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HomeMy WebLinkAbout05/04/1992 B A K E R $ F I E L D ~ Kevin McDermott, Chair Patricia J. DeMond Ken Peterson Staff: John W. Stinson AGENDA BUDGET AND FINANCE May 4, 1992 12:00 p.m. City Manager's Conference Room 1. City Physician (Maureen Cotner) 2. Airpark 3. City Auditor (Update) 4. Community Development Block Grant Application (Jake Wager) - 12:30 Community Services of Bakersfield Unlimited 12:40 Ebony Counseling Center - 12:50 YWCA 5. Hospital Bonds (Gregory Klimko) 6. Pu~blic Services Building (Gregory Klimko) 7. Set Next Meeting MEMORANDUM DATE: MAY 4, 1992 TO: J. DALE HAWLEY, CITY MANAGER I., .... FROM: MAUREEN COTNER, PERSONNEL MANAGERi~_i...>~- SUBJECT: CITY PHYSICIAN SELECTION Requests for Proposals were issued February 10, 1992, seeking qualified physicians to provide medical services as the City's Physician. The RFP's were directed to five providers, as follows: Bakersfield Occupational Medical Group Medi Center of Bakersfield Niles Surgical & Medical Group San Joaquin Industrial Medical Association Southwest Urgent Care Center Proposals were received from three providers, Bakersfield Occupational Medical Group, San Joaquin Industrial Medical Associates and Southwest Urgent Care Center. Interviews were conducted with these three firms on April 20; the interview panel was composed of Scott Manzer, Risk Manager, John Stinson, Assistant to the City Manager, Martha Haslebacher, Sanitation Supervisor, and myself. The panel had received and reviewed copies of the proposals prior to the interviews. Also reviewed was an analysis of the relative costs cited by each firm for services provided (attachment "A"). The firms were asked a series of prepared questions (attachment "B"). Following one hour interviews, the panel ranked the firms as follows, based on the content of the proposals and information from the interview: San Joaquin Industrial Medical Associates: 93.0 Bakersfield Occupational Medical Group: 86.2 Southwest Urgent Care Center: 82.9 Average scores are shown, and reflect consideration given by the panel for the predetermined set of selection criteria (Attachment "C"). The panel agreed that all three firms merited further consideration, and followed up with on-site visitation and evaluation on April 27~ This evaluation was based on: PAGE 2 APRIL 4, 1992 CITY PHYSICIAN SELECTION capacity and cleanliness of the facility supply inventory staff professionalism overall organization type, sophistication and condition of medical equipment laboratory, pharmacy and referral facilities All three facilities were found acceptable,; the panel did not find that adjustment to the ranking was warranted. Staff recommends that San Joaquin Industrial Medicine Associates be retained for a period of two years to provide medical services as the City's Physician. MC/kef MEMO\DEPT\MANAGER\PHYS.RFP '7 ATTACHMENT "A" ANALYSIS OF CITY PHYSICIAN RFP PHYSICAL EXAM FEE SCHEDULE CHRISTIANSEN BOMG SOUTHWEST cOMPLETE HISTORY AND PHYSICAL EXAM $35.00 $40.00 $50.00 EKG $25,00 $30.00 $40.00 AUDIOGRAM $15.00 $10.00 $15.00 PULMONARY FUNCTION TEST $25.00 $30.00 $35.00 LAB TESTS: SERUM LEAD LEVEL $25,00 $30.00 $20.00 CHOLINESTERASE LEVEL $15.00 $20.00 $23.00 CBC WITH DIFFERENTIAL $8.00 $10,00 $11.00 BLOOD LIPID PROFILE ' $20.00 $25.00 $20.00 RP R $8.50 $8.00. $14.00 CHEMZYM PANEL $12.00 $20.00 $24.00 CHEM+CBC+RPR $16.00 $35,00 $49.00 CHEM+CBC WITH DIFFERENTIAL , $16.00 $,'35.00 $,35.00 BLOOD GLUCOSE $8.00 $8.00 $10.00 URINALYSIS $8.00 $7.50 $10.00. TB SKIN TEST $5.00 $3.00 $13.00 TOTAL LAB TESTS $141.50 $201.50 $229.00 X RAYS: CHEST - PA (SINGLE VIEW) $20.00 $25.00 $30.00 CHEST - PA & LATERAL $35.00 $40.00 $42.00 BACK - LUMBOSACRAL SPINE (2 VIEWS) $40.00 $40.00 $35.00 BACK - LUMBOSACRAL SPINE (3 VIEWS) $50.00 $55.00 $45.00 BACK - LUMBOSACRAL SPINE (4 VIEWS) $60,00 $65.00 $60.00 COMPLETE LUMBOSACRAL SPINE (5 VIEWS) $75.00 $75.00 $72.00 TOTAL X RAYS $280,00 $300.00 $284.00 URINE DRUG SCREEN $30.00 $35.00 $40.00 DOT (DRIVER) PHYSICAL EXAMINATION $35.00 $40.00 $40.00 CAR DIAC S'IR ESS TEST $200.00 $200.00 $195.00 TOTAL EXHIBIT A - PAGE 1 $786.50 $886.50 $828.00 OTHER FEES: MEDICAL CONSULTATIONS FOR CIVIL SERVICE BOARDS $0,00 $0,00 $225,00 FITNESS FOR'DUTY AND CIVIL SERVICE RETIREMENT PHYSICALS $50,00 840,00 $100,00 $100,00 $75,00 FUNCTIONAL CAPACITY EVALUATION $375,00 $150,00 $600,00 HEPATITUS B INOCULATION FOR FIRE FIGHTERS $180,50 $210,00 $50,00 POST IMMUNIZATION FOR HEPATITUS B FOR FIRE FIGHTERS $12,50 $70,00 $50,00 HAZ MAT PHYSICALS FOR HAZ MAT TEAM ' $170,00 $45,00 $557,00 . $622,00 :$622,00 MEDICAL/LEGAL WITNESS FESS (PER HOUR) $400,00 $100,00 $350.00 HAZ MAT PHYSICALS FOR HAZ MAT TEAM $672,00 $667,50 $709,00 ATTACHMENT "B" CiTY OF BAKERSFIELD CITY PHYSICIAN Interview Questions General Questio~ns: Would you please explain the ownership of Your practice and any other interests in related medical services? Also, could you explain which services you would provide in house and which firms you would use for oUtside tests and medical services? How many M.D.'s are on staff during a typical day? What is the probability that an injured employee will be treated regularly by the same physician (Goal: continuity of care) In regard to each physician listed as employees in the RFP, what percentage of each person's time is allocated to your facility? What percentage to treatment of industrial medicine? What is each person's length of experience in industrial medicine? How do you intend to provide.24 hour service? Are Doctors on call and available? What about referrals to emergency rooms? Do you utilize Physician Assistants and if so, what is their role in yOur practice? What iSthe average amount of time an employee should expect to wait to see an M.D. and is there a plan to mitigate the waiting time? - for an industrial injury - for a pre-employment physical - for a return to work physical What association or affiliation do you have with local hospitals? Do you have staff or courtesy privileges What is your staff turnover rate? (include non-professional, clerical, staff) Have you or members of your immediate staff or preferred referral M.D.'s testified as a plaintiff's witness in cases in which the CitY or it's employees were defendants? Pre-employment: As the City Physician what role should you have in the Hiring decision? Howwould you assist the city in evaluating physical examinations or other special tests to make sure they are appropriate or need to be changed? What process would you use? What time schedule for review?. (how often) What role do functional capacity tests have in relation to medical examinations regarding hiring and/or returning an employee to work? What is the criteria for rejection of applicant with a back problem? (must be familiar with case law) When would it be appropriate to ask an applicant taking a pre-employment physical about any medication which may affect a drug test? (pre-offer,)ost-offer, DOT?).Is there any conflict with this and the City's Drug Free Workplace Policy? Americans With Disabilities Act: What is the ADA and what impact do you' feel it has on the City of Bakersfield? What process would You utilize to determine'"di~'ect threat" regarding an employees ir~ability to return to work? What proceedures would you reC'ommend be implemented to make a determination of "direct threat"? Would you have a problem including in the contract language requiring your compliance with the Americans with Disabilities Act and language indemnifying the city in the event you failed to do so? Worker's 'Compensation: How much of your current practice deals,with industrial medicine? I will describe an incident(s) where~an injury has occurred and ask if the injury would be covered under worker's compensation. What are the exceptions to the "going and coming rUle"? Have you ever appeared before the Workers' Compensation Appeals Board? How many times? What is your typical turnaround time on medical reports? (i.e. first reports of injurY, phySical examination reports, workers' compensation reports/evaluations) Following .the treatment phase, do you .perform disability evaluations? (If a significant portion of their practice is dedicated to private patients) How would you reconcile conflicts which might arise in determining if an industrial injurY has occurred, for. a private patient? What do you feel the role of the City Physician is to advise city management staff regarding indUstrial injuries? Have you, or do you expect to consult with city staff on investigations, i.e., excessive force etc.? What experience do you have in this area? (testimony as an "expert witness") What types of injurY claims would you not be able to accommodate in your facility and how would you handle them? .We are surrounded today by various toxic substances, pUblic safety officers have an ever greater exposure. What are your specific qualifications in this regard? · What is your philosphy regarding light duty return to Work programs? Loss Control: For the additional Risk Management Services listed in your proposal, how many hours of services do you estimate to be required for a client like the city? (estimated average hours for comparison between proposals What is SB 1987 What do you see your role (if any) in assisting the City with compliance to this law? ATTACHMENT "C" CITY OF BAKERSFIELD SELECTION GUIDELINES CITY PHYSICIAN APRIL 20, 1992 1. Ability to write timely, comprehensive, logical and concise reports. 2. Availability. 3. Prior experience in toxic and. pesticide exposures, disability evaluation, industrial and occupational injuries, and drug testing. 4. References. 5. Professional' training or other exPerience that qualifies physician to testify in areas of claims liability. 6. Professional training of other members of professional staff. 7. Experience in testifying in court. This.should include, but not be limited to, the number of times physician has testified in court and in what 'areas of expertise physician has been certified by the Superior Codrt. In addition, experience in testifying at Workers' CompenSation Appeals Board Hearing, Administrative Hearings and at depositions. 8. Ability to'conduct physical examinations within a reasonable time; provide medical reports within seven (7) days of the examination and Workers' Compensations reports within two (2) days of examinations. 9. Cost of services, inclluding sufficiency of detail. 10. Ability to start work upon contract approval 11. Professional Merit: The soundness of the program and professionalism of the content will be evaluated by this criteria. This is include such things as knowledge of the types of medical.issues and the varied services the City PhySiCian will perform. In addition, reasonableness of staffing plans; soundness of approach and quality of the total program offered will be considered. MEMORANDUM TO: HONORABLE MAYOR AND COUNCILMEMBERS FROM: BAKERSFIELD AIRPARKADVISORY COMMITTEE (BAAC) DATE: MARCH 26, 1992 SUBJECT: FUNDING FOR STRATEGIC/TQM PLANNING AND TRAINING FOR BAKERSFIELD MUNICIPAL AIRPORT At the regular meeting of February 25, 1992, the Bakersfield Airpark Advisory Committee voted to request funding for Strategic/Total Quality Management (TQM) Planning and Training for ~ey personnel involved with the management and 91anning of Bakersfield Municipal Airport. The request for funding is based on the need to chart the future direction of the airport now that cons=ruction and rebuilding of the airport is nearly complete. The BAAC is suggesting a dialogue between City Council, the BAAC, City Management, personnel and ~ir~ort users, in order to come to a common understanding of the needs and future uses of the air~ort as envisioned by those involved with it. A program designed to concentrate on the "what" and the "how" would allow for a balanced approach insuring the well being and vitality of the airpor~ for the future. The BAAC recommends a two-step approach to achieve tha~ goal, namely a strategic planning approach to ascertain "what" the role of =he airport is and a total quality management (TQM) approach to establish "how" that role is executed. If funding is approved, a suggested make-up of the group would include several members of the City Council, the City Manager, Public Works Director, Finance Director, Economic Development Director, BAAC, Airport Marketing Committee, several members of the airport users group and perhaps several key business and industry leaders. Required funding for one training seminar and follow-up are estimated to cost approximately $7500 and the BAAC respectfully requests that Council authorize staff to include this amount in the 1992-93 fiscal year budget. Additional background information on Strategic and TQM planning is attached for your review. /n~To Attach. REPORT ON STRATEGIC & TOTAL QUALITY MANAGEMENT in July of 1986, She City of Bakersfield embarked Upon a strategic plannin~ process, followed by two updates in February and August of 1987 -~spectively. This effort was later abandoned for lack of continuity and relevance to the daily operational requirements of the City. The reasons appear rooted in the very nature of the strategic piannin~ process. While strategic planning provides a planning tool with respect to "what" the role of the City should be relative to ever chaq~ing needs, it places little or no value on "how" this must be achieved. Strategic Plannin~ is..."to 'anticipate the future, envision what the organization must become in order to effectively cope with that future, and make plans for moving the department from what it is to what it needs to become..." (City of Bakersfield, Development Services Department, Strategic Plan, 1986, pa~e 1) As a planning process it does 3ust that, plan. However, a plan or a process must also be executed if it is to succeed. ' The BAAC.therefore suggests that the Strategic Planning process be modified to include Total Quality Management(TQM). In a service oriented environment such as City government, and in the case of this report, the Bakersfield Municipa1 Airport, TQM becomes the vehicle which allows the planning and strategy to be properly executed. It provides the continuity which is inherently lacking in the strategic planning, process. TQM can best be described as a strategy fo'r improving performance at every level, reducing waste, increasing · productivity and providing quality service. Its focus is on the customer and quality service to the customer is the number one priority. With respect to the airport, customers may be pilots and aircraft owners, developers, commercial tenants,.industrial customers, residents near the airport and anyone who has interaction with the airport.as a result of the airport's existence. Thatj would also include those individuals involi~ed.in the management of the facility so that information flowing up or down or laterally is relevant, precise and' consistent within the "TQM Team" framework. By combining a planning process with a vehicle for maximizin~ the ~oals and objectives of the City with respect to the airport, the future economic vitality and viability of the -airport and the City's continued pro-active involvement in it will be ensured. Outside Facilitators Maximize necessm;y to move the organization toward the the Stratego planning Process future envisioned. · You may be feeling pressure to develop a strategic The role of the outside facilitator plan for your firm but are riot sure how to begin or in the participatory, process even what a strategic plan really is. Between ctierit. Adequate preparation is essential to a Successful service demands, pressing personnel issues, and strategic planning meeting.. Often, however, firm bottom-line concerns, you may not have the time to professionals are too busy with client service to consider how to develop such a plan. adequately focus on obtaining agenda input, pre- The. following comments define strategic plan- paring information packages, and arranging the ning and the resulting benefits, discuss the impor- meeting facilities. It is best that an outside facili- tance of the planning process, and, more critically, tarot, with input from the managing partner, guide emphasize why the use of an outside facilitator is an and arrange the planning function. essential firs_.', step to the successful completion of a ,, plan for your firm's future. Strategic planning decreed. Strategic planning is ~oUtside £acilitator can the process of envisioning the/uture so az to appro- priately position an organization in the market- provide perspective and place, thus maximizing opportunities for g-rowth, chaIIenge traditions. profits, and, ultimately, survival. S trategic planning ~ typically has a three-to-five-year time horizon. The plan, once developed, however, must be revisited at least annually to reassess opportunities and threats An outside facilitator provides an independent in a rapidly changing environment, analysis of the rinancial data in terms of historical BeneFits o£ strategic planning. Studies show that tren~ and in comparison with the performance of organizations that set goals, strategies,, and dead- similar-size rims, thus setting the stage for discus- lines consistently outperform those entities that do sion. The facilitator can also objectively analyze the not. Strategic planning etemenis of fee structure and rirm profitability. [] Establishes direction by focusing on oppor-' De=ending on their leadership styles, managing tunities rather than reacting to crises, partr~ers in the role of discussion leader may, know- ~ Focuses action so that energy is expendedlon inztv or unknowingly, impose their views on the those .activities leading to the attainment of ou~ome, or refrain altogether from participating in goals set. open discussion. The use of an outside facilitator, on f~ Increases motivation by giving people ihe the other-hand, allows all firm participants to opportunity: to succeed in areas of importance express their views freely. to the organization. A facilitator's objectivity is the opposite of a [] Improves communication through the devet0p- stakeholder's partiality to established procedures ment and implementation of the pian. and =hilosophies. An outsider can challenge tradi- [2] Fosters creativity as the Planning process trig- tions' in a nont~Ua'eatening manner du~ to oresumed gets new ideas. , ignorance of ' the way things are done around here." The participative process? Although there are Sev- This opens the door to different approaches. erat ways to engage in strategic planning, par- People in an organization are often too harsh on ticipative planning is the optimum method due to themselves when considering the .entity's internal its emphasis on the process. The participative p, ro- strengths and weaknesses, or alternatively, they are cess requires the commitment by all 'stakeholders' sometimes too. content with the status quo. An out- (that is, the owners and members of the senior man- side facilitator can provide perspective in identify- agement team) to a two-to-three-day, off-site, unin- lng strengths and weaknesses, question beliefs, and terrupted, planning session. Significant pre-session encourage discussion. data gathering and ptanning are required to max- In addition, an outside facilitator can encourage imize the value o£ the discussions. ' junior firm members to participate and can diplo- The value of the participative process is thatl all matically curtail repetitious discussion by senior viewpoints are discussed. This discussion even- membem so that all views are heard. This keeps the tually results in a consensus of the future of the process on track and eventually promotes sufficient organization. The participation Of all stakeholders resolution of the issues. A member of the rirm lead- ensures credibility of the plan and commitment to lng the discussion might have more di~culty with the implementation of the goals and strategies this process. Practicing CPA, October 1991 The point to keep in mind is that strategic plan- · ning is a process rather than a destination. Par- ticipation in consensus-building results in commit- ment, not only to a vision of the future but also to the goals and strategies.necess, ary to move that vision toward reality. The benefit of using an outside facili- tator is that he or she can assist you in beginning the process, and then ensure that the process continues to move forward to successful completion of a stra- t'egic plan for your firm. [] --by Louis $. Barbieh, CPA, Barbich. £ongcrier, HooFer & King, 333 P,?lmer Dr/ye, Suite 200, P.O. Box 11171, Bakersfield, California 93389, tel. (805) 397-1171, and: Sheryl L. Barbich. Barbich Associates, 5555 California Avenue, Suite 302, Bakersfield, Cal- ifornia 93389, tel. (805) 327-8634 ' Do .o Circular Letter Date: Z~.].10,1~ · Reference No.: California Public Employee~' Reflr~ent Sy~em P.O. ~x ~ Circular ~cmmento. CA 94~ ~er No.: 310-~69 (916) ~~ Distribution: Tel~ommuni~fions Device for the Deaf~o VOice (916) ~4n Special: TO: ...READ OF ALL CONTRACTING AGENCIES AND SCHOOL EMPLOYERS SUBJECT': INFLATED RETIREMENT BENEFITS Recently, PERShas become aware that many contracting agencies have been entering into labor agreements with individuals and groups, that provide inflated pension benefits for employees~ whose retirements are imminent.. The most prevalent method of inflating. benefits is' to increase ~he compensation reported to PERS in the final year(s) before retirement. In most instances, the increased compensation reported to PERS is not in compliance with the Public Employees' Retirement Law (PERL). In some cases, this has occurred because of a .misunderstanding. of law; 'in other cases, there is evidence of possible criminal fraud and collusion. The PERL does not restrict the employer from agreeing to' provide the employee with any form of compensation. It does, however, define what is ,'repOrtable" compensation for the purpose of calculating PERS benefits, and it is this latter issue that this letter addresses. COMPENSATION REPORTABLE TO PERS .Government Code (G.C.) section 20022 of the PERL defines what is and is not regarded as "compensation" reportable to PERS for retirement Purposes. This section.has been amended numerous times over the past several years,.primarily for clarification purposes. Today, this section enumerates several forms of reportable/non- reportable compensation. The legislature, realizing that it was impossibleto include every form of compensation in the law, gave the PERS BOard express authority to determine what compensation is to be included or excluded in the calculation of retirement benefits. [Goverrument Code Sections 20022(a)(12) and 2ooz (b) 3. PERS--ADM---69 (Re~. 8/86) · 'NFL~TED RET~rREHENT BENEFITS PA~E ~ ZNCLUDABLE,COMPENSATION In determining what is and is not rePo~cable~ PERSwill look beyond ~he name of a par~icular form of compensation and apply the law accordingly. Tho fundamental intent of 20022(a) is to include.,as reportable oompensation: 0 · any payment for services rendered during a normal work schedule (base pay) including any deductions such as deferred compensation deductions, health care premiums, etc. EXCLUDABLE COMPENSATION The fundamental intent of 20022(b) is to exclude from repoz~able compensation= · any payment which is in excess of compensation earned during normal work schedule (such as overtime, · any employer payments towards benefits such as (health care, dental care, · any additional payments directly connected to termination and/or retirement~ · any payments in lieu of benefits (such as cafeteria plans)~ TYPES OF COMPENSATION MOST'FREQUENTLY REPORTED IN ERROR The items of compensation =ha= appear to be erroneously reported the most frequently are: · payments resulting from the conversion of a benefit to salary. For example, if an employer provides medical insurance and contributes in par~ or in whole for the premium, such premium cannot be reported as compensation for the member. If a member elects not to have the benefit, then any additional compensation, that may result cannot be reported as compensation to PERS. For example, if a flexible benefitplan provides that the employee may choose between fully-paid medical coverage of $400 per month or waive the insurance and take the $400 in. additional compensation, such compensation cannot be reported. to PERS. This 'prohibition is stated in. G.C. section 20022(b)(1) and (14) and by Board interpretation (See Attachment). INFLATED RETIREMENT BENEFITS PAGE 3 · emslove~ p'a~nents of member contributions which are credited to the member,s account. . These payments cannot be paid by ~he employer and then included, in ~he compensation reported to PERS. Such action is in violation of G.C. Section 20022(b)(6). · payments for unused sick leave, vacation, -annual leave, compensating time off,! management leave, or any other leave program. Government .Code section. 20022(b)(7) and Board interpretation (Attachment) prohibit such conversions in either lump sum or ~hrough periodic payments. · ~ final settlement pay. This highly misused 'item is clearly defined in G.C~ section 20022(b) as "any pay in excess of salary granted or awarded in connection with a separation from · ~L~_~Lt~L~, including severance pay, bonuses, retroactive adjustments to. salary,~ payment of~ the value of retroactive adjustment to benefits, and any other grant or award ~hat the board may determine..." · special compensation for performing additiOnal services outside regular duties. This includes standby pay, call-back pay, automobile allowance, and bonuses for'services outside normal dut'ies [G.C. Section 20022(b)(10)]. ~ EFFECT OF ERRONEOUS REPORTING A public agency which contracts with PERS for retirement benefits must comply with the prowls.ions of the PERL (G.C. section 20493). The PERL supersedes all other law, city or county/district ordinances, resolutions, agreements, memoranda of understanding, policies, etc., regarding retirement issues. Failure to comply with the PERL and the Board's interpretation of the PERL could result in the termination o:f your PERS contract. PERS actuaries estimate that for each one dollar increase in monthly benefits in excess of the actuarial assumptions, taxpayers will pay as much as one hUndred fifty dollars ($150.00) to fund that extra benefit. For example, if an employer/employee arrangement provides $200 per month in- excess of the actuarial- assumptions, the unfunded amount would be $30,000..~In one case, reviewed by PERS, the unfunded liability was projected by the actuaries to be nearly $'650,000. In another instance, t_he estimated, unfunded liability was nearly $1,000,00.0. I~PL~T~D ;.BTZ]~.J~' BBb'BPZT8  e Pub~ic'EmplOyees, Retirement System was established to provide sability, retirement and death benefits to its members in an actuariall¥ sound manner. Fur~cher, federal law re ares members be treated without discrim;--~: ..... qu' all are made that ~,,a~un. when special agreements provide increased benefits'for an individual or a Selected group, it is contrary to ~he very principleson which this Sys=em was es=ablished and which protec= it from the loss of tax ~alif~cat~on~ HOW ~ OBTAIN A RULING PROM As.pa~ of our increasing sc~!ny our field audits ~o ensure c--~i .... ~==, ~.are Increasing es=ablished a new unit ~o Prov~'~%'~L~ o ~. a~dition, we have - g n =ne repo~abili~ c~mpensa=~on. If ~ou'are unsure of the r----~-~-,~.- - ~ of o~. compensatLon, or have ~ emplover/em~- ......... Y rem enn~ces retirement benefits ~,. ~_~j_~*~x-~_ a~re~ent tha~ reported to PERS Xn the ~L~al yearCs). ......... m~ease include · your re~es= any. documen=a=ion =ha= clearly defines ~he item of compensation or issues that are of concern. This doc~en~a=ion should include~ bu~ no= be limi=ed ~o,.memoranda of understanding, board resolu=ions and minu=es, examples of how and when ~he~fo~of compensation is paid, e=c. PERS Will =espond to your in~i~ wri=ing. We-will only respond to written re~es~s, and will no= be bound by any oral co~unica~ion of any sot=. Dale ~M. ~anson' Chief Executive 'Office BH: bo= At~:achment REP~OMP2. DOC '~',~t~IPt-OYEES' RETIREMENT SYSTEM aox 1953 (1416 - 9tll Street) ~ramento, CA 95809 Date: ele~none: (916) 445-6476 (445-8155 - TDD .for Hearing Impaired) July 27, 1984 CIRCULAR BOARD J.~ERS, t.~NAGEHENT STAFF, iSTATE AGENCIES, LETTER PUBLIC AGENCIES, STATE CO~.n~GES AND [~I%T.3~ITIES, NUMBER: 100-04 3 COUNTY SUPE~/NTE~D~ OF SCHOOL~: I, II, IV, VI, X & XII CAFETERIA $~'"ZLE, BENEFIT PLANS The PERS Board of Aclministratiom, at its ~y 15 Meeting in Sacramento, approved a staff reco~endation that" ,cafeteria, s~yle benefit plans are no= to be considered compensation for retirement purposes". The ~oard further delegated to the PERS Executive Officer or his designee the authority toma~e ~ch determinations consistent with thi: general policy~ Cafeteria style plans, or other forms of "Management Benefi't Plans", "Elective Benefit Plans"i "Flexible Spending Accounts", etc. usually gave -employees an "allowance" which could be used to select various benefits which may include: health insurance, dental insurance, life insurance, paid professional organization membership, membership fees for a structured physical Program, eye care, an allowance .to cover job related expenses, cash payment for any unused amount, or a number of other forms of benefits. It is important to note, however, that when any portion of a "cafeteria" plan~includes forms of compensation defined specifically as compensation under the Retirement Law (Government Code Section 20022(a) ), that particular portion must.be reported. As an example; if a plan includes a number of the ' benefi= options shown above plus the payment of a uniform allowance as an option, the amount paid as a uniform allowance would be reportable to P~RS but the remainder of the plan would not. If any agency is unclear regarding the repot[ability of any plan they may have, a determination request should be directed to Bob Walton, Chief, Accoun:ing Division at the address shown above or call (916) 445-6476. ACCOUNTING DIVISION ADMINISTRATIVE REPORT ~eeting Date: April 22, 1992 Agenda Section: Consent Calendar Agenda Item: TO: Honorable Mayor. and councilmembers FROM: Economic/Community Development ADDroved DATE: Apri! 14, 1'992 Department Head City Manager _ SUBJECT: Communication from Jake Wager,.Economic Development Director concerning the 1992-93 Community Development Block Grant Application. RECOMMENDATION: Receive and refer to Budge~ and Finance Committee. BACKGROUND: Annually the City must submit an application for Community Development Block Grant (CDBG) Entitlement funds. The application (a Federal submission with certification) must be approved by the CityCouncil before it is submitted to the U. S. Department of Housing and Urban Development (HUD) for final approval and funding. These funds are to be used for proj. ects that will benefit the low and moderate income population of the City,of Bakersfield. Attached is a description of the funding categories, fiscal year and timeline. MEMORANDUM April 13, 1992 TO: D~r,R HAWLEY, CITY MANAGER FROM: JAKE WAGER, ECONOMIC DEVELOPMENT DIRECTOR SUBJECT: TIMELINE AND BUDGET FOR FY 1992-93 CDBG APPLICATI(~ The Fiscal Year '1992-93 CDBG .entitlement is $1,483,000. In addition, approximately $178,300 in program income will .be generated ~for next year. The total amount of CDBG funds anticipated for next fiscal year is $1,662,300. The CDBG application will reflect, funding for the following categories: Administration, housing rehabilitation,.neighborhood, revitalization, and capital improvement projects. Specific projects to be funded will be recommended by staff at a later date with review and Comment by the Budget and Finance Committee. The deadline for HUD of next-year's application is May 30, 1991. The tentative timeframe for processing the application which requires review~ comment and action by the City Council is outlined as follows: Date Action 4-22-92 Referral to Budget and Finance Committee. 5-04-92 Budget and Finance Reviews/Approves Application. 5-05-92 Publish CDBG Proposed Statement 'of Objectives for FY1991-92-(Application) in Newspapers (10 day minimum citizen comment period). 5-20-92 City council approved Application. 5-21-92 Make copies available for public and submit to HUD. CITY OF BAKERSFIELD SUMMARY 1991 CDB~APPLICATION PROJECTED USE OF FUNDS (FINAL STATEMENT) Fund 116 ENTITLEMENT $1,483,000 PROGRAM INCOME 179~'300 TOTAL FUNDS FOR 92-93 $1~662r300 ADMINISTRATION 651 Administration & Planning $332r460 HOUSING REHABILITATION-652 Direct Delivery Cost $193,536 Housing Rehabilitation Loans $317,835 Direct ~ousing Grants for Handicap Accessibility $ 31,574 Home Paint Program $ 5,000 1st Time Home Buyers Mortgage Assistance Program - $100r000 Sub-Program Total $647,945 NEIGHBORHOOD R~;ITALIZATION 653 Direct Delivery Cost $178,843 Neighborhood Improvement program (Phase I~II) $ 50,000 Incentives to-property owners to revitalize portions of neighborhoods within various City census tracts that are predominantly low to moderate income. ~ Fair Housing $ 70,000 Continuation and promotion of fair housing and services within the. City of Bakersfield. Commercial Facade Grant Program $ 15,000 Grants given to businesses along targeted commercial corridors< to renovate their "store fronts"' Housing Development Assistance Program $ 58,851~ Funds to assist eligible private and non-profit developers for acquisition, construction, or rehabilitation of permanent or transitional housing for qualified residents. Economic Incentive Area Program $ 12,000 Expansion of job training marketing and ~ management of the Incentive Program Area (southeast metro Bakersfield) in conjunction with the County of Kern. Graffiti Removal Program $ 45,000 Removal of graffiti within City CDBG targeted areas. Sub-Program Total $429'f695 CAP~ITAL IMPROVEMENT PROGRAMS (CIP/ 765 Castro Lane Curb and Gutter Project $ 13,200 Infill curb and gutter between Lum Avenue and Valley Plaza and from the Wilson Road intersection to 160' to the north on Castro Lane. Architectural Barrier RemoVal Program $ 86,500 Removal of.architectural barriers within various portions of the City for handicap accessibility. Union Avenue Landscape Median 'Project $ 37,500 Installation of approximately 23,068 sq. ft. of landscaping in the street medians of Union Avenue from 20th Street to Brundage Lane for a total e~timated cost of $75,000 (non-city funds are 50%' of the total cost -$37,500). Bakersfield Homeless Shelter Roof Replacement $ 15,000 Removal and replacement of existing roof panels for the men's sleeping area to rectif~ an existing roof leak. Reconstruction to include new insulation, steel fabrication, and re-routing of electrical conduit. Bakersfield Sr.'Citizen Center Improvement $ 100,000 Construction of a storage/classroom building at 530 6th Street. This~is the second component of the Phase III Improvement Project. The first component consisted of off-site infrastructure improvements including some on-site preparations. · Sub-Program Total ~ 252f200 Total Ail PrOgrams $1,662,300 Note: Except for the Union Avenue Landscape Median Project, CIP Projects have direct delivery costs included in their budgets. uS, 0!/?2 (Formerly Community ~Alcohol & Drug Counseling Center) 1313 CMifornia Avenue · Bakersfield, CA 93304 (805) 324-4756 ' Irma Carson Director April 23, 1992 To: The. Honorable Councilman McDermott, City Council Person, Chair of the Budget ~nd Finance Committee Re: Community Development Block Grant Application 1992-93 Dear Sir, .On behalf of the Board of Director of Ebony Counseling Center, We are requesting during your~review of CDBG Grant Applications that Ebony Counseling Center Phase' Ii Grant be given serious consideration based on the critical need, of services to .be provided. We Would appreciate an opportunityto come before your committee to share our concerns. IRMA CARSON Executive Director ~ IC/cag r~ ~o REC'D & PLACED ON FILE AT COUNCIl. MEETING OF · Bakersfield 1130 1 7th Slreel Bakersfield, CA 93301 805-323-6072 April '21, 1992 Dal-e Hawley, City Manager City of Bakersfield 1501Truxtun Ave. Bakersfield, CA 93301 Dear Mr. Hawley: In a meeting today at the Bakersfield YWCA, at issue was our application for COMMUNITY.DEVELOPMENT BLOCK GRANT (CDBG) Assistance filed last November requesting $179,000.00 fop the (1) replacement of a badly compromised roof, (2) replacement of mechanicals on the roof (installed 1968), and renovation .and handicap accessibility modification of two restrooms currently closed and one in danger of being closed due to water damage. The meeting and subsequent tour of our facility, demonstrated the immediacy and importance of our need for this assistance. Representing the city of Bakersfield in this meeting was Jake Wager, Director of Economic and Community Development and George Gonzales, Community Development Coordinator. Also present at this meeting were Linda Phillips, President, YWCA; Rabbi Steven Peskind, Chair, Youth & Recreation Allocations Committee, United Way; Conni Brunni, Bakersfield City Council, Randi Battaglia, Associate Director, United Way, and myself, Trish Sanderson, Executive Director, YWCA. Mr. Wager advised us that his department has concluded that the project may qualify for CDBG funds (under criteria other than the Iow-moderate national objective) from a possible $83,000. in fiscal year 1991-92 Project Savings funds. Since this amount would only.fund one of the three components of our request, the roof replacement is the YWCA's main priority. Without it, dangerous water damage will continue unchecked. Further, given the urgency of our need, if other funds become~ available from 1992-93:Project Savings and/or project fall- out, the YWCA would ask to be cbnsidered for those monies at that time. A Un,ted WaY Agency YVV~___=A ,, Bakersfield 1130 17th Street Bakersfield, CA 93301 8O5-323-6072 On behalf of the YWCA Board of Directors, Staff, Members and the 65,000 citizens who used our community service facility last year, let me thank the Community Development Staff for cooperation in addressing our crisis. Our appreciation also to the City Council for considering our immediate need. The YWCA provides over 500 programs and services for the community yearly; it would be criminal if a decaying roof and serious water damage brought our 45 years of service in Bakersfield to an end. A partial list of community leaders who support the YWCA is attached. f Sincerely, E~ecut ire D'i. rect or Un]ted Way Agency Bakersfield April 21, 1992 113017thStreel Bakersfield, CA 93301 The f°llowin§ community leaders support Community 80~323~072 Block Grant funds for the Y.W.C.A.. of Bakersfield for new roof/restroom renovations/handicap accessibility: (1) Ray Dezember, Board of Directors, Wells Fargo Bank The Bakersfield Californian 861-4713 <2) Rollie Moore, United Way Allocations Committee 834~ 1928 <3) Roy Ashburn, Supervisor, .Kern County 861-2171 (4) Conni..rBrunni, Bakersfield City Council 324-8156~ (5) Rabbi Ste~en Peskind, Chair, Youth/Recreational Services United Way Allocations 322-7607 (6) Helen Frankel, Coroner, Kern County 861-2606 (7) C. Larry Cart, PreSident, Memorial Hospital 327-1792 (8) Jerry Beggs, Director, United Way of Kern County ' & Randi Battaglia, Associate Director, United Way , ' 325-9423 (9) Carola Rupert Enriquez, Director, Kern County Museum 861-213.0 (10) Arnold Johansen, President & CEO, HM Holloway, Inc. 399-6114 (11) Rosanna Westmoreland, Area Director of Public Affairs, Kaiser Permanent e 334-2039 (12) Dr. Dennis Guseman, Professor of Marketing, CSUB 664-2316 (13) Jim Kruse, Community Relations, Kernvew Memorial Center 327-7621 Ext. '275 (14) Bernard J. Herman, President, Mercy Hospital A Un~ted Way Agency Bakemfleld ................ May 4,. 1992 ? BakersfieM. CA 93~1 ~323-6072 MEMO: TO: Bakersfield City Council, Budget and Finance Committee FROM:YWCA of Bakersfield Board of Directors and Trish Sanderson, YWCA Executive Director RE: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Application The YWCA of Bakersfield has served the community since its local charter in 1946. ~In 1968, a two story building was constructed on the current downtown site of 1130 17th St. In 1988, an Advisory Board and Strategic Planning committee, both comprised of community leaders. At that time, one of the major problems facing the YWCA was a badly compromised roof upon which attempts to repair by patching had been unsuccessful. The YWCA is a United Way agency, receiving around one-third of its annual budget from the United Way organization, those funds designated for program and operating expenses (not capital improvement or repair). In its forty-six years of operation, the YWCA has always generated the other two-thirds of its budget and necessary monies for capital improvements, such as'the completed sidewalk project in 1976, without government assistance. However, the extent or'the damage to the roof and now to the interior, especially three restrooms, two of which are closed due to-dangerous Water damage, plus the replacement of the mechanicals on the roof, made it C~ear that to effect repairs and comply with handicap accessibility mandates, CDBG funds needed to be sought. · In 1990, the P~ocess of compiling the 200+ page application that was filed in November 1991 began. After meeting with the Community Development Department several times, the YWCA began the painstaking task of acquiring statistical data on our users and securing-contractors quotes for the work. Eventually, we had the-building check for asbestos (none was found) and secured architects of record for the final specifications that went into our application. At one Community Development Meeting, George Gonzales held the YWCA up as an exampl.e of doing ali the necessary groundwork for' this type of application.' Age~ Bakersfield 1130 17th Streel ~ BakersfieM. ~ 93301 ~323-.6072 In 1991, some sixty-five thousand people used our facility for classes, meetings, seminars, health checks, social gatherings, etc. We provide programs'which meet the most important assessed needs of this .communit¥...child cape, youth at risk, disabled op handicapped services, services for seniors, and programs for low to moderate income. We also provides pro§rams of general interest and recreation to the community, using program fees and revenues to support programs to the at need population. The YWCA is a center of activity and community service in the heart of downtown. We work with other nonprofit agencies to provide needed services that government cannot because, of shrinking budgets and understaffed departments. Two programs that are currently in development time: RESOURCE ASSISTANCE CENTER for Individuals and Families "Your First Call For Help". With a target opening date of January 1992, this center will handle incoming inquiries for all needed services, and will 'refer those in crisis to.the 358 helping agencies in Kern County. In addition to screening calls and referring clients to those agencies~ important statistical data will be generated which will'aid city, county, state and federal agencies in making funding allocations based on established service needs. United Way stands firmly behind this p~oject, as they are currently handling between one and two: thousand of these types of calls per month. Furtherl, an Advisory Panel of seventy-five community leaders is working on this project to make it a reality. CREATIVE VISITATION. is a program in which the. YWCA will provide trained personnel to..provide court ordered supervision between parents and children separated by' court order. Additionally, the YWCA will provide a safe and neutral, supervised location for site exchange fop parents exercising visitation rights who cannot interact with the other parent. There is at current no mechanism in place for this type of program in city or county. The YWCA provides over 588 programs and services for the community yearly. If the repairs to the building 'are not effected soon, the organization, s ability to continue will be seriously in question. We need the help of the city council and the financial', assistance that could be provided through these CDBG funds. AU~t~y ' ' Ag~y MEMORANDUM MAY 4, 1992 TO: J. DALE HAWLEY, CITY MANAGER FROM: GREGORY J. KLIMKO, FINANCE DIRECTOR SUBJECT: INDUSTRIAL DEVELOPMENT BOND FEES The following is my recollection.of the events which transpired · concerning the issuance of Industrial Development Bonds and Fees as they relate to Memorial Hospital. In 1983 the hospital originally requested the City's assistance in the issuance of $20,000,000. An amendment to the Municipal Code Section .3.60 was enacted by Ordinance No. 2871 in September 1983 to accommodate this request. The City Attorney, Richard Oberholzer, negotiated a fee of .4% (4/10 of 1%) $80,000 to accommodate the issuance. Government Code allowed either an annual fee or a'one time fee up front. Subsequently, the hospital increased the issue to $25,000,000 and the fee was increased to $100,000. Later the hospital requested the issue be increased to $35,000,000. I became involved at this point and renegotiated the total.fee to $125,000 (.357%) due to the~ issue size. The bonds were dated December 1984 and were issued in early 1985 with a variable interest rate. Subsequently in 1989, the hospital remarketed the prior issue (converted from a variable to a fixed interest rate) and requested the issuance of an additional $20,000,000. The new bonds were issued in June 1989 and the City.received an $80,000 fee (J4%). Therefore, the City has sponsored a total of $55,000,000 Memorial Hospital Bond to date. krc MGJK .,45 C, Larry Cam President Boar¢l of DireCtors: Gordon K. Foster. Chairman Joel D. MocK. M.[~, Vice Chairman Edward H. Shuler. Secretary-Treasurer .~, Bakersfield Memorial Hospital Charles S, Asl~more, M.D. Rodger L Bick, M.D ACCI~DIIED BY THE JOINT COMMISSION ON ACCI~DITATION OF HI~ALTI.tC. ARE ORGANIZATIONS John M. Brock. Jr. C Larry Cart Mailing Address: RO. Box 1888 / Bakersfield, CA 93303-1888 Stephen D Hetper, M.D . · George E Martin 420 34th Street / Telephone (805) 327-1792 Thomas w. Smith March 30, 1992 Mr.'Kevin McDermott, Chairman Budget & Finance Committee City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Councilman McDermott: Bakersfield Memorial Hospital used the City of Bakersfield as an issuer for Hospital Revenue Bonds in 1984 and 1989. The fee assessed in 1984 was $140,000, or 4/10 of 1% of.the $35,000,000 issued. The City was selected at that time because our only other alternative was the California Health Facilities Financing Authority and it was the desire of our Board of Directors to work locally to the greatest extent possible. In 1989 the Hospital again used the City because a portion of that transaction involved the conversion of the 1984 City of Bakersfield IsSue along with a $20,000,000 new money issue. This transaction was combined and sold under a single prospectus. A fee of $80,000 waspaid for the new money issue. The Hospital is currently planning on issuing an additional $25,000,000 in Series 1992 Hospital Revenue Bonds. We would like to issue parity bonds under our existing Master Indenture which names the City of Bakersfield as the,issuer. We however now have available not only the State Authority, but also Joint Powers Authorities established by CSAC and ABAG.· All of the options levy considerably lower issuance fees than what is described as the City of Bakersfield fee. I have two problems with the City's proposed fee: (1) it is not competitive and, more importantly, (2) it is not, consistent with the amount of work required of City staff. The City recently issued bonds for Congrecare and San Joaquin Convalescent Hospital. Both of these issues were considerably smaller, e.g., under $10,000,000, and thus generated much smaller fees. The amount of City Staff time expended was more than likely identical with.much larger issues. Mr. Kevin McDermott March 30, 1992 page Two Given that the City fees~ (for health facility issuers) are not competitive, it seems it would behoove the City to establish a fee schedule policy which declined as the amount of outstanding bonds for a single issuer increased. It seems that the following schedule' would provide the opportunity for the City to more equitably recover its costs as well as result in additional City fees~ which will otherwise be spent in other jurisdictions: Outstandinq Bonds 5/10% " 10,000,000 4/10% 20,000,000 3/10% 30,000,000 2/10% 50,000,000 and over Please call if you need additional information. Sincerely, Paul A. Jerdin Senior Vice President Financial serVices SW COUNCILMEMBER - SIXTH WARD ~'--- ~ __~-~. April 2, 1992 Mr. Paul A. Jerdin Senior Vice President Financial Services Bakersfield Memorial Hospital · P.O. Box 1888 Bakersfield, CA 93303-1888 Dear Mr. Jerdin: Thank you for your letter regarding the issuance of ~Hospital Revenue Bonds. I have requested that this matter be referred to the Budget and Finance Committee of the Council for further review and discussion. City staff will keep you informed as to any actions which may be considered by the committee and ultimately the City COuncil. If you have any queStions, please contact John W. Stinson, Assistant to the Ci~ Manager, at 326~3751. Sincerely, Kevin McDermott Budget and Finance Committee Chair KM:jp 1501 TRUXTUN AVENUE · BAKERSFIELD, CALIFORNIA 93301 · {805) 326.3767. C, Larry Cart. President Board of. Directors: Gordon K. Foster, Chairman Joel D. Mack, M.D., Vice Chairman Edward H. Shuler, Secretary-Treasurer Bakersfield Memorial HOspital Charles S. Ashmore. M.D. Rodger L. Bick, M.D ACCREDITED BY THE JOINT COMMISSION ON ACCREDITATION OF HEALTHCARE ORGANIZATIONS John M. Brock, Jr. C Larry Carr Mailing Address: P.O. Box 1888 / Bakersfield, CA 93303-1888 Stephen D. Helper, M.D · '. · ~. George E Martin 420 34th Street / Telephone (805) 327-1792. Thomas W. Smith ~April 7, 1992 Kevin McDermott, Chairman Budget and Finance Committee v City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Councilman McDermott: I have attached a listing ,.of what I understand the fees t° be for bond issuing agencies other than the City ~of Bakersfield. It is important to understand that bond issues are frequently redeemed prior to maturity because of changes in interest rates. Therefore, the continuing annual fees associated with the competing agencies ought .to be discounted by some factor. If you .need any additional informatiOn, I Would be happy to either obtain it for you or tell you what I know about it. Sincerely, Paul A. Jerdin Senior Vice President Financial Services Enclosure BOND~ ISSUES COMPARATIVE FEES ISsuer Initial Fees CHFFA $500 plus 1/20 of 1% of par ABAG 1/20 of 1% of par CSAC $32,500 plus 1/10 of 1% of par amount exceeding $15,000,000 City of Bakersfield 4/10 of 1% of par With'the excePtion of the City of Bakersfield, the other agencies issue bonds for a living and do quite well on the fees assessed. Kevin McDermott, Chair PatriCia $. DeMond Ken Peterson Staff: John W. Stinson AGENDA BUDGET AND FINANCE Monday, March 2, 1992 12:00 p.m. City Manager's ConferefiCe Room 1. CitY Acquisition of CDDA Property (Parking Lots) 2. Incentive Area Office [qo do-.~I ~ ~ $-~/-~z e_o,,.,~e-~ 3. Fire Disability and Retirement Actuary 4. Marks-Roos JPA Formation 5. 1991-92 Audit Contract 6. Fee Ordinance Update 7. ~bulance Rat~ (Dra~ Report) 8. Set Ne~ Meeting March 2, 1992 Dale Hawley ' City Manager ~ ~ '1501Truxtun Avenue Bakersfield, CA 93301 Dear Mr. Hawley: The Board of the Firemen's Disability and Retirement Fund is not satisfied with the recommendation of the Budget and Finance Committee that the members be afforded an increase in benefits from 2% to 3%. 'With the Actuarial Accrued Liability being $2,886,760.00, and the Valuation Assets being $3,276,237.00, an excess balance of $389,477.00 exists in the Firemen"s Disability and Retirement Fund, With this in mind, it would appear that it would be more appropriate that the members be afforded a larger increase, whether in a Cost of Living Adjustment or Cost of Benefits, or a combination of both. ~ Thank you for your Consideration. Sincerely,' Robert S. Paddock ,, Board of Trustees Firemen's Disability and Retirement Fund 5:COLA February 28, 1992 Honorable Mayor and Members of the City Council City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Honorable Mayor and Members of the City Council, In previous action' the City Council had graciously consented to a 90 day extension of the lease for the Incentive Area Office. Your request to the Community Advisory Council was to examine. the benefits of retaining that office and to also examine possible alternate uses of the funds now committed to the Incentive Area office lease. Due to'pressing business requirements, the Chairman of our Outreach & Promotion Committee has not been able to devote the time necessary for a through examination of this issue. We would like to apologize to the City Council for our inability to address the matter within the original time frame provided to us. We are now requesting your indulgence in considering an additional 90 day extension commencing April 1, 1992 and concluding on June 30, 1992. Please be assured we will give this matter our most serious attention. Your patience and consideration in this matter is appreciated. Sincerely, Pete Parra Chairman Community Advisory Council dlt:cac InceArea. lse .... M E M O R A'N D U M :,.- :,!~<i FEB 3 ''~ 1992 TO. .JOHN STINSON, ASSISTANT TO CI .T~.. ~GER · :,:~:?:-.::;?..,:-,.: .... FROM: 6REGORY J. KLIMKO, FINANCE'DIRECTO~::iS¢.~;.i'' In 1991 a Marks'-Roos Bond Pool workshop presentatt0n¢:b~fO~,~the:,.:':.: .:.-'. City Council.' provided a basic outline" and.~:~!the:¢?advan~agess~of:'~:,,:::?',?" financing, .' a ' Joint pOwers Authority . (JPA)'Si}!:w0uld:i:n~{}t°'~be:~:AI':I:I'-', ::.--.' and the':. · ,. One~ .would.'..'be.--the ·.Clt¥ · District: Development: Agency' (CDDA) . COrporat, ton~ {PFC)-:~. which has ' Constructton.~:'and, :.?equipment ' '~. Certificates of. Parti.¢ipation {Cop's') ~.~. P a ,; th : - - ' ":< le se::: c ts'.:on .the March 2 Committee. · . .' '"~ ~ .... ' '..u~,:-~. ' ..... ~ ( .-.: ,,.~ , .~,.- . ¢~ ~..... . )..~ ~;" .~:: :._:, . ,:".. ~ .. '~ ,..: ... -7~ : .:'.: .' , .... .' . BROWN, WAITS & ARMSTRONG An~l M. Wai~, CPA Accountancy Corporation Burton H. Ar~g. CPA Jer~ ~1. CPA a~n P. R~. CPA Ce~lfled ~llc Acc°un~n~ nmr~J. Pau~.CPA 4100 Truxtun Avenue, Suite 200 Bakersfield, California 93309 Lynn R. Kr~t~, O~A (805) 324-4971 L~ ~. ~, CPA FAX: (805) 324-4997 ~[~¢OL OLP~- Febma~ 17, 1992 Honorable City Cou~ncii City of Bakersfield c/o Mr. Gil Rojas, Assistant Finance Director 1501 Truxtun Avenue Bakersfield,' CA 93301 Gentlemen: Proposition 111 (Section 1.5 of Article XIIIB) requires that the annual appropriatiofis limit calculation be reviewed as part of the annual financial audit. We are therefore, proposing our services for the following agreed-upon procedures. · We will review the computation of the Article XIIIB apPropriation limit, as prepared by the City's internal auditor from the worksheets contained in the League of California Cities "Uniform Guidelines" issued March, 1991. · We will perform'the review procedures recommended in the League of-California Cities "Uniform Guidelines". · We will issue an "agreed-upon procedures" report to the City. An agreed-uPon procedures engagement is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the statements taken as a whole. Accordingly, we will not express such an opinion. The review will be made for the purpose of expressing limited assurance that nothing came to our attention .that caused us to believe that the .appropriations limit was not computed in accordance with Article XIIIB of th9 California Constitution. Our fee for these agreed-upon procedures is estimated to be $500. If you agree with the foregoing, please indicate your acceptance by signing below and returning a copy of this agreement to us. If you have any questions regarding this proposal, please contact Burt Armstrong. MEMBER of The American Institute'of Certified Public Accountants and Th® California .S~x:iety of Certified Public Accountantl City of Bakersfield Page Two _. February 17' 1992 Thank You for considering the services of Brown, Waits and Armstrong. Very truly yours, BROWN, WAITS & ARMSTRONG ACCOUNTANCY CORPORATION By: Burton H. st BHA:tld BROWN, WAITS & ] RMSTRONG ~ACC~NTANCY ~ ~- ~. ~ Accountancy Corporation Bu~ H. ArC.g, CPA r ~n p. n~. C~A Ce~lfled ~ilc Accoun~n~ A~r~ & PauM~. CPA 4 I00 Truxtun Avenue, Suite 200 Bakersfield, California 93309 Lynn R. Kr~. CPA (805) 324-4971 L~E. E~t. CPA FAX: (805) 324-4997 February 17, 1992 To the Honorable Mayor and Members of the City'Council City of Bakersfield, California We appreciate the opportunity of providing audit services to the City of Bakersfield, Central District Development Agency and other component units of the City for the fiscal year ended June 30, 1991. The audit was performed so we cOuld issue a "comprehensive" opinion on the fairness of the combined and combining statements. To accomplish this task each fund was examined to insure that they were- free of material misstatement. This approach, which was requested by the Council, is more detailed than an "in relation to" type of statement. Assuming you found our services to be workmanlike and professional, we are taking this opportunity to propose audit services for the ensuing year ending June 30, 1992. These estimates assume that your Finance Department will be able to provide us with the audit support commensurate with efforts of this past year. The fees include our annual increase in our standard billing rates. The 1992 proposed increase of $6,560 is in line with the 1991 increase Of $5,390 especially in light of increased federal single, audit act requirements. Financial Statements Full Scope City of Bakersfield - Comprehensive Amaual Financial Report and Management Letter $35,000 Bakersfield Redevelopment Agency - Annual Financial Report 4,400 MEMBER of The American Institute of C~rtifled Public Accountants and The Caltfomla Society of Certified Public Accountant~ City of Bakersfield Page Two · February 17, 1992 Southeast Bakersfield Wastewater Treatment Facilities Consolidated Corporation - Annual Financial Report 1,700 Public Facilities Corp6ration - Annual Financial Report 1,600 Compliance Reports Single Audit 4,000 Redevelopment Agency 1,750 Wastewater Management Plan 1,500 Out-of-Pocket Expenses - Total .Maximum Fee $49.950 We look forward to your ~irection regarding the audit scope for the fiscal year ending June 30, 1992. Please indicate your acceptance by signing below and returning this letter to us. A duplicate copy is enclosed for your records. If you have any questions, please contact me. Very truly yours, BROwN, WAITS & ARMSTRONG ACCOUNTANCY CORPORATION · By: Burton H. Armstrong BHA:tld Enclosure .Audit Scope Approved By ° Date CITY OF BAKERSFIELD AUDIT FEE SUMMARY 1989-90 TO' 1991-92 Proposed Financial Statement 1991-92 1990-91 1989-90 City - Comprehensive Annual Financial Report $35,000 $30,000 $28,700 Redevelopment - Annual Financial Report 4,400 4,200 4,000 Southeast Bakersfield Wastewater Treat Facilities Consolidation Corporation-Annual Financial Report 1,700 1,600 1,500 Public Facilities Corporation - Annual Financial Report ~ 1,600 1,500 1,200' Compliance Reports Single Audit 4,000 3,090 3,000 Redevelopment Agency 1,750 1,500 1,200 Wastewater Management Plan 1,500 1,500 1,000 Transportation Development Act N/A N/A 1,500 Subtotal 49,950 43,390 42,100 Appropriation limit 500 500 N/A Total $50~450 $43~890 $'42~ 100 krc GR.8