HomeMy WebLinkAbout04/27/2017
B A K E R S F I E L D
Staff: Committee members:
Chris Huot, Assistant City Manager Andrae Gonzales, Chair
Willie Rivera
Ken Weir
SPECIAL MEETING OF THE
BUDGET AND FINANCE COMMITTEE
of the City Council - City of Bakersfield
Thursday, April 27, 2017
12:00 p.m.
City Hall North
1600 Truxtun Avenue, Bakersfield, CA 93301
First Floor, Conference Room A
AGENDA
1. ROLL CALL
2. ADOPT MARCH 2, 2017 AGENDA SUMMARY REPORT
3. PUBLIC STATEMENTS
4. NEW BUSINESS
A. Discussion and Committee Recommendation Regarding Auditor Selection
Process – Smith
5. COMMITTEE COMMENTS
6. ADJOURNMENT
B A K E R S F I E L D
Committee Members
Staff: Chris Huot Councilmember, Andrae Gonzales, Chair
Assistant City Manager Councilmember, Willie Rivera
Councilmember, Ken Weir
SPECIAL MEETING OF THE
BUDGET AND FINANCE COMMITTEE
Thursday, March 2, 2017
12:00 p.m.
City Hall North – Conference Room A
1600 Truxtun Avenue, Bakersfield, CA 93301
The meeting was called to order at 12:30 p.m.
1. ROLL CALL
Committee members Present:
Councilmember, Andrae Gonzales, Chair
Councilmember, Willie Riviera
Councilmember, Ken Weir
City Staff Present:
Alan Tandy, City Manager
Chris Huot and Steven Teglia, Assistant City Managers
Caleb Blaschke, Management Assistant – City Manager’s Office
Virginia Gennaro, City Attorney
Joshua Rudnick, Deputy City Attorney
Nelson Smith, Finance Director
Randy McKeegan, Finance Supervisor
Jacqui Kitchen, Community Development Director
Misty Eaton, Community Development Business Manager
Hayward Cox, Community Development Coordinator
Nina Carter, Community Development Associate Planner
Cecilia Griego, Community Development Associate Planner
Jason Cater, Community Development Associate Planner
Lyle Martin, Bakersfield Chief of Police
Evan Demestihas, Bakersfield Assistant Chief of Police
Bryan Clayton, Bakersfield Police Captain
Dianne Hoover, Recreation and Parks Director
Nick Fidler, Public Works Director
Sean Cacal, Public Works General Services Superintendent
Mike Conner, Public Works Streets Superintendent
Steve Eckerson, Rabobank Arena General Manager
Additional Attendees Present:
Eric Xin, Brown Armstrong
/s/ Chris Huot
____________________________________________
Budget and Finance Committee Meeting
Agenda Summary Report - March 2, 2017
Page 2
2. ADOPT MARCH 17, 2016 AGENDA SUMMARY REPORT
The Report was adopted as submitted.
3. PUBLIC STATEMENTS
There were no verbal public statements. A written statement from Marvin Dean was received
and filed.
4. NEW BUSINESS
A. Discussion and Committee Recommendation Regarding Annual Audit Reports
ending FY 2016 – Smith
Finance Director Smith provided a summarization of the audit reports included in the
packet, noting that there were no findings and recommendations for the year.
Committee Chair Rivera made a motion to have the annual audit reports presented to
the full City Council for acceptance. The motion was unanimously approved.
B. Discussion and Committee Recommendation Regarding FY 2017-18 CDBG,
HOME, ESG Action Plan – Tandy/Kitchen
Community Development Director Kitchen summarized the third-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 FY17-18 were not available
at the time of the meeting; therefore staff based the proposed budget on the previous
year’s entitlements of $5,043,930.
FY 2017-18 Proposed CDBG Budget:
Based on the previous year’s entitlement, the total resources available for FY 2017-18 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: $487,982. Services include Fair Housing Program Services, the
Bakersfield Senior Center, and the Bakersfield Police Department.
Low-Mod Benefit: $21,795,690. Services include Home Access Grant Program;
Drainage Improvements in the Union Brundage Area – Phase 4; Curb, Gutter,
Sidewalk, and Reconstruction of several areas including: Baker Street/Old Town
Kern, La France/ El Toro Area, Oleander Area; replacement of the Playground
Shade Structures at Stiern Park; and the installation of Shade Structures and Lowell
Park.
FY 2017-18 Home Investment Partnership (HOME) Budget:
Based on the previous year’s entitlement, the total resources available for FY 2017-18 is
$1,117,081, 10% of which was set aside for administrative costs. This amount includes the
HOME Entitlement of $1,087,081 and $30,000 of projected program income.
____________________________________________
Budget and Finance Committee Meeting
Agenda Summary Report - March 2, 2017
Page 3
Staff estimates that the total Program/Project Costs and Direct Delivery for FY 2017-18 is
$1,005,373. This Program/Project cost includes $1,167,562 in HUD mandated Community
House Development Organization (CHDO) sponsored projects, and $837,811 for New
Construction.
FY 2017-18 Emergency Solutions Grant (ESG) Budget:
Based on the previous year’s entitlement, the total resources available for FY 2017-18 is
$287,896, 7.5% of which was set aside for administrative costs. Staff proposed the total
resources be allocated as follows:
Emergency Shelter: $266,304. Services include: Flood Ministries Street Outreach
($25,000), Bakersfield Rescue Mission ($61,402), Bakersfield Homeless Shelter
($61,334), and Alliance Again Family Violence ($25,000).
Homeless Prevention: $93, 568 to Bakersfield Homeless Center Rapid Rehousing.
FY 2017-18 Housing Opportunities for Persons with AIDS (HOPWA) Budget:
Based on the previous year’s entitlement, the total resources available for FY 2017-18 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.
Committee member Rivera requested staff meet with Mission Community Services
regarding their small business training courses proposal to verify if they would be
receiving match funding from the Small Business Administration before presenting the
proposed Action Plan to the full City Council for consideration. He also requested staff
meet with Saguaro Investors and the Bakersfield Senior Center to review their proposals
and provide assistance so they may reapply in the future. Mr. Rivera also asked if the
proposal from the Mexican American Opportunity Foundation (MAOF) to rehabilitate
the Visa Scott Center was for the total cost of roofing repairs only or repairs to the
center.
Community Development Director Kitchen stated the proposal was for costs related to
repairs to the center. MAOF submitted the same proposal to the County as well;
preliminary discussions with the County indicate they will likely be awarding funding.
Committee member Rivera asked what the proposal for a Bakersfield Police
Department Impact Team Officers entailed.
Bakersfield Chief of Police Martin stated there has been an increase in the amount of
complaints related to the downtown area, including homelessness and transients. Local
businesses in the area are investing resources to make the area attractive and with the
assistance of several partnerships, including the Bakersfield Homeless Center, the Mission
of Kern County, Kern County Mental Health, the Impact Team Officers will be able to
provide better services to make the area more appealing and safer.
City Manager Tandy added that several of the City’s primary investments are located in
the downtown area; the addition of three new officers in conjunction with the resources
mentioned above, makes those visiting the City’s venues feel safer and more
comfortable to explore the downtown area.
____________________________________________
Budget and Finance Committee Meeting
Agenda Summary Report - March 2, 2017
Page 4
Committee Chair Gonzales asked for a brief description of a Council resolution adopted
in 2001 limiting CDBG funding of nonprofit organizations.
Community Development Director Kitchen stated that the resolution passed in 2001
established Council Policy for providing financial assistance to non-profit organizations,
and did not expressly permit the provision of ongoing operational funds. A “one-time”
amendment was made in 2016 to allow specific funds for the Alliance Against Family
Violence for FY 2015-16 and FY 2016-17.
Committee Chair Gonzales thanked staff for incorporating the Bakersfield Police
Department Impact Team Officers proposal into the proposed Action Plan.
Committee member Weir made a motion to present the proposed Action Plan to the full
City Council. The motion was unanimously approved.
C. Discussion and Committee Recommendation Regarding Adoption of the 2017
Committee Meeting Schedule – Huot
The 2017 Committee meeting schedule was adopted as submitted. Committee
member Rivera indicated he would be unavailable to attend the next
scheduled meeting of March 27th.
5. COMMITTEE COMMENTS
There were no Committee comments.
6. ADJOURNMENT
The meeting adjourned at 1:00 p.m
S:\COUNCIL COMMITTEES\2017\BUDGET AND FINANCE\04_APRIL\AUDIT SERVICES REF MEMO.DOCX
FINANCE DEPARTMENT
MEMORANDUM
TO: Budget and Finance Committee
FROM: Nelson K. Smith, Finance Director
DATE: April 19, 2017
RE: Selection of Audit Services Firm
The City Council adopted Resolution 101-11 in October 2011 updating the policies for
audit reporting practices and selecting audit firms. Based on recommendations made
by the Government Finance Officers Association (GFOA) Council approved the
following recommendations regarding selection of audit service providers:
The scope of the independent audit should encompass not only the fair
presentation of the basic financial statements, but also the fair presentation of
the financial statements of individual funds and component units. The cost of
extending full audit coverage to the financial statements of individual funds and
component units can be justified by the additional degree of assurance
provided.
The City of Bakersfield shall require in their audit contracts that the auditors of
their financial statements conform to the independence standard promulgated
in the General Accounting Office’s Government Auditing Standards even for
audit engagements that are not otherwise subject to generally accepted
government auditing standards.
The City of Bakersfield shall enter into multiyear agreements not to exceed five
years in duration when obtaining the services of independent auditors. Such
multiyear agreements can take a variety of different forms (e.g., a series of
single-year contracts), consistent with applicable legal requirements. Such
agreements allow for greater continuity and help to minimize the potential for
disruption in connection with the independent audit. Multiyear agreements can
also help to reduce audit costs by allowing auditors to recover certain "startup"
costs over several years, rather than over a single year.
The City of Bakersfield shall undertake a full-scale competitive process for the
selection of independent auditors at the end of each five year term of each
audit contract, consistent with applicable legal requirements. In order to
promote competitive bidding among audit firms who are fully qualified to
perform public-sector audits, the City shall actively seek the participation of all
qualified firms, including the current
A copy of the council policy is attached.
Budget and Finance Committee
April 27, 2017
Page 2
S:\COUNCIL COMMITTEES\2017\BUDGET AND FINANCE\04_APRIL\AUDIT SERVICES REF MEMO.DOCX
In March 2017, a Request for Proposal (RFP) for auditing services was posted on the
City’s online vendor and bid management system. Fourteen firms showed an interest in
the process with two of those firms submitting proposals. Both were reviewed by the
Finance Department and the pertinent facts contained in these proposals are outlined
below. Copies of the proposals are included for your review.
Audit Firm Lance Soil & Lunghard Brown Armstrong
Full scope all-inclusive price $58,710 $55,800
Total Staff Hours 610 632
Office Location Brea, CA Bakersfield, CA
Both firms were able to demonstrate adequate qualifications, competence and capacity
to perform an audit of the City. A good portion of the work will involve reviewing and
testing the processes of the City Finance Department, as such it is more prudent that the
Budget and Finance Committee make the recommendation to the full Council regarding
the firm selected to provide these necessary services.
The RFP issued contemplated a five year commitment with the selected firm, with the 2016-
17 fiscal year being year 1 of 5. A cost of living factor will be built into the contract so that
future year costs do not exceed Consumer Price Index (CPI) inflation measures, assuming
no change in the scope of the audit and assuming no significant change in the audit
workload as a result of Governmental Accounting Standards Boards (GASB) actions that
might take place in the future. The City’s cost for these services is budgeted as a “non-
departmental” line item in the General Fund. A small portion of the City costs is charged to
the Wastewater Enterprise Fund regarding a compliance review letter associated with the
Sub-Regional Wastewater / User Agency agreement
Documents
Presented At The
Budget & Finance
Committee
April 27, 2017
Meeting