
h
o
p
s
•
Se
t
ad
d
i
t
i
o
n
a
l
po
l
i
c
y
& di
r
e
c
t
i
o
n
•
Re
v
i
s
e
pr
i
o
r
i
t
i
e
s
an
y
t
i
m
e
th
r
o
u
g
h
th
e
re
f
e
r
r
a
l
pr
o
c
e
s
s
•
Ec
o
n
o
m
i
c
Ha
r
d
s
h
i
p
•
Ab
l
e
to
su
s
p
e
n
d
th
e
EO
A
Pl
a
n
if
fa
c
i
n
g
an
ec
o
n
o
m
i
c
ha
r
d
s
h
i
p
to
th
e
Ge
n
e
r
a
l
Fu
n
d
(s
u
b
j
e
c
t
to
Ci
t
y
Co
u
n
c
i
l
ap
p
r
o
v
a
l
)
Ad
d
i
t
i
o
n
a
l
In
f
o
r
m
a
t
i
o
n
•
St
a
f
f
re
c
o
m
m
e
n
d
s
tw
o
in
i
t
i
a
l
EO
A
s
,
in
c
l
u
d
i
n
g
:
•
Do
w
n
t
o
w
n
•
Ba
k
e
r
s
f
i
e
l
d
Mu
n
i
c
i
p
a
l
Ai
r
p
o
r
t
•
Ad
d
i
t
i
o
n
a
l
fo
u
r
ar
e
a
s
ar
e
un
d
e
r
co
n
s
i
d
e
r
a
t
i
o
n
,
in
c
l
u
d
i
n
g
:
•
St
a
t
e
Ro
u
t
e
58
/ Mt
Ve
r
n
o
n
Av
e
•
Ea
s
t
Hi
l
l
s
•
34
t
h
St
r
e
e
t
Co
r
r
i
d
o
r
•
Ea
s
t
Ba
k
e
r
s
f
i
e
l
d
(B
a
k
e
r
St
r
e
e
t
Co
r
r
i
d
o
r
)
Wh
e
r
e
ar
e
th
e
Pr
o
p
o
s
e
d
Ec
o
n
o
m
i
c
Op
p
o
r
t
u
n
i
t
y
Areas?
DOWNTOWN EOA
AIRPORT EOA