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HomeMy WebLinkAbout09/15/2017 AT OFFICE OF THE CITY MANAGER September 15, 2017 TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager SUBJECT: General Information Notable Items  The sales tax numbers for the most recent quarter came in this week. The good news to report is that sales tax revenues were up 5% when compared to the same quarter last year. This data represents sales tax activity for the last quarter of the recently completed fiscal year (April, May and June 2017). We have seen small, but gradual increases in sales tax revenues over the past three consecutive quarters – unfortunately these most recent quarters are being compared to abnormally low quarters from late 2015 and the first half of 2016. Although the trending is positive, we will not have a breakdown of the revenues by industry for a few more weeks. In addition, given the latest projections from CalPERS for next budget year outlined below, we’re not recommending any budgetary adjustments at this time. Please see the enclosed memo from Finance Director Nelson Smith.  The annual actuarial reports from CalPERS were published recently. The annual reports provide us with the status of each of our three plans (Fire, Police & Miscellaneous) as of the end of the CalPERS reporting period, which in this case is June 30, 2016. The reports provide current funding status, the amount of our unfunded liabilities and they establish what our required contributions will be for our upcoming 2018-19 budget year. The reports also provide projections of what the City’s costs will be for the next five years. The City’s contribution requirements for the next fiscal year are scheduled to increase by $4.9 million, bringing the annual cost of our pension plans up to an estimated $47.8 million. Our total unfunded liability increased from $348 million to $419 million, which is a $71 million increase from a year ago. This increase is due to the CalPERS investment returns earning only 0.6% for the 2015-16 year compared to their target rate for that year of 7.5%. The City’s overall funding status of the retirement plans dropped from 70.3% down to 66.0%. The CalPERS reports estimate General Information September 15, 2017 Page 2 that the annual cost of our pension plans will rise to over $70 million by the year 2024. The aforementioned memo from the Finance Director is attached for your further review, which provides additional details about the contents of the recent actuarial reports.  On July 18, 2017, the State Water Board adopted new maximum contaminate levels for the contaminate 1, 2, 3, - Trichloropropane (TCP) in groundwater. These new regulations are applicable to drinking water served by public water systems, including the City's domestic water system. The City of Bakersfield's project to remove TCP contaminant from the groundwater is rapidly transitioning from design to construction. A part of the TCP Mitigation Project is to retrofit an existing City well in the 2800 acre banking project and pipe it into the existing domestic water system. TCP concentration in this well is non-detectable. A new pump was installed, the pump motor was rebuilt, and approximately 2,300 feet of 24 inch pipeline is being installed now. The addition of this well will safeguard the domestic water system from possible contaminants and increases the overall water quality and reliability of the system. On August 16, 2017 City Council approved a budget of $566,862 for this mitigation project. The entire project should be completed by October 6, 2017.  This week representatives with the Bakersfield Police Department and community leaders attended training titled Principled Policing. This training was facilitated by Captain Joe Mullins and addressed various topics including racial matters that have been highly publicized locally, as well as nationally. This training and open dialogue were held with the hopes of building and improving community trust in order to create a more cohesive relationship between the Bakersfield Police Department and those we serve. General Information September 15, 2017 Page 3 Reports  Streets Division work schedule for the week of September 18th  Recreation and Parks Monthly Report (August 2017) Event Notifications  Event calendar for the Rabobank Arena Theater and Convention Center  Saturday, September 23, 2017 is National Seat Check Saturday and the Bakersfield Police Department will be assisting the California Highway Patrol for a car seat check event from 10am to 1pm at Babies R Us, 9280 Rosedale Highway. MEMORANDUM TO: Alan Tandy, City Manager FROM: Nelson K. Smith, Finance Director DATE: September 13, 2017 SUBJECT: PERS Rates for 2018-19 and Updated Funding Status The City recently received its Annual Valuation Report from CalPERS, which includes employer rates for future years and also provides updated information regarding the funding status of the various City retirement plans as of the June 30, 2016 CalPERS actuarial valuation date. As you may recall, CalPERS made a significant change in the way the actuarial reports are prepared as well as how the City will remit funds to them each month. The actuarial reports no longer provide full cost employer rates as a percentage of city payroll. CalPERS has decided to separate out the unfunded liability portion of the rates from the “normal cost” portion of the rates. The normal cost portion of the plan funding requirements will continue to be paid on a bi-weekly basis as a percentage of payroll costs. The unfunded liability portion of the plan funding requirements will now be billed monthly annually as a flat dollar cost. The City will pay CalPERS on a monthly basis for the unfunded liability portion. The table below shows the employer unfunded liability costs we are currently paying for each plan, along with our new PERS costs for 2018-19. The CalPERS report also provides “projected costs” for each plan, estimating the future year employer expense for the 2019-20 fiscal year. Unfunded Liability Costs 2017-18 2018-19 2019-20 (monthly payment plan) projected Fire $ 3,663,652 $ 4,586,138 $ 5,638,000 Police $ 8,815,778 $ 10,415,641 $12,253,000 Miscellaneous $ 8,289,188 $ 10,108,184 $12,180,000 Total UL Cost – All Plans $20,768,618 $ 25,109,963 $30,071,000 As you can see the unfunded liability portion of costs are scheduled to go up by $4,341,345 for the 2018-19 budget year, with additional cost increases of $4.9 million in FY 2019-20. The next table (below) shows the employer “normal cost” rates we are currently paying for each plan, along with our new PERS rates for 2018-19. The CalPERS report also provides “projected rates” for each plan, estimating the future year employer rates for the 2019-20 fiscal year. Rates 2017-18 2018-19 2019-20 (as a % of payroll) Projected Fire 16.120 % 16.736 % 17.6 % Police 18.465 % 18.939 % 19.8 % Miscellaneous 9.122 % 9.449 % 10.0 % These costs are paid as a percent of payroll expenses on a bi-weekly basis and are in addition to the unfunded liability costs shown in the prior table (page 1). As you can see there are gradual increases in the normal cost component for each of the plans. The total cost to the City for funding retirement obligations (both normal cost plus unfunded costs) continues to go up by significant amounts each year. The City’s budgeted costs for CalPERS retirement in FY 2017-18 is $42,124,706. CalPERS estimates the City’s total cost in FY 2018-19 will be approximately $47,875,000 (includes EPMC costs); an increase of $5.7 million. CalPERS long term projections shows the City’s annual costs climbing to approximately $71 million in FY 2024-25. (see attached long term projection chart). Funding Status of the Plans In addition to the new employer rate data, the annual PERS report also provides us with updated funding status of the plans and unfunded liabilities of the plan. The prior year valuation reports showed the City’s unfunded liability for all plans combined at approximately $348 million, which was a $54 million increase from the prior year. The most recent reports (valuation date of June 30, 2016) shows an additional increase in our unfunded liability of $71 million, bringing the City’s overall unfunded liability up to $419 million. The increase can be attributed to below average earnings on the PERS investments of 0.6% during the 2015-16 fiscal period, compared to the former CalPERS target rate of 7.5%. CalPERS has recently disclosed their earnings for 2016-17, which came in at 11%. The recent results are above their target rate for the first time in three years. The overall funding status for the three City plans combined has dropped from 70.3 % down to 66.0 %. Week of September 18_2017_Work Schedule.doc Page 1 of 2 STREETS DIVISION – WORK SCHEDULE Week of September 18, 2017 – September 22, 2017 Resurfacing/Reconstructing streets in the following areas: Sealing streets in the area south of 178 and west of Mt. Vernon Maintenance Grind & Pave on E. 19th St between Union and Baker St Maintenance Grind & Pave on Grove St east of Union Paving at Airport for dust control Paving in the HUD area’s of Oleander and Castro Miscellaneous Streets Division projects: Video inspection of City owned sewer and storm lines to evaluate condition of pipes Repairing damaged sewer line found during video inspection Miscellaneous concrete repairs throughout the City Concrete repairs to various bus stops throughout City limits Sewer and Storm line installation on the north side of Ming Ave east of Baldwin in preparation for street widening project Miscellaneous concrete work at Sports Village NOTE: If raining, there will be no street sweeping service and all street cleaning personnel will be assigned to cleaning plugged drains and part circle culverts. This also applies when a large number of street sweepers are in Fleet for repairs. Areas that have been missed during this time will be swept at the end of the month only when possible. THIS SPACE INTENTIONALLY LEFT BLANK Week of September 18_2017_Work Schedule.doc Page 2 of 2 STREETS SWEEPING SCHEDULE Monday, September 18, 2017 Between So. “H” St. & Union Avenue – Pacheco Rd. & Hosking Rd. Between Stockdale Hwy. & Truxtun Ave. (ext.) – Coffee Rd & Partridge Ave. Tuesday, September 19, 2017 Between Panama Lane & Woodmere Dr. – Ashe Rd. & Stine Rd. Between District Blvd. & Panama Ln. -- Gosford Rd. & Ashe Rd. Between Akers Rd. & Phyllis St. – Harris Rd. & Panama Ln. City areas between Akers Rd. & Stine Rd. – Harris Rd. & Panama Ln. Oswell to Sterling – Red Bank to Frwy 58 Stockdale to Bell Terrace – New Stine to S. Montclair Wednesday, September 20, 2017 Cul-De-Sacs on the north side of Angela Wy., between Manely Ct. & Cris Ct. Between Oswell Park Dr. & Brundage Ln. – Oswell St. & Leeta St. City areas between Workman St. & Sterling Rd. – 58 Hwy. & Baja Dr. Between Morning Dr. & Park Dr. – College Ave. & Willis Ave. Between Buena Vista Rd. & Old River Rd. – White Ln. & Panama Ln. Between Old River Rd. & Gosford Rd. – White Ln. & Pacheco Rd. Thursday, September 21, 2017 City areas between Stockdale Hwy. & Ming Ave. – Ashe Rd. & Gosford Rd. Between El Portal/Laurelglen Blvd. & Ashe Rd. – Ming Ave. & So. Halfmoon/Olympia Dr. Between Ashe Rd. & Stine Rd. – Ming Ave. & So. Halfmoon/Edgemount Dr. Between Coffee Rd. & Wilson Rd. (ext.) – White Ln. & So. Halfmoon/Olympia Dr. Friday, September 22, 2017 Between Etchart Rd. & Pavilion Dr. -- Calloway Dr., west to the canal boundary. Between Norris Rd. & Olive Dr. – Calloway Dr. & Coffee Rd. Between Olive Dr. & Noriega Rd. – Calloway Dr. & Verdugo Ln. City areas between Coffee Rd./Riverlakes ext. & Allen Rd. – Hageman Rd. & Rosedale Hwy. City areas between Pacheco Rd. & Harris Rd. – Stine Rd. & Wible Rd. We enhance the quality of life through a variety of programs, parks, and partnerships. B A K E R S F I E L D Department of Recreation and Parks Date: September 14, 2017 To: Alan Tandy, City Manager From: Dianne Hoover, Director of Recreation & Parks Subject: 2017 August Monthly Report Total monthly attendance for all programs, reservations and volunteers combined for the month of August totaled 68,913 as compared to last year’s total of 59,058. RECREATION Total Attendance: 68,913 Special Event Reservations: August 5: Beach Park, Bakersfield Shoe Crew Horseshoe Tournament – 50 Guests Patriots Park, Victory Outreach Community Outreach – 500 Guests August 19: Yokuts Park, Giant Sequoia Nation Community Outreach – 500 Guests  Total Attendance: 14,004 Reservations/Special Events Silver Creek Community Center  Total Attendance: o Overall attendance was 1,299 as compared to last year of 1,585. The decrease in attendance was attributed to the cancellation of the After School Program. o There were two (2) rentals for the month of August. Saunders Recreational Facility  Total Attendance: o Overall attendance was 562 as compared to last year of 642. The decrease in attendance was attributed to numerous cancellations of league play due to high temperatures. o There were no rentals for the month.  Soccer Program: 10 Registered Teams / Total Attendance: 480 Department of Recreation and Parks August 2017 Monthly Report Page 2 We enhance the quality of life through a variety of programs, parks, and partnerships. AQUATICS Total attendance for Aquatics in August was 14,220 compared to 15,014 in 2016. This was a slight decrease of 5.3% compared to August 2016. The McMurtrey Aquatic Center had an increase in attendance compared to Silver Creek, MLK, and Jefferson Pools. The neighborhood pools overall attendance was 3,758 compared to 5,066 in 2016. This reduction was due to the opening of the spray parks this summer and reinstatement of the $1.00 admission fee for Recreation Open Swim at Jefferson and MLK Pools. McMurtrey Aquatic Center: Monthly attendance at the McMurtrey Aquatic Center increased this month to 10,462 compared to last year’s 9,948. This increase was due to additional swim lessons offered and 2 new pool rentals: Bakersfield Christian High School Water Polo Team and Bakersfield Swim Academy Swim Team. o A 5th Session of swim lessons was added to accommodate the USA Swimming Foundation Make A Splash Grant that was awarded late July. This allowed 126 more children (80 of them discounted $5 swim lessons) the opportunity to learn to swim. 100 Mile Club: The 100 Mile Lap Swim Club is currently made up of 400 active members that swam 14,945.29 miles this month. The club has swum a combined total of 173,786 miles. Bakersfield Christian High School: New this year, the Water Polo Team at Bakersfield Christian High School started practicing for their season. Practices are Monday through Friday from 3:30 to 5:30 pm with the Water Polo Meets scheduled for Fridays. The season will end around Thanksgiving. Bakersfield Swim Academy: The Bakersfield Swim Academy swim team started August 30th and participants range in age from 13 to 25 years. Jefferson Pool Total attendance at Jefferson Pool was 677 compared to last year’s 1,015. Due to the reinstatement of the $1admission fee, fewer participants at Recreation Open Swim and only three days of swim lessons in Session 4 were counted in this month’s attendance. Jefferson Pool closed on August 4th for the summer. Swim Lessons Recreational Swim Swim Teams Trainings Rentals Total Attendance 414 239 0 24 0 677 Department of Recreation and Parks August 2017 Monthly Report Page 3 We enhance the quality of life through a variety of programs, parks, and partnerships. Silver Creek Pool: Total attendance at Silver Creek Pool was 2,600 compared to last year’s 3,320. There were 263 participants in swim lessons for Session 4 this year compared to last year’s 253. Silver Creek Pool closed on August 11th for the summer. Swim Lessons Recreational Swim Swim Teams Trainings Rentals Total Attendance 1,578 960 0 62 0 2,600 MLK Pool: Total attendance at Dr. Martin Luther King Jr. Pool was 481. Last year’s total attendance was 731. Participants in Session 4 Swim Lessons increased this month from 54 compared to 38 participants in 2016. In addition, a Jr. Lifeguarding class was added with 9 participants. MLK Pool closed on August 4th for the summer. Swim Lessons/Jr Lifeguard Recreational Swim Swim Teams Trainings Camp Rec Total Attendance 324/54 93 0 10 0 481 Make a Splash Program: Make A Splash drowning prevention program provided a Parent CPR and First Aid Training on August 5th with 12 participants receiving certification. With First 5 Kern, Kaiser Permanente Operation Splash Grant and USA Swimming Foundation Grant, staff taught swim lessons to 937 individuals who participated at the $5.00 discounted price. USA Swimming Foundation Make A Splash Grant: With the funds provided by the USA Swimming Foundation Make a Splash Grant last month, a Session 5 Swim Lesson which provided funding for 80 income eligible children 3 to 17 years old to receive discounted $5 swim lessons. The lessons took place August 14th through the 24th in the evenings, Monday through Thursday. Registration began on Monday, July 31st and all 80 grant spots were filled within two hours. A total of 126 participants were served as a result of the additional swim lesson session at McMurtrey. Donations: $700 Department of Recreation and Parks August 2017 Monthly Report Page 4 We enhance the quality of life through a variety of programs, parks, and partnerships. ATHLETICS Monthly attendance increased during the month of August as compared to the same time last year. Total attendance for August was 35,227; last August attendance was 29,481. The 19.5% increase in attendance is attributed to the Summer Softball League’s increase in attendance. The Fall Softball League began in August this year instead of September. There was an additional two day softball tournament at Mesa Marin this year as well. Athletic Programming/Adult Softball: o Summer League games continued through mid-August, five days a week. o Fall pre-season games began the last week of August. o There are 144 teams in the Fall League with 84 Men’s and 60 Coed teams. Softball Tournaments o The Cody Jimenez Forever Foundation held a fundraiser softball tournament at Mesa Marin on August 19th & 20th. o The NSA youth fast pitch tournament was held on August 26th & 27th. A total of 35 teams participated in the tournament. Saturday’s games were held at Beach Park and two fields at East High School in order to accommodate all of the teams. Kidz Love Soccer o Kidz Love Soccer was held on Saturday’s at Pin Oak Park this month. The program teaches children soccer with a nurturing, recreational environment. There were 24 participants in the program this month. Donations: $1,680.00 Dr. Martin Luther King, Jr. Community Center  Total Attendance: o Overall attendance for the month was 3,601 as opposed to last year’s total of 3,192. Attendance was up 12% from last August due to an increase in attendance for morning basketball and the afternoon game room. o Youth Academy – This class offers tutoring, puzzles, arts and crafts, read-a- thons and cultural enrichment. o Donations: $1,330.90 Department of Recreation and Parks August 2017 Monthly Report Page 5 We enhance the quality of life through a variety of programs, parks, and partnerships. ADMINISTRATION Wall Repairs: In Progress: 1. Ming Ave & East of Old River (south wall) 2. 120 Glen Oaks Dr. @ Stockdale Hwy 3. S/W corner of Coffee Rd & Olive Dr. – brick planter 4. S Street N/O California Ave – Brick Planter 5. NW corner of Buffalo Peaks Dr. and Reliance Dr. 6. El Portal @ Calle Las Manzanos & Calle De Solano (Las Palmas) missing the letter “M” – wall signage repair Completed: 1. E. Laurelglen Blvd – Garden Park sign *repaired by park staff Aquatic Maintenance:  Kugal fountain renovation project completed by contractor. PARKS Area 1  Removed and replaced irrigation controller and pedestal on Etchart at Shallotte.  Removed dirt in the planters on the south side of Reina between Allen and Renfro in preparation for installing wood chips. Area 2  California Ave – Public Works road re-construction project by contractor, Granite Construction was completed on 7/24/17. During the project, power supply to irrigation controller in median at “C” Street was interrupted and had to be repaired by city staff on 8/4/17.  Chester Avenue – Staff removed five wooden park benches on east side at 19th Street on 8/10/17 at the request of business owner, Jalisco Jewelers. Bakersfield Sports Complex  The overflow parking lot on the north side was cleaned and cleared of all illegal dumping. Jastro Park  Contractor, Courts & Greens completed new striping of lines for six (6) additional pickle ball courts at tennis courts on 8/31/17. Jefferson Park  Staff removed graffiti and old paint from concrete tables at amphitheater with heat pressure wash truck on 8/18/17 & 8/25/17 per Council request. Maxicom  The sites that had been insulated and/or had cooling fans installed have had no serious issues. We are currently experiencing another extreme heat wave which will test the electronics and our efforts to protect them. Department of Recreation and Parks August 2017 Monthly Report Page 6 We enhance the quality of life through a variety of programs, parks, and partnerships. McMurtrey Aquatic Center  Women’s locker room was sprayed for pests. MLK Park  Area staff removed weeds and cleaned up community garden per Recreation’s request on 8/2/17 and 8/3/17. Silver Creek Park o This site is now operating on a step program with flow watch active. We will activate the site onto an E.T. based program this fall. Weston Park  Illegal dumping was removed. Tree Maintenance o Area 6 staff with the assistance from the Water Department cleaned the entire creek at TPRW. o Area 6 staff delivered the ticket booth to TPRW for the Fake a Palooza Concert. o Area 6 staff has removed tumbleweeds and weeds along the bike path from Allen road westbound. o Tree staff removed 3 Homeless encampments/illegal dump sites during the month of August. o Tree staff has been trimming areas around schools and crosswalk signs throughout town. Trimming:  Trees Trimmed: 38 Clearance: 46 Removals: 0  Service Tickets: Received: 213 Completed: 169 UPCOMING/ONGOING EVENTS:  Pickleball League (NEW!) – The City of Bakersfield is offering our First Pickleball League. Registration deadline is September 15th! $50 per person. League will take place at Jastro Park. Please view more details at www.bakersfieldparks.us.  For additional activities and events offered through the Recreation and Parks Department, please visit the website at www.bakersfieldparks.us. BOX OFFICE HOURS Mon-Fri 10 AM - 5 PM (Excluding Event Days) CHARGE-BY-PHONE 1-888-929-7849 GROUP SALES INFORMATION 661-852-7309 SEASON TICKET INFORMATION Bakersfield Condors 661-324-PUCK (7825) www.bakersfieldcondors.com Bakersfield Symphony 661-323-7928 www.BSOnow.org Broadway In Bakersfield 661-852-7308 Week of September 11th UPCOMING EVENTS Sept 23 – Gloria Trevi/Alejandra Guzman 8:00 PM $145, $115, $90, $60, $50 On Sale Now September 30 – Tim McGraw/Faith Hill 7:30 PM $129.50, $99.50, $69.50 On Sale Now October 12 – Condors vs San Antonio 6:30 PM $37, $27, $22, $18, $14, $12 On Sale TBA October 14 – Condors vs Tucson 7:00 PM $37, $27, $22, $18, $14, $12 On Sale TBA October 27 & 28 – Condors vs Stockton 7:00 PM $37, $27, $22, $18, $14, $12 On Sale TBA November 1 – Condors vs Manitoba 6:30 PM November 3 – Skillet, Britt Nicole, etc.7:00 PM $49.75, $36.75, $26.75, $19.75 On Sale Now November 9 - Disney On Ice 7:00 PM $60, $36, $12 On Sale Now November 10 – Disney On Ice 7:00 PM $60, $36, $25, $23, $18, $15, $12 On Sale Now November 11 – Disney On Ice 3PM/7PM $60, $36, $25, $23, $18, $15, $12 On Sale Now November 12 – Disney On Ice 1PM/5PM $60, $36, $25, $23, $18, $15, $12 On Sale Now November 18 – PBR Velocity Tour 7:00 PM $150, $65, $45, $25, $15 On Sale Now $37, $27, $22, $18, $14, $12 On Sale TBA September 29 – Bakersfield Symphony 7:00 PM $45, $35 On Sale Now October 7 – Bakersfield Symphony 7:30 PM $45, $35, $30, $20 On Sale Now October 8 – Dirty Dancing 7:30 PM $65, $55, $35 On Sale Now October 12 – Theresa Caputo 7:30 PM $89.75, $59.75, $49.75, $39.75 On Sale Now November 4 – Bakersfield Symphony 7:30 PM November 30 – Mannheim Steamroller 7:30 PM $67.50, $52.50, $35 On Sale Now $45, $35, $30, $20 On Sale Now www.rabobankarena.com - www.spectrumamphitheatre.com October 1 – Gospel Fest 3:00 PM Free Admission October 12 – America 7:00 PM $59.50, $49.50, $29.50, $19.50 On Sale Now October 28 – Ozomatli w/Velorio 6:00 PM $35, $15 On Sale Now