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HomeMy WebLinkAbout11/28/22 BUDGET AND FINANCE SPECIAL MTG40 (1 0 BAKERSFIELD THE SOUND OF5WA kf '-Re* Staff: Scott Andrews, Assistant City Manager Mario Orosco, Budget Officer Committee Members: Councilmember, Andrae Gonzales- Chair Councilmember, Ken Weir Councilmember, Eric Arias SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE Of the City Council - City of Bakersfield Monday, November 28, 2022 12:00 p.m. City Hall North - Conference Room A 1600 Truxtun Avenue, Bakersfield CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 12:00 p.m. 1. ROLL CALL Committee Members Present: Councilmember Andrae Gonzales - Chair Councilmember Ken Weir -(Seated at 12:03) Councilmember Eric Arias City Staff Present: Christian Clegg, City Manager Gary Hallen, Assistant City Manager Paul Soldana, Economic Development Director Misty Eaton, Assistant Economic Development Director Julie Drimakis, City Clerk Cecelia Griego, Economic Development Principal Planner Jennifer Byers, Assistant Economic Development Director Monica Medve, Economic Development Planner Juan Heredia, Administrative Analyst (CMO) Anthony Valdez, Assistant to the City Manager Eric Galvan, Communications Coordinator Sara Ortega, Deputy City Clerk 2. PUBLIC STATEMENTS O a. Agenda Item Public Statements None b. Non -Agenda Item Public Statements None 3. ADOPT MAY 23, 2022 AGENDA SUMMARY REPORT Motion by Committee Member Gonzales and seconded by Committee Member Arias for approval of minutes. Motion unanimously approved. 4. REPORTS None 5. DEFERRED BUSINESS A. Discussion and Committee Review of EOA Program-Saldana/Griego City Manager Clegg made opening remarks and introduced Economic Development Director Saldana who then introduced, Principal Planner Griego who provided a PowerPoint presentation on Economic Opportunity Area Program. Principal Planner Griego discussed a background on economic opportunity area within the city. She went on to discuss the vision of Economic Opportunity program and the most recent guidelines which are dated October 20, 2022. The programs main intent to use taxpayer money to improve economic growth throughout the city. There are seven specific geographic areas of Bakersfield that qualify to use these public tax dollars. She then went on to cover EOA areas, eligible areas, ineligible areas, and evaluation criteria. She also discussed the current businesses served and current applications pending. The presentation also included the current impact and before and after photos of how the program was able to assist some local businesses thus far. Principal Planner Griego discussed staff's proposal to create two competitive funding rounds one in the Spring and another in the Fall. Staff is proposing rounds of funding from $25,000 up to $99,999 dollars. Anything over $100,000 may be eligible depending on the investment it will make in the city. She also discussed the proposed annual budget and the timeline for the project. Councilmember Arias had questions regarding the program guidelines and the challenges to the current system. Director Saldana explained the rounds of funding that would allow for a more manageable workflow of each project. The committee went on to discuss the funding allocation far each EOA area and ARPA funding that is a supplemental funding. Councilmember Gonzales gave examples of how these fundings have assisted other businesses and the impact it has made in our city. He discussed the importance of processing applications and creating a competitive process to giving these funds to Special Meeting of the Budget and Finance Committee of the City Council -City of Bakersfield Monday, November 2B. 2022, 1200 p.m. - Page 2 Q applicants. He also brought up marketing these funds to areas that have not utilized funding in their EOA area. ARPA money was discussed and potentially how to divide or allocate the funds between each EOA area. Staff went on to discuss a proactive way to engage with businesses and begin marketing the EOA program. Staff proposed that any guideline changes be brought back to committee in the future to allow some review. Staff discussed doing a more deliberant job on focusing on areas where we have not received applicants for this program. There are needs to adjust this program and move in that direction. The intent of the EOA program is to make an investment and see a reinvestment in our community. Staff asked for feedback and analysis in the next fiscal year to see what the improvements have been in these EOA areas. The committee discussed coming up with a marketing campaign for this project and setting up community meetings in each EOA area. The committee discussed the concerns regarding a lack of applications. The Economic and Community Development staff gave an overview on how they work very closely with applicants to assist with the process. They also discussed the setbacks that potentially hold back applicants from applying. The committee talked about holding open office hours in each individual EOA area to help applicants. The committee asked staff to come up with a plan to offer more assistance to applicants and give more hands-on help with step-by-step process of applying for funds. Committee agreed on coming back with feedback on recommendations for increments, process for adopting guidelines, up front percentage on the funding, making for a more competitive process, looking at loan guarantee program, and clarity on the budget and how it would work or how to divide ARPA funding. B. Discussion and Committee Update on Section 108 Loan- Saldana/Eaton Director Saldana discussed this referral for Council to review Section 108loan program. The funding is taken from grants and utilized to fund different economic and community development projects. It was discussed how the city has used these loans in the past and made payments to payback the loan. The requirements were discussed as well as the amount available to borrow. Staff estimates about 15 million dollars, repayment that will come from our CDBG (Community Development Block Grant) program. There is interest that will be paid on this loan. Also, a loan guarantee fee that is charged by HUD (Housing and Urban Development). 6. NEW BUSINESS None 7. COMMITTEE COMMENTS None 8. ADJOURNMENT Meeting was adjourned at 1:03 p.m. the Budget and Finance Committee of the City Council -City of Bakersfield Monday, November 28, 2022, 12'.00 p.m. - Page 3 fib ANDRAE GONZALES, CHA BUDGET AND FINANCE COMMITTEE ATTEST: n W J LIE DRIMAKIS, MMC CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield Special Meeting of the Budget and Finance Committee of the City Council -City of Bakersfield Monday, November 28, 2022, 12:00 p.m. - Page 4