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Home My WebLink About02/03/1992 B A K E R S F I E L D Kevin McDermott, Chair Patricia J. DeMond Ken Peterson Staff: John W. Stinson AGENDA BUDGET AND FINANCE' Monday, February 3, 1992 12:30 p.m. City Manager's Conference Room 1. School Crossing Guards (Ed Schulz/Asst. Chief Lewis) 2. Fire Station No. 2 (Chief Johnson) 3. Midyear Budget Amendments (Melanie Dunwoody) 4. Monthly Financial Reports to Committee (Gregory Klimko) 5. Fire Disability and Retirement Actuary (Gregory Klimko) 6. Proposed Ordinance - Closeout Sales (Gregory Klimko) 7. Proposed Ordinance - Motion Pictures (Gregory Klimko) 8. Set Next Meeting (Tentative Date: February 12, 1992) MEMORANDUM "WE CARE" 03 February 1992 TO: John Stinson, Assistant to the City Manager FROM: Stephen D. Johnson, Fire Chief ~.~ SUBJECT: Fire Station #2 'J As a follow-up to the last Budget and Finance Committee meeting, I am submitting, as requested, the following information: 1. For the debt financing for the rehabilitation or replacement of Station #2, the subject of state bond money was suggested as a possibility. The Finance Department and Trudy Slater forwarded information to me regarding this subject: ABiO01 (Brown), Chapter 658, "Authorizes cities to issue bonds to include seismic strengthening of unreinforced buildings". Community Development has suggested the possibility of somehow splitting the project and use CDBG from fiscal year 92-93 and 93-94, thereby lessening the immediate financial impact. Since they are now formulating their budget and identifying projects, I would like to give them a prompt response. 2. In reference to the mortar joints on the exterior of the building, all will be brought up to current building standards. 3. The maintenance and life span of a replacement station or the rehabilitation of the current building are addressed in the attached addendum from Mr. Warren Minner. It should be highlighted that maintenance and operation of a rehabilitated station will require an additional ongoing annual cost of $20,ooo.0o. 4. No contingency fund was estimated for replacement or rehabilitation. Mr. Minner felt that a 10% ($78,000.00) contingency for replacement and at least 20% ($99,000.00) contingency for rehabilitation would be appropriate. 5. Neither replacement nor rehabilitation costs include funds for bringing the "shop" up to code. The only costs that are included would be to relocate the essential equipment necessary for our "daily" operation to another building, already at Station 2. 6. As was requested, a limited survey was conducted to understand what the opinion of our personnel regarding the status of Station 2. a. Each member of the Management Team (12 Chief Officers) felt that the replacement of Station 2 would be the most effective (financial and operational). Page 2 Memo to John Stinson b. A limited survey was ~conducted at'Station 2, Saturday, February 1st, , which consisted of personnel from both Station 2 and outlying stations and a representative from the Union. 1. Keeping the "shop" was of paramount importance to most. 2. Historical Value was not a major issue. 3. The idea that the current station met their needs; they were worried.about the pOssibility.of the City starting a project and not finishing it in a timely manner; and a slightly smaller station were the main issues. 4. It was, felt by some that the rehabilitation was more cost effec- ti~ve, since from their-~viewpoint, the "shop" could also be rehabil- itated for t~e same overall cost. SDJ:trs ' 7:BONDS/BONDS1 WARREN A. MINNER STRUCTURAL & CIVIL ENGINEERS 1716 OAK STREET . BAKERSFIELD, CALIFORNIA 93301 PHONE (805) 324-9724 FAX (805) 324.-3416 \ REPLACEMENT VRS. REHABILITATION TO: City of Bakersfield DATE: January 27, 1992 Department of Public Works 1501 Truxtun Avenue Bakersfield, California 93301 Attention: Art Moore PROJECT: BAKERSFIELD CITY FIRE STATION #2 INVESTIGATION: STRUCTURAL REHABILITATION I ADDENDUM: ADVANTAGES & DISADVANTAGF-~I· OF NEW AND OLD STRUCTURES REPLACEMENT sTRucTURE (NEW): Advantages: · New handicapped access and fixtures; new, increased landscaping; both meeting current City standards in accordance with the Americans with Disabilities Act. · Less· maintenance and maintenance costs; annual savings estimated to be $20,000 or more. · Best investment for citY. Less annual cost over the life of the structure when all costs are considered. · New energy efficient mechanical A. C., heating systems and electrical lighting systems; new insulation and double pane glass per Title 24 requirements. Increased comfort for firefighters and less heating, cooling and lighting costs. · New, updated architectural plan and layout, better able to meet today's needs; versatile construction system designed to be easily modified or altered in the future. · Architectural plans for the new structure may be reused on future City fire ~tations, saving the CitY both time and architectural fees. Could' save about one !half the · architectural fees on future projects. · Being an essential facility we wOuld have a new, superior, safer, no compromise structure. Dis'advantages: · Higher first cost. REPLACEMENT VRS. 'REHABILITATION PAGE 2 City of Bakersfield - Public Works Department January 27, 1992 :' I~EHABH~ITATED STRUCTURE (OLD): -? " Advantages: * Lower first cost. * Preservation of an old, early Bakersfield structure (1~}39). Disadvantages: Increased maintenance and maintenance costs over new facility. Old, inefficient mechanical and heating systems and electrical lighting systems. Decreased comfort for firefighters and increased, utility costs. · Not the best.investment. Higher annual costs over that of a new structure when all costs are considered. '* Old, outdated architectural plan and layout; not versatile, system, difficult to alter or modify for future needs. * Old, compromised structure; essential facili~ty that is not up to standards set by the new City and County facilities. · Cannot reuse engineering plans for future City. fu'e stations. RECOMMENDATION; Demolish and replace the existing substandard unreinforced masonry Fire Station fi2 buildings.' Replace them with a new, uti-to-date, fire protected wood frame structure. Very truly yours, WARREN A. MINNER STRUCTURAL & CIVIL ENGINEERS Warren A. Minner Structural Engineer WAM:cab 'City of Bakersfield General Fund 1991-92 -Sources and Uses Current Actual To Remaining Estimates 12/31/91 Balance Sources: Taxes $ 51,810,000 $ 23,527,580. $ 28,282,420 Licenses and Permits 1,457,600 691,150 766,450 Intergovernmental Revenue 7,171,000 3,415,577 3,755,423 Charges for Services 5,167~500 1,31 7,429 3,850,071 Fines and Forfeits 450,000 205,151 244,849 Miscellaneous Revenue 1,937,688 984,180 953,508 Total Revenues 67,993,788 30,141,067 37,852,721 Transfers from Other Funds 600,000 315,000 285,000 Beginning Fund Balances 5,560,322 5,560,322 -0- Total Sources '$ 74,154,110 $ 36,016,389 $ 38,137,721 Uses: General Government , $ 7,285,002 $ 3,518,174 · $ 3,766,828 Police 24,643,284 11,660,049 12,983,235 Fire 14,730,519 · 7,230,981 7,499,538 Public Works 10,509,649 5,052,889 5,456,760 Community Services' 8,626,927 3,913,555 4,713,372 Building/Planning Services 3,343,739' 1,604,169 1,739,570 _ Community/Economic Development 560,690 294,353 266,337 Contingency ~ 1,875,700 -0- 1,875,700 Total Expenditures/Encumbrances 71,575,510 33,274,170 38,301,340 Transfers to Other Funds 2,578;600 2,161,300 4~ 7,300 Total Uses ¥ ~ $ 74,154,110. $ 35,435,470 $ 38,718,640 City of Bakersfield General Fund 1991-92 Sources and Uses , Current Actual To Remaining Estimates 12/31/91 Balance Taxes: SalesTax $ 26,900,000 $ 11,810,156 $ 15,089,844. Property Tax 17,965,000 8,516,189 9,448,811 Transient Lodging Tax 3,125,000 1,61 7,373 1,507,627 Other Taxes 3,820,000 1,583,862 2,236,138 Total Taxes 51,810,000 23,527,580 28,282,420 Licenses and Permits: Building and Planning 1,345,000 649,230 695,770 Other.Permits 112,600 41,920 .70,680 Total Licenses and Permits 1,457,600 691,150 766,450 Intergovernmental Revenue: Motor Vehicle in. Lieu Tax 6,400,000 3,129,093 3,27.0,907 State Homeowner's Relief 310,000 48,614 261,386 Cigarette Tax 200,000 108,757 91,243. Other. State Subventions 26!,000 129,113 131,887 Total Intergovernmental 7,171,000 3,415,577 3,755,423 Charges for Services: Building and Planning 1,025,000 653,429 371,571 Interfund Charges 1,202,000 -0- 1,202,000 Maintenance Districts 1,298,000 -0- 1,298,000 Convention Center 567,000 176,884 390,116 Parks and Recreation 301 i000 199,455 101,545 Fire and Police 701,500 261,566 439,934 Other Charges 73,000 26,095 46,905 Total Charges for Services 5,167,500 1,31 7,429 3,850,071 Fines and Forfeitures 450,000 205,151 244,849 Miscellaneous Revenue: Interest Income 654,500 194,933 459,567 Sales of Personal Property 389,000 ',, 67,715 321,,285 C'ontributions 852,000 ' 701,335, 150,665 Other Revenue 42,188 20,197 21,,991 Total Miscellaneous Revenue 1,937,688 984,180 953,508 Total Revenue 67,993,788 .30,141,067 37,852,721 2 City of Bakersfield General Fund 1991-92 Sources and Uses Current Actual To Remaining Estimates 12/31/91 Balance Transfers from Other Funds: Traffic Safety 550,000 265,000 285,000 Domestic Water 50,000 50,000 -0- Total Transfers in 600,000 315,000 285,000 Beginning Fund BalanCes: Beginning Encumbrances 340,760 340,760 -0- Balance Available 5,219,'562 5,219,562 -0- Total Beginning Balances 5,560,322 5,560,322 -0- Total Sources $ 74,154,'110 $ 36,016,389 $ 38,137,721 3 City of BakersfieJd General Fund 1991-92 Sources and Uses Current ' Actual To Remaining Estimates 12/31/91 Balance General Government: Mayor and City Council $. 744,903 $ 556,538 $ 188,365 City Manager ' 1,060,409 746,991 313,418 City Clerk 6341783 234,240 400,543 Personnel 1,408,334 609,927 798,407 Risk-Retirees/Unemployment -0- -0- -0- Data Processing 490,936 206,094' 284,842 Finance & Accounting 749,259 357,648 391 ;611 Treasury & Business Licenses 312,068 151,972 160,096 Purchasing 176,856 85,716 91,140 Property Management 91,762 15,212 76,550 Proper~ty Tax Administration 380,000 -0- 380,000 City Attorney 1,235,692 . 553,836 681,856 Total General Government 7,285,002 3,518,174 3,766,828 Police: Administration and Vice 3,939,704 1,966,290 1,973,414 Operations 16,617,397 7,732,018 8,885,379 Investigations 4,086,183 1,961,741 2,124,442 Total Police 24,643,284 11,660,049 12,983,235 Fire: Administration ~ 757,579 ~ 361,653 395,926 Protection 12,260,234 6,061,206 6,199,028 Prevention 922,984 440,012 482,972 Communications & Maintenance 789,722 368,110 421,612 Total Fire 14,730,519 7,230,981 7,499,538 Public Works: Engineering 3,076,688 1,541,954 1,534,734 Facilities Maintenance 2,081,025 942,241 1,1 38,784 Street Safety ' 2,734,851 1,1 85,439 1,549,4,12 Street Maintenance 2,617,085 1,383,255 1,233,830 Total Public Works 10,509,649 5,052,889 5,456,760 Cummunity Services: Parks 4,003,055 1,880,670 2,122,385 Maintenance Districts 1,377,9.71 600,210 777,761 Recreation 1,261,105 .587,290 673,815 Convention Center- 1,984,796. 845,3'85 1,1 39,411 Total Community Services 8,626,927 3,913,555 4,713,372 City' of Bakersfield General Fund 1991-92 Sources and Uses Current. Actual To Remaining Estimates 12/31/91 Balance Building/Planning: Building Construction 1,666,51 9 794,715 871,804 Neighborhood Conservation 1 326,722 150,247 176,475 Current Planning 763,954 367,292 396,662 Advance Rlanning 586,544 291,915 294,629 Total Building/Planning 3,343,739 1,604,169 1,739,570 Community/Economic Development: Community Development 2,750 2,750 -0-' Economic Development 402,418 212,009 190,409 Redevelopment 155,522 79,594 75,928 Total Community/Economic Development 560,690 294,353 266,337 Contingency 1,875,700 -0- 1,875,700 Total Expenditures/Encumbrances 71,575,510 33,274,170 38,301,340 Transfers to Other Funds Capital Outlay Fund 505,000 505,000 -0- Equipment Fund 4331100 15,800 417,300 Airpark Fund 416,500 416,500 -0- Refuse Fund 1,224,000 1,224,000 Total Transfers Out 2,578,600 2,161,300 417,300 Total Uses $ 74,154,110 $ 35,435,470 $ 38,718;640 GKUS1 ,W'K1 02/02]92 Peat Marwick Management Consultants ' 725 Soum Fi~ueroa $;'ee~ Te!eonone 2i~ 972 "000 Telefax 213 622 1217 Los Angeies. CA 300!7 Telex 6831572 PMMLA CaDie Aodress '/ERITATEM January 6, 1992 ,Mr. Gilbert Rojas Assistant Finance Director Finance Department Citv of Bakersfield 1561 .Truxton Avenue Bakersfield, CA 93301 City of Bakersfield Firemen's Disability and Retirement Fund Dear Gil: The Julv 1, 1991 actuarial valuation of the City of Bakersfield Firemen's Disability and Retirement Fund plan determined a Present Value of Accumulated Benefits of 52,886,760. The'July 1, 1991 value of Plan assets, as provided to us bv the Cirv of Bakersfield. was $3,276,237. If the actuarial assumptions are met. assets are approximately $3'90,000 in excess of the amount required to provide the Plan'benefits. The actuarial assumptions include a 6-I/2% interest rate. Under the terms of the Plan. the benefits are increased each Julv 1, bv a 2% cost of living adjustment (COLA). We were asked to determine to what perc~ntag~ this annual COLA could be increased, using the S390,000 excess assets. The calculation was made not onlv at the 6-1/2% interest assumption, but also assuming 6% and 7%. The results are as follows:' Interest Assumr~tion Annual COLA Rounded Down to Actual Nearest 0.50% 6.0% 2.95% 2.5% 6.5% 3.45% 3.0% ' 7.0% 3.95% 3.5% Please let me know if vou have'any questions Or if we can be of further service in this matter. Very truly yours, KPMG Pelt Marwick Frederick N. Heidorn. ASA Principal FNH:js/ews