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Home My WebLink About04/22/05 B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM April 22, 2005 TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager SUBJECT: General Information 1. The wet playground at Planz Park is close to completion. A ribbon cutting is anticipated some time in May. ./ 2. The theater and restroom structures are going up at the Park at Riverwalk, and the limited amount of terrace seating for the amphitheater has been poured. Overall, it is starting to shape up nicely. 3. You saw in the newspaper, we were pleased to receive a favorable decision in the BFLO case this week. Kudos to the City Attorney's office for their diligence. 4. Attached is an article from Wednesday's Los Angeles Times regarding retiree health premium set-asides. 5. The State legislature postponed a public vote on the high speed rail bond for another two years. Most of the route has been decided and the EIR is almost complete. This bond is for construction. 6. Responses to Council requests are enclosed, as follows: Councilmember Benham · Graffiti removal at 3014 Union Avenue; · Investigation of airplane noise in the Quailwood neighborhood; Councilmember Maqqard · Formal request of General Holdings that they honor the City Parks and Rails Plan; · Information regarding the legality of a truck-mounted billboard; Councilmember Hanson · Scope of design for the new Fire Station to be located at S. Union Avenue and White Lane; Councilmembers Carson and Sullivan · Placement of Real Road, south of Stockdale Highway on the Street Reconstruction List. Pothole repairs at 2700 Real Road; Planz Road at New Stine Road; and "L" Street between Brundage Lane and California Avenue. AT:JWS:al cc: Department Heads Pamela McCarthy, City Clerk ., ~Lo.s,&:.qgeles Times: O.C.'s Benefits Balloon Looming /pa/gge 1 of 4 headlines-california O.C.'s Benefits Balloon Looming Retiree health premium set-asides may rise so the county can be prepared for the future. It affects bankruptcy recovery. By David Reyes and Jean 0. Pasco Times Staff Writers April 20, 2005 Orange County may have to budget at least $110 million annually beginning in July for retiree medical benefits -- nearly five times the current plan -- because it must soon show how it will cover the benefits for the next 30 years, officials said Tuesday. The cost of covering only current retirees, without setting aside money for the future, would be $23 million next year. However, covering just next year's costs means the county would have to identify the amount due over the following 29 years -- estimated at more than $1 billion -- as a debt on financial statements beginning in 2007, according to new government accounting standards. That could affect the county's otherwise stellar credit rating, even as the county moves ahead toward paying off its 1994 bankruptcy debt 10 years early. The increased medical costs could overwhelm much of the savings that the county hoped to achieve by paying off the bankruptcy debt in 2016 instead of 2026. On Tuesday, supervisors hired a financial advisor to restructure the old debt by applying $116 million in reserves to shorten its annual bankruptcy payments. The strategy is muCh like that of a homeowner paying off a large chunk of a mortgage early to shorten the length of payments and is expected to save the county about $445 http://www.latimes.com/news/local/la-me-supes20apr20,1,1061443,print.story?coll=la-headlines-califomia 4/20/2005 . l:os, .A,~geles Times: O.C.'s Benefits Balloon Looming Page 2 of 4 million in debt interest over the 10 years. In 2002, the county hoped to deal with its future retiree medical payments by setting aside $22 million. That was supposed to cover its share of costs through June 2006. But skyrocketing insurance premiums consumed the money, which will run out this month. The county's portion of retiree medical costs increased from $8 million in 2002 to $12 million in 2004 and will jump to $23 million next year. The good-news/bad-news in county finances was delivered in separate staff reports Tuesday. Supervisors decided to study retiree medical expenses for 60 more days before deciding what to do. Board Chairman Bill Campbell said he didn't want the cost of covering future medical premiums to swallow up so much of the budget that other coUnty services would have to be cut. At the same time, he and other board members said they wanted to treat retirees as humanely as possible without passing huge premium increases on to them. One county official offered a recommendation Tuesday: Bite the bullet and pay as much as possible now. "It's a debt that needs to be addressed," Treasurer John M.W. Moodach said in an interview. "If you can't hit the target, then you need to get as close as you can. The best way to address debt is to pay it off." The situation is muddied by the county's reliance on investment earnings to cover its costs for retiree medical payments. When the stock market performed well, the costs were covered. When it didn't, the county had to dip into general funds to cover its payments. The recent jump in health insurance costs has exacerbated the problem. Supervisors must come to grips with the rising retiree medical costs now, rather than later, said Kris Vosburgh, executive director of the Howard Jarvis Taxpayers Assn. "It really seems like a lot of public officials are irresponsibly kicking the can down the road and hoping the next generation of public officeholders solves this," Vosburgh said. Any changes in what the county pays toward employee and retiree medical expenses would be subject to approval by the county's dozen labor unions. With those contracts not up until 2008, the county cannot negotiate in the meantime for retirees or current http://www.latimes.com/news/local/la-me-supes20apr20,1,1061443,print.story?coll=la-headlines-califomia 4/20/2005 l~os,A~.geles Times: O.C.'s Benefits Balloon Looming Page 3 of 4 employees to cover more of the costs. Current employees have 1% taken out of their paychecks to help cover those costs. New county employees may have to contribute more toward their costs Or be put in cheaper health plans, said Supervisor Chris Norby. "This has major financial and human implications," Campbell responded. "And we should look for a balance." The quandary dates back to 1993, when county finances were flush and supervisors approved paying a portion of medical costs for workers after they retired. The perk didn't cost the county out of pocket while the stock market flourished. But when the market dropped, a reserve fund that the county used to cover the payments dwindled. In the past few years, the county has had to tap more general fund money to cover medical costs for about 5,500 former workers. The county has about 17,000 active employees. If nothing is done, medical costs will continue to burden the county and retirees, said Robert A. Griffith, president of the Retired Employees Assn. of Orange County. Workers who retire after 20 years get $300 a month from the county toward a $700 monthly health premium. The remaining $400 comes from the retiree's pocket, Griffith said, with the total premium expected to increase at least 15% each year. "It's expensive now and going to get more expensive for everyone," Griffith said. The sting over rising medical costs was softened with the decision to pay off the bankruptcy debt early. "It has been a terrible drain on the county budget," Said Supervisor Jim Silva. "Taxpayers get nothing for the interest and principal [paid]." The bankruptCy was the byproduct of riSky investments by then-Treasurer Robert L. Citron, who borrowed hundreds of millions of dollars to place big bets on highly speculative securities that depended on low interest rates. When rates rose, the county lost $1.64 billion. The county still needs to make sure its restructuring plan meets guidelines of the Internal Revenue Service because it involves the sale of tax-exempt bonds. http://www.~atimes.c~m/news/~~ca~/~a-me-supes2~apr2~~~~~ ~6 ~ 443~print.st~ry?c~~~=~a-head~ines-ca~if~mia 4/20/2005 Egs ~.A~geles Times: O.C.'s Benefits Balloon Looming Page 4 of 4 The county has an overall bankruptcy debt of $763 million. It has made annual payments of $90.7 million, which officials said could have gone to county services that were cut because of the budget debacle, including park and beach improvements, flood control projects and social services. If you want other stories on this topic, search the Archives at latimes.com/archives. Article licensing and reprint options Copyright 2005 Los Angeles Times http://www.latimes.com/news/loCal/la-me-supes2Oapr20,1,1061443,print.story?coll=la-headlines-california 4/20/2005 Bullet t~aan may hit wall again - The Sacramento Bee Page 1 of 3 This story is taken from Po~[!.t_!.c_s_ at sacbee.com. Bullet train may hit wall again By Jennifer H. Fitzenberger -- Bee Capitol Bureau Published 2:15 am PDT Sunday, April 17, 2005 The high-speed rail bond might be on the move again. For the second year in a row, state lawmakers want to delay the $9.95 billion bond measure, which would pay for the first phase of a proposed bullet-train system. Last year, the Legislature postponed a public vo~e on the bond for two years, scheduling it for the 2006 ballot. Now, some lawmakers want to shoot for 2008. Proponents of the change say California's fiscal condition is too shaky to support more bond debt. They fear that voters, uneasy about the state's ongoing money problems, wouldn't approve the bond in 2006. But others - mainly San .loaquin Valley lawmakers - say voters are ready to decide the bond's fate and further delay would add to the project's $37 billion price tag. "We'll have as good a chance to pass it next November as we would have in 2008," said Rep. Jim Costa, D- Fresno, who, as a state legislator in 2002, wrote the bill that put the bond on the 2004 ballot. "Certainly there are indicators that strongly (show) that California's economy is on the rebound," he said. "If it continues at this rate, the timing could be very good for passage in 2006." The bond is crucial to the project. Without it, planners won't have enough money to build the line between San Francisco and Los Angeles. That segment will cut through the San Joaquin Valley, stopping in Fresno. Rail planners envision the 700-mile bullet-train system linking California's major cities by 2020. Trains would travel up to 220 mph. Riders could get from Los Angeles to Fresno in two hours and 23 minutes. Driving between those cities 15 years from now could take four hours and 30 minutes or more, planners predict. Most of the high-speed rail route has been decided, and an intricate, $17 million environmental study is almost complete, but finding money to start construction has been a struggle.. Assemblyman Alberto Torrico, D-Newark, believes the bond would have a better chance for success in 2008. His AB 713 would postpone the statewide vote. Californians, he said, won't support the bond if they don't believe the state has its fiscal house in order. He wants to wait until the Legislature balances the state budget this year and works on additional funding options for the rail project. "If they vote 'no' for the bond next year, where does that leave us? ! think it leaves us with no high-speed rail for a long time," Torrico said. "I want to get the project right." Sen. Kevin Murray, who wrote last year's bill that moved the bond vote to 2006, is supporting AB 713. He said the state's finances are no better off today than they were last year when his bill was signed by Gov. Arnold Schwarzenegger. The governor hasn't taken a position on AB 713. http://www, sacbee.com/content/polifics/v-print/story/12741847p- 13593550c.html 4/18/2005 l~llet, train may hit wall again - The Sacramento Bee Page 2 of 3 "We're just in debt already. Members of the public pay attention to that," said Murray, D-Los Angeles. "it's a big, big price tag." Torrico's bill would allow the bonds to be sold shortly after voter approval of the measure in November 2008. The funding delay, he said, would be minimal because last year's legislation directed the bonds to be issued no sooner than January 2008, though the measure would be on the 2006 ballot. Torrico believes the state's fiscal situation has diminished its ability to undertake new projects. As of Feb. 1, the state had $47.2 billion in bond debt, according to the Department of Finance. Californians approved about $31 billion in bonds in 2004 alone - $15 billion for deficit relief, $12.3 billion for schools, $3 billion for stem-cell research and $750 million for hospitals. Regardless, said Sen. Dean.Florez, D-Shafter, vOters want to weigh in on the high-speed rail project. Delaying the vote, he said, could give Californians the impression that state leaders are not serious about high-speed rail. ":I'm going to work very hard in the Senate to make sure it doesn't pass," Florez said. Assemblywoman Nicole Parra, D-Hanford, said the project's overall cost could climb by a few billion dollars if the bond vote is postponed. Californians, she said, want high-speed rail, which would attract new businesses and create at least 35,000 jobs. "People get it. They want to see this on the ballot," said Parra, who spent a week last month in .lapan checking out its high-speed rail system with Costa and others. :If California passes the rail bond, the federal government would be more apt to help with funding, Costa said. "It creates much greater motivation for the federal government to take action and to reward states that are willing to take action," he said. A delay in the vote could mean that parts of the environmental study would have to be redone, said Mehdi Morshed, executive director of the California High-Speed Rail Authority. Development. could sprout up along the proposed rail line, outdating current documents, he said. "I'm not sure who is going to build what at what time, but we do know the Central Valley is growing very . fast," Morshed said. "if there are new things done in the vicinity of our (route) then our environmental document will not be accurate. Then we will have to go back to the drawing board." About the writer: ® The Fresno Bee's Jennifer M. Fitzenberger can be reached at jfit~!~!~.~.!~ger~@[!~.~.o.ob~e,~9.~. or (916) 326-5541. Go to: Sacbee / ~_.a._.~k t._o.._.~;9~. This article is protected by copyright and should not be printed or distributed for anything except personal use. The Sacramento Bee, 2100 Q St., P.O. Box 15779, Sacramento, CA 95852 http://wwTM. sacbee, com/content/politics/v-print/story/12741847p- 13593550c.html 4/18/2005 B!:lllet.~t~ain may hit wall again - The Sacramento Bee Page 3 of 3 ~ ' Phone: (916) 321-1000 C~l~;grig. h~..~@. Y~.~...~ cra rO~.0 to. Be~. http://www, sacbee.com/content/politics/v-print/story/12741847po 13593550c.html 4/18/2005 RECEIVED I APR 20 Z005 ~ 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: April 18, 2005 SUBJECT: GRAFFITI REMOVAL 3014 UNION AVENUE Referral No. 1096 (Meeting: 4/13/05) COUNCILMEMBER BENHAM REQUESTED STAFF REMOVE GRAFFITI FROM THE TOP FLOOR OF A BUILDING AT 3014 UNION AVENUE AND CONTACT PRINCIPAL LESLIE LUNING OF LONGFELLOW SCHOOL. Staff contacted the owner of the building who removed the graffiti, as it was not accessible to city anti-graffiti crews. G:\GROUPDATLReferralsL2005\04-13X~Re~I096-UNION AVE. GRAFFITI.doc CITY MANAGER'S OFFICE MEMORANDUM April 20, 2005 TO: ALAN TANDY, CITY MANAGER FROM: JOHN W. STINSON?A~S~ISTANT CITY MANAGER SUBJECT: Mrs. Debbie Margrave, Complaint re. Airplane Noise in Quailwood Neighborhood Council Referral- Ref001097 At the April 13th City COuncil meeting, Councilmember Benham referred a concern by Mrs. Debbie Margrave a Quailwood area resident regarding noise caused by a Iow flying aircraft. I contacted Mrs. Margrave who reported there was a Iow flying plane which made numerous passes over her home over successive weekdays. She was concerned about the noise of the aircraft and frequency of the flights over her home. She indicated she had filed a complaint with the County Airport regarding her concerns and indicated that she had provided the number on the plane as well. At her request I contacted Mr. Ray Bishop, the County Airports director and conveyed Mrs. Margrave's concerns. Mr. Bishop indicated he would look into the situation. I received a call from Mr. Jack Gotcher from the airport who indicated that plane number that Mrs. Margrave provided was registered in South Dakota (Mrs. Margrave had indicated to me that she was unsure if she had accurately copied the number of the plane) so it did not appear that the plane was a local one. Mr. Gotcher also explained that a local radio station had recently started morning and evening traffic reports using a small plane and that could be the one in question. He indicated that the radio station plane was authorized to fly at 1,000 ft over populated areas by the FAA. However, because of complaints he had spoken with them about moving them up to 3,000 ft. which he had worked with the tower at the airport to implement. He said he would also speak to the radio station about changing their routing to avoid circling several times over populated areas and instead using a longer route to minimize any noise from their aircraft. I spoke with Mrs. Margrave and conveyed the information from the airport staff and she indicated that the problem with the airplane had stopped. She was very appreciative of the assistance provided to resolve the situation. RECEIVED M E M ORA N D U M ~APR 2 2 2005 CITY ATTORNEY'S OFFICE C~'I'Y MANAGER'S OFFICE April 21, 2005 TO: ALAN TANDY, CITY MANAGER /'~ . FROM: VIRGINIA GENNARO, CITY ATToRN/~'~w.~ COUNCIL REFERRAL NO. 001105 Vice-mayor Maggard requested the City Attorney's Office issue a formal request that General Holdings Company honor the City Parks and Trails Plan opening trails on their property and request a response from General Holdings Company by a certain date; and to set up a meeting with the City. Attorney to discuss options to assure General Holdings Company honors commitments; and the City to send correspondence regarding removal of dead horse addressing the aspects of health and safety. Attached is a copy of a letter from the City Attorney's Office to General Holdings Company's attorney. VG/RMS:Isc Attachment s:\cou NCIL\Referrals\04-05 Referrals\GenHoldings. Trails.doc CITY OF BAKERSFIELD OFFICE OFTHE CITYATTORNEY 1501 TRUXTUN AVENUE BAKERSFIELD, CA 93301 TELEPHONE: 661-326-3721 FACSIMILE: 661-852-2020 April 22, 2005 Thomas C. Fallgatter, Esq. KLEIN, DeNATALE, GOLDNER, COOPER, ROSENLIEB & KIMBALL, LLP 4550 California Avenue, 2"d Floor Bakersfield, CA 93309 Re: Your Client - The Canyons, LLc Dear Mr. Fallgatter: The City Council has requested that this office contact General Holdings (which we understand is now referred to as The Canyons, LLC) concerning two matters. Since our understanding is that you represent The Canyons, we have directed this letter to your attention. Some time ago, The Canyons represented that it would leave open on its property certain trails for runners and horseback riders in the area. Additionally, representatives of The Canyons also indicated that they would take action to remove a dead horse that has been on the proPerty for some time. Unfortunately, the trails in question have been fenced off and, to the best of our knowledge, no one has removed the dead horse. This letter constitutes a request that The Canyons remove the fencing on its property, consistent with its prior representations and advise the undersigned as to how your client intends to remove the horse remains. Your prompt attention to these matters is appreciated. V~/l~truly yours, ROBERT M. SHERFY ~' (] Deputy City Attorney RMS:Isc cc: Honorable Mayor and Council Alan Tandy, City Manager Stan Grady, Development Services Director Jim Movius, Planning Director $:\COUNCIL\Refen'a~s\04-05 Referrals\Maggard-GenHMgs.Trails.doc RECEIVED APR 2 2 Z005 MEMORANDUM CITY ATTORNEY'S OFFICE CITY MANAGER'S OFFICE April 20, 2005 TO: ALAN TANDY, CITY MANAGER Ey~~ ~_~ FROM: VIRGINIA GENNARO, CITY ATTORN SUBJECT: TRUCK-MOUNTD BILLBOARDS COUNCIL REFERRAL NO. 001t 04 Vice-mayor Maggard requested staff provide information regarding the legality of a truck-mounted billboard, A "billboard" mounted on a truck implicates both Vehicle Code section 27900 and Bakersfield Municipal Ordinance 17.60.090 M.' Vehicle Code section 27900 requires conventional transport trucks to place identification signage on each side of the truck readable from 50 feet. A conventional transport truck is one which transports another's property for hire or transports passengers for hire. Bakersfield Municipal Ordinance 17.60.090 M prohibits a truck, the sole function of which is advertising another's business, from moving around on City streets. Consistent with the Vehicle Code, the ordinance does not prohibit advertising appearing on a truck identifying the transport business incidental to its primary purpose of transporting goods or passengers. The pertinent portions of the local ordinance read: Vehicles ... shall not be utilized as support for any mobile .... signs. There shall not be maintained on any vehicle.., parked in a public right- of-way, or on public or private property so as to be visible from a public right-of-way .... any sign for the purpose of providing advertisement of a business, service or products, directing people to a business activity located on the same or other property for any purpose. This prohibition shall not apply to standard advertising or identification practices where such signs or advertising devises are painted on or permanently attached to a commercial or business vehicle used in the conduct of such business .. to bumper stickers, to placards identifying the vehicle itself as being for sale, or to window stickers or placards on vehicles in any vehicle sales lot. Alan Tandy, City Manager April 20, 2005 Page 2 The facts given, that this scenario involves a "truck-mounted billboard," suggest that the sole function of the truck is to support a mobile advertising sign similar to a conventional "billboard" advertising another's products. As such, staff believes the City's "sign ordinance" prohibits such conduct for the reason that such "billboards" on City streets is an unsafe, unjustified distraction to other drivers and the ordinance is not otherwise in conflict with the Vehicle Code. Violators could be ticketed by either the Bakersfield Police Department or Development Services Code Enforcement. The City would look to Code Enforcement as its primary enforcement arm. VG/AMS:Isc cc: Honorable Mayor and City Council Jim Eggert, Principal Planner S:\COUNClL\Referrals\04-05 Referrals\TruckMountBillboards.doc RECEiptED CITY MANAGER'S OFFICE 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: April 19, 2005 SUBJECT: SCOPE OF DESIGN - FIRE STATION Referral No. 1106 (Meeting: 4/13105) COUNCILMEMBER HANSON REQUESTED STAFF CONTACT THE ARCHITECT TO COME BEFORE THE BUDGET & FINANCE COMMITTEE TO DISCUSS THE SCOPE OF DESIGN FOR THE NEW FIRE STATION LOCATED AT S. UNION' AVENUE AND WHITE LANE. Staff has informed the architect of this request to meet with the Budget & Finance Committee. The architect's Project Manager and applicable City staff will attend that meeting to discuss the scope of design. G:\GROUPDATLReferrals~005\04-13LRef~ 1106-FIRE STATION.doc RECEIVED APR 2 0 ~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: April 18, 2005 SUBJECT: STREET RECONSTRUCTION AND POTHOLES Referral No. 1101 (Meeting: 4/'13/05) COUNCILMEMBER SULLIVAN REQUESTED STAFF PLACE ON THE LIST FOR STREET RECONSTRUCTION ON REAL ROAD SOUTH OF STOCKDALE HWY. FROM THE WILDWEST SHOPPING CENTER SOUTH TO PLANZ ROAD. COUNCILMEMBER SULLIVAN REQUESTED STAFF TO PATCH A POTHOLE IN FRONT OF THE APARTMENT COMPLEX AT 2700 REAL ROAD. ALSO A POTHOLE AT THE INTERSECTION OF PLANZ ROAD AND NEW STINE ROAD. COUNCILMEMBER CARSON REQUESTED STAFF FILL POTHOLES ON "L" STREET BETWEEN BRUNDAGE LANE AND CALIFORNIA AVENUE. Real Road, south of Stockdale Highway to approximately 100 feet south of Elcia Drive is in need of reconstruction. It will be placed on our future Capital Improvement Project list. Real Road from just south of the Wild-West Shopping center to approximately 200 feet north of Ming Avenue is in the County. The street surface on Real Road from Ming Avenue to Planz Road was crack sealed in 2004. It is in fair condition and will only need a two inch overlay in approximately two years, at which time it will be placed on the 2006/2007 Street Resurfacing List. The potholes at 2700 Real Road and at Planz Road & New Stine Road were patched Tuesday, April 19, 2005. On Monday, April 18, 2005 a patch crew started patching all potholes on "L" Street between California Avenue and Brundage Lane. They will complete this task by Friday April 22, 2005. G:\GROUPDAT~Referrals~2005\04-13\Referral 1101 .POTHOLES WARD I & 6.doc