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HomeMy WebLinkAbout11/21/03 B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM November 21,2003 TO: Honorable Mayor and City Council. Tandy, City Manager /~7-'/z~.//-;~_.~. FROM: Alan SUBJECT: General Information 1. Each day the news from Sacramento evolves, but here is the best we know regarding short term potential financial impacts on the City. Our new governor has stopped the vehicle license fee increase. He is personally supportive of restoring the backfill, so that local governments, including Bakersfield, do not have to cut safety and other essential services. It appears, however, that the backfill is not automatically restored, and that action of the Legislature, presumably to cut some other costs to free up money, would be necessary. Early indications are that will be a difficult path - and the Governor's office, to date, has not recommended specifics as to how it should be done. If that pattern continues, beginning as early as December, the City of Bakersfield will stand to not receive about $912,500 a month in budgeted General Fund revenues. In the end, will it be restored? Will we get back payments for the months missed? No one knows! The scenario could range from a permanent loss of about $11 million a year in General Fund money to complete restoration. The Governor's proposed bond issue in March, should that become the source of the backfill, would leave us in a position of not knowing for four months, and then how the March vote would come out would also not be known. Please remember, also, the context of this potential action in light of other major financial patterns. We have just received an actuarial study showing that we need to increase General Fund Workers' Compensation payments by $2.1 million next fiscal year to cover the actuarial needs. Our General Fund pension costs are expected to rise by $8.4 million next fiscal year. Our historic total General Fund revenue growth totals about $7.0 million a year. While we received a positive first quarter sales tax distribution, even if we substantially exceed historic levels (which is not yet verified), we would not approach the combined liabilities of the $8.4 pension costs, plus $2.1 Workers' Compensation costs, which total $10.5 million. THAT ALSO DOES NOT BEGIN TO ADDRESS THE ISSUE OF HOW MUCH, UP TO $11 MILLION, THAT MIGHT BE A RISK DUE TO THE MOTOR VEHICLE TAX! Honorable Mayor and City Council November 21, 2003 Page 2 Should the news get better in Sacramento, we can always adjust in a positive or upward way. Should we go through a lingering period of uncertainty when we are losing the $912,500 per month, we are better off to plan early, as best we can, to avoid compounding the problem by having less time to deal with the loss. Please remember that we have already cut back 54 full time permanent positions, over 200 part-time and temporary positions, overtime, travel, and other discretionary spending. All departments are hurting and are challenged to provide timely and comprehensive services with those cutbacks! Under those conditions, there is only one opportunity to scale back on a contingent basis, for any period of time, during which our vehicle fees are not being received and as long as the question of the backfill is uncertain. That opportunity is an unusual number of retirements that are anticipated to take place in the upcoming December-January time frame. We would have to take a position of not filling them until the motor vehicle backfill is restored. Based on average salaries, 30 retirements that would go unfilled would save $125,000 a month of the $912,500 amount. Most, if not all, departments will find it difficult to operate with the loss of that many positions, on top of what they have already lost in a community growing at record levels! Nonetheless, of the options available to us, this appears to be the best thing to deal with a part of the problem. Staff will be monitoring the situation in Sacramento, We will be working on a more detailed budget update with more refined numbers and will keep you advised. 2. Articles from the November 19th Los Angeles Times and November 20th Sacramento Bee are enclosed about the Legislature's dilemma in finding a way to fund the VLF backfill. 3. An update from Public Works on the Carrier Canal repair project is attached. Staff and our contractors have worked very diligently to get the 19th and Oak Street culvert repaired and report that, barring any unexpected delays, Oak Street will be opened and fully operational by the end of today, Friday, November 21st. Public Works and the Water Department are currently working on a complete inventory of canal crossings of our roads. That will include ownership information, as various canals have different owners and information on the potential financial responsibilitY for any repairs that may be necessary. This issue varies on a case by case basis, based on ownership, age, and conditions under which the crossing was installed. Field inspections by Public Works have already started on those that have been identified by a records search as being metal - and, thus, have the higher likelihood of problems. All will be methodically inspected, and a periodic inspection schedule will be set up and adhered to thereafter. 4. This is belated notice that we did receive the $220,000 for the swim fundraising group, and the $50,000 from SMG that were promised. Each came in some time ago, but I forgot to pass on the information. By the way, the ice rink is well along, Honorable Mayor and City Council November 21, 2003 Page 3 and the structural steel on the pool side is going up. The big concrete pour on the Olympic pool is scheduled for next week. 5. SMG has announced the hiring of Mark Cockerell as the Director of Figure Skating for the Ice Sports Center. Cockrell has an impressive background, including competition at the Olympic level. The press release from SMG is attached with more details. 6. A status report from KernCOG regarding the Rosedale Highway street maintenance project is enclosed. 7. Per the enclosed report from Alan Christensen, staff from Recreation and Parks held a meeting with representatives from some of the local tree contractors and PG&E last week to review the new permit process and revised ordinance. 8. The latest status report from EDCD on the use of the $2 million in funds allocated for projects in the southeast is enclosed for your review. 9. Responses to Council requests are enclosed, as follows: Councilmember Carson · Report on actions taken regarding lighting concerns and abandoned cars on Brite Street; · Follow-up to citizen concern regarding lack of heat at residence on Monterey Street; Councilmember Benham · Staff actions concerning several issues on Pacific Street; Councilmember Ma.q,qard · Clarification regarding the rear fence construction at the Tuscany Development; Councilmember Couch · Report on funding methods for the construction of future fire stations; · Status on request for determining the criteria to hire new Fire personnel; Councilmember Sullivan · Police enforcement actions concerning commercial vehicles parking along VVible Road south of Hosking AT:rs cc: Department Heads Pam McCarthy, City Clerk Trudy Slater, Administrative Analyst B A K E R S F I E L D OFFICE OF THE CITY MANAGER MEMORANDUM November 21,2003 TO: All Department Heads ,~ FROM: Alan Tandy, City Manager SUBJECT: Mid-year Budget Update Please refer to the attached memo from General Information regarding the fiscal impacts of the State budget. Since we may go through a lingering period of uncertainty when we are losing VLF we are better off to plan as best we can early to avoid compounding the problem by having less time to deal with the loss. In order to deal with the immediate interruption of VLF revenues as well as other broader budget issues, I am asking that each department provide the following information: · Identification of retirements for your department including positions, titles, and anticipated retirement dates. This would include any anticipated between now and February 2004. · A list of current position vacancies (as of November 24, 2003) and any anticipated through the end of this fiscal year, and timing thereof. Once this information has been submitted we will convene as a group to consider appropriate courses of action. The requested information is to be provided to John W. Stinson, Assistant City Manager no later than Wednesday, November 26th. S:\03-04Budpro\Mid-year budget update.doc the seal of California at the conclusion of swe~ c~;~,~, Immediate Anxiety, Delayed Gratification From Rollback By EVAN~I'IALPER AND SUE Fox T~mes Staff Writers SACRAMENTO -- The $4- billion tax cut ordered by Oov. Arnold Schwarzenegger on Mon- day brought relief to California car owners, but left open how state lawmakers might now help' local agencies pay for police, fire and other services. Asked where the Legislature would find money to reimburse cities and counties as Schwarz- enegger has promised, President Pro Tern John L. Bur- ton (D-San Francisco) said, "He ~ain't getting it from me. "We don't have the money:" Burton ~-~d~. "That's a problem be-t-ween him and local governs_ ment.' ~ governments have re- lied on the vehicle license fee to ~ help pay for police, fire and otheI services. But many residents jected over the summer whf~n ~ former Oov. Oray Davis hilt'ed ~ the fee by 200%. Without the ~n- crease, Davis had said, the state would not have enough money to keep making the payments.. On Monday, Schwarzenegger made 'good on his campaign pledge to roll back the so-called car tax, lowering by $158 the amount paid by typical Caiifor. nia motorists based on the valu, of their cars. The tax cut takes ef- fect immediately, but because of administrative and 'it could be 90 days before see lower rates in their registra. tion and renewal bills. Schwarzenegger,s executive order also directed that go to the 3.1 million drivers wh~ have already paid the highe: rates -- which have been in effect for only a month -- and that the stat~ continue paying local gov- %~ ~h~ monthly allot- ments they were getting from the tax. To do either, however, [See Fee, Page A21 ] ROllback Worries Local Officials [Fee, from Pdge Al] sots who worked on it have sug- requires the approval ora skepti- gested it could be as high as $20 cai Legislature. Officials at the Department of billion. Democrats have expr6ssed Motor Vehicles, meanwhile, are reluctance to sign off on such a scrambling to determine how to proposal, and some are 'gearing deal with Schwarzenegger's or- up to again push for taxes on the der. They have been given no in- wealthy, tobacco and sales -- as structions on when exactly driv- they didlast year. They note that ers should 'begin paying the the interest costs on a 30-~ear lower rate. bond of that size could be an- '~Everything is up in the air other $20 billion, and that bor- until we get instructions from rowing does not close the deficit, the governor,' said DMV spokes- but pushes it into the future. man Bill Branch. "Unless and "The question is, ifhe can find until they receive instructions to a way to get Republicans to the contrary, our advice to driv- agree we need to pay $2 for every ers is to play it safe" and pay the $1 in services for 30 years," said full rate on their bill. Sen. Richard Alarcon (D-Sun -- Branchsaki-that-not-doing so --Valiey);"then-why cargt heTlnd-a-- could quickly result in penalties way to come to the conclusion that offset the savings from the that paying a dollar today is tax break. Paying a car tax bill worth $2 in the futdre?" more than a month late results Many .drivers have been inapenaltyof60%oftheoriginal eagerly awaiting the promised bill, plus. S30, he said. tax cut. Vehicle sales in Califor- As local officials nervously ex- nia were down 33% in October, pressed hope that thenew gover- three times the rate that they' nor would keep his promise to dropped nationwide, according .make them whole, leaders of the to the California Motor Car Deal- Democratic-controlled Legisla- ers Assn. Officials there sug- ture said they had seen no plan gested that the decline was a re- for doing that and warned that sult of buyers in California they would resist cutting other waiting for Schwarzenegger to services to come up with the bring the tax down, as he did roughly $3.2 billion to compen- MondaY.. sate for the rest of this budget Now local governments are year. eagerly awaiting details on how "For the life of me, I can't fig- their paymentswillkeep coming. ure out how they're going to do it The governor "has assured us when.they're already on their that we will not be hurt," said Los rump," said Larry Parr~h, the Angeles County Sheriff Lee Ba- chief executive officer of River- ca. "I think there will be some side County. "God love 'em." creative backfilling going on." The car tax was a central is- Others weren't so sure, par- sue in the campaign to recall Da- ticularly given the lack of detail vis, whose administration raised that accompanied Schwarzen- it by executive order in June, tri- egger's move. pling the fee paid by motorists to . "I'm very concerned," said help plug a $38-bill~on budget Los Angeles City Councilman gap. Tony Cardenas, a former state' · "Hard-working Californians, assemblyman who chaired the who want sate, reliable transpor- Assembly Budget Committee. tation for their families were hit "He made a campaign promise especially hard by this regressive without thinking about the con- tax," Schwarzenegger said in a sequences." statement a~cer si .gging the or- Not all of the local govern- der shortly before 12:30 p.m. ments use the money for fire- "Now, they will have more money fighting. Some areas, such as Los in their pockets to pay for Angeles, Fresrio and San Diego needed goods and services." counties, have set up special dis- Since the car tax rate went up tricts that fund fire protection Oct. 1, the state has collected through propertytaxes. nearly $500 million in higher Ii- But for those that use general cense fees. Most of that has al- fund money to fight fires -- such ready been sent to cities and, as Riverside County, which lost counties, according to officials at 17 houses in the recent wildfires, the state controller's office, or the city of Los Angeles, home Los Angeles County, the to 3 million people -- the reduc- state's largest jurisdiction by far, tion in the vehicle license fee stands to lose $700 million per could take. millions of dollars year if the state fails to replace away from their fire depart- its car tax revenue, ments. The money pays for many For the city of Los Angeles, basic services, such as sheriffs the tax cut will result in a 5% patrols and jails, beach life- · across-the-board budget cut if guards, public parks and librar- the state fails to make up the dif- les, probation camps for juvenile ference, according to City Ad- offenders, and prosecution of ministrative Officer BillFujioka. crimes by the district attorney. The city already endured a "We can't raise taxes, so our $44-minion loss this year due to a only option is to cut services," three-month delay in collecting said David Janssen, Los Angeles the increased revenue from the County's chief administrative of- tripling of the car tax. Statewide, ricer. "It would have a devastat- local governments lost about $1 lng effect on Los Angeles County, ' · billion during that funding gaP, primarily on public safety, parks although the state has promised and libraries." to repay them by 2006. Some or all of the money Los Angeles city officials are could be provided through a pro- considering joining a lawsuit to posal Schwarzenegger aides said block the tax repeal ff alternate he would unveil today to borrow revenues for cities are not ear- billions l~om private investors marked, Cardenassaid. and pay it back in coming years. Times 'staff writers Patrick Although the administration is McGreeVy, Dan Morain, Jeffrey declining to offer specifics on the L. Rabin and Nancy Vogel con- size of the borrowing plan, advi- tributed to this report. Los Angeles Times: Immediate Anxiety, Delayed Gratification From Rollback Page 1 of 3 http://www.latimes.com/news/politics/recall/la-me-cartaxl 8novl 8,1,7110407.story?coil=la-home-headlines advertisement Immediate Anxiety, Delayed Gratification .... From Rollback By Evan Halper and Sue Fox Times Staff Writers November 18, 2003 SACRAMENTO -- The' $4-billion tax cut ordered by Gov. Arnold Schwarzenegger on Monday brought relief to Califomia car owners, but left open how state lawmakers might now help local agencies pay for police, fire and other services. Asked where the Legislature would find money to reimburse cities and counties as Schwarzenegger has promised, Senate President Pro Tem John L. Burton (D-San Francisco) said, "He ain't getting it from me. "We don't have the money," Burton said. "That's a problem between him and local government." Local governments have relied on the vehicle license fee to help pay for police, fire and other services. But many residents objected over the summer when former Gov. Gray Davis hiked the fee by 200%. Without the increase, Davis had said, the state would not have enough money to keep making the payments. On Monday, Schwarzenegger made good on his campaign pledge to roll back the so-called car tax, lowering by $158 the amount paid by typical California motorists based on the value of their cars. The tax cut takes effect immediately, but because of administrative and legal issues, it could be 90 days before drivers see lower rates in their registration and renewal bills. Schwarzenegger's executive order also directed that refunds go to the 3.1 million drivers who have already paid the higher rates -- which have been in effect for only a month -- and that the state continue paying local governments the monthly allotments they were getting from the tax. To do either, however, requires the approval of a skeptical Legislature. Officials at the Department of Motor Vehicles, meanwhile, are scrambling to determine how to deal with Schwarzenegger's order. They have been given no instructions on when exactly drivers should begin paying the lower rate. "Everything is up in the air until we get instructions from the governor," said DMV spokesman Bill Branch. "Unless and until they receive instructions to the contrary, our advice to drivers is to play it safe" and pay the full rate on their bill. http ://www.~atimes.c~m/new s/p~~itics/reca~~/~a-me-cartax ~ 8n~ v ~ 8~ ~ ~8 3 ~5 ~ ~~print.st~ry? c~~~=~a-h~me-hea~... 11/18/2003 Los Angeles Times: Immediate Anxiety, Delayed Gratification From Rollback Page 2 of 3 Branch said that not doing so could quickly result in penalties that offset the savings from the tax break. Paying a car tax bill more than a month late results in a penalty of 60% of the original bill, plus $30, he said. As local officials nervously expressed hope that the new governor would keep his promise to make them whole, leaders of the Democratic-controlled Legislature said they had seen no plan for doing that and warned that they would resist · cutting other services to come up with the roughly $3.2 billion to compensate for the rest of this budget year. "For the life of me, I can't figure out hOw they're going to do it when they're already on their rump," said Larry Parrish, the chief executive officer of Riverside County. "God love 'em." The car tax was a central issue in the campaign to recall Davis, whose administration raised it by executive order in June, tripling the fee paid by motorists to help plug a $38-billion budget gap. "Hard-working Californians who want safe, reliable transportation for their families were hit especially hard by this regressive tax," Schwarzenegger said in a statement after signing the order shortly before 12:30 p.m. "Now, they will have more money in their pockets to pay for needed goods and services." Since the car tax rate went up Oct. 1, the state has collected nearly $500 million in higher license fees. Most of that has already been sent to cities and counties, according to officials at the state controller's office. Los Angeles County, the state's largest jurisdiction by far, stands to lose $700 million per year if the state fails to replace its car tax revenue. The money pays for many basic services, such as sheriffs patrols and jails, beach lifeguards, public parks and libraries, probation camps for juvenile offenders, and prosecution of crimes by the district attomey. "We can't raise taxes, so our only option is to cut services," said David Janssen, Los Angeles County's chief administrative officer. "It would have a devastating effect on Los Angeles County, primarily on public safety, parks and libraries." Some or all of the money could be provided through a proposal Schwarzenegger aides said he would unveil today to borrow billions from private investors and pay it back in coming years. Although the administration is declining to offer specifics on the size of the borrowing plan, advisors who worked on it have suggested it could be as high as $20 billion. Democrats have expressed reluctance to sign off on such a proposal, and some are gearing up to again push for taxes on the wealthy, tobacco and sales -- as they did last year. They note that the interest costs on a 30-year bond of that size could be another $20 billion, and that borrowing does not close the deficit, but pushes it into the future. "The question is, if he can find a way to get Republicans to agree we need to pay $2 for every $1 in services for 30 years," said Sen. Richard Alarcon (D-Sun Valley), "then why can't he find a way to come to the conclusion that paying a dollar today is worth $2 in the future?" Many drivers have been eagerly awaiting the promised tax cut. Vehicle sales in California were down 33% in October, three times the rate that they dropped nationwide, according to the California Motor Car Dealers Assn. Officials there suggested that the decline was a result of buyers in California waiting for Schwarzenegger to bring the tax down, as he did Monday. Now local governments are eagerly awaiting details on how their payments will keep coming. http://www.latimes.com/news/politics/recall/la-me-cartax 18novl 8,1,830510,print.story?coll=la-home-hea¢... 11/18/2003 Los Angeles Times: Immediate Anxiety, Delayed Gratification From Rollback Page 3 of 3 The governor "has assured us that we will not be hurt," said Los Angeles County Sheriff Lee Baca. "I think there will be some creative backfilling going on." Others weren't so sure, particularly given the lack of detail that accompanied Schwarzenegger's move. "I'm very concerned," said Los Angeles City Councilman Tony Cardenas, a former state assemblyman who chaired the Assembly Budget Committee. "He made a campaign promise without thinking about the consequences." Not all of the local g°vemments use the money for firefighting. Some areas, such as Los Angeles, Fresno and San Diego counties, have set up special districts that fund fire protection through property taxes. But for those that use general fund money to fight fires -- such as RiVerside County, which lost 17 houses in the recent wildfires, or the city of Los Angeles, home to 3 million people -- the reduction in the vehicle license fee could take millions of dollars away from their fire departments. For the city of Los Angeles, the tax cut will result in a 5% across-the-board budget cut if the state fails to make up the difference, according to City Administrative Officer Bill Fujioka. The city already endured a $44-million loss this year due to a three-month delay in collecting the increased revenue from the tripling of the car tax. Statewide, local governments lost about $1 billion during that funding gap, although the state has promised to repay them by 2006. Los Angeles city officials are considering joining a lawsuit to block the tax repeal if alternate revenues for cities are not earmarked, Cardenas said. Times staff writers Patrick McGreevy, Dan Morain, Jeffrey L. Rabin and Nancy Vogel contributed to this report. If~ want other stories on this topic, search the Archives at latimes.com/archives. Click here for article licensing and reprint options Copyright 2003 Los Angeles Times http://www.latimes.com/news/politics/recall/la-me-cartax 18novl 8,1,830510,print.story?coll=la-home-heac... 11/18/2003 This story is taken from Politics at sacbee.com. Car tax cut now in effect, DMV says Refunds are planned 'for those who paid earlier -- but funding is uncertain. By Ed Fletcher -- Bee Capitol Bureau - (Published November 20, 2003) The state Department of Motor Vehicles, taking a cue from Gov. Arnold Schwarzenegger, showed its tight turning radius this week by announcing that owners could immediately register their vehicles at the recently slashed car tax rate. The owners of an estimated 5 million cars and trucks in California who have received registration notices at the formerly higher rate have been invited to do the math themselves and keep the difference. Without the change, the department's antiquated computer system would have required owners to wait until Dec. 19 to benefit from the GOP governor's action Monday rescinding the tripling of the vehicle license fee. "We think that is a major breakthrough that will please a lot of people," DMV spokesman Bill Branch said. "! have never seen things move this quickly." Less certain is how owners who paid the higher rate after the fee was increased Oct. I will receive a refund. The DMV Web site tells customers who have paid the full amount that they will "automatically receive a refund by mail beginning in early 2004." But Senate President Pro Tern John Burton said there isn't money for refunds. "We'd have to appropriate about $3 billion we don't have," Burton said Wednesday. "It can't go out until someone tells us where the money is coming from." The Schwarzenegger administration is counting on the Legislature, which has been called into a special session, to find the money. "We are saying (the Legislature has) to deal with it," said H.D. Palmer, a spokesman for the Department of Finance. "There is going to have to be an appropriation." For five decades, the vehicle license fee was set at 2 percent of an automobile's value -- until the Legislature in 1998 lowered the amount owners were required to pay. In June, former Gov. Gray Davis' Department of Finance pulled a "trigger" restoring the fee to its previous level because of the state's budget problems. But Schwarzenegger rescinded the increase on his first day in ~~ffice' as he had~pledged during the gubernatorial recall campaign. ---' / The rollback leaves local governments -- which use revenues from the vehicle license fee to pay for police, ) fire protection and other services -- with a $4 billion budget hole. Schwarzenegger said the state should ~ "backfill" the money for local governments, but Burton said there is no money to do that. / '~Uteanwhlle, the administrative costs ot issuing refunds to the roughly 3.1 million car owners who have already paid the higher car tax rate would be $10.3 million, officials said. Fair Oaks resident Jerry Smith, who recently paid the higher vehicle license fee on his wife's Chevy Tahoe, . said, he was glad to hear the state would allow people to immediately pay the lower amount. The fee this year for the 2000-year model Tahoe was $508, compared with less than $200 last year, he said. "! know we need the money, but it is not fair to go after one group," Smith said. Smith added that he understands why refunds might be delayed. "It makes sense to me .... You can't just say, 'Pay for it,' and figure out where it comes from later," he said. ~[n a related decision, the DMV said car dealers can start selling vehicles at the reduced fee rate and hold on to the payments until the department can reprogram its computers. Some dealers had blamed a recent slump in sales on the higher fees. "It is a great thing," Rich LaChance, sales manager at .lohn L. Sullivan Chevrolet in Roseville, said about the DMV's change. "~It should get the car business going again in this state." About the Writer The Bee's Ed Fletcher can be reached at (916) 326-5548 or efietc;.her~sa.cbee...c;~.ff~ Go to: ~.a_.cb~ / ~Ba_c_k_t_o__.s_t_o_ry.. 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Box 15779, Sacramento, CA 95852 Phone: (916) 321-1000 Copyright © The Sacramento Bee From: Stuart Patteson To: Rhonda Smiley ' Date: 11/21/2003 9:36:39 AM Subject: Item for Gen Info Memo- Carrier Canal Status Status of Carrier Canal Repairs As of today, Friday, 11/21, The box culvert at 19th St. & Oak St.: - Oak Street to be fully open and operational by the end of today. -The reinforced concrete box culvert is completed and aprx. 90% backfilled. - The Jim Burke parking lot is paved and landscaping curb installed. Parking lot lights and landscaping are being installed. - Curb & gutter and sidewalk on the north side of 19th is poured. - Since work has been ongoing 24/7 for over 3 weeks, no work will be done during Thanksgiving and the weekend after (11/27-11/30). Four Culvert Rehabilitation Work: - All culverts have been cleaned. - Reinforcing steel is being placed in the Truxtun near Westwind and Corp Yard culverts. - Shotcrete will start to be placed on Monday, 11/24. Stuart Patteson, PE Construction Superintendent City of Bakersfield 661-326-3049 e-mail: spatteso @ ci.bakersfield.ca.us CC: Gary Roush; Jack LaRochelle; Marian Shaw; Raul Rojas; Rick Millwee; Steve Walker From: Alan Tandy To: Rhonda Smiley Date: 11/21/2003 10:45:20 AM Subject: more gen info Public Works and the Water Department are currently working on a complete inventory of canal crossings of our roads. That will include ownership information as various canals have different owners, and information on the potential financial responsibility for any repairs that may be necessary as this issue varies on a case by case basis based on ownership, age and conditions under which the crossing was installed. Field inspections by Public Works have already started on those that have been identified by a records search as being metal- and thus higher likelihood of problems, first. All will be methodically inspected and a periodic inspection schedule will be set up and adhere to thereafter. From: Alan Tandy To'. Rhonda Smiley Date: 11/21/2003 8:28:14 AM Subject: gen info additions Belated notice that we did receive the $220,000 for the swim fundraising group and the $50,000 from SMG that were promised. Each came in some time ago but I forgot to pass on the information. By the way the ice rink is well along and the structural steel on the pool side is going up. The big concrete pour on the olympic pool is scheduled next week. 2.canal, sinkhole update Media Release Date: November 19, 2003 Contact: Centennial Garden, Scott Norton (661) 852-7301 FOR IMMEDIATE RELEASE Former Olympian named Director of Figure Skating at Ice Sports Center of Bakersfield Bakersfield, CA-The Ice Sports Center of Bakersfield announced today that Mark Cockerell has - been named the Director of Figure Skating. A Junior National, National and International coach for the United States Figure Skating Association for the past eight years, Mark brings over 25 years of professional and Olympic figure skating experience to Bakersfield. As the Director of Figure Skating, Mark will create, cultivate and manage all aspects of the figure skating developmental and competitive programs as well as act as program coordinator for all shows, competitions and training at Ice Sports Center of Bakersfield. Lars Larsen, Director of the Ice Sports Center of Bakersfield said, "To attract someone of Mark's · caliber to a smaller market is significant and we are very excited to have him here. His experience in both professional and competitive figure skating will be a tremendous asset to the Ice Sports Center" A member of the 1984 United States Olympic Team, Mark and has earned numerous national and international accolades for his outstanding performances and has been featured in Sports Illustrated, USA Today, Skating Magazine and the LA Times. In becoming the Director of Figure skating, Mark had this to say, "I am very excited to be back home in California and am looking forward to helping kids reach their potential and achieve their dreams; whether it be getting the Gold or learning to skate" Mark currently sits on the Board of Directors for the Professional Skaters Association and is a member of several committees of the United States Figure Skating Association. For more information on the Ice Sports Center of Bakersfield call 661.852.7401 or visit their website at www.bakersfieldicesports.com. Kern Council of Governments November 18, 2003 Vice-Mayor David Couch City of Bakersfield 1501 Truxtun Avenue Bakersfield, California 93301 Dear Vice-Mayor Couch: The Kern Council of Governments (Kern COG) last updated you October 24, 2003, on the status of a safety project currently in progress on Rosedale Highway. We are forwarding new information on key points related to the status, progress and the anticipated completion date. The Caltrans Resident Engineer assigned to this project has updated staff on the project status. The newest information provided in this letter is marked in bold text. General Project Description: This project is funded in the State Highway Operations and Protection Program, which is the highway maintenance program for Caltrans. The project limits are from Van Buren Place to Camino Del Rio, to rehabilitate the roadway. Project components include: Traffic Signal at Patton Way;, guardrail replacement; pavement replacement from Van Buren Place to Camino Del Rio; striping and pavement markers; raised median work and some traffic signal and lighting modifications. As of Tuesday, November 17, 2003, Caltrans staff provided the following update on information regarding the status of this project; the project is listed as 70% complete; the original timeline called for the project to be 65% complete at this time. The Contractor is now on schedule. Mid September 2003 - This work is completed. ^" 2. End of October 2003 - This work is completed. ~ .... .............................. t,' .............. I"' ~J .... 3. November 2003 - Striping and pavement markers work should be completed. 4. Mid January 2004 - Guardrail work should be completed. 5. February 2004 - Remaining asphalt concrete work in the raised median will be completed. 6. March 2004 - The project is scheduled for completion. This is the original programmed scheduled benchmark and the contractor is committed to meeting that completion date. 7. IVlid March 2004 - Signalization and righting work should be compteted. Kern COG staff will cont/act Caltrans for updates on the progress of this project. Should you require more information. please contact Joe S/~,~maglia at ~61-2191 or istrama.qlia~kemcoq.om. Sincerely '/ ~/'" - ,,.. /./' ~,- /../ Executive DireCtor Kern Council of Governments 140~ It)th Street, Suite 300, Bakersfield, Catit0rnJa 93.301 (661) 861-2191 Facsirnire 1661) 324-8215 TTY t66l) 832-7433 www. kerncog.org B A K E R S F I E L D Department of Recreation and Parks Date: November 20, 2003 To: Alan Tandy, City Manager From: Alan Christensen, Interim Director Recreation and Parks~_____./~ Subject: TREE CONTRACTOR'S PERMITTING MEETING The staff's Urban Forester held a meeting on November 18, 2003 with twelve (12) people representing eight (8) local tree contractors, PG&E, and two (2) non- contractors. There were over fifty 50) letters sent to local tree related contractors informing them of our meeting dates of November 18, December 9 and January 20th to discuss the new tree permit and the revised city ordinance. This information letter was also sent to tree related business's as well so they could inform their customer's of these meetings. A brief review of the new ordinance and permit process was explained which everyone understood the need for implementation. The inclusion of ISA standards to any work performed in the City was not a problem to those in attendance but the question of how all of this would be enforced was asked of staff. We asked those in attendance if there were any other issues that concerned them. Several items were mentioned. The group felt the City needed to strengthen the business license process by including Workers Compensation compliance. They also stated the need for individuals to be fully aware of the responsibilities they assume when working without a contractors license. These issues were all based on operating costs of legal and illegal business operators with these legal operators having a higher operation costs. They stated their interest was a level playing field for all competitors and not a reduction in competition. Those in attendance appreciated being invited to this informational meeting as well as the opportunity to discuss issues between contractors and non- contractors. The Department also provided a Spanish language interpreter for those in attendance that spoke only Spanish. It was suggested that we contact the Spanish radio stations with a PSA informing them of future meetings so we may attract more of the Spanish speaking business's that may be involved with trees. B A K E R S F I E L ITYMANAGER'SOFFtCE Economic and Community Development Department MEMORANDUM November 10, 2003 TO: Alan Tandy, City Manager ~,'~'"'"' FROM: Donna L. Kunz, Economic Development Director SUBJECT: Status Report on S.E. Projects- $2 Million This memo updates the use of funds ($2 M) for the SE area. The Lakeview Avenue Streetscape project was completed in spring of 2002 and the status of the remaining five activities is listed below. Part of the funding for the SE projects below is underwritten by the Section 108 (HUD) program, and the deadline for expending these funds is January 31, 2005. Public Works engineers have re-evaluated the cost of the work proposed for Brundage Lane, California Avenue and Union Avenue projects. They have estimated that the funds earmarked for the three activities will not adequately complete the work originally proposed. Public Works has recommended the projects be phased or additional funds be considered. Brundaqe Lane Street Improvement Project Funds in the amount of $325,000 of Section 108 funds for construction only were budgeted for street improvements. They include installation of median streetscape, sidewalk and street lighting improvements on Brundage Lane from Chester Avenue to Union Avenue. The PW Department is the lead agency. California Avenue Street Improvement Proiect Funds in the amount of $413,500 of Section 108 funds for construction only were budgeted for street improvements. They include installation of median streetscape, sidewalk and street lighting improvements. The Section 108 funds will be primarily targeted along California Avenue from Union Avenue to the railroad tracks - west of Washington Avenue. The PW Department is the lead agency. S:\SE Community Revitalization\SE Activity Reports\SE Timeline Nov.doc Union Avenue Street Improvement Project Funds in the amount of $61,500 of Section 108 funds for construction only were budgeted for street improvements which include installation of median streetscape, sidewalk and street lighting improvements on Union Avenue from California Avenue to Belle Terrace. The PW Department is the lead agency. East California Avenue Career Traininq Facility Section 108 funds in the amount of $200,000 for design was budgeted to develop a career training facility on three acres of land owned by the Housing Authority of the County of Kern (HACK) located at east California Avenue and south Robinson Street. The facility will potentially encompass a training center, childcare center, police satellite office and office/retail space. The total construction square footage is estimated at 22,600 square feet, with the training center occupying 18% of the total area. HACK has partnered with Golden Empire Affordable Housing, Inc., Fred Consulting, and Grubb & Ellis to develop the project. After posting a RFP/RFQ in August, 2003 HACK's Board of Directors will consider an agreement with the Legaspi Company to help in marketing and realty services for the East California Avenue project. Total development costs are estimated at $3 M+. As the lead entity in the development team, HACK is attempting to arrange for additional financing to underwrite the total project cost (see S.E. Business Loan fund below for additional information). HACK is the lead agency for the East California Avenue Career Training Facility. S.E, Business Loan Fund A Statement of Interest letter was mailed last fall to over 400 business and property owners along four major commercial corridors in Southeast Bakersfield, where current and future streetscape improvements are being planned (i.e. Lakeview Ave., East California Ave., Brundage Lane and Union Avenue). The statement identified about $740,815 in CDBG funds was originally available for qualified City economic development projects. However, about $110,000 of ED funds were recently used from this fund (via Council amendment) to construct Union Ave & Brundage Lane off-street improvements. Off-site improvements will benefit a McDonalds at Brundage and Chester Avenue, and a new commercial retail building at 600 Union Avenue (both activities are within the southeast redevelopment project area). HACK has requested, and staff is considering, additional assistance for their East California Avenue Career Training Facility in the form of a $300,000 + SE business fund loan to a private developer entity which may take over the project from HACK. EDCD is the lead agency for the business loan fund. xc: Raul Rojas, PW Director Bill Carter, HACK Ex. Director Vince Zaragoza, Principal Planner S:\SE Community Revitalization\SE Activity Reports\SE Timeline Nov.doc TO: ALAN TANDY, CITY MANAGER FROM: ERIC W. MATLOCK, CHIEF OF POLICE ~ DATE: November 18, 2003 SUBJECT: Lighting and Abandoned Cars on Brite Street Council Referral No. 637 (Ward 1) Council Member Carson requested staff look into complaints of abandoned cars, drug activity and the need for lighting in the area of Bright Street where it dead ends at South Oleander. Contact Council Member Carson to view the area. Council Member Carson's request was referred to our Operations Division for the issue of abandoned vehicles, and the Investigations Division to investigate the reported drug activity. This portion of Brite Street is a shared jurisdiction between the City and the County. Traffic Sergeant Gary Moore has advised the City portion is very well maintained and there are no abandoned vehicles. However, one abandoned vehicle was observed in the 2300 block of Brite Street in the County jurisdiction. Narcotics officers have surveyed the area for drug activity on several occasion~ and no activity was revealed. In addition, Captain Mahan contacted Council Member Carson and discussed the area in question. The constituent reported drug activity occurring in vehicles parked on the remote portion of the road adjacent to the constituent/property owner. The area in question was formerly owned by the property owner and was given to the City. This property is in the process of being returned to the property owner who will erect some type of road closure which should solve of the problem of vehicles being parked in the area. Investigations Division staff will continue to monitor the area for drug activity during the transition of the property ownership. EWM/vrf B A K E R S F I E L D MEMORANDUM TO: Alan Tandy, City Manager FROM: Jack Hardisty, Development Services Di DATE: November 14, 2003 SUBJECT: Lack of Heat in Apartment/Referral No. 632 Councilmember Benham requested staff follow-up on a previous request by Aaliyah Alimayu regarding the lack of heat in apartment at 319 Monterey Street, Apt. A. Code enforcement made contact with the tenant on November 14, 2003. It was determined that the tenant had never contacted P.G.&E. to schedule an appointment to have her gas turned on. The gas meter had not been locked by the owner. The tenant contacted P.G.&E. and has an appointment scheduled for November 24, 2003, to have the gas turned on. BAKERSFIELD FIRE DEPARTMENT TO: ALAN TANDY, CITY MANAGER FROM: ~'RON FRAZE, FIRE CHIEF DATE: 11/20/2003 SUBJECT: PACIFIC STREET CITIZEN CONCERNS Council Referral No. 000631 (Ward 2) Councilmember Benham requested Police Department address the issue of dogs running loose from 414 Pacific Street; Public Works to address the need for paving gutters on Pacific Street; and Fire Department to remove shoes which have been thrown onto the phone lines in the vicinity of Inyo, Flower and Lincoln Streets (denoting gang activity). Regarding the removal of shoes thrown onto utility lines, due to electrical hazards, the Fire Department cannot operate our equipment near these types of overhead lines. I have contacted PG&E and they will contact me in approximately 10 days when they have assessed the site. RF/kec p:~nemos\Fraze\Council Referral11-5-03 Pacific Street Citizen Concerns.doc TO: ALAN TANDY, CITY MANAGER FROM: ERIC W. MATLOCK, CHIEF OF POLICE/,~ DATE: November 19, 2003 SUBJECT: Pacific Street Citizen Concerns Council Referral No. 631 (Ward 2) Council Member Benham requested Police staff address the issue of dogs running loose from 414 Pacific Street; Public Works to address the need for paving gutters on Pacific Street; .and Fire Department to remove shoes which have been thrown onto the pl'ib6~-Iines in the vicinity of Inyo, Flower and Lincoln Streets (denoting gang activity). In response to Council Member Benham's request, Animal Control personnel have contacted the occupants at 414 Pacific Street in an effort to assess the issue of dogs running loose in the area, and work with the owners to take corrective measures as appropriate. Animal control is providing extra patrol in the area, and citizens have been advised to call staff when they observe the dogs running loose. In addition, Captain Mahan has advised that our gang unit monitors this area regularly and there have been no noticeable increases in gang activity. The meaning of shoes hanging on the phone lines has several interpretations; one is that the residence flagged deals narcotics; another is gang mischief like graffiti. Our Special Enforcement Unit will continue to monitor the area. EWM~d B A K E R S F I E L D M E M 0 R A N D U M .... RECEIVED TO: ALAN TANDY, CItY MANAGER NOV t 7 2003 FROM: ~:~:r'TANLEY C. GRADY, PLANNING DIRECTOR C!TM MANAGER'S OF?":?.' DATE: November 17, 2003 SUBJECT: FENCE AT TUSCANY DEVELOPMENT Council Referral No. REF000633 COUNCILMEMBER MAGGARD REQUESTED DEVELOPMENT SERVICES DEPARTMENT PROVIDE CLARIFICATION OF THE REAR FENCE CONSTRUCTION IN THE TUSCANY DEVELOPMENT. Vesting Tentative Tract 6000 is more commonly referred to as Tuscany. It is located east of Alfred Harrell Highway and north of Highway 178. It was approved in 2002 with a site specific wall and landscape plan for its borders along the arterial and highway. The rear fence would be a typical builder's fence which is usually wood or, based on the rules in the area, the builder may offer rod iron view fences as an option. City ordinances do not require perimeter fencing for single family homes but does regulate location and height when fencing is constructed. City ordinances do require walls as mitigation to reduce noise impacts in residential subdivisions from adjacent noise sources and to provide a buffer between commercial and residential uses. SG:djl P:\CCReferral\Ref000633.doc B A K E R S F I E L D OFFICE OF THE CITY MANAGER MEMORANDUM TO: Alan Tandy, City Manager ~/~ ~~' November 14, 2003 FROM: John W. Stinso~ssistant City Manager SUBJECT: Funding for Construction of Future Fire Stations Councilmember Couch requested that staff look at methods to fund the construction of future city fire stations. In the past there have been several methods used. Over the last 20 years the city has constructed three new fire stations. The city has typically utilized one time monies such as federal revenue sharing (no longer available), pension refunds, special property tax payments or other one time funds to pay for the construction of new stations. However, in recent years there have been capital outlay funds (again typically one time sources) set aside as part of the annual budget process designated for the construction of future stations. Due to current budget circumstances it is becoming increasingly difficult to set aside significant amounts toward new station construction. While the practice of setting aside funds on an annual basis takes several years to accumulate the needed construction funds it has provided funds necessary to acquire property and construct future stations. This method provided funding for construction of Fire Station #15 in the southwest and $670,000 has been set aside for a future fire station in northeast Bakersfield. This approach reflects the Council's pay as you go budgeting philosophy; however, funding is contingent upon the availability of one time monies. Alternative Methods to Fund Fire Station Construction The following are several alternative funding methods the Council may consider regarding funding fire station construction. General Obliqation Bonds The city could issue general obligation bonds for construction of new fire stations. There are some potential difficulties associated with this approach. First is the requirement for 2/3 city-wide voter approval of the bonds and the additional property tax to pay the debt. It is highly unlikely that a sufficient number of citizens' city-wide would be willing to tax themselves to pay for fire stations needed because of new development in other areas. S:~JOHN\Funding Future Fire Station Construction.doc Debt Financing Another alternative would be to utilize some method of debt financing such as Certificates of Participation (a form of leasing) or other debt instrument. The difficulty with this approach is the cost of debt issuance, interest costs and the funding required for repayment of the debt. This approach could result in getting stations constructed sooner but at an increased cost compared to the current pay as you go approach. Aisc, a General Fund revenue would have to be designated for repayment of the debt. This would further restrict the Council's budgetary flexibility, particularly in tough budget times. Additionally, the amount to be financed would need to be considered. Issuing Certificates of Participation for less than $3 million has high issuance costs which could make this financing method undesirable. The ability to issue additional debt is also impacted by any current debt outstanding. Community Development Block Grant Funds Community Development Block Grant (CDBG) funds can be used to a very limited degree for fire stations. However, stringent federal regulations limit the areas where these funds can be used and they must benefit areas with Iow and moderate income residents. It is not likely that any of our newly developing areas would qualify under federal requirements for use of these funds. Grants The city sometimes utilizes grant funds to fund public facilities. However, there are not currently any state or federal grants available, that we are aware of, to fund new fire station construction. Most current grants for fire services generally relate to enhanced or special service delivery (hazmat, weapons of mass destruction, etc.) or special homeland security related programs rather than basic service functions such as constructing stations. Development Impact Fees Another approach used by some communities is to implement development impact fees for the construction of new fire stations needed due to the construction of new homes and businesses. This would be a program similar to the current transportation and park development fees required of new development. Similar to those programs the city would be required to develop a plan identifying where and when the new stations would be needed and the nexus between the new development and the need for the new fire stations. Staff would also have to develop cost estimates for the proposed facilities and calculate the proportionate share to be borne by new development. It is important to note that even if a new fee were enacted in the near future, many developments currently approved or vested would not pay the fee and it could be several years before sufficient funds accrued for station construction. S:~JOHN\Funding Future Fire Station Construction.doc Due to the Joint Powers Agreement for fire protection with Kern County there would be an additional layer of complexity to establishing a development impact fee for fire stations since the County protects some areas of the City and the City protects some unincorporated areas. A metro area-wide fee similar to the transportation impact fee could be considered with concurrence by the County and clarification as to service areas and future station needs for both the City and the County. The amount of such a fee would be dependent on the cost of construction; the number, types and sizes of stations planned for; and the allocation of those costs among various property owners receiving the benefit of the fire stations. Costs would most likely be applied to both residential and commemial properties since they both receive a benefit. It is likely that development interests may not be supportive of implementing such a new fee due to the additional costs added to development of new homes and businesses. Additional Considerations It is important to point out that irregardless of the method used and our ability to accumulate funds for the construction of a new fire station there are other costs that must be considered. These include equipping the station, (some of the larger equipment - engines, ladder trucks, etc. can be included in some of the financing options), station operation and maintenance costs (communications, utilities, fuel, etc.), and by far the most significant ongoing cost, the salaries and benefits for employees staffing the station. So, even if we were to use debt financing or implement a development fee to fund future fire station construction, we do not have a similar mechanism to pay for the operational costs and staffing for the station. Our ability to provide the on-going funds for these costs is dependent on our General Fund resources which are currently being targeted by the state for severe reduction or capture. This uncertainty does not enhance our ability to plan ahead for future service needs such as this. S:~.lOHN\Funding Future Fire Station Construction.doc B A K E R S F I E L D BAKERSFIELD FIRE DEPARTMENT November 21,2003 TO: Alan Tandy, City Manager FROM: ~"~on Fraze, Fire Chief SUBJECT: FORMULA FOR FIRE PERSONNEL Council Referral #000640 (Ward 4) Coun¢ilmember Couch requested staff provide him with a formula for Fire personnel; a general policy for hiring Fire personnel. Hiring Fire personnel to staff new fire stations has always been a challenge. Due to the nature of our service and shift rotations, to open an Engine Company takes nine personnel and to open a Truck Company takes 12 personnel. To hire all these personnel in one fiscal year can be quite a burden. The challenge is to find a method to determine when fire stations need to be opened and how to hire new staff in tiers. This is a complicated process which will involve developing criteria of when fire stations are needed. Such criteria could include factors such as a percentage of build-out, response times, or area saturation. Union concessions, Management concessions, and Council support would also be part of the solution. The City Manager will appoint a committee to study the issue that will include John W. Stinson, Stan Grady, and me. BAKERSFIELD POLICE TO: ALAN TANDY, CITY MANAGER MATLOCK, CHIEF OF POLICE FROM: ERIC W. DATE: November 17, 2003 SUBJECT: Big Rigs Parked on Wible Road Council Referral No. 638 (Ward 6) Council Member Sullivan requested staff look into the issue of big rigs parking along Wible Road south of Hoskings. Coun6~[ ~mber Sullivan's request was assigned to Commericial Enforcement Officer Bill Ware. Please refer to the attached memorandum by Sergeant Gary Moore for complete details. EWM/vrf attachment: Memorandum - "Council Referral #638," dated 11/14/03 BAKERSFIELD POLICE MEMORANDUM November 14, 2003 To: Lt. T. Taylor, Traffic Section From: Sgt. G. Moore Subject: Council Referral #638 Officer B. Ware has checked this area on a regular basis over the past few weeks and will continue to do so. He has written 3 parking citations to big rig,trucks which have been parked in the area. He has requested afternoon PSTs to monitor the area as well and cite violators. Officer Ware spoke to a neighbor in the area identified as Randy Cosey and informed him to call in if trucks park there while he is not in the area. We will continue tG--monitor the area. We have sent letters to the registered owners of vehicles that we cited to attempt to gain compliance of our parking regulations at that level.