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HomeMy WebLinkAbout02/18/2020S:\Council Committees\2020\Budget and Finance\02_February Page 1 CH:pa 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 Tuesday, February 18, 2020 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue, Bakersfield, CA 93301 AGENDA SUMMARY REPORT The meeting was called to order at 12:00 p.m. 1.ROLL CALL Committee members Present: Councilmember, Andrae Gonzales, Chair Councilmember, Willie Rivera Committee member absent: Councilmember, Ken Weir City Staff Present: Chris Huot, Jacqui Kitchen, Assistant City Managers Joe Conroy, Public Information Officer Brianna Carrier, Anthony Valdez, Administrative Analysts III Nathan Gutierrez, Management Assistant Greg Terry, Interim Chief of Police Joshua Rudnick, Deputy City Attorney Randy McKeegan, Finance Director Tera Loveless Ortiz, Assistant Finance Director Greg Pronovost, Technology Services Director Stuart Patteson, Assistant Public Works Director Rob Voyles, Public Works Operations Manager Sean Cacal, Public Works General Services Superintendent Dianne Hoover, Recreation and Parks Director Fidel Gonzales, Recreation and Parks Park Planner Rajan Mistry, Recreation and parks, Business Manager Christopher Boyle, Development Services Director Nina Carter, Community Development Coordinator Jason Cater, Economic Development Planner Additional Attendees Present: Members of the Public /s/ Chris Huot S:\Council Committees\2020\Budget and Finance\02_February Page 2 CH:mc:pa 2.ADOPT March 26, 2018 AND February 27, 2019 AGENDA SUMMARY REPORT The Reports were adopted as submitted. 3.PUBLIC STATEMENTS Jim Wheeler with Flood Ministries stated he would like to partner with the City’s Code Enforcement Rapid Response Team (RRT) to provide aid to the homeless individuals encountered during the removals of encampments. This will allow for ongoing assistance with individuals they have establish connections with. Alex Vega with Ventura County Community Development Corp. (VCCDC) stated he supported the Home Funding Application for low income families. 4.NEW BUSINESS A.Discussion and Committee Recommendation Regarding Annual Audit Reports Ending FY 2019 Finance Director McKeegan provided a summarization of the audit reports included in the packet and presented the financial statements and associated reports ending FY 2019, noting that there were no findings and recommendations for the year. The reports discussed were: Comprehensive Annual Financial Report (CAFR); Agreed Upon Conditions Report for the fiscal year; Auditor Communication with Those Charged with Governance (SAS 114 Letter); Independent Auditors Report: Compliance with Contractual Requirements relative to the Bakersfield Subregional Wastewater Management Plan; Independent Auditors Report: Appropriations Limit Worksheet (GANN Limit) of the City of Bakersfield; Independent Auditors Report: Rabobank Arena, Theater, Convention Center, Bakersfield Ice Sports Center & Spectrum Amphitheatre; and Agreed Upon Conditions Report for the Measure N/ Public Safety and Vital Services (PSVS) Measure The Committee unanimously approved to present the annual audit reports to the full City Council for acceptance. B.Discussion and Committee Recommendation Regarding FY 2020-21 CDBG, HOME, ESG Action Plan Development Services Director Boyle introduced Community Development Coordinator Carter who summarized, by way of a PowerPoint presentation, the process of developing a Five-year Consolidated Plan to address the community needs and set priorities to address those needs over a five year period which included holding several community meetings, forums, stakeholder meetings, and a community needs survey to gather input. As a result of the community engagement, the following key goals are: increase and preserve affordable housing for low-and-moderate income households, prevent and reduce homelessness, improve public infrastructure and facilities to promote safe and vibrant communities, foster community and economic development, and enhance facilities and services for the non-homeless special needs population. Community Development Coordinator Carter also summarized the first-year of annual entitlements of the Five-year Consolidation Action Plan. These entitlements help to improve the quality of life of low to moderate income neighborhoods, improve S:\Council Committees\2020\Budget and Finance\02_February Page 3 CH:mc:pa 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 FY 20-21 were not available at the time of the meeting; therefore, staff based the proposed budget using the previous year’s entitlements. The total proposed budget for CDBG, HOME, ESG, and HOPWA for FY 2020-21 is $5,840,196. FY 2020/21 Proposed CDBG Budget: The total resources available for FY 2020/21 are $3,610,882. This amount includes the CDBG entitlement of $3,610,882 and project program income of $8,000. Staff proposed the total resources be allocated as follows: Total Administration – 20% Cap: $720,576 Long Term Obligations – $364,826 Public Services: $540432. Services include Fair Housing Program Services, Bakersfield Senior Center, Flood Ministries Homeless outreach – Designated CE Team, and Mission at Kern (Operations at HEAP Funded Expansion). Public Improvements Project: $2,070,000 Services include Home Access Rehabilitation; Drainage, Curb, Gutter, Sidewalk, and Accessibility Improvements in the following areas: Madison Area, Castro Area, East Truxtun Area, Oleander Area, East Brundage Area; and Belle Terrace Park Playground Upgrades. FY 2020/21 Home Investment Partnership (HOME) Budget: Based on the previous year’s entitlement, the total resources available for FY 2020-21 is $1,359,869, 10% of which was set aside for administrative cost. This amount includes the HOME Entitlement of $1,259,869 and $100,000 of projected program income. Staff estimates that the total Program/Project Cost and Direct Delivery for FY 2020-21 is $1,359,869. This Program/Project cost includes: $188,980 in HUD mandated Community House Development Organization (CHDO) Set aside and $1,034,901 for New Construction. FY 2020-21 Emergency Solutions Grant (ESG) Budget: Based on the previous year’s entitlement, the total resources available for FY 2020-21 is $308,712, 7.5% of which was set aside for administrative cost. Staff proposed the total resources be allocated as follows: Emergency Shelter: $308,712, Services include: Flood Ministries Street Outreach ($23,625), Bakersfield Homeless Center – Shelter ($66,719) The Mission of Kern County ($66,719) and Alliance Again Family Violence ($28,164). Homeless Prevention & Rehousing Project: Bakersfield Homeless Center – Rehousing ($100,332). FY 2020-21 Housing Opportunities for Persons with AIDS (HOPWA) Budget: Based on the previous year’s entitlement, the total resources available for FY 2020-21 is $560,733, 3% of which is set aside for administrative costs. Staff proposes allocating $543,911 to Kern County Public Health to administer the program. Committee member Rivera requested the interest rates of the long-term CDBG loans and inquired about the applications submitted by The Mission of Kern County and the Bakersfield Senior Center. S:\Council Committees\2020\Budget and Finance\02_February Page 4 CH:mc:pa Community Development Coordinator Carter stated the interest rate for the first Section 108 loan ($4.1 million) was 1.75% to 4.76% and the second loan ($800,000) was 1.61% to 4.76%. She also stated the Mission of Kern County application for a 40-bed expansion ($35,000) was not recommend due to an alternative funding source allocation from the Homeless Housing, Assistance and Prevention (HHAP) state program. The Bakersfield Senior Center application to demolish all buildings and construct new building ($3.5 million) was not recommend as well. Community Development staff will work the Senior Center to develop a financial plan to fund the project in phases. Breaking down the project into phases will allow the Senior Center to apply for several grants including the Brownfields Grant and through the Transformative Climate Communities Program (TCC). Committee Chair Gonzales requested the remaining balances of the long-term CDBG loans and inquired about the Belle Terrace Park improvements application. Community Development Coordinator Carter stated the remaining balances for both loans were $849,314 and $159,576 respectively. Recreation and Parks Director Hoover stated the park is in need of improvements and a new school is being constructed in the area. There is a working partnership with the County of Kern to improve the park to city standards. Assistant City Manager Kitchen added the full cost of improvements for this project is approximately $1.7 million. The County is expected to allocate approximately $840,000 of their CDBG budget as well as County contingency for the project. The remaining balance needed would come from the city’s allocation of $350,000 and philanthropic contributions. Staff recommends that the funding be contingent upon the County’s action plan being adopted in June. Committee Chair Gonzales made a motion to present the proposed Action Plan to the full City Council with the contingency that the County include and approve funding through their Action Plan for the Belle Terrance Park and that they included a maintenance plan as well. The motion was unanimously approved. C.Discussion and Committee Recommendation Regarding Adoption of the 2020 Committee Meeting Schedule The meeting scheduled was adopted as submitted. 5.COMMITTEE COMMENTS There were no comments made. 6. ADJOURNMENT The meeting adjourned at 12:40 p.m.