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Home My WebLink About11/29/2021 Staff: Committee Members: Chris Huot, Assistant City Manager Councilmember, Andrae Gonzales – Chair Councilmember, Ken Weir Councilmember, Eric Arias REGULAR MEETING OF THE BUDGET AND FINANCE COMMITTEE of the City Council - City of Bakersfield Monday, November 29, 2021 12:00 p.m. City Hall North 1600 Truxtun Avenue, Bakersfield, CA 93301 First Floor, Conference Room A AGENDA 1. ROLL CALL 2. ADOPT FEBRUARY 23, 2021 AGENDA SUMMARY REPORTS 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. Long Range Fiscal Model Project Update – Huot/McKeegan 5. COMMITTEE COMMENTS 6. ADJOURNMENT S: S:\Council Committees\2021\Budget and Finance\02_February Page 1 CH:pa/mc Committee Members Staff: Chris Huot Councilmember, Andrae Gonzales – Chair Assistant City Manager Councilmember, Ken Weir Councilmember, Eric Arias REGULAR MEETING OF THE BUDGET AND FINANCE COMMITTEE Tuesday, February 23 2021 12:00 p.m. City Hall North – First Floor 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, Ken Weir Councilmember, Eric Arias City Staff Present: Christian Clegg, City Manager Chris Huot, Assistant City Manager Jacqui Kitchen, Assistant City Manager Brianna Carrier, Administrative Analysts III Greg Pronovost, Technology Services Director Randy McKeegan, Finance Director Nick Fidler, Public Works Director Stuart Patteson, Assistant Public Works Director Joshua Rudnick, Deputy City Attorney Nina Carter, Homeless Services Principal Misty Eaton, Community Development Principal Planner Cecelia Griego, Economic Development Principal Planner Chris Mesa, Police Officer Additional Attendees Present: Members of the Public 2. ADOPT FEBRUARY 5, 2021 AGENDA SUMMARY REPORT The Report was adopted as submitted. 3. PUBLIC STATEMENTS Riddhi Patel provided comments regarding the pandemic and the community. /s/ Chris Huot DRAFT S:\Council Committees\2021\Budget and Finance\02_February Page 2 CH:pa 4. NEW BUSINESS A. Discussion and Committee Recommendation Regarding Annual Audit Reports ending FY 2020 – McKeegan Finance Director McKeegan provided a summarization of the following audit reports for fiscal year 2020 included in the packet:  Comprehensive Annual Financial Report (CAFR);  Agreed Upon Conditions Report for fiscal year ended June 30, 2020;  Auditor Communication with Those Charged with Governance (SAS 114 Letter);  Independent Auditors Reports: o Compliance with Contractual Requirements relative to the Bakersfield Sub- regional Wastewater Management Plan; o Appropriations Limit Worksheet (GANN Limit) of the City of Bakersfield; o Mechanics Bank Area, Theater, Convention Center, Bakersfield Ice Sport Center & Spectrum Amphitheater; and  Agreed Upon Conditions Report for Measure N/Public Safety and Vital Services (PSVS) Measure Finance Director McKeegan noted that there were two findings found in the internal control of the Agreed Upon Conditions Report. He added that procedures had been put in place to address the findings which included Supervisors reviewing the information for new vendors to mitigate the risk of creating fictitious vendors and creating a procedure manual for the new electronic timecard system to ensure they are approved accordingly. The Committee unanimously approved a motion to present the annual audit reports to the full City Council for acceptance. B. Discussion and Committee Recommendation Regarding FY 2021-22 CDBG, HOME, ESG Action Plan – Kitchen/Eaton/Carter Assistant City Manager Kitchen introduced Community Development Principal Planner Eaton who provided a PowerPoint presentation outlining the second year of annual entitlements of the five-year 2020-2025 Consolidated Plan (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 fiscal year (FY) 2021-22 were not available at the time of the meeting; therefore, staff based the proposed budget using last year’s entitlements. The total proposed budget for CDBG, HOME, ESG, and HOPWA for FY 2021-22 is $6,435,432. FY 2021-22 Proposed CDBG Budget: The total resources available for FY 2021-22 are $3,870,192. This amount includes the CDBG entitlement of $3,862,192 and project program income of $8,000. Staff proposed the total resources be allocated as follows:  Total Administration – 20% Cap: $772,438  Long Term Obligations - $375,200  Public Services: $190,000. Services include Fair Housing Program Services and Bakersfield Senior Center Support Services. S:\Council Committees\2021\Budget and Finance\02_February Page 3 CH:pa  Low-Mod Benefit: $2,532,554. Services include Home Access Grant Program, Curb, Gutter, Sidewalk, and Reconstruction of several areas including: Union/Brundage Area (Phase 6), Madison Area, Oleander Area, Union and East Truxtun Area, Benton Area, McMurtrey Aquatic Center Improvements, Jefferson Park Improvements, Bakersfield Senior Center building demolition, and Mercy House Brundage Lane Navigation Center Art and Murals. FY 2021-22 Home Investment Partnership (HOME) Budget: Based on the previous year’s entitlement, the total resources available for FY 2021-22 is $1,607,271, 10% of which was set aside for administrative cost. This amount includes the HOME Entitlement of $1,527,271 and $80,000 of projected program income. In addition, there is $1,809,720 of uncommitted HOME funds from the previous years. Staff estimates that the total Program/Project Cost and Direct Delivery for FY 2021-22 is $3,264,264. This Program/Project cost includes: $229,091 in HUD mandated Community House Development Organization (CHDO) Set aside and $3,035,173 for New Construction. FY 2021-22 Emergency Solutions Grant (ESG) Budget: Based on the previous year’s entitlement, the total resources available for FY 2021-22 is $326,368, 7.5% of which was set aside for administrative cost. Staff proposed the total resources be allocated as follows: Emergency Shelter: $301,890, Services include: Flood Ministries Street Outreach ($24,000), Bakersfield Homeless Center – Shelter ($70,000) The Mission of Kern County ($70,000) and Alliance Again Family Violence ($31,500). Homeless Prevention & Rehousing Project: Bakersfield Homeless Center – Rapid Rehousing and Prevention ($106,390). FY 2021-22 Housing Opportunities for Persons with AIDS (HOPWA) Budget: Based on the previous year’s entitlement, the total resources available for FY 2021-22 is $631,602, 3% of which is set aside for administrative costs. Staff proposes allocating $612,654 to Kern County Public Health to administer the program. Committee Chair Gonzales inquired about the process to determine which areas receive funding for street improvements and if it was possible to supplement funding for ongoing improvements in the Oleander area. Public Works Director Fidler stated data is gathered to determine which neighborhoods have residential landscaping or utility issues that conflict with the street standards. Staff then concentrates on areas with a higher number of conflicts. He added that CDBG funding would continue to be used to complete street improvements in that area. Assistant City Manager Kitchen noted that requests for funding are closely monitored and recommendations take into consideration all the necessary variables for street improvements. Committee Chair Gonzales requested staff provide a comprehensive guide for HOME Projects. Assistant City Manager Kitchen provided the Committee with a list containing a map identifying all the affordable housing projects funded since 2015. Committee member Arias inquired about the Down Payment Assistant Program. Community Development Principal Planner Eaton responded that the City partnered with the Ventura County Community Development who provided all the marketing material including locating qualifying borrowers for FY 2020-21. Borrowers are provided a loan by way of a grant to be used as down payment for a home purchase. It is a low interest rate bearing grant with deferred payments. S:\Council Committees\2021\Budget and Finance\02_February Page 4 CH:pa The Committee unanimously approved a motion to present the proposed Action Plan to the full City Council for approval. C. Discussion and Committee Recommendations Regarding FY 2021-22 CDBG CV-3 Funds – Kitchen/Griego Economic Development Principal Planner Griego provided a verbal summarization of the memorandum included in the agenda packet regarding the supplemental Community Development Block Grant (CDBG-CV) and Emergency Solutions Grant (ESG-CV) funding made available through the US Department of Housing and Urban Development’s (HUD) Recommended Cares Act Community Development Block Grant Funding due to the Coronavirus (COVID-19) crisis. The entitlements are to be used to prevent, prepare for, and respond to the impacts of COVID-19. Committee member Arias inquired about the Bakersfield Senior Center (Center) facility project. Principal Planner Griego responded that the Center had received a Small Business Innovation Research (SBIR) program grant from the US Environmental Protection Agency for environmental testing and some site plan costs. They also received a $25,000 grant to fund the demolition of an inhabitable building destroyed by a fire. The Committee unanimously approved a motion to incorporate the additional CDBG-VD and ESG-CV funding into FY 2019-2020 Annual Action Plan (Plan) and present the amended Plan to the full City Council for approval. 5. COMMITTEE COMMENTS Committee Chair Gonzales expressed his appreciation for staff’s dedication and work with all the programs discussed at the meeting. 6. ADJOURNMENT The meeting adjourned at 12:49 p.m. DRAFT