HomeMy WebLinkAbout08/25/954� ry ,
•
B A K E R S F I E L D
MEMORANDUM
T0: HONORABLE MAYOR AND CITY COUNCI!
FROM: ALAN TANDY, CITY MANAGER
SUBJECT: GENERAL INFORMATION
August 25, 1995
1. There is an upda+e enclosed oh t�e p?rmit Streamlining process. We have
moved ahead on the majority of the items involved.
2. After taking a careful look, v�e are uncomfortable recommending Ar�ceed�ng
with more Police officers under the COPPS AHEAD grant program at this time.
It does not f i t wel l wi th our budget cycl e. �le have the cost f or si x
officers which vrill come due for us to "pick up" three years from now, and
adding more in the same timeframe could impose a very difficult financial
situation at that time. We believe there will be future grant rounds
available, and we will monitor the program for a grant round that fits our
cycle more appropriately. The problem with this one, as a practical
matter, was that we could not use currently budgeted funds as the match
share.
3. There is some information enclosed relative to background and research
being done on a potential creation of redevelopment district. This comes
from Jake Wager's operation.
4. At the request of the Personnel Committee, we had written the hospitals for
a response to the question of the impact of the hospital affiliation on us,
as a large purchaser of health care services. You will find the response
enclased. It is a public relations release.
5. The Brown & Caldwell Study is enclosed. This is the sewer plant evaluation
on expansion. It is lengthy, difficult material. We will get you a
summary in the not-±oo-distant future, along with staff recommendations.
We were not totally happy with this study. However, the end product will
be useable. We are making every effort to hold down costs so as to come in
with reasonable development fees while still meeting the community's sewage
needs in the future.
6. You may recall that the local architects criticized HOK's cost evaluation
' of the stadiums. H(�K's response to their criticism is enclosed for your
information. There is also a�etter from the local architects enclosed
indicating that they would not respond to a request for proposal to be
stadium designers.
7. Th�re �vas a Coun�il ��Guiry r�ecently on the subject of the medians �n White
Lan�. There is a memo �nclosed �n ±t�at subject. 3asica��y, it was a
design flaw from years ago which '�as led to l�i�i�ly unattractive medians.
. - �
,iONORABLE MAYOR AND CITY COUNCIL
August 25, 1995
Page -2-
We are going to be getting some disaster relief money from the storm and
can use some gas tax money to do a capital project to- correct this. We
will be bringing forward such a recomrrrendation soon.
8. You will find a note enclosed indicating that we have issued a URM check.
While we have had a number of different building owners qualify to get into
the monetary pipeline, this is actually the first check dispersed upon
completion of the work. That program has been going slowly, as the
majority of property owners have decided to wait, apparently, to the end of
the five year period to do any modifications to their structures. The Los
Angeles earthquake also interrupted the availabTlity of engineering experts
to assist property owners in designing correctian activities.
9. Some good news! You will find enclosed State Water Conservation Loan
information. We did get the loan to construct the 10 million gallon
reservoir which was the project on the budget cover this year. The project
will be moving ahead in the fairly near term.
10. More good news! We did get the response from the County Counsel's review
of the draft tax split agreement and their suggestions do not appear to be
a significant problem for us. The briefing you will have at your next
Council Meeting on that subject should be based upon the agreement as it is
finally ready for legislative actian by the County and cities.
11. An article recently appeared in Public Issues magazine regarding Trenton,
New Jersey's Waterfront Park stadium. A copy of the article is enclased
for your information.
12. Enclosed is a copy of a letter we recently sent to the residents in the
Panorama bluff area regarding the landfill. A neighborhood meeting has
been scheduled for September 7, 1995, at 7:00 p.m.
13. A memo is enclosed regarding a proposed amendment to the Charter on the
City's layoff policy.
AT.alb
Enclosures
cc: Department Heads
Trudy Slater
Carol Williams
=-'� -- � �
B A K E R S F I E L D
T0:
FROM:
SUBJECT:
MEMORANDUM
` August 18, 1995
ALAN TANDY, CITY MANAGER
JOHN W. STINSON�; ASSISTANT CIT MA AGER
UPDATE ON IMPLEMENTATION OF PERMIT STREAMLINING RECOMMENDATIONS
I have received several updates from departments regarding the implementation of
the recommendations �f the perm�t streamlining task force. 7he following is a
summary of iheir status:
1.
2.
3.
4.
5.
�er usina "de mi�nimis" findin
un
As a res�alt of recent lit�gation at the state level these fees are no
longer collected by the state.
Council consid�r eliminating the second readii
av waitina oeriod nrior to imolementation
ora�nances.
r
rement, and
Some members of th� Task Force were concerned about the time required for
implementation of zone change ordinances, specifically the thirty day
waiting period from the time the ordinance is acted on by the City Council
to when it becomes effective. This waiting period is required by the City
Charter and would require a vote of City voters to be changed. This item
has been referred to the Urban Development for further consideration.
Finance Departmert� staff to continue research and evaluation of using
credit cards to pay for permit and other fees.
The Finance �epartment will cont�nue research into the feasibility of this
option, no immediate action on this it2m.
Staff to change the landscape plan review process to improve the
time. The Parks Division will be the lead a9ency far review.
This has �?r�ady been implemented by staff, and has significantly reduced
the review time by �ublic Works.
�he elimination of review
�lans in order to streaml
the Parlcs Di vi si on i n the ol an revi ew for
This has �lready heen �mplemented 5y staff, the processing time for these
plans 5�s �eQn shor�pnad 5y several weeks.
� �
Update on Permit Streamlining Recommendations - Page 2
6. Public Yorks
processes to
�
te the lot line ad7us�
turn around time on s
e or
1
► waiver
ot line
This recortanendation has already been implemented. Lot line adjustments are
now a priority item and take precedence over parcel map waivers. The
average turn around time for lot line adjustments has been shortened from
over four weeks to about a week and a half since this recormrtendation has
been implemented.
7. Public Works Department to implement a checklist which will encourage the
timely processing of standar� lot line adiustments.
�
A checklist is attached to the application for lot line adjustments that is
given out at the Planning Department. Public Works is reviewing the
process to see if improvements or expansion of the checklist requirements
are warranted.
ons
wou
to identify criteria and establish auidelines for
quire Parcel Maps instead of Parcel Mao Waivers.
Staff has drafted a proposed revision to Section 16 of the Municipal Code
more concisely defining when a parcel map waiver would be allowed. This
ordinance revision is being combined with some other revisions the
Development Services Department is working on which should be coming to the
City Council shortly. In the meantime, Public Works staff has been
operating under the guidelines proposed in the revision when determining
the appropriateness of a parcel map waiver for any proposed land division.
9. Develoament Services
e
tt
E
continue to eva
insaections. code
are
The City Development Services Director has met with the County
Environmental Health Services Director to encourage a more coordinated and
cooperative working relationship. It was agreed that staff ineetings
between the agencies should continue to iron out the details of how we can
improve our service to the public. An internal study of how we might
reorganize or manage those functions should be completed by August 21st,
1995.
10. The Development Services Department to eliminate noise studies for
residential development where there is no evidence of noise impacts.
The department has eliminated the requirement far noise studies for
residential development where there is no evidence of noise or future noise
exposure. Where noise exposure has been evaluated and dealt with by
previous studies of the same noise source to receptor relationship, new
studies are not required.
y=_ �.
Update on Permit Streamlining Recommendations - Page 3
11. The Public Works
C1ty•
evaluate develop�uent of a tiered
The City Council approved the fees for improvement plan checking in April.
The baseline fee for plan checking includes the submittal of two check
prints, and then the original plan is to be submitted for signature. If
the plan requires more than two check print submittals, a penalty of 10% of
the original fee is charged for each additional check print.
12. Develo ent Services De artment to streamline the PCD PUD review rocess.
Final PCD PUD p ans s ou e revi t roug site p an review inste a
the Planning Connrission.
The City Council adopted an ordinance on July 19, 1995 to implement this
recommendation in addition to making the PCD/PUD regulations consistent
with each other and other review processes.
13. Development Services Department and Public Works Depa�tane�rts to publish
The Development Services Department provides an informational packet
containing ordinance requirements and development policies to applicant as
part of the case review process. This change was made as part of the
revised staff report preparation process. The Public Works Department has
published a"Subdivision Design Manual". This manual is available to
engineers and developers and it contains Public Works standards and
policies. The Engineering Division is currently in the process of updating
this manual and is coordinating this activity with other City Departments.
The Water Department has published its "Standards and Specifications for
Domestic Water Systems" which are available at no cost to engineers and
developers who have not already obtained a copy.
14. Ci
cc.
i denti fv and 1 i st
rocess
ts and the time it will
Public Works has provided Engineers with a fee schedule including the
current fees charged for various services. A flyer is being prepared that
will be available at Public Works counters that defines the circumstances
where an encroachment permit is needed and/or when an open street permit is
needed, the time involved, and the application required. The Planning
Department maintains an informational sheet in table form showing the types
of planning permits and the number of days far pracessing. Another
informational sheet identifies application deadlines and corresponding
hearing dates, and is available to the public at the planning permit
counter. At the time of application the applicant is informed when the
case will be heard.
Streamlining Task Force Members
City Department Heads
�
�
TO:
FROM:
SUBJECT:
•
B A K E R S F I E L D
Economic and Community Development Department
M E M O R A N D U M
Jake Wager, Economic Development Director
Donna Barnes, Development Associat��j
AU6 2 I I99�
,., , .
=��{ . .�f <<i ,• �
�. �ti_ . .
August 17, 1995
Acreage in Potential Southeast Bakersfield Redevelopment Project Area
The total acreage for the potential southeast Bakersfield redevelopment project area is
approximately 3,170 acres. Acreage is broken down into four general zoning classifications
including residential, commercial, industrial and public land. The acreage is the following:
Residential acreage
Commercial acreage
Industrial acreage
Public acreage
Total acreage
1,320
350
1,300
200
3,170
�� — �
�o������—
42%
11%
41%
6%
100%
�t :�. ,� - - � a . :,
�S • ��s( ���t C,�-� �� •
�
-�� �� ��� �� � �
� �����- � � �tn�z� ��
�.��c�-�r-'� d� - 3 �' � c�� � � �
� �� �s���;�. �. � c ss
U�C a-�'`� �=�— ( � � �l ��"A-t. n1 ,A� i ���"
� � fl�o � � � c� �- o� �A�1
�� � �Z�N < <� � s� D�sr
_
�
e
TO:
FROM:
SUBJECT:
•
B A K E R S F I E L D
Economic and Community Development Department
M E M O R A N D U M
Jake Wager, Economic Development Director
Donna Barnes, Development Associate��
Acreage in Potential Baker Street Redevelopment Project Area
August 17, 1995
The total acreage for the potential Baker Street redevelopment project area is approximately 484
acres. Acreage is broken down into three general zoning classifications including residential,
commercial, and industrial land. The acreage is the following:
Residential acreage
Commercial acreage
Industrial acreage
Total acreage
demond.acr
132
,.i
..
.
, ;,
.
.'.
13%
59%
100%
-- =v
. �
B A K E R S F I E L D
Economic and Community Development Department
M E M O R A N D U M
August 11, 1995
TO: Jake Wager, Economic Development Director
FROM: Donna Barnes, Development Associate��
SUBJECT: Redevelopment:
1. AB 1290 Increment Requirements
2. Local Governance of Redevelopment
1. AB 1290 Increment Rec�uirements
Prior to January l, 1994 redevelopment agencies were required to notify affected taxing entities of
the intent to establish a redevelopment project area. If as a result of the fiscal review a conclusion
was reached that the redevelopment plan would cause fiscal burden then the redevelopment agency
would negotiate separately with each taxing entity as to what portion of the tax increment they would
receive.
The affected taxing entities were then authorized to call for the formation of fiscal review
committees and negotiate agreements under which redevelopment agencies could pay a taxing entity
a portion of tax increment to alleviate a financial burden or detriment caused by the establishment
of a project area. In addition to any negotiated tax increment agreement, affected taxing entities
were also given the right to receive their share of revenues produced by the 2 percent inflation
adjustment to the base year assessed value allowed by Proposition 13.
AB 1290 eliminates fiscal review committees, negotiated agreements and the 2 percent payments.
Instead, it directs agencies to pay affected taxing entities specified amounts at specific times during
the life of the plan. Agencies are still required to consult with each taxing entity, but tax sharing
negotiations are not a part of the process. Payments are allocated among the taxing entities in
proportion to the percentage share of the property taxes each affected taxing entity receives during
the fiscal year the funds are allocated. (In other wards, if the percentage shares of the taxing entities
are changed in any given year, the payments are adjusted in accordance with the changes in
percentage.)
6
!41
The amounts to be paid to the affected taxing entities, except basic aid school districts, are as
follows:
• From the first fiscal year in which the agency receives tax increment until the last fiscal
year in which the agency receives increments, 25 percent of the tax increment received by
the agency after deducting the amount required to be deposited into the Low and Moderate
Income Housing Fund (20 percent).
Years 1 - 10
■ Housing Setaside
� Affected Taxing Agencies
■ Redevelopment Agency
100%
• From the eleventh fiscal year in which the agency receives tax increment until the last
fiscal year in which the agency receives tax increments ( in addition to the amount paid under
the preceding paragraph, and after deducting the amount allocated to the Low and Moderate
Housing Fund), 21 percent of the portion of tax increments received by the agency, which
is calculated by applying the tax rate against the amount of assessed adjusted base year
�
assessed value. The first adjusted base year assessed value is the value of the project area
in the tenth fiscal year in which the agency receives tax increment.
Years 11 - 30
■ Housing Setaside
� Affected Taxing Agencies
� Affected Taxing Agencies
Redevelopment Agency
� oo�io
• From the thirty-first year in which the agency receives tax increments until the last fiscal
year in which it receives increments (in addition to the amounts paid under the preceding two
paragraphs and after deducting the amount allocated to the Low and Moderate Income
Housing Fund), 14 percent of the portion of tax increments the agency receives, which is
calculated by applying the tax rate against the amount of assessed value by which the current
year assessed value exceeds the second adjusted base year value. The second adjusted base
year assessed value is the value of the project area in the thirtieth fiscal year in which the
agency receives tax increment.
Years 30 - ?
� Housing Setaside
� Affected Taxing Agencies
� Affected Taxing Agencies
. Redevelopment Agency
� oo�io
The additional payments which begin in the eleventh and thirty-first years described above are
calculated using the assesseii value in years ten and thirty that the payments are scheduled to begin.
This is so that the amount of tax increment received by an agency and available for its use is not
lower than the amount received during the prior year. The mechanism should assist agencies in
selling bonds.
The community which adopted the redevelopment plan may elect to receive an amount equal to 25
percent of the tax increments received by the agency in any fiscal year that the agency receives tax
increment. However, the community is not entitled to share in the two increases paid to other
affected taxing entities commencing in the l lth and 31 st fiscal years. If the community elects not
to receive this payment, the funds not allocated to the community are allocated to the agency and not
the other taxing entities.
The agency's Housing Fund set-aside obligation remains equal to 20% of the gross tax increment
revenue allocated to the agency, and is not affected by the AB 1290 statutory pass-through payments.
Thus each year the agency receives tax increment, the agency must pay the affected taxing entities
25% of the net tax increment. In addition to this payment, beginning in the eleventh fiscal year that
the agency receives tax increment and continuing so long as the agency receives tax increment, the
agency is required to pay affected taxing agencies 21 percent of the net tax increment generated by
increases in the project area assessed value. In addition to these payments, beginning in the thirty-
first fiscal year that the agency receives tax increment and continuing so long as the agency receives
0
7 .�.
tax increment, the agency will be required to pay the affected taxing agencies 14 percent of the net
tax increment generated by increases in the project area assessed value.
An agency may subordinate its payments to the taxing entities to loans, bonds or other indebtedness
(except loans or advances from the community) upon obtaining the approval of the affected taxing
entities. The agency must provide the taxing entity with substantial evidence that it will have
sufficient funds to pay both the debt service and the amount required to be paid to the taxing entity.
Shobi Khan of the firm Katz Hollis said that due to the adoption of AB 1290 it was believed that the
creation, amendment or merger of redevelopment project areas would slow down. However, a slow
down has not occurred and, instead, project area activities have increased. The firm is currently
working on redevelopment project areas in Sacramento, San Bernardino, Seaside, Redding,
Halfmoon Bay, Commerce, Los Angeles, and Ventura.
According to Mr. Khan, reactions from affected taxing entities to the AB 1290 tax sharing
apportionment has been neutral, because the formula is set and there are no negotiations. He
recommends maintaining a good relationship with the taxing entities and keeping them apprised of
the project adoption process. His suggestion was to get taxing entities involved early in the process
and to provide as much information as necessary concerning the agency's plans for the
redevelopment proj ect.
We surveyed several California redevelopment agencies about their experiences with the new
AB 1290 tax sharing formula. Comments received varied from the project areas being too new and
not having collected enough tax increment to get an accurate reaction from the tax entities; to the
process went very smoothly since there was nothing to negotiate; and suggestions to establish a
positive relationship with taxing entities to promote favorable alliances. ,
2. Local Governance of Redevelo�ment
The second part of this memo includes the legal structure of redevelopment agencies in California.
According to Dave DeRoos, California Redevelopment Association, California Community
Redevelopment Law authorizes two variations of a redevelopment agency. The city council can
serve as the agency or the mayor may appoint resident electors as members of the agency. The
councilmember type of agency is the most common. Mr. DeRoos said that very few agencies use
the mayoral appointment agency, such as the CDDA, and that these are usually found only in larger
cities. He also indicated that this type of agency can be organized in various ways but he did not
have any examples. He added that mayoral agencies are being phased out because their limited
powers require the city council to take action on particular redevelopment issues creating duplicate
meetings.
E
f' '
The City of San Diego has a very different way of practicing redevelopment. The city council acts
as the redevelopment agency, but also has three separate public non-profit corporations each with
their own board of directors. These act as advisory boards to the redevelopment agency. Board
members are appointed by the city council, but the redevelopment agency approves all DDA's,
OPA's, eminent domain, etc.
The three non-profit corporations operate seven of the twelve redevelopment project areas in San
Diego. City staff operates the other five project areas. Each corporation's budget is approved by the
redevelopment agency but each corporation operates independently and appoints their own staff.
This system was initiated to sidestep the Civil Service Commission and to pay higher salaries to
attract more qualified staff. History has shown that these separate boards are very expensive to
operate and create much duplication due to each corporation acting independently. The corporations
are funded by tax increment, block grant funds and loans, but the City gives them the upfront monies
to get started.
The first non-profit formed was the City Centre Development Corporation (CCDC). When first
initiated the City of San Diego had lots of money to help get them started. The board of directors
was comprised of heads of corporate businesses located in the downtown. The corporation was very
successful in establishing a good relationship with the mayor and city council. This board developed
a good reputation and has had many successes.
The other two boards have not shared such success. These two boards have gone off on their own
and have not developed a good relationship with the council and mayor. The boards have downtown
residents on them which has diluted their direction and emphasis. Unless a city has the money to
spend, the non-profit corporation approach is not recommended by the City of San Diego staff.
In conclusion, it appears that while taxing entities may not agree with AB 1290 tax apportionment,
statutory pass-throughs do not allow for negotiations. Taxing entities are entitled to only to their
designated percentage of generated tax increment. Developing a positive relationship with the taxing
entities was emphasized as an important aspect of creating a new project area.
red.jake
0
F � �
B A K E R S F I E L D
MEMOR�4NDUM
August 24, 1995
T0: ALAN TANDY, CITY MANAGER
FROM: JOHN W. STINSON", ASSISTANT CITY MANAGER
SUBJECT: MERCY/MEMORIAL HOSPITAL AFFILIATION
At the request of the Personnel Committee I recently sent letters to both Mercy
and Memorial Hospital Administrators requesting additional information regarding
the proposed affiliation. Attached are the initial responses from both
hospitals. They both included copies of Lhe recent insert which appeared in the
Bakersf i el d Cal i forn i an whi ch i s a spe�i al repart on the aff i 1 i ati on and was
recently provided to the City �ouncil.
The some of the responses to the questions included in my letter are included in
the special report. However, both letters are vague when addressing specifics
about cost savings and service delivery issues. They both state that much of the
detail can't be discussed due to Federal Antitrust requirements. Mercy states
that they would be available to meet with the Personnel Committee if we want to
schedule a meeting.
I have met with Russell Bigler of Self Insured Schools of Kern (SISK) and Alyssa
Stone of the County Administrative Office regarding this matter. Mr. Bigler
indicated that he was contacted by Mr. Roark of the Federal Trade Commission
regarding the Affiliation. Mr. Bigler said he could see the potential for
administrative and capital cost savings through the affiliation however, there
was not enough }nformation as to how or if the savings would benefit the
community or local health care consumers. Ms. Stone indicated that the Board of
Supervisors had referred the matter to staff for review but no specific action
had been taken.
I spoke with Alan Krauter an Analyst in the County Administrative Office today
and he indicated that a report is expected to go ta the Board of Supervisors on
September 5th from Joel Heinrichs regarding this matter. He indicated that the
Administrative Office still has concerns regarding maintaining competitive health
care rates, however, the confidential nature of the affiliation proposal makes
it difficult for anyone other than the Federal Trade Commission to perform a
detailed analysis.
Since there is little information available regarding the details and of the
proposed affi�iation and any potential impacts, I believe it will be difficult
to present any specific concerns to the Federal Trade Commission. I share the
County's general concern about competition, however there is not sufficient
information available to identify how the City would be impacted.
Based on the information obtained, it could be helpful to have the Committee meet
with the representatives from Mercy and Memarial. However, i'm not sure they
will provide mush more information than we have alr�ady received. Please let me
know �ow you would �i�e me to �roceed.
.,
� � Bakersfield Memorial Hospital
ACCREDItED BV THE JOINT COMMISSION ON ACCREDITATION OF HEALTHCARE ORGANIZATIONS
Mailing Address: P.O. Box 1888 / Bakersfield, CA 93303-1888
420 34th Street / Telephone (805) 327-1792
August 11, 1995
Mr. John W. Stinson
Assistant City Manager
City of Bakersfield
City Manager's Office
1501 Truxtun Avenue
Bakersfield, CA 93301
Dear Mr. Stinson:
C. larty Can. Prealdsnt
Board of Direefon:
Gordon K. Fostet Chalrman
Joel D. Mack. M.D., Vlce Chairman
Edward H. Shuler, Secretary-Treasurer
Charles S. Ashmore. M.D.
John M. Brock, Jr.
C.Larry Can
Stephen L Clifford
John R. Findley, M.D.
Thomas W. Smlth
� � n� tc_ . ...,�..�u�^� ��,,,..0 ,
�..d..........�.'_...--_..`�..__ _—_
�
{ 1
� ¢ AUG 1 419�
�
� �-�.� =u_v..= �_� ,
i
`; i..: � �'' f+iva-,e�`;i:'+_E� ;�.�.;';'3 5��€°. .
I am in receipt of your recent letter requesting information regarding the Community
Affiliation between Bakersfield Memorial Hospital and Mercy Healthcare Bakersfield.
I am enclosing a special report that was distributed in the Bakersfield Californian on
Friday, August 11, 1995, which will answer most of the questions contained in your letter.
The definitive Affiliation Agreement between the two facilities, which is still being
negotiated, contains a mechanism that will provide answers to other questions,
specifically�those related to.capital savin s, im act�o�secn to. e.es a�c� ' �' _,
9 P . ., P _Y: . .�� .,.-����„��I����"�`.��y :- :
services. The Affiliation Agreement contains provision for an Integration Planning
Committee, which will be comprised of an equal number of representatives from both
organizations, will study these questions and provide recommendations and suggestions
to both hospital's management and boards. Unfortunately, these questions cannot be
addressed prior to the Affiliation Agreement being signed because to do so at this time
would be in violation of the Federal Antitrust Statutes. One of the very basic reasons
for developing the affiliation is to be able to discuss these types of issues between the
two facilities without breaking the law.
To my knowledge the Federal Trade Commission is the only government agency that is
responsible for approval or disapproval of the affiliation transaction. All of the
information requested by this body has been submitted and we are currently awaiting their
response.
I think that you can conclude after reading the enclosed document that representatives
of the health insurance industry are very comfortable with the concept of affiliation
between Bakersfield Memorial Hospital and Mercy Healthcare Bakersfield. I want to
V�'�'A • Affiliate of Voluntary Hospitals of America, Inc.°
Mr. John W. Stinson
August 11, 1995 Page 2
emphasize that this is in no way a merger. Both Bakersfield Memorial Hospital and Mercy
Healthcare Bakersfield will retain their own assets, their own management, their own
employees, their own governing boards and their own liabilities. There will be cross
governance with representatives elected from each board to the other board and there will
be a great deal of integration at the strategic planning level. This is, however, a true
affiliation and not a merger.
I hope that. you will conclude that the affiliation is in the best interest of the citizens
of Bakersfield, to all major employers in the community and will result in a better, more
integrated healthcare delivery system in our community. Our only goal, as not-for-profit
facilities, is to provide the broadest range of high quality services to our citizens at
the lowest possible price.
If you have questions, please do not hesitate to call on me.
Sincerely,
.
C. Larry C rr
President
�.
Enclosure ai . �
, .. '. $�'e.. "i . . . . � . , `,;`i<:. . . ' , . . . '"�.��i�E :f .- , . `,i'�` M.�.�w;��F'!'�rdSf9, t�:z:fv� ��4,...'1',7�'� .n�;t �
Mercy Healthcare �akersfield
A Division of Cacholic Fiealthcare West
August 18, 1995
Mr. John W. Stinson
Assistant City Manager
City of Bakersfeld
1501 Truxtun Avenue
Bakersfield, CA 93301
Dear Mr. Stinson:
I enjoyed the opportunity to get acquainted on the phone this week. In the absence of our President,
Bernie Herman, I am responding to your request for information regarding the affiliation between
Mercy Healthcare Bakersfield and Bakersfield Memorial Hospital.
As we discussed on the phone, the special report that was distributed in The Bakersfield Californian
addresses many of the questions in your letter. I have enclosed an extra copy for your review. As
summarized in this report, we have received support for the affiliation from most major health
insurance providers. It may be of particular interest to the City of Bakersfield that we have received
written support of the a�liation from your current health insurance company, Blue Cross
(Wellpoint).
Unfortunately, due to restrictions placed upon us by antitrust statutes, we are not presently able to
share sufficient information with Memorial Hospital to be able to develop detailed plans for how cost
and capital spending savings might be accomplished or for what specific impacts there may be on
employees. The Affiliation Agreement being developed between our two organizations provides for
an Integration Planning Committee. This group will be comprised of representatives from each of
our organizations and will recommend integration plans to both organizations' management and
Boards of Directors. This committee should be able to begin its work shortly after the completion
of the review of this affiliation by the Federal Trade Commission, the agency responsible for
reviewing this transaction's potential effect on competition in our area.
If after reviewing the enclosed material you have additional questions, we would be pleased to have
the opportunity to meet with you and/or your Personnel Committee and discuss your questions or
concerns. Please call Bernie Herman or me if you would like to schedule a meeting.
Sincerely,
���
Doug Clar �
Y
Chief Financial Officer
DC:jmh
Enclosure
Mercy Iiospital
2215 Tru�ctun Avenue
Bakersfield, CA 93301
(805) 632-5000
cc: C. Larry Carr
Bernard J. Herman
Metcy Southwest Hospital Frlends of Mercy
400 Old River Road 2103 Truxtun Avenue
Bakersfield, CA 93311 Bakersfield, CA 93301
<805) 663-6000 (805) 632-5683
Bob Price
Alan Tandy
Metcy Child Care Services
2301 Ashe Road
Bakersfield, CA 93309
(805) 832-8300
���
�
Mercy Home Care Setvices
P.O. Box 1499
Bakersfield, CA 93311
C805) 663�r400
� �`�:. - - — - - -- _. ... . ._. .
O
° He�l�uth, Obata & Kassabaum, Inc.
Architecture, Englnaaring, intarinrv, Ptanning,
GraDhics� Consultin�
August 21, 1995
Mr. Alan Tandy
Ciry Manager
CTI'Y OF BAKERSFIELD
1501 Truxtun Avenue
Balcers�eid. C:A 9�3A9
RE: BAKERSFIP.LD BASEBALL
HOK Project No. 95-160-27
Dear Alan:
323 West 8th Street, 5uite 700
Kensas City Misaouri 84105-1500
Telephone: 818 22] 1576 Fax: 818 221 1578
At the request oP Raul Rojas, we have read the recent newspaper editorial by Bruce
Keith and offer the following commencs and rebuttal:
2. Mr. Keith assumes that the high water table will only influence the structural
syscem component of the stadium cost, That is wr�ng. This sm211 difference
has a significant impact on more than just the structural system. The water
table also impacts the excavation and recompaction of soils on site, trenching
for utilities, and preparation of the subgrade for the playing field.
2. The issue of a water featurc being ignored to save money on imported soil is
partialty conect. First, we were not directed to design and ptice a water
feature. We showed the feature on our site plan as our recommended location
if one were to be included. Second, it doesn't seem to make sense to spend
monoy on a foaturo �n order to save rt�onay an tha harii�. Pi�,�lly, tL� .:��t �v
import the soil is relatively insignificant—approximately $100.000.
3. Mr. Keith indicates that the estimate @oes not i�nclude Progress Road.
Unfortunately, he did not k�ave all of the backup material rcgarding this
91lb�CCt. Tha ca�t eStii»att d�s i,�ulu�c ���1 C�li,��alC� fur irnprovements to
�osford Road, Paaama Lane, and Pr�gregg Rn�d,
4. The Balcersfield Action Tea.m's vision was not ignored in the report. Also,
we take exeeption to our report being politically directed. T'he facility
13l'vg�a�,� ���1;��1�� 11,C nbilily lu hu�l recreativnal soccer, fooiball, and other
cultural activities ot� the field. There was a decision to preclude competitive
Snr.r,Pr Anci f�otb�ll fram using the field estrly in the Etudy. Theae vonuos
could be accommodated on ttae field, but the size of the playing field, the
number of locker rooms, and the cost of operations for the facility would all
increase.
5. The site plans do not exhibit an arrogance of the California League for not
allowing other venues. They exhibit the direction to the design team from the
City of Bakersfield and the Bakersfield Blaz�. We indicated in our r�port tl�at
thie diraction (aompatitivo 00000r) would requirc t�adifieatiai� af �u�
proposed design, yct it can be accommodated if everyone accepts the
rami�cations. See Page 11 of the report.
Ofl°iCP4 in,
New York • Waehing�on, D.0 • CtS�.mvi11�,9C � Atlanf� . Tampo/Orinndn • 51. Lnu1s • De{lee • Hounen • Mexiao dty . Koq1Re (i, ty• 8an Franeiaca • Lor Anqplqp • Tnkyo r krmg Snng � RnNn � Inndnn
�'« AUG 23 '95 11�49AM HOK
=` P.2i2
O
Mr. A1an Tandy
CITY OF BAKERSH"IELD
All�llRr Z�, 1�95
Page Two
6. We cannot adequately address whether the facility should be an "infill" project
ot a"suburban" project. That is usually determined by land cost, land
availabiliry, and market demographics. Whxle the Metro site may be in the
geogra�hical center of Bakersfield, the Blaze have indicated that their surveys
point to the Southwest site as being closest to their matket segment. This
would seem to indicate that travel distances, wear and tear on roads, and air
pollution could actually be less if the Southwest site is used, because it is
closer to their fan base.
We would think that the increased population growth in the Southwest would
xequire new recreadonal ac�eas in addidon to those being provided at the Metro
site, A grvwing city needs to expand its recreational resources. Why can't
bvth sites be utilized7
7. The last paragraph insinuates that HOK has not provided a properly designed
stadium for the Metro site. The facility designed and priced in the study is
compazable to others designed by HOK. We r�ecognized the fact that the costs
for each site are preliminary in nature and can� be reduced as part of the design
development procesa. Iiowever, the sttuctural differences between each site
will not allow the cost at the Metro site to equal the Southwest sxte unless the
assumpticros for developing the Metro site are proven wrong. Before th�
Metra sit� is to va s�eiou�ly cu���iclCrcd, xll project cvsts must be considered.
The�e inclnde relcx:Rtion costs for existing tenants, construction costs for the
existing tetlants' new facilities, improvements to Chester Avenue, other traffic
improvements, and verification of utility capacities in Chester.
When we assumed the task of doing this study. we did not realize that it would come
down to a beauty pageat�t. The City and County need to sit down and decide which
sitc is in the best interest of the region, its recreation�) progratns, and profeeeional
baseball. Then both parties should look for creative ways to fund the project and
�xoativc wavs ta nduce tl�e c�st af tl�� prqj�:t, Tu w��c a war ►iver which ritF i5 hr,st
will only destroy the opportunity that is before you. Negative campaigning and
�,uLlic;ly will ruici whal wulc� bc a lremendous communlry ass��.
We trust that this information wili help you proceed with this important project.
Sincerely,
r''
�� �
Thomas L. Ti le, A�
Senior Associate
Sports Facilities Group
TLT/dld
...; .
. - - _ ,
" ' r f . . - . ` ,�.
v. , _ , ., �
• . � • , . , . . . . . . . .
,
_ � _ _ ,�
.
�,
_
t, h
, .
. . . . . . . 4 . . . . � . .
, -. . . ' .. . . . ' . . _ � . . .. ' �' . . � .. - -..
�. '
� .- .. .. . . ,' �� - .' _ . ..
. . . �.. -. y. . . i - . . . ,. .
. . . . ' . � - . . -
: .
. _.
�
_ �. . . . �i \ . ' . .. : " . .
. -.i. . ' .. . . .. � .� . � .( � ' ' � ' �
� �
.
�
a,
K _ .
�
. . .' . � , ' - . - _
. . . • _ . ' ' _ .. .. �. � � _ . . . ' _ .. , (.
. = : _ , r- � �a, ucF E: ,FiT� , � , . __ ,
. _ . _ _ . ,. � . K. , _ �, _ .
_ _ < ' - _,- ' .. ,�� R :c �a� �i T:. E e:.T , - �_. p�_23,1995
t � `� �� � __.�.�.�
. .
: ,
.
,, _
, „ . , . ��
.
. '
. .
� .: _ _ .
.
.:
_.. , . �. _ � -
. . .. .. ,.. � _
�, . .
I � �� �'r�sv����'� ��`P�
. .,. << .-:� * 1 _ .
, ,
,... . . � .
. .
N
eu��!'�t- ��., =1a�S- . ' ` _ .. - '- - ,.- ,, ,
. , � _ ,{_ . - .
, � . � ..
. .
.
_ _. ,
. .
. . . . .
�, . .
- .
_
. ,
,
� .r � . e � .fi.,.� . r. � '� �a P � . _ � � ,
_ -� ,... M. .:I�n.,,T�.n_,., .,�t} -M�n. �_r . . . . _
' �!`Tv nF �:�,KFa�F:i F�ri � � _ . �
����1 TY'iivt�ir► e.,Pn��e, �=t@ ���� �
t
', B�ker�f�el�, Ce ���01. ,
. , , �gn�: . �?�-,����.,z ��d=1R�,f1� Fex . `- £ . _ . - .
. �_ . . , ,
.
. , •
. _
.
,_ .
. _
, ,
. ,
K' . ' .,.;. �� . , . � � . . _� r,.
- , . P.Fn iF�T , Mu?��, ��_�e�P �`�'�a..L�:2�� c'fl.�t�'ij/" _ ,.
�
,
.
-,� �.�� '•_ . .' .� . � - . .
_ w.w.� n-n' � _ —• _ .
. . . . ' -fi i� .�4�:�-�..' - .:.t_.t..�.' -'���r' ' .. ._ .. � . r , . -
- . , � . .. . -. - . . , ., . -
. .
. . . . . , . . . . . .. - . . . . . �i � .
. . . . . ,. . . � .
. .
.... � . . � . . o. . . .
- ,.. ,
. . ^ . . .. . . . . �
. .
. . . . . . , _ . . .. . . '
7 � � • - � � � „ � f ' _ ; . . ' ' . . . . , . . .. . . . _ . ..
- , �F+:3r Mr. T�a„CIG��t' � - . , _ , -
, � , a:
_ ' . . ' . . . , , .
�. . ,.
. � . ..�
• •.
.
.
.. , . . , . ;
. . . � , o. � . '" , l . . . � . . .. - .. �� ,
. . . . , , . . . . . . . . t .
.
.
i . . ( . � . . . . � . .
' ' . ��..�m-',fn]��y.rj.n� ii O!'? t4N^ L�!"�`7@,C' �:%er.�3�-' Pry Aa+ }'e A P \/ -
. . - . .�:. li"`1��'".`s"' 7. � .��/.
.C!"2�'la!T?; ��)tg-�L'��.7:?• s.a.f1�-.OYIP' ;��/ rr��/�Pj,f .;t�at.'-h�,a..u� ".��..'r�'�'+�a..C'el'lt}j/ cl i�,n,�,n,Pri, .
" i!.G�!!:r' [?'! 1 f! L� • � . ' _ ' �
� , �P.``W^��-,L'�� �.1i�e �' �'rJ�)!; ef thP� f 1C1:�T f�n°t'l�1Cl,,n, ,�iimhar= ��n�,,,� ''�
�.^� : �'r°seC1,fP� ..to the Cit�r �(„`.nil�'1�.7�� 4�lQ!^k�hep, in ���7tinr2� wa ,w�ii�tj,.
� �;,'� �.�;k.e _±� re���A�± i�ore.�etai:led .i.riforrr.?t.l^C!'�CG+:'1rPt"Cljt1,-n,, �F-;.{: .
earthWork `��c� �n HOK's: �rp�or.t: � �pPc�f-ic�] 1y%�,:' .�e wre ' 3n�;e'rPs�e� ���
! 1-!l' f'�'l;��1,!^•.:8:�'iim�n:t7^C?�� �UC11t. �^�t� 8!1� Q���$C1±1t1�" ��:,,'d��. wnr_It1n�. '
.. , , Witf1`.'±f1P ohP 'Kern���our:t_y'S. ,�3!",-ry�?�+- �'r.�± `m��t- e,yrer''ie'n�e� Fa�"-t!lwnrlc , ;
_. , -
..
. . . . , e� ' . - . . . � . . .
�c•_ .
,
� � � 1'�. _ .-� . I F'�P �� . . �i+ . _. . .
�Q P��fIY^QM.Qf.• .� d' .
r. 7 �
n , _t.. .
, ..o"ntr_acte. _o Gn.._r.:t�n� th.. . �....__.�_ ,_,..00,�..Q .ce_„ .
- � - ,
- � � - PI^ P .''-1.� /1` 1�. �e!'e� �.t•� �-.p..' j+_p.. .. . .
. . . ,C�,1:ff,...,�CIC�ei� �_'�.. !"-E...s-te -theMa__7,� .� �i. � r.a nn�nn �
. . , t n..., we :-know., e�. a.
..
. RR
I, . .. } _ , _ / �/ " �/ . . .
--e ,�r;e: id_, When 't�he��s�� ter.ia-l� .i.� r__�c+, ,�: c��l_l nd. �e. -�� 1.1 ___i�.. 't� :
-,� .. 'F`. V.� P. % '�i c� PA 1/� Q q s P`A P� A. ., _.
� ��;0l,;lr.c Of f 7 CP t^':`�' 7�Gk. 1 t= -.�-�'r^� , , ` '
- �
�- , - - - -
,: .
. . ,. . , . _ �
, . � . . s. ' . - - '� _ � .
� • �"�37.C2f?TC17!'1,ry,',Q!!C';���va,�}�,u+� rnij-;t �f u.1ew��.,'�ye,g�:a�in 'a�S.E;�C't
, . _ .. . . , _ � � ;. �
• ' ,thaf wP wi] j .��nf '!"�'Sr�!-lrl. ±'(,).� (:P�ttlPe�}'.-Fr1Y`- �t"/1!'�f1�':a�c''y�rI1F+�=i -fir�anrinn,.�"
. , � J I
1� 1�"! ��?r'@ SC?ri, t�-1£ j[11rnr`d-ant �,n,rn�er�'��nuc.g`,fG.rwgr�l � IAI'c� arr�' --
F _. - .--F ;�- -- - ` , _ � - - : - . ,
a ���t lnrar' ArC.j�;`2i�g�+�.yrnr�r.ln�- �n .�,aij^��ai;r; thA� v��.Zn,r^�.:a!";' tPnr�?.^.�L!^?.
. nf. ("��l���r .,R,t"7C?�3��Si�?!^�f?_a�rl AC�•Z.�n: Tc�arr; arlr�l.,: �`1�re �in�� wa:::a!^�E .-� �, � _ :
�, `' wnrkir�� ,'t'pwar�. �nm��ir2�.t�i,`�iPttarmarli- . . , I
, - ..
.
•,
_
. .. . �, . . _ . ,
1 !'� r A 1 �i; .
, , � �
-- , , _ . , . _ - .
' , _ : , . _ - -. , >`, , _'. .. � .
`, , r�r KAi h, � • , _ ,.
_ ' _ � P.r�hit��t - � . - �.� ` '
�
._
. : : .. . .. .. . :. -. ..r• - � . .. � .. ,
, /-; . . .." . .f . .. . . _ . , .. t� I
. c� Ms��or :Bo�� Rr�ice:"/Fpx• g23-37g� ; _ , ,
. � ,. ,
. . _ -
. .
�,. , ._ , . _
. , _. _
� ,
_ . .
_ ,
� . .
. .
, , .Ra;%. t�qt�on/Fnx .��.?�.-.jc�aa, : .
. ,. . - , ��, _ � - - _ ".
_ , � `` r:�cAa �r".,��t_.,:�,.7:1£r: � ' • - .
. . -: i.�^.. �.........i"9 . •r � . . - . . , .
A� , . . , . . . . ' , -, . . -
. � . . � • ` . ' ... . .. ' . r� , . . � . .. . . �� . � � . , . .
, _
. .
. . _ . . � . . . . . .
. ,
. . � -
. - . T
�.
_ . . . . . . .. . . . . . _ . ,
�
.
. . . ,
.
, '
.. . . . . , . . . .
. . ,
, � .' � . ' .� .. . . - . . . _. . . _ . . _ . ' '
. . . .. . � _ y , - � , ' . . . � . .r� . - , _ ...'.. o t ' ., � -
- ;1�820 BRUNDAGE LANE, STE C • : �BAKERSFIELD, CA 933'04 � (805) 322 2061� FAX,322,2062 : ` � .
,. . , , . .. . .
. . _.. , : _ � . � - - -
, ,
. , . _.. - - �� ; . . . ,: ,
�-,.:
ME�VIORANDUM
TO Alan Tandy, City
FROM Leland Andersen,
SUBJECT Council Referral
Pin Oak Blvd.)
DATE ' August 23, 1995
Manager
Community Services
#15223 (White Lane
Manager "�
Medians, West of
On August 9, 1995,� Councilmember McDermott referred the above item
to the Community Services Department . He requested staf f to provide
an explanation on the condition of landscaping on the medians of
White Lane, west of. Pin Oak Park Blvd. The landscaping has
deteriorated and some background information is necessary.
The Campus Park area was developed by Tenneco Realty Development in
the early 1980s. During development, Tenneco� incorporated a
"California native, drought tolerant" landscape theme. The Parks
Division had some concerns with landscape materials but agreed to
implement their design.
After installation it became apparent that their landscape design
and choice of plant material did not meet approval with the public,
and as result many negative comments were received. The City and
Tenneco met and agreed to re-landscape the interior streets in the
Campus Park area with conventional shrubbery. At the same time
medians on White Lane were also re-landscaped with its current
gazania ground cover. Re-landscaping on interior streets were well
accepted but the gazania on White Lane continued to cause
maintenance problems which prompted complaints from the public.
In the late 1980s funds were allocated to begin replacement of the
median island landscaping. The first phase was completed between
Gosford Road and Pin Oak Blvd. ,It consisted of stamped concrete
with turf, new trees and shrubs and met with public approval. In an
effort to complete the re-landscaping project, funds were requested
over the past several years, however; because of other priority
projects, funding has been unavailable.
�
;: ,.
Council Referral #15223
August 23, 1995
Based on current figures, we estimate it will cost approximately
$80,000 to complete the project. We have been advised by Public
Works that a street resurfacing project for White Lane is included
within the current budget and scheduled for the spring of 1996. It
would be our recommendation to complete the re-landscaping prior to
resurfacing.
Public Works has indicated fund balances from other improvement
projects qualify and could be made available for the re-
landscaping. Staff will be requesting Council appropriation of
available funding in the near future.
If funds become available, it is
residents in the area be informed
signage placed on the median.
our recommendation that the
of the re-landscaping through
cc: Frank Fabbri, Parks Superintendent
Allen Abe, Assistant Parks Superintendent
Mike Doyle, Parks Supervisor II
���
FROM:
•
B A K E R S F I E L D
Economic and Community Development Department
M E M O R A N D U M
August 21, 1995
�
Alan Tandy, City Manager
Jake Wager, Economic Development Director
SUBJECT: Issuing URM Check
The first reimbursement check under the URM Incentive Program has been issued. 'The check
for $4,744.62 was issued to Paul Dennis, property owner of 801 18th Street, for completing the
retrofit of his property. Mr. Dennis' reimbursement include fees paid for building analysis,
engineering reports and inspections, and building permits.
We anticipate several other applicants are nearing completion of their projects and will be
requesting reimbursement soon.
cc: Dennis Fidler
Jack Leonard
Mike Quon
a:tandy.ckl
AUG 2 31995
r < .
F .:
�L _ _ _�L � � : � %
BA
� pF J,coaeoa,�� �s�lC�
�
u
�+ �i�r ug'♦
�1F 0
TO: Alan Tandy, City Manager �
FROM: Gene Bogart, Water Resources Man ger
SUBJECT: STATE D.W.R. WATER CONSERVATION LOAN
August 22, 1995
Good news! Attached is letter from the State Department of Water Resources
notifying us that the City has qualified for the loan of $3,000,000 needed to complete the
funding for the 10,000,000 gallon Interface Storage Reservoir. As you know, the City
Council authorized our original application in June of 1994 for funds available under the
"California Water Conservation and Water Quality Bond Law of 1988" for major water
saving projects.
This project will enable the City to extract and regulate high quality Kern River
water stored in the City's 2800 acre water bank for use in the City's domestic water system.
The project will save pump taxes and energy costs while preserving existing groundwater
supplies that underlie the entire City of Bakersfield.
Our next step will be to prepare the necessary documents for acceptance of the loan
by the City Council, followed by a request for proposal to provide design, engineering and
inspection services for the project. We are currently putting together a project calendar to
establish the time line for the various aspects of the project.
If you have any questions or inquiries regarding the project at this time, please don't
hesitate to call myself or Florn Core at our office.
GB:sr
cc: Gregory Klimko, Finance Director
_ _
_ _ __
_ . _ _ �i . ��o� ar�
,
STATE OF CAIIFORNIA—THE RESOURCES AGENCY PETE WIISON, Go.smor
DEPARTMENT OF WATER RESOURCES
1416 NINTH STREET, F.O. BOX 912836
SACRAMENTO, CA 94236-0001
(916) 653•5791 �A � � �pp[
b 77J
Honorable Bob Price
Mayor of the City of Bakersfield
1501 Truxtun Avenue
Bakersfield, California 93301'
Dear Mayor Price:
J i�-. �` �'. .. \�' I c i f�
: �
:i�3 .. ��, t �:
i. ,
:-�rrv ��r- �,-,�:- ;���;���:
�.��. r=^ ,.:�,�!_�i-i�.'-
Your application for a loan under the Water Conservation
Bond Law of 1988 (Proposition 82) has been reviewed. We have
found the City of Bakersfield in Kern County eligible for a
$3,000,000 New.Local Water Supply construction loan. The total
project cost is estimated to be $4,050,000. The difference will
be funded by the City of Bakersfield.
Loan funds will be used for Phase IV to construct a Water
Regulation/Storage Reservoir and Agricultural/Domestic Water
Interface Project.
��
��'�
�3.-
This letter serves as our commitment of $3,000,000 to the
City of Bakersfield. our loan contract provides for a 15-year
repayment period, at a 6.1 percent interest rate. The loan
principal will be the sum of total loan disbursements to be
determined at the completion of the project, plus the State's
five percent administrative fee required by the bond law.
Therefore, your estimated loan principal will be $3,150,000.
Based on these factors, your semiannual principal and interest
payments will be about $161,751. Once your agency has drawn loan
funds, the Department of Water Resources will invoice your agency
semiannually for interest accrued at the contract interest rate
on loan funds disbursed to date, until the project is completed.
Enclosed is an informational printout of your estimated loan
repayment schedule.
Article B-6 of our Contract requires the additional
accumulation of about $16,175 semiannually to build a repayment
Reserve Fund equal to two semiannual payments durinq the first
10-years of the repayment period.
Water Code Section 12879.4(c)(8) and Article B-7 of our loan
contract require your agency to establish a dedicated source of
revenue for repayment of the loan. Your agency has proposed to
repay this loan through savings as a result of reduced
groundwater pumping assessments, off-peak power used for pumpinq,
and annual allocation from the capital budget, diverted from
construction of water wells. Your governing body must designate
by resolution and submit a copy to DWR for this purpose.
I J _
Honorable Bob Price, Mayor
�AUC 1 7 1995
Paqe Two
Water Code Section 12879.4(d) requires all loans made under
Proposition 82 to be approved by the Legislature. Assembly
Bill 2763 (Chapter 723, Statutes of 1994) has provided this
authority to DWR.
This commitment is subject to the availability af funds from
the sale of State general obligation bonds. Should conditions in
the bond market prevent the State from selling bonds, delays in
funding all or part of some projects may occur. We hope any
funding delays would be temporary..
Reimbursement for all costs which your agency incurs is
expressly contingent upon the execution of a loan contract and
your agency's ability to meet all requirements for disbursement
of funds pursuant.to the contract. Before the State can disburse
loan funds you must complete the followinq:
o Adopt a resolution of your governing body accepting the
loan, designating an officer to siqn a loan contract with
the Department of Water Resources, and designatinq a person
to approve Partial Payment Estimates.
o Execute the enclosed contract Number E84004 with DWR by
siqninq and returnina four copies to the Department of water
Resources, Bond Fi�ancinq and Administration Office,
Attention: Sarah Richey, Room 804, Post Office Box 942836,
Sacramento, California 94236-0001. We will return one
fully executed contract to you. Be advised that
Section 450.5 (a)(4) of the Proposition 82 administrative
regulations requires the contract be �,gned within six
o t s of our letter of commitment, or the commitment may be
withdrawn.
o Adopt a resolution of your governing body formally
establishinq a dedicated source of revenue to repay this
loan, to be deposited into a designated account or fund in
amounts sufficient to meet the semiannual principal and
interest payments as they become due.
o Prior to advertisinq for bids, submit final plans and
specifications certified by a California Registered Civil
Engineer as to compliance with the approved project as
defined in the enclosed contract to DWR, Division of Local
Assistance, Financial Assistance and Environmental Review
Branch, Attention: Dan Otis, Post Office Box 942836,
Sacramento,.California 94236-0001.
o Submit with your final plans and specifications an Znitial
Budget and Expenditure Summary (form 4135, enclosed)
reviewed.and signed by the Registered Civil Engineer.
'°, , ..
Honorable Bob
P�age Th e�e5
Price, Mayor
o Secure the services of a Fiscal Agent to assist in
administerinq repayment of the loan. Complete and return to
� DWR a Fiscal Services Agreement (form 600) in triplicate, as
indicated on the enclosed sample; refer to enclosed
instructions.
o Expend Supplier's Cost of $1,050,00o as provided in Section
5 of the State's contract.
PLEASE NOTE: The following two requirements must be satisfied
and the authorizing resolution referenced in the first
requirement submitted bef�e DWR will sign the loan agreement.
o Conduct a public meeting as required
hold an election as required by your
See "Public Meeting" enclosure (form
by the bond law, or
enabling authority.
601) .
o Submit an itemized list of all necessary permits and
approvals that may be required by other State, Federal,
and/or local aqencies as required by Section l0 of the
enclosed contract. This list must specify the type of
permit or approval required, the name of the agency
requiring it, and an outline of your Agency's schedule for
obtaining it.
Section 450.� of the Administrative Regulations requires
that you notify the Department of Water Resources in writinq
before you commence conatruction, of the date construction is
begin. You must submit to DWR a summary of all bids before
awarding construction contracts over $20,000, or contracts in
amount and for any purposes for which competitive bids are
required under your enablinq authority.
to
any
The Department of Water Resources commends the City of
Bakersfield for taking steps to improve the efficiency of its
water operations. Please call Sarah Richey at (916) 653-4763 if
you have any questions.
Enclosures
cc: (See attached list.)
Sincerely,
original signed by
Chester M. Winn, Chief
Division of Fiscal Services
.:, ; : ..,
',; r r
�us � � ���
Honorable Jim Costa
Member of the Senate
State Capitol, Room 2054
Sacramento, California 95814
Honorable Trice Harvey
Member of the Assembly
State Capitol, Room 3173
Sacramento, California 95814
Mr. Gene Bogart, Manager �
Department of Water and Sanitation
City of Bakersfield
1501 Truxtun Road
Bakersfield, California 93301
Mr. Florn Core
Water Resources Director
City of Bakersfield
1501 Truxtun Road
Bakersfield, California 93111
., .
� 1
i
� ' i
If" �`�:
�;- � � _
�< � ; ° �.� � � ' ,� � � _
��� � } � ,s� _ �;x
,�
� �
_ � .
�. ,.
r,
$
,� �. �� .
�� R :
� ; ,i . .
, .� ;� , � �_ . < , .'
t
. :
��
_� � � t � ; � °,
, �
_, � �
_
,
..
F �6
. ." ' x , '.� . 3 _
�: ;�
a,..
� ,.r.'�
� .� �-�._° . . ��� " x:� � - .�-
.. . `:' � ,. . ;�".�. '_ . � .,... . �r . . I .:
_ .
r� °.
... i� -ii, ..x+. ;: ,. , � . 4.. ,n . , .. .
'� � �_..- ..- " ». s.r'� t ,�µµ��: ,,,,�_� ' ..� ..
'�. ' , ` 1 � v. . .
�:.i � M
..., r
�T Hr�E" M B 1 A M A G A Z"1' N E P 0 R' 7 H ER M U N,I C'�1 P A�Lv�-Fx1�N A N C E`' C 0 M M, U N'I T Y I S U�M M E R 1 9 95 '.
�� t . �+` � s .
'� � _ ��,.,...t" _ .. :� �� ,
,� � � j
� .
� s'
, .. ^k"�'� �` ." 1
.�b T . ,�, �i
` " �.. .. . , w� a �l„ :,.. � °, ,�.
m n � - b "K �
�� 3 x,,t. �. - sn,
..,
> � � _ � � , � � � M � � � �>�+� � r� .. �,
F i°'ro`;� �a° � i i � r
�`� r ii ��� �� ' �� � � �r � �« ,�
� � �q� �' �, �°��� ° �i�
� r' &�.:�
� �U< � �
* � �
��_. � ..M. . .
�� �; . t
�� ¢..
� � ;, ��._- -
�:'"„ ° �
,_ _-. . .
�. �� _� . , ,�. �,,- .
� ��
° *.
... .: � � ; :..
���_ , .
;
, �.
. � ;. * � : , �
, � �,
-,..
� f; •". •,�' �� '� ' ��
q � , , ; ; ,.,
„� �,, �e „
, � �r ;
�
�•� � ' = °
. � . ., = - ,
3 a
3 . � ., � _ _ . '
&
u . .�
�_
e u
� �>.' . -�P . � x .:...�..
�w v.: � � � ...
*aS�iA� � ::. .. � �.v "� .. .... . . .., a %�-�.. . . ��� ..
F f
4
1
d
�. �
�
p s , .."
� � ��
,
: �,
.
,.
� , ,
� � � ,. _ �
� �, . �,. �� �� �
�j �L `���` � „��'�"'�. ;`
, �
� x' � �,� - �
a � ,.0 �
..
, ,_
�-- ` . . . " � ��
�� .�
T � ��s � � �����,
�..
�
� � �, � � � ��� �,
"1Z 1. l. z. � � � a���. ������� �
�- . .
� � ,
„ . � � , �,
� s ., a , ��.
� ,. � � ��� �..>-��
u �. :s� ..
�� :� �-;� .., ..� ... : �� �. �.,� r �
; ` � , � +�`� _
������ �[,A .SPECIAL R�:EPO'RT ��Building Sa�fety
° • �
�� � . � � ��� �
, �, � . : >�.,
� . � r
� f,�; �';
. , °>
�� �� Into the ��
� ,,� � r�
� � ,�.
� � � � � � s�, � , ,;, � � � � �
� �x ���������`� �� Infrastructure
� � �
..
�,
� �.
.
- � � .�� ��s � �
.
, . g �.,.
� � �
,
{ , „�
, 4 �
<..,.
1:. , Looking Into the
�--
�� �` Terrorist�Mind
�;
� � ; �.,
M Man.a'ging the Cost
��� `
�' � ' ` ��� of Rec,bvery =�
�
rr�..
.,
4 � `
from
the editor's desh
��A HORRIBLE SOUND TORE THE MORNING IN TWO.�� Tllat�SllOW
Mary Whitlow remembers April 19, 1995, the day the Oklahoma City feder-
al building was blown to bits. Whitlow, thrown from her desk at the Okla-
homa Water Resources Board, was lucky — she survived the blast.
But for many Americans, a sense of security was shattered in the explosion,
buried under the rubble that claimed 1GS lives. Shockwaves radiated from the
center of our country carrying a message: if it can happen<here,;na one is safe.
Now, with proposed anti-terrorism legislation, some argue that our per-
sonal freedoms are in jeopardy, too. They say our right to privacy is threat-
ened by increased surveillance of all citizens, suspect or not. They feel the
movement toward censorship imperils freedom of speech.
But what about freedom from fear? For the people of Oklahoma Ciry and
employees in New York City's World Trade Center — for anyone whds ever
been caught in the cross hairs of a terrorist attack — securiry and vulnerabiliry
change places forever.
Municipalities are obliged to use all available means to safeguard their cit-
izens. But that requires money and resources. In this edition of Public Issues we
examine the financial, psychological and architectural implications of building
increased securiry into our infrastructure.
Writer Bruce Felton interviewed Mary Whitlow for our cover article, Secur-
ingMain Street. "The scene she described was ununaginable," says Felton. His
conversations with municipal oicials across the U.S. reveal that disaster plan-
ning and emergency management were in place in Americas heartland well
before the Oklahoma Ciry bombing.
We look inside the terrorist mind in Perverted Logic, an interview with Dr.
Tom Strentz, former 21-year FBI official. Dr. Strentz studied terrorists and
hostage-takers at the FBI Academy in Quantico, Virginia, in the very same
department profiled in the film The Silence of the Lambs.
And we explore the high cost of recovery from terrorist attacks in Addzng
Insult to Injury. While writer Marlene Piturro investigated property and
casualty insurance issues, she uncovered another outgrowth of terrorism —
government liability.
Who's to blame for the tragedy in the Midwest will be decided in the courts.
Whatever the outcome, our world is changed. As Thornton Wilder said in
his 1938 play Our Town, "You've got to look both ways before you cross Main
Streec these days."
c+�e� �-� '�Id
]UDE� WESTERFIELD
Public Issues is published by ;„tsin Insurance Corporarion foc government finance officecs, municipal underwriters,
financial advisers and bond counsel. Suggestions and comments should be addressed to Public Issues, xx3 King Streer,
Armonk, New York ioso4-i6io. atarn does not necessarily endorse the opinions contained herein. Evirox: Jude
Wescerfield. nESCCx: The Bainett Group, Inc. � tvtsin Insurance Corporation i995
. . v�Ak.��t .
�
�ri ;
Y�-�
�a�:°
w ,� -�
.�.}.
i'
.
#,
` �, _�� � _._. � � � I
_�. ,, �<a.n.. ::;:,�a�� ��,.�,�;..,,,:
� ��°
;„,� ,
�v �
�
�
f e a t u r e s
Securing Main Street by Bruce Felton
2 All over the U.S., municipalities are sharpening up their disaster plans
because they now know "it can happen here."
Perverted Logic by Andrew Feinberg
5 Terrorist targets are deliberately chosen and the attack carefully planned.
An expert in extremist motivation reveals the method behind the madness.
Adding Insult to Injury by Marlene C. Piturro �
6 Picking up the pieces after a terrorist attack is painful and slow. With
liabiliry now in question, it's expensive, too.
High-Tech Sentinels by Michael L. Lazare
8 Space-age materials and common sense arm municipalities against
terrorism.
Architects and Oklahoma City by jesse Kornbluth
9 From Bauhaus to bunkers? Five architects offer viewpoints on
balancing public safety with aesthetic appeal.
Trenton's Trophy by Andrew Lehren
10 A new $18 million minor league baseball stadium may be the field of
dreams that New Jersey's capitol needs.
The (Municipal) Bonds Of Trust by Arthur Levitt, Jr.
14 A default in Orange County could forever change the way municipal
bonds are viewed. A treatise from the SEC chairman.
� �� _ _
�
q , _ .� _� � ,��,_ � �.._,� _..� ,� � �
� �.� �.
� � �.
� � ���>
� F
,
_..'; ��� _ <_.�, _. �.�'_ � ._ �� _� �_� '�_
departments
-� PuB�iC woRKS: Hopes Ascending
16 Mt. Sinai Medical School builds a new
� research faciliry.
TOOLS OF THE TRADE: One City's Journey
18 by Vincent dePaul Lupiano
' Dayton overhauls their data dinosaur.
20 I HOT ISSUES
18
�
�
2
10
14
Cover: Home grown terrorism
hits America's heartland.
Photo-illustration by Amy Guip.
�
I
�
r: �
.. . . ; -
. ,
.�
� � '� '� ..�sf^ . .
� ' '; � :�::
�� . �
�" . . �
;:,' .� , �
�
�
. i
i
:� � ,
�.
t� u,
ye
:n' � ..
J� � ...��' * �
� ,
�
fi
r f
�-�
F
��� ��� �� —
�
�
, . . "� -
. � � ,
. - _ _ ,
� •_
_ � . .
- � � ` '� � � , � ^: . _. �
���� � �. � -- �
.� Fa-_
� � �•+ -�� ,,' � ,
. . - � 7 �. ' �, . _«.,...�:� p «u.'r+� K�'y :
. "R„ s � a��'; � s,� ; ��
��, � . �x
'Sa��,i �.�.
� �'` �� , tt �
� ~ �� � f �' �
' � � � �,'
� ���:>?'" '� �` �,
P'
. '�k� �� . � r-�.�;.
, � � ��� �i �
" r � � ��� +.�� ,
� � ���,
µr r� r
��. �
�� •.�
� V�
. '�"� � _ ���f
�
� �„
,.`_ , �.
'r��-�, �f;�� 't, �
1 i�"'7 `•
� r�
�`�.: �� :�'
<x �
�CCl{��t�.:
�` 1Ci�t� �i
„I � � S,t{ . 1\
� ��tl"..�:.\
c�;t '. �
`i i
:i�..:��,�
�c'
! '.��`r
0
�
�
f�
..-; `
i
'1
, �
.'
� ��� � �� � �� .
3' _ ��
c
� ''� i
� � � �`� �. °� �� �- ' -' . " � �
� � ��. ! � _
� ' v � � �;
• � . ° � � �'-
�', . �� t �� � � �� � �
� � ,�
s �m��,. # f
� �fi. � • �
� ., . �X � r.A k " .
: �
�
. � . .,��, � -:". ?" '`������ . ..
. ' _ '" { . . . _ . ' . � '
. - . , -�
. ,.: „,... _
_ y , _ -
� ... z.
� f +
. � - .�, � - ,
< �. �
, � �
a
,,� `.
�.. -'..,�.
�'�
1.
;1
�4
�1
Si n h �r'e��� et
g �����9 PUBLIC ISSUE�� �
� ���_�� �,� 1
� �� �
� ��- ; � {�-- �
. . ,������ ��
With your help, Publiclssues can be in your hands wit `in one week of rinfin .
ti.,. P 9
Just fill in the information below and mail this prep ia d postcard back to us. At least 50% of
our dreulation needs to respond in order for the Post Office to qualify Public Issues for 2nd
Class Mail privileges.
Please note.• Postal regulations require that you provide your signature.
BUSINESS REPLY MAIL
FIRST CLASS MAIL PERMIT NO. 6 ARMONK, NY
POSTAGE WILL BE PAID BY ADDRESSEE
PUBLIC ISSUES
113 KING STREET
ARMONK, NY 10504-9925
I���IIII����I�I�II����I��II�I��I�I����I�I�I�I��I�I�I
NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES
�
�
',.
i
,r
_
/
/
�
�
1
��
i
� �� ,�F �, ��
� �'—_ > , S O�O �N A F
� �j i �'� �'� � �`, .1
� `�� �,���� �� `?�a caller tippe
�t� r � �l
' r�,��j� ' �� Omaha arou
.F - � ,t
.� 4 f *
� � G ,�, i � _ „ Douglas Co�
' ��'k �w ` ��' by a bo�inb s<
, �� „�'��, - � �
� �'� �
�
� � i;� �� ` `�'`�,-. ''4 ' � ' stmilar "coPY
... x '
� � ��� �, � : „
I �����
, `ti
_ \ ��� __
�,
` `'�..�' ___ `Y �. _ �
�� ;�_�-_ �� _L �`.
�
E it R E s c u E ft s ended their search for victims of ApriPs Oklahoma Ciry bombing,
off police in Austin, Texas, to the presence of a car bomb at a local music festival. In
l the same time, an enraged homeowner warned city officials of his plans to blow up the
Courthouse unless his property tases were lowered. A Tucson parochial school was hit
so was Memphis' Criminal Justice Center. In scores of other cities across the country,
threats were phoned in, checked out and, ultimately, dismissed. o But the message was
's heartland is no longer safe from terrorism. o"No question that people here feel more
vulrier`able sin�ce Oklahoma City," says Douglas Counry (Nebraska) Sheriff Tim Dunning from his office
in the Omahi-Douglas Civic Center. "We look at what happened there and see a city a lot like ours in
terms of its size, safety, Midwestern culture — one that hasn't dealt with the heavy political and urban
issues that come up in New York and Los Angeles. Overnight, our sense of securiry just vanished." o In
Des Moines, reports ciry spokesperson Lucinda Stephenson, some employees at a downtown federal
office building "have been understandably reluctant" to drop off their children at an on-site day-care
center, similar to the one housed in the Oklahoma City federal building. o And in Wichita, Kan., res-
idents reacted to the blast with a special chi1L "Oklahoma City's just down the road from us = in fact, Tim-
� othy McVeigh drove past Wichita on his way there, and Terry
� Nichols was held in our counry jail," says public information officer
�
a11 1� 1 O r 1 t �. Andrea Jaeckel. "People were scared and frustrated." ❑ It often
urger�t, P , � Y ;
,
`---- -- '=- �'` ' seems the gods must have struck a deal with the Wichitas and Oma-
by '
t:'
Bruce
Felton
photo-illustration by
Amy Guip
has of America: we'll keep disasters like the World Trade Center
bombing safely confined to America's mega-cities. Your only worry
will be tornadoes and floods. Suddenly, at 9:02 am on April 19,
the zoning lines were redrawn. As Main Street has discovered, it
can happen anywhere. ❑ All over the Midwest, candlel
were held to remember the Oklahoma City dead. Mayor
ernors spoke; memorial trees were planted. The people o
Ciry, Kan., where McVeigh was briefly jailed, sent $10,�
their stricken neighbors to the south; other communiti
supplies and volunteers. Here was heartland America
completely in character. We may appear reserved at first
ght vigils
and gov-'
Junction
00 to aid
�,�t���•����4
.�
���
�
s offered
>ehaving I
the folks
. PUBLIC ISSUES� 3
of River City, Iowa, admit in The Music Man: "But we'll
give you our shirt and the back to go with it, if your crops
should happen to die."
At the same time, Main Street's outpourings of concern
and help were matched by a probing look inward. Is our
town next? Are we doing all that we can to ensure our
safery? As the dust settled around the wreckage of the Mur-
rah Building, the City Council of Rockford, Ill., voted to
close off a street directly adjacent to the building that hous-
es the police department and the Winnebago Counry Sher-
iff's office. Tulsa, Okla., banned parking near the Counry
Courthouse. Kansas Ciry officials ordered a comprehen-
sive review of existing securiry measures at all city-owned
facilities, including the airports and sports arena. And
Wichita instituted a long-planned mandatory training
course in security and preventive measures for all munici-
pal employees who deal with the public.
To be sure, many cities had been thinking about ways to
shore up securiry in public places long before Oklahoma Ciry.
And many are quick to point out that the fears awakened
by that tragedy have not exploded into mindless paranoia.
"Our consciousness has been raised, but there's been no
kneejerk reaction," says Toledo, Ohio, police sergeant Phillip
Wesley, who is the city's liaison to the Lucas County Emer-
genry Management Agenry. "What there has been is a lot
of careful, constructive discussion about how to prevent
an Oklahoma Ciry from happening here."
Of course, peace of mind doesn't come cheap. Joe Mysak,
editor of Grant's Municipal Bond Observer says, "It's expen-
sive to make bridges and buildings bomb proof, although I
don't think it will impair issuers' access to the debt markets, or
hurt bond ratings." Perhaps not. But the cost of inetal detec-
tors, concrete barriers, anti-terrorism training and street clos-
ings can strain a municipality's coffers — and taa�payers' patience.
"What angers me about those costs is that they are total-
ly unproductive," says Jim Lebenthal, chairman of Lebenthal
& Co, Inc. "I can see spending money on an advanced toll
system that moves traffic faster, saves fuel by cutting idling
time and gets commuters to work faster. But we're talking
about massive spending of public moneys that gives back
nothing."
There are other, perhaps heavier, costs as well. "All these
physical restrictions, however necessary they are, begin to
erode our sense of freedom — and our innocence," says Ann
Kliman, co-founder of the Center for Preventive Psychia-
try in White Plains, N.Y. "We see a barrier, and it puts us on
guard against others. Suddenly, the stranger in our midst
becomes the enemy."
Which is exactly the kind of thing Wichita's Jaeckel wor-
ries about. "There's been talk of putting metal detectors in
City Hall, but a lot of people are against it," she says.
"They're afraid it wouldn't make for a friendly atmosphere."
In America's heartland, where the folks at the luncheonette
know everyone's name and doors are never locked, that may
be the biggest cost of all. ■
---------------------------------------
NewYorkCity-basedwritersxucE FELTON isafreyuentcontribu-
tor to Public Issues.
❑
�
------r---- --1-1---- � -�--1---1---�--1__--��--�--- - - - - _-- - „ . , �
- - - - ------------------------------
� _ ning to issue a$50 million bond .
; The implications of Oklahoma �this summer. The sale, which ,
�� City for the municipal bond mar- pieces of glass and debris into will be underwritten by Paine- -__
ket are still hard to assess. But the wail right behind me," says Webber, has now been post- ``
for one issuer, the blasYs impact Whitlow. "If I'd been sitting up, I poned until October. ,
was immediate and deadly. probably wouldn't have sur- "A lot of our records were _�
Mary Whitlow, public infor- vived." Though Whitlow was drenched when the plumbing ``
mation officer for the Oklahoma unharmed, a number of her co- was damaged, but we're having
Water Resources Board, was at workers were injured, two them freeze-dried and cleaned, �
her tlesk when "a horrible fatally. One was a woman and the paper losses have been
sound" tore the morning in two. pinned under a heavy storage minimal," says Joe Freeman, �
�
In an instant, shards of glass cabinet, barely 10 feet away. chief of the Financial Assistance ;
flew like shrapnel, ceilings col- Remarkably, the blast shut Division. 'Things are definitely
�: �`°° lapsed, and the offices filled with down operations for only two falling back in place." But as he �
acrid, throat-burning smoke. ' days. On Friday, April 21, the and the others who were there ' �
Across Fifth Street, much of the Water Resources Board on that terrible morning know
Murrah Federal Building lay in regrouped at temporary quar- all too well, some things at the
ruins. ters in the State Capitol buiid- Water Resources Board wiil �`
, "The force of the explosion ing, later setting up shop in the never be the same.
threw me to the floor and tlrove
4 PUBLIC ISSUES
state insurance building.
One of Oklahoma's most
active issuers of municipal
debt, the board had been plan-
�
�
�� r �
���f�;
�
� ��
�� ;��
p�
�
�
��
Wn,at the v �' � t
� _ ��,v's�►►1 �; �'�! �
k _ (,
�� ������� Qaf�
r
J_ - _
by
Andrew
Feinberg
s;��1. '�j-.i
�
���
�
� ��
�
�»` � t i,;
Y
�3 � ,•+-' •
+?.k,y'`���` ��^� f '� /
-
For the true political terrorist, the ultimate goal is to gen-
erate publicity to illuminate the justness of his cause. The
most "rational".terrorists, therefore, realize that bloodshed
is counterproductive. Ultimately, it was the killing of children
that helped undo the Irish Republican Army.
r r: Why are certain targets chosen?
T s: The ideal target is symbolic. It represents the enemy
government. In addition, a successful bombing is meant to
maximize the enemy's feeling of vulnerabiliry.
Consider the history of targets in the Middle East. First,
r u s r. i c i s s u E s: What do terrorists think violence will
accomplish?
n R. s z' x E N T z: This varies. In the case of Oklahoma City,
the motive was primarily vengeance, largely because of Waco.
I'm convinced that the day-care center was deliberately tar-
geted, to retaliate for the children who died at Waco.
A more common motive is to show a government that it
is vulnerable. The goal is to show that the terrorist is more
powerful than the government. And, of course, to make
every citizen live in fear.
there were the embassies. Then the airlines. Then
businessmen and tourists.
r i: Do the "visuals" matter to terrorists> the way a
target looks after it hus been bombed?
T s: Absolutely. The true political terrorist craves
publicity for his cause and good visuals enhance that.
It's not completely coincidental that the pictures of
the IMurrah Building in Oklahoma City were so
much like the destroyed U.S. embassy in Beirut.
I think this emphasis on the visual is one reason
tunnels are so rarely targeted. Blowing up a tunnel
would be devastating, but the damage wouldn't look
so bad.
r i: Why are bridges, pipelines and power plants so
Seldom targeted? ,
T s: Because it would probably take an enormous
bomb to bring down a bridge. In physics terms, you
have all that open air to clissipate the power of the blast.
A damaged pipeline or power grid would'n't make good
theater. Also, access to a power plant is hard to get.
rr: Whats the ideal terrorist target?
T s: If you wanted to cause maacimum economic
chaos in the U.S., it might be one of the bank offices that
serves as a major check-clearing house. Luckily, the sym-
bolism here wouldn't be very appealing because the target
would just look like any other office building.
According to the "bibles" of the violent right-wing such
as The Turner Diaries, the preferred target would be a federal
building in Washington, D.C. ■
nNnxEw FEiNSExe aNewYorkCitywriter, isafrequenteontributor
to Forbes, Worth and The New York Times.
PUBLIC ISSUES 5
■
;---�--�. �
, -;: :::,: �- -
MunicipaT�it ��it =-3�y�_
, rr __- �.,�,.
� ..� _
�terrorism face
in 1
�,..�-,�.�..
� �
� e�re-�r�tx�ive recoveries
��-_ _�
■
�
�
D Y i tv G o x L n x o M n c i T Y' s Alfred Murrah Federal Building, the white supremacist surmised that by
van directly in front of it and detonating the bomb remotely, the building would flatten. That was
Snell the putative bomber. Twelve years later, on April 19, 1995, Timothy McVeigh, another right-
allegedly realized Snell's anarchic dream by annihilating men, women, children and the Murrah building
itself. Perhaps coincidentally, on that very day, Snell was executed for the 1984 mortal shooting of a black Arkansas state
trooper. o According to The New York Times accounts, Mcveigh spent months analyzing federal sites in the Midwest,
judging, as did Snell, the Murrah building an ideal target. Its large glass windows, nine floors designed to pancake on
impact and direct access by van rendered it vulnerable. Vulnerable it was: 168 people paid with their lives; hundreds were
injured, and hundreds of millions of dollars are being spent to rebuild its environs. And federal and municipal officials
ask: Since the Murrah building was a known target long before the April bombing, could this have been prevented? Can
we protect ourselves from being next?
Before answering those questions,
let's probe the blast's impact on the
budget.
The Independent Insurance Agents
of America's early estimates of com-
mercially insured properry loss ranged
from $125 million to $300 million,
spread evenly among insurers. Buddy
Young, the Federal Emergenry Man-
agement Administratiods (FEMA)
regional director, calculates damages
exceeding $500 million to the 300
buildings near the blast site, exclud-
ing the Murrah building, which was
self-insured by the federal government.
For small businesses damaged by
the explosion, the SBA, Oklahoma
County Disaster Relief Team and
FEMA quickly issued relief checks and
G PUBLIC ISSUES
processed loans to help them recover.
For federal agencies, General Services
Administration and FEMA teams had
the Federal Building/Courthouse and
the Post Office direcdy across the street
from the Murrah building operational
by Apri124, five days after the bomb-
ing. All 13 federal agencies previously
housed in Murrah were relocated by
May lst, at a still-untallied cost.
The efficient post-blast recovery
efforts in Oklahoma harken back to
another major terrorist attack on
American soil, the 1993 World Trade
Center bombing. The Port Authori-
ty of New York/New Jersey (PA)
rebounded quickly when a bomb
rocked the World Trade Center's
Tower One, killing six people and
injuring over 1,000. With $700 mil-
lion in reserves and $1.1 billion worth
of property and casualty coverage,
the PA easily covered the $510 mil-
lion in P&C claims. The PA's back-
up computerized cash management
and debt service functions immedi-
ately kicked in so smoothly that the
ratings agencies gave the "thumbs-up"
to a$100 million bond sale sched-
uled for the first post-blast business
day. The offering sold out at the low-
est interest rate in recent history,
showing confidence in the PA's abil-
iry to absorb the blast's blow.
Similarly, Oklahoma Ciry's private
and public rebuilding are well under-
way, and credit analysts are optimistic.
Moody's Investor Services analyst Chris
Evangel sees no reason to downgrade
the ciry's Aa rating: "Was Oklahoma
,--_� _ —_.
F
�i
_�
�: .
>� 1
> '�
i
�; .
I �
�y �
Marlene C.
Ciry on anyone's list of the top 1000
terrorist targets? We can't make quasi-
random events a basis for rating cred-
its...Oklahoma City has a decent
financial position, a diverse ecnploy-
ment base and no disruption of its
economy from the bombing." Ernest
Perez of Standard & Poor's concurs:
major infrastructure and employment
centers were left untouclied, leaving
intact the ciry's ability to pay its $48.6
million GO bonds.
As Oklahoma City rebuilds with
roughly $500 million from commer-
cial insurance and an as yet unspeci-
fied but surely astronomical figure
from the federal government, impor-
tant liabiliry questions surface. As evi-
dence mounts that McVeigh plotted
with other members of paramilitary
groups known to federal law enforc-
ers, opportunities for lawsuits abound
for aggressive and intelligent plain-
tiff's lawyers.
Kent Morrison, chairman of the
American Bar Association's Commit-
tee on Federal Claims and Remedies,
explains that suing the federal gov-
ernment is basically unappealing
because of sovereign immunity, no
jury trial and limits on dollar awards.
However, lawsuits may offer financial
compensation for death or injury — in
the government's partial waiver against
sovereign immunity, a private com-
pany providing securiry, the fertilizer
manufacturer, McUeigh and the orga-
nizations to which he belonged. While
the municipal government is an unlike-
ly target in this case, Morrison advises:
c;,���. �-1
�r
�E
"Take terrorist threats very seri-
ously. Municipalities must deal
with these threats head-on with-
out trying to push them off on
the federal government, because
they may have to pay later."
James Kainen, a Fordham
Universiry law professor, sug-
gests that municipalities take
reasonable measures to protect
themselves against negligence
claims. Failure to adequately
protect a building, problematic
vehicular access, gaps in emer-
gency procedures or equipment
leading to injury or death open
the door to tort claims. Kainen
urges "due care" in securing
buildings, pointing out that
juries weigh reasonable costs,
such as installing a metal detec-
tor, vs. damages of an assailant
causing injury or death.
The horror of Oklahoma
City has forced us to develop a
new lexicon of municipal planning,
incorporating "terrorism," "war risk,"
"surveillance" and "due care" into our
lives. Yet slowly, towns and cities
return to normal, the memory of
Oklahoma City receding. But no one
will forget that a lone madman or
those joined in an unholy crusade
against the government have shattered
our belief that we are always safe on
Main Street. ■
MARLENE C. PITURRO 1SClfreelancebusi-
ness journali.st and former commercial banker.
She covered the World Trade Center bomb-
ing for Public Issues.
PUBLIC ISSUES 7
■
�
by Michael L. Lazare
., —=—:�.: ��,�:,,-.�;�..---= ; ,.
ia',Rk. � 'w •{ ��t -� .....
� 5.
Ne�%--technology }�}u��,,�q.s� �ec,ur�i y in,toi`'public.�
� ° t�____
aces
-
T x E r x E M r s E r s s i M r L E: Although no structure can be made completely terrorist-proof, there exists a powerful array
of tools to bring the threat of terrorism to an irreducible minimum. o William J. Daly, assistant managing director of
Kroll Associates, a New York Ciry security consultanry, says, "Good security consists of three elements — deterrence, detec-
tion and response." o Under deterrence, Daly includes awareness of conditions affecting a given area or industry, such
as terrorist, political, labor or criminal threats. Once the climate is known, deterrence becomes a matter of physi-
cal and electronic factors, "concentric rings of security," as he calls it. o Physical perimeter security is designed
to keep potential threats as far away as possible. For exam-
ple, concrete planters prevent vehicles from approaching a
building. A good access control system governs who can
come into a building and high-risk areas such as comput-
er rooms and executive offices.
The principal component of detection, Daly notes, is
awareness. Employees should be made aware of possible
threats and the authorities alerted. The other side of the
coin is making potential terrorists aware of security mea-
sures, such as constant patrols.
As the awareness of potential terrorism spreads, tech-
nology is becoming increasingly important. Faster com-
puter chips, faster modems and greater use of fiber optics
are making the dissemination of information — around the
world or within a building — more rapid and efficient.
The use of optical technology, such as digitized pho-
tographic IDs, also speeds the flow of information. Pic-
tures of authorized employees, as well as suspects, can be
moved over global information networks as well as local
area networks.
Technology is also bringing improvements in closed-
circuit television (CCTV) and video motion detection. Low-
light and digital CCTV cameras make it easier to detect
intruders. Robotic patrols can multiply the effectiveness of
a security force; combined with fiber optics and digital
communications networks, information gathered by robots
can be transmitted immediately.
Advances in structural materials are also coming into
being. Shortly after the Oklahoma City explosion, Firexx
8 PUBLIC ISSUES
Corporation of Arlington, Va, introduced Fireacac Fortifi-
cationT"', which can shield a building against more than
3,000 pounds of TNT detonated just 10 to 12 feet away.
(The Oklahoma City explosion was caused by about 4,000
pounds of an ammonium nitrate-based explosive — equiv-
alent to about 2,500 pounds of TNT — detonated from
about 10 feet away.)
Fire� is a foil-mesh materi-
al that can be used as a wall
shield. It absorbs and dissipate�
shock and gas waves and great-
ly minimizes their damage.
Structural engineers estimate
that a thin curtain of Firexx
Fortification provides the same
protection as 42 inches of steel-
reinforced concrete.
There's no easy way. But the
combination of architectural
and construction advances,
technological applications and
stepped-up security should go a
long way toward discouraging
terrorists and protecting the lives
of innocent people. ■
MICHAEL L. LAZARE, Cl fi'eelance
writer based in Connecticut, reports on
a variety of business topics.
i
/ I,
�
PEOPLE WHO HAVE TALKED Wltil tile bOlriUlrig SUSp2Ct
Ti'�othy McVeigh report that he didn't randomly choose
� the Alfred P. Murrah federal building in Oklahoma Ciry as
f `--I
th�target of his bomb. Federal officials say that its large
�gl1ass surfaces and proximity to the street made it particularly
s
�
�
�
_
0
Y
�
N
�
T
�
vulnerable. In the aftermath, architects must balance tra-
ditional aesthetic aspirations with the demand, now greater
than ever, that buildings be safe,� even from terrorists.
robert A. M. sTERN: Security has nothing to do with how
you approach architecture. Security has to do with access.
I've worked on embassies, and we now know, ever since
the marines were blown up in Lebanon, cars can't come
under an occupied part of the building. When you're design-
ing for the federal government, you're obliged to be inspired
by classical buildings that go hand in hand with the classi-
cal ideas of the Constitution. The great government build-
ings we put up before the Second World War had a dimen-
sion of inspiration that the buildings built after the war
don't have. The new ones are meaner. They're diagram-
matic. That building in Oklahoma City was a protorypical
blank box — low ceilings, few amenities. It says we shelve our
federal workers. When you go up the steps of the court-
house in Manhattan, you think twice about the jury expe-
rience. It's awe-inspiring. And you can't ride up the steps
in your Ryder truck. Those things count.
charles GWA7HMEY: I've alway's said that the greatest archi-
tecture produced great ruins. I'm interested in the idea of
�
f;��4. .'�.��
_ �r
�q
archeology — for me, the notion of fragments has architec-
tural interest and implication. But the way the federal build-
ing in Oklahoma Ciry has become a ruin is philosophical-
ly unacceptable to me. If the principles of aesthetics are
going to adjust because of a threat, you're buying into the
idea that this kind of terrorism is going to be with us. To
make bombproof buildings, you'd have to reinvestigate sub-
terranean environments that aren't about natural light. His-
torically, architecture is symbolic of the aspirations of a cul-
ture. If you rearrange your aspirations and make subter-
ranean buildings, the obligation is to design the site — the
environment you enclose and the landscaping on the roof.
Anything is an opportuniry. But I'd resist that.
laurinda SPEAR & bernardo FORT-BRESCIA: We designeci
an embassy for the State Department at a time when secu-
riry was the most important issue for American facilities
abroad. Our understanding and response to these concerns
affected functional arrangement, form and materials. We
never thought we would have to design terrorism-conscious
buildings within our own country, but that may become
a reality now, after Oklahoma Ciry. We will be faced with
the difficult job of communicating something inspirational
when in fact there is the architectural equivalent of a bul-
letproof vest behind the facade.
frank �EHttv: Mine is an architecture of optimism. I can't
look at it any other way. I did an embassy project in Dam-
ascus, and as it must be, the bunker mentality was pervasive.
I understood that it was practical, but I didn't find it heart-
ening or easy to relate to. Now I'm building a Guggenheim
Museum in Bilbao, Spain, and there have been some expres-
sions of anger against an American architect building a gov-
ernment-funded project. I hope, as the building goes up,
that these feelings will change. The dream that we can
design ourselves to safety is unrealistic. I don't think you
can protect people. By the time you close off one bomb-
ing possibility, someone will figure out a new trick. ■
------------------------------------
Reprinted by permission. (1995 Tbe New Yorker Magazine, Inc.)
PUBLIC ISSUES 9
`. �
�:�
k
;
;
;
i .
.
{
,
-! - _- -
�
�
�
1
_ �
�
^ ��
_. �
. .. �., .
_ ,, f �. . � . ��-�: .._ ._
. . . . ._. ,,.
;,-, , . , �,�
. , � .f
3 , _ <�
�. _ t
'0 :. � :
- �� �`� t �, ,
.� . �
�-
�� " � _
� ` _ �
. _ �._u_.__�„ „ c.��
� � �
' ield bleachers of Trenton's ear-old
Y
y� �� ,
.m—th e_u_p_p_e_r r_i g h t Waterfront Park stadium, Robert Prunetti smiles upon the muck and
� r'�k�
overgrowth along the riverbanks downstream from his city's famous
� landmark — a bridge emblazoned with a stark reminder of glory days
'� � -- -- gone by: «T�,NTON Mn�s/TxE woiu.n Tn�s�� ❑ The stocky Repub-
lican, one of central New Jersey's most powerful local politicians, likes what he
sees. He envisions luring people into a city where so many keep moving out;
• where about a fifth of the residents lives in poverty; where so many factories
have closed down that today there is little Trenton makes, and less for the world
10 PUBLIC ISSUES
�
�
� �
�
�
��
�� .,
by
Andrew Lehren
��
New Jersey's capitoi
pins its economic future on a
�-� , . �. _
� �-� e . ��
_._
,� � �, -
, , .�, �,� �
- ______� ...a .
��
�-�;
.,,� .
;�
field of dreams
w�:. �'; �: -�--�,-;:� .-,..:� -;
.
._ .
. . _ ...
,. _.,��.,�_
!
I ��
-., _
. �
�� �r
__ :,
to take. ❑ To understand Prunetti's optimism, start with this simple phrase: "Play Ball." o The Mercer County exec-
utive sees Trenton's hope in this 6,500-seat minor league baseball stadium next to a field of weeds. People will come for
concerts. They will stroll a walkway along the Delaware River. Boats will moor on nearby docks. More businesses will move
in. Restaurants will open. In other words, Prunetti wants to give a reason for people to return to Trenton. o With the
new home of the Class AA Trenton Thunder into its second season, some of those things are happening. A snip-
pet of the walkway is done, and more work is underway. A new road allows fans to get to the game faster. A McDonald's
opened nearby. The state Department of Education announced it will rent a nearby vacant office building.
❑ Prunetti is not the first ciry official with this idea. He is one in a long line of U.S. government officials who see baseball as
a way to hit an economic grand slam. Places from Wilmington, Del., to Battle Creek, Mich., to Lake Elsinore, Calif.,
�HOTOGftAI'HY: BARRY ROSENTHAL P U B LI C I S S U ES LI
T he Trenton
Thunder's new
baseball field as
viewed from
have all borrowed on Wall Street in recent years to build minor league parks.
But perhaps nowhere else in the country is this dream set against such a stark
reality. Trenton is a rust belt city where most of the dwellings were built before
World War II. Its population keeps dwindling. For out-of-town visitors, Tren-
ton doesn't have a hotel. Visiting baseball teams can't stay in New Jersey's capi-
tol. They're booked into the Palmer Inn, near Princeton.
Baseball next door has not made much of a difference, according to real
estate broker Kevin Flynn. "It's a nice thing, like having a water fountain out
in front of your building." He appreciates Prunetti's effort, though. After all,
he says, "What else can you do?"
Tom Gosnell, former mayor of London, Ontario, where the
Thunder played before moving to Trenton, believes baseball is
not the answer. He balked at expensive repairs to keep the team
in Canada. He didn't see a big economic return. When Prunet-
ti swayed Mercer County to finance the stadium, Gosnell
scoffed, "The taYpayers just got suckered big time."
And last year, there were signs that near-capacity crowds
were sparking little economic gains. A block away from the sta-
dium, a Lamberton Street sandwich shop changed its name to
Ball Park Deli and promised to remain open on game days until
7 p.m., when the first pitch is thrown. Neighborhood residents
said the manager gave up trying to lure baseball fans sometime
around mid-season and reverted back to his earlier closing time.
To the mayor of the last town that had the Thunder, Prunet-
ti responds, "I would say to him, `Come out and talk to these people."'
above. Beyond Prunetti knows the criticisms. He heard them during 1993> campaigning
for voter approval so Mercer Counry could borrow money on Wall Street for
the stadium. Opposition to the cost was raised by elderly and Perot groups.
the stadium lies "The perception was much worse than the realiry," he says. The counry exec-
utive cited the 230 game-day jobs, along with 30 full-time positions, created by
N ew Jersey's getting a minor league club. Proponents invite doubters to scan the outfield wall
for proof that businesses see a lot of potential in baseball. The wall is blanket-
ed in a crazy quilt of more than 70 ads — touting companies like Trenton Pork
Delaware River. Roll. Every inch is covered except a sacred, thin green band in dead center
field, a swatch devoid of ads so batters won't find their vision obstructed as
they try to see the pitch coming their way.
i
inanced Arenas...If You Build
TRENTON JOINED about 60 other communities that built stadiums during the last ten years for minor league baseball. At least six
more are expected to open during the i996 and i99� seasons. Plus, more than a dozen teams in all the major leagues — football,
basketball, hocl<ey and basebail — have either just started in new homes or are making plans. Even the Boston Red Sox may
replace hallowed Fenway Park. Most rely on public financing. Here are some of these moves: O ANAHEIM, CALIF: "The arena was built
on a bit of a dream," says Bernard Schneider, an attorney who advised the city. The dream was a hockey or basketbali team. Anaheim
formed a public-private venture that staked �i25 million. An ensuing pubiic outcry crippled one councilman's re-election bid. But in the
end, the dream was manufactured into reality. Walt Disney Co. moved in its new hockey franchise, the Mighty Ducks, i.n 1993. O ST. LOUIS:
After losing its NFL Cardinals to Phoenix, Ariz., area political leaders mustered public support for a$zbo million stadium. The arena was
built on the hope of winning an expansion franchise. That failed. The city recovered early this year by luring the Rams. Former U.S.
Sen. Thomas Eagieton led the effort, which included selling �2,00o applications for the right to buy tickets but no actual tickets. The money
defrays the Rams' moving bilis — including $3o million owed for renovations to the team's old home, the venerable LA Coliseum. O DE-
TROIT: The baseball strike may have killed a push for a new stadium for the Tigers. Team owner Michael Ilitch blamed the strike when
he announced early in 1995 that his team is no longer able to fielp carry the cost for a new stadium. After some delays, Mayor Dennis
"I don't have to sell this anymore to voters," he says, "it sells
itself." This year, facing re-election, Prunetti believes it will also
help him sell himself for another term.
The county financed the project the way most communi-
ties pay for stadiums. It used an affiliate — the Mercer Counry
Improvement Authoriry — to sell ta�cable bonds on Wall Street.
The bonds are taYable because most of the proceeds benefit a pri-
vate concern, the sports franchise.
However, in Trenton, construction costs soared from $12
million to $18 million during the past year, and the final bill will probably be
more. Builders could not finish the park by opening day, so the Thunder was
forced to play nine "home games" away from home. That meant less money
came in from gate receipts, which help pay for the stadium. And whatever doesn't
come through the gate must be made up by the taa�payers.
Work was so rushed in the wake of heavy spring rains that the first attempt at
a home game fell apart. The Albany Yankees and the Trenton team refused to play
because the field was in such bad shape. Patchwork repairs made the diamond
playable for the rest of the 1994 season.
This year, the Trenton Thunder is doing better. The playing field was over-
hauled. In November, the team added a souvenir shop. And the club changed affil-
iation, joining the Boston Red Sox farm system.
This season is the acid test, when the team gets its first full season in the new
home, according to team publicist Tom McCarthy. Surrounding businesses
should see more sales. Already, attendance is ahead of last year's league-leading
average. Plus, the team is giving back more to the city, sponsoring programs like one
that enti-ces children to read books in exchange for free game tickets.
Having grown up rooting for the Yankees, cheering the likes of Roger
Maris and Mickey Mantle, Prunetti now likes the Thunder's new team affil-
iation, the Boston Red Sox. He even goes out to din-
ner with Red Sox players and management. But he
doesn't try to sway their allegiance. Instead, he says, "I
try to sell them on Trenton." ■
nxnxEw LExxEx has won awards for his coverage ofsports and
business issues in Philadelphia. He is currently on a journalism fel-
lowship at the University ofMissouri.
It, Will They Come?
Archer favored a new $229 million stadium for the team, complete
with a small shopping center. The proposal calls for the state to
carry a large burden of the publicly financed arena. But the pro-
posal has yet to win state approval. O DENVER: A six-county region.
pooled together to earmark sales for the $i4i-million Coors Field.
The new stadium houses the Colorado Rockies, the major league's
Robert Prunetti,
shown below and
on previous page,
takes in a game.
He was the impe-
tus behind getting
the stadium built.
Top left: The
walking path by
the river, behind
Waterfront Park.
attendance-record shattering franchise. O BATTLE CREEK, MICH.: """'�°"- � - -- -------�'
City commissioners voted in September to lure minor league baseball's Madison, Wis., Hatters. The city spent $i5o,0oo to improve an old park.
The team wiii repay at least haif under a three-year lease. O SAN FRANCISCO: In perhaps the biggest rejection of a new stadium, voters have
balked three times at financing a new home for baseball's Giants. Yet a city-arranged deal two years ago pieced together a new ownership that's
kept the team from moving elsewhere, like St. Petersburg. O ST. PETERSBURG: The Thunderpome became the national symbol for what can
go wrong when a municipality pays for a stadium with no team. After two years of failure, the city took over management from a private
company. In came the NHL's Lightning, arena football's Storm, and in 1998, the expansion Devil Rays baseball team.
i
s
�
by Arthur Levitt, Jr.
Municipa
�
.�.. ;.4 c�. �; �,. _ "
"There is an intensely personal side to this
business that defies modernization."
14 PUBLIC ISSUES
��. TxE sniv xx u�r.TCY FiLitvc of Orange County in early
��..
�` . December forced us all to think the unthinkable: that a major
�;� �.
�Y`"` issuer might someday break its contract with_ the public investor.
��;.
��'�': In an age that has seen a crisis of confidenc nie government,
:t�<.
�;;:" some might believe a breach of promise to bondhol�is�
���` inevitable. I strongly disagree for many reasons, but especially
�:
� because a default would�hurt issuers and taacpayers as much as
�:
investors. o Americans trust municipal bonds as they do few
other investments. A decade ago, individual investors held
about 45 percent of municipal securities outstanding; today
they hold 70 percent. This huge market is now valued at about .
$1.2 trillion. It is of critical importance to our nation's future.
It represents the schools that teach our children, the water we
drink, the power that enhances our lives and drives our econ-
omy, the roads that take us where we need to go. o I learned
something about the awesome responsibiliry of managing the
people's money from my father, who for two years served as
New York state comptroller. Iri 1974, he released a study that
examined the state's debt obligations. The report emphasized
the enormous power that governments wield when they issue
debt, in effect committing ta�cpayers' dollars for years into the
I
future. It emphasized the tremendous ethical responsibility harmful thing that could happen to our markets is to breach
borne by issuers of municipal securities. And it concluded that
"debt is at the same time one of the most important of the fis-
cal mechanisms available to government — and one of the most
vulnerable to misuse."
AToday, the Securities and Exchange
Commission is keeping a close eye on
C� 0$ e those vulnerabilities. Our antifraud pow-
that trust.
Corporate debt and equity markets have had to cope with
this time and again. But municipal bonds are different. Local
government bonds typically carry the "full faith and credit"
of the issuer. This is a pledge that investors will be repaid before
anyone else. So strong is this obligation that even during the
Depression, virtually all the debt that defaulted was repaid
with interest, and with interest on the interest. The honorable
Ey e ers extend to the municipal bond mar- history of the general obligation bond has benefited taxpay-
ket, and we will not hesitate to use them ers with low interest rates, and as a result, lower taxes.
to keep that market vital and strong. Long before Orange Since the Depression, no general obligation bond of a major
County made the headlines, the SEC was working to rid the issuer has ever defaulted. The consequences of such a default
underwriting business of political influence and to ensure that
municipal bond investors receive accurate, complete and time-
ly information.
would be hard to imagine. How would one restore a pledge
this venerable, once broken? Some predia that a default by
any issuer would hurt all issuers, impairing their ability to cre-
But our federal system excludes municipal securities from ate needed infrastructure, to anticipate revenue, and to man-
the kind of direct oversight the SEC has over corporations and
mutual funds. This design would seem appropriate because
in most instances, local governments are in a better position
than we are to judge their needs and tolerance of risk. Such
judgments are the right of states. But with rights come respon-
sibilities — responsibilities that are being reasserted today from
town halls to the halls of Congress.
Those who manage people's money have a responsibility to
taxpayers to be good stewards of the funds entrusted to them.
They have a responsibility to future generations not to fore-
close tomorrow's opportunities by overborrowing today. They
have a responsibiliry to bondholders to repay them, on time.
This profound sense of obligation may seem a relic amid
the fearsome competition in our capital markets today. But
there is an intensely personal side to this business that has
defied modernization. It is evident in the language. An invest-
ment bank or broker-dealer firm
in a stunning tower of
steel and°glass, but it is still called a
"house."
'1.
It is hard to conceive"of,a word
~�•..
more personal and emotional th`an.
"bond," which represents a
promise or agreement between two
or more people and is used of
sacred trusts: the bonds of matri-
mony; bonding with one's chil-
dren; your word is your bond. The
word "covenant," used in the Bible
age their cash flows optimally. I cannot say whether a default
might result in such harm; the only thing one can safely say
is that the ensuing higher interest rates would effectively con-
stitute a huge taac increase on the issuer's taspayers.
C a u s e It has been a difficult year in the
municipal bond market, and the prob-
Fo r lems in Orange Counry are an added
Co n c e r n cause for concern. We will survive this
crisis, as we have survived all others.
But those entrusted with public funds would be remiss not
to take this opportunity to examine how well their funds
are managed; to ensure they understand all the investments
made with that money; to determine that they are appro-
priate and prudent and place safery and liquidity above risk
and return; and to make absolutely certain that effective
to describe a compact between God and human beings, still
carries great symbolic weight.
Archaic as such terms are, they will likely outlive inverse
floaters, embedded caps and other modernisms, and with good
reason: They represent the very human needs upon which our
capital markets are built, especially the need for trust. Com-
merce runs on certainty and contract. It follows that the most
ILLUSTRA710N: JAMES YANG
internal accounting systems
are in place to sound the
alarm if the slightest prob-
lem or discrepancy is found.
State lawmakers are al-
ready moving to set standards
for public investments; it is
time for officials at every level
of government, and the citi-
zens on whose behalf they
labor, to ensure that public
money is safely and prudent-
ly managed.
It's been said that trust is won with difficulry and easily
lost. Municipal bonds enjoy a solid reputation today because
of the valiant efforts of many in the past. We will be wonhy of
that legacy only if we pass it on untarnished. ■
Reprinted by permission of The Wall Street Journal. Copyright 1995,
Dow Jones d�' Company, Inc. All rights reserved.
PUBLIC ISSUES 15
, �
� � ��
, f
�
' �'' .
_�_.::su x�, ' . . , . .
� .��4' � � . � �
. '
. ��,.: , . ' . . * ' J.
� _.,r . . , y � � . . �
5
�. . .
i'S�r '
��.�� � �' �
�
''!` . . , ", i <
::.�.H � . ' ' .
� ..
1.�.,.. �....: . . .
' �' .� . ' . � �.
t
i. �. � i,} , . �
i:
,,� '
. ' . � ...�...____ ._rt�=r-�---'--�•,"—"'
,. . _ ....,- .�
„� &;
,. '�=�
, �s
�`.
�;
�� �
� J � ..�� �� � �
h� " � � � �
�� � � s �� �`�
� � � � �
� �` �
� � � .�� � ���
��� �
>•.� -=
�� � u�
��t � '� ���'�, ;�
� f,t� �� .�, �� a�.
f. . . , .. . . - . . .
� P U B L I C W 0 R K S 1 '�I' `,
HOeS � , � � , ,�. . ;
,1' . _
Ascend�ri Rising high above the multicultural din of New York City's Upper East Side, a new research and � '
. � g� ..
clinical facili affilia .
ty ted with the Mount Sinai School of Medicme is under, construction. When
completed in 1996, it will house sc'ientists who study cellular and molecular medicine. With over M�
` 735,00o square feet, the 5256 million facility will also house administrative functions for the „
'� , medical school and The Mount Sinai Hospital,,a computer center, patients beds and clinical '
, �,
Iabs. A sense of hope and promise are captured in_New York.artist William Low`s p�ainting of
, the facility, wliich reflects the warm light of an East River sunrise. The research center was
' >, :� �,; � funded through two bond issues totaling 5200 million, both insured by�MBIA.
� �, . ` � ; , , , i
� , � `,s � . � � . �
, , � . ,,
,, , ,
r.. �
� ._._ — -- -�—..--"°.,"•� _ � � ��
�
sa. � �
a=
� -� �
� :n�. � � � ff
��� _
_. ._�_-s-- � �a. ��ti.. �
. -
�,,., . . _
. -__ --� _ . , < -:,
� � - .
� . _ �_..,�f — �_.,_.�._.
�
'��� , r"y�; '� ��a � r�� � �
�y� �w'�,�
. � -� � ��
��6���� � �
���^�%,� � �� � � ;
.,���� � �; , �. � ��x..`�����•�' ���; ��.�..� ��u;,
� � . <;
, ; � .
,
I T 0 0 L S 0 F T H E T R A D E I
F R 0 M T H E S T 0 N E A G E T 0 T H E I N F 0 R M AT I 0 N A G E
One Ci 's
�
18 PUBLIC ISSUES
�
hile scientists
theorize that dinosaurs
disappeared some 200
�illion years ago in a
taclysmic collision
ween earth and asteroids,
ence abounds that a rare
es, Computeris Dino-
�, still flourishes inside
nunicipal offices. Despite a
deliberate program of enthusiastic obliteration,
government offices often find that upgrading
their slow, lumbering, outmoded computer sys-
tems is painstaking and expensive.
But if you ask city employ-
ees in Dayton, Ohio
about computers, any men-
tion of dinosaurs is in the
past tense. Dayton, the hub
of a large metropolitan area,
is a typically successful
American city with a popula-
tion of 183,000, the sixth
largest in the state. They
have embraced and har-
nessed the computer's rich
power, having recently
moved from an outdated sys-
tem to one that adds vigor
and efficiency to their needs.
Dayton's "dinosaur" was
bought in 1983; the operating
system called Virtual
Resource Exchange (VRX)
came with the hardware.
Aside from age and arthritic
responsiveness, the system
lacked flexibiliry and the
benefits of contemporary
systems.
Dayton employs over
three thousantl people and
has an annual budget of
about S300 million. All depart-
ments depend on the city of
Dayton's financial computer.
The old system, designed in
the late 1960's, was turning
into a money pit. "It satisfied
a lot of needs," says Timothy
Riordan, Dayton's financial
director, "but there were
things it couldn't do. It was
0
� '1
I T 0 O L S 0 F T H E T R A D E 1
by
Vincent dePaul Lupiano
old technology, and changes
that had to be matle were
done with the speed of a
glacier." Dayton needed a
new system if it was to
serve itself and its citizenry
effectively.
THE SELECTION
PROCESS
After forming a selection
committee, Ernst &
Young was brought in to help
make the final software antl
hardware choice. "Our prima-
ry objective," says Riordan,
"was to pick a system that
was best for the city, not best
for us individually." At the
same time, Riordan knew that
some people, as well as
some departments, would
have to sacrifice and adjust
to the new computer system.
The criteria were simple: it
had to be a UNIX-based hard-
ware system that could run
currently available software,
and it had to be operational
within a year. "We wanted
off-the-shelf software," says
Riordan, "because a
custom-designed package
could take about three years
to implement." Dayton want-
ed to move into the future
quickly. And it did: the transi-
tion took nine months.
ILLUSTRATION:JAMES STEINBERG
PACKAGE VS. CUSTOM-
DESIGNED SYSTEMS
ompromise is the opera-
tive word when selecting
an off-the-shelf package over
custom-designed software.
Tim Riordan's desire, aside
from wanting to save the
ciry money, was to get the
new system up and running
fast. "To do that," Riordan
says, "we made some sacri-
fices because most packages
communicate and share
changes and ideas with the
whole organization," he says.
Betche's approach to upgrad-
ing is to builtl allies within the
organization, get them
involved early, seek their
input, advice, and reaction to
the plan. "Communicating
with the right people at vari-
ous levels of the organiza-
tion," he says, "will preclude
unhappy customers once
your new system is in place."
How to do this? "The usual
routes are the most effec-
tive," Betche adds, referring
to regular meetings, input
sessions, "and perhaps a
Users query the application in
their own words antl get an
ad hoc response.
The new system is a work-
horse. Aside from doing the
city's budgets, it handles req-
uisitions for supplies, tloes
the payroll for all 3,000
employees, provides tax
reports and legal reporting
requirements, contains infor-
mation on hiring, handles the
entire invoicing process antl
provides historical data that
can be formulated into
specific reports.
Dayton has come a long
way since it got its first PC.
"Our prirr�ary objecfive was to picl< a system that was
best for the city, not best for us indididually."
are not tailored precisely to
your situation. But we knew
that going in; we knew we had
to make adjustments, that
we'd face some problems."
The software picked was
SCT's BANNER Series for gov-
ernment. It runs on an NCR
System 3000 Level Four
Model 3450, an i486-based
Micro Channel system that
combines the power and fea-
tures of a super minicom-
puter with the flexibility of an
Intel-basetl PC compatible
platform. The NCR 3450 sys-
tem and its performance are
targeted to multitasking/
multiuser and server
environments.
Ken Betche, city accoun-
tant, has advice for organiza-
tions thinking of making a
similar transition to a new
operating system: "Plan,
newsletter that will keep
everyone up to speed on the
project."
THE BENEFITS
e're saving more
trees," says Newton
Sinclair, information systems
analyst for the ciry. Sinclair
definitely sees the promise of
the new system, and notes
that the more they use it, the
easier it is to use. People who
are now on-line have tlirect
access to information, they
don't have to wait for unnec-
essary written reports and
they can tailor reports to suit
themselves. "We use an artifi-
cial intelligence system," says
Sinclair, referring to an appli-
cation called BANNER Quest.
Carol Carr, a senior accoun-
tant, remembers the day in
1984 when it arrived in the
office. "It was nothing more
than a 256K computer with a
DOS operating system," says
Carr. "My boss said, `Here's
the computer, here's the
manual, here's the Lotus 123
package, learn how to use
it...and then you can train
everyone else."' Carr tleftly
implementetl her boss' direc-
tion. Today, the finance
department is using the same
worksheet she developed
eleven years ago. Some
things don't have to change. ■
VINCENT nEPAUL LUPIANO,
a New Jersey-based freelance writer,
recently published his third book, It
Was a Very Good Year: A Cultur-
al History of the United States.
PUBLIC ISSUES 19
H 0 T I S S U E S
Survcy Says:
Municipal Finance Officers Are
Conservative Investors
A recent poll of 1,300 government investment managers indicates that a large majority
are conservative in their choice of investment instruments, and most have not found it
necessary to modify their practices since Orange Counry's bankruptcy filing.
The survey, sponsored by the Government Finance Officers Association and MBIA,
found that most government investors do not support the use of derivatives or leverag-
ing for the investment of public funds. Almost half (46 percent) of those surveyed believe
that derivatives shoultl never be used, while another 24 percent said they should be used sparingly to hedge against risk.
Seventy-eight percent of respontlents do not leverage for investment purposes and 63 percent believe funds shoultl never be lever-
aged. Nearly half (43 percent) have investment policies that prohibit the use of derivatives, while 39 percent have policies that
are silent on the instrument's use.
"It was gratifying that the survey confirmed that the vast majority of public investors place safety antl liquidity of their investments
above yield," says Francie Heller, executive vice president of MBIA Municipal Investors Service Corporation, the investment manage-
ment subsidiary of MBIA.
Seminar Held on European
Municipal Financing
MBIA Assurance S.A. and International Financing Review co-sponsored a two-day confer-
ence at the end of May entitled "Financing Local Government: The Challenge for Europe."
Held in Paris, the program featured leatling figures in government and finance dis-
cussing the challenges and opportunities facing governments in Europe. New financing
methods, including the issuance of municipal bonds, were reviewed.
Among the featured speakers were Paul Volcker of James D. Wolfensohn Inc., Davitl
Clapp of Goldman Sachs, Phillipe Lagayette of Caisse des Depots, and David Elliot of
MBIA. Over l00 representatives of sovereign and local governments and the European
investment banking community attended.
For your free copy of the "MBIA/GFOA Survey of Government Investment Practices," please fax your order to
914-765-3898 or mail to Public Issues, 113 King Street, Armonk, NY 10504.
YOUR NAME
ADDRESS
PHONE
FAX
2O I�UBLIC ISSUES ' ILLUSTRA'I'ION: ROBER'C NEUHECKER
T H E M B I A M A G A Z I N E
D
a
a
m
n
0
�
a
�
�
a
D � �
3 w m
o y
� �
_ w Z
Z N
{ � C
� ''0
o � n
� z
� �.
o n
A m
n
0
�
v
0
n
�
0
z
v z `--i m
m m � C
�� � �
� �
_ .�
� ° cn D
z � ,� �
O � � m
VJ � �
�l�.l �
� �
c-�.
�
;� � .
. „
a
�
B A K E R S F I E L D
PUBLIC WORKS DEPARTMENT
I501 TRUXTUN AVENUE
BAKERSF[ELD. CALIFORNIA 93301
(805) 326-3724
RAUL M. ROJAS, DIRECTOR • CfTY ENGINEER
AUGUST 21, 1995
Dear Panorama Bluff Resident:
� D
This letter and the attached newsletter are intended to inform you
as abutting residents of the Bakersfield Sanitary Landfill of the
latest developments surrounding the closure of the City Landfill
north of Panorama Drive.
Many of you may have attended previous neighborhood meetings
sponsored by the City of Bakersfield or Kern County regarding the
issues surrounding the landfill closure process.
The City of Bakersfield recently received a Supplemental Health
Risk Assessment (SHRA) which provides updated findings based upon
soil testing from the backyards of a number of homes along Panorama
Drive. This Assessment is under preliminary review by the staff of
the Kern County Health Officer, B.A. Jinadu, MD, MPH.
Kern County together with the City of Bakersfield have scheduled an
informal neighbork�aod meeting for 7:00 p.m. Thursday evening,
September 7, 1995 to provide residents with a copy of the
Supplemental Health Risk Assessment and answer questions. The
meeting will be held at 3800 Panorama Drive, a private residence.
Residents are encouraged to formulate questions for the City,
County and Consultant team responsible for the report. Those who
cannot attend the meeting on September 7 are encouraged to call
Kevin Barnes, City Solid Waste Director, at (805) 326-3114 with
specific questions or comments. This approach is intended to
address any unanswered questions regarding the horizontal and
vertical extent of burn dump material and relative health risks to
individual residents and their families.
Sincerely,
L� / '
RAUL ROJAS�
Public Works Director
KB:slw
NOT1Cf3.D(X'
.._T'-=�=.�( � L�'�,7�i� 1, � , .
. (��._..�.�.'_'_"_ .
;I
4� �U� 2 4 �995
� �;
i ��__ =_ _.
Current Activity at the Landfill
From storm damage repairs to fire-
breaks, the City undertook several activi-
ties which improve the function and
safety of the Bakersfield City Sanitary
Landfill.
Storm Damage Repair: Severe win-
ter storms caused washouts of roadways
and drainage structures around the land-
fill. The City's eai-thwork contractor re-
paired these during the months of March
and April. Some of the main drainage
channels were improved to withstand
future storms. The City also applied
woody mulch over the bare soil on all
slopes to prevent wind and rain erosion in
the future.
Removal of Small Structures from the
Landfill Area.• The California lntegrated
Waste Management Board ordered the
City to remove small structures from the
actuat landfill areas. These included a
satellite dish and a small shed. Although
the City requested that the State allow
residenu to keep these structures, the
State would not allow this due to strin-
gent landfill regulations.
Increasing Safety with a Firebreak:
The Bureau of Land Management and
City Fire Department cut a firebreak at
the top of the bluffs behind all of the
homes overlooking the landfill, to reduce
the potential for wildfires.
Landfill Gas and Bluff Residents
Numerous repairs and improvements
are presently occurring or are scheduled
to occur in the near future.
Installation of Temporary Landfil/
gas Collection Pipe: When landfill gas
engineers found blockage in the gas col-
lection system last January, the City in-
stalled a temporary above ground pipe to
continue collecting landfill gas for the
flare unit. This pipe was also connected
to six dormant landfill gas wells to
���� ���
increase the collection of inethane gas
near the bluffs. The pipe is painted light
tan to blend with the natural landscape,
and the pipe will remain above ground
until a permanent pipe system can be in-
stalled out of view. City workers inspect
the pipeline at least twice per week and
collect any moisture which accumulates
in the low points. This is done to keep the
flow of gas movin�.
New Landfil! Gas Wells: The City
has hired the Kleinfleder, Inc. to upgrade
the old landfill gas coliection system,
tryin� to reduce landfill gas concentra-
tion. The first step in this upgrade was the
replacement of six main landfill gas
wells. The new wells are state-of-the-art
construction and have recently been con-
nected to the existing vacuum line. This
has increased the amount of gas collected
and sent to the flare.
The Kleinfelder Company has also
been retained to design and install a com
prehensive gas collection and disposal
system. Work is presently underway to
install that system on the surface of the
landfill.
Soil Sampling and
Health Risk Assessments
In February and March of 1995, the
City hired Metcalf & Eddy to collect soil
samples from near-surface soils within
the backyards of residences located along
Panorama Drive. These soil samples were
collected and analyzed to identify the
presence of certain materials related to
wastes dumped at the landfill. Materials
identified include low concentrations of
metals (such as copper, lead and nickel),
dioxins and furans.
Metcalf & Eddy then conducted a
health risk analysis to predict potential
health effects from lifelong exposure to
the materials identified in the soil sam-
ples. The results of the health risk analy-
sis are provided in a draft report entitled
Bakersfield Sanitarv Land�ll Burn Dump
Health Risk Studv. Su�plemental Report.
The report states that very low concentra-
tions of these compounds have been de-
tected in the soil samples. The closure
plan for the landfill calls for at least four
feet of clean soil cover to be placed over
the burn dump material. The cover is de-
signed to reduce the potential longterm
health risk to negligible levels and help
collect landfill gases.
Closure Plan and EIR
Work on the closure plan for the
Bakersfield City Sanitary Landfill is in
progress. Additionally, an Environmental
Impact Report (EIR), is being prepared
on the closure plan and the public will be
notified when the Draft EIR is completed.
A public hearing will be held on the Drafr
Closure Plan EIR and public comment on
the Draft EIR will be taken during this
hearing. The City and County have sched
uled a neighborhood meeting to give resi-
dents addirional information regarding
the specific results of the Metcalf & Eddy
Health Risk assessment and to answer
any questions residents may have regazd-
ing continuing efforts to complete the
landfill closure process. This meeting has
been scheduled for September 7, 199�.
The meeting location will be provided
when available.
For Further Information
If you or you know someone who
would like to be on the mailing list for
the Panorama Bluffs Update newsletter,
please call Kevin Barnes, City of Bakers-
field Solid Waste Director, at (805) 326-
3114. Mr. Barnes can also provide addi-
tional inforn►ation on any of the topics
discussed in this newsletter.
� ,,:: �
`Y
WASTE MANAGEMENT DEPARTMENT
DAPHNE H. WASHINGTON, Director
2700 "M" STREET, SUITE 500
� BAKERSFIELD, CA 93301-2370
Phone: (805) 861-2159
, FAX: (805) 325-9882
Mr. Kevin Barnes
Solid Waste Management Director
City of Bakersfield
4101 Truxtun Avenue
Bakersfield, CA 93309
Dear Kevin:
August 22, 1995
RESOURCE MANAGEMENT AGENCY
� - ° JOEL HE/NR/CHS, AGENCY DfRECTOR
Alr Pollutlon Control DlsMet
Engineering 8 Survey Servkes Depertment
Plann4�g DepartmeM
Transportatlon Management Departmsnt
Waste Management DspaAment
August 1995 Newsletter for Residents Adjacent to the BCSL
File: 22112
Attached are 40 copies of the subject newsletter and a corresponding mailing list. If you have any
questions, please contact Mr. Jim Sayer.
DHW:JVS:am
Enclosures
i:\letters\LA48 jvs.am
Sincerely,
DAPHNE H. WASHINGTON, Director
./ /,f?�
By: Jim Sayer
Solid Waste Management Specialist I
PRINTED ON RECYCLED PAPER
�
B A K E R S F I E L D
MEMORANDUM
August 21, 1995
T0:
FROM:
ALAN TANDY, CIT�AGER
JOHN.W. STINSON, ASSISTANT CITY MANAGER
SUBJECT: PROPOSED CHARTER CHANGE RE. LAYOFF PROVISIONS
As part of the current Memorandum of Understanding (MOU) with the City's
miscellaneous bargaining unit (SEIU Local ?00) the City agreed to the fol�owing:
"The City shall place on the next City-wide ballot language to remove
layoff provisions from the City Charter. Layoff procedures shall be
contained in the Bakersfield Municipal Code."
As a nart of the same MOU the City and Union agreed on language to be included
in the Municipal Code pertaining to layoffs.
The reason for the proposed Charter change was that the Charter is somewhat
unclear regarding certain layoff issues and there were particular concerns
expressed about the loss of seniority if an employee changed City departments.
The existing Charter language does not allow for the transfer of seniority if an
employee changes departments. This has caused some concern from employees who
may be asked to transfer or accept a promotion to another department. Under the
current rules they would not receive any recognition of time worked in another
department for seniority purposes. There is another concern as this charter
language only applies to those covered by miscellaneous Civil Service. The
Police and Fire civil service sections of the Charter have no similar language.
Therefore, miscellaneous employees covered under those civil service rules would
not be subject to the same rules. This creates an unequal administration of
seniority rules within the bargaining unit. Both the union and management agree
that it is preferable to cover layoff provisions within the Municipal Code rather
than the Charter. There is also language in the section related to demotion and
temporary promotion, however, this language relates to layoffs generally and is
not needed ahsent the layoff provisions. This proposed change also makes sense
due to the fact that personnel rules such as these are often subject to revision
by the courts and it will be easier and quicker to make our rules conform to
current law if they are contained within the Municipal Code rather than the
Charter.
Therefore, staff is recommending that Section (217b)lOb of the City Charter
pertaining to Layoff or �emotion and Temporary Promotion of Employees in
Subordinate Positions be repealed.
�
B A K E R S F I E L D
Alan Tandy • City Manager
August 21, 1995
VIA FAX 916/327-3523
The Honorable Ken Maddy
The State Senate
State Capitol Building, Room 305
Sacramento, CA 95814
I;�- =� _: - •:�:1
Dear Senator Maddy:
AB 49XX would require that cities pay for LAFCO staffing.
LAFCO in Kern County is an unnecessary, duplicative layer of government needed only because
state law does not distinguish between metropolitan/suburban areas where boundary disputes
are common and between areas like we are where boundary disputes are virtually non-existent.
We are already forced to fund LAFCO through exorbitantly high fees we must pay on all
annexations and other items they process. Further, they impose unnecessary costs on us by
requiring meaningless, unnecessary studies.
We have no role in their governance or oversight. It is a wasteful, unnecessary layer of
government. We already pay fees which fund their staff.
If you want to do something to save counties and cities money, do away with the requirement
for LAFCO - Please, do not compound an already bad situation by transferring the cost to us.
Sin rely,
A an Tand
City Manager
AT.alb
_---
City of Bakersfield • City Manager's Office • 1501 Truxtun Avenue
Bakersfield • California • 93301
(805) 326-3751 � Fax (805) 324-1850
�
/95 16:36:39
AUG-21-95 f10N 14 � 37
->
LEAGUE OF CA CITIES
885 324 1858 Alan E. Tandy Page 881
FAX N0, 9166588240 P, Ol
�; ���r
4�■��
n
�;� League of California Cities
�.����
�����. -^ .
August 21, I995
To: All City Managers
Re: �B 49 XX (Granlund) Local,A,ge�ncy Fvrmation CommisRio� Funding
URGENT! Co�atact atl Assembly Mewbers and Urge a NO vote on
��g 49,� -- Couz�ty Bi�l Would Kequire Cit�es to Pay for Connty
LAFCO Staff
AB 49� (Gran�u�zd) would rec�uire all cities to pay for LAFCO staffing. Most LAFCOs are
cwnrently staffed by county ezzaployees. Many cities �Zave l�ad problems g�tting even ha�ded
tzeatzzient for ann.exations az�d oth�er LAI;CO ap�xovals. For example, county-dom�nated
LAFCOs k�ave witheld annexation appxovals unless the County zecaeves z�ost or all of futur�
property and sales tax revez�ues.
AB 49�c would have c�t�es pay for the �rivilege o� be�z�g b�eld hostage by counties. �k�e League
bel'aeves cr�tical LAFCO reforms are needed be�ore cities should be �oxced to �ay for these
county doaaa�z�ated pzoceediz�gs. Ciries should imm,edxately contact their Assemb�y Members and
urge them to VOTE NO o�, AB a9xx unless Leagu� ainuendments are take�n. The
amendme�ts i�c�ude:
• City zepresentation on fl1e LAFCO shou�d be iz�creased to reflect the propo�rfxon of residents
which live in incorporated areas. F'or example, i£ 2/3 of a county's reside�nts lxve xz�
incorpozated cities, 2/3 oFLAFCO members shou�d zepxesent cities.
• Annexation revenue pass t�uough agzeement provisions in statute should guarantee tk�at caties
receive no �ess than the�x pcoportionate share oi AB 8 prope�ty ta� xevenues.
� County development should be ba.�red wxtltin a city's s�here of influez�ce unaess the city
couzacil appzoves it.
WARNING: This bi11 was introduced x� 'tk�e Second Extravrdinary Session, Therefore this bill
does nat need to meet the normal legislative �otace �d b�earir�g requirements. It is cxuc�a� to
im�nnediately contact your repre.�entatives and urge tb�eix NO votes on 49acx.
CONFERENCE REGISTHA710N OFFIGE HEAD�UARTERS SOUTHERN CA[.IFORNfA OFFICE
BOX 1519, LAFAYE7TE, CA 94549 1400 K STREET, SACRAMENTO, CA 95814 eo2 EAST MUNTING30N DR., SUITE C
(510) 283-21t3 (916) 658-8�00 MONpOVIA, CA 91016
�nx is�ol �es-�e� � �e�a� aos-�a+s
— -- — - - - -- - -•--•--° ----- F.AXJS�]FlF6A.A7�f.1- ---••° --• ----. _.._ - -•------• ......-•-• °- --•-
� � �
B A K E R S F I E L D
Alan Tandy • City Manager
August 21, 1995
VIA FAX: 916/327-3523
The Honorable Ken Maddy
The State Senate
State Capitol Building, Room 305
Sacramento, CA 95814
Re: Opposition to SB 61 (Kopp) City Charter Amendments
Dear Senator Maddy:
This correspondence reinforces the City of Bakersfield's opposition to SB 61. We remain
opposed to this change in the reasonable standards established in 1988 legislation. The
1988 legislation is both consistent with the standard required for initiatives that propose to
enact city ordinances (which is 10 percent of the registered voters) and with the process for
state statutory and constitutional measures.
As you are aware, a city's charter is equivalent to the state's constitution. Just as it requires
a higher number of signatures to qualify a proposed constitutional initiative than it does to
qualify a statutory initiative, it should also take a higher number of signatures to qualify a
proposed charter amendment by initiative than it does to qualify a proposed ordinance by
initiative.
The current standard is consistent and reasonable. We do not feel there is a need to
change existing law and, therefore, oppose SB 61 and any attempts to override the
Governor's veto of it.
Si
� /
n Tandy �
City Manager
AT: j p
cc: Honorable Mayor and City Council
Dwight Stenbakken, League of California Cities
City Attorney Judy Skousen
Administrative Analyst Trudy Slater
City of Bakersfieic: • City Manager's Office • 1501 Truxtun Avenue
Bakersfield • California • 93301
/R(1S1 "2�ti_27�1 • F�,. Is2n�l Z�n_� a�n
Distribution: Letter of August 21, 1995, Opposition to SB 61 (KOPP) City Charter Amendments.
The Honorable Ken Maddy
The State Senate
State Capitol Building, Room 305
Sacramento, CA 95814
The Honorable Jim Costa
The State Senate
State Capitol Building, Room 2054
Sacramento, CA 95814
The Honorable Brian Setencich
The State Assembly
State Capitol Building, Room 2158
Sacramento, CA 95814
The Honorable Trice Harvey
The State Assembly
State Capitol Building, Room 3173
Sacramento, CA 95814
. _.._ '?:
�oR �st,��A
• o�,
�t *� '�
!
e�s � ��
GOVERNOR PETE WILSON
August 17, 1995
Mr. Alan Tandy
�akersfiel3 Ci�y i�ar�agEr
1501 Truxtun Avenue
Bakersfield, California 93301
Dear Mr. Tandy:
Thank you for your correspondence concerning Senate
Bill 61.
Your comments were helpful to me in reaching my deci-
sion to veto this legislation. I am enclosing a copy of my
veto message for your information.
Thank you again for taking time to share your views
with me.
Enclosure
Sincerely,
�
PETE WILSON
ti
.
.. : . ..
.. ,.. : ,;,. .,
_ R� � 9
; ��� _ . ;`; �–___�z.��_�
i���`� �s�������'� ��r=�� .
_�,---.—� - ---_ ._
iSACRAMF.j�7*i0, CALIFORNIA 95814 �916) 445-2841
\
�,.:, ; .
GOVERNOR'S OFFICE
JUL 3 I 1995
To the Members of the California Senate:
�. _ _
_ ,- - -- -- - - -�. ___ _ -- -- - _----- -- - - - - - -
_ - - _—__.�__��_ : : .__.
. _ _ _ _ . _ . _-- _ _.. ___ _-- - -
I am returning Senate Bill No. 61 without my signature.
This bill would repeal elements of existing law which
requires that a proposal to amend or repeal a city charter or a
city and coun�ty charter which is proposed by a petition be signed
by 15� or 10$ of the registered voters of the city or city and
county, respectively.
The charter of a city is its constitution, presumptively a
document subject to infrequent change. In the absence of any
compelling evidence that current petition requirements are
unachievable there appears insufficient basis for amendment.
- - - - - Cordially,
___ �—_ _..____ _ _ _ . __. __. �
PETE WILSON
GOVERNOR PETE WILSON • STATE CAPITOL • SACRAMENTO, CALIFORNIA 9SS 14
,: ,.`=>��l�rL7/95 17:19:84 -> Bakersf ield Page eBl
•---•��-�•— AUG-17-'95 THU 14:17 ID:INTER GOU AFFAIRS TEL N0:916 323-3749 #t039 P01
�
�
�
�.C� � � e �
t�v����r
Uffice OF Intergovernmental Affair�.1400 Tenth Str�et,
3acramenta. CA 958i4 (916) 3Z3-5446
FA7C (9Ib) 323-3749
- ----�---=_---=-- - -
,ii ln��`_'��_,I__._�
��..
d.
�
�� AUG I 81995
Dl�te: 81 I7/ S�5 Faceimile Altone Number.
To: �i�Y' �ana,gers a,nd County Admi'nfistrative pffiCer� �._ �
A�
17ro • Carnl Whi te " Di ct •
Numb+� af Pages ttndtuiirg this cav+ex page): �
SpecLlI�hv�r�vns:_ Auqust ptn�ince Bu1]�ttn .� pypA�o ,+�a#r , ,
Ii yot� dv not rereiv� �11 pagea of tl�is'tl�imile, ptease cotttact: Mary Fong, 323-5446
I' AUG-18-'95 FRI 14:20 ID�INTER GOV,_AFFAIRS TEL N0:916 323-3749 �059 P01 _,_„_ .,�—�
�.
�.... _. ....... . . ,. . ....
,. .., ..
�
•
. �
Ru88ell S. Gould, Qirector
Calitornla DOp�rtment of Finence Au9ust 1985
��onomi� U date
� p � .
, � ;
■ Otfi�cl�l dsta on nonep►icultural wage and salary reelstratlons of �ew auto� �nd liqM trt�cks have
�mploymer�t show 20,000 new �obs In July, for s �sen 1 perCeht in ��ilfomla, whll� �ales natlon-
yea�r-ovsr•year galn of 1.1 perceM. However, the a11y fell by. naA►ly 7 pero8nt.
Ovpl�rtmsrri of Finance's �nterlm �enchmark se- ,
nes, whlch incorporates more �ecent employer ■�nstruct;on dete sre mlxed. New home am�truc-
payroll tax roporta, I�dicates e�nuat prowth of 2.1 �, lion, whbh was depMSSed eariy in the yea�� by wet
p�rc�nt, with a quarter of a mill�on �ew jobs added weather end Incrsseed mo►tqaQs retes� has yet to
over ths Iest yee��. ' rocovmr. �espke� loah r�tss !n ths 7.5-p�rpsnt
■ Most major Mdustry q►oup�xcept manuta�tur-,'
inp and povemmenl—pested �al�s in July c�m-
pared to .fune. Trade was up 1 a,dQO; const�ua
tlo� ro�e 4.700; and serolc�g atlded.5,800�job�.
A 5.700 drop In ma�ufact�rl�g wae targely ett�lb-
' utable to the weather-related ettects ot late tree
frutt and tomato harvests on food processing em•
ployme�t.
� Callbtnla's unsmployment rats,
be�ed on a seperate and amell
:urvey, of households, rose
s�ipnt+y to �.9� pArcent, from 7.s
percent In June. An increas� of
thfa maqnftuds is not considered
sl�nificent, '9{ven the small
�ampl�a slzg. . Juty's jobless rate
I� down �harply trpm the year-
seMlsr �raadinp o18.8 percent,
I
.naT
I ;
i„A�
� �.� �,
!pA
• F011owinp slower qrowth In the �'�'�'��
rainy season, retall sales picked I
ran�, perrrik� wero .issued M� kss than 7��000
� r�ew u11it6 �t an annulll �tA in June: Year-to-d�te
homebutiding ip nunnjnp 2� psrcAnt bslow th� 199�1
level ot 87,000 unka� wlth weakn�st evk�enl In bath
elnple end•ri1ulNpl6 unks, . The value ot no�ro41-
dentlal Constnactlon, on the otheir fiand, ros! d p�t-
` cent to� ihe tirst slx months ot, the ye�r. A 6.7.
peraent �aln ki Indu�trl8�l bulidinp Is pAAiwlerly
encourapinQ--indlcatlnp ilkeiy Iuture peln� In
me��ufectutinp employment.
CM� lN�N tNN
(In.�NHom o1, Dop�n;
0� Atl��l�d?
up 8.� psr�csrn trom the yea�r e�r• ,.,ep- --,-.-.-��,�..--� M-� ., ..,.,,, , :., ., . , ...N., , . ..., .......,. , , . � . ; ...
�
lier in May, besed on U.S. Depart- ..�.. .._.__..----,��_._.._.._...,.,.._.._..�.._,. ....., ,
mant of Commerce'� manthly ' . ,
survey. Year-to-date, California sales qrowth�has ■ Throu�h the flrst hsM.p! ths ysar� Inflatbn in C�11-
been in Iine with the �stlonal pac�-6 percent for }omlti romal� bw. Thd CsIIMt�Is Gone�umsr Prbs
Ca�lifomia oomperod wlth � percent for 1he U.9, Indsx was .up 1.9 poroant throtqM June-� /ull
Hcwever, ths stAte oontlnue6 to ou�pertorm the psroernaqs polnt bsiow ths 2.� p�tant �tlonal
rost vf the country {n Auto 6a�les. Year-to•date� #�ro�Be, ,
...� �-
.. _._.._ .— .. ._...._.... �
� � � �', �f� �tir �� ��cJr��'.
�. ` �` Po1�t-It° rand feuc lrana�+lttal memo 7871 �w�pN ►� i
I� •�
:
�
A�-� ' _
AUG-18—'95 FRI 14:21 ID:INTER GOU AFFAIRS TEL N0:916 323-3749 #059 P02 �
� � Mo�nthly Gash
�
Report
.
• Gen�ral Fund eqency cash for July
wa8 �216 mlllior� above the Budget
Act firoCast of �2�023 mililon. Most
ot thle yaln Is attr{butable ia cash
flow fro►n hipher than expected
sales tax recelpts, and is expected
ia be cflsst In August.
■ Per�onal income tax rece�pts we�e
�61 mfllion above the month's
toreca�t of �1.129. Wlthholding
was s38 milllon above forecasi,
other ��ceipts and retunds provlded
reve�us galns of �1 millfon and s22
million, rsspsctively.
�e
�
i �
�
� M
�
i p
i
. q
�
n
�
�
i
•
�����»
- ���
. . ._..-.-----�--;
�
,
;
,u�► w� Ma a.� Mw o. � n�, ��w rn► +w►
��
•�aur aFancnr
, ,
-�----...�____.,_..__...._.....................,..., ...,........,.. ,. . ..._._.. . .
■ 3aled e►nd use te�x revenues were �
s186 million above the month's forecast of $541 mltlbr�. This 4ain eppears to be attributede to ceah tlow,
and is anticipated to be .offset by bwer than expected receipls In Aupun. .1uly revenue represents fhe flret
pan of th� final psymeM for the 2nd quarter, which w� due �t lhii and o( July, By mid-August� all of the
2nd quaner recelpts will be procesaed and a cleerer picture witl havA developed.
■I Th� b,�nk & corporation tax waa $10 millian baiaw Rhe mi�nth'a tcxacest of l�17B mlllior�. July is rnat a ma�ar `
moMh fo� thls tax a�d ths ehortfall I$ not conSidered to Qe 9iqn11iCant. �
■ Miscellaneous revenu�� were $23 milllon below the rrronth'a torecast of �177 mfllfan. .
Hl6f! Qen1p�A�sn o1 AoW�I �nd rer�eul A{prlap �n�rsl ��nA IAiwnw�
(Ovll�lslh n�1111o1Nq , �
rYLr i I 1rWF1P�1►1� '
P�M 1 P�rc«a
RNenw Bowr.� Faa�►tl .AO1vN C�en� Qien0�1 ( Far.��rt Aotwl Ohrp Cfw�p�
Paison� Ineen»
B•Mi R w�
AsrN► i Gorpontlon
Mur�►�0�
E��.r•
a+��s� :,.,eo te, e.ax
6�H 729 1b8 .9I:e16
176 186 •10 8.11i
Q 6 3 1bp•01r.
� 96 � �q,614
AbOh01b B1Mt�t 8� 7A -1 � �1.0%
Ppol� Monry IN�rsst 18 14 �-12,61�
Tobeeoe 15 ib 0 0,0%
Hcn� Asclnp � 9 0 0.0'X
Cth�r �4 66 -19 •A6�7ri
Tot�l f2,0Y3 �2,230 �IS ' 10.7'K
i�,t� it,vo tai �,�x
6A1 7�0 /q J4.0lp
17� id! •10 �6.7'N�
s d a .,eo.vx
� i6 �1 •Y.d7i
pb aMl
18 /1
16 � 16
�, i
�1 E6
f�,G23 �,�9!
•1 r1.0x
s •�x.ax
0 0.0% �
U D.09�i
•1! �6.716
1�{A 10.1x
• fiH f� rn p�ncy o�6h repor! arb tM d�h m�y dlwr Irom tln OaMioINr11 nopl p qw �tsn1 � '
rha ca.n noN�wd bY sG+nci�a ►yi* na yc bw� t�pixt�p te ih� OaN�01Mr. E�opl br Qlrr
a�w�, row�uw �n� ruwM In QesC��!Ar1p aq�r al MON yMR �MqM►'M#►. Ta1Ma hMSr nPt N14
dw to eeimdinp. 1'fw 1oho�sf 1� Rom t1� M�r pN1�kf1. �tlM�d 1or tHb tp6 �uA�r� Ap,
For mo're in earifaN �s c3awtayna� E�rriir� e� Rk� Rm � � j5, .�e�s �. 8�merao. �1 or cRl� (AtB) 323-08�19.
�n.«,,;..„ �. . . '