HomeMy WebLinkAbout05/06/2016
OFFICE OF THE CITY MANAGER
May 6, 2016 TO: Honorable Mayor and City Council
FROM: Alan Tandy, City Manager AT
SUBJECT: General Information
Notable Items
A public hearing to consider certification of the Final Environmental Impact Report (FEIR)
and approval of the 24th Street Improvement Project has been scheduled for the May 18th
City Council meeting. The Notices of Availability for the 24th Street Improvement Project’s
FEIR and public hearing were published in The Bakersfield Californian and El Popular
newspapers today. The FEIR is available for review online at www.BakersfieldFreeways.us,
and hard copies have been delivered to the following locations: Bakersfield Community
Development Department – Planning Division, Kern Council of Governments, Beale
Memorial Library, Wilson Branch Library, and the Kern County Law Library. A copy is
available at the Thomas Roads Improvement Program (TRIP) office located at Bakersfield
City Hall. The City Clerk’s Office has sent notices to all the appropriate property owners as
well. The Mayor and City Councilmembers will be receiving electronic copies in the mail
and hard copies for each are available at Bakersfield City Hall. If you have any questions
regarding the availability of documents, please contact Janet Wheeler by calling (661)
326-3491 or emailing jwheeler@bakersfieldfreeways.us.
The Recirculated Draft EIR (R-DEIR) was released for public review and comment in
January and a public hearing was held on January 21, 2016. The City received written
(including email) comments, oral testimony (at the public hearing), and signed petitions
from a total of 120 persons. Approximately 70% of persons responding were in support of
the project, 12% were opposed, and 18% were neutral. Responses to comments on the R-DEIR are presented in Volume 3 of the 2016 Final EIR.
Attached you will find the monthly TRIP Status Report for the month of May. The report
gives a summary of each TRIP project in construction, in design, and under review. Completion percentages and pictures of projects are also included.
Preparation is currently underway for the annual 4th of July celebration at the Park at
Riverwalk; however, additional sponsorships are still needed in order to host this highly
popular event. An estimated 10,000± people have attended this community-wide, free
fireworks show over the past two years. If interested in sponsoring this event, please
contact the City Manager’s Office at (661) 326-3751.
Page 2
General Information May 6, 2016
The California Department of Finance released its annual statewide population estimates
this week. For the period of January 1, 2015 to January 1, 2016, Bakersfield’s population
grew by 1.2%, compared to a statewide growth rate of 0.9%. The estimated population now stands at 379,110. Bakersfield remains the ninth largest city in the state, behind
Oakland (422,856) and ahead of Anaheim (358,136). For reference, Anaheim and Oakland grew at percentage rates of 0.7% and 0.8%, respectively. Out of California’s top
10 cities, Bakersfield (+1.2%) had the second largest percent change year over year (Los Angeles was +1.3%). Overall, the estimated population growth for Kern County was 0.7%
(from 880,387 to 886,507).
Although we have recently experienced rain throughout Bakersfield, residents are
encouraged to please minimize their outdoor watering in order to meet our State-
mandated 31% domestic area water conservation goal (formerly 36%). Residents should
also remember to turn off their sprinklers for 48 hours after a rain event. Though it may
appear we are receiving large amounts of rain, we are still below average when
compared to prior years. Attached you will find a chart that displays the Kern River Basin
snowpack accumulation.
We are currently celebrating Public Service Recognition Week, which is a national event
held during the first week of May. It’s a week to honor government employees for their
hard work and dedication. As part of recognition week, the City recently held an
employee appreciation breakfast at Yokuts Park. Thank you to all City staff and
Councilmembers who participated in this special event. A special thanks to Mayor Hall for
generously sponsoring this event.
Page 3
General Information May 6, 2016
Traffic and Other Road Advisories
In the event of inclement weather or other unforeseen circumstances, this work may be rescheduled to a later date.
Nighttime Freeway Lane Closures for State Route 58
Nighttime Closures on P and Madison Streets
Motorist traveling during nighttime hours on State Route 58, between Hughes Lane and Cottonwood Road, should anticipate potential closures next week. Excavation and wall
construction work along the freeway will require closures of the two outside lanes in various locations. Scheduled work is expected to affect both directions of travel between
the hours of 9:00 p.m. and 5:00 a.m. each night from Sunday, May 8th through Thursday, May 12th.
Full nighttime street closures are also planned next week for P Street, between Dobrusky
Drive and Snyder Lane, and on Madison Street, between Brundage Lane and Derrell
Avenue. The closures are needed to allow for demolition work that must be completed
prior to widening the two bridges.
The street closures are expected to be in place between the hours of 7:00 p.m. and 5:00
a.m. During these street closures, P Street motorists can use either South Chester or Union
Avenue to cross the freeway. Madison Street motorists can use either Union Avenue or
Cottonwood Road.
Intermittent Traffic Delays Continue on State Route 178
Palm Mutual Water Line Work
Motorists traveling on State Route 178, between Valley Street and Alfred Harrell Highway,
should anticipate intermittent traffic control on Friday, May 13th and continuing the
following week from Monday, May 16th through Wednesday, May 18th. The contractor will
be performing excavation activities in this area and traffic control will be needed for
loading material and to allow trucks to enter and leave the worksite.
Traffic may be stopped for up to 10 minutes between the hours of 8 a.m. and 4 p.m.,
affecting both directions of travel. Motorists are advised to use alternate routes or to allow
sufficient time to reach their destinations while this work is underway.
The contractor will also be replacing valves and meters for the Palm Mutual Water
Company next week. This work is expected to cause disruptions to service between the
hours of 9:00 a.m. and 4:00 p.m. Palm Mutual Water Company customers are advised to
have enough water on hand to meet their needs during these hours, Monday, May 9th
through Friday, May 13th.
Centennial Corridor Utility Potholing Schedule for the Week of May 9, 2016
The Centennial Corridor design consultant will complete potholing operations next week
(May 9-13). The operation is verifying the location of existing utilities along the corridor.
Page 4
General Information May 6, 2016
Potholing operations entail making a small hole and vacuuming out dirt to allow buried
lines to be identified, then replacing the dirt and restoring the ground surface.
This week crews will be working during nighttime hours, between 9 p.m. and 5 a.m. each work day. Lane or shoulder closures will be in place as necessary while work is underway.
Next week the contractor plans to operate at the locations, as follows:
o South Real Road near the entrance to eastbound State Route 58;
o West side of the State Route 99 and Ming Avenue Interchange;
o Wible Road, south of Ming Avenue;
o Belle Terrace Bridge over State Route 99; and
o Stockdale Highway and Enos Lane intersection. Council Referrals
Councilmember Rivera
o HUD Section 108 Loan Maturities
Councilmember Maxwell
o General Fund – Additional Comments and Questions
Reports
Streets Division work schedule for the week of May 9th
Bright House Networks letter with possible programming changes
Event Notifications
Event calendar for the Rabobank Arena Theater and Convention Center
This Saturday (9:30 a.m. – 3:00 p.m.) an Indoor Hockey Tournament will be held at
Saunders Recreational Facility.
This Saturday (7:00 p.m. – 10:00 p.m.) the BPD will be participating in the 911 Race for
Youth Series at the Kern County Raceway Park. Please note that the BPD car is funded by
donations from local businesses.
This Saturday (9:00 a.m. – 12:00 noon) a Dog Vaccine/Licensing and Microchipping Clinic
will be held at Lowell Park. Please see the attachment for additional information.
AT:cg cc: Department Heads Roberta Gafford, City Clerk
Page 1
TRIP projects are moving rapidly through the various stages of project development. This
report is to provide a periodic up-to-date snapshot of each project’s recent major
activities and progress. If you have questions, or need additional information, please
contact Janet Wheeler at the TRIP office, (661) 326-3491. Regular project updates are
also available on the TRIP website at BakersfieldFreeways.us
MILESTONES
A public hearing will be held before the Bakersfield City Council on May 18, 2016 to consider
certification of the Final Environmental Impact Report (FEIR) and approval of the 24th Street
Improvement Project. The City Council meeting begins at 5:15 p.m. in the Council Chambers at City Hall
South, 1501 Truxtun Avenue, Bakersfield, CA 93301. If City Council approves the FEIR, the project team
will file a Notice of Determination and prepare a summary package for a return on the writ to the court.
The Recirculated Draft EIR (R-DEIR) was released for public review and comment in January and a public
hearing was held on January 21, 2016. The City received written (including email) comments, oral
testimony (at the public hearing), and signed petitions from a total of 120 persons. Approximately 70
percent of persons responding were in support of the project, 12 percent were opposed, and 18 percent
were neutral. Responses to comments on the R-DEIR are presented in Volume 3 of the 2016 Final EIR.
The document is available to the public before the public hearing online and at several Bakersfield
locations (see page 3).
Landscaping crews have been busy this spring planting trees and shrubs along the Kern River Parkway
near Mohawk Street. The project, which wrapped up in April, was part of the Westside Parkway
mitigation and included 150 new trees and more than 250 shrubs along the Kern River and the Bike
Path. Trees are typical for riparian areas and include California Sycamore, Valley Oak, Coastal Live Oaks,
Western Cottonwood, and Black Willow.
PROJECTS UNDER CONSTRUCTION
Please note that inclement weather impacts construction activities and project schedules. Many activities cannot
be performed during rain, when the ground is wet or when temperatures are too hot or low. In addition, Caltrans
does not allow freeway and highway lane and ramp closures when it’s raining. Please be patient as our
contractors make the necessary scheduling adjustments to work around changing weather conditions.
Beltway Operational Improvements
Contractor: Security Paving Company`
25% complete; anticipated completion: fall 2017
This project includes various improvements along State Route 58, from State Route 99 to Cottonwood Road,
and on State Route 99, from north of Ming Avenue to Wilson Road.
Work continues on the retaining walls along northbound and southbound State Route 99. The contractor
plans to start retaining wall and soundwall construction along eastbound State Route 58 in May, and to continue
wall construction that is already underway along westbound State Route 58.
Traffic from the State Route 99 to eastbound State Route 58 connector ramps was shifted in mid-April. This
allowed for the demolition of the old northbound State Route 99 to eastbound State Route 58 connector ramp.
May 2016
TRIP Status Report
TRIP Status Report
May 2016
Page 2
Excavation work is now underway for a future retaining wall/sound wall and a new connector ramp bridge in
this area. The contractor plans to start construction on the bridge columns in May.
Preliminary work began on the widening of the P Street and Madison Street bridge structures in April, and this
work will continue for several months.
Rosedale Highway Widening
Contractor: Teichert Construction
78% complete; anticipated completion: fall 2016
Paving operations (bottom lifts) continued in April between Mohawk and Gibson Streets. Final lifts of asphalt
are expected to be placed within this section of the roadway beginning in May. The contractor plans to continue
work on subgrade, place aggregate base, and begin paving (bottom lifts) for the new lanes between Calloway
Drive and Mohawk Street in the coming month.
Work on the new median curbs was underway for much of April and will continue through May. Other
ongoing work includes the relocation of private property signs, installation of curb and gutter, sidewalks and
driveways; storm drain modifications; traffic signal modifications; and utility relocations in various areas along
the corridor.
Construction crews are working during nighttime hours and lane closures may be in place in any lane in either
direction between the hours of 8 p.m. and 6:30 a.m. Please slow down and watch for construction crews and
equipment while traveling on Rosedale Highway during nighttime hours.
State Route 178 Widening
Contractor: Granite Construction
36% complete; anticipated completion: mid-2017
Last month, the contractor completed grading work on the north side of State Route 178 and began placing
aggregate base between Canteria Drive and Valley Street. The contractor plans to finish placing aggregate base
in this area and to begin asphalt paving in May.
The State Route 178/Canteria Drive intersection will be repaved during nighttime hours in late-May. This
work will entail grinding the existing pavement and repaving the entire intersection.
Roadway excavation between Alfred Harrell Highway and Miramonte Drive was underway in April and
continues through May. Once these activities are complete, the contractor will begin placing aggregate base in
this area which will be followed by paving operations.
Excavation work will begin this month between Valley Street and Alfred Harrell Highway. The contractor will
also continue with drainage work through this area in May.
Southbound State Route 99 Auxiliary Lane/Rosedale Highway Off-ramp Improvements
Contractor: Security Paving Company
7% complete; anticipated completion: early 2017
The contractor worked on shoring and structure excavation for the new retaining wall along southbound
State Route 99 near Gibson Street during April. This month, work will begin on the footing for the wall and
ironworkers will install reinforcing steel. As work proceeds on the wall, crews will erect forms, place concrete,
and backfill behind the wall.
TRIP Status Report
May 2016
Page 3
PROJECTS IN DESIGN AND RIGHT-OF-WAY
24th Street Improvement Project
Designer: TYLin International
Design 65% complete; Right-of-Way 90% complete (full acquisitions); Anticipate bidding: mid-2017
A public hearing will be held before the Bakersfield City Council on May 18, 2016 to consider certification of
the Final Environmental Impact Report (FEIR) and approval of the 24th Street Improvement Project. The
meeting begins at 5:15 p.m. in the Council Chambers, City Hall South, 1501 Truxtun Avenue.
The FEIR is available for public review prior to the meeting online at www.BakersfieldFreeways.us and at the
following locations:
TRIP office, 1600 Truxtun Avenue
Bakersfield Community Development Department - Planning Division, 1716 Chester Avenue
Beale Memorial Library, 701 Truxtun Avenue
Kern County Public Library – Wilson Branch, 1901 Wilson Road
Kern County Law Library, 1415 Truxtun Avenue, Rm. 301
Kern Council of Governments, 1401 19th Street, Suite 300
If City Council approves the FEIR, the project team will file a Notice of Determination and prepare a
summary package for a return on the writ to the court
Project design, soundwall design, and streetscape design remain on hold
Hageman Flyover
Designer: Caltrans
Design 64% complete; Right-of-Way 5% complete
Potholing continues for the realignment of the bike lane
Environmental Revalidation will be revised due to the bike lane re-alignment and drainage basin relocation
A Bridge Type Selection meeting was held on April 26; Caltrans Structures anticipates submitting General
Plans in May
65% constructability is scheduled for late May
Revised right-of-way engineering maps were submitted to the City on April 18
The City submitted draft project plans to San Joaquin Valley Railroad to begin the C&M agreement process
Right-of-way acquisition will not begin until design has progressed to 95%
12 properties; subject to change as design progresses
Truxtun/Oak Operational Improvements
Designer: Dokken Engineering
Design 65% complete; Right-of-Way 10% complete
The project will widen Truxtun Avenue, to three lanes in each direction, from Empire Drive to east of Elm
Street, modify the curve at the Westwind Drive intersection, and provide a right-turn deceleration lane for
westbound traffic turning north onto Westwind Drive. The design team is evaluating alternatives to reduce
right-of-way impacts east of Oak Street.
Design work continues
Right-of-way – Partial Acquisitions
4 ownerships west of Oak Street
12 ownerships east of Oak Street
The appraisal process is underway
TRIP Status Report
May 2016
Page 4
Centennial Corridor
Designer: Parsons
Environmental process 100% complete; Right-of-Way 79% complete for full acquisitions of single-family
properties
City Council approved four demolition contracts for Centennial Corridor properties on April 20, 2015
Advanced preliminary engineering design work is being finalized and final design will soon be initiated
The team is working on the permit packages for the CDFW 1602 , 401 Water Quality Cert, and the Central
Valley Flood Permit
The final three geotechnical borings were completed in March and are being analyzed
Utility potholing moved forward in April and is expected to be completed in May
Drainage basin design was completed to a 65% design level and submitted, along with the roadway package,
to Caltrans, the City and the County in March
Right-of-Way
Full Acquisitions required for the project: 199 single family residences, 9 multi-family ownerships
and 18 commercial/industrial ownerships
Purchase agreements approved by City Council:
o 158 single family properties (79%)
o 8 multi-family properties (89%)
o 9 commercial/industrial properties (50%)
The Record of Decision for the Centennial Corridor Project was signed by the Caltrans District 6 Director on
February 8, 2016 and approves Alternative B as the Selected Alternative. For general information about this
Record of Decision, contact Jennifer Taylor by mail (855 M Street, Suite 200, Fresno, California 93271),
email at Centennial@dot.ca.gov, or by telephone at 1-888-404-6375. The Record of Decision can be viewed
online at www.BakersfieldFreeways.us or during business hours at the following locations:
Thomas Roads Improvement Program, 1600 Truxtun Avenue, 3rd Floor, Bakersfield
Bakersfield Community Development Dept. - Planning Division, 1715 Chester Avenue, Bakersfield
County of Kern Planning Dept., 2700 M Street, Suite 100, Bakersfield
Kern Council of Governments, 1401 19th Street, Suite 300, Bakersfield
Beale Memorial Library, 701 Truxtun Avenue, Bakersfield
Eleanor Wilson Branch Library, 1901 Wilson Road, Bakersfield
Bryce C. Rathbun Branch Library, 200 West China Grade Loop, Bakersfield
Baker Branch Library, 1400 Baker Street, Bakersfield
Southwest Branch Library, 8301 Ming Avenue, Bakersfield
Caltrans District Office, 1352 W. Olive Avenue, Fresno
Caltrans Environmental Office, 855 M. Street, Suite 200, Fresno
TRIP Status Report
May 2016
Page 5
PROJECT PHOTOS
Top: New ramp and lane configurations from SR
99 onto eastbound SR 58 are now in place,
allowing work to proceed along the outside of
the eastbound lanes.
Middle: Roadway demolition of the old
northbound SR 99 to eastbound SR 58 ramp was
nearly completed in April; structural excavation
is underway for a new retaining wall/sound wall
and bridge structure in this area.
Bottom Left: Crews placed new concrete
median curb on Rosedale Highway during
nighttime hours. This section is located between
Mohawk Street and Fruitvale Avenue.
Bottom Right: Newly placed median curb on
Rosedale Highway.
TRIP Status Report
May 2016
Page 6
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Top Left: New trees and shrubs were planted
along the Kern River and bike trail this spring as
mitigation for the Westside Parkway project.
Top Right: Shoring installation for a new retaining
wall near the SR 99/Rosedale Highway off-ramp.
Middle Left: Grading work is underway to widen
the highway on the north side of SR 178,
between Canteria Drive and Valley Street.
Middle Right: Paving operations on SR 184,
between Mesa Marin Drive and Chase Avenue.
Bottom: Installation of drainage pipe along the
north side of SR 178. Approximately 23,000 feet
of drainage pipe will be installed for the SR 178
Widening Project.
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Snowpack Accumulation Season
KERN RIVER BASIN SNOWPACK ACCUMULATION
EIGHT SENSOR INDEX
May 5, 2016
CITY OF BAKERSFIELD WATER RESOURCES DEPARTMENT
100% of April 1 Average
November December January February March April
2015-2016
Average
2010-2011
201% A-J
1982-1983
332% A-J
2013-2014
21% A-J
2014-2015
13% A-J
1997-1998
247% A-J
MEMORANDUM
TO: Honorable Mayor and City Council Members
FROM: Nelson K. Smith, Finance Director
DATE: May 5, 2016
SUBJECT: Council Referral #699 – HUD Section 108 Loan Maturities
Referral:
Councilmember Rivera requested information on the remaining timeframes of the two
outstanding HUD Section 108 loans being repaid with CDBG Block Grant funds.
Response:
There are two Section 108 loans originally authorized by HUD in 2003 that are
being repaid with CDBG Block Grant Funds.
Loan “A” was originally issued for $4.1 million to construct the McMurtrey Aquatic
Center as well as rehabilitate the swimming pools at Jefferson Park and the
Martin Luther King facility. The loan carries an annual debt service payment
(principal plus interest) ranging from $273,000 to $324,000 per year. The loan has
an outstanding principal balance of $1,952,000 and a final maturity due date of
August 1, 2023.
Loan “B” was originally issued for $800,000 to construct street improvements
along California Avenue, Union Avenue and Brundage Lane. The loan carries
an annual debt service payment (principal plus interest) ranging from $51,000 to
$62,000 per year. The loan has an outstanding principal balance of $413,000
and a final maturity due date of August 1, 2024.
cc: Alan Tandy, City Manager
Virginia Gennaro, City Attorney
MEMORANDUM
TO: Honorable Mayor and City Council Members
FROM: Alan Tandy, City Manager
Nelson K. Smith, Finance Director
DATE: April 29, 2016
SUBJECT: Council Referral #684b
General Fund – Additional Comments and Questions
Following the submission of Council Referral #684 (General Fund Questions),
Councilmember Maxwell asked supplemental questions and provided additional
comments via email. As an addendum to the initial referral response (Attachment A),
below you will find these supplemental questions and subsequent responses. The
additional communication from Councilmember Maxwell is enclosed as well.
1. Since you are saying the TOT goes to the COF, does that mean that this Tax is not
eligible for the General Fund or does it go from the general fund into the COF?
The original response states that “the remainder of TOT funds has historically been
transferred out to either the General Fund or the Capital Outlay Fund;
depending upon whether funds were needed to balance operations or if they
could be made available for capital improvements.” TOT funds may be used for
any general government purpose, whether for operations or capital projects.
2. I understand that the Funds from the other governmental agencies are put into the
COF to pay for the TRIP projects. How are the funds from the city NOT going to TRIP
separated from the TRIP funds? If the funds are co-mingled, why have we not
established a separate fund only for TRIP?
The federal funds designated for TRIP projects are not accounted for in the
Capital Outlay Fund. The federal funds are accounted for in separate and
distinct funds from the local Capital Outlay Fund. The City accounting system
accounts for TRIP and non-TRIP capital outlay projects in separate funds.
3. If we are not separating the TRIP Funds out from the COF, please account for the last
two years all of the money we have put into the COF from all sources other than
funds we have been given by other governmental agencies designated for TRIP
and what part of this amount have gone into the payment of TRIP expenses.
As stated above, the City does account for local non-TRIP Capital Outlay and
TRIP project costs separately. Over the past two fiscal years, the City has
Council Referral #684b
April 29, 2016
Page 2 of 5
transferred $1 million of General Fund money to the local TRIP fund. This action
was part of the FY 2014-15 budget adoption. The money was used to construct
the Hosking Interchange project. The Hosking project was under the umbrella of
the TRIP program, but had no federal earmark for the project.
4. If we had planned to borrow $270 million for TRIP in the past and we are now
forecasted to borrow only $200 million this fund must have been used to reduce the
total we need to borrow by paying down what we had planned to borrow. How
have we used city money to accomplish this feat? How could these funds have
stayed in General Funds and reduced the crisis we are now in?
Going back to February 2013, City staff estimated the need to borrow was $270
million. In March 2014, this amount was revised down to $240 million, and in
September 2015, the amount was revised again down to $200 million. A TRIP
financial update presentation was made in September 2015 with a slide itemizing
the various items that facilitated the reductions in estimated borrowing.
The majority of the decreases were a result of favorable bids received on TRIP
projects. Other reasons for the reductions include additional funding pledged
from the Kern COG, State SHOPP funding, and improved revenue receipts of
Transportation Development fees. A copy of the referenced slide can be found
as Attachment B.
Capital Outlay funds were not used to reduce the borrowing estimate.
5. Do we currently have funds that have in the last year been put into the COF now
designated going to TRIP that came from income or savings that could currently be
put back into General Funds because they qualify to be in General Funds?
No, we do not. The $1.0 million that was transferred last year has been spent.
6. Please clarify some parts of Question #3's answer. I was under the impression that
the roll over each year was unpredictable in its amount, but is always a part of the
budget, so I am not sure how you determine that a portion of it is ongoing income
and part of it is one-time income. Since we have a roll over every year and budget
it, by definition wouldn't all of it considered on-going income? How do you
determine which monies are one-time and which ones are on-going?
The amount of fund balance rolled from one fiscal year to another has
fluctuated dramatically over the past several years; ranging from a low of $5
million and a high of $27 million. Historically, this amount is a combination of
routine or ongoing savings (e.g., salary savings from vacant positions) and one-
time savings (e.g., County tax adjustments, State cost reimbursements).
Council Referral #684b
April 29, 2016
Page 3 of 5
Each year the individual revenue accounts are analyzed and those items that
are not expected to recur are determined to be one time in nature. Similarly,
budget savings items identified are also analyzed and if determined to be non-
recurring they would be considered one time in nature.
7. Does the income source you define as "one-time funds" include the roll over
amount? If so, please inform me what the dollar amount was for the last two years
which were determined to be one-time income from the roll over element. Are any
of these funds ending up as a TRIP outlay?
As explained above, the rollover amount is a combination of ongoing savings
items and one time savings items. During “normal” years, the City would use the
ongoing savings items to help balance the next year’s operating budget and
transfer the one-time savings to fund various capital outlay projects. This
longstanding practice maintains the concept of using only ongoing revenues to
pay for ongoing expenses and using one-time monies for one-time capital costs.
The FY 2014-15 budget had a fund balance carryover component of $27.5
million. Of this amount, about $18.5 million was considered recurring and was
used to balance the operating budget for the year; $9 million was considered
one time in nature. The budget included transfers out of the General Fund in the
amount of $9 million; $6.6 million of this amount went into the non-TRIP Capital
Outlay fund; and $1 million went to the TRIP Fund for the Hosking project. The
remainder of the transfers went to the Equipment fund.
In FY 2015-16 the budget had a fund balance carryover component of $19.65
million. Of this amount, about $12.8 million was considered recurring and $6.8
million was considered one time in nature. Due to the declining financial
condition of the City, we used all but $900,829 to balance the operating budget
for the year. Of this amount, $839,952 was used for equipment purchases;
$45,877 was used to repay debt service on a zero interest PG&E energy
efficiency loan and the other $15,000 was budgeted to be transferred to the
Parking Garage Fund to help cover costs of security patrols. There were no funds
budgeted to be transferred out of the General Fund to the Capital Outlay funds
during this fiscal year.
It is unusual for us to use one-time funds to balance operations and this practice
is not prudent for the long term. A similar action will be considered in balancing
the General Fund budget for FY 2016-17. This is a short-term solution that will
further erode the General Fund balance. Efforts must be made to re-align our
operating revenues and operating expenses over the next few months to correct
this situation. This issue will be more fully discussed during the upcoming budget
meetings.
Council Referral #684b
April 29, 2016
Page 4 of 5
Additional Communications Regarding Initial Referral Response
The following is communications between Councilmember Maxwell and the City
Manager’s Office regarding the contents of the original referral response.
Councilmember Maxwell
In the response to my list of questions about the General Funds, there is a section titled
"Consequences of stopping the roads projects". I would like to make a referral to the
Leg & Lit Committee to discuss the assertion that are made concerning the monies that
would have to be "paid back" and some of the other statements for their accuracy.
This discussion has been had in the past in the Leg & Lit Committee and the "pay back"
is not a black and white issue. As we get closer to the possibility of borrowing $200
million or more, there must be honest and vetted statements that are supported by
facts. I would like for this to be brought to the Committee as soon as possible.
City Manager Response
Committee referrals shall be made during a public meeting of the City Council, either
during Council statements or as a consent calendar items.
The memo states, “…could be subject to repayment” not “shall be.” It is a risk, not a
foregone conclusion. This topic has been discussed on several occasions in the past.
Attached you will find two memos on this topic from the City Attorney’s Office to the
Budget and Finance Committee dated November 6, 2013, and September 2, 2014. The
figures in the April 12, 2016, referral response were updated from the September 2, 2014,
numbers to reflect additional preliminary engineering costs that have been expended
since that time.
City staff has an obligation to fully inform the Council of risks associated with decisions,
particularly when $68,636,000 is potentially involved.
Councilmember Maxwell Response
Is there a risk that we will need to borrow more than $200 million?
Is there a risk that the funds we are committing to the repayment of those monies are
subject to fluctuations due to a dramatic decrease in transportation impact fees due to
a recession and the collapse of the housing market, an increase in Solar energy usage,
rate variations as determined by the state on gas tax revenues, the mandate on
electric cars being met and increased, and the possibility the decision on the Jacks
case and the filings against us could result in the loss of the utility surcharge revenue
stream and the repayment of the monies we have collected to date? Are we ever
reminded that if the funds from these three sources are not able to cover the payback
on the loan that we will need to use General Funds to pay it back? Are we ever
reminded that if we have cost overruns and we have not adequately borrowed
enough money that we are still on the hook for the cost of completion? Water is a
Council Referral #684b
April 29, 2016
Page 5 of 5
looming issue and may have a profound impact on future population growth. Where in
our consideration is it pointed out that we need to grow by 3-4% yearly to attain the
income for all of this expense and that the Ground Water Legislation may dictate to us
what growth we either may or may not have? Approval of housing projects could and
likely will be part of the Groundwater Sustainability Plan that must be approved by the
State. Ultimately the cost to the City of Bakersfield with what we believe today, will end
up being around $750 million.
I don't believe I recall reading any of those possibilities in what you wrote. If you want to
continue to remind us of the risk of NOT going forward, it seems fair to remind everyone
of the risk if we DO go forward.
Attachments:
A. Council Referral #684 (General Fund Questions)
B. Summary of Changes to Borrowing Estimate
cc: Virginia Gennaro, City Attorney
MEMORANDUM
TO: Honorable Mayor and City Council Members
FROM: Alan Tandy, City Manager
Nelson K. Smith, Finance Director
DATE: April 12, 2016
SUBJECT: Council Referral #684 – General Fund Questions
Referral:
Councilmember Maxwell requested that the Finance Director provide answers to
the following questions regarding the General Fund:
1. What are all sources of income that could be dedicated to the General Fund?
Could you please include any of the ones that are being designated to other funds
under an ordinance or resolution, such as the Utility Surcharge, but could
theoretically go to the General Fund.
2. How is the "rollover" calculated each year and what funds besides the General
Fund can it go into and does it go into?
3. As a side issue, I heard at the dedication for Hoskins Overpass that it was funded
locally. Please remind me what the City's contributions to that project were and
what were the funding sources?
Response to Question #1:
There are many revenue sources that are currently dedicated to the General
Fund. Some of those sources are considered “on-going”, meaning that they are
fairly stable and occur each year. Other sources are considered “one-time” in
nature, meaning that they may not occur with any consistency. The general
categories of revenues in the General Fund are as follows:
- Taxes - which include: Property Taxes, Sales Taxes, Franchise Taxes and
Business License Taxes
- Licenses and Permits – the larger items in this category include: Alarm
Permits, Dog Licenses, Building Permits and Street Permits
- Intergovernmental – this category includes Federal, State and County
Grant funds that may be used for General Fund operational purposes.
This category also includes State Vehicle License fee revenues.
- Charges for Service – this category includes various development related
Plan Check and Inspection related service fees. It also includes the Fire
fund revenue received from the County each year as it relates to City fire
services provided in County areas. This category also includes the park
revenues collected from property owners in the special parks
maintenance district areas.
- Fines, Forfeits & Assessments – this category includes parking fines, weed
abatement collections and animal control redemption collections.
- Miscellaneous revenues – this category includes interest on investments,
various rebates, refunds and cost reimbursements.
Most of the revenues listed above are considered on-going in nature. Revenues
such as property taxes, sales taxes, or charges for service occur each year. While
such revenues may fluctuate up or down with the economy they are stable
enough to commit to annual costs such as salaries, benefits and annual operating
expenses of the General Fund.
On the other hand, one-time revenues such as rebates, refunds or certain grant
related revenues tend to be intermittent or may fluctuate dramatically from one
year to the next. The City Council has had a longstanding practice of using one-
time revenues for one-time costs; usually for capital improvement projects since
one-time revenues cannot sustain ongoing costs over time.
Capital Outlay Funds (COF) – Capital Outlay fund accounting exists to separate
one-time capital costs from annual operating costs, so not to skew operational
budgetary comparisons from one year to the next.
Funding for projects within the Capital Outlay Fund (COF) have historically been
derived from three primary sources:
Transient occupancy tax (hotel tax)
One-time General Fund revenues
Facility replacement reserve
The ratio of TOT to one time General Fund revenues or facility replacement reserve
varies annually depending on fiscal conditions. For example, in FY 2015-16, TOT
comprises 94 percent of the total amount of funds budgeted with the COF. The
remaining source of funds was from the Facility Replacement Reserve.
We have allocated COF funds to TRIP projects in prior fiscal years, but there was no
current year allocation of COF for TRIP projects in FY 2015-16. In general, the COF
provides resources for projects associated with general funded City services.
Examples include rehabilitation and improvement projects at all fire stations,
materials for local street maintenance, selected park projects, animal care center
improvements and arena facility improvements.
The City Council may vote to cancel a previously authorized capital project,
where those funds could then revert back to the General Fund and be used for
operations. As a practical matter, this action is exactly what was proposed and
approved by the Council back on January 20, 2016 where certain capital projects
totaling about $1,740,000 were removed from the approved list. This type of action
is rare, but it is an alternative during difficult budgetary times.
Looking forward to the FY 16-17 budget, the only source of COF funding will likely
be from the Hotel Tax revenues. The vast majority of these funds will go toward
street resurfacing projects, with the balance of funds going toward local matching
requirements of specific federal or state grant funded projects.
Facility Reserve Fund – This is a sub-fund of the Capital Outlay fund where one-time
monies are set aside for emergency repairs. In good years we build up this fund for
unanticipated emergency response needs. In normal years we hold these funds,
but do not allocate them for any specific project. In difficult budget years (like in
FY 15-16) we may draw upon these funds to construct critical projects or repairs
that cannot be deferred to a future year. In FY 15-16 the adopted budget
included a draw on the reserves of $530,000; bringing the balance in the fund
down to approximately $3.2 million from the $5.0 million that we strive to retain.
The City has many General Fund assets – City Hall, fire stations, police stations, the
arena, parks, etcetera. Emergency repairs have to be provided for in order to
maintain the functionality of these assets.
Transient Occupancy Taxes (TOT) – More commonly known as Hotel Taxes, this is
the 12% tax assessed to the cost of each hotel room within the city limits. Last year
we collected $9,487,984 in TOT revenue. When the Arena was constructed in 1997
the City entered into a debt obligation and we use about $3.2 million of this money
each year for debt service payments on the Arena. We also account for the
Arena/Theater operations in this fund as well as the operations of the Convention
& Visitors Bureau (CVB). Our current management contract with AEG caps our net
loss on arena operations at $415,000 per year. The current year budget for the
CVB is roughly $800,000. The remainder of TOT funds has historically been
transferred out to either the General Fund or the Capital Outlay Fund; depending
upon whether funds were needed to balance operations or if they could be made
available for capital improvements.
Traffic Safety Funds – The Traffic Safety fund is used to account for unlicensed
towing fee collections and vehicle code fines. These revenues are routinely
transferred to the General Fund to support Police operational costs. The annual
transfer amounts generally range from $600,000 to $900,000.
Gas Tax Funds - The City annually receives funding from the State pursuant to
California Constitution Article XIX and Streets and Highways Code Section 2101.
Gas Tax funds are required by law to be used for street and road-related purposes.
They can be bonded, as is proposed for the TRIP program, or used for road
construction through the normal City bidding process. They can also be used for
salaries of certain employees who work exclusively on eligible activities.
In years past the City spent about $1.2 million per year for salaries out of the gas
tax fund. Additional operating costs for annual street maintenance averaged
about $3.3 million per year, so prior to the transition, the gas tax fund paid about
$4.5 million per year for salaries and operating costs for road maintenance. The
balance of annual gas tax revenues were historically expended for capital
projects.
When the revenues to be pledged for the future TRIP debt service were
assembled, the City began to reallocate those monies from the Gas Tax Fund to
the General Fund. Prior to the transition the General Fund expended about $8.4
million for street maintenance activities. Now that the transition is completed the
General Fund expenses have increased to $14.5 million; an increase of $6.1 million,
which exceeds the $4.5 million average spent from the gas tax fund.
Utility Surcharge Revenues (USR) – This fund was established by Council Ordinance
as a special fund to account for the additional 0.5% Electricity Franchise tax as well
as the 1.0% Utility Surcharge fee for both electricity and natural gas. The City
Council has dedicated these funds to be used:
“for the purpose of funding capital improvements related to the city’s roads
program, including, but not limited to, the payment of debt service or other
types of payments related to obligations incurred in connection with the
financing of such capital improvements”.
Because the revenue was initially established for roads, it is legally dedicated to
roads. If anything changed and it was used for any other purpose, it would
weaken the likelihood of being able to continue receiving the revenue.
As you know, these funds along with Gas Tax and Transportation Development
Funds were the three revenue streams submitted to the court as part of a
validation action, to be pledged for a future borrowing action to coincide with the
completion of the Centennial Corridor project. Under that action specific revenue
streams are submitted to court for a determination on whether they are suitable
and appropriate for a revenue pledge for debt service. That action was taken by
the City Council on September 25, 2013.
The validation action was challenged by a citizen group. The City prevailed and
the revenues were validated by the Superior Court. That decision is now on
appeal with the Appellate Court. The process may take several months to
complete, depending upon the actions of the Appellate Court.
Any change or interruption in the Council’s prior actions regarding the TRIP
financial plan and the revenue pledges could delay the construction of the
Centennial Corridor, which is likely to increase its cost due to inflation in
construction costs, as well as the potential for interest rate increases.
Consequences of stopping the road projects – While the cost of financing the
completion of the Centennial Corridor project is certainly significant, it is important
to understand that the alternative of stopping the road projects also carries a
significant consequence to the City. If the Council were to decide to terminate
efforts to complete the TRIP projects, the City could be subject to repayment of
Federal or State funds spent to date on environmental/preliminary engineering
costs for those particular projects. To date those numbers are $12,057,000 on 24th
Street and $56,579,000 on the Corridor, for a total of $68,636,000. Additionally, any
local funds spent on the project would in effect have been a wasted effort. Most
of the projects are already under construction, with the exceptions of 24th Street
and the Centennial Corridor.
On 24th Street we have already spent nearly $18 million of Federal funds on design
and right of way costs, with an additional $14 million of federal funds designated
for remaining right of way and construction. Additionally the City has spent over
$4 million of local funds, with an additional $28 million designated for completion
of the project.
On Centennial we have spent over $120 million of Federal funds to date, with an
additional $177 million of federal funds obligated toward the project. Additionally
the City has spent over $10.7 million of local funds so far on the project, with an
additional $21.5 million of local funds budgeted for the Centennial project.
Abandonment of the projects would therefore result in a massive waste of
resources. Repayment of these amounts would be a tremendous challenge for
the City, as would the property management issues that would exist if progress on
constructing the facilities were to cease. Stopping the Centennial project at this
point in time would cause tremendous hardship on both the City and the citizens
who live in and around the project footprint area. The City has already acquired
nearly 200 properties (including apartments and commercial parcels). Termination
of the project would cause the City to incur significant added cost of
maintaining/repairing/securing and eventually re-selling these properties over a
period of years. Several of these properties have been broken into over the past
few months; some of them on multiple occasions. Stopping the project would
subject the City owned properties in the area to further damage and vandalism as
well as cause extend disruption to the neighborhoods in the surrounding area.
Response to Question #2:
I believe the “rollover” that you are referring to is the amount of “fund balance”
that is used each year to balance the General Fund budget. Each year during the
budget process the Finance Department and the City Manager’s Office estimate
revenues and expenditures to the end of the fiscal year. Any projected surplus
revenues or budget savings are then analyzed further to determine if those savings
are considered “on-going” or “one-time” in nature. The on-going savings is rolled
over into the next years’ budget process to help balance the other on-going
revenues with the on-going expenses. As discussed earlier, the revenues
determined to be one-time in nature are usually transferred out to the Capital
Outlay Fund to be used for capital projects.
Money cannot be moved from one fund to another without City Council approval.
So in answer to your question, there are no other funds that go into the rollover
calculation. Hotel Tax or Traffic Safety funds may be proposed to be transferred to
some other fund (for example, the General Fund or Capital Outlay Fund), but
these actions would be considered by the City Council as part of the annual
budget review and adoption process. Fund Balance transfers are not part of the
rollover calculations.
Response to Question #3:
The Hosking Interchange project was indeed funded with a variety of local funding
sources. The total project budget of $33,235,230 was funded as follows:
Gas Tax Fund $ 9,305,000
Capital Outlay Fund $ 4,700,000
Utility Surcharge Fund $ 433,360
Transportation Development Funds $ 18,796,870
Total Project Budget $ 33,235,230
cc: Virginia Gennaro, City Attorney
Week of May 9_2016_Work Schedule
Page 1 of 2
STREETS DIVISION – WORK SCHEDULE
Week of May 9, 2016 – May 13, 2016
Resurfacing/Reconstructing streets in the following areas:
Maintenance Grind & Pave on Brundage Ln between “A” St and Chester Ave
Maintenance Grind & Pave on Chester Ave between California Ave and 24th St (weekend work)
Maintenance Grind & Pave on Chester Ave between 24th St and 30th St
Reconstruction of San Dimas St north of 34th St
Reconstruction of Dunsmuir Dr from Business Center Dr to Business Park (has base lift of asphalt)
Miscellaneous Streets Division projects:
Video inspection of City owned Sewer & Storm lines to evaluate condition of pipes
Repairing damaged sewer line found during video inspection
Miscellaneous concrete repairs throughout the City
Working on Brick repairs at Centennial Plaza
Concrete Repairs to various Bus Stops throughout City limits
Asphalt work in the area of California Ave to Verde St from “A” St to Chester Ave (HUD Area)
THIS SPACE INTENTIONALLY LEFT BLANK
Week of May 9_2016_Work Schedule
Page 2 of 2
STREETS SWEEPING SCHEDULE
Monday, May 9, 2016
Between So. “H” St. & Union Ave. – Pacheco Rd. & Hosking Rd.
Between Stockdale Hwy. & Truxtun Ave. (ext.) – Coffee Rd. & Partridge Ave.
Tuesday, May 10, 2016
Between 99 Hwy. & So. “H” St. – Ming Ave. & Panama Ln.
Cul-De-Sacs on the north side of Magdelena Ave., west of So. “H” St.
Wednesday, May 11, 2016
City areas between Brundage Ln. & Ming Ave. – So. “H” St. & Union Ave.
City areas between Wilson Rd. & Pacheco Rd. – So. “H” St. & Union Ave.
Between Casa Loma Dr. & Planz Rd. – Madison Ave. & Cottonwood Dr.
Between Planz Rd. & Brook St. – Madison Ave. & Hale St.
Thursday, May 12, 2016
Between Carr St. & California Ave. – Mohawk St. & Stockdale Hwy.
Between Stockdale Hwy. & Marella Wy. – California Ave. & Montclair St.
Between La Mirada Dr. & Chester Ln. – Montclair St. & No. Stine Rd.
Between California Ave. (ext.) & Stockdale Hwy. – No. Stine Rd. & 99 Hwy.
Between Stockdale Hwy. & Ming Ave. – New Stine Rd. & Ashe Rd.
Between Mountain Ridge Dr. & Ashe Rd. – Taft Hwy. & Berkshire Rd.
Friday, May 13, 2016
Between Ming Ave. & White Ln. – Buena Vista Rd. & Old River Rd.
Between Stine Rd. & 99 Hwy. – Ming Ave. & Adidas Ave.
Between Panama Ln. & Berkshire Rd. – Gosford Rd. & Stine Rd.
NOTE: If raining, there will be no street sweeping service and all street cleaning personnel will be assigned
to cleaning plugged drains and part circle culverts. This also applies when a large number of street
sweeper are in Fleet for repairs. Areas that have been missed during this time will be swept at the end of
the month only when possible.
BOX OFFICE HOURS
Mon-Fri 10 AM - 5 PM
Saturday 10 AM - 4 PM
(Excluding Event Days)
CHARGE-BY-PHONE
1-888-929-7849
GROUP SALES INFORMATION
661-852-7309
SEASON TICKET INFORMATION
Bakersfield Condors
661-324-PUCK (7825)
www.bakersfieldcondors.com
Bakersfield Symphony
661-323-7928
www.BSOnow.org
Bakersfield Community
Concert Association
661-589-2478
www.bakersfieldcca.org
UPCOMING EVENTS
May 13 – All Star Bowl 7:00 PM
$10 On Sale Now
September 9-11 – Ringling Bros. Circus
$65, $35, $25, $20, $15, $12 On Sale 5/3
September 13 – Carrie Underwood7:00 PM
$73, $43 On Sale Now
September 29 – Chris Young 7:30 PM
$55, $39.50 On Sale 5/6
May 19 – Lynyrd Skynyrd 8:00 PM
$125, $75, $45, $30 On Sale Now
June 2 – Ziggy Marley 7:00 PM
$78.50, $50.50, $40.50, $30.50 On Sale Now
July 1 – Kenny Rogers w/Linda Davis8:00 PM
$97.50, $67.50, $47.50, $27.50 On Sale Now
August 4 – Ub40 w/The Wailers 7:00 PM
$47.50, $37.50, $27.50 On Sale Now
September 9 – The Beach Boys 8:00 PM
$77.50, $57.50, $37.50, $27.50 On Sale Now
May 14 – Symphony 7:30 PM
$45, $35, $30, $20 On Sale Now
May 17 – Celtic Woman 7:00 PM
$105, $65, $45 On Sale Now
May 24 – Sesame Street Live 6:30 PM
$60, $35, $25, $10 On Sale Now
May 25 – Sesame Street Live 10:30 AM
$60, $35, $25, $10 On Sale Now
May 28 – Ramon Ayala 8:00 PM
$105, $75, $60, $50, $40, $30 On Sale Now
June 10 – Groove Summer Jam7:30 PM
$69.50, $49.50, $42.50, $35.50, $30.50On Sale Now
June 17 – Mariachi Festival 8:30 PM
$97, $77, $62, $42, $32, $22 On Sale Now
June 24 – Los Tigres del Norte 8:00 PM
$130, $100, $85, $70, $55, $40 On Sale Now
July 21 – Chase Rice 8:00 PM
$27.50 On Sale Now
www.rabobankarena.com - www.bhnamphitheatre.com
Dog Vaccine/Licensing and Microchipping Clinic!
When: Saturday, 5/7/16
Time: 9 am-Noon
Where: Lowell Park
The City of Bakersfield Animal Control Division would like to invite the community to a low cost
vaccination, licensing and microchip clinic for dogs living within the city limits. The clinic will be at
Lowell Park at 800 4th St., on Saturday, May 7th, 2016, from 9:00 a.m. until noon.
Vaccinations offered:
Rabies vaccines can be given to puppies as young as 3 months of age as well as adult dogs.
A dog license must be purchased in conjunction with the rabies vaccine.
The DAPP vaccines are for puppies beginning their vaccination series or adult dogs needing
boosters.
The Bordetella (kennel cough) vaccine is usually required for admittance into boarding
and/or grooming facilities.
The vaccines are offered at a reduced cost; however, all licensing fees are regular price.
Microchips will be offered FREE to all city licensed dogs!
For more information, contact City Animal Control at 661-326-3436 or visit us on the web at
http://www.bakersfieldacc.us/vaccination_clinics.html