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HomeMy WebLinkAbout06/04/04 B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM June 4, 2004 TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager /~7"/.,,,/ SUBJECT: General Information 1. Next Monday, we wrap up the special meetings for budget presentations. On Wednesday, we celebrate the opening of the McMurtrey Aquatic Center and hold a Council meeting. 2. The "grand reopening" events for the Beale and MLK pools have been scheduled. The Beale event will take place on Monday, June 14th at Noon, and the MLK event will be on Tuesday, June 22nd at 10:00 a.m. Recreation and Parks staff is working on the details, and we will have more information for you next week. 3. The State Legislative Analyst's Office has issued an assessment of the Governor's local government proposal. John Stinson prepared a report that describes the recommendations and the potential impacts on the City. The LAO's recommendations do not change the Governor's proposal, but they may be taken into consideration by the Governor and the Legislature during budget deliberations. Both documents are enclosed. 4. A status report is enclosed from the City Attorney on the proposed corrective legislation that is being considered to address the use of volunteers in public projects. 5. The Building Department has completed an update of unreinforced masonry buildings in the city. Of the 205 URM buildings on our list, 179 meet the City's ordinance, by having been retrofitted, demolished, determined to be non-bearing wall structures, or converted to storage-only occupancy. There are 26 buildings not in conformance and, in accordance with State law, signs have been posted at their entrances indicating they may not be safe in the event of a major earthquake. The report has been submitted to the State Seismic Safety Commission, so their records can be updated. It is enclosed for your information. 6. Responses to Council requests are enclosed, as follows: Councilmember Benham · Status report on possible grant funding for a "Community Prosecutions" program; Honorable Mayor and City Council June 4, 2004 Page 2 · Status report on staff action regarding DBA suggestions related to downtown weekend safety issues; · Update on repair to the railroad fence near Bakersfield High School; · Graffiti clean up on both sides of Union between Highway 178 and Columbus; · Replacement of trash toter defaced by graffiti; · Status of citizen inquiry regarding repair of potholes on Oregon Street and possible use of CDBF funds; Councilmember Ma.q.qard · Feasibility of requiring owners to clean up graffiti on their junction boxes and mail boxes; · Correspondence to GET requesting their financial participation in maintaining roads near their bus stops; Councilmember Couch · Report on the function of fire districts; · Draft resolution regarding notification to the railroad about repairs and monitoring the process; Councilmember Hanson · Staff action regarding dead trees in Campus Park; Councilmember Sullivan · Status of patching potholes on White Lane, west of Ashe Road; · Status of alley repairs behind Reeder Avenue; Councilmember Salvaqgio · Repair schedule for the cement median on White Lane, west of Wible Road; · Removal of graffiti on the masonry walls on the south side of South H Street from Ming Avenue to Lemay; · Code enforcement actions regarding roosters on Laurel Drive. 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 May 28, 2004 TO: Alan Tandy, City Manager FROM: John W. Stinso~,/~s~sistant City Manager SUBJECT: Legislative Analyst's Assessment and their recommendations regarding the Governor's Local Government Proposal Attached is a copy of the Legislative Analyst's Office (LAO) assessment and their recommendations regarding the Governor's Local Government Proposal. I have included their recommendations and the potential impacts of their alternatives on the City of Bakersfield based on information available at this time. These are only the LAO recommendations and do not change the Governor's Budget Proposal, however they may be used by the Legislature and the Governor in their budget deliberations. Recommendation 1: Modify the local government finance protection provisions of the measure to protect local government aggregate tax revenues, but not the specific allocations among California's thousands of local agencies. Impact: This recommendation could provide a means for the State to shift revenues between local agencies in the future. For example: the State could realign state programs to Counties and then shift "local tax dollars" from cities or other local agencies to counties to fund them. So they would not technically be reducing local revenues but would just reallocate them among local public agencies. This also could result in Sales Tax distributions being changed from the current situs to population distribution which could reallocate these revenues to "local governments" such as the County or cities and counties in other areas of the state. These are exactly the types of revenue captures and maneuvers we are opposed to. Recommendation 2: Reject the administration's VLF for K-14 property tax swap, unless the administration provides a compelling policy rationale for this complex transaction. Impact: This recommendation would have a positive effect on the City. The LAO suggests there is a simpler solution and recommends the Legislature propose a VLF backfill guarantee amendment in the State Constitution. The VLF tax swap takes a S:~JOHN\Budget\LAO Assessment of Gov's Local Government Proposal.doc revenue that grows more consistently with inflation (VLF) and replaces it with one where growth is limited (Property taxes) to the financial detriment of the City over time. The promise to provide a backfill with property taxes is no better or worse than the promise to backfill the VLF capture with state general funds. We would prefer no reduction to VLF revenues at all. Recommendation 3: Restructure the $1.3 billion property tax shift proposal to reduce the fiscal effect on local government general purpose revenues, target those impacts on local governments best able to bear them, and address the state's long-term budgetary pressures. Impact: This recommendation is more complex. The LAO suggests exempting cities and counties from the shift of property taxes, but they would retain the recommended shift of property tax revenues from Special Districts and Redevelopment Agencies. In addition, they recommend eliminating Special Subventions such as the COP's program. For the City of Bakersfield this would mean an ongoing permanent reduction in COP's funding of about $400,000 annually vs. the two year capture of property taxes of $3.2 Million each year. The City's loss of Redevelopment property taxes would remain the same only shifting property taxes for a two year period. Special Districts would have an ongoing shift of their property tax revenues. The LAO also recommends the repayment of the VLF gap loan over a three year period beginning in FY 06-07 instead of the lump sum that year proposed by the Governor. Recommendation 4: Maintain two major provisions of the administration's mandate proposal (automatic sunset of unfunded mandates and elimination of the mandate suspension process), but revise other elements of the proposal in order to increase accountability, r Impact: The LAO recommendation similar to the Governor's proposal mandate recommendations would have a positive effect on the City either being relieved of unfunded mandates due to the sunset provision or not receiving payment required by law due to the mandate suspension process. The repayment of past mandate costs by the state would still occur over a five year period beginning in FY 06-07 consistent with the Governor's proposal. S:~JOHN\Budget\LAO Assessment of Gov's Local Government Proposal.doc May 24, 2004 LAO 60 YEARS OF SERVICE / -- ' ........... . EL ZABETH G. HILL · LEGISLATIVE ANALYST The administration's local government pro- posal would make far-reaching changes to state-local finance. Our review of the pro- posal indicates that it would greatly increase the stability of local finance and increase accountability in the mandate process. We also find, however, that the proposal locks in place the current flawed state-local fiscal structure, imposes added fiscal stress on many local governments, and is not structured in a fashion that addresses long-term state fiscal goals. For the Legislature's consideration, we provide various recommendations to bring the proposal into greater alignment with leg- islative goals and state fiscal objectives. 1 AN LAO REPORT This report was prepared by Mark Ibele and To request publications call (916) 445-4656. Marianne O'Malley. The Legislative Analyst's This report and others, as well as an E-mail Office (LAO) is a nonpartisan office which [] subscription service, are available on the provides fiscal and policy information and LAO's Internet site at www. lao.ca.gov. The advice to the Legislature. LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814. 2 LEGISLATIVE ANALYST'S OFFICE AN LAO REPORT INTRODUCTION In its May Revision, the administration provisions relating to local finance, and (3) reforms proposes that the Legislature place before the to the mandate reimbursement process. Figure 1 statewide voters in November a constitutional summarizes the major provisions of the local amendment to enact far-reaching changes to government proposal. state-local finance and intergovernmental While the administration is still developing the relations. Over time, the proposed constitutional constitutional language (and related statutory provisions would significantly influence state Changes), the Legislature will need to begin its decision-making regarding cities, counties, review shortly given the measure's link to the special districts, and redevelopment agencies. 2004-05 state budget and the upcoming deadlines (With the exception of provisions relating to a for placing a measure on the November ballot. proposed tax swap, K-14 districts are largely Accordingly, to assist the Legislature, we provide a unaffected by the measure.) summary and initial assessment of the proposal as In general, the measure greatly restricts state described in materials provided by the authority to reduce noneducation local administration and preliminary language provided government taxes, except for a $1.3 billion shift on May 21, 2004. (We note that some minor from these agencies in 2004-05 and 2005-06. elements of the proposal have changed since our The measure also includes a complex swap of summary of the proposal in the Overview of the vehicle license fee (VLF) "backfill" revenues for 2004-05 May Revision.) As additional information K-14 property taxes and places into the State and specific language for the measure becomes Constitution: (1) the current VLF rate of available, we will provide the Legislature with 0.65 percent, (2) certain existing statutory additional analyses. Figure '1 Major Provisions of the Administration's Local Government Initiative I Policy Area Provisions I Protection of Major Local · State may not reduce the rate of the sales tax, or realiocate or delay any local Government Revenues government's share of revenues from the property tax, sales tax, or vehicle license fee (VLF), except as provided below under "State Fiscal Relief." · Places the current VLF rate (0.65 pement) into the constitution as the maximum rate. State Fiscal Relief · Authorizes a $1.3 billion shift of local government revenues in 2004-05 and 2005-06. VLF Backfill for Property · Shifts $4.1 billion of K-14 district property taxes to cities and counties as Tax Swap replacement for VLF "backfill" revenues. (As a result, the state would have higher spending on schools--to compensate for the property tax loss--and commensurate lower spending on VLF backfill payments.) Mandates · Unfunded mandates sunset automatically, unless they pertain to educational programs or employee rights or benefits. · Mandates may not be suspended in the budget. · State pays backlog of noneducation mandates over five years, beginning in 2006-07. · The process for determining noneducati0n mandates is expedited, LEGISLATIVE ANALYST'S OFFICE 3 AN LAO REPORT WHAT DOES THE GOVERNOR PROPOSE? Two-Year Budget Relief California State Association of Counties, Under the administration's proposal, California Special Districts' Association, and noneducation local governments would California Redevelopment Association. contribute $1.3 billion in 2004-05 and 2005-06 to their respective county Educational Revenue Augmentation Fund (ERAF) accounts. County Figure 2 auditors would allocate Allocation of, $1.3 Billion Revenue Shift these property tax revenues to K-1 4 districts, j Allocation which in turn would Cities-- · One-third of the $350 million reflects each city's offset a comparable $350 Million proportionate share of statewide city vehicle license fee (VLF) revenues. Another one-third reflects each city's amount of state share of property taxes. The final one-third reflects education spending, each city's share of sales taxes. · Each city's reduction must be at least 2 percent--and (Please see the appendix not more than 4 percent-of the city's general-purpose for some background revenues. information on ERAF and Counties-- · Each county's reduction reflects its proportionate share other local government $350 Million of 2003-04 county nonrealignment VLF..Three small counties (Trinity, Del Notre, and Lassen) are subject to financial terms used in a smaller reduction. In general, the county allocation formula is similar to imposing reductions on a this report.) population basis. Figure 2 provides Independent Special · Enterprise special districts (largely water and waste information regarding the Districts-- disposal districts) shift 40 percent of their property proposed allocation of $350 Million taxes, up to a maximum of $225 million. · Nonenterprise special districts with the exception of the $1.3 billion across fire, police, healthcare, and library districts--shift cities, counties, special 25 percent of their property taxes, up to a maximum of $125 million. districts, and · Fire police, healthcare, and library districts are exempt redevelopment agencies, from the shift. The administration · If this methodology fails to generate $350 million statewide, the percentage reductions are increased indicates that these proportionately. methodologies were Redevelopment · Half of the amount ($125 million) is allocated among developed in Agencies-- redevelopment agencies based on their relative share conjunction with the $250 Million of gross tax increment revenues. The other half is allocated based on tax increment net of revenues following local "passed-through" to other agencies. This formula is similar to the ERAF methodology in cu trent law. government statewide · If an agency fails to make its payment to ERAF, the city associations: League of or county sponsoring agency makes the payment. California Cities, 4 LEGISLATIVE ANALYST'S OFFICE AN LAO REPO'RT Reduced State Authority ~ Eliminating the state's obligation to Over Local Finance. appropriate funds to backfill local Under current law and the California governments for the difference between Constitution, the state has significant authority the 0.65 percent rate paid by vehicle over the rate and/or allocation of most major owners and the original 2 percent rate. local taxes, including the property tax, the ~ Modifying laws regarding the allocation 1 percent local "Bradley-Burns" sales tax, of VLF revenues. optional local sales taxes, and the VLF. The administration's proposal would greatly limit ~ Replacing city and county reduced VLF state authority over local finance by preventing revenues with a portion of K-14 property the Legislature from enacting laws that reduced, taxes. delayed, or reallocated any noneducation local Figure 3 (see next page) summarizes the tax government's share of revenues from the VLF, swap. As shown in the figure, VLF backfill sales tax, or property tax. The measure also payments would be eliminated, thereby would preclude the Legislature from enacting a reducing VLF fund revenues by two-thirds. law to increase the VLF rate over its current 0.65 County health and social services realignment percent rate. programs would receive the same dollar amount Finally, the administration also proposes to of VLF revenues as under existing law, but place into the Constitution certain existing general-purpose VLF revenues to cities and financial provisions or requirements relating to counties would change significantly. Counties local finance. These include requirements that would no longer receive general-purpose VLF the state (1) pay $1.2 billion in 2006-07 for the revenues. Cities would receive the remaining VLF "gap loan" (as discussed in the appendix), nonrealignment VLF revenues, net of the state's (2) guarantee replacement property taxes during administrative costs, or about $227 million. the period that part of the local sales tax is used To offset these city and county VLF to pay Proposition 57's fiscal recovery bonds (as reductions, county auditors would reallocate discussed in the appendix regarding the "triple property taxes from schools and community flip"), (3) reestablish local government's full cQIleges to cities and counties, with K-14 district authority to impose a 1 percent Bradley-Burns property tax losses offset through increased sales tax rate when the fiscal recovery period state education apportionments. (These ends, and (4) pay the backlog of noneducation property tax allocations from K-14 districts to mandate claims in five installments, beginning in cities and counties would be in addition to the 2006-07 (approximately $1.6 billion). property tax allocation required under existing law to replace reduced city and county sales Complex Swap of VLF and taxes under the triple flip.) Property Tax Revenues "Hold Harmless" Provisions. Any shift of The May Revision proposes major changes this magnitude affects local governments regarding city and county VLF revenues and differently due to unique conditions and factors K-14 district property taxes by: LEGISLATIVE ANALYST'S OFFICE 5 AN LAO REPORT in various communities. Seeking to maintain .the Significant Mandate Reform current level of resources for all local The Constitution currently requires the state governments and K-14 districts, the to reimburse local agencies (including K-1 4 administration proposes a wide variety of hold districts) if the state mandates a new program or harmless provisions, including provisions to higher level of service. Under current law, local exempt from the tax swap "basic aid" K-14 agencies file "test claims" with the Commission districts (those districts that receive unusually on State Mandates. If the commission finds a high amounts of property taxes), mandate, it adopts a mandate reimbursement Figure 3 VLF for Property Tax Swap (Do/la rs' in Bi/lions) 2004-05 VLF Paid by · Curent Law Vehicle Owners ($2.0) VLF Backfill Paid by State $6,1 VLF Funda $2~0 ($4.1) Realignment Programs Cities Counties $1.5 $1.5 $1;8. i $0.2' $2~6 $0 Citiesb Countiesb $1.6 $2.6 School Property Taxes Shifted to Localsc aln addition to payments to cities and counties the fund supports various state administrative expenses. bProperty taxes shifted to cities and counties would offset the loss in their ongoing VLF revenues. In 2004-05 and 2005~06. however, the property taxes shifted would be less to provide state fiscal relief. Cproperty tax shift is in addition to the shift required Under current law pursuant to the triple flip. 6 LEGISLAT VE ANALYST'S OFFICE AN LAO REPORT methodology, and reports the mandate's associations submitted signatures to the estimated statewide cost to the Legislature. Secretary of State to qualify "The Local Because of the complexity of this process, it Taxpayers and Public Safety Protection Act" takes several years for the commission to process a (LTPSPA) for the November 2004 ballot. claim. In addition, although the Constitution Although the LTPSPA is similar to the requires the state to reimburse local agencies for administration's proposal in many respects, the mandates, the state does not incur any significant LTPSPA would rescind any state budget action consequences if it defers reimbursements to a later taken this year that reduced noneducation local date. Existing law also permits the state to avoid agency's property taxes. The administration's incurring a mandate liability in any year in which proposal, in contrast, permits the state to the Legislature suspends a mandate requirement in redirect $2.6 billion of local government the budget act. property tax revenues over the coming two Administration's Proposal. The years. The administration's measure also administration proposes an array of changes that (1) places greater restrictions on state authority would be applicable only to noneducation over local finance than does the LTPSPA and mandates. First, the commission would have four (2) takes a different approach to reforming the months to determine whether a noneducation mandate process. As part of the agreement test claim constitutes a mandate. If the between the administration and the statewide commission found a mandate, the Department local government associations, we understand of Finance (DOF) would determine the that the associations have agreed to support the reimbursement methodology and propose the administration's proposal instead of the LTPSPA amount needed to reimburse local governments, if both measures appear on the November If funding at the amount the DOF determines is ballot. If the administration's proposal does not not provided in the next state budget or appear on the November ballot, the local subsequent state budgets, the mandate would government associations have indicated that terminate in 90 days, unless the mandate related they will support the LTPSPA. to employee rights or benefits. The measure also Future State-Local Realignment. As part of would preclude the Governor from vetoing a its proposal, the administration indicated its mandate appropriation. Finally, the intent to propose additional state-local program administration proposes to widen the definition realignment in 2006-07. As we discussed in the of a mandate to include, among other items, 2003-04 Perspectives and Issues (please see situations when the state transfers partial funding page 123), given the size and diversity of responsibility for a joint state-county program. This California, we think realignment of some state would limit state authority to alter existing cost programs could improve program outcomes. sharing agreements, such as for mental health or We note, however, that the administration's in-home supportive services programs, proposal to widen the mandate definition would constrain the Legislature's flexibility in realigning Other Elements of Proposal the fiscal obligations for jointly financed Other Local Initiative on Ballot. Earlier this programs. year, a coalition of statewide local government LEGISLATIVE ANALYST'S OFFICE 7 AN LAC REPORT LAO ASSESSMENT Our review of the preliminary materials the California Legislature may enact laws to provided by the administration indicates that the change the rate and/or allocation of the VLF, proposed constitutional provisions would local sales tax, and property tax. Over the years, increase the stability of local finance and the state has used this authority to address increase accountability in the mandate process, policy concerns, such as changing (1) the share The proposal also contains elements, however, of property taxes allocated to schools after the that appear contrary to the Legislature's long- passage of Proposition 1 3 in order to increase term policy objectives, lack obvious policy resources to cities, counties, and nonenterprise rationales, or are not consistent with state and special districts; (2) the allocation of property local fiscal interests. We summarize our taxes and VLF revenues to cities that had been concerns in Figure 4 and discuss these matters assigned a very Iow share of the property t~xes below, under tax allocation laws; and (3) the amount of revenues required to be : ................ passed-through" by Figure 4 : redevelopment Major Concerns Flegarding Administration's agencies to other local Local Finance Proposal agencies. During [ i periods of state fiscal difficulty, however, the ~/Existing local finance system locked in place, state also has used this ~//Rationale for complex tax swap not clear, authority to transfer ~ Major local fiscal effect for short-term state relief, some of its fiscal burdens to local ~/Mandate proposal shows promise, needs work. governments. For example, in 1992-93 the state began shifting city, county, and special EXISTING LOCAL FINANCE SYSTEM district property taxes to K-14 districts (via ERAF) LOCKED IN PLACE as a means of offsetting state education costs. The May Revision proposal highlights Because of the fiscal impact of these and other tensions between two longstanding interests state actions, local governments have long relating to local finance: (1) local government sought "protection" against future state changes fiscal protection and (2) local finance reform. in local finance. Protecting Local Government Revenues. In Reforming Local Finance. Over the last two contrast to most other states, California law decides, the Legislature and administration have gives state government, rather than local expressed interest in addressing concerns governments or their residents, significant regarding local finance. For example, authority over major local revenues. Specifically, 8 LEGISLATIVE ANALYST'S OFFICE AN LAO REPORT Chapter 94, Statutes of 1999 (AB 676, Brewer), ~ The current "AB 8" methodology for stated that: allocating property taxes among local California's system for allocating prop- governments. erty taxes does not reflect (1) modern needs and preferences of local commu- ~ The VLF or sales tax rate, including sales nities or (2) the relative need for fund- tax rate reductions in exchange for a lng by cities, counties, special districts, broadening of the sales tax base. redevelopment agencies, and schools to carry out their mandated and discretion- We also note that while the measure ary services. In addition, the current decreases the Legislature's authority over local system centralizes control over property finance, the measure does not provide any tax allocation in Sacramento and gives increase in local resident authority over local the state full authority to reallocate prop- taxes. For example, residents would continue to erty taxes to offset state education fund- have virtually no authority over the allocation of lng obligations. The Legislature wishes lOcal property taxes. Thus, residents could not to revamp the current system of prop- erty tax allocation to do the following: decide to shift some local property taxes from a (1) increase taxpayer knowledge of the water enterprise special district to their library allocation of property taxes, (2) provide district. Similarly, residents of a county could not greater local control over property tax decide to have a portion of their local sales allocation, and (3) give cities and coun- taxes allocated on a population basis, rather ties greater fiscal incentives to approve than the existing point of sale (situs) basis. land developments other than retail developments. Instead, the measure locks the existing local fiscal system in place, requiring future As discussed further below, the administration's constitutional amendments any time change is proposal would greatly limit the Legislature's needed or desired. authority to reform local finance. LAo Recommendation: Protect How Does the Administration's Proposal Aggregate Local Revenues but Address Fiscal Protection and Reform? Maintain Authority Over Local Finance The administration's proposal offers Given some past state actions to modify significant protection to noneducation local local finance laws for the fiscal benefit of the governments' revenues, but greatly reduces the state, local government's interest in safeguarding Legislature's authority to reform local local tax revenues is both understandable and government finance. Specifically, our review of reasonable. The state, however, has an the administration's proposal indicates that the important interest in the viability of local fiscal Legislature apparently could not change such affairs and a key role to play in state-local basic components of local finance as: finance issues. The administration's proposal ~ The manner in which the local sales tax would curtail this role by freezing in place is allocated among local agencies, current revenue structures. While this approach LEGISLATIVE ANALYST'S OFFICE 9 AN LAO REPORT provides certainty for local governments (and VLF backfill guarantee be amended into the the state), it does so at the expense of placing Constitution. severe constraints on the ability of state and Existing Land Use Incentives. California local governments and their residents to work cities and counties rely on three major statewide together to improve the shared fiscal landscaPe, taxes, the VLF, property tax, and sales tax, and We urge the Legislature to consider policies some smaller, locally imposed taxes. When that offer local fiscal protection, but still allow considering future land developments, cities and the Legislature and local residents to modify counties typically consider their potential effects revenue sources and allocations. Instead of on these sources of revenues. Local placing restrictions on the ability of the state to governments usually report that they receive the alter existing fiscal structures and institutions, we greatest revenues from retail developments and, recommend the Legislature consider policies accordingly, face fiscal incentives to promote that protect local revenue streams in the retail developments over other developments. aggregate, yet maintain authority to alter these Local governments, in contrast, frequently taxes and the allocation of these revenues among indicate that housing developments do not local governments. This would insure that the state generate sufficient revenues to offset the costs no longer used local funds for state fiscal relief, to provide municipal services to new residents. No Obvious Improvement to Land Use RATIONALE FOR COMPLEX Incentives. To give cities and counties incentives TAX SWAP NOT CLEAR to approve a balance of land developments The proposed shift of VLF backfill revenues (including housing), many local government for K-14 property taxes is extraordinarily observers have suggested the state decrease city complex. To date, the administration has not and county reliance upon the sales tax and articulated a rationale for this swap, although increase their reliance on the property tax. The others have attributed its purpose as seeking to: administration, however, proposes to trade VLF (1) protect local government revenues against revenues for property taxes. Overall, we do not possible future delays in state payment of VLF see why this swap would improve local backfill revenues and/or (2) improve local government land use incentives. In the case of government land use incentives. As we discuss housing developments, for example, cities and below, the tax swap does not appear to be counties would receive higher property tax justified by either of these rationales, revenues, but much of this increase would be Swap Not Necessary to Provide Local offset by greatly reduced VLF revenues, a tax Protection. In the current year, local allocated on a population basis. Moreover, we governments sustained revenue reductions note that local governments do not receive when payment of the VLF backfill was delayed, property taxes from public housing If the goal of the proposed swap is to give local developments, whereas they receive VLF governments protection against future delays Or revenues for the people residing in these nonpayment of VLF backfill payments, there is a developments. simpler solution: the Legislature could propose a 10 LEGISLATIVE ANALYST'S OFFICE AN LAO REPORT LAO Recommendation: Unless Policy State Budget Relief Is Short Term. The Benefit Is Evident, Reject Tax Swap administration's proposal offers substantial state To date, we see no information suggesting budgetary relief for two years. As we discuss in that the highly complex tax swap would be our Overview of the 2004-05 May Revision, beneficial to the state or to local governments, however, the state's fiscal problem spans a Absent evidence to the contrary, we much longer period. We note that in 2006-07, after the temporary $1.3 billion relief from local recommend the Legislature delete this tax swap from this proposal. We note that the local governments ends, the state is scheduled to pay government association initiative does not (1) the $1.2 billion VLF gap loan and (2) the first Of five installments to reimburse local include a comparable tax swap. As an alternative, the Legislature could amend the government mandate obligations (a debt that is Constitution to guarantee the annual VLF likely to total $1.6 billion by 2006-07). Together, backfill, these local government-related obligations will pose a significant challenge for the state MAJOR LOCAL FISCAL IMPACT FOR beginning in 2006-07. SHORT-TERM STATE RELIEF Potential Higher State Education Costs. The For some agencies, the requirement to proposed reduction in property taxes for K-14 contribute their share of the $1.3 billion in districts could result in higher costs for the state 2004-05 and 2005-06 will pose significant than under current law. While it is difficult to financial burdens. For example, certain predict how the property tax and VLF will independent recreation and park districts would perform in the future, we note that property tax lose more than 15 percent of their total growth over the last four years has been quite revenues in 2004-05 and 2005-06. Cities and robust, averaging close to 8 percent annually. counties-some facing considerable fiscal The VLF, in contrast, has grown at a rate closer pressures of their own-also will sustain to 6 percent annually over the same period. To the extent that the property tax continues to significant reductions in general purpose revenues. Finally, with the exception of grow at a rate faster than the VLF, local enterprise special districts (which have broad governments would benefit, but the state would authority to raise replacement revenues through experience increased education funding user fees) local communities are likely to obligations. Assuming these growth rates prevail experience service reductions during the two through 2006-07 (when the plan is fully years that their property taxes would be implemented), this tax swap could result in reduced. Given the fiscal effect of the higher state K-14 expenditures of almost administration's measure on local governments, $200 million annually. This increased it is important to assess the extent to which this expenditure obligation would continue to proposal is structured in a manner that offers increase over time. state fiscal relief while imposing the least harm on local governments. LEGISLATIVE ANALYST'S OFFICE 11 AN LAO REPORT LAO Recommendation: county boards of supervisors based on Restructure Relief Package their review of independent special In view of these factors, we recommend that districts' capacity to offset tax reductions the Legislature consider altering the proposal in through user fees or efficiency improve- order to restructure the burden on local ments. This special district property tax reduction primarily would affect water governments and, in the process, stretch out state budgetary relief over a longer period of and waste disposal enterprise special time. We recommend that the Legislature districts and is consistent with long- consider (1) reducing revenue shifts from those standing statement of legislative intent local governments that are less able to generate (Government Code Section 16270). replacement revenues, (2) maximizing local >- Special State Subventions. To maximize control by reducing special purpose subventions local fiscal flexibility, our alternative rather than general purpose revenues and would not reduce city or county prop- authorizing some local decision-makin§ over erty taxes, but instead eliminate special property tax allocation, and (3) redistributing purpose funding of $200 million that state budget savings from 2004-05 and 2005-06 these local governments receive under into future years, the Citizens' Option for Public Safety Below, we present an alternative that and the Juvenile Justice Grant programs. incorporates these features. The alternative would maintain the administration's proposed >- Existing State Obligations. Our alterna- $2.6 billion in budget relief, but restructure the tive would call for the state to repay its proposal to redistribute the impact on local VLF gap loan in three equal $400 million governments and provide state relief over a payments beginning in 2006-07, instead longer period of time. It is important to note that of a lump sum of $1.2 billion in that year. there are numerous other a!ternatives that could In addition, our alternative retains the result in similar benefits for both the state and administration's proposed treatment of local governments. Our suggested alternative mandates by reimbursing local govern- consists of the following components: ments for these costs in five equal annual >- Property Tax Shift. Our alternative installments beginning in 2006-07. would exempt cities and counties from Figure 5 shows the state budget impact of the property tax shift, but retain the the two proposals. The figure displays the administration's proposed $2,50 million revenue impacts of the property tax shift and reduction for redevelopment agencies in the reduction in special subvention payments, as 2004-05 and 2005-06. In addition, it well as the state's payment of existing local would include an ongoing annual government VLF and mandate obligations. As property tax reduction of $220 million shown in the figure, the administration's plan for special districts. This special district would result in savings of $1.3 billion in each of reduction would be implemented by the first two years, compared with the 12 LEGISLATIVE ANALYST'S OFFICE AN LAO REPORT $670 million of savings in each of these years in ~ Cities and counties would not lose our alternative. In 2006-07, however, the state general purpose revenues but would would repay the VLF gap loan (pursuant to lose $200 million in resources annually, current law) and make the first mandate due to the elimination of special pur- payment (pursuant to the administration's pose subvention payments. proposal) for a total of approximately ~ Redevelopment agencies would be $1.55 billion. In conirast, our alternative would treated the same as under the require the VLF gap loan to be paid over a three- administration's proposal. year period and partially offsets these liabilities by the ongoing property tax reductions for ~ Special districts' property tax shifts special districts. The administration's mandate would be ongoing and locally deter- repayment would be included in our alternative mined. During the first two years, our as well. proposal would result in a lower prop- The administration's proposal and our erty tax loss for special districts than the alternative would result in identical total losses administration's proposal, but higher for local governments from 2004-05 through losses thereafter due to the ongoing 2008-09, but the distribution of these losses nature of the shift. would differ significantly. Specifically: For the state, the alternative presented above would provide substantially lower Figure 5 budget savings during AlternatiVe StruCture.Could Ease State Fiscal Stress the initial two years, Budget'Impacts of Local Govemment Proposalsa compared to the (in Billions) administration's proposal, but would result in significant 1.0 · Alternate Plan budget relief in .5 · AdminiStration's Proposal subsequent years. By altering various 0 components of the proposal (and making -.5 changes to existing state -1.0 obligations), our alternative provides an ,1.5 easier fiscal transition in 2006-07. -2.0 2004-05 2005-06 2006-07 2007-08 2008-09 alncludes impacts of existing VLF gap loan repayment and mandate obligation proposal. LEGISLATIVE ANALYST'S OFFICE 13 AN LAC REPORT ~NDATE PROPOSAL SHOWS more broadly than the administration's PROMISE, NEEDS WORK proposal.) While critical details regarding the Ending Mandate Suspension Process. administration's mandate proposal are still under Legislative actions to suspend mandates in the development, two elements of the plan would annual budget frequently result in unreimbursed sign'ificantly improve the state's mandate local costs because it makes it very difficult for reimbursement process. We discuss these local agencies (or others) to understand the elements, along with some concerns regarding requirements of state laws. As an example, the proposal, below. Figure 6 explains the steps a local agency official Tearing Up the Mandate Credit Card. would need to take to know how long a stray Usually, when the state faces difficulties funding dog must be held at a shelter before it could be a program, the state modifies or repeals the euthanized. In addition, local agencies often program. In the case of mandates, however, incur unreimbursed local costs under the state actions to defer mandates costs result in suspension process because it is difficult to local agencies being required to implement change local policies immediately after a programs without funding-representing mandate is suspended. In our view, the essentially an involuntary loan from local administration's proposal to reform a system that makes state laws difficult to understand and governments to the state. In addition, state actions to defer mandates costs tend to reduce imposes unreimbursed costs on local agencies is the state's incentives to review and reduce appropriate and commendable. mandate program costs. In our view, adopting the ........................ Figure 6 administration's proposal to sunset most unfunded Steps Required to Understand State Law Regarding the Holding Period for Stray Dogs mandates would increase state accountability regarding · Read Section 31108(a) of the Food and Agricultural Code: "The required holding period for a stray dog impounded pursuant to this division shall be six business mandates. (We also note days ..." that legal challenges · Review annual Commission on State Mandates reports tothe Legislature to relating to the state's determine if this requirement was found to be a state-reimbursable mandate. (In this case, the requirement was found to be part of the "Animal Control" failure to fund mandates mandate.) are pending in lower · Determine which state agency was assigned responsibility for the mandate. (In courts and it is this case, the Department of Food and Agriculture.) conceivable that future · Review state budget act appropriations for the affected state agency to determine if the mandate has been suspended that fiscal year. (For 200:3-04, the court rulings regarding Animal Control mandate was suspended.) unfunded mandates · If the mandate has been suspended, review the applicable code section as it could constrain the stood before the revision was enacted that created the mandate. ( n this case, the previous code sections were stricken from the codes, but they generally Legislature's authority required a three-day holding period.) 14 LEGISLATIVE ANALYST'S OFFICE AN LAO REPORT Concerns Regarding Administration's LAO Recommendation: Revise Mandate Proposal. Based on the materials Mandate Proposal to Link available at this time, we note several areas of Authority and Responsibility concern regarding the administration's proposal. For about a year, the Assembly Special Specifically, it: Committee on Mandates has been reviewing :~ Further complicates the mandate reim- individual state mandates and the mandate bursement system by creating a dual process. In April 2004, drawing from testimony process for mandate determinations: the provided from a wide array of parties and our existing, slow process for education previous mandate analyses, our office presented mandates and an expedited process for a proposal for an accountable, expedited city, county, and special district man- mandate process. Figure 7 (see next page) dates, summarizes our proposal, which contains many similarities to the administration's proposal, most ~' Does not explain why unfunded em- notably the establishment of an automatic ployee-related mandates should con- sunset requirement and the repeal of the tinue to have the force of law while mandate suspension process. unfunded public health, public safety, Other elements of our proposal, however, elections, and all other mandates should differ notably from the administration's proposal, sunset, including our common treatment of all ~ RuShes the mandate determination mandates (education, noneducation, and labor process, making it difficult for the corn- relations), the assigned roles and responsibilities mission to render mandate determina- of state agencies, and the process for tions that meet the legal standards determining a reimbursement methodology. In required by courts, general, while we find much about the administration's proposal to recommend, we ~ Assigns the difficult and controversial think the conceptual approach outlined in our responsibility of estimating mandate alternative offers significant advantages. These costs to the Department of Finance. advantages are highlighted in Figure 8 (see page Because of potential conflicts of interest, 17). Accordingly, we recommend the Legislature this task is probably more suited to the substitute it for the administration's approach. State Controller's Office. CONCLUSION The administration has proposed a fiscal interactions, and reform the mandate significant local government package with process. Our review of the proposal indicates provisions that help address the state's that it would increase the stability of local budgetary difficulties, alter long-term state-local finance and increase accountability in the LEGISLATIVE ANALYST'S OFFICE 15 AN LAO REPORT Figure 7 A Mandate Reimbursement Process With Greater Emphasis on Accountability and Results Maximum ~;~ ~'~ Elapsed Time Time ~rr~> '~ Action , . ~.~, (In Months) The Legislature passes a law, a state agency promulgates a regulation, the Governor signs an ex~utive order. Up to 12 months Local agencies may file a claim up to one yea[ aEer (1) a mandate is created 12 or (2) they experience increased costs. Up to 12 mOnths Reconfigur~ Commission on State Mandates (CSM) deliberates. State and 24 local agencies fund CSM a~ivities through reimbumements and fees. Up to 4 months If CSM finds a mandate, the State Controller's ~ice (SCO), with a~istance 28 from an ongoing local agency adviso~ ~dy, develops a "ma~nable mimbumement methodology' that balances accuracy with simplicity--and specifies a futura date when mvbion to the methodology shall be considered. Up to 2 mOnths The CSM reviews the proposed SCO reimbumement methodology. The CSM 30 may return the methodology to SCO.for revision if it finds the methodology ~nconsistent with the CSM mandate determination. Up to 2 months If necessa~, the SCO reviews CSM comments and may make changes to its 32 methodology. Up to 2 months The CSM either approves the SCO methodology or adopts findings identi~ing 30 - 34 its concerns with the methodology. The CSM repo~s the mandate, the SCO methodology, and any concerns to the Legislature. and administration. .Up to 6 months The Legislature funds the ma~ate (either in legislation or the budget act) and 36 - 40 specifies the reimbumement methodology. If the Legislature does not fund the mandate, the SCO shall notify affected local agencies that the mandate is invalid, pumuant to state statute. Legislative Counsel prepares legislation for the chaim of the local government policy committees to introduce to codify the repeal of the mandate. Annually thereafter Local agencies submit claims for mandate mimbumement in the fiscal year after costs are incurred. The Governor proposes and Legislature appropriates funding for mandates in the annual budget bill, including any funding needed to pay prior-year'mandate deficiencies. The annual suspension proce~ in the budget bill is repealS. If mandate mimbumement is not provided, the mandate is invalid. (As in above, the SCO will noti~ local agencies and LegislatNe Counsel will prepare draft legislation for the chaim of the local government policy commiUees to introduce to codify the repeal of the mandate.) If a valid local claim is unpaid for mom than two yearn after submi~al, a local agency may bring action in superior cou~ to have the mandate declared invalid. 16 LEGISLATIVE ANALYST'S OFFICE AN LAC REPORT ~ Reject the Figure 8 administration's VLF Advantage of LAO Mandate Approach OVer Administration's Proposal for K-14 property ~ ~.,~g~, I tax swap, unless the , r~ ~ '~ ' ~,,~,~ · . ' administration ~ Creates a single, expedited process for all mandates, provides a compel- ling policy rationale ~/Greatly simplifies the mandate claiming process, for this complex 1//Avoids conflicts of interest in developing mandate cost estimates and transaction. reimbursement methodologies, ~/' Strengthens the mandates determination process by ~ncreasing state ~ Restructure the agency part c pation, restructuring the commission, and establishing $1.3 billion property reasonable deadlines, tax shift proposal to reduce the fiscal mandate process. We also find, however, that effect on local government general- the proposal lacks overall policy coherence and, purpose revenues, target those impacts in exchange for short-term state fiscal relief, on local governments best able to bear locks in place the current flawed state-local fiscal them, and address the state's long-term structure, budgetary pressures. Accordingly, we recommend the Legislature review the proposal with the objective of ~ Maintain two major provisions of the bringing it into greater alignment with legislative administration's mandate proposal goals and state fiscal objectives. Specifically, we (automatic sunset of unfunded mandates recommend the Legislature: and elimination of the mandate suspen- sion process), but revise other elements ~ Modify the local government finance of the proposal in order to increase protection provisions of the measure to accountability. protect local government aggregate tax revenues, but not the specific allocations among California's thousands of local agencies. LEGISLAT VE ANALYST'S OFFICE 17 AN LAO REPORT 18 LEGISLATIVE ANALYST'S OFFICE AN LAO REPORT APPENDIX Vehicle License Fee (VLF) repaid to local governments in 2006-07. By The VLF is an annual fee on the ownership executive order, the current administration of a registered vehicle in California, levied in lieu returned the rate to 0.6,5 percent in November 2004. of taxing vehicles as personal property. Revenues from the VLF are dedicated to local ERAF governments. The fee is based on the In 1992-93, the state directed each county depreciated value of the vehicle according to a auditor to establish an Educational Revenue set schedule. Vehicle owners currently pay a 0.65 percent rate, with the difference between Augmentation Fund (ERAF) and annually transfer to this fund property taxes that otherwise would this and the former 2 percent rate paid by the be allocated to cities, counties, and special state General Fund (see "VLF Backfill"). districts. In 1993-94, the state increased the VLF Backfill annual amount of property taxes shifted from these local agencies. In 2003-04, the amount of In 1998, the Legislature adopted a schedule property taxes deposited to ERAF totals about of VLF rate reductions, which resulted in the rate $5 billion. The state's original purpose in falling from 2 percent to 0.65 percent by 2000. In conjunction with these VLF reductions, cities creating ERAF was to allocate the property tax funds to K-14 districts, thereby offsetting state and counties continued to receive the same education spending. As part of the "Triple Flip" amount of revenue that they would have under the 2 percent rate, with the reduced VLF agreement discussed below, however, the state revenues from vehicle owners replaced by pledged to use some ERAF revenues to replace General Fund revenues or backfill. Under transferred city and county sales tax revenues. current law, the backfill for 2004-05 is estimated Triple Flip to be $4.1 billion. The state's Economic Recovery Bonds, VLF Gap Loan approved by the voters in March 2004, are secured by a pledge of revenues from an The previous administration made a increase in the state's share of the sales and use determination in June 2003 that there were tax of one-quarter cent beginning July 1, 2004. insufficient funds for the state to continue The share of the tax going to local governments making General Fund backfill payments to local will be reduced by the same amount and, in governments. The backfill ceased and the VLF exchange, local governments will receive an rate paid by vehicle owners increased to increased share of the local property tax (and 2 percent approximately three months later. The K-14 districts a reduced share) during the time "gap" period between when the backfill ceased the one-quarter cent is being used to pay off the and the increased VLF rate occurred resulted in bonds (estimated to be between 9 and 14 years). a loss in local revenue of $1.2 billion, essentially This shift in revenues between the state and local representing a loan to the state scheduled to be governments is known as the "triple flip." LEGISLATIVE ANALYST'S OFFICE 19 AN LAO REPORT 20 LEGISLATIVE ANALYST'S OFFICE RECEIVED JUN- I 2004 M E M O R A N D U M cITY MANAGER'S F- CITY ATTORNEY'S OFFICE June 1, 2004 TO: ALAN TANDY, CITY MANAGER FROM: VIRGINIA GENNARO, CITY ATTORN SUBJECT: VOLUNTEER/Prevailing Wage Please find attached a recent update on the volunteer/prevailing wage situation. VG:ls S:\GG\M EMO\Volunteer.doc MEMORANDUM CITY ATTORNEY'S OFFICE May 26, 2004 TO: VIRGINIA GENNARO, CITY ATI'ORNEY FROM: ALAN D. DANIEL, DEPUTY CITY ATTORNEY SUBJECT: AB 2690 USE OF VOLUNTEERS IN PUBLIC WORKS PROJECTS Because of certain problems which have arisen from the legislative enactments involving the definition of volunteers and the new definitions of public works projects, the Legislature has proposed an amendment to Section 1720.4 of the Labor Code. The bill would amend the section to exclude volunteers, as defined, from having to be paid prevailing wage on "public works" projects. One of the best parts of the bill is it would apply retroactively and cover work concluded on or after January 1,2002. The bill is being supported by the California Water Shed Network, Adoptive Water Shed and the Urban Creeks Council. ADD:dll Attachment S:\Public Works\ME MOS\Voiuntee rsM mo3.SB2690.doc AB 2 90 AS mbly Bill - ANENDED Page ! of 3 BIlL NUMBER: AB 2690 AMENDED · ~ BILL TEXT AMENDED INiASSEMBLY MAY 20, 2004 AMENDED IN ASSEMBLY APRIL 26, 2004 'AMENDED IN ASSEMBLY APRIL 12, 2004 INTRODUCED BY Assembly Member Hancock FEBRUARY 20, 2004 An act to ~ ~~ ~n ~ ~ ~n ~ repeal and ad~ Section 1720.4 to the Labor Code, relating to public .works. .LEGISLATIVE COUNSEL'S DIGEST AB 2690, as amended, Hancock. Public works: funds. Existing law defines "public works," for purposes of ~egulating public works contracts, as, among other things, construction, . alteration, demolition, installation, or rePair work done' under contract and paid for in whole or in part out of public funds. · Otherwise covered work that meets certain criteria, including work ~hat is performed entirely by volunteer labor, is excluded from ~his definition of "public works." Pursuant to existing law, all workers employed on public works shall be paid not less ~han the general prevailing rate of per di~ wages for work, except for public works projects of $1,000 or less. .This bill would exempt from .these provisions any work that is performed by a volunteer, a volunteer coordinator, or by me~ers of ~he California Conservation Corps or of certified Co--unity Conserva t i on Corps. The bill would apply this exemption retroactively ~o otherwise covered work concluded on or after January 1, 2002, to the extent perm~ed by law. Vote: · majority. Appropriation: no. Fiscal co~ittee: yes. State-mandated local progr~: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: http://www.~eginf~.ca.g~v/pub/bi~/asm/ab-2651.27~/ab-2690-bi~-2004~52~-amended-asm.ht~ 5/24/2004 AB 2'~90 A~sembly Bill -' AMENDED Page' 2 Of 3 SECTION l. Section 1720.4 of the Labor Code is repealed. (d) The vmrk i~ ~rcvcd ~' tkc Dircctcr cf ~n~u~tria! Rc!~ticn- SEC. 2. Section 1720.4 is added to the Labor Code, to read: 1720.4. (a) This chapter shall not apply to any of the following work: (1) ~y work perfo~ed by a volunteer~ For purposes of this section~ "'volunteer" means an individual 'who performs work for civic, charitable, or h.~anitarian reasons for a public agency or corporation ~alified under Section 501(c)(3) of the Internal Revenue. Code as a tax-exempt organization, without promise, e~ectation, or receipt of any compensation for work performed. (A) ~ individual shall be considered'a volunteer only when his or her services are offered freely and without pressure and coercion, direct or implied, from an employer. '(B) ~ i'ndividual may receive reasonable meals, lodging, transportation, andincidental e~enses or nominal non-monetary awards without losing volunteer status if, in the entire context of the situation, those benefits and pa~ents are not a substitute form b.f .compensation for work performed. (C) ~ individual shall not be considered a volunteer 'if the person is otherwise employed for compensation at any time (i) in the construction, alteration, demolition, installation, repair, or maintenance work on the s~e project, or (ii) by a contractor, other than a corporation ~alified under Section 501 (c)(3) of the Internal Revenue.Code as a tax-exempt organization, that is receiving pa~ent to perform construction, alteration, demolition, installation, repair, or maintenance work on the s~e project. (2) ~y work perfo~ed by a volunteer coordinator. For purposes of this section, "volunteer coordinator"' means an individual paid by a corporation ~alified under Section 501 (c)(3) of. the Internal Revenue as a tax-exempt Organization, to oversee or supervise Vol un t eers. . (3) ~y work performed by me, ers of the California Conservation Corps or of Co, unity Conservation Corps certified by' the California Conservation Corps pursuant to Section 14507.5 of the Public Resources COde. (b) This section shall apply retroactively to othe~ise covered work concl'uded on or after January 1, 2002, to the extent permitted by .law. b~p://wwwJeg[nfo.~.GoWpub/b[H/asm/ab_2651-2700/a~2690 b~H 200405203mended3sm,L,. 5/24/2004 AB L:Y69OA~sembly Bill - AMENDED Page 3 of 3 purcu=_nt tc Section 1~_597.5 of the ~"~ ;~ ~ ......... '"^~ 1720.~. To the extent that ~ub!ic fund~ zrc ~-:zi!zb!c cr mz~~ c~cn~cd to ~rcscrvc tkc zbi!ity fcr citizcnr tc vc!untccr zn~ ?zcrk http://www.leginfo.ca.gov/pub/bill/asm/ab_2651-2700/ab_2690 bill 20040520_amended_asm.k.. 5/24/2004 B A K E R S F I E L D M E M O R A N D U M RECEIVED June 2, 2004 TO: Alan Tandy, City Manager /..~/_ FROM: Jack Hardisty, Development Services Dir~~/ SUBJECT: Un-reinforced Masonry Building Update I about 'un-reinforced A couple of months ago there was an artic e - masonry buildings in Bakersfield. The story cited a California State Seismic Commission report indicating that there were still many more URM buildings in Bakersfield than I thought. The Building Department has concluded its review of URM buildings and a summary of its findings is attached. We will be sending a copy to the State Seismic Safety Commission to correct its records. JH:djl Attachment PAMemos\URM buildings.doc B A K E R S F I E L D MEMORANDUM .lune 2, 2004' TO: ]ack Hardisty, Development Services Dir~.~ FROM: Jack Leonard, Acting Building Director ~~' SUBJECT: URM Update We have concluded our update of the City's URM list. Of the 205 URN buildings on the list, 179 meet the City's ordinance having been retrofitted, demolished, determined to be non-bearing wall structures, or converted to storage only occupancy. The remaining 26 not meeting the requirements of the ordinance have been declared "non- conforming" URN buildings. Due to state law, a sign has been posted at the entrance of each of these non-conforming URM buildings stating; "This is an un-reinforced masonry building. Un-reinforced masonry buildings may be unsafe in the event of a major earthquake." The following is a summary of the current URN list: Build/nas fvleetin_q URN Ordinance Reouirernents: 125 Retrofitted - Buildings strengthened to resist earthquake loads, 30 Demolished - Buildings knocked down and removed. 18 Non-Bearing Wall Structures - Buildings that do not rely on un-reinforced masonry walls for structural support. 6 ~LG.~gg_O_n~ - Buildings meeting the storage exempUon requirements of the municipal code, 179 Sub-total Buildin_qs Not I~leetin_q URfil Ordinance Requirements: Occupied - Conducting business (URM Sign Posted). 7 Vacant- Non-occupied and secured (URM Sign Posted). 26 Sub-total 205 Total We will send this update to the State Seismic Commission. MEMORANDUM CITY ATTORNEY'S OFFICE June 1,2004 TO: ALAN TANDY, CITY MANAGER FROM: VIRGINIA GENNARO, CITY ATTORN~ SUBJECT: COMMUNITY PROSECUTION COUNCIL REFERRAL NO. 791 Councilmember Benham requested the City Attorney work with her for possible grant funding of a "Community Prosecutions" program. The City Attorney has contacted a source at the District Attorney's office to schedule a meeting concerning this issue. The City Attorney will keep Councilmember Benham updated with subsequent memos regarding progress. VG:ls cc: Honorable Mayor and City Council S:\COUNClL\Referrals\Com m unity Prosecution.doc M~tastorm e-work client Page 1 of 1 Requestor: I~'~; B~,,,h,,,a,? Ward: i~ Referral Created: Req. Completion Date: i~O~ Meeting: ........... Initial Referral Information Shod Description: COMMUNITY PROSECUTION Long Description: ~**REFERRAL TO CITY A~ORNEY*** COUNOILMEMBER BENHAM REQUESTED THE CITY A~ORNEY WORK WITH HER FOR POSSIBLE GRANT FUNDING OF A "COMMUNITY PROSECUTIONS" PROGRAM. , A~achmentA A~achment B A~achment C Lead: Assigned To: Response? Reassigned To: Response? R3 Optional 6itizen Contact Information Na~o: Namo: Address: Address: Phone: Phone: http ://ework/scripts/eWeb.dll/FolderPage?Page=Referral%2524Display&FolderlD=EWORK$ 6/1/2004 MEMORANDUM CITY ATTORNEY'S OFFICE June 1, 2004 TO: ALAN TANDY, CITY MANAGER ~ 'd~ °, ~lJa-'ALLEN M. SHAW, DEPUTY CITY ATTORNEY SUBJECT: DOWNTOWN SAFETY COUNCIL REFERRAL NO. 001)777 Councilmember Benham requested the City Attorney, Police Chief and appropriate staff meet to discuss suggestions made by the DBA to address downtown weekend safety issues. In response to the referral from Councilmember Sue Benham, the City Attorney's Office met with Lieutenant David Haskins and various staff members and discussed the issues raised by Councilmember Benham. Another meeting has been scheduled for June 9th. The City Attorney's Office will work with the City Manager's Office and have the matter calendared with the Legislative and Litigation Committee as soon as 'possible. VG/AMS:Isc cc: Honorable Mayor and City Council S:\COUNCIL\Referrals\DowntownSafety.doc ~ECE~VED JU~' I 2004 M E M O R A N D U M CITY ATTORNEY'S OFFICE June 1, 2004 TO: ALAN TANDY, CITY MANAGER /'~ . FROM: VIRGINIA GENNARO, CITY ATTORNE~;~)tJ I.~'~ ~ ALAN D. DANIEL, DEPUTY CITY ATTORNEy,_..~/ SUBJECT: TRAFFIC ISSUES AND FENCING AT BHS- UPDATE COUNCIL REFERRAL NO. 757 Councilmember Benham referred a prior referral concerning traffic in the Oleander neighborhood to staff for follow-up and also requested an update on a prior referral concerning the railroad fence near BHS from City Attorney. As of May 25, 2004, Code Enforcement has reported the railroad fence along California Avenue which had been struck by a vehicle has been repaired. , VG/ADD:dll cc: Honorable Mayor and City Council Randy Fidler, Chief Code Enforcement Officer S:\COUN ClL\Refe rrals\BHS.RR Fencing3.doc B A K E R S F I E L D PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM June 3, 2004 TO: ALAN TANDY, CITY MANAGER FROM: RAUL M. ROJAS, PUBLIC WORKS DIRECTOR J~ SUBJECT: GRAFFITI CLEAN UP ON UNION Council Referral #788 Councilmember Benham requested staff perform graffiti clean up on both sides of Union between Highway 178 and Columbus. The Anti-Graffiti crews have started the clean-up of this 1,5 block area and expect to have it completed by June 9, 2004. G:\GROUPDAT~Referrals~004\05-26\788 - GS.doc B A K E R S F I E L D PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM June 3, 2004 TO: ALAN TANDY, CITY MANAGER .*u, SUBJECT: REPLACEMENT OF TOTER FOR CITIZEN Council Referral #789 Councilmember Benham requested staff contact citizen regarding the replacement of brown toter which was defaced by graffiti. The citizen was contacted and the container was 'replaced on Friday, May 28th. G:\GROUPDAT~Referrals~004'~5-26~78~ - SW.~oc B A K E R S F I E L D PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM June 3, 2004 TO: ALAN TANDY, CITY MANAGER FROM: RAUL M. ROJAS, PUBLIC WORKS DIRECTO .,~1..,.~._..~ SUBJECT: OREGON STREET POTHOLES Council Referral #790 Councilmember Benham requested staff contact citizen regarding repairing of potholes on Oregon Street. Citizen would also like to find out if CDBG funds are available for sidewalk installation. The citizen was contacted by Luis Peralez, Street Superintendent, on June 2, 2004. She was advised by Mr. Peralez that the potholes on the street in front of her property would be repaired before June 18, 2004. She was satisfied with the response. In addition, Mr. Peralez informed her that he would notify someone in the Economic and Development Department to call her so they could answer her question concerning funds for sidewalk installation. G:\GROUPDA~Referrals~004\05-26\790 - Streets.doc MEMORANDUM CITY ATTORNEY'S OFFICE June 2, 2004 TO: ALAN TANDY, CITY MANAGER I I .' · * ~_z.;~) ~v~ FROM: VIRGINIA GENNARO, CiTY ATTORNEAr-~ ,b~t~LLEN M. SHAW, DEPUTY CITY ATTORNEY · SUBJECT: GRAFFITI ON MAIL BOXES AND JUNCTION BOXES COUNCIL REFERRAL NO. 000801 Councilmember Maggard requested staff look into requiring owners to clean up graffiti on their junction boxes and. mail boxes. The Bakersfield Municipal-Code concerning graffiti and abatement of public nuisances grants the City power to compel an otherwise innocent owner to "clean up" graffiti on his or her property, which includes junction boxes and mail boxes. However, there are some practical issues to be considered. First, there are legal 'complexities when property, such as an easement for a junction box, has multiple owners, such as defining which owner is responsible and to what percentage. Second, there is the perception of penalizing the "victim." Third, in order to have a successful cost recovery effort against the owners, Staff would need to thoroughly document each clean up project in its "before state," its "after state," and. the actual cost of labor and · materials. When the budget was .reduced, the support staff responsible for putting this information together was eliminated. Staff's primary concem at this point is to simply clean the grafitti. VG/AMS:Isc · cc: Honorable Mayor and City Council S:\COUNCIL\Refen'als\GraffitiMailboxes.doc Jb~,! - 3 2004 MANAGER'S B A K E R S F I E L PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM June 3, 2004 TO: ALAN TANDY, CITY MANAGER FROM: RAUL M. ROJAS, PUBLIC WORKS DIRECTOR~,~..,~..._~.~..~. SUBJECT: G.E.T. ASSISTANCE FOR ROAD REPAIR Council Referral #802 Councilmember Maggard requested staff send a letter to Golden Empire Transit district enlisting their assistance in maintaining roads near their stops. Respond back to Council. Staff has sent the attached letter to Golden Empire Transit requesting that they participate in funding a project to maintain the pavement at their stops. G \GROUPDAT~Referrals~004\05-26~802 - Arnold.doc BAKERSFIELD PUBLIC WORKS DEPARTMENT . 1501 TRUXTUN AVENUE BAKERSFIELD. CALIFORNIA 93301 .f661) 326-3724 RAUL M. ROJA~. DIRECTOR. CITY ENGINEER June 2, 2004 Chester Morland - · . Golden Empire Transit . ." 1830 Golden state Avenue ' Bakersfield,' CA 93301 Re: DeteriOration of Pavem ,ms at.Bus Stops. Dear Mr. M°rland: .' '" ~' '" At the May 26, 2004, City Coun(~il'Meeting, City Council Member Mike Maggard requested that City staff contact Golden ErnPi.re. Tia.i~Si~:.(GET) regarding assistance from GET in funding a pavement rehabilitation / repair.capital imPrOVement project. The portion of this project in which GET would participate will address.the deteriorated pavements at bus stops throughout Bakersfield. That degradation is due in part to the starting and stopping activity and .weight of the buses. It is the City's position that a portion of the Transportation Develop Act Article 8 funds that GET receives for your operations could be directed to this roadway maintenance project. Many bus stops around town' not only have failed pavement at them, but alsO broken curbs whict~ result in poor drainage. Th'ese' conditions often' require GET passengers to walk through water puddles in order to board the bus. Your'agency's participation in this project will benefit both' GET and its customers bY mpr0v, ng..the passengers' access onto and out of the buses. Please discuss th'is ..... '...~'v...:.~. ~ · ' reques~'w~h .'Y~i'O¢ S~tff. and then inform us as to your'agency's willingness to participate in this projeCt:. ~..~ · .... ·... If you have any questions ab0U'{: this 'Pi'°jcct:· Please call Arnold Ramming at 661-326-3591. Very truly yours, RAUL M. ROJAS Public Works Director -//~_~_/q~les R. LaRochelle '. ' -. ' .... / / ,~s~istant Public Works 'Director ~ Mike Maggard , . Alan Tandy Arnold Ramming Reading File S:\PROJ ECTS~ARNOLD\GET 060204.doc BAKERSFIELD FIRE' DEPARTMENT C~TY MANAGER'S MEMORANDUM TO: Alan Tandy, City Manager FROM: 'Ron Frame, Fire Chief'-~A~ DATE: May 26, 2004 SUBJECT: Response to Councilmember Couch's request for information on fire districts Fire districts are independent, special purpose governmental units formed by the people within the district. Fire districts are funded by taxes imposed on the property owners. They may provide fire protection, rescue, emergency medical, ambulance, and hazardous materials services. Fire districts are neither good nor bad until placed in a specific context. There are benefits to form a district for small or rural communities with weak governments or funding limitations. However, a disadvantage to the City would be a case much like the bright lights at Liberty High School wherein the City cannot control the park district, even though City residents are affected by the park district's decisions. ' Once the fire district lines are drawn, they are set. For example, if district lines were drawn surrounding Bakersfield, future City annexations into the district area would not change the fire protection for those residents. The City of Bakersfield does not fall into the area normally associated with fire districts. Larger cities, like Bakersfield, rarely give up control of primary services. A Fire District would result in a loss of control for City government over the quality of emergency services. It is my opinion that our Joint Powers Agreement offers the best of both worlds. We save money by sharing resources such as our Training and Dispatch facilities. We maintain control over fire protection services without duplicating services by providing the closest fire station response. It appears that if changes need to be made regarding fire protection, then the Joint Powers Agreement should be modified. S/susan/memos/fire districts MEMORANDUM CITY ATTORNEY'S OFFICE June 2, 2004 TO: ALAN TANDY, CITY MANAGER FROM: VIRGINIA GENNARO, CITY ATTORNI~-~ ALAN D. DANIEL, DEPUTY CITY ATT~E~Y ~.~ SUBJECT: RAILROAD CROSSING REPAIRS NOTIFICATION COUNCIL REFERRAL NO. 803 Vice-Mayor Couch requested City Attorney prepare a Resolution, for Council approval, outlining the process for notifying the railroad of railroad repairs and monitoring the progress. Pursuant to Vice-Mayor Couch's request, the City Attorney's Office has prepared and is attaching a draft of "A Resolution Setting City Policy for Processing Complaints Concerning Substandard Railroad Crossings" for the City Council's review and consideration for approval. VG/ADD:dll Attachment cc: Honorable Mayor and City Council Raul Rojas, Public Works Director Jack LaRochelle, Assistant Public Works Director Nick Fidler, Civil Engineer III S:\COUNCIL\Referrals\04-05 Referrals\RRXingReso.docS:\COUNClL\Referrals\04-05 Referrals\RRXingReso.doc RESOLUTION NO. A RESOLUTION SETTING CITY POLICY FOR PROCESSING COMPLAINTS CONCERNING SUBSTANDARD RAILROAD CROSSINGS. WHEREAS, the City of Bakersfield desires a consistent approach to railroad crossing repairs within the corporate limits of the City of Bakersfield; and WHEREAS, the City has experienced significant delays in achieving the repair of substandard railroad crossings in recent years; and WHEREAS, the City desires the adoption of a policy with the goal of obtaining a consistent approach and better results in repair of substandard railroad crossings; and WHEREAS, the City desires to achieve the repair of substandard railroad crossings in order to protect the health, safety and welfare of its citizens and -the traveling public so as to prevent the loss of life or property damage. NOW, THEREFORE, BE IT RESOLVED, by the .Council of the City of Bakersfield as follows: The foregoing recital is true and correct and incorporated herein, by reference. 2. The City of Bakersfield adopts the following policy for the investigation, follow-up and, if necessary, filing a formal complaint with the California Public Utilities Commission for the repair of substandard railroad crossings. This policy shall be implemented by the City Manager. The City Manager may, after consultation with the City Attorney, deviate from this policy, but shall report 'such deviations to the City Council by memorandum. 3. 'After the receipt' of a complaint of substantial deterioration to a railroad crossing, the City Attorney's Office will initiate an investigation which will include the City's outside insurance investigator (if any), and the Traffic Engineering Division of Public Works. 4. The Traffic Engineering Division shall cooperate with the 'outside investigator to complete an investigation Which will include Photographs, complaint received, an investigative report of the particulars concerning the substandard crossing, and statements from the outside investigator and the City Traffic Engineer, or designee, detailing problems with the crossing. The report will then be sent to the City Attorney's Office. S :\COUNCIL\Resos\04-05 ResosLRRCrossingsReso. DOC -- Page 1 of 3 Pages -- 5. The City Attorney's Office will review the report and then send a letter to the appropriate railroad company demanding a repair of the crossing. The letter will include the City's investigation and will be mailed by certified mail, return receipt requested with an additional Copy to be directed to the California Public Utilities Commission. The City Attorney's Office will calendar a sixty (60) day response date after mailing the letter. 6. During the sixty (60) day time period after the mailing of the demand letter for repairs, an assigned member of the Public Works staff will make telephonic contact with,the railroad company to discuss the letter and ask whether or not the' railroad company intends to go forward with the repairs of the crossing. The employee making contact will memorialize the conversation in a'memorandum and forward it to the City Attorney's Office. 7. Should the railroad company fail or refuse to repair the crossing, the City Attorney will send a second letter again demanding the repair of the crossing and clearly stating that a failure to respond within thirty (30) days will result in a filing with the California Public Utilities Commission to achieve the repair of the offending' crossing. This letter should be sent by certified mail with return receipt requested and a copy sent to the CalifOrnia Public Utilities commission. 8. Should the railroad company who owns the offending crossing continue to fail and refuse to repair the crossing the City will take steps to file a formal complaint with the California Public Utilities Commission demanding that the railroad crossing be repaired. Thereafter, the City will follow the California Public Utilities Commission procedures and attempt to have the matter heard as soon as possible so as to effectuate' the necessary crossing repairs. 9. 'The City Attorney is authorized to settle the dispute prior to a final decision by the California Public Utilities Commission as long as the Settlement results in a repair to the crossing.. The settlement maY include cooperation, by the City in helping the railroad repair the offending crossing and the City Attorney, after consultation with the City Manager, is authorized to offer assistance in upgrading the crossing in such a manner so as to prolong the life of the crossing. 10. Either the final decision by the California Public Utilities Commission or'the settlement shall be reported to the City Council by memorandum. .......... 000 .......... S:\COUNCIL~R. esos\04-05 Resos~RCrossingsReso. DOC -- Page 2 of 3 Pages -- I HEREBY CERTIFY that the fOregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on by the.following vote: AYES: COUNCILMEMBER COUCH, CARSON, BENHAM, MAGGARD, HANSON, SULLIVAN, SALVAGGIO NOES: COUNCILMEMBER ABSTAIN: COUNClLMEMBER ABSENT: COUNCILMEMBER CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED By HARVEY L. HALL Mayor APPROVED AS TO FORM: VIRGINIA GENNARO City Attorney By ALAN D. DANIEL Deputy City Attorney ADD:dll June 2, 2004 S :\COUNCILLResos\04-05 Resos\RRCrossingsReso.DOC -- Page 3 of 3 Pages -- DEPARTMENT OF RECREATION AND PARKS DATE: June 1, 2004 TO: Alan Tandy, City Manager FROM: Alan Christensen, Director Recreation and Park SUBJECT: DEAD TREES CAMPUS PARK Ref000792 ( WARD 5) Councilmember Hanson requested staff address the issue of some dead trees in Campus Park North for removal and replacement. Staff has inspected the various trees at Campus Park North and have found several trees of concern. There is a Tulip tree on the northwest side of the park that has been pronounced dead. We will go through the "posting notice" process and the tree will be removed in about two (2) weeks and then another tree will be replanted. We have found a tree in the west side of the park and two (2) trees on the east side of the park that will require special care over the next several months. If this care does not bring these trees back to full health then they will be removed and new trees will be planted. S:\Council Referrals 2004\RefO00792.doc May 28, 2004 (8:43AM) B A K E R S F I E L D PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM June 3, 2004 TO: ALAN TANDY, CITY MANAGER FROM: RAUL M. ROJAS, PUBLIC WORKS DIRECTOR .~/~,.._./ SUBJECT: POT HOLES ON WHITE LANE Council Referral #794 Councilmember Sullivan requested staff repair pot holes in the right hand lane of White Lane, west of Ashe Road. Street crews will be patching potholes on White Lane between Wilson Road and Gosford Road on Monday, June 7, 2004 and Tuesday, June 8, 2004. G:\GROUPDAT~Referrals~004\05-26\794 - Streets.doc B A K E R S F I E L D PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM June 3, 2004 TO: ALAN TANDY, CITY MANAGER FROM: RAUL M. ROJAS, PUBLIC WORKS DIRECTO~ SUBJECT: ALLEY BEHIND REEDER AVENUE Council Referral #795 Councilmember Sullivan requested staff look into the feasibility of repairing the alley behind the homes on Reeder Avenue. The alley is the only access the homeowners have to their garages, and is in bad need of repair. Contact Councilmember Sullivan after review of alley. There are several potholes in the alley, located behind the homes on Reeder Avenue. A pothole patching crew will be assigned repair the pothe!es during the week of June 7, 2004. G:\GROUPDA~Referrals~2004\05-26\795 - Streets.doc B A K E R S F I E L D PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM June 3, 2004 TO: ALAN TANDY, CITY MANAGER FROM: RAUL M. ROJAS, PUBLIC WORKS DIRECTOR .~~.,~ ~ SUBJECT: MEDIAN REPAIRS - WHITE LANE WEST OF WIBLE Council Referral,#798 Councilmember Salvaggio requested staff repair the end of a cement median on White Lane, west of Wible Road. Permanent repairs of the median island on White Lane will be added to the Street Division's concrete repair list. In the meantime, during the week of June 7, 2004, a temporary repair will be made to the median island. G:\GROUPDAT~Referrals~004\05-26\798 - Streets.doc B A K E R S F I E L D PUBLIC WORKS DEPARTMENT CITY OF BAKERSFIELD MEMORANDUM June 3, 2004 TO: ALAN TANDY, CITY MANAGER FROM' RAUL M. ROJAS, PUBLIC WORKS DIRECTOR ~ SUBJECT: GRAFFITI ON SOUTH H STREET- MING TO LEMAY Council Referral #797 Councilmember Salvaggio requested staff remove graffiti on masonry walls on the south side of South H Street from Ming Avenue to Lemay. The Anti-graffiti team completed the removed this graffiti on Wednesday, June 2, 2004. G:\GROUPDAT~Referrals~004\05-26\797 - GS.doc B A K E R S F I E L D MEMORANDUM TO: Alan Tandy, City Manager //~J FROM: Jack Hardisty, Development Services Di/ffctor~~. DATE: June 1, 2004 SUBJECT: Roosters on Laurel Drive / Referral No. 800 Councilmember Salvaggio requested staff address Linda Porter's concerns regarding roosters in her neighborhood at 2900 Laurel Drive. On May 28, 2004, code enforcement made contact with the property owner at 2900 Laurel Drive. The owner stated she would have the chickens and roosters removed within seven days. A notice was also mailed to reassure compliance. A re-inspection will be conducted on Friday, June 4, 2004.