HomeMy WebLinkAbout06/15/1976 MINUTES CCBakersfield, California, June 15, 1976
Minutes of the Council of the City of Bakersfield,
California, meeting in budget sessions at 7:00 P.M., June 15,
1976.
The meeting was called to order by Mayor Hart.
The City Clerk called the roll as follows:
Present: Mayor Hart. Councilmen Rogers, Sceales, Strong, Barton,
Bleecker, Christensen, Medders
Absent: None
Operating Budget for Fiscal Year
1976-77.
Councilman Medders, Chairman of the Budget Review and
Finance Committee, read Report No. 9-76 regarding Equipment
Management, as follows:
This report is being submitted in response
to the Council's request of last evening
regarding the proposed incease in internal
equipment rental rates.
The first concept that should be understood is
the difference between the equipment replace-
ment program and the equipment maintenance
program. The equipment maintenance program
represents a central pool for the maintenance
of all Public Works and Police rolling equip-
ment. These costs include the salaries and
fringe benefits of mechanics and all other
maintenance costs. Also included is an equip-
ment replacement provision which represents
an annual replacement charge that is based on
the useful life of each piece of equipment.
This charge includes a 4% inflation factor.
The equipment replacement program represents
the budget from which equipment, that is no
longer deemed practical to keep, is replaced.
Annually the equipment replacement provision
in the equipment maintenance program is
transferred into the replacement program in
order to provide funds for the future replace-
ment of equipment.
The equipment maintenance program is operated
as an equipment pool. The various departments
throughout the City are charged a rental rate
for each piece of equipment they use. The
rental rates are based on maintenance costs
and an equipment replacement amount. The total
of all the rental charges are designed to
recover the cost of the equipment maintenance
budget and are reflected as a credit against
the cost of this budget. An analogy would be
a private business that sells its products at
cost. The budgets of the using departments
Bakers£ield, California, June 15, 1976 - Page 2
reflect these rental charges, object account
6200, Rental Internal Organizations.
Attached to this report is a comparison of
this operation between the actual results of
the 1974-75 budget, the 1975-76 budget and the
proposed 1976-77 budget including the 20%
increase in rental rates. It also notes the
effect of a 10% reduction in these rates on
the operating deficit. I can agree with some
of the councilmen that objected to the wording
in this committee's report last night which
inferred that a 20% increase in these rental
rates was caused by a comparable increase in
certain maintenance costs in the proposed
budget. The statement was an oversimpli-
fication of the actual situation. Actually,
it represents more o£ a "catch up" for maintenance
cost increases for a three-year period. This
can be clearly seen by the attachment in that
the 1974-75 actual results showed an operating
deficit of 22.9%, the 1975-76 budget showed
an operating deficit of almost 16%, and despite
the 20% increase in rental rates in next year's
budget, the program will still have a 5.7%
operating deficit. It should also be pointed
out that the number of vehicles being maintained
are approximately the same.
For your information, we have attached a listing
of rental rates for City owned equipment com-
pared to the cost of actually renting this same
equipment from private industry and compared
to the State of California's rental rates.
It certainly would appear that if this program
is to operate properly and the Council wants to
re£1ect as true a cost of the various services
it is providing the citizens of Bakersfield,
the rental increase is not unreasonable. If a
cut is made in the proposed rental rates, the
reduction in the other operating budgets will
simply be of£set by a corresponding increase
in the equipment maintenance budget.
Councilman Medders stated that the Budget Review and
Finance Committee Report No. 9-76 regarding Equipment Management
is for information purposes only.
Councilman Bleecker stated that since the 20% increase
in the Internal Equipment Rental Rates does not reflect an
inflationary projection and it appears the City has been in the
arrears for several years he will not object to the increase.
Work Measurement Program.
Deputy City Manager Sumbardo stated that there were
several questions last night regarding the proposed Work Measurement
13°
Bakersfield, California, June 15, 1976 - Page 3
Program and also a request for information on what other cities
are doing in that area. Mr. Sumbardo reviewed the program, as
follows:
Work Measurement is in some respects synonymous
with Work Management and what we are really
talking about is, how can employee productivity
be increased.
Work Management or Work Measurement can be
divided into three parts:
1. Planning and scheduling of the work to be
involved.
2. The standardization and improvement of
work methods.
A measurement of the actual work that is
being done to see how its being done and
whether its coming up to some standard
that is generally accepted.
The proposal that has been made by the firm
of Kapner, Dull, & Wolfberg, who specialize
only in this type of program, would be the
following:
Develop work standards, including crew
sizes and a time to accomplish specific
tasks that are assigned to the Street
Division (resurfacing streets, patching
holes, doing alley repairs, etc.).
To install a work scheduling program so
that the work can be carried out in the
most efficient manner.
To install a reporting system so that
supervisors and foremen can have a system
to evaluate work that is actually being
done and determine where it can be changed
for improvement and therefore increase
productivity.
The question was asked, last night, why this
can't be done with existing City staff. The
reason for that is:
First of all the Work Measurement concept is
a very specialized, highly technical sub-
ject and there is no one on most staffs,
except in larger cities like Los Angeles,
Chicago, etc., that have the expertise and
background to install this system.
The other reason is that, installation of
a complete system such as this in the Street
Division would require a minimum of six
months to install, with the people doing
the installing working 8 hours a day. So
it is a full-time not a part-time job.
Bakersfield, California, June 15, 1976 - Page 4
Mr. Sumbardo briefly reviewed letters on Work Measure-
ment Programs from: Kern County Parks Department with a savings of
$187,000.00 per year; City of Los Angeles Street Maintenance and
Parks with a savings of $3,000,000.00 a year; and City of Phoenix,
Arizona,with a savings of $2,000,000.00 a year.
Mr. Sumbardo then read the paragraph from the letter of
Kapner, Dull, & Wolfberg, Inc.,
Oaks, California, as follows:
Management Consultants of Sherman
"If the current annual rate of productivity
improvement savings that you are realizing
within one year after the completion of our
program does not exceed your work manage-
ment program fee we will return to you the
difference between the fee and your annual
rate of savings."
Councilman Christensen questioned the paragraph, just
read, from Kapner, Dull, & Wolfberg, Inc.
Mr. Sylvan Kapner, President of Kapner, Dull, & Wolfberg,
Inc., stated it is a flat contractural fee and they have not
proposed any contingency or sharing of savings.
Councilman Rogers asked, if, other than the
their consulting firm, for this study, would there be other
to the City, such as, staff time so that there are indirect
to the City.
fee paid to
costs
costs
Mr. Kapner stated that there are some additional costs
which should be drawn from existing personnel.
After discussion, Councilman Bleecker stated that it
would appear to him, since all the employees in the City now have
full-time jobs, that additional positions would have to be
authorized to persue this study.
City Manager Bergen stated that if the Council determines
that the City should proceed with this study any assistance will
have to come from within that department and there will not be
any additional personnel hired. At the present time the City has
not filled some positions because the staff is not satisfied that
134
Bakersfield, California, June 15, 1976 - Page 5
the City is getting the kind of operation, in that Division, that
they could. The personnel in that Division are not necessarily
to be blamed, it is a matter of coordination, planning, etc., that
needs to be done.
Councilman Barton stated that if an organization, such
as Mr. Kapner's, can come into the City of Bakersfield and give
an iron clad guarantee that they will save $32,000.00 if a
contract is granted, then there is something basically wrong with
the system of controls within the City from the standpoint of
productivity. It indicates that the City may have a problem in
productivity and this lies within the spectrum of management and
supervisory controls. If the Governmental Efficiency and Personnel
Committee can review this situation and find the need for improve-
ment in the span of control, work levels and productivity, then
he would be willing to go along with an outside study.
Councilman Bleecker asked if the City Manager felt it
is possible to arrive at a savings using the expertise of City
employees.
City Manager Bergen stated, yes, the staff intends to
make a study in the Street Division. The City does not need an
outside firm to improve efficiencies in that department, although
it would have been easier and faster to have consultants do the
Work Measurement Program.
Councilman Barton made a motion to delete the $32,000.00
for the Work Measurement Program from the Operating Budget for
Fiscal Year 1976-77 and refer to the Governmental Efficiency and
Personnel Committee for study and recommendation.
Councilman Strong stated that he finds it a little
difficult to reconcile the fact that the Council, on many occasions,
has allocated monies for studies and programs without any guaranteed
savings. The City of Bakersfield has had a number of studies
which have been embarrassing in that they did not save anything
Bakersfield, California, June 15, 1976 - Page 6
135
and now there appears to be a certain amount of scepticism on the
part of certain Councilmen when someone can flatly make a guarantee
that they can save an amount equal to the cost of the study. He
hoped that the Council would consider keeping the amount in question
in the budget with the idea it would be referred, at some later
date, to the Governmental Efficiency and Personnel Committee for
further study and review with a recommendation to the Council.
Councilman Strong further stated that he had talked, at
length, with Mr. Kapner and on the basis of some of the things that
were discussed he was very impressed and asked the City staff to
check into the company's qualifications and obtain letters of
recommendation so the Governmental Efficiency and Personnel
Committee would have the opportunity to evaluate the program along
with recommendations from other cities. The full Council has not
had that opportunity and it is understandable why they are taking
this position.
In view of the fact that there has not been ample
opportunity to review, in detail, the letters of recommendation
from Mr. Coop and the cities of Los Angeles, Phoenix, etc.,
Councilman Strong offered a substitute motion that the amount of
$32,000.00 be left in the Operating Budget for Fiscal Year 1976-77
with the idea that the entire Work Measurement Program question be
referred to the Governmental Efficiency and Personnel Committee
for further study and recommendation.
Councilman Sceales stated that he cannot support either
motion as he does not like to vote against people who are winners.
These people have saved the County of Kern $187,000.00 and they
are not talking about something that may be done, it has been done.
Councilmen are going to have to be cutting the budget wherever
possible and it is his intention to support every cut possible.
City Attorney Hoagland, in answer to a question regarding
deleting items from the budget, stated the Council adopts an
Operating Budget at this time, primarily for the function of the
Bakersfield, California, June 15, 1976 - Page 7
City in its ordinary course of business, not for any special
projects. What the Council is determining at this time, is whether
or not the Work Measurement Program funds should be in the budget
along with the other operating costs to the City. Specific items
can be deleted but the Council should not delete the daily
operations from the budget. The Council has the legal right up
until the time the tax rate is set, which is the £irst Monday in
August or at least prior to the last Monday in August, to delete
or add items to the budget.
Councilman Strong's substitute motion that the amount of
$32,000.00 be left in the Operating Budget for Fiscal Year 1976-77
with the idea that the entire Work Measurement Program question be
referred to the Governmental Efficiency and Personnel Con~ittee
for further study and recon~endation, was approved by the following
roll call vote:
Ayes: Councilmen Rogers, Strong, Barton, Bleecker, Christensen,
Medders
Noes: Councilman Sceales
Absent: None
Professional and Consulting Services.
Councilman Christensen recapped the breakdown of the
Professional and Consulting Services account for the Council.
Councilman Barton stated by serving on the Water and
City Growth Committee, he could see the $120,000.00 for the
Professional and Consulting Services account and would hope, based
on the reports that the Council gets, that this will be an over
extended amount in the budget. Based on the severity of it, he
would support this amount
City will have a surplus
sure of the dollar amount
being continued and would hope that the
in this particular account. He is not
but does not want to be categorized as
being super critical of these services per se. Some of the
Professional and Consulting services fall within the category of
the last subject discussed and he would like to have them thoroughly
Bakersfield, California, June 15, 1976 - Page 8
137
reviewed. An example is $30,000.00 for Planning. The City has
to be involved in Environmental Impact Reports, make analysis and
continually get expert opinions on zonings and things of that
nature. Utilizing a lot of professional and consulting services
means one thing; the City is over extending their management
capabilities or they are lacking personnel within that particular
department. If you recall,not too many weeks ago, the City expended
$17,500.00, that was in my personal opinion not absolutely necessary,
and now there is talk about spending another $30,000.00 for pro-
fessional services within the Planning Commission to develop
Environmental Impact Reports. Don't get me wrong I firmly believe
that the City will have to make expenditures where absolutely
necessary, but participation on a user pay basis should be
encouraged. That particular subject (in the Preliminary Budget,
page 51 - Planning Commission $30,000.00), should also be referred to
the Governmental Efficiency and Personnel Committee for recommendation.
Councilman Barton stated he would like a recommendation
from the Governmental Efficiency and Personnel Committee as to the
validity of the expenditure, based upon manpower and also that
which falls within the user pay concept.
Mayor Hart asked if Councilman Barton wanted this referred
to the Governmental Efficiency and Personnel Committee and retain
the monies in the budget as Councilman Strong recon~nended in his
substitute motion.
Councilman Barton stated that was correct.
Upon a motion by Councilman Barton, Professional and
Consulting Services - Planning Account No. 4100 in the amount of
$30,000.00 was retained in the Operating Budget for Fiscal Year
1976-77 until the Governmental Efficiency and Personnel Committee
makes
vote:
Ayes:
Noes:
Absent:
a recommendation to the Council, by the following roll call
Councilmen Rogers, Strong, Barton, Bleecker, Christensen
Councilmen Sceales, Medders
None
138
Bakersfield, California, June 15, 1976 - Page 9
Councilman Bleecker asked, on the last motion, if the
Governmental Efficiency and Personnel Co~nmittee is to consider
whether or not this expenditure is necessary in relationship to
the number of people there are in Planning, in other words,
whether or not Planning can handle it themselves with the number
of the people they have. It is proper to refer to the Govern-
mental Efficiency and Personnel Committee because their function
is primarily in that area and asked Councilman Barton if that was
the main gest of his motion.
Councilman Barton stated, no, the other part of the
motion was whether this expenditure for Professional and Consulting
Services falls within the realm of the user pay basis.
Councilman Bleecker requested that the Clerk give that
motion verbatim, on those areas of concern, to Assistant City
~4anager Russell so it could be placed on the agenda for the
Governmental Efficiency and Personnel Committee.
Councilman Bleecker requested that large amounts in the
budget, especially in the Other Outside Services and Charges
Accounts, be explained specifically what they are for rather than
be placed in a miscellaneous account under one lump sum.
After further discussion, upon a motion by Councilman
Medders, Report No. 8-76 of the Budget Review and Finance Committee,
was accepted, and the Operating Budget of the 1976-77 Preliminary
Budget, with the Work Measurement Program and Professional and
Consulting Services being referred to the Governmental Efficiency
and Personnel Committee for study and recommendation, was approved
by the following roll call vote:
Ayes: Councilmen Rogers, Sceales, Strong, Barton, Bleecker,
Christensen, Medders
Noes: None
Absent: None
Mayor Hart declared a brief recess at this time.
Bakersfield, California, June 15, 1976 - Page 10
139
Capital Improvement Program 1976-77.
Deputy City Manager Sumbardo stated that the Council has
been given the five year Capital Improvement Program for 1976-81
and the first year of that five year program, as in the past, is
also included in the Operating Budget.
Mr. Sumbardo read a letter from the Planning Commission,
dated May 27, 1976, as follows:
Honorable Mayor and City Council
City Hall
Bakersfield, California
Honorable Gentlemen:
The Planning Commission herewith submits the
Capital Improvement Program for the years
1976-1981, inclusive, pursuant to the State
Conservation and Planning Act.
The Commission recommends approval of the five-
year Capital Improvement Program, as submitted
and reviewed, with the following modifications:
RECREATION AND PARK SERVICES
1976-77 1977-78
CALIFORNIA AVENUE PARK
Playground area 10,000
Park lighting 3,500 4,000
Group picnic facilities 14,000
Total 17,500 14,000
Modifications in the specific projects for
California Avenue Park do not change the total
amounts proposed for the 1976-77 and 1977-78
fiscal years.
Respectfully submitted
PLANNING COMMISSION OF
THE CITY OF BAKERSFIELD
JILL HADDAD, CHAIRMAN
Councilman Medders asked if there are any reserve funds
in Revenue Sharing for Fiscal Year 1976-77.
Deputy City Manager Sumbardo stated, no, there is only
six months of the usual one-year Revenue Sharing because the
present program has not been approved for extension; and even if
it is approved within the next few months, it is the staff's
140
Bakersfield, California, June 15, 1976 - Page
understanding that there will not be sufficient time for them to
fund Revenue Sharing for the remaining six months of the 1976-77
Fiscal Year so that the City would get the second half of the
money in this next year.
Councilman Medders made a motion to use the funds
allocated for the Beach Park Site, if they are not used for that
development, for lighted tennis courts in Lowell Park. This
motion was approved by the following roll call vote:
Ayes: Councilmen Rogers, Sceales, Strong, Barton, Bleecker,
Christensen, Medders
Noes: None
Absent: None
Councilman Strong requested that if certain monies are
available that consideration be given for additional Basketball
Courts at Lowell Park.
Upon a motion by Councilman Bleecker, the Capital Improve-
ment Program for Fiscal Year 1976-77, as changed, was approved by
the £ollowing roll call vote:
Councilmen Rogers, Sceales, Strong, Barton, Bleecker,
Christensen, Medders
None
None
Ayes
Noes
Absent:
Public Hearing Federal Revenue Sharing
Funds.
Mayor Hart declared the meeting open for public hearing
on Revenue Sharing Funds. No protests or objections being received
the public hearing was closed.
Adoption o£ Resolution No. 40-76 of
the Council of the City of Bakers-
field approving and adopting the
Operating Budget and the Capital
Improvement Budget for the Fiscal
Year 1976-1977.
Upon a motion by Councilman Medders, Resolution No. 40-76
of the Council of the City of Bakersfield approving and adopting
the Operating Budget and the Capital Improvement Budget for the
Bakersfield, California, June 15, 1976 - Page 12
141
Fiscal Year 1976-1977, was adopted by the following roll call
vote:
Ayes:
Councilmen Rogers, Sceales, Strong, Barton, Bleecker,
Christensen, Medders
Noes: None
Absent: None
Recess.
The Council recessed the budget sessions at 9:36 P.M.,
until a report from the Governmental Efficiency and Personnel
Committee regarding Meet and Confer Sessions with Employee Units
and Additional Position Requests is available.
MA/~y of~ld,
Calif.
ATTEST:
CITY CLERK and Ex-Offf±eio Clerk of the Council
of the C±ty of Baker-sf±eld, Californ±a