Loading...
HomeMy WebLinkAbout03/02/2017 B A K E R S F I E L D Staff: Committee members: Chris Huot, Assistant City Manager Andrae Gonzales, Chair Christopher Gerry, Administrative Analyst Willie Rivera Ken Weir SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE of the City Council - City of Bakersfield Thursday, March 2, 2017 12:30 p.m. City Hall North 1600 Truxtun Avenue, Bakersfield, CA 93301 First Floor, Conference Room A AGENDA 1. ROLL CALL 2. ADOPT MARCH 17, 2016 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. Discussion and Committee Recommendation Regarding Annual Audit Reports ending FY 2016 – Smith B. Discussion and Committee Recommendation Regarding FY 2017-18 CDBG, HOME, ESG Action Plan – Tandy / Kitchen C. Discussion and Committee Recommendation Regarding Adoption of the 2017 Committee Meeting Schedule – Huot 5. COMMITTEE COMMENTS 6. 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 SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE Thursday, March 17, 2016 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue, Bakersfield, CA 93301 The meeting was called to order at 12:04 p.m. 1. ROLL CALL Committee members Present: Councilmember, Willie Rivera, Chair Councilmember, Chris Parlier Councilmember, Ken Weir City Staff Present: Alan Tandy, City Manager Chris Huot and Steven Teglia, Assistant City Managers Christopher Gerry, Administrative Analyst – City Manager’s Office Caleb Blaschke, Management Assistant – City Manager’s Office Joshua Rudnick, Deputy City Attorney Doug McIsaac, Community Development Director Ryan Bland, Community Development Coordinator Darin Budak, Assistant Recreation and Parks Director Raj Mistry, Recreation and Parks Business Manager Additional Attendees Present: Theo Douglas, The Bakersfield Californian Nora Dominguez, University of La Verne Chuck Jehle, Mission Community Services Corporation Clarita Portillo, Mission Community Services Corporation Jesse Portillo, Mission Community Services Corporation Moises Garcia, BTTW Inc. 2. ADOPT JANUARY 25, 2016 AGENDA SUMMARY REPORT The Report was adopted as submitted. /s/ Chris Huot   ____________________________________________ Budget and Finance Committee Meeting Agenda Summary Report March 17, 2016 Page 2 3. PUBLIC STATEMENTS None 4. NEW BUSINESS A. Discussion and Committee Recommendation Regarding FY 2016-17 CDBG, HOME, ESG Action Plan – McIsaac Community Development Director McIsaac summarized the second-year of annual entitlements of the five-year Consolidated Plan. These entitlements help to improve the quality of life of low to moderate income neighborhoods, improve infrastructure in the neighborhoods, and promote job opportunities for low income individuals. The Housing and Urban Development (HUD) Community Development Block Grant Program (CDBG), HOME Investment Partnership (HOME), Emergency Shelter Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) entitlements for FY16-17 are $5,006,930. This will be the first year the City will be administrating the HOPWA program; the program was previously administered by the State of California. The total proposed budget for CDBG, HOME and ESG for FY16-17 is $5,043,930 – including revenues. FY 2016-17 Proposed CDBG Budget: The total resources available for FY 2016-17 are $3,260,214. This amount includes the CDBG entitlement of $3,253,214 and project program income of $7,000. Staff proposed the total resources be allocated as follows:  Total Administration – 20% Cap: $652,042  Long Term Obligations: $324,500  Public Services: $235,000. Services include Fair Housing Program Services, the Bakersfield Senior Center, and the Alliance against Family Violence.  Low-Mod Benefit: $2,048,672. Services include Home Access Grant Program, Curb, Gutter, Sidewalk, and Reconstruction of several areas including: El Toro Area, Union/Brundage Area, Castro Area, P Street Area, and the Oleander Area; Martin Luther King Park (MLK) Lighting Improvements – Phase 2, and the replacement of the Playground Shade Structures at three locations: Beale Park, Wilson Park, and Stiern Park. FY 2016-17 Home Investment Partnership (HOME) Budget: The total resources available for FY 2016-17 is $1,111,282, 10% of which was set aside for administrative costs. This amount includes the HOME Entitlement of $1,081,282 and $30,000 of projected program income. Staff estimates that the total Program/Project Costs and Direct Delivery for FY 2016-17 is $1,000,154. This Program/Project cost includes $166,692 in HUD mandated Community House Development Organization (CHDO) sponsored projects, and $833,462 for New Construction. FY 2016-17 Emergency Solutions Grant (ESG) Budget: The total resources available for FY 2016-17 is $287,896, 7.5% of which was set aside for administrative costs. The total resources are allocated as follows:   ____________________________________________ Budget and Finance Committee Meeting Agenda Summary Report March 17, 2016 Page 3 Staff proposes $172,736 in emergency shelter to fund the Flood Ministries Street Outreach ($22,456), the Bakersfield Rescue Mission ($63,912), Bakersfield Homeless Shelter ($63,912), and Alliance Again Family Violence ($22,4567); and $92,568 in homeless prevention to fund the Bakersfield Homeless Center Rapid Rehousing. FY 2016-17 Housing Opportunities for Persons with AIDS (HOPWA) Budget: The total resources available for FY 2016-17 is $384,538, 3% of which is set aside for administrative costs. Staff proposes allocating $373,002 to Kern county Public Health to administer the program. Chuck Jehle with Mission Community Services Corporation (MCSC) stated that his organization helps create new jobs and new businesses by providing job training classes for free. He provided the Committee with a written statement. Jesse Portillo an instructor at MCSC stated 69% of new businesses fail within the first two years of starting up; MCSC provides services to new business owners in hopes of lowering that percentage. Clarita Portillo an instructor at MCSC stated she encounters several business owners who are trying to make a difference in their lives and the lives of their children; attending the classes provided by MCSC helps them make it a reality. Moses Garcia with BTTW, Inc. stated he took the training offered by MCSC and now runs a successful tire shop corporation. Nora Dominguez with the University of Laverne stated there is a lot of outreach and assistance for established local businesses and far less for new businesses. The University of Laverne partnered with MCSC approximately six years ago and has seen the demand for their services grow. Committee Chair Rivera requested staff provide him with a list of streets completed with CDBG funding in Ward 1 for FY 2015-16 and a list of streets expected to be completed in FY 2016-17. He also asked what the MLK Park Lighting Improvements project entailed and why staff was proposing to allocate additional funding for the project if work had not yet begun after receiving funding in FY 2015-16. Recreation and Parks Assistant Director Budak stated the project entails replacing all the current light fixtures inside and outside the MLK Park including the recreational facility, as well as the installation of additional light fixtures outside in the park. Community Development Director McIsaac stated that the original concept for the project was envisioned to be funded in phases. Committee Chair Rivera referred to the FY 2016-17 CDBG Assistance memorandum included in the packet and asked if the assigned priority number referred to the urgency in completing the project. Community Development Director McIsaac stated it did not as projects are worked on simultaneously and completed at different times.   ____________________________________________ Budget and Finance Committee Meeting Agenda Summary Report March 17, 2016 Page 4 Committee Chair Rivera asked if the administration funding allocation in the proposed CDBG budget paid for staff, and if so, how many. Community Coordinator Bland stated the allocation pays for approximately six full time employees in the Economic and Community Development division. Committee Chair Rivera requested a report detailing what percentage of salary is covered by the CDBG budget for each employee. He proposed delaying the allocation for the MLK Park Lighting Improvement project and instead allocate funding for the MCSC small business training project. He would also like to allocate funding for the Mexican American Opportunity Foundation rehabilitation of Vida Scott Center with the condition that staff contact the County and explore the option to jointly fund the project. Committee member Parlier expressed his gratitude and was pleased to see the Castro Area curb, gutter, sidewalk and reconstruction on the list of projects being funded. Committee member Weir asked if a vote on the action plan was necessary and whether the $100,000 proposed allocation for the MLK Park Lights Improvement project could be left unallocated until a later date. City Manager Tandy stated that there are posting notification requirements. Community Development Director McIsaac added that the proposed spending plan requires a 30-day posting notice prior to a hearing and an adopted Action Plan needs to be submitted to HUD by mid-May. Community Development Coordinator Bland stated funding can be allocated to a generic project and changed to a specific project on the hearing date by the City Council. The public notice must state all funds are fully allocated but changes to projects and allocations can take place during the hearing. Committee Chair Rivera made a motion to present the proposed Action Plan to the full City Council with the following changes: adjust the total funding allocated for the MLK Park Lighting Improvement – Phase 2 project to $75,000, allocate $25,000 to MCSC. Staff is to contact the County to explore the possibility of jointly funding for two projects: 1) the Mexican American Opportunity Foundation’s rehabilitation of Vida Scott Center and 2) the MLK Park Lighting Improvements project, as the park is in County boundaries and utilized by County residents. The motion was unanimously approved. 5. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting adjourned at 12:55 p.m HKCJBJUWFHWJ:GOFGP FW CGGWJBEOKHWGV EExX9x89X7xj ’&5Pk5qEwE–IPLkGGT5k&WPEETUJ W V )&5&(T:GkE–Tg&(ET5BE’IqgE’&W5LIG RF CV fkGP&5EpJERAIq3DEFI5T5LkE,I(kLq&( KHWGV xx9Xh9X7xj THFKV E USNIGMWV EmWBIqESkK&(qPEq&E:kESkNk((kBEq&EdWBykqET5BEFI5T5LkE’&AAIqqkkb E xJE’&AK(k3k5PIUkEm55WTGEFI5T5LITGESkK&(qEr’mFSHEN&(Eq3kENIPLTGEgkT( k5BkBE.W5kEh7DEX7xjJ XJEmy(kkBEvK&5E’&5BIqI&5PESkK&(qEN&(Eq3kENIPLTGEgkT(Ek5BkBE.W5kEh7D X7xjJ hJEmWBIq&(E’&AAW5ILTqI&5EuIq3Ea3&PkE’3T(ykBEuIq3El&Uk(5T5Lk rRmRExx8Eckqqk(HEN&(ENIPLTGEgkT(Ek5BkBE.W5kEh7DEX7xjJ 8JEi5BkKk5Bk5qEmWBIq&(PESkK&(qEME’&AKGIT5LkE-Iq3E’&5q(TLqWTG SktWI(kAk5qPE(kGTqIUkEq&Eq3kEdTek(PNIkGBERW:(kyI&5TGEuTPqk-Tqk( –T5TykAk5qEsGT5EN&(Eq3kEgkT(Ek5BkBE.W5kEh7DEX7xjJ nJEi5BkKk5Bk5qEmWBIq&(PESkK&(qE&5EmKK(&K(ITqI&5PEcIAIqEu&(eP3kkq rlmffEcIAIqHE&NEq3kE’IqgE&NEdTek(PNIkGBEN&(Eq3kENIPLTGEgkT(Ek5BkB .W5kEh7DEX7xjJ jJEi5BkKk5Bk5qEmWBIq&(PESkK&(qEMEST:&:T5eEm(k5TDEa3kTqk(D ’&5Uk5qI&5E’k5qk(DEdTek(PNIkGBEiLkERK&(qPE’k5qk(EoEd(Iy3q3&WPk fkq-&(ePEmAK3Iq3kTq(kEN&(Eq3kENIPLTGEgkT(Ek5BkBE.W5kEh7DEX7xjJ UWHRROFGM CCGBKHWJ BV RqTNNE(kL&AAk5BPE(kNk((TGEq&Eq3kEdWBykqET5BEFI5T5LkE’&AAIqqkkJ NHMDEF SBKV xJEEa3kE’IqgCPE’&AK(k3k5PIUkEm55WTGEFI5T5LITGESkK&(qEr’mFSHDEL&AA&5GgE(kNk((kBEq&ETP q3kEm55WTGEmWBIqESkK&(qDEN&(Eq3kENIPLTGEgkT(Ek5BkBE.W5kEh7DEX7xjE-IGGE:kEK(&UIBkBEq&Eq3k ’IqgE’&W5LIGEK(I&(Eq&Eq3kEPqT(qE&NEq3IPEAkkqI5yJEEmEL&KgE&NEq3kE(kK&(qE-IGGETGP&E:kE&5ENIGkEI5Eq3k ’IqgE’Gk(eCPE&NNILkEN&(EKW:GILE(kUIk-JEEa3kE’mFSE(kK(kPk5qPEq3kE’IqgCPENI5T5LITGEPqTqkAk5qP TPE&NE.W5kEh7DEX7xjDE-3IL3ET(kETWBIqkBE:gEq3kETLL&W5qI5yENI(AE&NEd(&-5Em(APq(&5y mLL&W5qT5LgE’&(K&(TqI&5JEEa3kELW((k5qEgkT(ETWBIqE&KI5I&5EIPPWkBE:gEq3kE&WqPIBkETWBIq&(P I5BILTqkPEq3TqEq3kE’IqgEL&AKGIkBDEI5ETGGEATqk(ITGE(kPKkLqPDE-Iq3ETLL&W5qI5yEK(I5LIKTGP yk5k(TGGgETLLkKqkBEI5Eq3kEv5IqkBERqTqkPE&NEmAk(ILTJ E XJEEa3kEmy(kkBEvK&5E’&5BIqI&5PESkK&(qEIPEBkPIy5kBEq&EI5L(kTPkEkNNILIk5LgDEI5qk(5TG L&5q(&GPET5B9&(ENI5T5LITGE(kK&(qI5yET5BEI5LGWBkPET5gE(kK&(qT:GkEL&5BIqI&5PE5&qkBEBW(I5yEq3k mWBIqJEEmEL&KgE&NEq3IPE(kK&(qE-IGGE:kEK(&UIBkBEq&Eq3kE’IqgE’&W5LIGEK(I&(Eq&Eq3kEPqT(qE&NEq3IP AkkqI5yJEEmEPWAAT(gE&NE(kK&(qkBEL&5BIqI&5PET(kEI5LGWBkBEI5Eq3kE(kK&(qJEEa3kE(kK&(qETGP& TBB(kPPkPEL&5BIqI&5PEIBk5qINIkBEI5Eq3kEK(I&(EgkT(E-3IL3E3TUkETGGE:kk5E(kP&GUkBEq&Eq3k TWBIq&(PCEPTqIPNTLqI&5J E hJEEa3kERmRExx8EGkqqk(EIPEq&EL&AAW5ILTqkEq&Eq3&PkEL3T(ykBE-Iq3Ey&Uk(5T5LkEI5Eq3kELIqgEq3k PL&KkE&NETWBIqEK(&LkBW(kPEKk(N&(AkBDEPIy5INILT5qENI5BI5yPDET5BE&q3k(EI5N&(ATqI&5DEPWL3ETP BIPTy(kkAk5qPE-Iq3EAT5TykAk5qDETWBIqETB6WPqAk5qPET5BEPIy5INILT5qEkPqIATqkPDEq3TqET(k5Cq L&AAW5ILTqkBEI5Eq3kETWBIqkBENI5T5LITGEPqTqkAk5qPJEm5&q3k(EIAK&(qT5qEK&(qI&5E&NEq3kEGkqqk(EIP q3kEK(kPk5qTqI&5E&NET5gEKTPPkBE6&W(5TGEk5q(IkPJEa3kPkET(kEk5q(IkPEq3TqE-k(kE5&qEK&PqkBEq& q3kETWBIqkBENI5T5LITGPDE:kLTWPkDEI5Eq&qTGDEq3kgE3TUkE5&EATqk(ITGEkNNkLqE&5Eq3kENI5T5LITG PqTqkAk5qPDE:WqET(kEK(kPk5qkBEq&Eg&WEI5Eq3IPEGkqqk(EI5E&(Bk(Eq&E:(I5yEq&Eg&W(ETqqk5qI&5E&q3k( e5&-5Ek((&(PEq3TqE-k(kEN&W5BEBW(I5yEq3kETWBIqJEf&EPWL3Ek5q(IkPE-k(kEK(&K&PkBEI5Eq3k LW((k5qEgkT(JEEmEL&KgE&NEq3IPE(kK&(qE-IGGE:kEK(&UIBkBEq&Eq3kE’IqgE’&W5LIGEK(I&(Eq&Eq3kEPqT(qE&N q3IPEAkkqI5yJ E 8JE’&5q(TLqE(ktWI(kAk5qPEL&5qTI5kBEI5E’IqgE&NEdTek(PNIkGBEmy(kkAk5qE0jwxnhETPETAk5BkB :gEmy(kkAk5qPE0jwxnhrnHDE0jwxnhr8HDE00w88DE4nwx/0ET5BE/Xwx7jETKKGgEq&E&Kk(TqI&5PE&N q3kEdTek(PNIkGBERW:w(kyI&5TGEuTPqk-Tqk(EAT5TykAk5qEsGT5JEEa3kE’IqgCPEL&AKGIT5LkE-Iq3 L&5q(TLqE(ktWI(kAk5qPEIPETWBIqkBE&5ET5ET55WTGE:TPIPJEEa3kELW((k5qE’&AKGIT5LkESkK&(qD IPPWkBE:gEq3kE&WqPIBkETWBIq&(PDE-IGGE:kEK(&UIBkBEq&Eq3kE’IqgE’&W5LIGEK(I&(Eq&Eq3kEPqT(qE&NEq3IP AkkqI5yJEEa3k(kE-k(kE5&ETWBIqENI5BI5yPJ E nJEEa3kE’IqgCPEI5BkKk5Bk5qETWBIq&(PEd(&-5Em(APq(&5yEmLL&W5qT5LgE’&(K&(TqI&5E3TUk L&AKGkqkBEq3kI(ET55WTGE(kUIk-E&NEq3kEmKK(&K(ITqI&5PEcIAIqEu&(eP3kkqEK(kKT(kBE:gEq3kE’Iqg I5ETLL&(BT5LkE-Iq3ERkLqI&5ExJnE&NEm(qILGkE2iiidE&NEq3kE’TGIN&(5ITE’&5PqIqWqI&5ErlmffEcIAIqHJE a3IPET55WTGE(kUIk-EIPEKk(N&(AkBE:gEq3kETWBIq&(PETPEKT(qE&NEq3kI(EL&5q(TLqEq&EK(&UIBkETWBIqI5y Pk(UILkPEq&Eq3kE’IqgE&NEdTek(PNIkGBJEEa3kETy(kkBEWK&5E(kUIk-EK(&LkBW(kPET(kEPW:PqT5qITGGg GkPPEI5EPL&KkEq3T5ET5ETWBIqET5BEq3k(kN&(kE5&ETWBIqE&KI5I&5EIPEk1K(kPPkBE(kyT(BI5yEq3k LTGLWGTqI&5JEEmEL&KgE&NEq3kI(E(kUIk-EGkqqk(E-IGGE:kEK(&UIBkBEq&Eq3kE’IqgE’&W5LIGEK(I&(Eq&Eq3k :kyI55I5yE&NEq3IPEAkkqI5yJ E jJEmqqTL3kBEIPEq3kEI5BkKk5Bk5qETWBIqE(kK&(qEN&(Eq3kEST:&:T5eEm(k5TDEa3kTqk(DE’&5Uk5qI&5 ’k5qk(DEdTek(PNIkGBEiLkERK&(qPE’k5qk(EoEd(Iy3q3&WPkEfkq-&(ePEmAK3Iq3kTq(kDEN&(Eq3kENIPLTG gkT(Ek5BkBE.W5kEh7DEX7xjJEEa3IPETWBIqE(kK&(qEK(kPk5qPEq3kENI5T5LITGEPqTqkAk5qPEN&(Eq3IP &Kk(TqI&5TGEW5IqETPE&NE.W5kEh7DEX7xjJEEa3kEAT5TykAk5qEL&AKT5gErm lHEIPE(ktWI(kBEq& PW:AIqET5EI5BkKk5Bk5qETWBIqE(kK&(qE&NEq3kI(E&Kk(TqI&5PEq&Eq3kE’IqgETNqk(Eq3kEk5BE&NEkTL3 NIPLTGEgkT(JEEa3IPETWBIqE(kK&(qE-TPEK(kKT(kBE:gEq3kETLL&W5qI5yENI(AE&NEdT(:IL3DEc&5yL(Ik(D )&&Kk(EoEpI5yJ E RqTNNEIPE(kL&AAk5BI5yEq3kE’IqgE’&W5LIGE(kNk(ETGGE&NEq3kPkE(kK&(qPEq&Eq3kEdWBykqET5BEFI5T5Lk ’&AAIqqkkEN&(E(kUIk-ET5BEBIPLWPPI&5JEEvK&5EL&AKGkqI&5E&NEq3kE’&AAIqqkkE(kUIk-Eq3kE(kK&(qPE-IGG (kqW(5Eq&Eq3kENWGGE’&W5LIGETqETENWqW(kE’&W5LIGEAkkqI5yEN&(ETLLkKqT5LkJ HWWHMACGBWUV ,kPL(IKqI&5 agKk nJEm lEm(k5TEmWBIqESkK&(q dTLeWKE–Tqk(ITG Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Consolidated Financial Statements June 30, 2016 C O N T E N T S Page(s) Independent Auditors’ Report 1 - 2 Management’s Discussion and Analysis (Required Supplementary Information) 3 - 8 Consolidated Financial Statements Consolidated statement of net position 9 Consolidated statement of revenues, expenses and change in net position 10 Consolidated statement of cash flows 11 - 12 Notes to consolidated financial statements 13 - 19 Supplementary Information Consolidated schedule of operating expenses 20 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 21 - 22 Schedule of Findings 23 - 24 Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Management’s Discussion and Analysis - 3 - JULY 2015 TO JUNE 2016 RABOBANK ARENA, THEATER, CONVENTION CENTER, SAN JOAQUIN COMMUNITY HOSPITAL ICE CENTER OF BAKERSFIELD AND BRIGHT HOUSE NETWORKS AMPHITHEATRE MANAGEMENT DISCUSSION AND ANALYSIS This section of Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre’s (the Facilities) annual financial report presents our discussion and analysis of the Facilities’ financial performance during the fiscal year ended June 30, 2016. Please read it in conjunction with the Facilities’ consolidated financial statements, which follow this section. FINANCIAL HIGHLIGHTS  In FY 2015-2016 our top six events were as follows: o Juan Gabriel, Monterrey Promotions., Net Income of $124K o Ringling Brothers Circus, Feld Entertainment, Net Income of $118K o Disney On Ice, Feld Entertainment, Net Income of $110K o Kevin Hart, Live Nation, Net Income of $85K o Florida Georgia Line, Live Nation, Net Income of $78K o CIF State Wrestling Championship, CIF, Net Income of $76K  The Rabobank Theater was host to 18 concerts in FY 2015-2016. Those 18 concerts resulted in an attendance of over 33,000 people and net income of over $184K.  The Broadway in Bakersfield Theater Series produced by Jam Theatricals from Chicago held their 11th season of shows at Rabobank Theater with good results. There were three shows in the series which resulted in a net income of $25K.  The US Falun Dafa Association brought the Chinese historical dance production of Shen Yun back to Rabobank Theater in April 2016. The two shows were extremely well received, with a net income of over $27K. OVERVIEW OF THE FINANCIAL STATEMENTS The annual report includes this management’s discussion and analysis report, the independent auditors' report and the basic consolidated financial statements of the Facilities. REQUIRED FINANCIAL STATEMENTS The financial statements of the Facilities report information using accounting methods similar to those used by private sector companies. These statements offer short and long term financial information Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Management’s Discussion and Analysis - 4 - about its activities. The Statement of Net Position includes all of the Facilities’ assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to the Facilities’ creditors (liabilities). It also provides the basis for evaluating the Facilities’ capital structure as well as assessing the liquidity and financial flexibility of the Facilities. All of the current year’s revenues and expenses are accounted for in the Statement of Revenues, Expenses and Change in Net Position. This statement measures the success of the Facilities’ operations over the past year and can be used to determine whether the Facilities has successfully recovered all its costs through its user fees and other charges, profitability and credit worthiness. The final required financial statement is the Statement of Cash Flows. This statement reports cash receipts, cash payments, and net changes in cash resulting from operations, investing, and financing activities and provides answers to such questions as where did cash come from, what was cash used for, and what was the change in the cash balance during the reporting period. FINANCIAL ANALYSIS OF THE FACILITIES One of the most important questions asked about the Facilities’ finances is, “Are the Facilities as a whole better off or worse off as a result of this year’s activities?” The Statement of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position report information about the Facilities’ activities in a way that will help answer this question. These two statements report the net position of the Facilities and the changes in net position. One can think of the Facilities’ net position - the difference between assets and liabilities - as one way to measure financial health or financial position. Over time, increases or decreases in the Facilities’ net position is one indicator of whether its financial health is improving or deteriorating. However, one will need to consider other non-financial factors such as changes in economic conditions, population growth, and new or changed government legislation. Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Management’s Discussion and Analysis - 5 - Below is a summary of the Consolidated Statements of Net Position, Table A-1: $% 20162015ChangeChange Current assets2,835,524$ 2,686,640$ 148,884$ 6% Noncurrent capital assets18,778 - 18,778 100% 2,854,302$ 2,686,640$ 167,662$ 6% Current liabilities3,027,399$ 2,859,737$ 167,662$ 6% Other liabilities250,000 250,000 - 0% Total liabilities3,277,399 3,109,737 167,662 5% Invested in capital assets 18,778 - 18,778 100% Unrestricted (441,875) (423,097) (18,778) 4% Total net position (423,097) (423,097) - 0% 2,854,302$ 2,686,640$ 167,662$ 6% Table A-1 Condensed Consolidated Statements of Net Position   Asset and liability balances for both years are very consistent. The slight change in net position (6%) is primarily due to an increase in cash and accounts payable balances. Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Management’s Discussion and Analysis - 6 - $% 20162015ChangeChange Operating revenues7,420,662$ 6,924,306$ 496,356$ 7% Less direct event expenses4,307,851 4,010,625 297,226 7% Gross profit3,112,811 2,913,681 199,130 7% Operating expenses3,991,689 4,087,507 (95,818) -2% Operating loss(878,878) (1,173,826) 294,948 -25% Nonoperating income463,160 758,108 (294,948) -39% Change in net position(415,718) (415,718) - 0% Net position, beginning of year(423,097) (423,097) - 0% Contributions 415,718 415,718 - 0% Net position, end of year(423,097)$ (423,097)$ -$ 0% Table A-2 Condensed Consolidated Statements of Revenues, Expenses and Changes in Net Position Results from operations were $295k better than the prior year. These improved results can be attributed to a strong year for Rabobank Theater along with increased revenues for luxury suites, signage and advertising, and concessions revenue. We also saw slight increases in merchandise, parking and facility fee revenues. Operating expenses decreased primarily due to the operations department and the San Joaquin Community Hospital Ice Center of Bakersfield managing down their expenses. Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Management’s Discussion and Analysis - 7 - Over (Under)% ActualBudgetBudgetof Budget Operating revenues7,420,662$ 6,194,254$ 1,226,408$ 20% Less direct event expenses4,307,851 2,556,291 1,751,560 69% Gross profit 3,112,811 3,637,963 (525,152) -14% Operating expenses 3,991,689 4,013,975 (22,286) -1% Nonoperating income 463,160 - 463,160 100% Change in net position(415,718)$ (376,012)$ (39,706)$ 11% Year Ended June 30, 2016 Table A-3 Change in Net Position, Actual to Budget Gross operating revenue for the year was higher than budget due to the additional events that were held. Increases were found across rent, merchandise, parking and ticket rebates. Although revenues were in excess of budget, direct event expenses were significantly over budget. The increase in actual expense was due to increases in event labor and associated expenses that were necessary to put those events on. Operating expenses came in lower than budget overall. $% June 30, 2016June 30, 2015ChangeChange Small Equipment18,896$ 10,099$ 8,797$ 87% Contruction in progress10,819 - 10,819$ 100% 29,715 10,099 19,616 194% Less accumulated depreciation10,93710,099838 8% Net property and equipment18,778$ -$ 18,778$ 100% Table A-4 Capital Assets A remodel of the Bank Room is in progress and accounts for the Construction in Progress. Coin lockers were purchased for the San Joaquin Community Hospital Ice Center and accounts for the increase in small equipment. Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Management’s Discussion and Analysis - 8 - ECONOMIC FACTORS AND NEXT FISCAL YEAR Several key factors are expected to affect next fiscal year:  The economic climate in Bakersfield and Kern County continues to play a large part in the financial performance of the Facilities. The continued downturn in oil prices and the scaling back of related production operations have had a negative impact on ticket sales for family shows, sponsorship sales and suite leases; however we are exploring different markets to combat the loss in the sponsorship revenues and suite lease agreements. We are continuing to actively seek new and different ways to advertise events, package new items into sponsorship entitlements, and are finding new ways to increase suite revenues. Additional growth in sponsorship revenues is expected, as we continue to work closely with AEG Global Partnerships on renewals with increased cash amounts and several opportunities that were started in FY 2015-2016.  In FY 2016-2017, the Condors will be playing their second season as the AHL affiliate to the Edmonton Oilers NHL hockey team. The higher caliber of play in the AHL is expected to continue to bring in higher attendance, which will result in higher ancillary revenues across the board. The team will be playing their first outdoor hockey game in team history. This game is expected to create an additional buzz in the community and it is expected to be a great addition to the season.  We continue to work closely with the Aramark management and staff to strive to maximize food and beverage commission revenues at every opportunity. The contract was just renewed and as part of the contract Aramark is going to be doing upgrades to the kitchen that will help with the efficiency of the kitchen staff. Two new portable stands are being acquired that will increase points of sale and give a much needed new variety of food choices for the patrons.  At the San Joaquin Community Hospital Ice Center, the youth hockey program that was in place changed to a Junior Condor program which stimulated a renewed interest in the youth hockey community. With the new benefit of the Condors association, a junior varsity team was added that will practice twice a week and play eight home games that will result in higher revenues for the ice center.  The event calendar for the first six months of the fiscal year is fairly full with a wide variety of events. There are more concerts confirmed at this point in time for this fiscal year than the prior year. In addition to those concerts, we have scheduled the usual family shows and conventions that are staples to the event calendar. With a renewed philosophy as to booking shows and creating attractive deals, the booking department is working hard with outside promoters to secure additional events for the facilities. CONTACTING RABOBANK ARENA This financial report is designed to provide a general overview of the finances and accountability of Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre. If you have questions about this report contact Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre, 1001 Truxtun Avenue, Bakersfield, California 93301, Attention Director of Finance. - 9 - ASSETS Current Assets Cash 2,190,367$ Accounts receivable, trade, net of allowance for doubtful accounts of $147,632 465,777 Accounts receivable, other 65,884 Prepaid expenses 113,496 2,835,524 Capital Assets , at cost 29,715 Less accumulated depreciation 10,937 18,778 2,854,302$ LIABILITIES AND NET POSITION Current Liabilities Accounts payable, trade 421,584$ Accounts payable, related party 383,778 Accrued expenses 163,877 Deferred revenues 2,014,813 Advance from City of Bakersfield 43,347 3,027,399 Other Liabilities 250,000 Net Position Invested in capital assets, net of related debt 18,778 Unrestricted (441,875) (423,097) 2,854,302$ See Notes to Consolidated Financial Statements. Rabobank Arena, Theater, Convention Center, June 30, 2016 Consolidated Statement of Net Position and Bright House Networks Amphitheatre San Joaquin Community Hospital Ice Center of Bakersfield - 10 - Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Consolidated Statement of Revenues, Expenses and Change in Net Position For the Year Ended June 30, 2016 Net revenues: Facilities rent2,825,470$ Suites 1,363,326 Signage and advertising869,098 Concession commissions704,899 Ice Sports Center, general admissions329,206 Ticketing fees451,684 Parking 204,427 Facility fees312,313 Ice Sports Center, other revenue279,508 Merchandise51,929 Other income28,802 7,420,662 Direct event expenses: Event labor1,247,141 Other direct event expenses3,060,710 4,307,851 Gross profit3,112,811 Operating expenses 3,991,689 Operating loss(878,878) Nonoperating income: Management reimbursement of operating loss463,160 Change in net position(415,718) Net position, beginning of year (423,097) Contributions received from the City of Bakersfield415,718 Net position, end of year (423,097)$ See Notes to Consolidated Financial Statements. - 11 - Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Consolidated Statement of Cash Flows For the Year Ended June 30, 2016 Cash flows from operating activities: Cash received from customers1,873,148$ Cash received from contracts for services5,821,968 Cash payments to suppliers for goods and services (5,349,294) Cash payments to employees for services (2,366,534) Net cash used in operating activities (20,712) Cash flows from capital and related financing activities: Acquisition of capital assets (19,616) Cash flows from noncapital and related financing activities: Reimbursement from AEG for current year operating loss 463,160 Net increase in cash and cash equivalents 422,832 Cash and cash equivalents, beginning of year 1,767,535 Cash and cash equivalents, end of year 2,190,367$ See Notes to Consolidated Financial Statements. - 12 - Reconciliation of operating loss to net cash used in operating activities: Operating loss (878,878)$ Adjustments to reconcile operating loss to net cash used in operating activities: Depreciation 838 Changes in operating assets and liabilities: Accounts receivable 346,912 Prepaid expenses (72,964) Accounts payable, trade 440,904 Accounts payable, related party 178,272 Accrued expenses (36,302) Deferred revenues 506 Net cash used in operating activities (20,712)$ Noncash investing and financing activities: Contribution to unrestricted net position of advances from the City of Bakersfield 415,718$ Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Sports Center of Bakersfield and Bright House Networks Amphitheatre Notes to Consolidated Financial Statements - 13 - Note 1. Nature of Business and Significant Accounting Policies Nature of business: The City of Bakersfield (the City) owns the Rabobank Arena, Theater and Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre (the Facilities). The Rabobank Arena was built by the City and began operations in October 1998. It is the only building of its kind in the Bakersfield area. In December 2003, the City opened the San Joaquin Community Hospital Ice Center of Bakersfield (Ice Center). The Ice Center is used for public skating, hockey leagues, figure skating, and other community events. In February 2007, the City opened the Bright House Networks Amphitheatre (the Amphitheatre), an outdoor theatre located in Bakersfield. The activities of the Arena, Theater, Convention Center, Ice Center and Amphitheatre (the Facilities) are recorded in a special revenue fund of the City’s accounting records. The City owns all the assets of the Facilities, and accordingly, all amounts related to the operation of the Facilities belong to the City. The management company operating the Facilities has a fiduciary responsibility under the management agreement to maintain and operate the Facilities in the best interests of the City and the community. In an agreement dated March 20, 2013, the City contracted with AEG Management Bakersfield, LLC and AEG Facilities, LLC (the Company or AEG) to begin overseeing the operation and management of the Facilities for a term of ten years. The City, at its sole discretion, may terminate this agreement effective June 30, 2018, if the City provides the manager with notice of termination no later than six months before June 30, 2018. On mutual agreement between both parties, the term may be extended one five-year period. AEG was hired by the City for its expertise in the management, operation and marketing of public assembly facilities. Principles of consolidation: The consolidated financial statements of the Facilities include the accounts of the Rabobank Arena, Theater and Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre after elimination of all significant inter-company accounts and transactions. Basis of accounting: The Facilities’ basic financial statements are presented on the full accrual basis of accounting and conform to accounting principles generally accepted in the United States of America. The Facilities utilize accrual basis accounting in which revenues are recognized when earned and expenses are recorded when a liability is incurred or economic assets are used. Proprietary funds distinguish operating revenues and expenses from nonoperating Notes to Consolidated Financial Statements - 14 - items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Revenues and expenses not meeting this definition are reported as nonoperating. Revenue recognition: Suite contracts Revenues from suites are recognized over the contract period per the contract terms. Contracts are billed throughout the year. The suite payments are recorded as deferred revenue until earned and are recognized over the contract period. Naming rights, signage and advertising contracts Revenues from naming rights, signage and advertising contracts are recognized over the contract period per the contract terms. Contracts are billed according to the contract terms. Payments are recorded as deferred revenue until earned and recognized over the contract period. Ticket sales The Facilities, through its contract with Outbox AXS, LLC, sells tickets to events as an agent of the event holder at the on-site box office location and through the telephone and internet. All proceeds from the sale of tickets belong to the event holder. The ticket sales are recorded as deferred revenue when sold. After the event has occurred, settlement with the event holder takes place. The net of total ticket sales less event expenses such as facility rent and reimbursement of direct event expenses is then paid to or received from the event holder. The event ticket proceeds are removed from the deferred revenue account in the month the event occurred. The Facilities earn a ticketing fee on the sale of event tickets that take place through the telephone and internet. Revenues from these fees are recorded as deferred revenue at the time of sale and are recognized in the month the event occurred. Event revenues Revenues from the Facilities’ events such as facilities rent, direct event expense reimbursements, concession commissions, parking and merchandise are recognized in the month the event occurred. Net position: The Facilities utilize a net position presentation in accordance with GASB Statement 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments, as amended by GASB 63, Financial Reporting of Deferred Outflows or Resources, Deferred Inflows of Resources, and Net Position. Net position is categorized as invested in capital assets, net of related debt, restricted components of net position and unrestricted components of net position. These categories are defined as follows: Notes to Consolidated Financial Statements - 15 - Invested in capital assets, net of related debt - This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net position component as the unspent proceeds. Restricted components of net position - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Generally, a liability relates to restricted assets if the asset results from a resource flow that also results in the recognition of a liability or if the liability will be liquidated with the restricted assets reported. Unrestricted components of net position - This component of net position is the net amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents: For purposes of reporting cash flows, the Facilities considers highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents also include cash on hand and amounts deposited with banks. Custodial credit risk: The California Government Code and the Facilities’ investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits and investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the Facilities’ deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Notes to Consolidated Financial Statements - 16 - Concentration of credit risk: Credit is extended, in the form of accounts receivable, to customers located primarily in the County of Kern, California. Trade accounts receivable: Trade accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to valuation allowance based on its assessments of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Based on management’s assessment of the credit history with customers having outstanding balances and current relationships with them, it has concluded that an allowance for doubtful accounts is necessary; therefore, an allowance of $147,632 has been recorded as of June 30, 2016. Capital assets: The Facilities’ capital assets are recorded at cost. Depreciation is computed using the straight line method over estimated useful lives of 3 - 10 years. Maintenance and repairs of capital assets are charged to operations and major improvements are capitalized. Upon retirement, sale or other disposition of capital assets, the cost and accumulated depreciation are eliminated from the accounts and gain or loss is included in the consolidated statement of revenues and expenses. The following is a summary of changes in the Facilities’ capital assets for the year ended June 30, 2016: Balance Balance 6/30/15AcquisitionsRetirements6/30/16 Construction in progress -$ 10,819 10,819$ Small equipment 10,099 8,797 - 18,896 10,099$ 19,616$ -$ 29,715$ BalanceDepreciation Balance 6/30/15ExpenseRetirements6/30/16 Small equipment 10,099$ 838$ -$ 10,937$ Assets - At Cost Accumulated Depreciation Note 2. Advance from City of Bakersfield During the normal course of business, the City pays expenses that are allocated to the operation of the Facilities. These expenses include payroll and related expenses for the City employees and equipment rent. The amount of the advance fluctuates throughout the year depending on allocated monthly expenses and additional cash flow needs. The advance Notes to Consolidated Financial Statements - 17 - is an intercompany account that is eliminated in the consolidation for the preparation of the City's financial statements. The amount charged by the City to the Facilities was $454,596 for the year ended June 30, 2016 and the amount due to the City at June 30, 2016 was $43,347. Note 3. Deferred Revenue Deferred revenue at June 30, 2016 consists of the following: Suite contracts 589,508$ Ticket sales, future events 860,459 Naming rights 251,545 Sponsorship agreements 129,418 Ticket rebates 92,933 Event deposits 90,950 2,014,813$ Note 4. Administrative Services Agreements AEG provides administrative services to the City for the Facilities. Compensation for these services is a base fee of $400,000 for the first year, paid in equal monthly installments. The base fee will be adjusted annually (up or down) by the Consumer Price Index, but in no event will any increase or decrease exceed three percent. For the year ended June 30, 2016, AEG received $413,724 in total management fees from the City for the three respective facilities. In addition to the base fee, AEG receives an incentive equal to a percentage of the difference between the actual net operating profits or net operating losses for each facility and a benchmark. AEG receives an incentive of: 1) 25% of the difference between the actual net operating profit (loss) and a $332,575 loss realized by the Arena, Theater and Convention Center; 2) 50% of the difference between the actual net operating profit (loss) and a $20,785 loss realized by the Ice Center and 3) 50% of the difference between the actual net operating profit (loss) and a $62,358 loss realized by the Amphitheater. The incentive fee was $-0- for the year ended June 30, 2016. The management agreement also includes a net loss guarantee where if the net operating loss in any given fiscal year for all of the Facilities taken in the aggregate exceeds a base amount of $415,718, AEG will reimburse the Facilities in the amount the net operating loss exceeds $415,718. For the year ended June 30, 2016, AEG reimbursed $463,160 to the Facilities for net operating losses that exceeded the base amount. Per the management agreement, AEG was to make a one-time contribution of $250,000, from its own monies, to an event development account and is to be utilized for future events. In the event of early termination, AEG is authorized to withdraw any amounts remaining in the event development account as of the date of the early termination. The City is entitled to any balance in the account upon the expiration of the management agreement. The contribution from AEG is included in other liabilities on the consolidated statement of net position. Notes to Consolidated Financial Statements - 18 - The following is a summary of the other liabilities transactions for the year ended June 30, 2016: Payable Payable 6/30/15AdditionsDeletions6/30/16 Other liability 250,000$ -$ -$ 250,000$ ARAMARK The Facilities is currently operating under a contract with ARAMARK to operate concession and catering services for the Arena, Theater & Convention Center (the Facilities), effective through June 30, 2018. The Facilities is entitled to receive 35% of the first $600,000 in gross concession receipts and 40% of receipts in excess of $600,000 but less than $2,000,000 and 45% of any amount exceeding $2,000,000 annually. For the year ended June 30, 2016, the Facilities received $704,899 in gross concession and catering receipts from ARAMARK. Note 5. Commitments The Facilities have entered into various long-term contracts and leases. At June 30, 2016, outstanding commitments consist of the following: Rabobank naming rights: The City has entered into a license and naming rights agreement with Rabobank N.A (Bank) for the exclusive naming rights of “Rabobank Arena, Theater, and Convention Center”. The agreement calls for the City and AEG to use reasonable efforts to identify the Arena as the “Rabobank Arena, Theater, and Convention Center” in all official documents, press releases, advertising, announcements, answering of telephones, as well as all promotion and print material produced or disseminated by or for the account of the City. The Bank has agreed to pay $350,000 per year with the contract terminating January 31, 2025. Ticket sales: The Facilities have entered into a licensed user agreement with Outbox AXS, LLC (AXS) to be the exclusive provider for ticket sales for any event presented at the Facilities. Under the agreement, AXS has the authority to act as an agent for the Facilities for ticket sales to the general public by any and all means including telephone and internet. AXS earns fees from the ticket sales such as inside ticket charges, customer convenience charges, credit card charges, handling charges and ticket sale royalties. AXS collects these fees as tickets are sold and the net amount is remitted to the Facilities weekly. This agreement began in July 2015 and is effective through the date which the AEG management agreement expires. Hockey lease: The City has entered into a lease agreement, which has been assigned to KG Oilers Corporation, for exclusive use of the Facilities for East Coast Hockey League (ECHL) Notes to Consolidated Financial Statements - 19 - games. KG Oilers Corporation has agreed to pay $3,500 for each Preseason home game played, $6,525 for each Regular Season home game played and $1,525 for each Post Season home game played. The fees will be subject to change at two-year intervals beginning on February 1, 2016. The change in payment will be based on the changes in the Consumer Price Index. No change in pricing was made during the current year. The KG Oiler Corp. (Tenant) receives $5,370 per luxury suite leased by the Arena or $145,000 if all twenty-seven suites are leased. In addition to the suite payment, on suite leases sold or renewed after the effective date, an advertising and promotional inventory package will be included that will be provided by the Tenant as part of each new sale or renewal of a suite lease. The suite lease pricing will be adjusted to incorporate the fair market value of the advertising and promotional inventory, which will be estimated to be 10% of the new suite lease price. Tenant will receive the entire amount of the portion of the advertising and promotional inventory package for each new sale or renewal of the suite lease after the effective date. In no case will Tenant receive a sum less than $6,500 when combining the suite lease payment and suite advertising package payment for each suite lease sold or renewed after the effective date. The $6,500 threshold will be subject to change at two-year intervals beginning February 1, 2016. The change in payment is to be based on the changes in the Consumer Price Index. No change in pricing was made in the current year. For the year ended June 30, 2016, KG Oiler Corp. received $142,087 for the twenty four suites leased. Concession and catering services: The Facility has entered into an agreement with ESC Enterprises (ESC) to provide concession and catering services for the Ice Center. The City will receive 15% of gross concession receipts throughout the term of the new contract. This agreement was renewed in March 2016 and is effective through June 30, 2019. For the year ended June 30, 2016, the City received $10,917 in concession commissions from ESC. Note 6. Insurance The Facility has insurance coverage for general liability, auto, crime and workers’ compensation. The general liability insurance has a $100,000 retention level per occurrence for all claims with the maximum amount of coverage being $20,000,000. Workers compensation insurance has a $250,000 retention level per occurrence with the combined maximum amount of coverage being $1,000,000. The auto liability insurance has a $-0- retention level per accident for all claims with the maximum amount of coverage being $1,000,000. The crime insurance has a $250,000 retention level with the maximum amount of coverage being $10,000,000. The Facility also has an umbrella policy which has a $25,000 retention level, which covers all claims up to a maximum amount of coverage of $25,000,000. All buildings are covered under the City’s insurance as the City owns all structures within the Facilities. - 20 - Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Consolidated Schedule of Operating Expenses For the Year Ended June 30, 2016 Utilities 1,203,229$ Salaries and wages 865,676 Management fees 413,724 Equipment rental 186,037 Employee benefits 191,071 General and administrative 215,179 Supplies 110,636 Hockey premium 142,087 Repairs and maintenance 22,464 Payroll taxes 62,646 Bank fees 70,664 Contract labor 19,325 Travel 35,663 Computer expenses 29,791 Dues and subscriptions 32,564 Training 30,848 Professional fees 33,925 Miscellaneous 65,831 Security 14,240 Telephone 15,569 Meals and entertainment 6,511 Bad debt expense 139,632 Office supplies 13,679 Marketing 31,728 Insurance 14,221 Licenses and permits 4,644 Postage 12,598 Uniforms 5,514 Depreciation 838 Other taxes and licenses 1,155 3,991,689$ - 23 - Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre Schedule of Findings Year Ended June 30, 2016 Summary of Audit Results 1. The auditors’ report expresses an unqualified opinion on the consolidated financial statements of Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre. 2. No instances of noncompliance material to the consolidated financial statements of Rabobank Arena, Theater, Convention Center, San Joaquin Community Hospital Ice Center of Bakersfield and Bright House Networks Amphitheatre were disclosed during the audit. Findings – Financial Statement Audit Significant Deficiencies Current Year Finding 1 As part of the audit, we noted that during the current year, the accounting department stopped receiving the reporting package for the daily entrance fees to the ice center. This report was used to reconcile this reporting package to the deposits made. Recommendation We recommend the accounting department revert back to receiving the reporting packages from the ice center and using the package to reconcile the deposits made by the ice center. Response Management agrees with the recommendation and has re-implemented receiving the reporting package for the daily entrance fees to the ice center. Current Year Finding 2 As part of the audit, we noted the following related to event contracts and settlements: - All invoices issued in June as part of rental agreements were created outside of JD Edwards and never entered into the general ledger until the invoice was paid by the lessee. - One promoter rebate was not entered into the general ledger as of June 30, 2016 even though the event occurred in October 2015. - 24 - Recommendation We recommend the system over facility rentals/event settlements be revised whereby all transactions are entered into the general ledger at the time of settlement to ensure that all invoices are created and all liabilities are paid. Response Management agrees with the recommendation and is re-implementing that all invoices be created in JD Edwards. Management is taking steps to ensure all settlements are properly paid out in accordance with the terms of the event license agreement. B A K E R S F I E L D Community Development Department Jacquelyn R. Kitchen, Community Development Director 1 MEMORANDUM February 22, 2017 TO: Alan Tandy, City Manager FROM: Jacquelyn R. Kitchen, Community Development Director SUBJECT: Non-Profit & For-Profit Applications for HUD FY 2017-18 Funding Background. As an Entitlement City under the U. S. Department of Housing and Urban Development (HUD), the City of Bakersfield receives annual entitlements in order to improve low-income neighborhoods in our City. Funds are distributed pursuant to the following programs: HUD Community Development Block Grant (CDBG), Home Investment Partnership (HOME) and Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). Available Funds. Last year (FY 16-17), the total HUD entitlement was $5,006,930 with an additional $7,000 in program income for CDBG and $30,000 for HOME. Thus, the total proposed budget for CDBG, HOME, ESG and HOPWA for FY 16-17 was $5,043,930. As of the preparation of this Memo, HUD has not yet released the entitlement amount for FY 17-18; therefore, Staff is using last year’s entitlement as our current projection. Applications Received. The deadline to submit CDBG, HOME, and ESG applications for Fiscal Year 17-18 funding was October 31, 2016. This year, the Community Development Department received 16 proposals for assistance from non-profit and for-profit organizations totaling $3,657,384, and 15 proposals from City departments totaling $4,793,657. The requested projects are intended to improve the quality of life and infrastructure for low- income neighborhoods. Recommendation. After reviewing the requests for funding, staff has prepared a proposed budget for Fiscal Year 17-18. A summary of the proposed budget for consideration by the Budget and Finance Committee and recommendation to the City Council, as well as memoranda summarizing the funding requests from nonprofits and City departments is attached. Staff anticipates that the FY 17-18 HUD Action Plan will be considered by the City Council on May 10, 2017. This is the third funding year of the Consolidated Plan 2015-2020. Attachments 1. Proposed CDBG Budget (FY 17/18) 2. Proposed HOME/ESG/HOPWA Budget (FY 17/18) 3. Memo – Overview of Applications Received S:\EDCD_Shared\ACTION PLANS\Action Plan 2017-18\2 2017-18 Funding Request Non Profit Memo.Docx Description FY 17/18 Requested FY 17/18 Recommended FY 16/17 Budget CDBG Entitlement (Projected for FY 17/18)3,253,214 3,253,214 3,253,214 Program Income (Projected for FY 17/18)7,000 7,000 7,000 Total Available Resources 3,260,214 3,260,214 3,260,214 Administration (not to exceed 20% or $652,042)652,042 652,042 652,042 Section 108 Loan Payment on $4.1M 273,864 273,864 273,864 Section 108 Loan Payment on $800K 50,636 50,636 50,636 Total Admin and Debt Payment 976,542 976,542 976,542 Total Resources minus Admin and Debt Payments 2,283,672 2,283,672 2,283,672 Fair Housing Program Services 100,000 100,000 100,000 Bakersfield Senior Center 85,000 85,000 85,000 Bakersfield Police Department 311,000 302,982 0 Mission Services Job Creation 25,000 0 25,000 CASA Expansion services 40,000 0 0 Alliance Against Family Violence 0 0 50,000 Total Public Service Projects 561,000 487,982 260,000 Home Access Rehabilitation 40,000 40,000 30,000 Union-Brundage Area Street Improvements - Ph. 4 678,251 612,251 520,580 Baker/Old Town Kern Reconstruct Curb/Gutter/Sidewalk 300,000 300,000 0 La France/El Toro Area Reconstruct 500,000 272,229 500,000 Oleander Area Reconstruct Curb/Gutter/Sidewalk 500,000 300,000 300,000 Wilson/Planz Rd Curb/Gutter/Sidewalk 300,000 0 0 E. California/Brundage Curb/Gutter/Sidewalk 500,000 0 0 East Terrace/Brundage Curb/Gutter/Sidewalk 300,000 0 0 Madison/Cottonwood Curb/Gutter/Sidewalk 300,000 0 0 Castro Area Curb/Gutter/Sidewalk (FY 16/17)0 0 300,000 P Street Area Curb/Gutter/Sidewalk (FY 16/17)0 0 142,010 Stiern Park Playground ADA Improvements/Shade 189,210 139,210 52,042 Beale Park Playground ADA Restroom Bldg/Shade 416,500 0 0 Wilson Park Shade Structure & ADA 0 0 52,020 Lowell Park ADA Improvements/Shade Structure 132,000 132,000 0 Beale Park Shade Structure 118,000 0 52,020 McMurtrey Shade Structure 77,990 0 0 Jastro Park Shade Structure & ADA 170,706 0 0 MLK Park Lighting Improvements Ph-2 0 0 75,000 Bakersfield Senior Center Gates 15,100 0 0 Habitat For Humanity Front Porch Program 25,000 RDA 0 Saguaro Investors - 9,214 sq ft Commercial/1301 1,000,000 0 0 Mexican American Opportunity Foundation - Vida Scott 218,284 0 0 Community Action Partnership-Security Gates/Cameras 61,500 0 0 Total Public Facilities 5,842,541 1,795,690 2,023,672 Total Requests for Public Services + Projects 6,403,541 2,283,672 2,283,672 Total Available Resources Remaining -$4,119,869 $0 $0 Note: RDA (Redevelopment Agency Successor) Funds are not part of the HUD Entitlement PROPOSED CDBG BUDGET FY 2017-18 RESOURCES ADMINISTRATION AND DEBT SERVICE PUBLIC SERVICES (MAX. 15% or $487,982) PROJECTS PROPOSED HOME BUDGET FY 2017-18 HOME Entitlement (Projected for FY 17/18)1,087,081$ 1,087,081$ 1,081,282$ Program Income (Projected for FY 17/18)30,000$ 30,000$ 30,000$ Total Available Resources 1,117,081$ 1,117,081$ 1,111,282$ Administration (not to exceed 10%)111,708$ 111,708$ 111,128$ Total Resources minus Admin 1,005,373$ 1,005,373$ 1,000,154$ CHDO Set Aside (15%)-$ 167,562$ 166,692$ New Construction/Rehabilitation/Homebuyer Assistance -$ 837,811$ 833,462$ Habitat for Humanity - New Home Build Project 55,000$ RDA -$ A. Phillip Randolph Corp. - Affordable Housing Project 275,000$ -$ -$ Tegeler Hotel SRO Associates, LP - Rehab of Tegeler SFR 1,500,000$ -$ -$ Total (All Requests)1,830,000$ 1,005,373$ 1,000,154$ Total Available Resources Remaining (824,627)$ -$ -$ PROPOSED ESG BUDGET FY 2017-18 ESG Entitlement (Projected for FY 17/18)287,896$ 287,896$ 287,896$ Administration (not to exceed 7.5%)21,592$ 21,592$ 21,592$ Total Resources minus Admin 266,304$ 266,304$ 266,304$ Flood Ministries - Street Outreach 22,500$ 25,000$ 22,456$ Bakersfield Homeless Center - Shelter 120,000$ 61,334$ 63,912$ Bakersfield Homeless Center - Rapid Rehousing 95,000$ 93,568$ 93,568$ The Mission at Kern County - Shelter 88,000$ 61,402$ 63,912$ Alliance Against Family Violence - Shelter 32,000$ 25,000$ 22,456$ Total (All Requests)357,500$ 266,304$ 266,304$ Total Available Resources Remaining (91,196)$ -$ -$ PROPOSED HOPWA BUDGET FY 2017-18 HOPWA Entitlement (Projected for FY 17/18)384,538$ 384,538$ 384,538$ Administration (not to exceed 3%)11,536$ 11,536$ 11,536$ Total Resources minus Admin 373,002$ 373,002$ 373,002$ Kern County Public Health 373,002$ 373,002$ 373,002$ Total (All Requests)373,002$ 373,002$ 373,002$ Total Available Resources Remaining -$ -$ -$ PROJECTS Description FY 17/18 Requested FY 17/18 Recommended FY 16/17 Budget RESOURCES ADMINISTRATION AND DEBT SERVICE Description FY 17/18 Requested FY 17/18 Recommended FY 16/17 Budget RESOURCES Note: RDA (Redevelopment Agency Successor) Funds are not part of the HUD Entitlement Updated: 02/22/2017 RESOURCES ADMINISTRATION AND DEBT SERVICE HOPWA SPONSOR/PROVIDER ADMINISTRATION PROJECTS Description FY 17/18 Requested FY 17/18 Recommended FY 16/17 Budget 1 | Page C:\Users\Jkitchen\Appdata\Local\Microsoft\Windows\Inetcache\Content.O utlook\Z9WG2PF8\CDBG_HOME_ESG_2017-18 Funding Request (002).Docx Community Development Department M E M O R A N D U M February 22, 2017 TO: Jacquelyn R. Kitchen, Community Development Director FROM: Hayward Cox, Community Development Coordinator SUBJECT: Non-Profit & For-Profit Applications for HUD FY 2017-18 Funding The deadline for the submission of CDBG, HOME, and ESG applications for FY 2017-18 funding was October 31, 2016. This year 16 applications were submitted from non-profit and private entities totaling $3,657, 284, and 15 applications from Public Works and Recreation and Parks totaling $4,793,657. Below are summaries and staff’s comments of the applications received from applicants requesting assistance from the various HUD programs for FY 2017-18. 1 of 4 HUD Category Applicant Ward Proposal Total Cost FY 17/18 Request HUD Eligbile Staff Rating CD Recommendation & Notes Proposed Budget? HOME Rehabilitation Construction Tegeler Hotel SRO Associates, LLP 2 Rehabilitation of Tegeler Hotel (11 of the 50 Units) $4,050,000 $1,500,000 Yes 24/30 Requires multiple years of HOME funds & low income tax credits; which are contingent on HOME funding. No recent funding. Potential Future HOME Affordable Housing Habitat for Humanity 1 Acquire residential property & construct 1 single family residence at 221 Rodman St $130,000 $55,000 Yes 28/30 Not Recommended. Located within R/ECAP Asking HUD for exception to enable funding. RDA Funds HOME/CHDO Affordable Housing A. Phillip Randolf Com. Dev. Corp 1 Aquire rsideitnail property and construct new single family housing $275,000 $275,000 Yes N/A Incomplete applciation and project is located within R/ECAP; Applicant does not qualify as CHDO. N $1,830,000 ESG - Operations Bethany Services, BHC City- Wide Operational Costs Homeless Center at 1600 E. Truxtun Ave. $2.6 mil $120,000 Yes 28/30 Recommended for funding. Received FY 16/17 funding $61,334. Y Partial ESG - Program Services Bethany Services, BHC City- Wide Rapid Re-Housing of individuals and families recently being displaced from housing $2.6 mil $95,000 Yes 30/30 Recommended for funding. Received FY 16/17 funding of $93,568. Y Partial ESG - Operations Alliance Against Family Violence City- Wide Operating cost at Women's Shelter: utilities, insurance, maintenance and wages for counselor 1921 19th St $293,326 $32,000 Yes 28/30 Recommended for funding. Received FY 16/17 funding $25,000. Y Partial ESG - Operations The Mission at Kern County City- Wide Operational costs Bakersfield Rescue Mission: maintenance, utilities, personnel 816, 810/812, 800 & 724 E. 21st St $2.1 mil $88,000 Yes 28/30 Recommended for Funding. Received FY 16/17 funding of $61,402. Y Partial ESG - Street Outreach Flood Bakersfield Ministries City- Wide Expansion of street outreach/engagement program $425,836 $22,500 Yes 28/30 Recommended for funding. Received FY 16/17 funding of $25,000. Y CDBG Kern County Public Health City- Wide Assistance and services to prevent homelessness and provide housing stability to low and moderae income persons living with HIV/AIDS $373,002 $373,002 Yes Recommended for funding. City/Kern Public Health Dept Agreement for $373,002 approved by City Council for FY 2016/17. Y | (HOME FY 16/17: $1,111,282)Total HOME Request: Total ESG Request: $357,500 | (ESG FY 16/17: $287,896) Anticipated FY 17/18 HOPWA funding: $384,000 FY 2017/18 - HOME Applications Emergency Solutions Grant Applications - FY 2017-18 HOPWA Grant - FY 2016-19 2 of 4 HUD Category Applicant Ward Proposal Total Cost FY 17/18 Request HUD Eligbile Staff Rating CD Recommendation & Notes Proposed Budget? CDBG - PUBLIC SERVICES Bakersfield Senior Center 1 On-going Operations and maintenance for the Center $85,000 $85,000 Yes 26/30 Received FY 16/17 funding of $85,000 for operations and maintenance in support of low income senior citizens. Y CDBG - PUBLIC SERVICES Mission Community Services City- Wide Small Business Training Courses $82,000 $25,000 Yes 26/30 Received FY 16/17 funding of $25,000 N CDBG - PUBLIC SERVICES Bakersfield Police Department 1 & 2 Fund 3 FTE Police Offficer Positions for low income areas $311,000 $311,000 Yes 26/30 Stringent HUD guidelines on reporting officers' hours in the project area. Y Partial CDBG - PUBLIC SERVICES CASA City- Wide Court appointed Special Advocates - hire additional staff to increase program. $101,800 $40,000 Yes 12/12 This request expands an already existing program by adding one additional FTE staff to service needs of children in court system. N CDBG Habitat for Humanity Repair, Rehabilitation, Beautification 1 Housing rehabilitation using homeowner and volunteer sweat- equity to improve, rehabilitate, and beautify substandard homes along Rodman St. $75,000 $25,000 Yes 28/30 Part of the plan to revitalize a community in the PAL Center vicinity, block by block. Part 2 involves a grant of HOME funds to purchase a vacant lot and construct affordable housing. No CDBG: use RDA funds. CDBG - Public Facilities Rehabilitation Bakersfield Senior Center 1 Installation of New Automated Gate for Center at 534 4th Street $15,100 $25,000 Yes 26/30 Received FY 16/17 funding of $85,000 to install new freezer. No, unless additional CDBG funds available. CDBG Saguaro Investors Economic Development 1 Build a 9,214-sf Community Commercial & Services Center at 1301 California Ave $ 1,500,000 $1,000,000 Yes Not Rated Not recommended for funding. Incomplete application (no Business Plan); no clear national objective; *Applicant proposes to provide $500,000 of project costs. N CDBG - Public Facilities Rehabilitation CAPK 1 Rehabilitate landscape and install security gates, lighting and cameras. $61,500 $61,500 Yes 27/30 Received FY 15/16 funding of $132,000 for rooftop solar installation. N CDBG - Public Facilities Rehabilitation Mexican American Opportunity Foundation 1 Rehabilitation of Vida Scott Center (1101 E Belle Terrace) for provision of services $218,284 $218,284 Yes Not Rated Not recommended for funding. Incomplete application N FY 2017-18 CDBG Applications (NON-PROFITS + BPD) Total Eligible Non-Profit CDBG Request $1,790,784 | (Total FY 16/17 Allocation: $373,002 - Public Services) 3 of 4 HUD Category Applicant Ward Proposal Total Cost FY 17/18 Request HUD Eligbile Staff Rating CD Recommendation & Notes Proposed Budget? CDBG - Curb/Gutter Street Improvements La France Area: S. H Street to El Toro, btwn Belle Terrace and Ming Ave. 1 Install sidewalk, curb/gutter, handicap ramps and cross gutters where needed to improve drainage prior to resurfacing/reconstruction. $500,000 N/A No Not Rated Project area (49% low/mod) does not meet the 51% min. low/mod area benefit requirement. N CDBG - Curb/Gutter Street Improvements Old Town Kern Area: 2 Install sidewalk, curb/gutter, handicap ramps and cross gutters where needed to improve drainage prior to resurfacing/ reconstruction. $300,000 N/A Yes 25/30 Late submission.y CDBG - Curb/Gutter Street Improvements Union Ave & Brundage Area: Phases 1B & 5 1 Install sidewalks, curb & gutter, hadicap ramps, and cross gutters at locations identified in master plan $678,251 N/A Yes 25/30 Continuation from FY 16/17 funded phases 6 & 7 of master project at $520,580. Staff recommends #1 rating. Y CDBG - Curb/Gutter Street Improvements Oleander Area: Calif Ave to Verde St. btwn Chester Ave & A Street 2 Install sidewalk, curb/gutter, handicap ramps and cross gutters where needed to improve drainage prior to resurfacing/ reconstruction. $500,000 N/A Yes 23/30 Staff recommends #3 rating Y Partial CDBG - Curb/Gutter Street Improvements Wilson Area: S. H Street to S. Chester Ave btwn Wilson & Planz Roads 1 Install sidewalk, curb/gutter, handicap ramps and cross gutters where needed to improve drainage prior to resurfacing/ reconstruction. $300,000 N/A Yes 23/30 Staff Recommends #4 rating.N CDBG - Curb/Gutter Street Improvements E. Calif Area: E. Calif to Brundage from Union Ave to Collins. 1 Install sidewalk, curb/gutter, handicap ramps and cross gutters where needed to improve drainage prior to resurfacing/ reconstruction. $500,000 N/A Yes 25/30 Staff recommends #2 rating.N CDBG - Curb/Gutter Street Improvements East Terrace Way Area: Union Ave to Madison btwn Brundage & Terrace Way 1 Install sidewalk, curb/gutter, handicap ramps and cross gutters where needed to improve drainage prior to resurfacing/ reconstruction. $300,000 N/A Yes 23/30 Staff recommends #5 rating.N CDBG - Curb/Gutter Street Improvements Madison Area: Madison St to Cottonwood btwn Casa Loma & Brook 1 Install sidewalk, curb/gutter, handicap ramps and cross gutters where needed to improve drainage prior to resurfacing/ reconstruction. $300,000 N/A Yes 23/30 Staff recommends #6 rating N CDBG Applications - FY 2017-18 (PUBLIC WORKS DEPARTMENT) Total Eligible CDBG PW CIP Request $3,378,251 | (FY16/17 CDBG Allocation $1,462,590) 4 of 4 HUD Category Applicant Ward Proposal Total Cost FY 17/18 Request HUD Eligbile Staff Rating CD Recommendation & Notes Proposed Budget? CDBG Stiern Park Playground Safety Surfacing and ADA Improvements 7 Add safety surfacing to playground; make ADA improvements throughout the park. $189,210 n/a Yes 23/27 Received FY 16/17 funding of $52,042 for playground shade structures. Y CDBG - Restroom Rehab Beale Park Restroom Rehab 500 Oleander Stret 2 Replace restroom building with a facility that meets current guidelines including ADA, of newly renovated within the City. $416,500 N/A Yes 23/27 Received FY 16/17 funding of $52,020 for playground shade structures. N. Use of other funding source suggested. CDBG - Rehab and improvements Lowell Park Picnic Area Rehab and ADA improvements 1 Install of a new concrete pad, new picnic benches and new shad structure over the picnic area. Also includes making appropriate ADA improvements. $132,000 N/A Yes 25/278 Y CDBG - Shade Structure Beale Park Shade Structures 500 Oleander Street 2 Provision and install of the shade structures over the existing picnic area $118,000 N/A Yes 23/27 Received FY 16/17 funding of $52,020 for playground shade structures. N CDBG - Shade Structure Rehab McMurtrey Aquatic Center Pool Area Shade Structures Rehab 1325 Q Street 2 Install of three new shade structures and replacement of existing shade structure fabrics. $77,990 N/A Yes 23/27 Replacement of damaged shade structure fabric is eligible CDBG cost. N CDBG - Shade Structure and improvements Jastro Park Picnic Shade Structure and ADA improvements 2900 Truxtun Ave. 2 Provision and install of the shade structures over the existing picnic area and make ADA improvements. $170,706 N/A No Not Rated Area 49.74% low/mod. Not elibible for funding under area benefit. N Total Eligible CDBG R/P Request $934,500 | (FY 16/17 CDBG R/P Allocation: $231,082) CDBG Applications FY 2017/18 - Recreation & Parks All meetings will be held at City Hall North, First Floor, Conference Room A Adopted: DRAFT Budget & Finance City Council Meetings Committee Meetings 3:30 Closed Session, 5:15 p.m. Public Session 12:00 p.m.Budget Hearing 06/07, Budget Adoption 06/28 Budget Departmental WorkshopsHolidays - City Hall Closed 12:00 p.m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eague of California Cities Annual Conference - September 13 - 15, 2017 League of California Cities Mayors and Council Members Executive Forum - June 28 - 30, 2017 JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER APRIL MAY JUNE Budget & Finance Committee Calendar January 2017 Through December 2017 JANUARY FEBRUARY MARCH Documents Presented At Budget and Finance Committee March 2, 2017 Meeting Ma r c h  2,  20 1 7 20 1 7 ‐18 Bu d g e t an d Fi n a n c e Co m m i t t e e Fi v e ‐Ye a r  Co n s o l i d a t e d  Pl a n  (2 0 1 5 ‐2020)  Ci t y  re q u i r e d  to  ad o p t  a “C o n  Pl a n ”  to  re c e i v e  fe d e r a l  HU D  funds:  CD B G  – C o m m u n i t y  De v e l o p m e n t  Bl o c k  Gr a n t  HO M E  – H O M E  In v e s t m e n t  Pa r t n e r s h i p  Pr o g r a m  ES G  – E m e r g e n c y  So l u t i o n s  Gr a n t  HO P W A  – H o u s i n g  Op p o r t u n i t i e s  fo r  Pe r s o n s  wi t h  HI V / A I D S  Pl a n  re v i e w s  co m m u n i t y  ne e d s  an d  se t s  pr i o r i t i e s  fo r  fu t u r e  funds:  De c e n t  an d  Af f o r d a b l e  Ho u s i n g  In v e s t  in  Ec o n o m i c  & Co m m u n i t y  De v e l o p m e n t  Pr o v i d e  In f r a s t r u c t u r e  im p r o v e m e n t s  in  lo w / m o d  in c o m e  areas  Pr o v i d e  Pu b l i c  Se r v i c e s  & Fa c i l i t i e s  Ne w  pl a n  ev e r y  5 Ye a r s ;  Cu r r e n t  Pl a n  Ap p r o v e d  by  Co u n c i l  in 2014 1 Im p l e m e n t a t i o n :  An n u a l  Ac t i o n  Plan  An n u a l  Ac t i o n  Pl a n  to  Im p l e m e n t  th e  Fi v e ‐Ye a r  Co n s o l i d a t e d  Plan  Cu r r e n t l y  in  3rd ye a r  (F Y 2 0 1 7 / 1 8 )  Ac t i o n s    Es t i m a t e d  FY  17 / 1 8  HU D  Al l o c a t i o n :  CD B G : $ 3 , 2 5 3 , 2 1 4  HO M E : $ 1 , 0 8 1 , 2 8 2  ES G : $ 2 8 7 , 8 9 6  HO P W A :                  $3 8 4 , 5 3 8  TO T A L : $ 5 , 0 0 6 , 9 3 0   (s a m e  as  FY  16 / 1 7 )  Mi l e s t o n e  Da t e s :  10 / 3 1 / 1 6 : A p p l i c a t i o n  De a d l i n e  (3 1  ap p l i c a t i o n s ;  $8 , 4 5 1 , 0 4 1  requested)  03 / 0 8 / 1 7 :   Bu d g e t  & Fi n a n c e  Co m m i t t e e    04 / 0 7 / 1 7 :   La s t  da y  to  ci r c u l a t e  Dr a f t  Ac t i o n  Pl a n  (3 0 ‐da y  Mi n i m u m )  05 / 1 0 / 1 7 :   Dr a f t  Ac t i o n  Pl a n  to  Ci t y  Co u n c i l  05 / 1 5 / 1 7 :   De a d l i n e  to  su b m i t  Fi n a l  Ac t i o n  Pl a n  to  HU D 2 3CD B G :  Av a i l a b l e  Re s o u r c e s RE S O U R C E S Pr o j e c t e d F Y 1 7 ‐ 1 8 C D B G E n t i t l e m e n t $ 3 , 2 5 3 , 2 1 4 Pr o j e c t e d P r o g r a m I n c o m e $ 7 , 0 0 0 To t a l Av a i l a b l e Re s o u r c e s $ 3,260,214 AD M I N I S T R A T I O N AN D DE B T SE R V I C E Ad m i n i s t r a t i o n ( n o t t o e x c ee d 2 0 % o r $ 6 5 2 , 0 4 2 ) $ 652,042 Se c t i o n 1 0 8 L o a n P a y m e n t o n $ 4 . 1 M $ 2 7 3 , 8 6 4 Se c t i o n 1 0 8 L o a n P a y m e n t o n $ 8 0 0 K $ 5 0 , 6 3 6 To t a l Ad m i n an d De b t Pa y m e n t $ 976,542 To t a l Re s o u r c e s mi n u s Ad m i n an d De b t Pa y m e n t s $ 2,283,672 • Ad m i n ( 2 0 % ) : M a n a g e m e n t , O v e r s i g h t , C o o r d i n a t i o n $ 6 5 2 , 0 4 2 • Fa i r H o u s i n g P r o g r a m S e r v i c e s ‐ $ 1 0 0 , 0 0 0 • Se c t i o n 1 0 8 L o a n P a y m e n t s : o Aq u a t i c I m p r o v e m e n t s ‐ $ 2 7 3 , 8 6 4 o So u t h e a s t S t r e e t I m p r o v e m e n t s ‐ $ 5 0 , 6 3 6 • Ho m e A c c e s s G r a n t P r o g r a m ‐ $ 4 0 , 0 0 0 6CD B G :  Fi x e d  Al l o c a t i o n s Ex a m p l e : H o m e A c c e s s R a m p Mc M u r t r e y A q u a t i c C e n t e r 4CD B G :  Pr o p o s e d  Pr o j e c t s To t a l Re s o u r c e s mi n u s Ad m i n an d De b t Pa y m e n t s $ 2,283,672 PU B L I C SE R V I C E S (M A X . 15 % or $4 8 7 , 9 8 2 ) Fa i r H o u s i n g P r o g r a m S e r v i c e s $ 1 0 0 , 0 0 0 Ba k e r s f i e l d S e n i o r C e n t e r $ 85,000 Ba k e r s f i e l d P o l i c e D e p a r t m e n t $ 3 0 2 , 9 8 2 To t a l Pu b l i c Se r v i c e Pr o j e c t s $ 487,982 PR O J E C T S Ho m e A c c e s s R e h a b i l i t a t i o n $ 40,000 Un i o n ‐ B r u n d a g e A r e a D r a i n a g e I m p r o v e m e n t s ‐ P h . 4 $ 612,251 Ba k e r S t / O l d T o w n K e r n , G u t t e r , S i d e w a l k a n d R e c o n . $ 300,000 La F r a n c e / E l T o r o A r e a C u r b , G u t t e r , S i d e w a l k R e c o n $ 2 7 2 , 2 2 9 Ol e a n d e r A r e a C u r b , G u t t e r , S i d e w a l k R e c o n . S 300,000 St i e r n P a r k P l a y g r o u n d S h a d e S t r u c t u r e $ 1 3 9 , 2 10 Lo w e l l P a r k A D A I m p r o v e m e n t s / S h a d e S t r u c t u r e $ 132,000 To t a l Pu b l i c F a c i l i t i e s Pr o j e c t s $ 1,795,690 To t a l CD B G P r o p o s e d $ 2,283,672 5CD B G :  Ap p l i c a t i o n s  No t  Pr o p o s e d  fo r  Funding Ap p l i c a n t Su m m a r y Amount Ba k e r s f i e l d S e n i o r C e n t e r G a t e s R e p l a c e m e n t $ 1 5 , 1 0 0 Ha b i t a t f o r H u m a n i t y F r o n t P o r c h P r o g r a m $ 2 5 , 0 0 0 Me x i c a n A m e r i c a n O p p o r t u n i t y F o u n d a t i o n V i d a S c o t t C e n t e r R e h a b i li t a t i o n $ 2 1 8 , 2 8 4 Co m m u n i t y A c t i o n P a r t n e r s h i p s o f K er n C o S e c u r i t y G a t e s / C a m e r a s $ 6 1,500 Sa g u a r o I n v e s t o r s C o m m e r c i a l C o n s t r u c t i o n $ 1 , 0 0 0 , 0 0 0 Pu b l i c W o r k s E . C a l i f o r n i a C u r b/ G u t t e r / S i d e w a l k $ 5 0 0 , 0 0 0 Pu b l i c W o r k s E . T e r r a c e C u r b/ G u t t e r / S i d e w a l k $ 3 0 0 , 0 0 0 Pu b l i c W o r k s M a d i s o n / C o t t o n w o o d C u r b / G u t t e r / S i d e w a l k $ 3 0 0 , 0 0 0 Pu b l i c W o r k s W i l s o n / P l a n z R d C ur b , G u t t e r / S i d e w a l k $ 3 0 0 , 0 0 0 Re c r e a t i o n a n d P a r k s B e a l e P a r k AD A R e s t r o o m B u i l d i n g $ 4 1 6 , 5 0 0 Re c r e a t i o n a n d P a r k s B e a l e P a r k S h a d e S t r u c t u r e $ 1 1 8 , 0 0 0 Re c r e a t i o n a n d P a r k s M c M u r t r e y P a r k S h a d e S t r u c t u r e $ 7 7 , 9 9 0 Re c r e a t i o n a n d P a r k s J a s t r o P a r k S h a d e S t r u c t u r e $ 1 7 0 , 7 0 6 Mi s s i o n C o m m u n i t y S e r v i c e s S m a l l B u s i n e s s C l a s s e s / J o b C r e a t i o n $ 25,000 CA S A ( C o u r t A p p o i n t e d S p e c i a l A d v o c a t e ) A d d i t i o n a l S t a f f t o I n c r e a se S e r v i c e $ 4 0 , 0 0 0 TOTAL$ 3,568,080 Ba k e r s f i e l d S e n i o r C e n t e r ( W a r d 1 ) Pu b l i c S e r v i c e s ‐ $ 8 5 , 0 0 0 CD B G :  Pr o j e c t  De t a i l 7 b CD B G :  Pr o j e c t  De t a i l 8Ba k e r s f i e l d P o l i c e D e p a r t m e n t Im p a c t T e a m O f f i c e r s ( W a r d 2 ) Pu b l i c S e r v i c e s - $ 3 0 2 , 9 8 2 Se r v i c e A r e a Cu r b , G u t t e r , S i d e w a l k a n d S t r e e t R e c o n s t r u c t i o n P r o j e c t s CD B G : P r o j e c t D e t a i l Im p r o p e r D r a i n a g e No S i d e w a l k 9 Un i o n / B r u n d a g e La F r a n c e / E l T o r o Ol e a n d e r A r e a La F r a n c e / E l T o r o La F r a n c e / E l T o r o Un i o n / B r u n d a g e A r e a ( P h a s e 4 ) : $ 6 1 2 , 2 5 1 ( W a r d 1 ) CD B G : P r o j e c t D e t a i l 10 Ba k e r S t r e e t / O l d T o w n K e r n A r e a ‐ $ 3 0 0 , 0 0 0 ( W a r d 2 ) CD B G : P r o j e c t D e t a i l 11 La F r a n c e / E l T o r o A r e a ‐ $ 2 7 2 , 2 2 9 ( W a r d 1 ) CD B G : P r o j e c t D e t a i l 12 Ol e a n d e r A r e a ‐ $ 3 0 0 , 0 0 0 ( W a r d 2 ) CD B G : P r o j e c t D e t a i l 13 Pl a y g r o u n d S h a d e S t r u c t u r e s CD B G : P r o j e c t D e t a i l 14 Ex a m p l e : J e f f e r s o n P a r k St i e r n P a r k A D A I m p r o v e m e n t s / S h a d e S t r u c t u r e ‐ $ 1 3 9 , 2 1 0 Wa r d 2 CD B G : P r o j e c t D e t a i l 15 CD B G :  Pr o j e c t  De t a i l 16 Lo w e l l P a r k A D A I m p r o v e m e n t s / S h a d e S t r u c t u r e - $ 1 3 2 , 0 0 0 HO M E  In v e s t m e n t  Pa r t n e r s h i p  Pr o g r a m 17 RE S O U R C E S Pr o j e c t e d F Y 1 7 / 1 8 C D B G E n t i t l e m e n t $ 1 , 0 8 7 , 0 8 1 Pr o j e c t e d P r o g r a m I n c o m e $ 3 0 , 0 0 0 To t a l A v a i l a b l e R e s o u r c e s $ 1 , 1 1 7 , 0 8 1 AD M I N I S T R A T I O N Ad m i n i s t r a t i o n ( 1 0 % m a x i m u m ) $ 1 1 1 , 7 0 8 PR O J E C T S CH D O S e t A s i d e ( 1 5 % m i n i m u m ) $ 1 6 7 , 5 6 2 Ne w C o n s t r u c t i o n A s s i s t a n c e $ 8 3 7 , 8 1 1 Pr o j e c t s S u b ‐ T o t a l $ 1 , 0 0 5 , 3 7 3 Pr o p o s e d T o t a l $ 1 , 1 1 7 , 0 8 1 Mi l l C r e e k C o u r t y a r d – 6 2 u n i t s Em e r g e n c y  So l u t i o n s  Gr a n t  (E S G ) 18 RE S O U R C E S Pr o j e c t e d  FY 1 7 ‐18  ES G  En t i t l e m e n t $                        287,896  AD M I N I S T R A T I O N Ad m i n i s t r a t i o n  (7 . 5 %  ma x i m u m ) $                            21,592  SH E L T E R  & OU T R E A C H  PR O J E C T S  (M A X .  $1 7 2 , 7 3 7 ) Fl o o d  Mi n i s t r i e s  ‐ St r e e t  Ou t r e a c h $                            25,000 Ba k e r s f i e l d  Ho m e l e s s  Ce n t e r  ‐ Sh e l t e r $                            61,334 Ba k e r s f i e l d  Re s c u e  Mi s s i o n  ‐ Sh e l t e r $                            61,402  Al l i a n c e  Ag a i n s t  Fa m i l y  Vi o l e n c e  ‐ Sh e l t e r $                            25,000 HO M E L E S S  PR E V E N T I O N  & RE H O U S I N G  PR O J E C T S Ba k e r s f i e l d  Ho m e l e s s  Ce n t e r  –R e ‐Ho u s i n g $                            93,568  Pr o j e c t s  Su b ‐To t a l  $                             266,304 Pr o p o s e d  to t a l $                              287,896  Em e r g e n c y  So l u t i o n s  Gr a n t 19 Ho u s i n g   Op p o r t u n i t i e s   fo r  Pe r s o n s  wi t h  AIDS  (H O P W A ) 20 RE S O U R C E S FY 1 7 ‐ 1 8 C D B G E n t i t l e m e n t $ 384,538 AD M I N I S T R A T I O N Ad m i n i s t r a t i o n ( 3 % ) $ 1 1 , 5 3 6 To t a l R e s o u r c e s m i n u s A d m i n $ 3 7 3 , 0 0 2 HO P W A SP O N S O R / P R O V I D E R Ke r n C o u n t y P u b l i c H e a l t h * $ 3 7 3 , 0 0 2 Pr o p o s e d To t a l $ 384,538 * F u n d s T e n a n t - B a s e d R e n t a l A s s i s t a n ce , C a s e M a n a g e m e n t , a n d E m e r g e n c y Re n t a l A s s i s t a n c e f o r p e r s o n s w i t h H I V / A I D S CO M M U N I T Y  DE V E L O P M E N T  RE S O U R C E S 21 Pr o p o s e d  Fu n d i n g   FY  17 ‐18 To t a l  Fu n d i n g   FY  16 ‐17 CD B G $ 3 , 2 5 3 , 2 1 4 $ 3 , 2 5 3 , 2 1 4 HO M E $ 1 , 0 8 7 , 0 8 1 *   $ 1 , 0 8 1 , 2 8 2 *   ES G $ 2 8 7 , 8 9 6   $ 2 8 7 , 8 9 6 HO P W A $  38 4 , 5 3 8   $ 3 8 4 , 5 3 8 To t a l  Re s o u r c e s $ 5 , 0 1 2 , 7 2 9 * $ 5 , 0 0 6 , 9 3 0 * *R e f l e c t s  mi n o r  in c r e a s e  ($ 5 , 7 9 9 )  in a c t u a l  HO M E  fu n d s  al l o c a t e d  by  HU D  in  FY  16 ‐17  vs. amount  pr o j e c t e d   by  Ci t y  St a f f  ba s e d  on  FY  15 / 1 6  al l o c a t i o n . 21 24 Ma r c h  2,  20 1 7 20 1 7 ‐18 Bu d g e t an d Fi n a n c e Co m m i t t e e