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HomeMy WebLinkAbout02/27/04 B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM February 27, 2004 TO: Honorable Mayor and City Council Tandy, City Manager /~7-by FROM: Alan SUBJECT: General Information 1. Eric Matlock has done an absolutely superb job as Police Chief. We wish him the best in his retirement, but we have no intention of treating him like a lame duck until May, at least! 2. An interesting column is enclosed from the Los Angeles Times by Steve Lopez. It shows how some mayors have opposed Proposition 57, because the debt is being paid off by city sales tax. It also predicts that the slick advertising campaigns in support of the measure will prevail. We will know Tuesday. 3. Another Los Angeles Times article is enclosed showing that the City of Los Angeles is undergoing very deep cuts in their budget -.similar in nature to ours. 4. At the last Council meeting, I indicated that I might send out our future budget projections in this week's mailing. Because the impact of the referendum next Tuesday is potentially dramatic with regard to that subject, I have had second thoughts. When we know whether it's pro or con on Propositions 57 and 58, we will adjust accordingly. 5. Attached is an e-mail from the Director of the Ice Sports Center with attendance figures for the various programs. It is clear that local residents are very supportive of the facility. The numbers are impressive! 6. Enclosed is an article from Tuesday's L.A. Times regarding the U.S. Supreme COurt's refusal to review a ruling that state corporate taxes impede interstate commerce under certain circumstances. It could worsen the State budget deficit by $650 million, if the State has to provide tax refunds and interest to corporations affected by the ruling. 7. An update on the use of the $2 million funding that was allocated to projects in southeast Bakersfield is enclosed. 8. In the March issue of Inc. Magazine profiling the Top 25 Cities for Doing Business in America, Bakersfield is ranked No. 5 among Medium Metro Areas. A copy of the article is enclosed. Honorable Mayor and City Council February 27, 2004 Page 2 9. On March 2nd, Stockton's City Council will be asked to authorize a $37.3 million bond sale that will help finance a 10,500 seat arena and stadium. The article from the Stockton Record is enclosed. 10. The Solid Waste Division partnered with the Keep Bakersfield Beautiful organization on February 14th to do a clean-up at the corner of East Belle Terrace and Washington. A press release with information about their collaborative effort and photos showing the positive results of their hard work are attached. 11. The Water Resources Manager reports optimistic news, as a result of the storms this week. The Kern watershed received almost 3 inches of water. The updated snow gauge numbers show a higher projection for the spring run off. At February 1st, it was 72% of normal. With the recent storms, and if we have average future conditions to April, we have moved up to about 90%. That is better than the last 5 years have been. There will be updated projections after the field snow survey is completed this weekend. 12. Responses to Council requests are enclosed, as follows: Councilmember Carson · Results of an investigation for a possible funding source provided by the National Center for Missing and Exploited Children; · Information regarding criteria for transferring funds within the budget; ., . · Feasibility of reestablishing the southeast PAC; Councilmember Ma._cl._clard · Analysis and staff recommendation of public versus private contracting for certain janitorial services, fire extinguisher inspections, CPR classes, and painting of City facilities. AT:rs:al cc: Department Heads Pam McCarthy, City Clerk Trudy Slater, Administrative Analyst Los Angeles Times: Hey Voters, Don't Worry, Be Happy! Page 1 of 3 http://www.latimes.com/news/local/la-me.lopez27feb27,1,5930401.column?coll=la-headlines-califomia STEVE LOPEZ / POINTS WEST Hey Voters, Don't Worry, Be Happy! Steve Lopez February 27, 2004 I'm feeling very happy lately. Do you feel happy? I was kind of blue for a while, to tell you the troth. I was pessimistic about the Califomia economy, and I certainly didn't like anyone remotely associated with the state Legislature. But now I want to give every legislator a big hug, and I feel like I could jump high enough to kiss the moon. This puts me in sync with a lot of people, according to a Times poll that found people in high spirits, with surging optimism about the state's fortunes and overwhelming popularity for Gov. Arnold Schwarzenegger. Who knew we were electing a therapist? To tell you the troth, I was kind of late in joining the party. It happened just the other day. I was playing with my baby daughter and the TV was on in the background. Within a span of seven minutes, I saw two ads promoting Proposition 57. One was 30 seconds long and the other was 15 seconds, each of them explaining how good we'll feel about $15 billion worth of debt. In less than a minute worth of appeals fi.om Schwarzenegger and Sen. Dianne Feinstein, the fog was lifted for me. It's like the powerful, liberating feeling you get when you whip out a credit card to buy something you really can't afford. I scooped up my daughter and sang "Que Sera, Sera." I honestly didn't know which way to vote on Proposition 57 until then, and thousands of Californians must have felt the same way. Just a cOuple of weeks ago, the $15-billion bond measure had worse prospects than the Dodgers. Then the ads began. It's amazing what a $1 O-million advertising budget can accomplish, isn't it? Support for Proposition 57 soared, and if I had to bet, I'd say it'll win handily on Tuesday. "Are we such a malleable electorate that a celebrity gets a bunch of special interests to give him $10 million, and suddenly we can be convinced of anything we see on TV?" asks Jamie Court of the Foundation for Taxpayer and Consumer Rights. The answer is an upbeat, confident, unapologetic, YES! But let me tell you more about my conversion. Before I saw the ads, I had lots of questions about Proposition 57. Glendora City Manager Eric Ziegler and West Covina http://www.latimes.com/news/local/la-me-lopez27feb27,1,5133863,print.column?coll=la-headlines-califomia 2/27/2004 Los Angeles Times: Hey Voters, Don't Worry, Be Happy! Page 2 of 3 Mayor Pro Tem Mike Miller got hold of me in a panic, saying Prop. 57 will be paid for out of their meager treasuries. Fresno Mayor Alan Autry, a Republican supporter of Schwarzenegger, is the harshest critic of Prop. 57 I've run into, with the possible exception of Democratic state Treasurer Phil Angelides. "Everybody should be up in arms," said Autry, who explained that the $1.3-billion annual cost of Prop. 57 will come from a portion of the sales tax desperately needed by cities. "At the end of the day, what we very well could end up with is $15-billion worth of debt around our children's necks, a tax increase, and decimated local treasuries." Borrowing is the easy way out, said Autry, which explains the almost giddy bipartisan support. Republicans can avoid tax increases for now, but Democrats get an even better deal. They can avoid deep cuts, escape full blame for driving the state to the brink of bankruptcy, and make sure not to incur the governor's wrath. Lots of people are reluctantly embracing Prop. 57 because alternatives could be worse. But they don't have to be, Autry argued. Angelides would refill the state's treasury by restoring the top-income tax bracket used by former governors Ronald Reagan and Pete Wilson. And Autry recommends that Schwarzenegger conduct his promised audit first and borrow less money later on, when it might be possible to cut a better deal with Wall Street. The reason for the rush, Autry said, is that Sacramento doesn't want us to get too close a look at Props. 57 or 58. "These propositions collectively pose the greatest threat to the future of this state that we've seen in my lifetime," Autry said. "We're rushing recklessly into this night ... and we don't have to." I almost bought the Fresno mayor's spin. But then came that fateful day when I had my daughter parked in front of the television. All I can figure is that Autry must not have seen any of the Prop. 57 ads or he would have gladly joined Team Arnold, no questions asked. Sure, they don't give you much detail. But that's the beauty of the modem democratic process. You and I can go about our business while political hired guns save us the trouble of self-education and public discourse, expertly boiling complicated issues down to convenient, 30-second simplifications and half-truths. "I am committed to putting our financial house in order," Schwarzenegger says in one of the ads. "And I need your help. After all, it is your money." I'm feeling giddy. Do you feel giddy? Hey, Arnold. Are you sure $15 billion is enough? Steve Lopez writes Sunday, Wednesday and Friday. Reach him at steve, lopez~latimes, com. Santa Paulans can expect to get hit with thunderstorms today, with highs in the mid-50s. If you want other stories on this topic, search the Archives at latimes,com/archives. http ://www~~atimes~c~m/news/~~~al/]a-me-~~pez2 7 feb 2 7 ~ ~ ~5 ~ 3 3 86 3 ~pr~nt.~~hmm ~ c~ ~~=~a-head~ines-cali £~mia 2/27/2004. Los Angles Times: Broad Budget Cuts Weighed in L.A. Page 1 of 2 http://www.latimes.com/news/local/la-me-labudget27feb27,1,2478936.story?coil=la-home-local Broad Budget Cuts Weighed in L.A. Hahn considers slicing funds for the arts, youth programs such as DARE and other services. By Noam N. Levey and Jessica Garrison Times Staff Writers February 27, 2004 Drug-abuse education for schoolchildren, building code enforcement and community arts programs all may be on the chopping block as Los Angeles Mayor James K. Hahn's office gave the first indication Thursday of how he plans to close an.approximately $250-million hole in the city budget. Hahn does not plan to propose a budget for the 2004-05 fiscal year until April. But his office has been working for months to prioritize city services and identify those that could be trimmed or eliminated to make up the projected shortfall. On Thursday, the mayor's budget director sketched a list that includes scaling back city support for the arts, closing youth . programs, reducing inspections of problem properties, and suspending a program that closed alleys that were magnets for illegal dumping and drug trafficking. Budget director Doane Liu emphasized that the plans are preliminary, and that no figures were attached to the programs in Thursday's presentation. The mayor's office projects a total shortfall of $350 million in the budget year that begins July 1, but plans to mitigate that figure with the use of $100 million in reserve funds. Among the programs likely to face elimination first, according to the outline, are: the Police Department's Drug Abuse Resistance Education (DARE) program, a program designed to resolve neighborhood disputes over pets, a summer jobs program for at-risk youths, and one of the city's public-access television stations. Hahn's budget planners have identified other services -- such as meals for homebound residents and hours at new libraries m that could be trimmed if the city had to make deeper cuts. "We all find this extremely painful," Hahn said Thursday. "But we just can't keep doing things the same old way .... We can't do everything. And we certainly cannot do everything next year that we've done in the past." The mayor's office also has begun work on plans to eliminate about 1,000 jobs from the city payroll, mostly through attrition, early retirement and elimination of vacant positions, Liu said. A sluggish local economy and Gov. Arnold Schwarzenegger's plans to use millions of dollars in local property taxes to help balance the state budget have combined to push the city's budget far into the red this year. To balance the budget, the mayor inaugurated an exhaustive new budgeting process this year designed to prioritize 1,400 city services. For months, Hahn has been crisscrossing Los Angeles trying to build support for his case that public safety should be the http://www.latimes.com/news/local/la-me-labudget27feb27,1,7398955,print.story?coll=la-home-local 2/27/2004 Los An~s Times: Broad Budget Cuts Weighed in L.A. Page 2 of 2 city'~top priority. Last year, he failed to persuade the City Council to hire more police officers, and council members took the unusual step of rejecting the mayor's budget. This year, Hahn does not plan to add officers. But to retain the current force of 9,211 sworn personnel, the mayor's office is preparing city leaders for potentially extensive cuts in other programs. The process has won praise from some City Council members, who last year berated Hahn for failing to work with them to prepare the budget. But there already are signs that passing a city budget will not be easy. Councilman Bernard C. Parks, who heads the council Budget Committee and is mulling a run for mayor next year, did not attend a budget meeting Thursday when the mayor outlined his priorities. The mayor's office said Parks was invited. But Bernard Parks Jr., the councilman's spokesman, said Parks didn't know if he had been invited because he had been in court all week testifying in a lawsuit against the Los Angeles Police Department. Parks is a former L.A. police chief. At the same time, the prospect of cuts already is generating criticism in some quarters. Two weeks ago, dozens of women and teenage girls protested on the steps of City Hall about a proposal to save money by consolidating five city departments, including the Commission on the Status of Women. On Thursday, Rabbi Allen Freehling, head of the city's Human Relations Commission, said he was distressed that some commission programs to reduce tensions among young people may be cut. "Obviously, it's something we need to talk about with the mayor's office," Freehling said. "Our reach into the community has really become profound in terms of reducing tensions and showing people they can relate to one another in the most positive ways." Ifl~u want other stories on this topic, search the Archives at latimes.com/archives. gClick here for article licensing and reprint options Copyright 2004 Los Angeles Times http://www.latimes.corn/news/local/la-me-labudget27feb27,1,7398955,print.story?coll=la-home-local 2/27/2004 From: Alan Tandy To: Amber Lawrence Date: 2/23/04 8:26 Subject: Fwd: Positive Info >>> Lars Larsen 2/20/2004 9:39:50 AM >>> - ' Just to follow up on our conversation, here are some of the positives that have come from the Ice Center in the first two months of operations. The drop in programs such as public skating have been extremely positive with the weekends averaging over 200 people in each of the four weekend sessions. Drop in hockey and stick time have also been huge hits especially Thursday early afternoon and Sunday afternoon with anywhere from 15 to 30 people practicing their skills each session. Basically the community has been interested in the ice rink and we have been offering a variety of drop in time for them to come down and try skating, hockey or figure skating. The registered programs have also had a good start, we have 8 youth hockey teams participating in our in house leagues, 6 mens league teams, and the Dragons Travel Hockey Organization are tremendously happy with the facility and their new home. Learn to Skate program had 138 participants in its first semester and enrollment in the second semester should exceed that number. We have been able to offer special group rates to underprivileged youth groups and schools during the week day hours and some kids have been ice skating for the first time in their lives. Lastly it seems like the Ice Center is the place to have a birthday party, we average 10 parties a week usually occurring on the weekends. Basically the response from the community has been strong, they are still getting to know ice sports in general but definitely interested in trying it out. Atheistically the facility is very nice and people of Bakersfield that have come to the facility have expressed a degree of pride that this is in their community. Plus it gives people of all ages positive programs and activities to participate in that are unique to the Southern Kern County Area. Any other help that I can be do not hesitate to give me a call. Thanks, Lars. Lars Larsen Director Bakersfield Ice Sports Center 1325 Q Street Suite #100 Bakersfield, CA 93301 (direct) 1-661-852-7401 (reception) 1-661-852-7400 www.bakersfieldicecenter.com L~os Angeles Times: Court Deals Blow on Budget Page 1 of 3 http://www.latimes.com/news/local/la-me-taxes24feb24,1,2325910.story?coil=la-headlines-california Court Deals Blow on Budget The state could sink $650 million more into the hole after a decision on corporate taxes. By Marc Lifsher and Evan Halper -. Times Staff Writers February 24, 2004 SACRAMENTO -- California's budget deficit appeared to grow by about $650 million Monday, after the U;S. Supreme Court refused to review a ruling that state corporate tax laws impede interstate commerce. The move was more bad budget news for Gov. Arnold Schwarzenegger and state lawmakers, coming less than a week after nonpartisan Legislative Analyst Elizabeth G. Hill warned that the state's economy is improving more slowly than expected, causing revenue projections to drop by more than $1 billion. "Not the way you want to start your workweek," said state Department of Finance spokesman H.D. Palmer. "There is no question this is a substantial hit." The latest setback is the result of a state law that allowed corporations to deduct from their taxes dividends received from other corporations, as long as those dividends were paid from corporate income that was taxed by California. The deduction originally was created to provide an incentive for California firms to invest in other companies in the state without being penalized with double taxation. State courts ruled that the provision violated federal laws regulating interstate commerce. The ruling will force California to provide refunds and interest to affected corporations. According to the Franchise Tax Board, the state will have to pay $800 million in refunds to between 1,000 and 2,000 corporate taxpayers with dividend income from out of state. That would include some of the largest corporations doing business in California, such as Microsoft Corp. and Hewlett- Packard Co. But because the board is considering jettisoning the dividend tax break, the revenue loss could be offset by $150 million in new taxes the state could collect from companies that had been receiving the break since 2000, said board spokeswoman Denise Azimi. Those same companies could in the future face a new, ongoing obligation of about $35 million a year, she added. http://www.~atimes.c~m/news/l~cal/la-me-taxes24feb24~~~5924885~print.st~ry?c~~~=~a-head~ines-calif~mia 2/24/2004 L.ps Ang. eles Times: Court Deals Blow on Budget Page 2 of 3 gehwarzenegger administration officials say they have not made any decisions about how to flee up the money to make the refunds. "We're going to have to account for it when we present our revised [2004-05] budget in the spring," Palmer said. Among the options are cutting other programs, or siphoning off some of the $15-billion bond revenue that Schwarzenegger is asking voters to authorize on the March 2 ballot, to help pay down past state shortfalls that come due in July. According to Palmer, the state will not have to pay the entire $650-million bill in one year. It is likely that the refunds will go out over at least the next two years, and possibly longer. The expected refunds stem from a state appeals court decision in a case brought by Farmer Bros. Co., a Torrance-based coffee roaster and packager. Farmer Bros. sued the state, saying the law discriminated by providing "a deduction for income generated in California but not for income generated fi.om other states," Thomas Steele, an attorney for Farmer Bros., said Monday. He said his client should receive an $800,000 refund. Steele warned, however, that he expects the Franchise Tax Board to adopt a tough new stance, declaring all future. dividends as taxable income for all firms, whether the investments are in companies that do business in numerous states or just California. The state has taken the position that it intends to level the playing field by treating the 75-year-old dividend law as voided by the state appeals court ruling, Steele said. "They haven't formally said it, but they've indicated in their filings that they would eliminate the deduction for any kind of commerce," he said. While spokeswoman Azimi said the board's legal staff is "studying" the matter, others closely involved say Privately that the board intends to take action to eliminate all such deductions in the coming days. The state has precedent for deciding that the appellate court ruling invalidates state laws that provide the California-only tax breaks on dividends, said Lenny Goldberg, a public interest lobbyist who specializes in tax legislation and policy. He noted that the board made a similar ruling that Califomia-based insurance companies could not deduct dividends received from California-based subsidiaries. The ruling followed a Dec. 21, 2000, decision by the California Court of Appeal known as Ceridian that found the state to be violating the interstate commerce clause ofthe U.S. Constitution. Insurance companies countered by pushing a bill in the Legislature that would have restored some of the deductions for dividend income. The measure is currently stalled in the state Senate Revenue and Taxation Committee. The Ceridian and, now, Farmer Bros. cases should force the Legislature to "finally do some cleaning up of loopholes and special exemptions" granted industries over the years, said Goldberg, who is executive director of the California Tax Reform Assn. "The state can hardly afford continued erosion of the tax base," he said. "We're going to have to figure out some way to get at least some short-term replacement revenues." Both the Franchise Tax Board and the Legislature are likely to take a close look at proposals to widen corporate loopholes, said Steele, the attorney for Farmer Bros. "In this budgetary climate, it's anybody's guess how the Legislature will move," he said. Nevertheless, he suggested that businesses might attempt to move a "revenue neutral" bill that would reduce deductions for California-only dividend income, while increasing breaks for dividends from companies operating outside the state. (BEGIN TEXT OF INFOBOX) http://www.latimes.com/news/local/la-me-taxes24feb24,1,5924885,print.story?coll=la-headlines-califomia 2/24/2004 ~ L~s Ang, eles Times: Court Deals Blow on Budget . Page 3 of 3 Several Factors Could Increase Budget D~ficit With a U.S. Supreme Court action Monday, California must give back $650 million in tax revenue collected from out-of- state corporations. Although it is unclear when the money must be remmed, nonpartisan Legislative Analyst Elizabeth G. Hill noted the case in a report last week and warned that refunds were only one of several "imminent threats" to Gov. Arnold Schwar-zenegger's 2004-05 budget -- apart from whether voters approve a $15-billion bond March 2 to clear up prior- year debts. Altogether, she said, if several optimistic revenue projections fall short, next fiscal year's budget deficit could rise by as much as $4 billion: · The governor is proposing a $930-million bond sale to cover the state's payment to a pension fund for government workers. A Superior Court has already blocked a similar bond as unconstitutional. · A 5% cut to the rate paid doctors in the Medi-Cal program was struck down by a judge just before Christmas. The governor has proposed cutting those rates an additional 10%. If all the cuts are found to be illegal, the deficit in the governor's budget could grow by as much as $1 billion. · The governor's budget assumes a $350-million increase in federal aid. There is no sign Washington plans to give the state such a boost. · Analysts are skeptical the state will be able to generate the $500 million in new Indian gaming revenue that the budget anticipates. Gaming tribes are under no obligation to renegotiate their compacts. · The budget assumes $400 million can be saved by cuts in the state prison system, but offers no indication of how. If~ want other stories on this topic, search the Archives at latlmes.com/archlves. U. Click here for article licensing and reprint options Copyright 2004 Los Angeles Times http://www.latLmcs.com/ncws/locaYla-me-taxes24feb24,1,5924885,pfint.sto~?coll=la-headlines-califomia 2/24/2004 RECEIVED ,, FEB 2 7 , C','"V MANAGER'S BAKERSFIELD Economic and Oommunit¥ Development Department MEMORANDUM February 27, 2004 TO: Alan Tandy, City Manager FROM: Donna L. Kunz, Economic Development Director SUBJECT: Status of $2.0 million - Section 108 & CDBG Funds for S.E. Bakersfield On September 18, 2002, Council approved the use of $2.0 in CDBG and Section 108 Funds for activities in southeast Bakersfield. The following is a summary of activity to date relating to the use of Section 108 and CDBG funds for Southeast Bakersfield. Section 108 - $1.0 million Of the $1.0 million in Section 108 funds, $800,000 is reserved for street improvement projects on California Avenue, Brundage Lane and Union Avenue: · California Avenue Streetscape: $413,500 - Install median streetscape, sidewalk and lighting improvements on California Avenue between Union Avenue to Washington Street. Design to be completed May 2004 with construction in July 2004. · Brundage Lane Streetscape: $325,000-Install median streetscape, sidewalks and lighting improvements from Chester Avenue to Union Avenue. Curb, gutter, and sidewalk work will be installed with the City's annual contract in April 2004. · Union Avenue Streetscape: $61,500 - Street lighting improvements on Union Avenue between Terrace Way to 4th Street. Design is scheduled to be completed May 2004. Construction will start July 2004. The additional $200,000 is allocated for the Southeast Training Facility. Originally planned was a 4,000 square foot facility to be located on HACK property at East California Avenue, however, recent correspondence from the Housing Authority of Kern County indicates that due to cutbacks in state and federal funding, the training center may not be feasible at this time. CDBG - ~;1.0 million The following table details the projects and associated amounts expended to date: · Lakeview Streetscape: $237,591 - Median street improvements and lighting between East California Avenue and 4th Street. Project completed January 2003. · Union Avenue Street Improvements: $100,000- Street improvements including curb, gutter and sidewalks on Union Avenue between "V" and 3rd streets. Project completed in the Fall of 2003. · Union Avenue Street Improvements: $18,000 - Street improvements including curb, gutter and sidewalks on the 600 block of Union Avenue. Project completed in the Fall of 2003. · Southwest Corner of Chester Avenue and Brundage Lane Street Improvement Project: $92,000 - Street improvement including curb, gutter and sidewalks, right turn lane, and reconfiguration of traffic signals. Design to be completed in March of 2004, construction will be in June 2004. · Martin Luther King, Jr. Pool Rehabilitation: $175,000 - Rehabilitation of the swimming pool at 1000 South Owens. Construction to be completed in May 2004. · Business Assistance Program: $377,409 - The remaining CDBG balance of $377,409 lies in the Business Loan category. These funds are currently being reprogrammed at the recommendation of the Budget and Finance Committee for the Planz Wet-Play Area ($157,000) in addition to Street Reconstruction ($220,000) in HUD eligible areas. S:\Rhonda\MEMO\SEActivityU pdate022604.doc BY JOEL KOTK N :~ RANKINGS ~:DAVJD FRIEDMAN AFrank Sinatra never wrote a song about Newark or Green Bay, nor has Madonna. ever bought a house in ~] either citv. But these are amomz the unexpected places ~ where bt~sinesses are adding j(~s ~ost rapidly and many people are moving in search of new Iives, creating tremendous bpportunities for entrepreneurs. · The Top Cities in America for doing, 1~'~ usiness al' 'e not at all' ~, here' -' most people- think, tu'~d' there's~ gooctdata to back that up. This year Iuc. ~ublishes an exclusive 'Iop Cities list, u.sina a brand-new metho8olog5 that ~e belie¥ e to be the most objective, reliable svstem used an~vhere for ranking ferti!e ~round for companies. ,'For the most bart, the top cities~ m'en t fbu. nd on the Ikshionabl.,e coasts, nor in the biggest, most fa- mous .metro areas, but in more prosaic places, inclu-d'ing many in the lVhdwest, that found a way to ~row m a tough economy a. nd now seem poised for rapid expansion as the recovery comes ~n. Especially notable are cfties *large, medium, m',d sn~all spread through6ut the st2! boomin~ SoiiS~east, including No. 1 ninked Atlanta and a score, of Flori& citks of various sizes. MARCH 2004 INC. MAGAZINE 93 THE 25 TOP ClTIF-S I O "Aflantais amazing;'notes RayWallace, means that regional businesses have ex- taxes, or regulatory environments, seem to presidentofW. Ray Wallace & Associates, panded, created new demand, andpushed be doingbest. "When people depend on an Inc. 500 firm that does financial con- up areawide disposable incomes. In con- debt to finance operations, they look at stiltingfromsuburbanAlpharetta, Ga."The trast, companies don't form or hire new things differently than when it's equity;' opportunities are here and small business- workers when a region's regulatory climate, suggests Andrew Segal, of Boxer Property, es are here. People from all over the South costs, or work force capabilities aren't con- a Houston-based real estate investment come to Atlanta like to Mecca." ducive to expansion, firm with holdings in several "second tier" If the late 1990s were all about a gold Regions that consistently generate jobs cities."Business now has to look for a more rush--quick success, stock market fire- in a broad range of industries rank at the reasonable place. The ugly ducklings are works, sex and the city--the prevailing top of the list. Those with poor and wets- beginning to look better:' trends almost midway through the more ening job growth and increasingly undi- Few people in the growth areas, of somber 2000s suggest a whole other versified economies do less well in the course, would consider themselves "ugly dimension to what makes the entrepre- rankings. As the recent technology bust ducklings;'but they certainly tend to have neurial economy hum in such under- and manufacturing cutbacks indicate, economies that are grayer endless special- hyped business havens as No. 5 (small overreliance on a single sector risks ized than the '90s hotshots. Total depen- city) Sioux Falls, S.D., No. 4 (medium) painful, long-term setbacks. Unbalanced dence on high tech, once considered a Fresno, Calif., and No. ll(small)Bismar- growth can also indicate whether even boon, has tttmed out to be a disaster. ck, N.D. (For a complete ranking of 277 once prospering areas are devdoping anti- In the mid to late '90s, suggests Leslie large, medium, and small cities, and a sep- Parks, former economic development di- araterankingofthetopcitiesbymajorin- )ne .surp.r. isi~ rector for San Jose, inflated stock prices cre- dustries, see Inc.com.) n~, ated false economy that drove up real Of course, there are some high-tech, [ naonme a high-pricedthe list, including No. 15 (large) S~ ]7'ff~d;f'i :h°ld°versrelativel : i h on z?z ,_,': _, !~ h'Ul h~a~an estate prices and the cost of managerial and ~,~,,;i--~,~,i ~,'~H technical talent while driving out more No. 19 (large)Austin, and No. 13 (larg~5;:ne',mpounc of middle-dass, blue-collar activities from the region. "Economic diversity is a constant greater Washington, D C., but those place~ih ;M dwest challenge here:' Parks adds. "A lot of peo-. havebeenhighuponthegrowthcurvef6r't~:,?~,~: ,, tndthe Great pie did not want basic industries. They more than a decade. Perhaps most re, yerkes? thought high tech could solve everything." ing are those denizens at the bottom 0?'~:' states. list (see "10 Worst Metro Areas" on page Atlantai Leading flee Pack 97), including No. 9 worst Boston, No. 8 industrial land use or other slow- or no- The leading large city on the list, At- worst Portland, Oreg., No. 7 worst San growth regulatory policies, lanta, epitomizes the characteristics of eco- Francisco, and No. 6 worst New York City. Inc. measured current-year employ- nomic diversity and affordability. Spread Dead last (the No. 1 worst large metro ment growth in more than 250 regions (as out over 28 counties in north-central area) is San Jose, home of Silicon Valley, the defined by the Bureau of Labor Statistics) Georgia, Atlanta's region includes over 4.5 megawatt center of late '90s business hype. as well as current trends in the annual ay- million people, only 420,000 of whom live In the bygone era, these were the cities that erage growth over the past three years, and in the cityitselfi It combines the advantages had the sizzle. No more. compared employment expansion in the seen in smaller communities with an array. first half versus the second half of the last of assets--such as top-flight universities, The Rankings decade. Job growth factors account for ap- major corporate headquarters, and a How did Inc. arrive at these conclusions? proximately two-thirds of the final score for world-class airport--usually only found in Not by subjective criteria, such as proximi- each city and the balance among industries leading global cities. ty to research universities or ahospitable di- accounts for approximately one-third of the This vast archipelago of largely subur- mate. The central premise behind the Top final score, ban communities also houses a relatively Cities rankings is that current and histori- diverse economic structure. Atlanta is not cai job growth is the most objective indica- SO WHAT KIND OF PLACES ARE WORKING wedded to technology like San Jose, or fi- tor of a region's economic vitality for best in George Bush's America? They are nancial services like New York City and entrepreneurs. More than three-quarters of predominantly suburban and, perhaps Boston. While the recession pummeled all new jobs are created by small business, most importantly, relativdy aflbrdable, par- some of Atlanta's key industries~indud- according to the Small Business Adminis- ticularly in terms of housing prices, cost of ing information technology and construc-. tration, so a region showing strong job living, and business costs. These are places, tion--the area's well-rounded economy growth is in all likelihood a hotbed of en- notes Brookings Institution demographer has allowed it to take fttll advantage of the trepreneurship. The impact on business of a William Frey, where younger families, in- current, broad-based recovery. city's educational and training systems, duding many well-educated people as well "Atlanta has one of the most diversitied housing and living costs, taxes, regulatory as upwardly mobile immigrants and even economies in the country;' points out Mark burdens, and quality of life factors com- singles, are now migrating in large numbers. Vitner, a senior economist who studies the monlymeasuredbyother"hotlists"to iden- Perhaps the most predictable bottom Southeast for Charlotte-based Wachovia. tify strong economies--are all ultimately line in this current economic expansion is, "Whatever the new thing turns out to be, reflected by job growth, well, the bottom fine. Places kindest to busi-Atlanta will be in the forefront. They are A strong history of creating new jobs ness costs, whether in terms of office rents, very adaptable?' ~4 I1~1¢. IIl&~d~'l~l~ MA[ICH 2004 the hottest of,the Met- Areas Sustained growth in the Southeast left formerly hot cities such d°Whi;? in:t~i~affe,~ 9/fi, the N~va~;~ :! as San Francisco, New York City, and Boston behind g MARCH 2004 IN¢, MAGAZINE 9.5 r Provide name mcogni:,~::,i .... ~,:: :: :?,i,!"' ~ ~isconsin city, but locals swear to thequal~ of life, ;,: i ":: ::'' ~' ~:iec°n°my'andahardW°rking~skilledla~rf°rce:::~: , ': i~; It]a ~',~s the:~Pulafion,driYen growth Of Sunbelt cities such a~ ~ { ~' b~ iris,an excellent place,to stadand W'rth job bases from 150,000 to 450,O00,the midsize cities include a strong showin~l from the Inland Empire, driven ling?an affordabje coast~! by escapees from the California coast of'pricey Los Ange- ,I 96 THE 25 TOP CITIES Affordability, Vimernotes, hasbeenthe tional hotbeds for these professional in- 60-year-oldentrepreneur, who movedhis other pillar of the region's success. Al- dustries (e.g., Boston, New York City, San firm from NewYork City in July 2002 and though not cheap by southern standards, Jose) have suffered either negative or slow has since gone from four to 30 employees. Atlanta's cost of living, particularly hous- growth during the past few years. "They like being here and they know it ing, is much lower than that in places like These trendswere particularly notable in costs less. Every dollar they make here is Boston, New York City, Seattle, or San Florida, the state that more than any other simply worth more:' Francisco. This has made Atlanta an excel- dominates our list. A remarkable six of the lent spot to start a business, allowing low- top 25 cities on thelarge list, inclu g The Inloa d. Empire er costs and salaries for start-ups. 5 West Palm Beach, No. 7 Fort Lauderdale, An even more surprising group of top- Atlanta turned out to be a far better No. 8 Jacksonville, No. 11 Orlando, No. 14 flight cities can be found in California, choice than San Francisco for the head- Tampa-St. Petersburg, and No. 22 Miami, whose coastal economy, particularly in the quarters of the fast-growing, 250-employee are fi.om the Sunshine State. Bay Area, has been struggling since the end Cendian Inc, which opted for the Georgia Florida, suggests Donald DiFrisco, ex- of the dot-com craze. Here the biggest en- metropolis over a series of other citles, in- ecutive vice president of Palm Beach Gar- tryisNo. 2Riverside-SanBernardino, are- duding the fabled city by the bay. "Afford- dens-based Cross Match Technologies, has gion with more than 3 million people east abilitykilled us with the BayArea~'says CEO become increasingly attractive to informa- of Los Angeles. In many ways, the region, Mark Kaiser. "San Francisco is a delightful tion workers given the rapid housing in- known as the Inland Empire, is the polar placetolive, but way too expensive:' flation in places like the Bay Area and opposite of places like San Jose--its eco- AtlantamaylacksomeoftheBayArea's Boston. Corporaterelocationsofthe1980s nomic drivers are mundane industries edginess and physical beauty, Kaiser adds, and 1990s--including companies such as such as housing construction, warehous- but in addition to reasonable housing Motorola and Nokia--also have left a ing, and diversified manufacturing. prices, it also presents many lifestyle op- repository of talent that can be used by Yet even here the key high-end growth tions, including an increasingly lively cen- fast-growing, smaller firms, industries, such as technology, financial and tral city and diverse suburban areas,which Sarasota, No. 3 on the medium cities business services, are expanding at strong allows the firm to compete for talent across list, has become rich with what Reuben rates. This, suggestslocal economist John a broad spectrum of skills, fi.om top man- Ben-Aire, CEO of MadahCom, calls "early Husing, is being driven in part by sky-rock- agement to technicians. At the same time, retirees." Many people in their 50s came to eting housing costs on the coast of Califor- Atlanta'sairportandlonghistoryasanarea Florida to retire but, tbrfmandalreasons nia. Skilled workers with families are of logistics expertise, best epitomized by or out of boredom, have reentered the responding by moving. Since 1990, Husing UPS, help the firm in its primary business work force. "These people have everything notes, more than 660,000 people have of providing logistical support tbr the you want including experience/' says the moved into the inland. The bulk of this chemical industry worldwide. "Atlanta/' Kaiser sums up,"gives you a lot for the buck." Affordability The theme of affordability was repeated often by many firms located in the dries that ranked high on the list~ It hdps explain the remarkable performance of places like No. 4 (large) San Antonio and No. 26 (medium) McAllen, Texas, all of Central Florida, and much of inland California~ "San Antonio is a very good sell for families," says Keith Frederick, founder of Securelnfo, a San An- tonio computer security firm with 145 em- ployees. "You can get a new three-bedroom starter house here with a two-car garage for i~o~i ;ii $60,000. And it's actually a super environ- :; ~tt~ t ; ment for operational experience. This is one of the few places I can get the kind of talent I need?' Indeed, Inc.'s data shows many fast- growing cities, such as No. 5 (small) Sioux Falls, S.D., No. 15 (small) Fargo, N.D., and No. 8 (large) Jacksonville, Fla., also saw i'i rapid expansion of financial and business- professional service industries, which re- quire a work force with a high level of education. In contrast, many of the tradi- MARCH 2004 INC. MAGAZINE 97 insurance Areas Small cities (job bases up to 150,000) have suffered from years of dwindling population. Their affordability is reversing the trend ~: :!i'~ ~ 98 INC. MAGAZINE MARCH 2004 ' ·" O IT HE 25 TOP CITIES. growth comes from ethnic minorities, pre- Brightcode, a small software service firm lo- the immediate post 9/11year. This trendhas dominantly Latinos, whose numbers cated in the longtime agricultural center, hdped some long-sufferinglarge midwest- swelledby 500,000, and Asians. Both groups "I recruit people who find a five-minute em dties--such as No. 32 St. Louis, No. 28 see the inland as the one place in southern commute, and the ability to get a great Lottisville, No. 29 Kansas City, and No. 30 California where their hard work can be re- house, pretty attractive," Donny explains. Cincinnati. The longtime outmigration of warded with a middle-class lifestyle. They "After 2000, we found we had plenty of re- people, particularly skilled workers, from keep coming. Between 2000 and 2020 the sumps. You can pay people a little less be- the Midwest, Frey suggests, has signific~mt- inland is expected to add another 1.5 mil- cause they also pay less for rent, which ly slowed. Indeed, recent Census datareveal~ lion people, more than the growth forecast leaves us with a nice profit?' that the Midwest has done relatively well for allbut five states. Such growth provides But California is not the only place attractingnewknowledgeworkers."People business opportunities to entrepreneurs, where this shift to the periphery is increas- are saying maybe it makes sense to move "What we have here are families, and inglyobvious. Brookings demographer Frey to Omaha or Kansas City," suggests Ernie families create growth," says Ramon Al- calls this process, appropriately enough, Goss, a regional economist based at varez, the father of three and owner of the "Jerseyfication" and ties it to the growth of Creighton University in Omaha. Places such nation's only Latino-owned Jaguar dealer- areas surrounding the expensive major as Fargo, N.D., or Sioux Falls, S.D., have ship, in Riverside, Calif."You see alot of up- cities of the Northeast, induding such high- among the best-educated young people in ward mobility around here. I see a run of fliers as northern New Jersey, the upper the country, he says. This appeal is critical growth that could last for 10 or 15 years." Hudson Valley in New York, Long Island, with entrepreneurs trying to get skill sets "It's Econ 101;' observes Bart Hill, CEO and the southern New Jersey areas near that are hard to find in small communities. of San Joaquin Bank, afast-growingfinan- Philadelphia, as well as the Maryland-Vir- Lyndon Hurley, whose Sioux Falls- cial institution based in Bakersfield, Calif. ginia regions around the nation's capital, based Hurco Technologies makes equip- '"Ifs just much cheaper to do business here "These are areas near old high-fliers ment for sewer and water systems, finds than on the coast?' Hill has seen a rapid and major cities that have become too ex- that even if his company is short on growth in manufacturing, health, and fi- pensive for families to move into," Frey welders, workers are willing to relocate. nancial service firms in his area. But there says. "They have the advantage of being "We get e-mails from people all over the are even signs that some of California's reasonably affordable but still dose enough country who want to come here," he re- vaunted technology industry may be mov- to tap into the big-city economies." ports. But it's not just traditional manu- ing inland. Sacramento, Santa Rosa, Stock- facturing that is doing well in these places. ton, and other smaller inland communities The Midwest Siotuc Falls and Fargo, in North Dakota, have been picking up high-end jobs for Another surprising trend on the list has have also developed substantial technology years. Even such perennial hard cases as been the general rebound of the Midwest industries. In the past such areas exported Fresno have become amactive to knowledge and Great Plains. Frey says his studies indi- their young talent; now they are keeping workers, according to Lance Donny, CEO of cate there was a flight from dense cities in more and bringing some back. The Internet is part of the reason, sug- HOW THE 2004 TOP CITIES WERE SELECTED gests Michael Chambers, CEO of Aldev- The rankings are derived from three-month rolling averages of U.S. Bureau of Labor Sta- ron, a Fargo-based biotech firm. Digital tistics"state and area" unadjusted employment data reported from January 1993 to Sep- technology has overcome these areas' tra- tember 2003. The data reflect the new North American Industry Classification System ditional sense of isolation from"the centers categories, induding total nonfarm employment, manufacturing, financial services, of action?' Even the smallest town is wired business and professional services, educational and health services, information, retail now, says Chambers, whose firm has and wholesale trade, transportation and utilities, leisure and hospitality, and government~ grown from 12 to 30 employees since its · All areas for which full data sets and uniform area definitions were available from the founding in 1998."Its now not about being BLS for the past 10 years~277 regions in total--were included in the analysis. This ap- remote, but choosing to live in a place that proach excluded construction sector data, which was not reported for many of the re- makes sense from a personal point of gions in the BLS database, and the Denver and Boulder areas, which were redefined in view." Indeed, so strong is the business re- January 2003. · "Large" areas include those with a current nonfarm employment base of vival in Fargo, Sioux Falls, and some other at least 450,000 jobs. "Medium" areas range from 150,000 to 450,000 jobs. "Small" areas Great Plains communities that their pop- have as many as 150,000 jobs. The growth index is calculated from a normalized, weight- ulations and employment rates are grow- ed summary of.' l) the current year's employment growth rate (weighted by two points); ing faster than the national average-- 2) the sum of 1998-2003 and 1993-1998 employment growth rates multiplied by the something that has rarely been seen over ratio of the 1993-1998 growth rate over the 1998-2003 growth rate (two points); and the last half century. These places may not 3) the difference between the current year's growth rate and the average 2000-2003 be the next Atlanta, but with good cost growth rate (half a point). · The balance index is calculated from a normalized, weighted structures and devoted entrepreneurs they summary of: 1) the standard deviation of each area's current percentage mix of major are becoming, in very real ways, prominent employment sectors (one point); 2) the standard deviation of each area's percentage of centers in the rapidly shifting geography total 1998-2003 growth generated by each sector (one point); and 3) the standard devia- of America's business. O tion of each sector's recession period (2000-2003) growth rate (half a point). · To com- pute the final rankings, the growth index was weighted by 4.5 of a total of seven points, Joel Kotkln~ the author of The New Gec~ra~hy: How theDlg~lRevolutfonisReshapingthe~nLand. and the balance index by 2.5 of seven points. Full growth and balance index data for all ~.~oe, is a Senior Feflow at the Davenport Instltutefor Public Poflcy at Pepperdine University. He is writing 277 repons ca~ be found on lnc. com. David Friedman a book on the future of cities for Modern Libra~y.~ MARCH 2004 IN¢, MAGAZINE g9 ~ecord'.~et.com,.. . Page 1 of 2 209-9S5-SS77 MONEY I TECHNOLOGY I SPORTS I LIFESTYLE I CLASSIFIED I CARS I JOBS I REAL ESTATE I STOCKTON CAL - ~ ~~~ Stockton, California >Local News ~ National News LOSS estimates don't cool council Tuesday, Feb. 24,2004 ~ Lodi Lode March 2 vote set on Stockton Event Center bond High: 59 ~ln School Low: 51 ~Tracy Metro ~_Opinion By Cheryl Miller 5__D_~y_F_o_r_ecast ~ C_ri__m_e_S_to~_p_e_r.8Record Staff Writer ~ Columnists Published Thursday, February 19, 2004 Obituaries I ~9.1 ~ Galls ? Day Hews search ~W~athor ^ consultant's report released this wee[( ~'Hood$ 'n' Hamlets shows tho propo$od Stockton Event ~W~h_a_t_t_s__Her~e_ G~ntor operating at an annual loss in ~tlml~elel~x~,B eight of '12 planning s¢onario$. Investigation May Shed ~ Mono¥ News Light on Colurabine ~Busin~ss doumal But a majority of City Council members >^P Monoy__Wjr_e_ said many of tho o$timatos tho Yemeni Added to > $_t_oc_k_Ma_rk_e_t consultant used to analyze the $100 Suspected Terror Activist ~ Money Columnists million sports-and-entertainment complex appear conservative. And, they ~.Calendars noted, Stockton already subsidizes a number of public venues, including the Airport Worker Killed by ~ Fox California Bob Hope Theatre, the Stockton Memorial Civic Auditorium and Exploding Tire Billy Hebert Field. ~ T_e_c_h 0_o I Ogy J',l_e_w_ _s_ Calif. Prosecutors Lay ~ "It doesn't look like that big of a gamble to me," Councilman Larry Ruhstaller Out Peterson Case ~_Sports News said. ~ Local Sports " ~ Outdoors Police Arrest Two The council's approval of the Economics Research Associates report sets up a _.S_uspected of Vandalizi >Prep Sports March 2 vote, on primary election night, when city leaders will be asked to ~ S~Dprts__C_a_l_end_a_r authorize a $37.3 million bond sale that will help finance a 10,500-seat arena ~ SP_ort_ s._E,t r_a_ Snowstorm Closes ~ on the north bank of the Stockton Deep Water Channel. ~ S_cch_o.~l~_~ Ne~.__M~ex_i_c_o_ >Today Originally, the council was to consider the bond issue in early April. Now, Panel Probes Tip on ~Timeout council members likely will vote before election results are reported from three Sept. 11 Hijacker ~ Reviews council races and the mayor's contest, even though Event Center financing has >Youthink been a hot campaign issue among Stockton candidates. >Today's Calendar Missing Family Case ~ Movies May Be Complicated ~_ Mayor Gary Podesto said the vote date was set to accommodate upcoming ~ Births & Weddings announcements about which arena-league football and minor-league soccer >Good Taste in S.J. and hockey teams would play in the arena. Convicted Molester > Vintag_e_ Lj_f_e~_l~.._s_ Seeks Vindication ~Travel News "You can't really have a team announcement without a place to play," he said. ~Health News "It's a cart-before-the-horse thing." ~ B_~i_~. F_o_ _un._d_'_m M~i_ss_._ ~_Pa_ren_t!0~ River Accident ~ The bonds would be sold April 16, effectively committing the city to build the ~Announcements project. _C~a!ifo_rniaS__ee_ .ks~Gay ~ Automotive Marriage Ruling http://wWW.recordnet.com/articlelink/021904/news/articles/021904-gn-l.php 2/24/2004 ',R,~ecortl~.et.eom Page 2 of 2 >Employment "The impact on this city is going to be so profound and so dramatic," City ~.Farm & Ranch Manager Mark Lewis told council members Tuesday as he encouraged them to ~ Legal Notices proceed with the financing plans. > Merchandise > Mobile Homes ::: Advertisement ::: >Personals "This city will be remembered for > Real Estate 100 or more years as the public ~Recreation looks back at this time," he said. > Rentals ~Services Councilmen Steve Bestolarides and ~ Richard Nickerson continued to criticize the ambitious pace of the >Mike Fitzgerald ~, Francis Garland Event Center project at Tuesday ~ Lori Gilbert night's council meeting. >.Eric Grunder ~Jeff Hood "The people of this city could end up ~ up facing a disaster for a long time," Nickerson said. >Community Info ~ Government Officials "1 think it would be a wonderful thing ~.Events if it works, but I'm telling you, you've ~Stockton Cai got a lot of problems." ,. _.,~-~ ¢ ,_ , - .- The city's share of the project cost, including the $65 million arena and $13 million baseball stadium, is pegged at $109 million, including a 10 percent Receive an email contingency fund. City officials continued to negotiate a fixed price Tuesday with new daily with developer Regent Development Inc. headlines from Recordnet.com In its report, consultant Economics Research Associates determined a "base case" scenario, estimating the likely number of events the arena would host, average ticket prices, attendance figures, and other expected costs and revenues. Based on those assumptions, Stockton's arena would lose $89,000 News Tracker the first year of operations and up to $186,000 in the following four years. Member ~ The arena would turn a consistent operating profit, the company predicted, only if the city increased average ticket prices, raised luxury-suite and club-seat charges, or increased advertising and naming rights by 20 percent. Subscribe Dinin~l Card The city also could break even if it cut operating expenses by 10 percent. Ad Placer ~ecor~ D~n The report doesn't study the feasibility of taking those steps. If attendance doesn't meet projections or costs run higher than expected, Stockton could lose up to $500,000 a year, the consultant said. Network Affiliate That doesn't include annual bond-debt payments of $2.9 million, which city officials say will be covered by increased tax revenues generated in the arena's redevelopment area. Jeff Cohen, head of ERA's sports division, rated the base-case projections a 5 on a 1-10 scale, with 10 being the rosiest possible assumptions. The projected base-case operating loss "is under $200,000 over each year," Ruhstaller said. http://www.recordnet.com/articlelink/021904/news/articles/021904-gn- 1 .php 2/24/2004 / B A K' E R S I; I E L D · City of Bakersfield Solid Waste Division of the KeepBa/terslield Beautiful Public Works Department Keep Bakersfield Beautiful For Immediate Release Contact: Sean Cacal, Community Relations February 27, 2004 Keep Bakersfield Beautiful Phone: (661) 326-3539 Email: scacal @ ci.bakerfield.ca.us Community Groups and City of Bakersfield Unite To Keep Bakersfield Beautiful On Saturday, February 14th, local citizens partnered with the City, County, and Keep Bakersfield Beautiful to clean up one of our local area's worst illegal dump sites, at the corner of East Belle Terrace and Washington. According to John Enriquez, Chairperson for Keep Bakersfield Beautiful, this event is significant because it demonstrates that in times of financial crisis, such as the City and County are currently experiencing, it is the volunteers who will make the difference. "Government can't solve community problems, communities do. Keep Bakersfield Beautiful is committed to mobilizing volunteers in the community to beautify this city through clean ups like this. Just look at how we changed the appearance of this area in only a few short hours." The City of Bakersfield Solid Waste Division of the Public Works Department provided the needed equipment and supplies, which included loaders, refuse trucks, bags, rakes, shovels and gloves. Local residents provided the labor. Volunteers from St. John's Church, Mount Elgon Corporation (a not-for-profit community action group based in southeast Bakersfield), Capistrano House, and members of Keep Bakersfield Beautiful teamed up to put a shine on a previously blighted stretch of road. Before, during, and after pictures are attached. '~/hat's really exciting about this clean up effort is how the community came together on short notice and said, 'We're not going to take it!', stated Sal Moretti, Superintendent for the City's Solid Waste Division. i . ~ i: i: City of Bakersfield Solid Waste Division of the K(~~eklE~.[ Public Works Department Page 2 Even Bakersfield's City Council participated, with Councilmember Jackie Sullivan helping in the clean up. "One person alone can do so little, but when a group of volunteers joins together, it's amazing what a difference we can make." Nearly nine tons of trash, old couchesl discarded tires, litter, tumbleweeds, and refrigerators, among other hideous things, were removed from the site. Mr. Moretti stressed, 'q'his is not a one-time event. We want to team up with the community and Keep Bakersfield Beautiful to stop illegal dumping through clean ups, education; enforcement, and community involvement. There's no way City staff can fight this by ourselves, but if the community wants to make a difference and get involved, we want to be right there with the trucks, equipment and supplies to help them clean up our community." Additional clean ups are being organized, most notably the Great American Clean UP on Saturday, April 24th, 2004. Last year, over 2000 Bakersfield volunteers teamed up to make Bakersfield's Great American Clean Up the largest event of its kind in the country. Volunteer groups and individuals are currently being sought for the April clean up. For more information, please call the Keep Bakersfield Beautiful Hotline at 86-Clean to sign up and get involved. BAKERSFIELD POLICE ........ ~-' ~ MEMORANDUM TO: ALAN TANDY, CITY MANAGER FROM: ERIC W. MATLOCK, CHIEF OF POLICE .C~TY MANAGER'S DATE: February 20, 2004 SUBJECT: Possible Funding Source/National Center for Missing Children Council Referral No. 695 (Ward 1) Council Member Carson requested staff investigate a possible funding source provided by the National Center for Missing and Exploited Children and provide a written response. A brochure with information on this subject was previously provided to Asst. Chief Rector from the City Manager's office. Captain Neil Mahan reviewed the brochure and further researched Council Member Carson's request regarding Intrado, an emergency telephone software service. Intrado in cooperation with the National Center for Missing and Exploited Children Center offers a rapid emergency phone calling system similar to reverse 911. Intrado donates the installation/initiation costs which their representative states is about $24,000. However, there are substantial ongoing costs. · Intrado estimated a monthly service fee of about $6,000 for a city our size · In addition, should we launch an event there would be a charge of about 23 cents per call connected. Intrado is sending additional information for our review, and there are currently no California agencies using the service. Please contact me if you have questions. Bnm/vrf MEMORANDUM TO: Alan Tandy, City Manager FROM: Gregory J. Klimko, Finance Directo DATE: February 24, 2004 SUBJECT: Fund Transfers (Council Referral # 00694) Councilwoman Carson requested staff provide information regarding criteria for transferring funds within the budget. Interfund transfers fall within the category of fiscal transactions, along with interfund/interagency loans, reimbursements and contributions. This information will concentrate !. !" on interfund transfers. The interfund transfers of resources are generally used to fund operating deficits, debt service or capital requirements. Capital requirements include implementation of the City Council approved Capital Improvement Program and the initial purchase of additional vehicles. Additional vehicles are usually necessitated by staffing increases resulting from expanding service requirements. Acco.unting and reporting standards require the use of Capital Improvement Funds for "General" Capital Improvement requirements. Therefore "General" Capital Improvements are not accounted for in the General Fund, but via interfund transfers to the City's Capital Improvement Funds, which emphasize the one time cost of a project which maY be spread over several years versus the General Fund, which emphasizes the recurring cost t° provide ongoing services. Additionally, Proprietary Funds (Enterprise and Internal Service) which are typically 100% fee supported, account for both recurring operating cost and one time capital improvement cost within the same accounting entity (fund). Below is a list of typical interfund transfers: From T_9_o Purpose General Fund Capital Outlay Fund Capital Improvements General Fund Equipment Fund Additional Vehicles General Fund Parking Fund Annual Operating Deficit General Fund Self Insurance Fund Fund Deficit CDBG Debt Service Fund Debt Service-Section 108 Loan Traffic Safety Fund General Fund ' Police Traffic Operations Transient Occupancy Tax Capital Outlay Fund Capital Improvements Sewer, Water & Refuse Funds Equipment Fund Additional Vehicles RDA Operating Funds RDA Debt Debt Service RDA Operating Funds RDA Housing Housing Projects Attached are interfund transfer schedules fi'om the adopted budget document for the current and two prior fiscal years. File name: s:hnelson~raemo-funds transfer, doc CITY of BAKERSFIELD INTERFUND TRANSFERS Proposed Budget 2003-04 Fund Title Transfers In Transfers Out General 2,200,000 A Facilities Replacement Reserve 3,300,000 Traffic Safety/O.T.S. 1,300,000 Transient Occupancy Tax 2,160,000 B Capital O]Jtlay 1,960,000 4,200,000 C Offstreet Parking 200,000 CDBG 138,620 Municipal Debt 138,620 PFA Debt 14,420,000 PFA Operating 14,420,000 RDA Operating 1,784,000 D RDA Housing 537,000 E 441,233 RDA Debt 1,688,233 F Refuse 774,000 Equipment Management 964,000 G Sewer Plant #2 902,555 165,000 Sewer Plant # 3 14,830,535 25,000 Sewer Connections 15,733,090 Agriculture Water 534,275 Domestic Water 534,275 TOTAL TRANSFERS 41,675,218 41~675,218 CITY of BAKERSFIELD INTERFUND TRANSFERS Proposed Budget 2003-04 Fund Title 'Transfers In Transfers Out Traffic Safety / O.T.S. 1,300,000 Capital Outlay 900,000 General Fund Total 2,200,000 A Capital Outlay 1,960,000 Offstreet Parking 200,000 Transient Occupancy Tax 2,160,000 B General 900,000 Facilities Replacement Reserve 3,300,000- Capital Outlay 4,200,000 C RDA - SEPA Housing .. 100,000 RDA - SEPA Debt 12,000 RD^ - OTKP Housing 92,000 RDA - DTPA Housing 345,000 RDA - DTPA Debt 1,235,000 RDA Operating 1,784,000 D RDA - SEPA Housing : 100,000 RDA - OTKP Housing 92,000 RDA- DTPA Housing 345,000 RDA Housing 537,000 E RDA - SEPA Operating 12,000 RDA - DTPA Operating 1,235,000 RDA - DTPA Housing 441,233 RDA Debt 1,688,233 F Refuse 774,000 Sewer Plant #2 165,000 Sewer Plant #3 25~000 Equipment Management 964~ G CITY of BAKERSFIELD INTERFUND TRANSFERS Adopted Budget 2002-2003 Fund Title Transfers In Transfers Out General 1,200,000 3,571,085 D Traffic Safety/O.T.S. 1,200,000 T.O.T. 3,400,000 Capital Outlay 4,105,000 A Recreation Facilities 500,000 Park Improvements 1,300,000 Agriculture Water 21,400 Refuse 785,000 2,011,600 E Offstreet Parking 130,000 Equipment Management 2,184,085 B CDBG 334,085 Municipal Debt 334,085 PFA Debt 3,706,000 PFA Operating 3,706,000 RDA Debt 1,328,500 RDA Operating 1,828,500 F RDA Housing 500,000 C Sewer Plant #2 902,555 Sewer Plant # 3 3,915,495 Sewer Connections 4,818,050 Agriculture Water 538,375 Domestic Water 538,375 TOTAL TRANSFERS 21,429,095 21,429,095 18 CITY of BAKERSFIELD INTERFUND TRANSFERS Adopted Budget 2002-2003 Fund Title Transfers In Transfers Out Capital Outlay 455,000 Recreation Facility 500,000 Park Improvements 1,300,000 Offstreet Parking 130,000 Equipment Management 936,085 Subtotal 3,321,085 Capital Outlay 250,000 General Fund Total 3,571,085 D General 455,000 Development Services 250,000 T.O.T. 3,400,000 Capital Outlay 4,105,000 A Refuse - Landfill 785,000 Equipment Management 1,226,600 Refuse 2,011,600 E General Fund 936,085 Water 21,400 Refuse 1,226,600 Equipment Management 2,184,085 B RDA - SEPA'Operating 63,500 RDA - SEPA Housing 60,000 RDA OTKP Operating 80,000 RDA - OTKP Housing~ 80,000 RDA- DTPAOperating 1,685,000 RDA - DTPA Housing 360~000 Redevelopment 500~000 C 1,828,500 F CITY of BAKERSFIELD ~ INTERFUND TRANSFERS Adopted Budget 2001-2002 ~ Fund Title Transfers in Transfers Out General · 1,050,000 1,892,005 E ~ Traffic Safety/O.T.S. 1,050,000 T.O.T. 2,050,000 Capital Outlay 2,300,000 A 2,200,000 Stadium Project 2,500,000 B · Sewer 166,000. Refuse 885,000 1,027,250 Offstreet Parking 300,000 Equipment Management 1,350,255 C CDBG 332,898 Municipal Debt 332,898 Gas Tax 450,000 Transportation Development 450,000 PFA Debt 5,630,000 PFA Operating 5,630,000 RDA Debt 1,280,000 RDA Operating 1,679,000 F RDA Housing 399,000 D Sewer Plant #2 920,000 Sewer Plant # 3 3,926,760 Sewer Connections 4,846,760 Agriculture Water 544,144 Domestic Water 544,144 TOTAL TRANSFERS 21 ~868~057 21~8 ,,~ .;057 18 Cl~ ,..qf~..B~SFI .ELD Adoptec~ BUdget~2001-2002 Fund Title Transfers In Transfers Out General Fund 250,000 T.O.T. 2,050,000 Capital Outlay 2,300,000 A Capital Outlay 2,200,000 General Fund 300~000 Stadium Project 2,500,000 B Capital Outlay 250,000 Stadium Project 300,000 Offstreet Parking 300,000 Equipment Management 1,042,005 General Fund 1,892,005 E General Fund 934,000 Sewer 166,000 Refuse 142,250 Equipment Management 1,242,250 C RDA - DTPA Operating 1,630,000 RDA - DTPA Housing 350,000 RDA - SEPA Operating 37,000 RDA- SERAHousing 37,000 RDA- O~i~rating 12,000 RDA - OTKP Housing 12,000 Redevelopment 399,000 D 1,679,000 F 19 CITY MANAGER'S o~ ': r- BAKERSFIELD Economic and Community Development Department MEMORANDUM ..~ ~/.u..~ February 26, 2004 TO: Alan Tandy, City Manager ~¢.~¢;~.' FROM: Donna L. Kunz, Economic Development Director SUBJECT: RE-ESTABLISHMENT OF SE PAC Council Referral No. ReF000703 ICouncilmember Carson requested staff provide information on the feasibility of re- establishing the Southeast PAC. In July, 1999, the City Council adopted the Old Town Kern-Pioneer and Southeast Bakersfield Redevelopment Project Areas. A large number of Iow- and moderate-income residences were contained within those areas, and, therefore, state law required the establishment of Project Area Committees (PAC) for each proposed redevelopment project area for a period of three years. The legal purpose of a PAC is to advise the redevelopment agency on policy matters which deal with the planning and provision of residential facilities or replacement housing for those to be displaced by project activities and other policy matters which affect the residents of the project area. Each PAC was originally formed pursuant to state law. During the formation of each redevelopment plan, the PACs played an integral and indispensable role. Many meetings were held during the creation of the redevelopment plans, with both PACs contributing numerous suggestions and modifications to the plans. State law mandates that PACs stay in existence to advise redevelopment agencies for three years after the adoption of redevelopment plans, unless extended by the City Council. Such extension can be for no more than one year at a time. In July of this past year, both PAC's were dissolved under the sunset clause. Both PAC's when they were in existence, experienced declining membership due to resignations and conflicts of interest issues. Also, meetings were cancelled for lack of a quorum or not held due to lack of business items. S:\DEBBIE'S\Council Referrals\Council Referral PAC reestablish.doc The Old Town Kern-Pioneer PAC suggested for future citizen participation in redevelopment, that ad-hoc citizen advisory committees could be formed when projects are proposed that would benefit from PAC input. They also expressed using the Old Town Kern Association as a sounding board for redevelopment activity. One of the main advantages of ad-hoc committees is that their members are not required to fill out the Fair Political Practices Commission Form 700 that is required of PAC members. Therefore, more people may be interested in serving on such committee. Also an ad-hoc committee could be formed on a project or location basis, so that only people interested in that specific project or in an area surrounding the project would be involved and provide public comments. If the Council or Agency request forming an ad hoc advisory committee for special projects or redevelopment projects within either project area, the former PAC members can also be invited to participate. If the Council decides to initiate a new SE PAC, a new election would need to be held. An election of SE PAC members would be governed by the "Project Area Committee Formation and Election Procedures" adopted by City Council, unless changed by Council. The cost for printing first class mailout (12,000) and public notification would be approximately $5,000, not including staff time. S:\DEBBIE'S\Council Referrals\Council Referral PAC reestablish.doc B A K E R. S F I E .L .D OFFICE OF THE CITY MANAGER MEMORANDUM February 26, 2004 TO: Alan Tandy, City Manager FROM: Darnell W. Haynes, Assistant to the City Manage~/~ SUBJECT: PUBLIC VERSUS PRIVATE CONTRACTS - STATUS REPORT Council Referral No. 000671 (Ward 3) Councilmember Maggard requested staff look into potential cost savings of public versus private contracts for the Amtrak Train Station, Water Department, janitorial services, fire extinguisher inspections, CPR classes, and painting throughout city facilities. There' are six custodial contracts in place for custodial maintenance of various city facilities at a total cost of $144,892 (see attachment). The largest custodial contract is $88,800 to maintain the Amtrak train station building and hardscaPe and is paid from the Amtrak Operating fund. It makes sense to continue to contract this service out because the agreement requires daily maintenance and the contractor is responsible for all cleaning and maintenance equipment, supplies, lamps and service personnel. Also, as a result of recent retirements and transfers, the Building Maintenance staff has been significantly reduced from two or three custodians per building to one per building. Based on discussions with the General Services Superintendent, he is not recommending termination of this contract at this time because he does not have the staff to perform the scope of work required in the agreement. If the adopted State budget takes additional local revenues, and it was absolutely necessary to terminate the contract to save permanent jobs, staff would reevaluate in light of those circumstances. All of the remaining contracts combined equal $56,092 and are funded with a combination of CDBG, General fund and Water and Sewer Enterprise funds. The Recreation and Parks ($12,146 General fund) and Economic and Community Development Departments ($12,146 CDBG funds) have recently terminated their $24,292 combined annual custodial contract and are exploring other cost saving alternatives. The remaining contracts could be terminated by either party with 10 days written notice, however that option is not recommended, because the employees who would normally perform that work have transferred to other non- General funded positions. Also, it would cost more than the current contracts for city employees to provide the service when the cost of full time employees, benefits, supplies and transportation expenses are considered. For the above mentioned reasons, staff is not recommending terminating the contracts at this time. S:\Darnell\councilreferra1000671 contractvprivate.doc A memorandum from General Services Superintendent Steve Hollingsworth indicated he was in the process of initiating a fire extinguisher service contract with a local vendor for approximately $3,500 for the first year of service. The contract is pending completion of final details and it is his opinion, it makes great sense and provides excellent value for the city. The Risk Management Division handles arrangements for CPR classes and has contracted with Life Track and Associates an outside vendor on an "as needed basis" to provide CPR training. Each department pays for use of the service. Life Track and Associates was paid approximately $876 in fiscal year 2002-03 and $1,020 in fiscal year 2003-04 to date.' If this contract were to be terminated, it would not save permanent city jobs, therefore, It makes sense to continue contracting out this service. The General Services staff typically performs painting of city facilities. Any Painting that is not provided by city staff is usually included in the Capital Improvement Budget as part of a larger capital improvement project such as an expansion or remodel of an existing city building. Staff is not recommending any changes to the current process at this time. If you have any questions or desire additional information, do not hesitate to contact me. Cc: Steve Hollingsworth, General Services S:\Damell\councilreferra1000671 contractvprivate.doc City of Bakersfield Page I of 2 Custodial Contracts Agreement/ Contract Location Fundin~l Source Amount Comments Amtrak Station Amtrak Operating Fund $48,900 Building maintenance cost is $4,075 monthly or $48,900 annually. State Reimburses City See attached Exhibit "A" for detailed breakdown of daily, weekly, monthly, semi-annual and annual scope of work activities. Amtrak Station Amtrak Operating Fund $39,900 Platform area and building walkway maintenance is $3,325 monthly or State Reimburses City $39,900 annually. See attached Exhibit "A" for detailed breakdown of daily, weekly, monthly, semi-annual and annual scope of work activities. Total Contract $88,800 Water Resources Water Enterprise Fund $9,900 Contract is for (18) months at $550 per month or $9,900 maximum. The service is for the maintenance shop and the administrative building and includes sweeping, vacuuming, moping,dusting,emptying trash cans, sanitizing restrooms. The service is twice per week and the contract can can be terminated by either party with (10) days written notice. ED/CD CDBG $12,146 ED/CD and Recreation and Parks recently terminated their contract and are actively exploring other cost saving alternatives. Recreation and Parks General Fund $12,146 ED/CD and Recreation and Parks recently terminated their contract and are actively exploring other cost saving alternatives. Fire Station 1 General Fund $6,000 The Admin. Bldg. is serviced twice per week and the contract can be terminated by either party with (10) days written notice. Information Technology General Fund $6,000 This contract for maintenance of the 3rd floor and can be terminated by either party with (10) days written notice. The service is provided by the same vendor that cleans the Borton Petrini Building. City of Bakersfield Page 2 of 2 Custodial Contracts Agreement/ Contract Location Funding Source Amount Comments Silver Creek General Fund $4,000 Silver Creek is serviced daily and the contract can be terminated by either party with (10) days written notice. Wastewater Sewer EnterPrise Fund $5,000 This facility is serviced once a week and the contract can be terminated by either party with (10) days written notice. FUNDING SUMMARY: Amtrak Operating Fund $88,800 Water Enterprise Fund $9,900 CDBG $12,146 General Fund $28,146 Sewer Enterprise Fund $5,000 TOTAL $143,992 01-011 AGREEMENT NO. INDEPENDENT CONTRACTOR'S AGREEMENT THIS AGREEMENT is made and entered into on ,)J~N 1_'~ 1.~01 , by and between the CITY OF BAKERSFIELD, a municipal corporation, ("CITY" herein) and INGRAM'S JANITORIAL, INC ("CONTRACTOR" herein). RECITALS WHEREAS, The CITY has advertised for janitorial and hard scape maintenance at he AMTRAK station, and the CONTRACTOR submitted a proposal on December 6, 2000 for full maintenance; and WHEREAS, the CITY does not have expertise cUrrently on staff to conduct proper maintenance of the AMTRAK station; WHEREAS, CONTRACTOR is experienced, well qualified and a specialist in the field of janitorial and hard scape maintenance; and WHEREAS, The CITY desires to employ CONTRACTOR to furnish full janitorial and hard scape maintenance as set forth herein; and NOW, THEREFORE, incorporating the foregoing recitals herein, CITY and CONTRACTOR mutually agree as follows: 1. ' SCOPE OF WORK. The scope of work is described as: Provide complete janitorial and hard scape maintenance for the AMTRAK station. The Scope of Work shall include all items contained in CONTRACTOR'S proposal EXHIBIT "A" and the CITY's Request for Proposals, EXHIBIT "B" attached hereto. The scope of work shall include all items and procedures necessary to properly complete the task CONTRACTOR has been hired to perform, whether specifically included in the scope of work or not. 2. TERM, CONTRACTOR shall provide services in strict accordance with the terms set forth herein for one year from February 1, 2001 to February 1, 2002, unless sooner terminated as set forth in this agreement. CONTRACTOR shall have the option to extend the agreement for four (4) one (1) year terms. To exercise the option for each one (1) year extension CONTRACTOR shall give CITY written notice of the intention to extend no less than sixty (60) days before the end of the term. CONTRACTOR must be in full compliance with all term of this agreement or the option to extend shall be null and void. INDEPENDENT CONTRACTOR'S AGREEMENT Ja,uap/C:\CON'rRACTS\INGRAM'Ss. 2001 JANITORIAL-AMTRAK .~,'~ , .. ,~.~ - Page 1 of 9 Pages- .,.- r, ~IGINAL PROPOSAL FORM' Buildln~ Maintenance ~ Monthly Fee ~ 0 Yearly Fee ~c~ ~ Platform Area andBgildin~ ,Walkway M~alntenance Monthly F~ ~~.~-, 0 0 · Yearly Fee ~ AMTRAK JANITORIAL_SERVICES Exhibit "A~ The contractor shall be responsible for all cleaning and maintenance equipment, supplies, lamps, and service personnel. I. DAILY SER.VICr~ (seven days per week) 1. Reztmoms Clean all areas inside'rest rooms. This includes the following: a. Empty and cie. an waste rec~tades. Rcplac~ plastic liners. b. Clean and refill soap, tissue and towel dispensers. c. Cie, an mirrors, shelves and counter tops. Clean push plates on doors. d. Clean water closets, scat (top and bottom), urinals, lavatories, wash basins, sinks, partitions and show~; u,~ dis'tolerant d~tergents, e. Sweep and wet-mop or scrub floors using disinfectant detergents. f. Plunge clogged drains; report required maintenance to the City of Bakersfield. 2. Ash Trays and Rec~lacles Empty all ash trays and sand urns and/or corridor ash receptacles and wipe with ~ damp cloth. 3. Wast~ Containers a. ]Empty all wastebaskets and other waste containers within the building. Plastic liners shall be furnished and placed in all waste containers as needed. Waste paper and trash shall be disposed of in the waste collector provided by the City. b. Damp-wilg all obvious surface dust and smudges from waste r~ccp~a~les. 4. Drinking Fountains Clean drinking foun~ns; polish bright work and sanitize. 5. Floor~ Completely sweep and damp-mop all non-carpeted floors.. 6. Windows/Glass/Mirrors/Doors/Counter tops. Remove all fingerprints and smudges from all surfaces located on doors, partitions, bookcases, directories, windows, glass and Formica. Use only chemicals that will not harm or damage any signs. 7. Lights Replace all fluorescent and incandescent light bulbs as required. Special apparatus may be requital. It. Entryways Sweep all debris/litter from within 10 feet of all enltyways. b. Scrub area as neaxlcd to maintain a clean, odorless entryway, removing all stains. c. Empty all ash and trash receptacles. 9. Platform Area and Building Walkways a. · Inspect area and sweep or power-blow. The material must be collected and removed.' b. Empty trash receptacles in thc platform area; replace trash can liners. c. Mop all spills. d. Remove trash from railroad tracks, loading platform and flower and shrub beds, including those in the parking lot. II. WEEKLY SERVICES 1. Floors shall be restored and buffed with a high ~ floor machine. 2. Clean all walls to remove all din, dust and litter. 3. Platform Area and Building Walkways Pressure-wash or use compatible method to remove dirt and stains from the concrete surface on the platform and sidewalk surrounding the Amtrak building. This does not include the bus loading area, instead, only the area from the platform area to the pillars in the bus loading area. Ill. MONTHLY SERVICES 1. Clean all furniture and cabinets to r~mov¢ fingerprints, scuff marks, etc. 2. Wash all waste receptacles 3. Clean tile walls, partitions and doors. 4. Platform Area and Building Walkways a. High=pressure-wash gum, tar, rubber marks and other hard-to-remove stains. IV. QUARTERLY SERVICES All quarterly services mm be accomplished within the fret ninety (90) days of the contract commencement date and at ninety (90) day intervals thereafter. 1. Clean all light fixtures. 2. Dust window ledge and sills, baseboards and door moldings. 3. Wash all windows, inside and outside; clean sills and frames. V. SEMI-ANNUAL SERVICE 1. Platform Area and Building Walkways High-pressure-wash canopy VI. ANNUAL SERVICE 1. Using proper cleaning materials, thoroughly wash all walls, cabinets and partitions. Contractor shall notify owner when monthly, quarterly, semi-annual and annual maintenance is done so that inspection can be made by owner. Restrooms shall be cleaned twice daily per the requirements, once at 9:00 a.m. and again at 8:00 Work will not be allowed inside the building between the hours of 1:00 a.m. and 5:00 a.m.