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HomeMy WebLinkAbout07/10/1995' B A K E R S F I E L D Patricia J. DeMond, Chair Irma Carson Kevin McDermott Staff: Dolores Teubner AGENDA BUDGET AND FINANCE COMMITTEE Monday, July 10, 1995 12:15 p.m. City Manager's Conference Room Second Floor - City Hall, Suite 201 1501 Truxtun Avenue Bakersfield, CA 1. ROLL CALL 2. APPROVAL OF JUNE 2, 1995 MINUTES 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. ASSESSMENT DISTRICT DISCLOSURE NOTICE - Skousen 6. NEW BUSINESS A. COUNCIL AND EMPLOYEE TRAVEL - Waiters B. CONTRIBUTIONS TO OUTSIDE AGENCIES - Councilmember Carson C. CRITERIA FOR ESTABLISHMENT OF PUBLIC SWIMMING POOLS - Andersen 7. ADJOURNMENT DBT:rg FILE COPY B A K E R S F I E L D Al~Tandy, Ci~J~age, r,,,/- Patricia J. DeMond, Chair Staff: John W. Stin~ Irma Carson Kevin McDermo~ / AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Friday, June 2, 1995 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order 12:20 p.m. Present: Patricia J. DeMond, Chair; Councilmember Irma Carson; and Councilmember Kevin McDermott 2. APPROVAL OF APRIL 24, 1995 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None AGENDA SUMMARY REPORT ]~ ~'~ ~ ~ ~ BUDGET AND FINANCE COMMITTEE Friday, June 2, .1995 Page -2- 5. DEFERRED BUSINESS A. ASSESSMENT DISTRICT DISCLOSURE NOTICE It is the understanding of Councilmember DeMond that the Board of Realtors, escrow industry and builders will continue to work with staff and have a completed project available by approximately July 3, 1995, in time for the July 10, 1995 Budget and Finance Committee meeting. Issue continued until that time. B. SENIOR CENTER LEASE AGREEMENT Dolores Teubner gave a brief legislative history on the Senior Center leases (memo attached). In 1985, the City entered into two lease agreements (Agreement Nos. 85-48 and 85-49). One for the main facility, the other for the storage facility. Both leases are not to exceed a 55-year term. The second Agreement 85-49 for the storage facility is renewable on successive ten-year periods. The storage facility agreement allowed the Senior Center to sublease that property for income generation. In 1988, the City (Parks Division) entered into a sublease with the Senior Center for $15,972 per year for storage of park maintenance equipment. That lease has been renewed four times. Three times for two-year periods; the last time it was renewed until June 30, 1995. As an additional note, the original lease for the main facility specifies that the City provide landscape maintenance services. It does not require that the City do building maintenance. The City does do some building maintenance of approximately $1,000 per year. With regard to the main building lease, at the end of 55 years, the property clearly belongs to the City with the constraints placed upon it by HUD (because it was purchased with CDBG funds in 1981). Alan Tandy commented about the "image" of this issue being controversial. Rather than giving the Senior Center grants, the City entered into these agreements to lease back property the City owned. Council, earlier, gave direction to staff to bring that issue to conclusion by, roughly, July 1, 1995. In order to do that, the City exercised an option contained in the storage building lease, which gives 60-day notice of termination. This is the overlying lease where the City leases it back for storage. That notice of termination is effective on July 5, 1995 (this does not impact the main facility in any way). BUDGET AND FINANCE COMMITTEE Friday, June 2, 1995 Page -3- Three options have been identified, none of which are without problems: First, if we just leave the status quo, the overlying lease for Parks purposes expires on July 5, 1995, and, at that point in time, the City could use the storage facility. In order to comply with federal laws, however, the City's General Fund would have to pay the Block Grant program $8,000 per year, or the monthly equivalent for however long it was used. Another option is that the City continue the 55-year lease to the Senior Center so that they can use the storage property to generate revenue. The City could, under that alternative, move the Parks Division storage out and relocate it, for some period of time, at the old corporation yard on Truxtun Avenue. That is not a 'fforever" solution. The City has offered that old corporation yard location for the new Amtrak Station. We do not know if it will be used. Even if it is not, that property will eventually be redeveloped. At that point, we would have to lease replacement facilities. This solution gets rid of the City's "image" problem and relieves the financial problem with the Senior Center. Option three is that the City make a larger, single gesture to the benefit of the Senior Center, by deeding them both properties. Under this, the City would relocate the Parks Division storage to the old corporation yard. The Senior Center would own both properties and could lease the storage facility for revenue generating. This would remove the City from the $5,000 per year cost of providing the outside maintenance services on the main building lease. This option was reviewed by Mr. Vernell Jackson, Director of the Senior Center. He indicated they are two to three years away from being in a position where they can afford to absorb those costs and did not express comfort with this proposal. Mr. Tandy pointed out that the properties are a substantial asset and the storage facility could be leased or mortgaged to generate capital to operate the Senior Center. It has no debt or encumbrances against it which would also be a vehicle for buying '~ransitional" time. The absence of Council action leaves the termination in place on the rental, and causes the first option to take place. This will be on the June 14, 1995, Council agenda. Councilmember Carson submitted the recommendation: 1) that the 55-year lease remain intact; 2) that the City's lease to use the storage facility be terminated; and 3) based on the fact that the City contributes monies to other organizations for project operation, that the City should also contribute monies to enhance senior services. Councilmember Carson recommended that $15,000 per year be allocated to enhance senior services in Fiscal Year 1995-96 for the Bakersfield Senior Center and the Community House Senior Center, stating that the AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Friday, June 2, 1995 Page -4- recommendation aligns with the vision that we ail have to provide equai access in the ailocation of public funds. Councilmember Carson requested the support of the Budget and Finance Committee of this recommendation to the full Council. Representatives of the Senior Center made several presentations regarding activities and programs conducted by the Senior Center for seniors throughout the City of Bakersfield, including transportation programs and recreational activities. They expressed concern over Council's previous action regarding the leases. Councilmember McDermott commented about the Council's concern with on- going expenses. The City has, historicaily, helped organizations get things going, but we do not get involved in on-going expenses. He used the Homeless Center as an example. He stated that the community is concerned with public safety, and the funding of those services should be the City's priority. Councilmember DeMond expressed concern over providing government funds for operational costs. She indicated she has not heard any Councilmember say that this issue has come up because of the Senior Center being in Ward 1. She stated that she voted for the $20,000 appropriation so that it could be brought forward under the Block Grant budget to be utilized for negotiation purposes, and had publicly stated that she was not voting to support the actuai payment of the $20,000. She went on to say that she would like the Senior Center to be independent of government and is willing to give the Senior Center the property predicated on the fact that the main facility would only be used as a Senior Center. They would be free to do what they want with the other property. Mr. Jackson suggested that if the property is deeded to the Senior Center that the storage facility be deeded immediately. Also, if the main facility is deeded immediately that we include a caveat in that transition deed that ailows the City to maintain the current maintenance functions for a two-year period. Councilmember Carson stated that the City does give the Bakersfield Symphony money for operating costs, as it is part of the operation of the Convention Center. She stated that the City gives the Symphony $29,000 a year and it is unfair to give to one group and not to another. She indicated that if the policy is to not give monies, then do away with the $29,000, and be consistent. She commented that the lease for the storage facility can be terminated, and the Senior Center can use it to generate income. Councilmember Carson indicated there are some exceptions wherein the City gives money to different organizations such as Fox Theater, Bakersfield Leadership, and $60,000 for the Homeless Center. AGENDA SUMMARY REPORT Friday, June 2, 1995 Page -5- Jake Wager explained that the money to the Homeless Center is used for some repairs to the Center; the City owns the building; the Center is 100% funded from CDBG funds; it is a service provider to the City; and, operating funds are not provided. Councilmember DeMond stated that she has not always been completely supportive concerning the situation with the Symphony. Since the Fox has been refurbished, she felt the Symphony would be been well-suited to go to the Fox because the Convention Center needs the room to use for other things. She reiterated that she would like to see both parcels go with the caveat that the main parcel only be used for the Senior Center situation. In response to a question of Councilmember McDermott, Mr. Wager responded that the value of both properties is well in excess of $500,000; how close to $1,000,000 is difficult to say. Councilmember Carson explained that in terms of a transition time, the Center needs time to put their finances in place to operate in an efficient manner in order to be financially prudent, and not place the Center in an adverse economic position. The request to allow time for transition is fair. The Committee can recommend that the transition be terminated at a specific time, and the deed would convert to the Senior Center. Mr. Jackson indicated that the Senior Center could acquire a loan; however, it would require some time. In addition, it represents another problem because they lose the income from the storage facility plus they would be required to service the new debt. The transitional period would allow the Center to put together a plan that eases that hit. It makes no sense to take that hit and have services curtailed. Councilmember DeMond stated that she could not support two years. She stated that she could support a transition time within a year, with a caveat that within a year there would be a no-return situation. Councilmember McDermott suggested January 1, 1995. Mr. Jackson commented that the Center would be acceptable to a one-year transition period, and suggested that a caveat be included in the deed that maintenance be maintained for one year. Mr. Tandy stated that Lee Andersen had a conversation with Mr. Jackson concerning the fact that the services provided by the City may not be the most economical, and Mr. Jackson may be able to hire someone for less money. BUDGET AND FINANCE COMMITTEE ~'~ L__.' Friday, June 2, 1995 Page -6- Councilmember Carson made a motion that we develop a resolution to keep the storage lease agreement from '59 intact,- the 55-year lease with no changes at this time other than that the City will not lease it for storage purposes-- and that the main building and the storage building lease both be deeded at the end of one year to the seniors, and that the lease on the senior building be leased with the condition that it be used for Senior Center purposes. Councilmember DeMond commented if the Center needs to generate funds, they can lease out the storage facility, but as long as the City holds fee simple on the property they cannot use it as a basis to secure a loan. She thought that part of the idea was that if it is deeded over to the Center, they can use the storage area for the loan. Councilmember Carson stated that by leaving it intact they can sublease it to generate income. She also disagreed stating that it is not easy to get a loan. She stated her goal is to terminate the lease for rental and keep the other and maintain it. Councilmember McDermott suggested giving the Center both of the properties immediately, and set aside up to $3,600 to pay for maintenance. Dudng the first couple of months, while the Center is trying to find a service provider, the City will continue to maintain the facility and charge their services against the $3,600. If the Center can find someone to provide the services within the budgeted amount, they can contract with that individual. It will basically get us to June 1, 1996. He felt that the Center can provide the maintenance at a cheaper rate through a private provider. In response to Councilmember Carson's question regarding giving the Center $3,600, Councilmember McDermott explained that the City can set aside the $3,600 as a trust. If the City performs the maintenance, it will be charged against the $3,600. Mr. Jackson indicated that there are no monies set aside in the Center's 1995-96 budget for maintenance. He indicated he is not adverse to the mechanism; however, he is concerned about the amount. Mr. Tandy suggested that the issue of a cash turnover or providing maintenance for a year can be covered as a part of the closing documents. Councilmember Carson stated that the cost for maintenance on her facility is $350 a month. BUDGET AND FINANCE COMMITTEE L_." Friday, June 2, 1995 Page -7- Committee members unanimously agreed to the following: 1. Property to be deeded over to the Senior Center. 2. $4,200 for maintenance be set aside for the Senior Center for one year. 3. Storage lease be terminated. Staff was directed to draft a recommendation for Council consideration. Mr. Jackson indicated that he will have to take the amount back to the board for approval. Mr. Tandy indicated that this issue will be ready for Council action on June 14, and expressed concern regarding the acceptance by the Senior Center's Board. Mr. Jackson indicated that the Board will meet next week. 6. NEW BUSINESS None 7. ADJOURNMENT The meeting was adjourned at 1:30 p.m. cc: Honorable Mayor and City Council J1NS:alb MEMORANDUM TO: BUDGET & FINANCE COMMITTEE FROM: JUDY K. SKOUSEN, CITY ATTORNEY~-~ SUBJECT: DISCLOSURE NOTICE RE SPECIAL ASSESSMENT DISTRICT LIEN - ORDINANCE 13.08.060 NOTICE TO BUYERS The following is a comparison between Ordinance No. 3643 as adopted by the City Council and the proposal by the Bakersfield Association of Realtors: Ord. 3643 BAR Draft 1. Requires notice be given to Requires notice be given prospective buyer before after escrow opens escrow opens 2. Requires seller to disclose Allows seller to estimate amount of lien and to find the amount or to say he out the true amount if he doesn't know whether there doesn't know is a lien 3. Does not require realtor to Requires realtortodeliver make disclosure, but only the disclosure the seller 4. Does not invalidate any sale Does not invalidate any for which no notice was given sale for which no notice but does give remedy to buyer was given and gives no to sue for rescission remedy to the buyer unless buyercanprovewillfulness or negligence by the seller and then damages can only be for actual damages not for rescission 5. Requires notice for every Exempts certain transfers transfer of property but of property but none that will miss those not using areobjectionableordefeat an escrow the purpose of the ordinance JKS:fet ~S~orresl~isclos~e.M~ § EER SO'S CIV [ ARTICLE 1.5 Disclosures Upon Transfer of Residential Property - --' ~-,'* 4 Acquisition of Pro_p?t¥~'~'..~ ~ronert¥. Aflicl¢ added St~ts ~,o ptopm-y--Articic ~,~, ~'~ § ~, operative j~nu~ , · public policy, Section ! 102,. Trn~s~ctions to which article applies; Waiver void as against 1102,1, Transactions to which article does not apply, 1102,2, Delivery of disclosure statement; Amendments; Termination of offer. 1102,4, Liability for errors or omissions, [102,5, Information rendered inaccurate due to subsequent eventS; Use of approximations, 1102,6, Form of disclosure statement, ~102,6a, Additional disclosures, 1102,6b, Disclosure notice for property subject to continuing lien securing levy of special taxes under to Mello-Roos Community Facilities Act. 1102,?, Disclosures to be made in good faith; "Good faith". 1102,$, Effect of article on other required disclosures, 1102,9, Amendment of disclosure statement. 1102,10, Means of delivering statement, 1102,11, Escrow agents, 1102,12, Broker's duties, 1102,13. Failure to comply with article; Liability for damages. ,,~istino a~ent; .... Selling agent". . 959; 1102.14. ". ~' °-~ r~rmer ordnance locauons within neighborhood area. 1102.15. Disclosure o~ ~ Witkin Summary (9th ed) Agency and Employment § 269, Real Property § 26, Torts §§ 700, Miller & Start, Cal Real Estate 2d §§ 3:27, 4:24. ers ursuant to court order, includ- ot~ns~nhiuCbhlicpa~.lcey . (b) Transf ..P ..... ,ransfers ordered by a · in~, but not umtteu.[u:: ..... ;~,,, of an estate, § 1102. Xransa.e.tions_ ~aP) prAbate court in aamm~[~ ~pt as provided in Section lI02A, th~s sale, transfers by foreclosure article applies to any transfer by sale, a trustee in bankruptcy, transfers by change, installment land sale contract, as de- transfers by any eminent fined in Section 2985, lease with an option to domain, and transfers resulting from a decree purchase, any other option to purchase, or for specific performance. ground lease coupled with improvements, of real property, or residential stock cooperative, (c) .Transfers to a mortgagee by a mortgagor improved with or consisting of not less than or successor in interest who is in default, one nor more than four dwelling units, transfers to a beneficiary of a deed of trust by (b) Any waiver of the requirements of this a trustor or successor in interest who is in article is void as against public policy, default, transfers by any foreclosure sale after ~r wife Amended Stats 1994 ch 817 § 1 (SB 1377). default, transfers by any foreclosure sale after unleSS Witkin Summary (9th ed) Agency and Em- default in an obligation secured by a mortgage, other' ployment § 269; Miller & Start, Cai Real Es- transfers by a sale under a power of sale or any foreclosure sale under a decree of foreclo- secured by tare 2d § 1:123. § 110~.1. Transactions to which article does sure after default in an obligation not apply. * * * This article does not apply to a deed of trust or secured by any other' instru- ment containing a power of sale, or transfers the following: by a mortgagee or a beneficiary under a deed ~n act at '(a) Transfers which are required to be pre- cound fo[ ceded by the furnishing to a prospective trans- of trust who has acquired the rem propert_y .bsence o_t ~ feree of a copy of a public report pursuant to a sale conducted pursuant to a power at- sa~e 649 § ~ Section 11018.1 of the Business and Profes- under a mortgage or deed of trust or a sale :mary (9~ ~ sions Code and transfers which can be made pursuant to a decree of foreclosure or has Cal Real without a public report pursuant to Section acquired the real property by a deed in lieu of ~ 11010.4 of the Business and Professions Code. foreclosure- ~ ~79 ~ ~ ~ Beginning in 1992. · indicate omissions. italws mdtcate changeS or add~ttons * * § 1102.1 DEERING'S CIVIL (d) Transfers by a fiduciary in the course of after delivery by deposit in the mail, to than those expressly Added Stats the administration of a decedent's estate, nate his or her offer by delivery of a January 1, 1987 guardianship, conservatorship, or trust, notice of termination to the transferor or ch 460 § 4. Witkin S (e) Transfers from one eoowner to one or more transferor's agent. Added Stats 1985 ch and Employment other coowners. § 2, operative January 1, 1987. $~r, Cai Real Estate 2d (f) Transfers made to a spouse, or to a person 1986 ch 460 § 3. Witkin Summary (9th ~ or persons in the lineal line of consanguinity Agency and Employment § 269; Miller. ~i of one or more of the transferors. Starr, Cal Real Estate 2d ~§ 1:123, 3:2Z ~ tiros, If information disclo: (g) Transfers between spouses resulting from a ' % ? ~th this article is subsequer § 1102 4 Liability for errors or omisaion~;.~l~i~' 'curate as a result of any a judgment of dissolution of marriage or of legal · · . . (a) Neither the transferor nor any listing separation or from a property settlement agree- 0~1~. $$reement subsequent to tt ment incidental to such a judgment, selling agent shall be liable for any error,_'~)i~..,~iuir~ disclosures, the in (h) Transfers by the Controller in the course inaccuracy, or omission of any information ~ i~r. efrom does not constit' of administering Chapter 7 (commencing with delivered pursuant to this article if the errOr, article. If at the time Section 1500) of Title 10 of Part 3 ofthe Code inaccuracy, or omission was not within th~ ? .t~luired to be made, an it, of Civil Procedure. personal knowledge of the transferor or that required to be disclosed is ~ (i) Transfers under Chapter 7 (commencing listing or selling agent, was based on informa- available to the transferor, with Section 3691) or Chapter 8 (commencing lion timely provided by public agencies or bl REAL ES'I with Section 3771) of Part 6 of Division I of other persons providing information aa sped- iT~ DISCLOSURE STA~ the Revenue and Taxation Code. fled in subdivision (c) that is required to t~ , TH~' CITY OF (j) Transfers or exchanges to or from any disclosed pursuant to this article, and ordinarY! ~' ~'RIBED AS transmit-'[7 governmental entity. Amended Stats 1992 ch care was exercised in obtaining and '~i' 163 § 7 (AB 2641), operative January 1, 1994. ting it. 8F, c'rION 1102 OF THI Witkin Summary (9th ed) Agency and Em- Co) The delivery of any information required ~I~NTY OF ANY ployment § 269; Miller & Starr, Cai Real Es- to be disclosed by this article to a prospecti~t~ INCy-ANY PRINCIPAL(,' tare 2d §§ 1:123, 3:27, 28:8. transferee by a public agency or other pers¢~li. -POR~ ANY I-NSPECTIO~ Il°-!trAIN. § 1102.2. Delivery of disclosure statement; providing information required to be disclose{[ Amendments; Termination of offer. The trans- pursuant to this article shall be deemed to feror of any real property subject to this article comply with the requirements of this arti¢l~ -:t,.., COORDIb shall deliver to the prospective transferee the and shall relieve the transferor or any listi~ This Real Estate Transfer written statement required by this article, as or selling agent of any further duty under t~ Code. Other statutes requir, follows: article with respect to that item of inforrr~ transaction (for example: st (a) In the case of a sale, as soon as practicable lion. gulntituted Disclosures: Th before transfer of title. (c) The delivery of a report or opinion pre ~ estate transfer, and ar, Co) In the case of transfer by a real property pared by a licensed engineer, land surveyor, .t!~-aubject matter is the sa sales contract, as defined in Section 2985, or geologist, structural pest control operator, !~n reports complem by a lease together with an option to purchase, contractor, or other expert, dealing with mat- or a ground lease coupled with improvements, nal inspection repot as soon as practicable before execution of the ters within the scope of the professional'$ contract. For the purpose of this subdivision, license or expertise, shall be sufl%ient eompli' "execution" means the making or acceptance ance for application of the exemption provided of an offer, by subdivision (a) if the information is prO- With respect to any transfer subject to subdi- vided to the prospective transferee pursuant to vision (a) or Co), the transferor shall indicate a request therefor, whether written or oral. I~ compliance with this article either on the responding to such a request, an expert may I The Seller discloses the fol t~ ! a warranty, prospective Bu receipt for deposit, the real property sales indicate, in writing, an understanding that terms to purchase the subj, contract, the lease, or any addendum attached information provided will be used in fulfilli~ principal(s) in this transac thereto or on a separate document, the requirements of Section 1102.6 and, if so, connection with any actual If any disclosure, or any material amendment shall indicate the required disclosures, or parts - ._THE FOLLOWING APE of any disclosure, required to be made by this thereof, to which the information being fur _NOT THE REPRESENT. 'i article, is delivered after the execution of an nished is applicable. Where such a statem~I 15 A DISCLOSURE AN ~ offer to purchase, the transferee shall have is furnished, the expert shall not be responsibl$ BETWEEN THE BUYER for any items of information, or parts thered, i three days after delivery in person or five days l~innins in 1992. it ~ 80 ltalit~ indicate chan~tea or addition~. * * * indic, ate oral,ions. ~ DEERING'S CIVIL § 1102.6 other than those expressly set forth in the or his or her agent has made a reasonable statement. Added Stats 1985 ch 1574 § 2, effort to ascertain it, the transferor may use an operative January 1, 1987. Amended Stats approximation of the information, provided 1986 ch 460 § 4. Witkin Summary (9th ed) the approximation is clearly identified as such, ,~gency and Employment § 269; Miller & is reasonable, is based on the best information Starr, Cai Real Estate 2d §§ 1:123, 3.'27. available to the transferor or his or her agent,. § 1102.5. Information rendered inaccurate and is not used for the purpose of circumvent- due to subsequent events; Use of al~l~roxima- lng or evading this article. Added Stats 1985 tions. If information disclosed in accordance ch 1574 § 2, operative January 1, 1987. Witkin with this article is subsequently rendered inac- Summary (9th ed) dgency and Employment curate as a result of any act, occurrence, or § 269; Miller & Start, Cai Real Estate 2d agreement subsequent to the delivery of the §§ 1:123, 3:27, 29:51. required disclosures, the inaccuracy resulting therefrom does not constitute a violation of § 1102.6. Form of disclosure statement. The this article. If at the time the disclosures are disclosures required by this article pertaining required to be made, an item of information to the property proposed to be transferred are required to be disclosed is unknown or not set forth in, and shall be made on a copy of, available to the transferor, and the transferor the following disclosure form: REAL ESTATE TRANSFER DISCLOSURE STATEMENT THIS DISCLOSURE STATEMENT CONCERNS THE REAL PROPERTY SITUATED IN THE CITY OF ., COUNTY OF ., STATE OF CALIFORNIA, DE- SCRIBED AS THIS STATEMENT IS A DISCLOSURE OF THE CONDITION OF THE ABOVE DESCRIBED PROPERTY IN COMPLIANCE WITH SECTION 1102 OF THE CIVIL CODE AS OF ., 19 __. IT IS NOT A WARRANTY OF ANY KIND BY THE SELLER(S) OR ANY AGENT(S) REPRESENT- ING ANY PRINCIPAL(S) IN THIS TRANSACTION, AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PRINCIPAL(S) MAY WISH TO OBTAIN. I COORDINATION WITH OTHER DISCLOSURE FORMS This Real Estate Transfer Disclosure Statement is made pursuant to Section 1102 of the Civil Code. Other statutes require disclosures, depending upon the details of the particular real estate transaction (for example: special study zone and purchase-money liens on residential property). Substituted Disclosures: The following disclosures have or will be made in connection with this real estate transfer, and are intended to satisfy the disclosure obligations on this form, where the subject matter is the same: Inspection reports completed pursuant to the contract of sale or receipt for deposit. gdditional inspection reports or disclosures: SELLER'S INFORMal TION The Seller discloses the following information with the knowledge that even though this is not a warranty, prospective Buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any agent(s) representing any Principal(s) in this transaction to provide a copy of this statement to any person or entity in COnnection with any actual or anticipated sale of the property. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER(S) AND ARE NOT THE REPRESENTATIONS OF THE AGENT(S), IF ANY. THIS INFORMATION IS A DISCLOSURE AND IS NOT INTENDED TO BE PART OF ANY CONTRACT BETWEEN THE BUYER AND SELLER. Beginning in 19q2, italics indicate changes or additions. * * * indicate omissions. ] 8'~ IV 7-L_ perth. ' g to the pro AGENT'S INSPE~ION' DISCLOSU~ ~~ - ~ s~ ~ ~t f. ~o ~ ~mpleted only if the agent who has obtained the offer is other than the agent a~ve.)~: THE ~DERSIGNED, BASED ON A ~ASONABLY COMPETENT AND DILIGEnCe' VISUAL INSPE~ION OF THE ACC~SIBLE AREAS OF THE PROPERTY, STAT~~?' ~AL THE FOLLOWING: '~~ DISCLOSURE Agent no~ no i~ms for d~c~ure. ~'~ CI~ OF~ ~gent no~ the following items: ~OVE D~ ~?~. __ OF THE Agent (Broker ~~;~ OBTAIN- obmmg the Offer) By Date B~R(S) AND SELLER(S) ~Y WISH TO OBTAIN PRO~SIONAL ADVI AND/OR INSPE~IONS OF ~E PROPERTY AND TO PROVIDE FOR APPROP~:~ ~W, pr~ ATE PROVISIONS IN A CO~~ BETWEEN BUYER AND SELLER(S) WI~7~ ~ m purc~ ~PE~ TO A~ ADViCE~NSPE~iONS~EFE~S' ~on ~th I~E ACKNOWLEDGE RECEI~ OF A COPY OF THIS STATEMENT. ~~ FOLLOWIN SeBer Date 3uyer Date SeBer Date Buyer Date '~~E~ATIO~ Agent ~roker ~ ~ B~ AND Repr~enting Seller) By . Date Ag~t ~roker obtaining the Offer) By Date SECTION 1102.2 OF THE CIVIL CODE PROVIDES ~ B~ER WITH THE RIGHT RESCI~ A PURCHASE CO--ACT FOR AT LEAST THREE DAYS A~ER THE ERY OF THIS DISCLOSURE IF DELIVERY OCCURS A~ER THE SIGNING OF~ TO P~CHASE. IF YOU WISH TO RESCIND THE CO~RACT, YOU MUST ACT Adja~t ~E PRESCRIBED PERIOD. ~ th A ~AL ~TATE BROKER IS QUALIFIED TO ADVISE ON ~AL ~TATE..IF D~I~ LEGAL ~VICE, CONSULT- YOUR A~ORNEY. .,.~ ~ of th~ ~end~ Sm~ 1990 ch 1336 ~ 2 (AB 3~), operative July 1, 1991. Amend~ Stats 817 ~ 2 (SB 1377). Witkin Summa~ (9th ed) Agency and Employment ~ 269; Miller & Sta~ Cai Real Estate 2d ~ 1:123, 3:27. ~ ..... ' ~ 1102.~. Ad&fion~ ~losur~. (a) On tion with tran~ctions subj~t to tMs ?~(~) AND ~d ~er July 1, 19~, any city or county may pursuit to an ordinance ~SPE ~ ord~an~ adopf~ p~or PRO~SIO el~-to requ~e di~l~ur~ on the fo~ set 1, 19~. Such fo~h M su~i~sion ~) in addition to those July 1,. 19~, may ~ mend~ ther~er TO ~losur~ r~uir~ by ~tion 1102.6. How- revise the disclosure requiremen~ of the · :.. ever, tMs ~tion d~ not aff~t or ~mit the nance, in the discretion of the city ~uneil ~ ACKNC authority of a city or ~unty to require disclo- county ~ard of supe~isors. s~ on a differ~t ~losure fo~ in conn<- (b) Disclosur~ requir~ pu~uant to this ..~ _ § 1102.6a DEERING'S CIVIL Agent (Broker Escrow agents. / than a real estate Representing Seller) By Date .,~ to Part 1 (commen (Associate Licensee Division 4 of t or Broker-Signature) Code, acting in t Agent (Broker for the transfe' Obtaining the Offer) By Date ~ ;his article shah (Associate Licensee of the transferor or t' or Broker-Signature) .of the disclosure req A REAL ESTATE BROKER IS QUALIFIED TO ADVISE ON REAL ESTATE IF~ unless the person or DESIRE LEGAL ADVICE, CONSULT YOUR ATTORNEY. to ~o act by an express effect. The extent c (c) This section does not preclude the use of special tax or district not actually by the v addenda to the form specified in subdivision the agents. Added Stats 1992 ch 772 § 1.3, 1985 ch 1574 (b) to facilitate the required disclosures. This 1464), operative July 1, 1993. 1, 1987. WitMn section does not preclude a city or county and Employment from using the disclosure form specified in § 1102.7. Disclosures to be made in Real Estate 2d §: subdivision (b) for .a purpose other than that faith; "Good faith". Each disclosure . Broker's duties' specified in this section. Added Stats 1989 ch by this article and each act which may real estate bro 171 sec 2. performed in making the disclosure, !.in a transaction sub' made in good faith. For purposes of . wh° has obtaine~ § 1102.6'b. Disclosure notice for property article, "good faith" means honesty in shall, except subject to continuing lien securing levy of the conduct of the transaction. Added ~.'in this article, deli si~eial taxes under to Melio-Roos Community 1985 ch 1574 § 2, operative January 1, this article to ti Facilities Act. (a) This section applies to all Witkin Summary (9th ed) Agency and a'ansferor has given ot transfers of real property for which all of the ployment § 269; Miller &Starr, Cal Real following apply: rate 2d § 1.'123. (1) The transfer is subject to this article, ilf'i~'licensed real estate (2) The property being transferred is subject § 1102.8. Effect of article on other the disclose disclosures. The specification of items for obtain 'the d to a continuing lien securing the levy of special closure in this article does not limit or and does not hax taxes pursuant to the Mello-Roos Community any obligation for disclosure created '~he transferee that Facilities Act (Chapter 2.5 (commencing with other provision of law or which may the brokt Section 53311) of Part 1 of Division 2 of Title order to avoid fraud, misrepresentation in writing of 5 of the Government Code). deceit in the transfer transaction. Added :.A licensed re. (3) A notice is not required pursuant to Sec- 1985 ch 1574 § 2, operative January 1, for delivering d~ tion 53341.5 of the Government Code. Witkin Summary (9th ed) Agency and shall maintain a (b) In addition to other disclosure required ployment §269; Miller & Start, Cai pursuant to this article, the seller of any real tate 2d § 1:123. tO effect complianc~ 10148 of the Busi property subject to this section shall make a § 1102.9. Amendment of disclosure 1985 c good faith effort to obtain a disclosure notice ment. Any disclosure made pursuant to thit ~]imiiaxy 1', 1987; Amendt concerning the special tax as provided for in article may be amended in writing by ~_.6.. 'Witkin Summary ( Section 53340.2 of the Government Code from transferor or his or her agent, but the ~,ployment § 269; Mille each local agency which levies a special tax ment shall be subject to the provisions 0fi ~te 2d§§ 1:123, 3:2Z pursuant to the Mello-Roos Community Facil- Section 1102.2. Added Stats 1985 ch 1574 § 2, ities Act on the property being.transferred, operative January 1, 1987. Witkin Summary ,~t,'1,102.15. Failure to and shall deliver that notice or those notices (9th ed)Agency and Employment § 269; Millet ~.~ty for damages. to the prospective purchaser, as long as the &Starr, Cai Real Estate 2d §§ 1:123, 3:27. ~cJ~tt.:,.:. , · notices are made available by the local agency. § 1102.10. Means of delivering i-lLfJ~',~: ,~: - (c) If a disclosure received pursuant to subdi- Delivery of disclosures required by this article ~'~; ~: vision (b) has been delivered to the transferee, shall be by personal delivery to the tranferee ;': tin,ion 2. Prover' a seller or his or her agent is not required to or by mail to the prospective transferee. For provide additional information concerning, the purposes of this article, delivery to the and information in the disclosure shall be spouse of a transferee shall be deemed deliverY Section deemed to satisfy the responsibility of the to the transferee, unless provided otherwise by 1104. What easer seller or his or her agent to inform the trans- contract. Added Stats 1985 ch 1574 § 2, oper- ."' 1105. When fee s feree regarding the special tax and the district, ative January 1, 1987. Witkin Summary (9th 1106. Subsequent Notwithstanding subdivision (b), nothing in ed) Agency and Employment § 269; Miller & ! 107. Grant, boy this section imposes a duty to discover a Starr, CalRealEstate 2d§§1.'123, 3:27. Beginning in 1992, ~ ~ italics indicate changes or additions. * * * indicate omissions. . DEERING'S CIVIL § 1104 § 1102.11. Escrow agents. Any person or en- this article shall be invalidated solely because tity, other than a real estate licensee licensed of th.e .failure of any person to comply with any 0000 ursuant to Part I (commencing with Section provision of this article. However, any person ) of Division 4 of the Business and who willfully or negligently violates or fails to Professions Code, acting in the capacity of an perform any duty prescribed by any provision escrow agent for the transfer of real property of this article shall be liable in the amount of subject to this article shall not be deemed the actual damages suffered by a transferee. agent of the transferor or transferee for put- Added Stats 1985 ch 1574 § 2, operative San- poses of the disclosure requirements of this uary 1, 1987. Witkin Summary (9th ed) article, unless the person or entity is empow- Agency and Employment ered to so act by an express written agreement to that effect. The extent of such an agency Starr, Cai Real Estate 2d §§ 1:123, 3.'2Z shall be governed by the written agreement. § 1102.14. "Listing agent;" "Selling agent". Added Stats 1985 ch 1574 § 2, operative Jan- (a) As used in this article, "listing agent" uary 1, 1987. Witkin Summary (9th ed) means listing agent as defined in subdivision ,4gency and Employment ~269; Miller & (f) of Section 1086. Starr, Cai Real Estate 2d ~q 1:123, 3.'27. (b) As used in this article, "selling agent" § 1102.12. Broker's duties. (a) If more than means selling agent as defined in subdivision one licensed real estate broker is acting as an (g) of Section 1086, exclusive of the require- agent in a transaction subject to this article, ment that the agent be a participant in a the broker who has obtained the offer made by multiple listing service as defined in Section the transferee shall, except as otherwise pro- 1087. Added Stats 1986 ch 460 § 7. vided in this article, deliver the disclosure required by this article to the transferee, unless § 1102.15. Disclosure of former ordinance the transferor has given other written instruc- locations within neighborhood area. The seller tions for delivery, of residential real property subject to this (b) If a licensed real estate broker responsible article who has actual knowledge of any for delivering the disclosures under this sec- former federal or state ordnance locations tion cannot obtain the disclosure document within the neighborhood area shall give writ- required and does not have written assurance ten notice of that knowledge as soon as prac- from the transferee that the disclosure has ticable before transfer of title. been received, the broker shall advise the For purposes of this section, "former federal transferee in writing of his or her rights to the or state ordnance locations" means an area disclosure. A licensed real estate broker re- identified by an agency or instrumentality of sponsible for delivering disclosures under this the federal or state government as an area section shall maintain a record of the action once used for military training purposes which taken to effect compliance in accordance with may contain potentially explosive munitions. Section 10148 of the Business and Professions "Neighborhood area" means within one mile Code. Added Stats 1985 ch 1574 § 2, operative 'of the residential real property. January 1, 1987; Amended Stats 1986 ch 460 The disclosure required by this section does § 6. Witkin Summary (9th ed) Agency and not limit or abridge any obligation for disclo- Employment ~ 269; Miller & Starr, Cai Real sure created by any other law or that may Estate 2d §~ 1:123, 3:2Z exist in order to avoid fraud, misrepresenta- § !102.15~...Failure to coml~ly with article; tion, or deceit in the transfer transaction. Liability for damages, No transfer subject to Added Stats 1989 ch 294'sec 1. ARTICLE 2 Effect of Transfer [Division 2, Property--Part 4, Acquisition of Property--Title 4, Transfer--Chapter 2, Transfer of Real Property--Article 2, Effect of Transfer: Enacted 1872.] Section 1104. What easements pass with property. 1105. When fee simple title is presumed to pass. 1106. Subsequently acquired title passes by operation of law. 1107. Grant, how far conclusive on purchasers. I~'-) Beginning in 1992, italic~ indicate changes or additions. * * * indicate omissions. BAKERSFIELD MEMORANDUM June 2, 1995 TO: BUDGET AND FINANCE COld, Il-FEE FRO D.B. TEUBNER, ASSISTANT TO THE CITY MANAGER ../ ,"" THROUGH: ALAN TANDY, CITY MANAGER /' SUBJECT: SENIOR CENTER LEASE OPTIONS RECOI~ENDATION: Staff recommends that the Committee select one of the following alternatives. Option I - We have given termination notice on the storage facilities leases with the Sr. Center. The City will, with no additional action, regain direct control of the property in early July. We could then use it for storage by paying $8,000 per year from the General Fund to the Community Development Block Grant Fund. Option II - The Sr. Center wishes us to deed the storage property to them so they could generate operating revenue from a new tenant or, alternatively, to continue the long-term lease to them at $1 per year. Under this, our Parks Division would relocate temporarily to the old corporation yard. Ootion III - Give the Sr. Center the deeds to both the storage property and the main building. We would Then relocate Parks to the old corporation yard. We would also save the $5,000 per year that the current lease agreements require us to put into maintenance. ~n addition, if the City continues the main building lease, it is recommended that the City proceed with reducing the cost of the landscape maintenance by contracting for the service and also proceed with discontinuing the building maintenance services. BACKGROUND: The City actually has three leases with the Bakersfield Sr. Center. The first is a 55 year lease for their main facilities for which they pay $1 per year and must provide services to low and moderate income seniors. .As part of this lease, the City is required to provide landscape maintenance which costs approximately 55,000 per year. The second is also a 55 year lease with 10 year renewals for the storage facilities which we lease to them for $1 hut can terminate with 60 days notice. As part of the lease, the Sr. Center has the option to sublease the storage area to generate extra income. 2ecause the facility was purchased with CDBG, the facility must either be used to provide services So iow/moderate income clients or be sublet ~t a market ra~e. The third is the lease that the Parks ]ivision has with the Sr. Center to lease an lk,O00 square foot facility and 1- acre lot for storage of park maintenance equipment at $15,972 per year. Over and above Che lease agreement, the City also provides aDproximately $1,000 worth of ~uiiding maintenance co the Sr. Center annually. Staff recommends discontinuing ~his service. SUDGET AND FINANCE COMMITTEE June 2 1995 Page 2 Extenuating factors affecting resolution of this issue are as follows: · The City Council believes that it is bad policy to pay rent on a facility that the City owns and have directed staff to remedy the situation by June 30, 1995. Staff has sent a 60 day notice of termination of the lease to the Sr. Center for the storage facility. This put the Sr. Center on notice that the current lease arrangement would not continue and brings some urgency to the negotiation process. · The Parks Division needs a storage facility regardless of the Sr. Center issue. The current facility is in a central location, is the right size and is priced slightly below what it would cost to'lease a similar facility. · The Sr. Center's new Executive Director, Vernell Jackson, indicates that the lease income generated from their lease with the City is currently a critical revenue source. He has indicated that the Sr. Center would find it extremely difficult, given their current commitments, to operate without the lease income. Given these constraints, staff is presenting three options to the Council. Other options have been developed by staff, however, these three are the most realistic ~lternatives available based on Council's direction. Omtion I - Carry out current 60 day Notice of Termination of the Lease This option would provide for permanent termination of the $1 lease with ~:,e Sr. Center for the storage facility, with the City regaining control over the f~cilities. Parks would continue to use the facility, but because the facility was ourchased with CDBG. a transfer of funds from the General Fund to CDBG would be required %o reimburse CDBG for the portion of the facility used for services which do not benefit low and moderate income persons. This amount would be approximately $8,000 per year, which is less than the current lease rate. This option would result in a loss of income to the Sr. Center which they have indicated, would be very detrimental to their operations aS the present ~ime. The landscape maintenance services provided by the City are part of the 55 year Master lease and therefore are not subject to renegotiation. However, some cost saving measures could be implemented to decrease the $5,000 annual cost, such as contracting for the maintenance rather than using City staff. This could result in a savings of up to $2,000. Ootion II - Deed the Storage Facility over to the Senior Center Under this option, we would give ~he Sr. Center the deed to the storage facility. The Sr. Center has sta~ed that the lease income is a critical component of their operating budge~ and they would like the opportunity to find ~ new sublessee. [he Sr. Cen~er admits that they have no immediate plans for the proper%y, however, the ultimate goal would be to develop senior housing. Given the Center's current financial instability, it is highly unlikely that they will be ~ble to undertake such a project in the foreseeable future. Given ~hat the Council is not interested in continuing ~UDGET AND FINANCE COMMITTEE June 2, 1995 Page 3 the present arrangement, the Parks Division will need to find a new location for their operation. For the foreseeable future, the old corporation yard is available with no rent. There would be some additional travel time. For the longer term, the old corporation yard may become the Amtrak station, or be redeveloped for other purposes. In a review of similar facilities, lease rates were identified between $24,000 and $34,800 per year. This additional $8,000 to $11,000 for the lease payment would have to be absorbed by the General Fund when that would be necessary. The cost of purchasing a facility might range from $190,000 to $350,000, depending on the location and condition of the property, according to a preliminary survey of available property prepared by CB Commercial Real Estate.. Ootion III - Give the Sr. Center the deeds to the Storage Facility and Main Building This alternative includes Option II, in that the deed to the storage property would be given to the Sr. Center and Parks would relocate to the old corporation yard. It adds to that, however, the deeding of the main building lease to the Sr. Center. That saves the City the $5,000 per year in maintenance costs and makes the entire relationship between the City and Sr. Center very clean. We would have acquired property with federal monies and would have given that to a non-profit for the provision of desired social services. We should note under this alternative that, free of governmental requirements, the Sr. Center might be able to contract for the maintenance at under $5,000 per year. The staff has discussed this option in the past with Sr. Center officials. We were told they were not yes ready for this step at that time. Perhaps now. however, we can combine their desire to own the storage property outright with our desire to get out of annual maintenance of the main building grounds. If the land is deeded to them, it should be with a restriction that requires the use be for the benefit of senior citizens. in response to the Council's concern that the City is getting involved in a I'scanoal" with respect to either the current lease arrangement or various alternatives that staff has explored to resolve the issue, it does not appear that anything illegal or unethical is occurring. The leases with the Sr. Center for the lease and sublease are legal documents which allow for such an arrangement. Because of the mechanism for financing the purchase of the facilities, the City will be required to make some kind of payment to satisfy CDBG reouirements, regardless of how we resolve the issues with the Sr. Center. The Parks Division clearly neeos a facility and would be paying a similar or higher amount for a comparable building. At the time the leases were entered ~n~o. it most likely appeared to be a win-win situation for both the City and the Sr. Cen~er. Finally, with regard to the landscape maintenance which we perform. ~na~ is par~ of the ~5 year Master ~ease ano is not open for renegotiation regardless of the outcome of the o:her leases. BUDGET AND FINANCE COMMITTEE June 2, i995 Page 4 It is also important to note that their is nothing inappropriate or illegal about supporting senior programs. Many cities in Kern County and the surrounding area make contributions to or directly operate senior programs and facilities. Among them are Shafter, Wasco, Delano, California City, Visalia, Lancaster and Palmdale. Programs include senior nutrition, subsidized dial-a-ride, senior housing projects and senior center operations. The Council may decide that they do not want to use the mechanism of the lease to make such a contribution to senior programs, but a precedent certainly exists among other jurisdictions for supporting operations and activities for this group of constituents. Since the two leases on the storage facility both expire on or about June 30, it is imperative that the Council take action at the June Council Meeting. If you need any additional information, please let me know. .dbt.alb BAKERSFIELD MEMORANDUM January25, 1995 TO: ALL D~,PA~RTMENT HEADS AND BUDGET STAFF FROM: GAIL/E'.U~/AITERS, ASSISTANT CITY MANAGER ~" / TROUGH: ALAN mANDY, CITY MANAGER /// / SUBJECT: FISCAL YEAR 1995-96 BUDGET INSTRUCTIONS The budget for fiscal year 1995-96 will essentially be a "low to moderate growth" budget from fiscal year 1994-95. The City has experienced a five percent growth in sales tax revenues over last year, however, the Finance Director is projecting a modest two to three percent growth for the 1995/96 fiscal year. Property tax revenues are also estimated to grow approximately four to five percent over 1994/95 (this excludes revenues from the Union #10 annexation). , The Iow to moderate growth budget position is in response to this preliminary information. It allows us to achieve service continuity and perhaps some.incremental/ enhancements to improve service delivery. We will not be able to "catch up" to previous' years budget constraints. Again in 1995/96 because of one-time savings, we expect room for a reasonable capital improvement program. Additional revenues resulting from a rebate of our PERS rates and a greater fund balance than anticipated (carded over from last fiscal year) have contributed to the opportunity to use one-time, non-recurring savings for one-time non- recurring expenses. While we do not want to paint a picture like prior years "gloom and doom," we surely do not want to give an impression that things are back on track. We anticipate that some :~ departments will submit proposed budgets that will require additional personnel because.~.' of identified growth in specific service delivery areas or because hardships from pr~vious- cuts have proven to be intolerable. These two situations are distinct and must be viewed as such. First priority will be given to requests that focus on maintaining current service levels. Secondary to that will be requests for expanded service levels. However, you should be cognizant of the reality that requests for new positions end up in a competitive Fiscal Year 1995-96 Budget Instructions January 25, 1995 Page 2 arena and organizationally, will be extremely limited in number. Detailed and well thought out substantiation of your position will be essential for serious consideration of long term added operational costs. STATE BUDGET We have received information on the Governor's proposed budget and those areas affecting municipalities. Overall, the Governor has indicated California's economy is in the midst of "sustained recovery" because of growth in employment, new housing construction, retail sales and a number of other indicators. His budget priorities include continued expansion of the state's economy, promotion of self-sufficiency and protection from crime and violence. For the first time in several years, the state budget boasts a revenue and expenditure situation that is no longer deteriorating, but is continuing at a moderate growth level. Even so, the Governor has presented a "hold the line" spending budget, while the state moves cautiously through the remains of the recession. A moderate position is appropriate for the City of Bakersfield in that we can never really let our guard down until the state legislature passes its final budget on June 15, 1995. Specific to municipal government, the state budget is not proposing a raid on city revenues as in prior years. No further reductions in property tax or vehicle license fees are proposed, nor does it include any plans to reailocate the local sales tax. However, the Governor does propose requiring 50 percent of the cities' fines and penalties currently going to the state to be sent to counties instead, to realign trial court funding. This will result in over $900 million in new resources for counties. In addition, the state budget shifts $100 million in transportation funds away from the State and Local Partnership Program to other transportation programs. This change could have an impact on our city's ability to complete street resurfacing projects because the matching funds we currently enjoy will be reduced. The state legislature's approach to this budget is more uncertain than usual given the lack of a clear majority in the state assembly. We have been cautioned by the League of California Cities to consider ourselves still "very much at risk" for budget reductions in 1995-96, especially when the state continues to count on an approximate $800 million reimbursement from the federal government for the cost of federally-mandated programs provided to illegal immigrants. Fiscal Year 1995-96 Budget Instructions January 25, 1995 Page 3 BUDGET PROCESS New Software Perhaps the biggest challenge ahead for us is the successful converaooi~g~;.,.:.pew,.. computer hardware and software system. I want to extend my thanks in advance to every employee for their hard work, patience and contributions to moving this process along so that we could be on line for this budget cycle. We all know that this is not an ideal time to be making the conversion, however, the longer we walt, the further behind we get. I have no doubt that once installed, each of you will be excited about the opportunities you will have to make your operations more productive, informative, and effective. In the meantime, the transition must be a coordinated and cooperative effort. You¢~ immediate input, suggestions and response to procedures is essential to holding-d°wn the frustration level as well as unnecessary delays. You may find it a little uncomfortable because there is not a procedural manual currently available to support the new HTE software. Those employees who received the initial training should be-willing'to~.~, develop it as we go along, and be avadable to others ~n the organization who have questions or get stuck and cannot seem to move forward. Budqet Submittal Because this will be a Iow to moderate growth budget year, departments should develop a conservative budget that allows for a reasonable inflation factor and minimal additions or increases for major service priorities. Anticipated increases for medical insurance, longevity pay, step increases, safety certificate pay and any negotiated salary settlements that are currently in effect, will be calculated by the Manager's Office and forwarded to you for inclusion into your budget submission. Again this year we will be negotiating salary settlements for all bargaining units -- April 1995 for Police, and January 1996 for all others. Because salary settlements typically do not occur until after budgets are submitted to the Manager's Office, those costs will be factored into departmental budgets by the Manager's Office as they become available. Several procedural changes will take place this budget cycle that will hopefully, ease the burden of putting your proposed budgets together. Fiscal Year 1995-96 Budget Instructions January 25, 1995 Page 4 1. G Forms. The G Form as you know it will no longer exist. HTE software has a feature called "Miscellaneous Information" that should, bemused .to wdte justifications. Justifications at the City Manager level are no longer necessary for general office supplies; but are required' for:-:-reirnbursable? expenses, professional and consulting services,'"other~,,O~id~i:~-§-e~,~s~. computer supplies and peripherals, and cOntr~is~fions. 2. Fee Projections. As you know, the fee projection process started November 29. The plan is that Council will approve proposed fees in March, which gives us a little more time to work the fees¢"into our calculations for developing our operating budget: 3. Project Tracking. A separate meeting will be held to go over the transition and specifics of the new project tracking system. At this meeting, you will be informed of the process for using project numbers for the CIP as well as for a limited number of operating projects. Prior to this meeting, all departments must have their current project listing cleaned up and devoid of anything that does not meet the criteria which constitutes a valid project. That criteria is being supplied to you under separate cover. 4. Capital Improvement Program. Through discussions with the appropriate departments, a decision has been made to accelerate the CIP process so that it has less of an opportunity to compete with developing the operating side of the budget. CIP requests are due to the City Manager's Office not later than February 27, 1995, in anticipation for Council review, in March and Council adoption in Apdl. As mentioned above, specific details about the CIP process and project tracking will come shortly. Enterprise and Interdepartmental Services Departments with enterprise services should seek out ways to increase their contributions to the General Fund for those services that are directly related to or have some administrative/maintenance costs that are specific to the enterprise service. My staff is available to discuss alternatives to achieve that objective. It is important for departments to seek early assistance as it relates to Interdepartmental Services. This is an area where the one-time monies will make the availability of needed remodels and upgrades in computer hardware a possibility. Fiscal Year 1995-96 Budget Instructions January 25, 1995 Page 5 Personnel-Related Issue,~ Training and installation of the HTE payroll application is not schedule~t~begln~until Apdl and, therefore, all data related to existing personnel costs will have to be manually entered into your proposed budget by Data Processing. We are currently in the process of building me salary project, on file. Departments can use the "BUD. USER" applications on the PRIME to generate the costs and appropriate detail for temporary and seasonal employees and overtime. Once the costs have been calculated, departments must then enter the costs into the proper accounts on the HTE software. Under the PRIME system, special pay costs were reflected in one account -- 70100 -- as part of regular salaries and wages. With the HTE software, there are separate accounts for each type of special pay. For this budget year only, departments will have to calculate and manually enter these costs, including sick leave conversion pay, into the appropriate accounts within the HTE software. Personnel additions will be considered for critical needs and where unusually difficult situations exist. Several departments have indicated some concern about waiting until after the budget cycle begins to propose and receive a decision on new positions, reclassifications or organizational changes. This process also presents somewhat of a timing problem for the City Manager's Office. Consequently, those departments who have already thought through their personnel needs and have completed the necessary work to justify their request, may submit them immediately. Requests for organizational changes and new position requests should be submitted directly to the Manager's Office. Reclassification requests are due to Personnel by February 1. Effective with this year's budget process, reclassification requests will automatically be denied'ifthey~are.,not accompanied by a solid justification which details significant changes inj°bdutte~:and· a carefully thought through narrative. Written justifications are required for reclassifications even if there is no net change in salary. A copy of your submissions to Personnel should also be included in your budget binder. Beginning with the 1996-97 budget year, we will be encouraging departments to do more advanced planning as it relates to personnel requests. Specific guidelines will be distributed that will allow departments to submit any requests they are aware of.by November 1 so that prior to the budget kickoff, departments will, in many cases~, have a decision on whether to include personnel requests in their proposed, budgets. We believe by making this change, departments will be afforded more flexibility in their workload; a better chance of getting their requests approved because they would be Fiscal Year 1995-96 Budget Instructions January 25, 1995 Page 6 submitted early; and it will allow my office an opportunity to analyze all the factors that must be considered when approving personnel changes. Capital Outlay Request~ In the past, capital outlay requests were handled outside of requests for operating items. With the HTE software, departments will be required to provide the appropriate level of detail for capital outlay requests in the "Miscellaneous Information" screen. All requisitions over $600 must have a description and note the quantity and :'amount: (Departments will be notified once a final decision has been made regarding an'inCrease to the capital outlay threshold.) The Purchasing Division will provide departments with a listing of capital outlay items and their costs. Capital outlay requests should be considered in context of the current budget situation. Priority will be given to one-time expenses which tend to reduce recurring annual costs. Reimbursable Expenses As in previous years, this account is subject to review. Due to the sensitivity of recurring expenses in this area, historic expenditures should be thoroughly examined and considered carefully. Requests for out-of-state training and travel will be made on a case-by-case basis, requiring City Manager approval. Requests should be done in the Miscellaneous Information screen, and must include individual name, position, type of training, location, dates, and how the training will benefit the city. Interdepartmental Services Requests for new vehicles and communications equipment also should be given careful consideration before being included in your budget. These requests are due to the Equipment Division not later than February 16, 1995. New vehicle requests that are to support new positions or are replacement vehicles have a better chance at getting approved. Fleet Management is working to reduce the total fleet, which may include implementing a car pool process for departments. In general, requests submitted to General Services are budgeted by General Services, however, last year there were a number of items that were transferred into the Capital Improvement Program. This is a good reason for special project requests such as Fiscal Year 1995-96 Budget Instructions January 25, 1995 Page 7 modifications of existing facilities and/or equipment to be worked out with the appropriate internal service department prior to presenting it in your proposed budget. These requests are also due to General Services not later than February 16, 1995. Wrap Up This year the budget team will be made up of the following individuals: Assistant City Manager for budget; Finance Director; Assistant to..the.,City..Manager; Administrative Analyst II; and Public Works Operations Manager' and. G~~ces Superintendent. All of these individuals will be able to respond to questions specific to their areas of responsibility and are available to go over your budgets with you. Any general questions, comments or suggestions you may have about the budget process should be directed to Gail Waiters or Dolores Buddel-Tuebner. Thank you again, in advance, for your patience, cooperation and hard work with the upcoming budget process. There will be many trying times, but if we all remember we are working toward the same goal -- to provide quality, effective and efficient services to our community -- the transition will be highly successful. Suggestions for ways we can implement cost-savings, and any creative ideas you may have to help us get through the next six months will be greatly appreciated. Your assistance along these lines during the 1993/94 budget year helped us recover in fiscal year 1994/95 from some very strenuous constraints. The outlook for 1995/96 as it relates to our financial position is positive; and an exciting challenge awaits us with our new computer system and the opportunities that will come with it. Let's make the best of it. ADMINISTRATIVE RULES "°' Date 1/1~6L86 _ AND REGULATIONS SUBJECT: AUTOMOBILE AND MILEAGE ALLOWANCE I. STATEMENT Due to the nature of the position held, it is more economical for the City in some instances to provide certain employees with either reimbursement for car miles traveled or car allowances. The following procedure clarifies the City's automobile and mileage allowance policy. II. PROCEDURE 1. When officers or employees of the City are authorized to use their own automobiles in the cause of City business, they shall be reimbursed for costs at a rate up to the rate currently used by the IRS for tax purposes. Driving to and from work is not considered City business unless such driving is in conjunction with meetings of the Council, boards, commissions, other special meetings or functions relative to City business. 2. Whenever feasible for out-of-town trips on City business, a pool car should be utilized if available. Whenever long trips ~re taken on City business, due regard should be considered on the basis of airfare. If it is less costly to fly to a destination, employees are encouraged to fly or be reimbursed for automobile expense in an amount equal to the price of a round trip plane ticket. 3. Department heads who are not furnished an official City car, shall be reimbursed for automobile use at the rate of three hundred, twenty-four dollars ($324) per month. I 2 Page.of _ ADMINISTRATIVE RULES Date AND REGULATIONS SUBJECT: AUTOMOBILE AND MILEAGE ALLOWANCE I~. PROCEDURE (cont'd) Reimbursement rates will be based on the following formula: Internal rental rate, including depreciation, fuel, oil, parts, accident ~amage repair, labor, etc., based on a mid-size, four-door sedan, with air conditioning, power steering, power brakes, and AM radio, depreciated five years with an annual mileage of 14,500 miles per year. Purchase Cost $12,000 Salvage Value 2,000 Amount Depreciated $10,000 $10,000 - 60 months = $167 depreciation per month. 12,240 miles @ 21~ per mile = $215 for maintenance, fuel, oil and tires monthly. $167 Depreciation 215 Maintenance, fuel, oil, tires, etc. 50 Liability insurance $432 x 75 = $32~ Monthly total 4. Additional personnel, as delineated in City Council Salary Resolution, shall be paid $50 per month for furnishing their own personal automobiles. 5. Authorization for reimbursement for automobile expense must be given by the appropriate department head and an expense voucher submitted upon conclusion of the mileage transaction. 6. Monthly automobile allowance authorized by salary resolution shall be paid by payroll check on the first paydate following the month being compensated. III. CITATION City Coucil Resolution - Personnel Compensation. Revised 8/01/88 2 2 Page ,, of . ADMINISTRATIVE RULES ,o. AND REGULATIONS SUBJECT: BUSINESS LEAVE I. STATEMENT All probationary and permanent employees shall be eligible for authorized business leave with pay. Such eligibility is based upon a positive determination by the department head that a business leave with pay is beneficial to the City. II. PROCEDURE Business leave with pay may be granted subject to advance authorization by the supervisor department head, and the City Manager. ' 1. The cost of lodging shall be reimbursed or paid directly by the City. This po]icy requires that minimum cost accommodations in keeping with availability, convenience and propriety shall be obtained by the attending officer or employee. If a spouse accompanies the employee, the City will reimDurse at the singles lodging rate only. 2. Transportation to and from a conference or meeting shall be reimPursed or paid directly by the City based on the following considerations. a. The officer or employee making travel arrangements shall secure the most economical mode of transportation in keeping with the considerations of availability, convenience and propriety; City owned vehicles shall be used, if available and appropriate, when traveling to conferences or meetings within California. b. When air travel is appropriate, coach class shall be utilized whenever possible. City employees, who are certified airplane pilots and are listed as individual insured on the City's insurance policy, are occasionally available to use in the case of tight time constraints or long distances which must be traveled. The use of this type of air travel is acceptable ~vhen The total amount charged is less than the amount required for commercial round trip airfare. 1- 2 Pege. of _ ADMINISTRATIVE RULES AND REGULATIONS ';" ? '" & p~lllOVBrD SUBJECT: -' ~U$I~[$$ LE^V[ II. PROCEDURE (cont'd) c. When a private automobile is used, reimbursement for such use shall either be paid at the per mile rate currently allowed by the Internal Revenue Service or at the rate of air travel costs to and from the employee's destination, whichever is lowest. d.Taxi or bus fare as required for transportation to and from meeting site or airport. e.. Car rental is permitted only when absolutely necessary and prior permission is granted by the department head and City Manager. 3.All registration fees shall be reimbursed or paid directly by the City. 4. A per diem allowance of forty-five (S45.00) dollars to cover all meetings or conference costs in addition to those enumerated above shall be provided for only those days attending or in transit to and from an approved conference. The allowance which covers the cost of meals of employees on business leave within a 24-hour period is allowed, based on the following policy: breakfast $8; lunch S12; dinner S25. No additional reimbursement for meals will be allowed within one 24-hour period. If meals are included in the conference registration'fee, then a proportionate amount shou]d be deducted from the $45.00 per diem. If reasonable expenses at the conclusion of the conference are more than the $45.00 per diem then the employee may submit an expense voucher with supporting documents to their department head for reimbursement. (As outlined in Section VI-3.1 of the Administrative Ru)es and Regulations). 5. Charges such as room ;ervice, personal telephone calls, or any costs incurre~ for anyone other than the officer or employee shall not be reimDursed. C[TAT[ON Bakersfield Municipal Code, Chapter 2.84.620 ._ Revised 9/24/87 Revised 8/01/88 2 2 Pa~e of Bakersfield, California, ?,lay 2. 1984 - Page following call vote: Aye~ Councilmen Childs, Christensen, M( , Ratty, Rockoff, Barton ' Noes: Absent: No In ans a Councilman Childs, Fire and Development Services ~ indicated the letter from Doris C. ' Williams. 1030 Chester P April 17, 1984, regarding rezoning the Lowell Addition, of California Avenue between Chester Avenue an( )n Avenue, w~ erred to Staff at tile meeting of April 25, 1 was inadvertent] otten. He will check into the le ~nd contact Councilman Chil( ;oon as possible. answer to a question by ~ayor Shell 'ding gap in comm ions between ~he Emergency Operation Cente] ergency asting System, Police Chief Price stated he would ha into ~hat REPORTS Councilman Rockoff. Chairman of ~he Budget and Finance Committee. read Report ~o. i3-84, regarding Policy on Reimbursable Expenses for City Council ~lembers, as follows: Pursuant to reviewing of expense vouchers, the Budget and Finance Committee noted a need for clarification and the establishment of a policy on reimbursable expenses for City Council Members. On March 23. 1984, the Budget and Finance Commit- ~ee submitted a memorandum to the City Council regarding suggested policy on reimbursable expenses for City Council ;lembers. After discussion at the City Council ~,leeting of March 28, 1984, the matter was referred back to the Budget and Finance Committee for s~udy and recommendation. We have met to review the guidelines suggested in ~he ]Iarch 23rd correspondence, recommendations from ~he discussiqn which ensued at ~he Council Meeting of ~arch 2Sth. and subsequent recommendations made by o[her Council !.~embers. As a result of our dis- cussions and review we recommend ~he following ~uidelines: [. MILEAGE - "Reimbursable ~Iileage" means miles ~raveled by Council ~Iembers by private conveyance. - !]aker~ield California, !!ay '" 19S /~ ~' · ~. . 4 - Page ? A. No mileage reimbursement will be allowed for travel to and from City Council ~Jeetings. B. Local mileage reimbursement will be allowed for travel to and from com- mittee meetings, commission meetings, board meetings, and other directly- related City Council activities. C. All Council authorized trips outside of the City Limits will be alIowed reimburseable mileage; however, Council ~Iembers should use City vehicles where- ever possible. Trips to meetings associated with the League of California Cities and the Kern County Association of Cities are to be considered author- ized in general and will not need specific City Council authorization. II. EXPENSES A. Expenses incurred by a Council Member in fulfilling the specific direction of the City Council shall be authorized for reimbursement. B. Where possible, City Council Members should obtain authorization from the City Council prior to incurring expenses. If prior approval by the City Council is not possible, any requests for the reim- bursement of expenses incurred must receive City Council approval prior to actual pay- ment To the requesting City Council Member. III. FORM FOR CITY COL~CIL REIMBURSABLE IlILEAGE AND EXPENSES A. Ail expenses must be documented as to time, place, persons, and purpose prior to author- ization for payment by the City Council. Such documentation mu~t be furnished on Form CCI, "City Council Member Expense Voucher" (the form is currently being designed and will be finished prior to the May 2, 1984 City Council Meeting). B. Each Council Member is to submit the Expense Voucher monthly, whether or not he is requesting reimbursement for expenses incurred. The form is to be signed and all appropriate receipts and supporting documents are to be a[Eached [o the Expense Voucher. C. Copies of each Expense Voucher are to be included with ~he voucher register in the Council Packets. This Committee recommends the City Council approve the above-stated guidelines as policy and place into affect immediately. ~ :Zakersf~e[d Cali£ornia !!ay '~ ~984 ~ ' . -. ~ Pa~e 8 UQon a motion by Councilman Rockoff, Budget and Finance Committee Re~ort No. 13-84 re~ardin~ Policy on Reimbursable Expenses for City Council ~.~embers. was received. Councilman Childs stated he will be traveling to Santa Clara and would feel more comfortable driving his own vehicle rather than a City vehicle. Councilman Rockoff made a motion to accept Budget and Finance Committee Report No. 13-84 regarding Policy on Reimbursable Expenses for City Council 5lembers, -and recommendations as outlined in the report. After a len~thly discussion, Councilman Rockoff stated he would amend the Budget and Finance Committee Report No. 13-84, Pa~e 3, III. B. to read as follows' B. "Each Council 5~ember is to submit the Expense Voucher monthly, if he is requestin~ reimburse- men~ for expenses incurred. The form is to be si~ned and all appropriate receipts and support- ink documents are to be attached to the Expense Voucher. if there are any." Upon a motion by Councilman Rockoff, Amended Budget and Finance Committee Report No. 13-84 re~arding Policy on Reimbursable Expenses for City Council ~embers. was accepted, with deletion of Item III. A. CONSENT CALENDAR (a) Allowance of Claims Nos. 5433 to $506, inclusive, in the amount of $338,544.98. (b) Claim for Damages from Harlan O. Voigts, 108 Atherton Court, Bakersfield. (Refer to City Attorney) (c) Improvement A~reement for Parcel 51ap Nos. 7059 and 7256 with Tenneco Realty Develop- ment Corporation. for construction of ~t::Drovements therein. Parcel 5~ap No. 7059 is located at the northwest corner of Gos- ford Road and ~Iin~ Avenue and Parcel ~ap No. 7256 is located southerly of 5~ing Avenue. easterly of Old River Road. (d) ¥ ' .,or,ce of Completion and Acceptance of Work on "Groundwater Recharge Area - Pho.~o ~". C~ntracz No. S3-212, with Cone,jo Contraczors, MEMORANDUM TO: LEE ANDERSEN, COMMUNITY SERVICES MANAGER July 8, 1995 FROM: FRANK FABBRI, PARKS SUPERINTENDENT ~. SUBJECT: COUNCIL REFERRAL--CITY SWIMMING POOLS At the City Council meeting of June 28, 1995 Councilmember .Carson requested information on the City's policy regarding location and construction of municipal swimming pools. I am not aware of any written policy on this issue prior to the adoption of the Park Element of the 2010 General Plan in 1990. In the early 1960's it was the City's intent to include swimming pools in most all neighborhood and community parks. As the City grew, additional infrastructure, in addition to neighborhood parks, were required. Funds for these new improvements were very competitive and therefore new park construction and improvements were often deferred. Lack of funding changed the City's plans on future park development, including swimming pools. The passage of Proposition 13 placed additional restraints on funding for parks and recreational improvements. In 1990 the Park Acquisition and Development Ordinance was passed which provides funding to purchase and construct future neighborhood parks with basic improvements. Funding for swimming pools in neighborhood parks is not included within the ordinance. The Park Element of the 2010 General Plan mentions swimming pools should be considered in the design of community parks and they should be situated near high schools. Minimum standards for a community park is 20 acres with a service area of 3 to 5 miles walking distance. The last community park constructed which meets the criteria for a swimming pool as outlined in the 2010 Plan is Patriots Park, constructed in 1975 and located at Ming Avenue and Stine Road. The continuing lack of available construction funds has made this project unrealistic. The City currently has ten (10) swimming pools. Three pools, Jefferson, Central and Beale are the oldest dating back to pre 1940. In 1957 the pool at Martin King Jr. Park was constructed. Four additional pools, Saunders, Wayside, Planz and Jastro were added in 1958 and 1959. In 1964 the installation of the Siemon Park pool was completed. The most recent municipal pool was built in 1994, thirty years after the Siemon Park pool, when a developer in southwest Bakersfield donated a swimming pool at the newly constructed S±lvercreek Park. COUNCIL REFERRAL (CITY SWIMMING POOLS) JULY 8, 1995 Construction costs for a swimming pool, similar to the one built in Silvercreek Park, is estimated at over $500,000. Annual maintenance costs for a municipal pool is approximately $30,000. The existing city swimming pools are open for swim lessons and recreational swimming for several months during the summer and is one of the more costly recreation programs. If discretionary funds for recreational facilities become available, one might consider additional swimming pools; but there are several neighborhoods within the City which are park deficient which should also be considered for funding of basic improvements. cc: Alan Tandy, City Manager Allen Abe, Assistnt Parks Superintendent Georgina Lorenzi, Business Manager File: pool