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HomeMy WebLinkAbout02/25/05 B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM February 25, 2005 TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager./L~TD,-/r'~.,~. SUBJECT: General Information 1. Shell Oil Company has made a donation to fund two community service projects to be administered by the City. As we head into the warm weather season, we will be able to proceed width a sports program for underprivileged youth at the MLK Center and PAL Center, which will be coordinated by the Recreation and Parks Department. The second project will be the production of a public safety education brochure, specifically focused on water safety. The brochure will be a collaborative project between the Fire Department and Recreation and Parks staff. Shell's generosity makes it. possible for us to carry out two very positive community programs. The appropriation of the contribution will appear on your March 9th agenda. 2. We have had a couple of meetings with the Kern County Citizens for Quality Transportation. We are cautiously optimistic that the issue over the preparation of the half-cent sales tax that would go to local road maintenance will be resolved in a positive manner. 3. A report regarding Bulky Item Disposal and illegal Dumping is enclosed from the Solid Waste Division. The information relates to an item on the agenda for the Monday, February 28th Joint Meeting of the City Council and Board of Supervisors. 4. An update on the activities of Keep Bakersfield Beautiful is enclosed for your information. 5. An article is enclosed from the financial rating agency, Fitch Ratings, regarding the impact on municipalities caused by the rising costs of employee health insurance. 6. According to the attached article from the American Association of State Highway and Transportation Officials, the federal gas tax reauthorization may move forward in the House and Senate. We are hopeful, but given the past history of this issue, it could just as easily be derailed and postponed for another year. 7. The Recreation and Parks activity report for January is enclosed. AT:rs cc: Department Heads Pamela McCarthy, City Clerk .- RECEiVED I FEB 2 3 7.005  CiTY MANAGER'S OFFICE B A K E R S F I E L D CITY OF BAKERSFIELD PUBLIC WORKS DEPARTMENT MEMORANDUM TO: Alan Tandy, City Manager FROM: Raul Rojas, Public Works Director~--~ DATE: February 17, 2005 SUBJECT: February 28th Joint City/County Meeting Item- Bulky Item Disposal and Illegal Dumping Report County staff will report on the progress of the new bulky item collection program launched by the County in 2004, and its impact on illegal dumping. It seems that a home pick up service for bulky items has reduced the amount of illegal dumping. A copy of a September 28, 2004 report to the Board of Supervisors is enclosed. Also enclosed is a report from our staff on the history and current status of bulky item disposal in the City, with information on how it may be made consistent with the County's program. The County service was added, along County administrative costs and new responsibilities for the franchise haulers to remove illegal dumping in County areas, for a fee of $0.80 per month per home. Because the City already operates a program for illegal dumping, the incremental cost of matching the County's program with home pick up would be about $0.33 per month per home. The City already operates citywide illegal dumping cleanup, motor oil pick up, and greenwaste cart delivery. Bulky item dispatch and pick up can be easily added. Like the County program, the City would give nonprofit thrift stores the option of recycling any of the items before hauling them off. encl S:\FILING\500 CORRES~MANAGER~Bulky Item Disposal Report.doc February 17, 2005 Daphne H. Washington, Director 2700 "M" S~eet, Suite 500 Bakersfield, CA 93301-2370 (661) 862-8900 (800) 552-KERN (option 6) Fax: (661) 862-8901 September 28, 2004 http:/~.~.kern.~.us~md~md.h~ Board of Supervisors Kern County Administrative Center 1115 Truxtun Avenue Bakersfield, CA 93301 Dear Members of the Board of Supervisors: RE: Six Month Report conceming the Call-to-Schedule Bulky Waste Collection Program (All S. D.'s) Fiscal Impact: None- On October 28, 2003, your Board approved implementation of a call-to-schedule bulky waste collection program in the unincorporated metropolitan Bakersfield area, known as Zone 2. A report on the status of implementation for the program's first six months is attached for your Board's consideration. The report, prepared by Kern Refuse Disposal Incorporated, represents the results of the program's implementation by Howard's Garbage Service, Lamont Sanitation, Price Disposal, South Side Sanitation, Superior Sanitation, Varner and Son, and Varner Brothers. These are the Zone 2 franchise garbage haulers who participated as a part of Kern Refuse Disposal. The companies scheduled collections at 1,647 residences for removal of 2,722 bulky waste items during the first six months of this program. In addition, the small Zone 2 garbage hauler, Valley Garbage Service, collected an additional 230 bulky items during it's first six months of implementation. Therefore, IT IS RECOMMENDED that your Board receive and file the attached report. Sincerely, D~rPec~no~ . Washir~ton I:\CLERICAL\BOARD~2OO4\04_Sept 28 TFM(3)_rsl.doc Attachments: Bulky Waste Collection Program report cc: County Administrative Office Kern Refuse Disposal, 6208 Timbercreek Ddve, Bakersfield, CA 93308 ADM-H-KRDI Winner of local, state and national awards for innovation and efficiency. BULKY WA S TE COLLECTION PROGRAM SIX MONTH REPORT DAPHNE H. WASHINGTON, DIRECTOR Waste Management Department 2700 "M' Street, Suite 500 Bakersfield, California 93301 September 2004 Printed on Recycled Paper ~ BULKY WASTE COLLECTION PROGRAM (Information prepared by Kern Refuse Disposal, Inc.) INTRODUCTION The collection, transportation and disposal of large items that are regularly generated at residences is very problematic and expensive. Examples of large or "bulky" items are miscellaneous furniture (couches, chairs, tables, etc.), white' goods (stoves, refrigerators, washers, dryers, etc.) and a variety of items ranging from barbecues to evaporative coolers. Since these items are big and hard to transport, they often stay at residences and become unsightly and dangerous. Successful programs designed to manage and dispose of these types of waste are in operation throughout the United States. The strategies are vaded, and depend on the size of the community to be served and the types of normal refuse services provided in the area. Large items are usually collected at the curb on scheduled collection days or some communities schedule single day events where items are brought to drop-off locations. LARGE ITEM COLLECTION IN ZONE 2 Pro.qram Description The program designed by Kern County is both challenging and aggressive. Every resident in the unincorporated area of Zone 2 is allowed to schedule the collection of two (2) large items per month, which will be picked up at each residence. All residents must be notified of the program two (2) times per year via direct mail. Planninq Planning and coordination of the Large Item Collection Program by Kern Refuse Disposal, Inc. (KRDI) began in July 2003. This program collects large items at residences, including single family dwellings, apartment complexes and mobile home facilities. In Zone 2, there are approximately 40,000 residences that would receive service under this program. Early in the planning process, KRDI identified a series of entities within the community that would be impacted by this program. Goodwill Industries, Salvation Army and St. Vincent DePaul were all involved in collection of these types of materials. It became readily apparent that a well coordinated program could positively impact all entities, while a poorly implemented program could hurt everyone involved. Following many meetings and discussions, understandings were reached that allowed for a true "win..win..win" solution for non-profits, KRDI and the entire community. Implementation Following a successful and informative pilot program, implementation of the permanent program began in January 2004. Specific zip codes were notified by mail on January 12, collections were scheduled for a two-week period and operations began on January 26. This implementation schedule continued, and all residents in Zone 2 were notified of the program by February 9 and had the opportunity to schedule collection by February 23. This "phased in" implementation schedule allowed all parties associated with the program to get a feel for the operations. In addition, it also minimized chances that the program would be :' immediately overwhelmed with collection requests and cause custOmers to be dissatisfied with the service, thereby leaving an early blemish on the program. This implementation strategy was successful with few customer complaints. Operations KRDI contracted with Applied Technologies to establish and staff an interactive hotline where bi-lingual operators receive and process service requests. These requests are entered into a database that can be accessed by staff. KRDI then coordinates collection of the items from local residences. KRDI staff, Salvation Army, St Vincent DePaul and Goodwill Industries collect scheduled pickups as pad of their normal operations. Collected items are either reused/sold in thrift store operations, recycled as metal, or disposed of at the Bakersfield Metropolitan (Bena) Sanitary Landfill located east of Bakersfield. All items collected by non-profits for recycling or disposal are transported by KRDI to either local recyclers or local landfills. This service is provided to the non-profits at no charge in exchange for collection services. Results For the time period of January 26, 2004 through June 30, 2004, a total of 1,647 residences were scheduled, with 2,722 items scheduled for collection. Of the 2,722 items scheduled for collection, 893 were white goods, 1,657 were furniture and 172 were items with cathode ray tubes (see summarization in Table 1). Collections were sorted by zip codes and these results are summarized in Table 2. Collections in zip codes 93308, 93307 and 93305 made up 74.9 percent of all collections (1,228 / 1,648). Financial Analysis KRDI has invested over $375,000 to date in this program and has received revenues of $175,210 for the months of January through June of 2004. A roll-off truck, forklift, crane, roll-off containers, etc., are all examples of equipment that had to be purchased prior to start-up of the program and prior to collection of any fees. Six months of program planning and development cost also had to be funded, in addition to software development for record keeping and collection. It should be noted that the start-up costs would have been significantly higher if the non-profit partners had not been active participants in this effort. Recommendation The Waste Management Department recommends continuing with the program as it currently is operated. It has been well received by the constituents it has served and it seems prudent to "stay the course" for the immediate future. As with any new program, participation will grow as awareness increases. It is imperative, that all parties promote this program at every possible oppodunity and encourage residents to use the service. Summary KRDI has successfully implemented the Large Item Collection Program and the first six (6) months worth of data have been positive and encouraging The public has been very supportive and the individuals that have padicipated seem genuinely pleased with the program. The benefits to the community are obvious, and the long-term positive impact to residents and businesses will be realized for years to come. I:\CLERICAL~dmin_VVMD~Reports~6 Mth BulkyWaste_28SeptO4.doc TABLE I BULKY ITEM COLLECTION PROGRAM PARTICIPATION BY MONTH RESIDENCE MONTH COLLECTIONS TOTAL ITEMS WHITE FURNITURE CRT SCHEDULED SCHEDULED GOODS JAN 149 243 109 120 14 FEB 640 1039 387 587 65 MAR 280 441 . 132 280 29 ==~,.~.~:,:~;~,:~,~.~~-,~i~:~!~;~;~;~:~:ili~' ~::~,~;;~,~'~'~'~:~"~~,, ~ ~.~.,~.~ ..~ .... ?':~.~., ~ ~'~'-.:~ ;~.~: .;=~ ~' ~ .: ~:. ~.. :... ~.. ~ .'~'..~.~1:. '., ...: ...: ". ~ . ~ .'. APR 233 395 113 253 29 MAY 154 274 66 192 16 JUN 191 330 86 225 19 TOTALS 1647 2722 893 1657 172 TABLE 2 BULKY ITEM COLLECTION PROGRAM PARTICIPATION BY ZIP CODE MONTH 93301 93304 93305 93306 93307 93308 93309 93312 93313 93314 TOTAL RESIDENCES JAN 60 1 1 3 56 1 27 149 FEB 24 91 1 145 286 18 39 10 26 640 MAP, 16 60 3 54 101 11 20 3 12 280 APP, 14 32 9 54 82 7 18 5 12 233 MAY 1 8 23 1 32 58 3 15 2 11 154 JUN 7 28 36 82 2 18 4 14 191 TOTAL 1 69 294 15 322 612 41 166 25 102. 1647 RESIDENCES APPENDI× 5 Solid Waste Management Agreement dated December 14, 1999 BULKY COLLECTION PROGRAM FOR ZONE 2 For residential customers in the Contractor's Solid Waste Collection Area, the Contractor will provide, or participate with other haulers in the same Garbage Franchise Hauling Zone, once per month bulky item collection service including: · Provide semi-annual written notice to residential customers of the service, including a general description of bulky items that may be collected and of items that will not be accepted for collection; and prominently note. the telephone number that the customer may call to schedule bulky item collection. · . On pre-scheduled days, collection of two (2) bulky items per month (placed by the customer at the curb, or side of the street if no curb; or at the normal waste collection location if it is impractical for customer to place the items-at the curb). The Contractor will not be required to provide a walk-in .service for bulky items for any customer. . · Provide semi-annual tracking reports of locationS, numbers and frequency of collection requests, and of tonnage collected by specific waste types and location. · Items accepted for bulky collection will include bulky items that are too large to fit into a 96-gallon waste container and that are accepted at no charge at the County disposal facilities. Common acceptable items will include furniture and large household appliances. Bulky items that have several pieces (such as a sectional couch or a dining set) will be considered two (2) items. Only one (1) television or computer monitor will be accepted per residential unit per pick-up. · Items specifically excluded from bulky collections will include hazardous materials, construction and demolition material, did, green waste, liquid waste, manure, tires, vehicle pads, pressurized containers, bulky items from a commercial property, or any item weighing over 500 pounds. APPEND~ 5 RECEIVED .... FEB 2 4 2005 CITY MANAGER'S OFFICE CITY OF BAKERSFIELD PUBLIC WORKS DEPARTMENT MEMORANDUM TO: Alan Tandy, City Manager FROM: Raul Rojas, Public Works Director DATE: February 22, 2005 SUBJECT: Keep Bakersfield Beautiful Update "Keep Bakersfield Beautiful serves to engage individuals to take greater responsibility for improving their community" is the mission statement of Keep Bakersfield Beautiful Committee (KBBC). To support their mission statement, the following KBBC activities/events have been scheduled or recently occurred: Great American School Cleanup - Keep Bakersfield Beautiful, Keep Kem Clean and the Kern County Superintendent of Schools Office are sponsoring a cleanup project for elementary and middle schools. The student cleanups will be on and around their campus on March 12, 2005. Projects include tree planting, litter removal, recycling, graffiti abatement, etc. Bulky Item Event - A bulky item collections day (citizens can bring bulky trash such as tires, large appliances, furniture, etc. to designated areas in Bakersfield) has been tentatively scheduled for April 9, 2005. In addition, Officer Todd Pace of the Bakersfield Police Department will be coordinating a curbside trash collection that day in the neighborhoods ranging from E. Planz to Brook Street and Madison to Hale. Great American CleanupTM - A Bakersfield citywide cleanup (litter removal, beautification projects, graffiti abatement, etc.) will be coordinated on April 23, 2005 with all the volunteers meeting at Yokuts Park for lunch. With the help of City staff, we had over 3,100 volunteers collect186,000 lbs. of trash and used 42 gallons of paint to cover graffiti for last year's cleanup. Kern Clean Campus 2005 - Leadership Bakersfield and Keep Bakersfield Beautiful are recognizing Kern High School District schools that are making an effort to keep their campus clean by participating in a campus clean up effort. The schools will not only S:WIL1NG\100 ADMIN~Keep Bakersfield Beautiful Committee\KBB -Community RelationsLKeep Bakersfield BeautifulLFeb 2005 update to council about kbb.doc February 22, 2005 MEMORANDUM ALAN TANDY, CITY MANAGER February 22, 2005 Page 2 spruce up their campus, but the project will help students develop an awareness of litter on campus and in the environment, understand that litter can be controlled in our community, learn that they can change littering behavior, and develop an understanding that people are the custodians of the earth. Winning schools will be recognized at the Great American CleanupTM on April 23. National Awards - Former Chairperson of KBB John Enriquez received the National Iron Eyes Cody Award from Keep America Beautiful at Washington D.C. in early December 2004. The Iron Eyes Cody Award honors outstanding male volunteers for exceptional leadership in raising public awareness about litter prevention, roadside and community beautification, solid waste issues, and the need for citizens to participate in activities that preserve and enhance natural resources and public lands. Keep Bakersfield Beautiful was awarded a national award for the 2004 Great American Cleanup and its ability to work with business sponsors. Keep Bakersfield Beautiful was awarded a President's Circle Award for fulfilling objectives expected of a Keep America Beautiful affiliate. S:\FILING\100 ADMIN\Keep Bakersfield Beautiful Committee\KBB -Community Relations\Keep Bakersfield Beautiful\Feb 2005 update to council about kbb.doc 2/22/2005 Fitchltatings Public Finance Tax Supported Local Governments Pressured Special Report .by Rising Employee Health Care Costs Analysts · Outlook David LiWack The extraordinary growth of health care and health insurance costs over I 212 908-0593 the last five years has created significant budgetary challenges for U.S. david.litvack~fitchratings.com state and local governments, as well as private sector employers. In response, many govemments have sought to manage costs through Amy Doppelt negotiation and shopping for other insurance carriers, but this has provided 1 415 732-5612 amy.doppelt~fitchratings.com limited success. Where municipalities seek to manage cost increases through reduced benefits, higher deductibles/copayments, or other types of Amy Laskey cost shifting to employees, problems arise pertaining to productivity, I 212 908-0568 morale, and employee retention. In general, health insurance cost increases amy.laskey~fitchratings.com have had an even greater impact on state and local governments than private sector employers, because governments historically have provided Additional Fitch contributors to the report more generous health insurance benefits to their workers. include Jose Acosta, A. Michael Borgani, Adrienne Booker, Mark Carnpa, Carrie Deason, Jose Hernandez, Joe Mason, Jessa!ynn Moro, Because health care is one of the fastest growing components of a Steve Murray, Joe O'Keefe, Melanie Shaker, government's cost base, it is expected to be an increasingly important Nelsie Smith, Peter Stettler, and Rick)/Wai, all credit consideration. As part of the normal credit review process, Fitch of whom interviewed one orr note of the survey Ratings analysts now seek information from municipalities on their respondents, current employee health care expenses, expectations for growth in these costs, flexibility to control the increases, and details on plans to do so. From a credit perspective, Fitch believes the problem of rising employee health care costs is most acute for issuers whose financial operations are already strained and those with limited revenue-raising capacity or other financial flexibility. However, given the likelihood for continued rising costs, even issuers that historically have had positive financial operations and maintained strong fund balances may be affected if health care costs are not proactively and prudently managed. · Methodology To understand more fully the impact of rising health insurance costs on municipal governments, Fitch conducted its own survey among a sample of Fitch-rated local government issuers. These included cities, counties, school districts, and special districts of varying sizes and locations across the U.S. Fitch asked for the following information from these governments: · Current and historical employee health care expenses, as well as expectations of future growth. · The relative significance of employee health care to total operating costs. · Health insurance premium rates and the percentage share of premiums contributed by the employer. December 13, 2004 www.fitchratings.com FitchRatings Public Finance · Types of Plans offered (e.g. health maintenance Health Insurance Premium Expense Organization [HMO], preferred provider organization [PPO], point of sen, ice [POS], and traditional, among others) and factors considered in deciding which plans to offer. ~s % of Total Operaling Expenses) · Factors driving the cost increases. · Actions taken to cope with rising costs. 5.1 5.4 · Retiree health care benefits. 4.7 ~ · Threats posed by rising health care costs. ~ ~1~ I 3.4 ' The 23 participants in' Fitch's study are listed on page 5. While they represent only a small percentage of all the local governments in the country, the answers were relatively uniform and consistent with studies performed by other organizations on employee health cam costs in the oveaall economy. This provides confidence that Fitch's , , findings discussed herein am representative of trends being experienced by most other U.S. municipalities. 2000 2001 2002 2003 2004 · Findings Fitch Ratings survey. Increases in Health Care vs. Total This past year, the' pace of growth moderated Operating Costs somewhat. The governments in Fitch's survey Fitch's survey documented the profound growth in reported health care costs in 2004 rose 10.7%, down health care costs for local government employers over from the 14.0% growth rate they reported in 2003. the last fiv.e years. Among the survey respondents, the Respondents report a variety of expectations on cost of providing employee health care increased an future cost increases, ranging from 6%o-15%, average of 142.% per year from 2000-2004 versus although most estimates fall in the 7%-10% range. overall annual expenditure growth of 5.5%. According , to U.S. economic data, wages grew 3.2% and inflation Because the growth of health insurance costs has far averaged 2.4% over the same period (see chart below), outpaced other govemment expenditures, its relative importance to total operating costs has increased. Health insurance constituted an average of 5.4% of Health Insurance Premium Growth vs. the responding governments' 2004 operating expenses, up General Inflation ~ from 3.4% in 2000 (see chart above). Fitch noted a wide variation in the ratio of health care costs to operating expenses, depending on the breadth of the entity's ~ Premiums · Inlla~0n expenditure responsibilities. However, in every case, there has been significant growth since 2000 in the proportion of Annual % Change) health care costs to the total operating budget. 20.8 Premium Rates and Premium Contributions · ~ by Employers ~ ~i 14.0 ~ ~ ~ ~~ .------- ~ Fitch found a fairly wide range of premium costs, i~ ~ .,:12'0~.-, ?~ 10.7 depending on the type of plan and the ~:e~· ~ .... comprehensiveness of the coverage (see table, page 3, ~ , ' ~'*:'. top left). Annual premium rates in 2004 for single ~ ___--- employee coverage averaged $4,459, ranging from a , , ~ , low of $3,036 to a high of $6,277. Annual premium' 2001 2002 2003 2004 rates for family coverage averaged $12,124, ranging from a low of $8,913 to a high of $16,574. Sources: Fitch Ratings survey and Bureau of Labor Statistics' Consumer P dce Index for all urban consumers. Local Governments Pressured by Rising Employee Health Care Costs 2 FitchRatings Public Finance 2004 Insurance Premiums Per Employee doctor and hospital fees, expensive advancements in (*) medical technology, an aging work force, high Mean ContribuUon Coverage Median Low High by Employer (%) utilization rates, and malpractice insurance. Several Single issuers describe limited competition as a factor in Employee 4,459 3,036 6,277 62.4 higher health care costs, citing fewer health insurance Family 12,124 8,913 16,574 78.1 providers from which to choose. One issuer cited a Source: Fitch Ratings survey. '"ViCiOUS circle" effect between high health insurance costs and an aging work force; thus, employees Employer premium contribution rates in 2004 cannot afford to retire and lose their health benefits. averaged 82.4% for single employee coverage and This in mm results in an older work force that incurs 78.1% for family coverage, down slightly from 2000, higher medical expenses. when the premium contribution rates were 84.5% and 79.3%, respectively. Over the last five years, 48% of Actions Taken to Control Costs the respondents have lowered their employer Municipalities have already taken a variety of steps contribution rates, while 39% have kept them the to control their health insurance costs (see table same and 13% have raised them. In 2004, 17% of the below). The most common actions have been to shift respondents contributed the entire premium payment a greater share of the cost to employees by lowering for single employee coverage on at least one of their the employer contribution rates on insurance premiums insurance plan options, compared with 2000 when and/or increasing copayments and deductibles. Most 35% of employers contributed the entire premium, also have reported shopping for alternative insurance providers and plan administrators. Other common Types of Plans actions taken or investigated were switching to Most governments (52%) offered employees a choice of self-insurance on some services and offering less plan types (HMO, PPO, and sometimes POS or expensive plans, i.e. HMOs instead of PPOs or lower traditional plans), 17% of the governments offered HMO premium/benefit options. plans only, and 30% offered PPO plans only. Some governments (30%) offered more than one plan of the Some governments have offered wellness programs same type, with different premium rates for varying levels for conditions that can be partly controlled through of deductibles and copays. Of the governments that diet and exercise, such as blood pressure, diabetes, offered a choice of plans, most were large employers, and heart disease. One municipality charged higher insurance premiums for smokers while offering Many of the larger employers offer different insurance employees a smoker cessation program. To control plans to various employee groups or choices for all prescription drug costs, some governments offer employees as to coverage, plans, or carriers, tiered coverage, i.e. higher copayment levels for Employers may offer high or low deductibles and a brand name drugs than generic drugs, and have choice of HMO, PPO, or POS plans, each of which promoted the use of mail order instead of retail may have the same or a different insurance carrier, purchases. A few respondents reported savings by Where high deductible plans are offered, Fitch expects merging plans with neighboring entities and that employers will increasingly couple them with educating employees on how to be better health care health savings accounts, a program enacted in 2003 consumers. The latter was considered particularly where tax-bee contributions can be used to pay effective since higher deductibles and copayment insurance deductibles and the unused contributions can be carried over into future years. Actions Taken or Planned to Control Costs In selecting health plans, most municipalities balance % of numerous objectives: cost, physician choice,, benefit Respondents options, service, and employee satisfaction. Some Increase Employee Premium Contribution, issuers expressed specific considerations, such as Copay, and/or Deductible 61 Shop for Providers 57 financial stability of the plan, accreditation, network Switch to Self Insurance for Some Services 35 quality, and administration. Offer Lower Cost Plan Option 35 Wellness/Disease Management Programs 30 Tiered Prescription Drug Coverage 26 Cost Drivers Join with Other Entities 9 Factors cited most often for rising health care costs Provide Consumer Information on Health Care 4 were the higher costs of prescription drugs, increased Source: Fitch Ratings survey. Local Govemments Pressured by Rising Employee Health Care Costs 3 Fitchltatings Public Finance rates increase employees' incentive to voluntarily reducing employee benefits may lower productivity avoid unnecessary or higher cost services, and performance levels, and make it more difficult to attract and retain qualified employees. Many respondents noted that their flexibility to implement options that reduce benefits or shift costs To the extent municipalities absorb higher health to employees is balanced by labor demands, insurance costs, financial operations will be strained especially with unions. Therefore, health benefits are unless they are balanced by increased revenues or often negotiated in the context of total compensation service cuts in other areas. packages, where there may be tradeoffs between benefits and wages. '" Studies by other Organizations The Kaiser Family Foundation's Employer Health Retiree Health Care Benefits Benefits 2004 Annual Survey reported a number of About half the municipalities surveyed (52%) offer findings that demonstrate that rising health care costs retiree health care benefits directly, with an additional affect state and local governments more than private 26% providing for retiree participation in a state plan sector employers. According to the survey, annual or county retirement program. A few issuers allow premiums for single employee coverage are 8% retiree participation in their health plans but at full cost higher for government employers than for all to the retiree (no contribution by issuer), industries, 84% of government employees are covered under thek employer plans compared with only 67% None of the respondents that provide retiree health for all industries, government employers contribute care benefits have yet been able to determine the 91% of the cost for single employee insurance impact of Government Accounting Standards Board coverage versus 84% for ail employers, and 77% of Statement Nos. 43 and 45 (GASB 43 and GASB 45), governments employing more than 200 workers offer which will require governments to accrue liabilities retiree health care benefits compared with 36% for all and expenses for other post-employment benefits similarly sized employers. According to the 2003 Kaiser (OPEB) on an actuarial basis similar to defined study, only 37% of state and local governments shopped benefit pension plans. OPEB consist mostly of retiree for insurance plans versus 62% of all employers. health benefits, although other benefits like dental, life, and long-term care insurance also are included. Similar to Fitch's survey, Mercer Human Resource Governments with over $100 million in annual Consulfing's National Survey of Employer-Sponsored revenues are required to implement GASB 43 for the Health Plans 2004, as well as the 2004 Kaiser fiscal years beginning after Dec. 15, 2005 (the survey, found that, while health care costs are still deadline is Dec. 15, 2006 for governments with growing rapidly, the rate of growth has moderated $10 million-S100 million in revenues and Dec. 15, 2007 somewhat this year. The Mercer study reported that for governments with revenues under $10 million), health benefit costs increased 7.5% in 2004 versus GASB 45 must be implemented one year later. 10.1% in 2003 and 14.7% in 2002. The Kaiser study reported an increase in health insurance premiums of Of the governments that provide retiree health care 11.2% in 2004 versus 13.9% in 2003 and 12.9% in benefits, most acknowledge that the financial impact 2002. In a press release, Mercer reported that the of GASB 43 and GASB 45 is likely to be significant, slowdown may be attributable to the combined effect Some governments have or are considering cutting of benefit reductions, consumerism, care management, back on retiree health care benefits for employees slowdowns in utilization, and more competitive pricing starting after a certain date, which will mitigate the fxom insurers. impact of GASB 43 and GASB 45. Fitch believes some municipalities may consider the possibility of · Looking Ahead issuing bonds to fund accrued OPEB liabilities. If so, Most survey respondents expect health care costs to Fitch will review the credit implications for entities increase by 7%-10% per year for the foreseeable taking such action, future, a pace significantly higher than the projected overall rate of inflation. If so, health care costs will Threats Posed by Higher Health Care Costs remain a prominent financial and management Efforts to manage health care costs are limited by challenge for state and local governments. opposition from unions, where applicable. Even for municipalities where workers are not unionized, Local Governments Pressured by Rising Employee Health Care Costs 4 FitchRatings Public Finance Municipalities may shift more costs to employees either · Boston Water and Sewer Commission, MA through higher premium contributions, deductibles, and · Cook County, IL copayments or by reducing benefits. However, this may · Chicago Board of Education, IL reduce productivity and/or make it more difficult to · Dallas Independent School District, TX attract and retain employees. Altematively, govemments · Dinwiddie County, VA may bear the cost increase and seek to raise revenues or · East Lansing, MI reduce services in other areas, but this may be inhibited · Lake County, FL by tax and spending limitations or face public opposition. · Lake Tmvis Independent School District, TX · Maricopa County, AZ Future growth in health care costs is likely to continue pressuring local governments' financial operations. · McAllen, TX Once GASB 43 and GASB 45 are implemented, · Mechanicsburg Exempted Village School District, accounting and funding for future retiree health care OH benefits may exacerbate the situation. As a result, Fitch · Mecklenburg County, NC expects employee health care costs to be an increasingly · Mesa County, CO important credit consideration for government issuers · Milwaukee Metropolitan Sewerage District, WI and a more important focus in Fitch's rating analysis. · Montgomery County, MD · New Orleans Water and Sewerage Board, LA Special thanks to the following local government · City of Philadelphia, PA issuers for participating in Fitch's survey: · Pickens County, SC · Albuquerque, NM · San Diego County, CA · City of Baltimore, MD · City of Seattle, WA · Beachwood, OH Copyright (~ 2004 by Fitch, Inc., Fitch Ratings Ltd. and its subsidiaries. Om: State Street Pla~a, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or trlransmission in whole or in part is prohibited except by permission. All rlghll reserved. 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Local Governments Pressured by Risin[I Employee Health Care Costs 5 P0r[ali.Transp0rl ati:,en,0rg > Go Where You Want to TEA-21 Reauthorization 542 Days Overdue Return to AASHTO's Homepage )) << Return to Reauthoriztion Update I View All Reauthorization Headlines Stage Set for Reauthorization Action in March Developments in both the House and Senate this week appeared to smooth the way for action on highway and transit reauthorization following the President's Day recess. Senate leaders announced they would move forward with a bill paralleling the Administration's $284 billion guaranteed funding level, while a deal reportedly was struck in the House on the donor- donee rate of return issue. Senate Environment and Public Works Committee Chairman James Inhofe (R-OK) said on Wednesday that he will move forward with a $284 billion proposal embraced by the House and the Administration, CQToday reported. Inhofe reportedly had little recourse in accepting the $284 billion level, in the face of Senate Majority Leader Bill Frist's (R-TN) determination that he would not allow a higher bill to come to the Senate floor. Frist told a crowd at a U.S. Chamber of Commerce event on Wednesday that "1 believe we can start in the Senate at $284 billion. If we can do that, everything can be worked out." He said if that was not acceptable he saw no need for taking up the bill this year. Later in the day, Inhofe said, "1 anticipate we will pass a bill with the President's numbers." Inhofe added, however, that it was possible that an amendment could be offered on the Senate floor to increase the funding level of the reauthorization bill. Last week, Inhofe said the House bill, which also matches the White House budget numbers, was inadequate. While no corresponding bill has yet been introduced in the Senate, the February 16 Transportation Weekly newsletter reported that Inhofe hopes to mark-up a bill in the Environment and Public Works Committee on March 9. House Leaders Reportedly Resolve Donor-Donee Issue Echoing AASHTO's reauthorization campaign message to "Get It Done!," House Transportation and Infrastructure Committee Chairman Don Young (R-AK) on Monday urged his colleagues to move swiftly on his federal-aid highway and transit bill, saying, "States, communities, workers and industries around the country are waiting for us to act on this reauthorization." Chairman Young introduced H. R. 3, the new version of the Transportation Equity Act: A Legacy for Users (TEA-LU) on February 9. Young said on Wednesday that he will hold a full committee markup of the bill on March 2, and will take it to the House floor the week of March 7. In a statement on the House floor on Monday, Young said, "1 am committed to getting back to conference as fast as possible." He added, "There are no major policy changes between this bill and last year's authorization bill, which passed the House by a vote of 357 to 65 on April 2, 2004. The policies in H.R. 3 represent months of intense negotiations within the committee, with other House members, and with stakeholder organizations." In his statement, Young commended President Bush for increasing the Administration's proposed funding level above the amount that had been proposed in last year's budget. "1 strongly believe that we have a much better chance of moving this legislation quickly in the 109th Congress, now that we are working with the same top line flJnding level that the President has endorsed," Young said. DeLay, Young Address Donor-Donee Issue Also improving the chance for enactment is an agreement by Young and House Majority Leader Tom DeLay (R-TX) that would address the donor-donee issue. Donor states have campaigned for many months to increase the rate of return they receive on revenue paid into the Highway Trust Fund from the current 90.5 percent to 95 percent. 'The February 17 Congress Daily PM reported that Young had promised DeLay that the House bill would achieve a 92 percent rate of return. DeLay and Young have also reportedly agreed to continue the current formula regarding which programs are included in calculating the rate of return. DeLay's acceptance of the plan is considered a major step, since the Majority Leader had been the primary advocate in the House for the 95 percent rate of return. Whether the agreement is acceptable in the Senate remains to be seen. However, one of the main concerns about reducing the Senate version of the bill from $318 billion to the Administration's $284 billion was the inability to increase donor states' rate of return to 95 percent without reducing funding levels for donee states. Posted on 2/18/2005 2:19:11 PM © Copyright 2003 American Association of State Highway and Transportation Officials RECEIVED FEB 2 2 2005 CITY MANAGER'S OFFICE Department of Recreation and Parks Parks Division January 2oo5, Report PARK RESERVATIONS Cold, wind and rain kept many users from our park system. There.were however approximately 950 persons who braved the elements to participate in reserved facility activities. As we peak out of the fog, warmer weather in future weeks will undoubtedly beckon people to once again enjoy our park sites in growing numbers. NEW ACREAGE No new parcels were accepted for Park staff to maintain. Two parcels t°ialing 1.5 acres were accepted into a 365 day developer maintenance period. Upon satisfactory conclusion of this period, the parcels will then be serviced by Park staff. SILVER CREEK ENTRY With hardscape and irrigation components installed in late December, the newly re-designed entry planter for Silver Creek Park building will hopefully deter facility abuse and vandalism. A new planter replaces a bench and conversation pit adjoining the flag pole. Shrubbery was installed in the newly created planter. We previously installed a split face cinder clock cap over the top of the lineal bench area only to have this area vandalized. The "cap" prevented skateboarders from using the bench as a skating feature. Likewise, removal of the steps eliminated an opportunity for skateboarders to skate and jump over the steps into the conversation pit. ELECTRONIC WORK ORDERS In November, December and again in January, Park supervisors met with an HTE training representative to implement an electronic work order module. The first run for compiling data was initiated on Friday, January 28, sampling information from four Park crew types. The initial sample includes data from (2) median island mow crews, (1) Park mow crew, (1) playground surfacing maintenance staff member and (1) median/streetscape maintenance unit. The initial live data record will be monitored for several weeks with any changes reviewed and possibly implemented. The collected data will reflect what equipment, materials and personnel were utilized to complete numerous pre- designated tasks from mowing operations to tracking repairs. We expect to also place a Request for Service on the city's website for residents td advise of any concerns. B A K E R S F I E L D Department of Recreation and Parks Date: February 21, 2005 To: Allen Abe, Assistant Recreation and Parks Director From: Ken Trone, Park Construction and Facilities Planner Subject: Parks Department Planning and Construction Activity (January) The 32 acre park facility at Buena Vista Road and Stockdale Highway officially began construction. The first phases of improvement include final grading and extending on-site infrastructure to the building pads. A contract was awarded to Gospich Construction to install a playground, ¼ court basketball, and picnic shelter at River Oaks Park. B A K E R S F I E L D Depnrtment of Recreation ~nd P~rks Date: February 2, 2005 To: Alan Christensen, Interim Director From: Terri Elison, Recreation Supervisor Subject: January 2005 Monthly Report Silver Creek After School Pro_ciram ......................... 524 Attendance ......................... 28 Average Daily Attendance Silver Creek After School Program has been doing all the games and activities of the "Deal Me in Nutrition" program. They had several nutrition tournaments, cooking games and activities. Every student was able to take home a "Deal Me in Nutrition" workbook that was full of recipes, games, and educational information. Highlights also included a nature scavenger hunt, air snowball games, and turtle exercises. Silver Creek Rentals ................................................... $0 (Figure does not include deposits) The Silver Creek multi-purpose room and/or pavilion were not rented the month of January. Silver Creek Center The Silver Creek Community Center was closed on Monday, January 31st for maintenance. Classes were moved to the Corp Yard Lunch Room or scheduled another day at the Center. _ Classes at Silver Creek: # Registered Total Attendance Ballet & Gym (6 - 11 ) 17 68 Ballet & Gym (3 - 5) 12 48 Belly Dancing 10 40 Calligraphy Workshop no class no class Chess (Beg. & Inter.) 4 16 Clogging 21 84 Creative Quilting no class no class Dance & Gym (4-5) 8 32 6:35 PM 2/3/2005 C:\DOCUME-l\sfomyth\LOCALS~l\Temp\Terri Jan 2005 Report.doc Created by Telison Dance & Gym (2-3) 9 36 Dog Obedience no class no class Guitar (Beg. & Inter.) no class no class Kardio Kick 18 144 Karate 31 248 Latin Dance (Beg. & Inter.) 7 28 Pilates 3 36 Tai Chi 8 64 Tennis (Child-Beg) 5 40 Tennis (Child-lnt) no class no class Tennis (Adults) 3 24 Upholstery 4 16 Yoga 5 40 TOTAL 165 964 Classes at Other Facilities # Registered Total Attendance Siemon Park Tennis (Child) 4 32 Tennis (Adult) no class no class All Star Dance Studio Dance & Gym (2 ~ - 4) 1 4 Dance & Gym (4 - 5) no class no class American Academy of Gymnastics Gymnastics (4 - 5) 1 4 Creative Pursuits Knitting and Crocheting 3 12 Bead Connection Jewelry Making-Beading 1 4 Corp Yard Lunch Room 'Cartooning no class no class Helfrich's Jewelry Creations Jewelry Creations 1 4 My Children's Fitness Center Mommy & Me (Tiny Tykes) no class no class Mommy & Me (Waddlers) no class no class TOTAL 11 60 Attendance Silver Creek Center: Rentals ......................................... 0 Classes ........................................ 964 Registrations Taken: 185 After School Program ................ 525 Cf of Guests Served: 254 (The # of Guests served does not include registration) TOTAL .................... 1,489 6:35 PM 2/3/2005 C:\DOCUME-IXsforsyth\LOCALS~I\Temp\Terd Jan 2005 Report,doc Created by Telison B A K E R S F I E L D Department of Recreation and Parks Date: January 3, 2005 To: Allen Abe, Assistant Director From: Linda McVicker, Recreation Supervisor Subject: Monthly Report for January ADULT SOFTBALL · Participants are signing up for Spring Softball. · We are currently organizing a Senior Softball League for the summer and Softball Tournaments for the summer. UP-COMING PROGRAMS · We are getting started on various aspects of the summer brochure including a new map, advertisement, and design. · We are looking at starting a Soccer Camp and a Volleyball Camp. · Our Pee Wee Sports Program is beginning Saturday, February, 5. We currently have 20 participants enrolled. Participants from the ages of 3 to 5 will learn fundamentals of basketball, dodgeball, and t-ball. B A K E R S F I E L D Department of Recreation and Parks Monthly Report January, 2005 Dr Martin Luther Kin.q Jr. Community Center Special Events MLK Birthday Celebration The celebration was held on Saturday 1-15-05 from 1 lam to 2pm hero at the center. Activities included dancers from the community center, a youth mariachi band, youth choirs from St John church and St Peters church, several quest speakers and a birthday cake sponsored by Health Net. Attendance approximately 200 Movie Day A movie was played about Dr Kings early years. The youth enjoyed a groat movie with popcom and a youth speaker. After School Program We held our initial meeting with the students from CSUB on January 18. The group will focus on developing a grant proposal for the after school program. Sports Youth basketball began on 1-22-05; we have 50 youth participating in the program. Dean Jones Page 1 2/18/2005 10:15 AM o B A K E R S F I E L D DATE: February l, 2005 TO: Alan Christensen, Assistant City Manager FROM: Holly Larson, Supervisor RE: January Monthly Report Aquatic Attendance: See attached statistics for aquatic attendance at McMurtrey. All other pool facilities except Silver Creek are currently closed until the summer season begins. Please note, overall attendance for January showed an increase above both November and December, despite the cold weather and holidays. Ridgeview and Golden Valley high schools are currently swimming at Silver Creek Monday through Friday afternoons. BHS, West, South and Games swim teams and 8 high school diving teams have now started utilizing McMurtrey Aquatic Center, in addition to our other programs and rentals. Aquatic Staffinq: Recruitment has begun for summer 2005 staff. 43 aquatic specialists have been referred so far. Pool manager assessments were conducted on January 8. Sixteen applicants were interviewed. C:\DOC UM E- 1 \sforsyth\LOCALS~ 1 \TempLmonthly repon_l .docC:\DOCUM E- 1 ~sforsyth\LOCALS- 1 \Temp\monthly report_ 1 .doc 2/2/20057:59 PuM " o o o o 2 6 7 0 7 0 7 6 7 0 0 0 ----~-------~ ~ o '--'----'-~ ~ _5 0 37 4 0 ----~-~-"----'~ ~ o ~ 6 o 0 14 8 0 o ~~ 4 o 2~ ~ o 6 Cancelle~ 0 0 5~ 0 ' ~ ~ ~3 2 0 ~7 ~ 0 0 0 9 0 20 5 0 0 ~ 2 5 0 25 6 0 0 4 14 ~ 0 21 0 o ~ ~ ~o o ~ ~ o 0 2 ~ 20 ~ 0 September Total:[[ 1652]] October 4 4 5 0 0 O~ 7 3 4 0 0 O~ 8 15 5 5 28 8 0 6 6 4 27 7 0 7 $ 0 7 2 1 17 0 3 0 10 4 10 o~o~ ,o~:~ ~o~ Novermber ~, 2004 ~,'i!-5:30~, [': ,5;80a~ ] lI:oOam [, 5i30pm'.]'!~i=~5~80b~ :~;~5:00o~n:, ] ~ 5i30Dm :]i~ / ~ / I I I I I 241 41 8 ~ 8 o o November ~o~:ll December 2004 5 8 1 3 6 4 6 0 6 2 18 0 ? 15 4 1 4 1 18 0 2 3 1 ~4~ 2 0 0 2 2 5 7 2 2 3 1 17 11 12 0 0 19 2 22 2 1 0 24 0 0 0 0 2 17 3 0 1 4 16 0 14 0 December Total:Il 783][ January 2004 0 11 4 8 1 1 8 5 13 1! 8 4 5 6 12 5 11 11 2 8 6 11 9 3 10 3 3 12 4 ? ]3 1 10 11 11 13 16 6 11 5 13 6 19 8 ~ 18 6 15 10 12 9 18 10 12 13 9 5 11 4 17 8 § 4 151 January Total:l[ 97711