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HomeMy WebLinkAbout02/05/1996 B A K E R S F I E L D Patricia J. DeMond, Chair Irma Carson Kevin McDermott Staff: Dolores Teubner AGENDA SPECIAL MEETING BUDGET AND FINANCE COMMITTEE Monday, February 5, 1996 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 NOVEMBER 13, 1995 MINUTES 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. APPROVAL OF 1996 MEETING SCHEDULE - Teubner 6. NEW BUSINESS A. BINGO ORDINANCE - Skousen 1. PROPOSED ORDINANCE REVISIONS 2. REQUEST FROM BAKERSFIELD HIGH sCHOOL BOOSTER CLUB B. VALLEY COMMUNITIES WATER PROJECT - Bogart C. CONTRACT PROCEDURES FOR SERVICES UNDER $10,000 - Skousen D. ICE RINK FINANCING - Klimko 7. ADJOURNMENT NOTICE OF SPECIAL MEETING OF THE BUDGET AND FINANCE COMMITTEE OF THE COUNCIL OF THE CITY OF BAKERSFIELD NOTICE IS HEREBY GIVEN that the Budget and Finance Committee of the City Council will hold a Special Meeting for the purpose of a Committee Meetinq on Monday, February 5, 1996, at 12:15 p.m., in the City Manager's Conference Room on the second floor of City Hall, Suite 201, 1501 Truxtun Avenue, Bakersfield, California, to consider: 1. ROLL CALL 2. APPROVAL OF NOVEMBER 13, 1995 MINUTES 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. APPROVAL OF 1996 MEETING SCHEDULE - Teubner 6. NEW BUSINESS A. BINGO ORDINANCE - Skousen 1. PROPOSED ORDINANCE REVISIONS 2. REQUEST FROM BAKERSFIELD HIGH SCHOOL BOOSTER CLUB B. VALLEY COMMUNITIES WATER PROJECT - Bogart C. CONTRACT PROCEDURES FOR SERVICES UNDER $10,000- Skousen D. ICE RINK FINANCING - Klimko 7. ADJOURNMENT ubner, Assistant to the City Manager Date: January 30, 1996 O,,T:,,, FILE COPY ~ ~ ..~~A K~E R S F I E L D , Patficia J. DeMond, Chair ~ Al~anc}y, City, Ma~ra;~i;~ Irma Carson ,--~,~Staff: Dolores Teubner/ Kevin McDermott AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMrI'rEE Monday, November 13, 1995 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order at 12:15 p.m. Present: Councilmembers Patri¢ia J. DeMond, Chair; and Kevin McDermott Absent: Councilmember Irma Carson 2. APPROVAL OF THE SEPTEMBER 18, 1995 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS A. CONVENTION CENTER HVAC Staff in conjunction with Honeywell made a presentation to the Committee which summarized the results of Honeywell's recently completed technical AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE ? _ Monday, November 13, 1995 Page -2- report on the Convention Center HVAC retrofit project. The technical proposal outlined the scope of work for the project including the cost of $2,489,000. Honeywell indicated that there were three additional work items that needed to be addressed, which had not been included in the original cost estimate. The first was $85,000 for additional core related structural work and the second was $80,000 for additional asbestos work. The third item addressed structural repairs to certain floor and wall areas. The cost is unknown at this time, but Honeywell estimated that such repairs could reach $1 million. Additional study and testing is needed, including core sampling, in that it was felt the reinforcing steel may have deteriorated from chemical erosion. It was further indicated that the HVAC retrofit could be completed without the structural repairs being incorporated at this time by utilizing some reinforcement work under the floor in question, but that the issue would need to be addressed at some time in the future. Staff indicated funds are available in the Building Replacement Reserve. Chairman DeMond requested staff provide an estimate of the cost of the repairs if done now, or later, taking into consideration that the applicable HVAC equipment would need to be removed and reinstalled should the work be completed later. Staff asked that the Committee recommend approval of the scope of work outlined, including the two additional items and study of the structural damage. The Committee voted to recommend this to the City Council. Councilmember McDermott directed staff to develop an estimate of what it would cost the city to build a new convention center facility, or replace the back half of the current center. 6. NEW BUSINESS The Committee, for the public's convenience, voted to take New Business issues in the following order: C., A., D., and B. A. SIDEWALK PUSHCART VENDORS The City Attorney presented an amendment to Chapter 5.45 of the Municipal Code which provided for other merchandise to be sold through sidewalk vendors. Currently only food and drink is allowed to be sold through sidewalk pushcart vendors. A member of the public spoke in favor AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, November .13, 1995 Page -3- of the amendment, indicated that sales of all merchandise by sidewalk vendors should be allowed as long as the City regulates it. The Committee cited concerns from business owners over the unfair competition from sidewalk vendors. The Committee voted to make no change to the current ordinance and continue to allow only food and ddnks to be sold. B. FALSE ALARMS A representative of the Police Department presented a request from the local school districts in Bakersfield to get a waiver or reduction of the City's charges for false alarms. Staff indicated that the false alarms are quite costly to the Police Department because they require 3 to 4 patrol units to respond. It was further stated that without a penalty for frequent false alarms, the school district's would have less incentive to fix malfunctions in the alarm systems. The Committee indicated that the school districts are not charged for the first four false alarms at each site, per year. The Committee voted to deny the request for a waiver or reduction in charges for school districts. C. THE BAKERSFIELD SIGN Staff presented the Committee with the current options for addressing the Bakersfield Sign issue. Based on recent discussions with Frank Collins of Mesa Madn Raceway, it was determined that if Mesa Mahn took the structure that they would remove the sign portion of the bddge and replace it with advertising. The Save Our Sign Committee indicated that this was not acceptable. The other alternative was to move ahead with a Caltrans study of the structure to determine what improvements would be required to refurbish the sign. The City Manager indicated that the Private Committee should provide the $5,000 match to the $5,000 in Caltrans funds for the study. He stated that if the City funded the study that it might inhibit private donations for the refurbishing and maintenance of the structure because of the perception that the City was taking care of it. Dr. Patel, the current owner of the sign, asked for City involvement in the funding. The Committee discussed the various options available for funding the Caltrans study and voted to recommend that the total cost of the study be paid 50% by Caltrans, 25% by the City and 25% by the private group not to exceed a total of $10,000. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, November 13, 1995 Page -4- D. AMENDMENT OF CDBG CONSOLIDATED PLAN Staff summarized the proposed amendment which included funding for the Alliance Against Family Violence and the Boys and Girls Club. Staff indicated that Councilmember Carson had objected to the funding for the Boys and Girls Club because their request had been considered outside of the City's annual competitive process for receiving CDBG grants. Staff stated that the funding was to match State funding that the organization had received for facility rehabilitation and did not fit into the budget cycle. Funds for the Boys and Girls Club grant would come from the multi-family rehabilitation program, but would still leave approximately $80,000 for the multi-family program. The Committee discussed the possibility of redirecting all of the funds from this program. The Committee agreed to recommend approval of the amendment as presented, to the City Council. 7. ADJOURNMENT The meeting was adjourned at 1:50 p.m. cc: Honorable Mayor and City Council MEMORANDUM November 14, 1995 TO: BUDGET AND FINANCE COMMITTEE FROM: LAURA C. MARINO, Assistant City Attor SUBJECT: DRIFT BINGO ORBINANCE I have been asked to summarize the changes made to the bingo ordinance. First, the entire ordinance was reorganized to follow the same general organization as all the other business permit ordinances. This makes the ordinance easier to read and understand, as well as enforce. The other changes are as follows: 1. The application requirements have been changed. It is no longer necessary that the application list the names and addresses of each of the organization's directors, officers and employees. 2. All redundant provisions were eliminated (e.g., the statement that all permit holders must comply with the provisions of the ordinance.) 3. The revocation and appeal provisions were re-written to follow the same procedure as the revocation and appeal procedures provided for in the other business permit ordinances. 4. The criminal penalty provision was removed, as it is covered elsewhere in the municipal code. 5. The list of other departments to which the city manager is required to refer the applications for comment has been eliminated. This is unnecessary in an ordinance. The city manager may refer the applications to whomever he chooses. 6. The current fifty dollar application fee has been changed to a fee to cover the costs of issuance of the permit and annual regulation of the activity. These changes are designed to streamline the application process, eliminate the requirement for provision of very burdensome and unnecessary information, and eliminate the redundancies found in the current ordinance. LCM/meg OR~S-2/ME.M~/B~.ME~ cc: Alan Tandy, City Manager Gregory Klimko, Finance Director william C. Descary, Treasurer THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK-PRODUCT PRIVILEGE ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 5.12 OF THE BAKERSFIELD MUNICIPAL CODE REI~TINO TO BINOO G~S. lie I~ ORDAII~D by the Council of the City 'of Bakersfield a~ follows: SECTION 1. Chapter 5.12 of the Bakersfield Municipal Code is hereby amended to read as follows: Chapter 5.12 BINGO GAMES Sections: 5.12.010 Definitions. 5.12.020 Permit - Required. 5.12.030 Application - Issuance - Fee. 5.12.040 Regulations. 5.12.050 Financial report required. 5.12.060 Revocation. 5.12.070 Appeal. 5.12.010 Definitions. Whenever used in this chapter, unless a different meaning clearly appears from the context, the words set out in this section shall have the following meanings: A. "Applicant" means an association or organization applying for a permit to conduct bingo games. B. "Bingo" means a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card which conform to numbers or symbols selected at random. Bingo includes cards having numbers or symbols which are concealed and pre-printed in a manner providing for distribution of prizes. C. "Eligible organization" means one of. the following: 1. Organizations exempted from the payment of the bank and corporation tax by Section 23701(a), 23701(b), 23701(d), 23701(e), 23701(f), 23701(g), and 23701(1) of the Revenue and Taxation Code of the state; 2. Mobile home park associations; 3. Senior citizens' organizations with a membership requiring that the member, or the member's spouse be fifty years of age or older. B. "Person" means any individual, partnership, corporation or association of any nature whatsoever. 5.12.020 Pez~ait - Required. It is unlawful for any person to operate or participate in the operation of a bingo game cabaret within the city in violation of this chapter or without having a valid permit therefor in accordance with the provisions of this chapter. 5.12.030 Application - Issuance - Fe~. A. Applications for annual permits under this section shall be made on forms to be furnished by the city manager or his designee, shall be submitted no less than thirty days prior to commencement of any game, shall be signed under penalty of perjury by the two officers of the applicant, including the presiding officer, and shall require the following information: 1. The name of the applicant and a statement that applicant is an eligible organization pursuant to subsection C of Section 5.12.010 of this chapter; 2. The names and telephone numbers of two officers of the applicant, including the presiding officer; 3. The street address of the particular property within the city Owned or leased by the applicant used by such applicant for an office or for performance of the purposes for which the applicant is organized, on which property bingo games will be conducted; 4. The proposed day of the week and hours of operation of the bingo games; 5. The business tax certificate number of the business; 6. Prior permits held by the applicant in the past. three years and whether such permits were ever revoked or suspended, and the reasons therefor. B. The application shall be submitted with the following: 1. Payment of a fee not to exceed the cost of processing any such application and inspecting such business as set forth in Section 3.70.040; - 2 - 2. A Certificate of Determination of Exemption under one of the Revenue and Taxation Code Sections listed in subsection C.1 of Section 5.12.010 or a letter of good standing from the Exemption Division of the California Franchise Tax Board showing the required exempted status; in the case of an applicant mobile home park association, the applicant shall submit a statement that the members thereof are residents of a duly permitted mobile home park located within the city; in the case of an applicant senior citizens organization, the applicant shall submit a statement specifying the qualifications for membership in such organization. Mobile-home park associations and senior citizens' organizations are not required to be exempted from the bank and corporation tax. 3. A statement signed by the presiding officer of the applicant that no director, officer or salaried or paid employee of the applicant is a director, officer or salaried or paid employee of an organization or association permitted to conduct bingo games under the provisions of this chapter. C. The city manager or his designee shall, in his discretion, issue a permit if he finds: 1. That the applicant has actively engaged in the activities described in its articles of incorporation or bylaws within the city for a period of not less than six months immediately preceding the date of its application. 2. That the applicant is an eligible organization. 3. That the application is complete and truthful; 4. That no director, officer or salaried or paid employee of the applicant is a director, officer or salaried or paid employee of an organization or association permitted to conduct bingo games under the provisions of this chapter. 5. The building and the business for which the application is made will be maintained and conducted in accordance with all laws of the city and the state, including, but not limited to health, structural soundness, fire safety and zoning. 6. That a valid business tax certificate or appropriate Certificate of Exemption, or other certification as set forth in subsection B.2 of this section has been issued for the applicant. 7. That a permit issued under this section to this applicant has not, in the past three years, been revoked, unless the city manager or his designee finds that the reasons for such revocation are unrelated to this application. 8. That no more than thirty permits to conduct bingo games will be in_force and effect at any one time. Permits shall be granted in order of application. D. Such permit may be issued with conditions to ensure the operation of the bingo games in a lawful and peaceful manner. 5.12.040 Requlations. A. Any permit issued pursuant to this chapter shall be non- transferrable, and shall be valid only as to the applicant and location provided on the application for such permit. B. The total value of prizes awarded during the conduct of any bingo games shall not in any event exceed two hundred fifty dollars in cash or kind, or both, for each separate game which is .held. C. Except as provided in subsection D of this section, no permittee with gross monthly receipts from bingo games, including pull-tabs, exceeding five thousand dollars shall: 1. conduct more than twenty-five games of bingo during that one period per week during which the permittee is authorized to conduct such games; or 2. give away any door prizes, raffle, food, bingo cards, pull-tabs, trips, services, merchandise or any cash prize or promotion of any kind except such prizes as are authorized by subsection A of this section. D. The provisions of subsection C of this section shall not apply to any permittee which, during the preceding two-month reporting period, used or contributed at least ten percent of its gross receipts from bingo games, including pull-tabs, for charitable purposes not related to the conduct of bingo games, provided such permittee files the report required by Section 5.12.050. E. With respect to organizations exempt from payment of the bank and corporation tax by Section 23701(d) of the Revenue and taxation Code, all profits derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Such profits shall be used only for charitable purposes. F. With respect to other organizations authorized to conduct bingo games pursuant to this chapter, all proceeds derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Such proceeds shall be used only for charitable purposes, except as follows: 1. Such proceeds may be used for prizes; 2. A portion of such proceeds not to exceed ten percent of the proceeds after the deduction for prizes, or five hundred dollars per month, whichever is less, may be used for rental of property, overhead, including the purchase of bingo equipment and administrative expense. Such proceeds may be used to pay license fees. G. No individual, corporation, partnership or other legal entity except the permittee shall hold a financial interest in the conduct of a bingo game. H. A bingo game shall be operated and staffed only be members of the permittee organization. Such members hall not receive a profit, wage or salary from any bingo game. Only the permittee shall operate such game, or participate in the promotion, supervision or any other phase of such game. I. All bingo games shall be open to the public, not just to the members of the permittee organization. J. Attendance at any bingo game shall be limited to the occupancy capacity of the room in which such game is conducted as determined by the fire department and building department of the city in accordance with applicable laws and regulations. K. The permittee shall not reserve seats or space for any person. L. Games shall be conducted only on property owned or'leased by the permittee, which property is used by such organization for an office or for performance of the purposes for which the organization is organized. In the event the described property ceases to be used as an office and as a place for performance of the purposes for which the permittee is organized, the permit shall be invalid. Nothing in this chapter shall be construed, however, to require that the property owned or leased by the permittee be used or leased exclusively by such organization. M. No person under the age of eighteen years of age shall be allowed to participate in any bingo game. N. No person who is obviously intoxicated shall be allowed to participate in any bingo game. O. No permittee shall conduct bingo games more than six hours of any twenty-four hour period, nor more than once per week; -- 5 -- further, no location, including a single building or a series of contiguous rooms or buildings, shall be utilized to conduct bingo games more than six hours out of any twenty-four hour period nor more than once per week. No bingo game shall be conducted before ten a.m. nor after two a.m. of any day. The day upon which the permittee shall be authorized to conduct bingo games shall be stated on the license. P. No person shall be allowed to participate in a bingo game unless the person is physically.present at the time and place in which the bingo game is being conducted. Q. Permits shall be valid for one year from the date of issuance only. 5.12.050 Financ£al report required. A. Each permittee shall keep a complete and accurate written record in connection with its operation, conduct, promotion, supervision and any other phase of bingo games. B. City officers and employees shall be given access to and shall have the right to examine and audit original records of each permittee pertaining to bingo, and shall be furnished copies thereof during regular business hours. C. Each permittee shall, not later than the fifteenth calendar day of each month, file with the city treasurer a monthly income and expense report on its bingo game operations. The form of such report, identifying all required information, shall be provided by the city. Reports shall demonstrate compliance with the provisions of subsection D of section 5.12.050 if an exemption from subsection C of that section is claimed for the month such report is filed. 5.12.060 Revocation. Any permit issued pursuant to this chapter shall be immediately revoked by the city manager or his designee whenever he finds: A. That misrepresentations were made on the application; or B. That any of the terms or conditions of said permit have been violated, or that the bingo games have been operated in violation of state or federal law, or the provisions of this chapter. - 6 - 5.12.070 Appeal. A. Should any applicant be dissatisfied with the decision of the city manager or hi~ designee not to grant a permit or for the _.revocation of a permit, then said applicant may, no later than ten days after notice of such decision is deposited in the United States mail, addressed to the applicant or permittee at the address provided on the application, make written objection to the city council setting forth the grounds for dissatisfaction, whereupon the council shall hear said objections at a regular meeting no later than three weeks following the filing of the objection with the city clerk. The applicant shall be given written notice no less than three days prior to said hearing. The council may, upon said hearing, sustain, suspend or overrule the decision of the city manager or his designee, which decision shall be final and conclusive. B. Pending the hearing before the council, the decision of the city manager or his designee shall remain in full force and effect and any reversal thereof by the city council shall not be retroactive but shall take effect as of the date of the council's decision. SECTION 2. This Ordinance shall be posted in accordance with the Bakersfield Municipal Code and shall become effective thirty (30) days from and after the date of its passage. o0o - 7 - I HEREBY CERTIFY that the foregoing Ordinance was passed.and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED BOB PRICE MAYOR of the City of Bakersfield APPROVED as to form: JUDY K. SKOUSEN CITY ATTORNEY By: LAURA C. MARINO Assistant City Attorney LCM/meg Mcg-ORDg.% 2 \ B INGO.O RD -N~v¢~ 14, 1995 - 8 - ~ ~ - Bakersfield High School Booster Club ~ 1417 tt St. =- Bakersfield. Ca. 93301 January 9, 1996 Bakersfield City COuncil 1501 Truxton Ave. Bakersfield, Ca. 93301 Attention- Councilwoman Pat DeMond Re- Amendment to Ordinance Codes 5.12.200 and 5.12.040(: \ Dear Ms. DeMond. The Bakersfield High ~r Club is asldng that the above city ordinance codes be amended to allow our Booster Club and other High School non-profit organizations to continue to rase money through Bingo operations. As you Jtnow, the High School District buUdings have gone exclusively non-smoking. We hnve been Aaving our Bingo in tim cafeteria on the school site. The result of the non-smoking ordinance is that tho attendance at our weetly. Bmgo nigAts, as well as other schools su(~ as West arid Foothill, has declined to the point that we can no longer raise money for tae various groups such as, Band, Forensics, Pine Arts, Drama, and Athletics, that depend on this as their major, and tn many cases their only, £undraiser. tSingo wttl cease to exist as a fun~ for the High Schools within the city limits, if these codes are not amended quictly. Needless to say, this would cause a great 13~-dsttip on these worthwhib activities. The Bakersfield High Booster Club has found a building near tim campus to lease to continue our weekly Bingo nigAts. We would like to offer the use of the buildm8 to all the other High Schools to continue their Bingo regals or to s-tm-t up Bingo as a funda'mser. ~rhe other booster clubs would p~y for t~e use or' the builcLi~ ta~ we do) but would receive ~11 the profits .~rom t~e~r particular Bingo mgbt. This is why we are a.~tng fa' the amendments in the above ordinance cedes. Code 5.!2.200 states that a Bi~o operauon may be held only one time per weelt per location. We would like th~s changed so that each school would be able to hold their Bingo one time per week even though it is at the same site. Also. Code 5.12~040C stat~-s ~at ea~la non-pr~it organization must have their ~ ~ ~ ~ ~ ~ ~d ~ ~ve ~ ~r Oub ~ ~ ~ ~ si~. We ~d ~ _. ~_o? importantly. ?? ae~ asttn~ that these to ~ ~ ~n-~r~it ~u~s o~. T~ ~ B~o p~l~s ~at~ at ~s si~. ~ p~mpt at~ ~ ~ matter w~d b~ S~rely, B~e~ield H~ ~1 ~r Oub 01/~0/96 TUE 17:01 FAX ~0.5 3;'6 309~ C O B WTR EESRCS ~002 BAKERSFIELD Alan Yandy · City Mana§er ,January 10, 1996 Mr. Randall Abbott, Vi~ President Valley Communities, Inc. 531 California Avenue Bakersfield,' CA 93304 RE: AGREEMENT NO. 90-78RMPROVEMENT FUNDS Dear Mr. Abbot~: Thank you for the opportunity to meet and consider VCI's request that the City release funds now being held to insure improvements to VCrs property. Our files indicate that as a result of previous improvements made by VCI, the City was able to release $144,587.07 on April 24, 1995 for on-site wastewater storage facilities and on September 25, 1995, an additional $177,662 was reimbursed for tailwater return systems constructed by VCI. For your current information, our records indicate the improvement fund balance, including interest, stood at $208, Ig0 as of December 31, 1995. While the City agrees the development of section 12 will benefit the property and allow more effluent to be taken, the contract between the City and VCI is very specific about the timing and release or said funds. As we discussed, VCI must first submit plans to the City for City review and approval, then VCI must construct the approved facilitieS, then the City will inspect and approve the facilities, and thereafter the funds can be released. City staff is constrained by the contract and cannot release funds except as set forth therein. We think an amendment to the contract is unwise. The methodology set forth for payments to be released makes good sense and protects the City from any misuse of the funds. The agreement can be assigned and the City will have to live with whatever amendment it makes with any entity who receives the assignment; thus, the protections are important for the City's cont/nued long term - operation of wastcwater at Plant No. 3. The City must insure thc improvements are actually constructcd to City specifications prior to the release of any additional funds at this time. If you have any questions or need further information at this time, please call. //Alan Tandy/ c/'-- /~' -/ City Manager ,/ AT:rs City of Bakersfield · City Manager's Office · 1501 Truxtun Avenue Bakersfield - California · 93301 B A K E R S F I E L D TO: BUDGET AND FINANCE COMMITTEE ADDENDUM ITEMS FOR THE BUDGET AND FINANCE COMMITTEE PACKET FOR THE FEBRUARY 5, 1996 MEETING. ITEM: NEW BUSINESS 6A.2. 1. Additional letter from the Bakersfield High School Booster Club. 2. A faxed note to the City Manager. Dolores Teubner February 2, 1996 cc: Honorable Mayor and City Council Public Packet Addend-,~m: January 9, i996 Letter Bakersfield Booster Club ~417 'H' Street Bakersfield, Ca. 93301 The ~o!lowing Schools and Representatives have committed to playing Bingo at our ~acult~: Ridgeview High School: Jim Wessner - Athletic Rooster Clu3o President Dan Sh~-non - Athletic Director Ridgeuiew High School West High School: Roy Byers - Ban~ Booster Club Footkill High school: Jack Gillette - ¥.~. Athletic Booster Club Ja~ Graves - Treasur~, Athletic Sooster Club Sincerei}-, Dennis Walker ~H$ Athletic Booster Club President February 5, 1996 CHRONOLOGY - 1-5 DISPOSAL SITE Valley Communities, Inc. DATE ITEM · August 1985 Original Agreement No. 85-142 with Tenneco-West, Inc. entered into for pipeline and disposal site. · September 1988 California Regional Water Ouality Control Board issued Order No. 88-172 setting wastcwatcr reclamation requirements for I-5 Disposal Site. · April 1990 Valley Communities, Inc. (V.C.I.)purchased I-$ Disposal Site from Tenneco-West, Inc. and entered into new assignment Agreement No. 90-78 with City; trust fund established for future improvements to disposal site. · February 1995 V.C.I. requests City to provide reimbursement for capital improvements made by V.C.I. · April 1995 Following field audit of 1-5 site improvements, $144,587.07 of trust funds released for on-site reservoir storage. Further information requested for other (tail-water) improvements to site. · May 1995 V.C.I. provides additional information on disposal site capital improvements. Following review of data and audit of site facilities, additional $177,662.00 reimbursed from trust fund for actual tail-water return systems constructed by V.C.I. The reimbursement was conditioned on full compliance t° terms of contract - specifically, the requirements for prior City approval of plans before future improvements would quali~ for reimbursement. · January 1996 V.C.I. requests release of trust fund monies to pay $90,000 settlement with U. S. Fish & Wildlife Service to mitigate endangered species located on undeveloped land located in Section 12 of disposal site. IN SUMMARY: Trust fund balance stood at $208,180 as of December 31, 1995. Pursuant to the Agreement (attached), the trust fund balance over $200,000 (plus accrued interest) will be automatically reimbursed to V.C.I. on 4/4/97; the balance over $100,000 (plus accrued interest) will be reimbursed on 4/4/98; all remaining balance (plus accrued interest) will be reimbursed on 4/4/99, and will zero out the remaining trust fund balance. Effectively, V.C.I. can make improvements to the disposal site for direct reimbursement or simply wait to receive the trust fund monies over the next 3 years. C:BOGART/VCI;I-5 DISPOSAL $1TE;CHRONOLO DEO 9 - 1994 ~UBUC WORldS DEPARTMENT ,9.0."78 AGREEMENT NO. CONDITIONAL CONSEN~ TO ASSIGNMENT OF CITY AGREEMEF~ NO. 85-142~ AS AMENDED THIS AGREEMENT made and entered into this &th day of April, 1990, by and between the CITY OF BAKERSFI~.?.n, a municipal corporation, referred to herein as the ("City"), and COMMUNITIES, INC, a California corporation, herein after referred to as ("VC"). W I TNES SETH W~RREAS, VC has entered into an escrow agreement pursuant to which VC will purchase from Tenneco West, Inc. approximately 4,700 acres of property subject to use as a disposal site for treated wastewater effluent from the City's Wastewater Treatment Plant No. 3, pursuant to City Agreement No. 85-142 as amended (hereinafter, the "Agreement", and hereinafter referred to as the "disposal site"); and ~, Tenneco West, Inc. is willing to assign to VC its rights and obligations pursuant to the Agreement, and VC is willing to accept assignment from Tenneco West, Inc. of said rights and obligations; and WHEREAS, pursuant to the terms of the Agreement, the City's consent to its assignment is required, may not be unreasonably withheld, but the City is expressly authorized to consider factors such as financial capacity of a possible assignee in determining whether to give consent to assignment; and WHEREAS, representatives of the City and VC have met and discussed the assignment and the City has reviewed information submitted by VC as to VC's ability to perform its obligations under the Agreement; and WHEREAS, in consenting to such assignment, the City would be releasing from all obligation under the Agreement a party (Tenneco West, Inc.) whose financial capacity to perform the Agreement is unquestionable, and would be accepting, in its place, a newly formed corporation with significantly lesser financial capacity; and WHEREAS, representatives of the City and VC have discussed the foregoing and have agreed that the consent to assignment may appropriately be subject to the conditions set forth herein below. ORIGIN~ THEREFORE, in consideration of the respective and mutual covenants hereinafter contained and made, and subject to all the terms and conditions set forth below, THE PARTIES DO HEREB¥ AGREE AS FOLLOWS: 1. That VC hereby covenants and agrees to perform all of the obligations under said Agreement effective as of the date of close of escrow between Tenneco and VC. 2. That the City's consent to assignment of the agreement to VC is subject to the condition precedent that Tenneco West, Inc., shall have assigned its reclamation permit from the State Regional Water Quality Control Board for the disposal site to VC. VC shall deliver timely written notice to the California Regional Water Quality Control Board (hereinafter referred to as "CRWQCB") of the assignment of the Agreement to VC from Tenneco, as required under existing policies and regulations of CRWQCB, and shall perform all requirements of the land owner pursuant to all present and all future policies and regulations of the Central Valley Region of CRWQCB, including but not limited to performance of the requirements set forth in Order No. 88-172 titled "California Regional Water Quality Control Board, Central Valley Region, Monitoring and Reporting Program No. 88-172 for Tenneco West, Inc., Land Application Site, Kern County". 3. That funds payable pursuant to Paragraph 3 of the Agreement shall be withheld by the City in accordance with the following. o f---~.~na 1 ~--- s t o rag~-~ =uli i u i u~_~r~u~e-~u ~Sp6 S a ~ and furthermore to provide a fund of cash for reimbursement to the City for any work done by the City pursuant to Paragraph 5 of this agreement, VC agrees that the sums specified in Exhibit "A" shall be withheld, 25% f~om each quarterly payment, from funds otherwise payable to VC by the City pursuant to Paragraph 3 of Agreement 85-142. Said funds shall be deposited in a federally insured savings account or certificate of deposit in a financial institution at an office or branch within the City of Bakersfield. All interest on said funds shall accrue in the accounts in which the funds are deposited. VC shall have the right to name the institutions in which such accounts are carried and not more than $100,000, plus accrued interest, shall be carried in any one institution. The funds -- 2 -- ORIGIN~ in said accounts the City's costs incurred pursuant to Paragra below. VC's expenditures for such purposes shall only be reimbursable from ..such withheld funds-a~d accrued inter~t ~f the .~mprovements made by VC were pursuant to and in__ accordance with plans approved in advaDce in 'writing by the City. The City s~hall not unreasonably withhold its approval of any such plans. Within 30 days of the sixth anniversary date of this agreement, and each such date thereafter until the balance of all accounts established pursuant hereto, including principal and interest, have been returned to VC, City shall make to VC payments as se~=f~th in Exhibit "A". upon completion to City's reasonable satisfaction on the disposal site of a reservoir with a capacity of not less than 1,000 acre feet with an impermeable lining, any balance withheld by City in any such account shall be paid to VC or any bond or letter of credit returned to VC. b. In lieu of the withholding provided for in subparagraph b of Paragraph 2., above, VC may elect to post and post with the City a performance bond(s) or irrevocable letters of credit, payable upon demand by and to the City. Any such performance bond shall reference this agreement and shall specifically be to pay all capital and operating costs incurred by the City in meeting requirements of any and all regulatory agencies, pursuant to Paragraph 5, below. Such bond or bonds shall be in the annual amount specified in Exhibit "A". Should VC not be able to obtain a replacement performance bond for any year after the first year, VC shall deposit with the City all sums that would be held by the City cumulatively through that year, including interest which would have been accrued, assuming an 8% investment rate, pursuant to subparagraph b of Paragraph 2. above, and the City may withhold any funds otherwise due VC pursuant to . Paragraph 3. of the Agreement up to such cumulative -- 3 -- ORIGINAL amount if such funds are not otherwise deposited with City by VC. Should VC fail to make all deposits required pursuant to this subparagraph within ten (10) days of notice from City to do so, such failure shall be deemed a material breach of this agreement. c. In the event sufficient monies are not provided to the City through the escrow for the sale of the disposal site to VC for the call of all outstanding bonds of Assessment District 86-3 , then in addition to funds withheld pursuant to any other provision hereof, the City may withhold sufficient funds each year to pay all real property taxes and assessments against the disposal site, such funds to be released to VC upon receipt by the City of written evidence that all such taxes and assessments, including any special district taxes and assessments, have been paid. 4. That VC shall provide written notice to the Director of Public Works of the City within three business days of receipt of any written communication from any state or local regulatory agency of any deficiency in operations of the disposal site, including a copy of such communication. The written notice may be received by the City from either VC or from the aforesaid state or local regulatory agency, but it shall be the responsibility of VC to confirm that the City has in fact received said written notice within the aforesaid notification period. The parties agree that if such notice is not given as provided herein, it would be extremely difficult if not impossible to ascertain the actual damages sustained by the City, and liquidated damages in rhea mount of $500.00 per calendar day is a fair and reasonable estimate of such damages. That sum is not to be construed in any sense as a penalty. 5. That the City may enter upon and operate the disposal site and make necessary improvements, all at VC's expense, should VC's performance or non-performance in managing the disposal site lead to threatened regulatory agency action which might jeopardize the City's legal ability to discharge treated effluent to that site or to issue building or sewer connection permits for any structure that would be served by the City Wastewater Treatment Plant No. 3; provided, however, that the City shall have first given written notice to VC of the threatened action of the regulatory agency and shall have given VC the opportunity to take action to address such matters to the satisfaction of the regulatory agency; provided, further, that the City may immediately - 4 - enter and take all necessary corrective action if such action has not been completed by VC within 30 days prior to any deadline set by an such agency, or upon such deadline if the deadline falls within 30 days of the date of City's notice to VC. The City shall give VC 3 days written notice of its intent to withdraw funds held pursuant to subparagraph a, above, to reimburse City its costs incurred under this subparagraph. 6. Subject to and in consideration of the foregoing, the City consents to assignment of the Agreement from Tenneco West, Inc., to VC. 7. NOTICES. All notices relative to this Agreement shall be given in writing and shall be sent by certified or registered mail and be effective upon depositing in the United States mail. The parties shall be addressed as follows, or at any other address designated by notice: CITY OF BAKERSFIELD City Hall 1501 Truxtun Avenue Bakersfield, California, 93301 VALLEY COMMUNITIES, INC. %Eldon R. Hugie, President 5329 Office Center Court, Suite 130 Bakersfield, CA 93309 8. ASSIGNMENT. This contract shall not be assigned by any party, or any party substituted, without prior written consent of all the parties. 9. INDEPENDENT CONTRAS. This Agreement shall not be construed as forming a.partnership or any other association with vC other than that of an independent contractor. 10. MERGER AND MODIFICATION. This contract sets forth the entire Agreement between the parties and supersedes all other oral or written representations. This contract may be modified only in a writing approved by the City Council and signed by all the parties. TAX NUMBERS. VC'S Federal Tax ID Number . VC is a corporation? Yes X No . oOo -- 5 - OR~G!NAL IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. CITY OF BAKERSFI~.n L/'/. /~../ ~,~--~ ,~. ~' ~ - ~ ' Mayor APPROVED AS TO FORM: City Attorney Public Works Director Fine'rector Title AJS/pam Ti~l~~ AGRE~ENT%VC-T~ECO . K 3/30/90 - 6 - VALLEY COMMUNITIES, INC. CUMULATIVE AMOUNT CUMULATIVE PER AMOUNT PARAGRAPH 3b CONTRACT PER PERFORMANCE YEAR DURING PARAGRAPH 3a BOND OR NO. THE PERIOD CASH BOND LETTER OF CREDIT I 4/4/90 - 4/3/91 $ 50,000 plus 100% $ 50,000 Accrued Interest 4/4/91 - 4/3/92 $100,000 plus 100% $100,000 Accrued Interest 3 4/4/92 - 4/3/93 $250,000 plus 100% $250,000 Accrued Interest 4/4/93 - 4/3/94 $400,000 plus 100% $400,000 Accrued Interest 5 4/4/94 4/3/95 $500,000 plus 100% $500,000 Accrued Interest 6 4/4/95 - 4/3/96 $400,000 plus 80% $400,000 Accrued Interest 7 4/4/96 - 4/3/97 $300,000 plus 60% $300,000 Accrued Interest 4/4/97 - 4/3/98 $200,000 plus 40% $200,000 Accrued Interest 9 4/4/98 - 4/3/99 $100,000 plus 20% $100,000 Accrued Interest NOTE: Amounts are to be increased or decreased effective on the first business day of the period. EXHIBIT A BAKERSFIELD PUBLIC WORKS DEPARTMENT MEMORANDUM TO: Alan Tandy, City Manager FROM: Raui M. Rojas, Public Works Director~'ff/' : ,J ~ . DATE: January 17, 1~)6 SUBJECT: ONE-PAGE, SMALL DOLLAR SERVICES CONTRACT There are numerous minor to medium maintenance and repair projects that could be expedited, resulting in both time and dollar savings, if we had a simple contract form for projects under $10,000 (1-page Draft agreement attached as Exhibit "A'). The following is a partial list of projects: : 1. Brick work for handicapped ramp at City Hall 2. Handrail work for handicapped ramp at City. Hall 3. Floor covering projects for various City buildings 4. Roof repairs at various City buildings 5. Minor remodel work for City facilities 6. Minor sewer line repair work that cannot be done by City forces 7. Manhole and sewer line location services 8. Hazardous materials clean up services 9. Asphalt and concrete grinding 10. Specialty asphalt and concrete repair 11. Window covering services - miniblincis, etc. 12. Posthole digging services - light poles 13. Trucking services - moving materials 14. Digester cleaning - sewer plant 15. Digester repair - Wastewater 16. Crane services 1-7. Sludge pipeline repairs - Wastewater 18. Certification of electrical safety mechanisms - Cogen plants 19. Repaint clarifiers - Wastewater 20. Small Geotectmical contracts 21. Shade structure consla-uction at Deveiovment Services Building 22. Curb extension on Convention Center i~oof 23. Roof repairs at Convention Center All of the above mentioned projects have been done m the recent past. Due to our current conlxact policy (see Exhibit "B" -- standard agreement form), these projects were unnecessarily delaved and in most cases increased the costs both in staff time and the amount paid to the contrzctor. ADMINISTRATIVE REPORT TO: Honorable Mayor and Councilmembers DE~ARTMI!IVr HEAD ~- C~ FROM: Judy K. Skousen crrY ATtORNeY '~ ~ City Attorney CITY MANAGER DATE: January 31, 1996 SUBJECT: An Ordinance Amending Section 3.20.105 of the Bakersfield Municipal Code Relating to Contract Procedures Not Involving the Purchase of Goods. RECOMMENDATION: Staff recommends adoption of the Ordinance. BACKGROUND: Current City contract procedures make it unreasonably difficult to procure servicea for small jobs and often result in smaller contractors not being able to participate in City projects, even though they are for diminutive dollar amounts. This ordinance change will allow contracts for dollar amounts below $10,000 to be processed with signatures from the department head and finance director only. They will still be filed with the City Clerk. Council held first reading of the ordinance on January 24, 1996. This matter was referred to the Budget and Finance Committee for discussion at their meeting on February 5, 1996. The Committee's recommendation will be announced at this meeting. ADD/meg A D MIN 9 5..-6 CONTR-AMT.DB Jammry 31, 1996, 9:03nm ORDINANCE NO. AN ORDINANCE AMENDING SECTION 3.20.105 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO CONTRACT PROCEDURES NOT INVOLVING THE PURCHASE OF GOODS. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Section 3.20.105 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.105 Contract procedure - Contracts not involving the purchase of goods. A. Amounts under ten thousand dollars. Ail contracts not involving the purchase of goods under which the city is obligated to pay under ten thousand dollars shall be set forth in writing approved as to form by the city attorney, signed by a city department head, and the finance director, and filed with the city clerk. B. Amounts between ten thousand and twenty thousand dollars. Ail contracts not involving the purchase of goods under which the city is obligated to pay between ten thousand and twenty thousand dollars shall be set forth in writing approved as to form by the city attorney, signed by the mayor, a city department head, the city attorney, the finance director, and filed with the city clerk. C. Amounts over twenty thousand dollars. Ail contracts under which the City is obligated to pay twenty thousand dollars or more, whether or not such amounts will be paid or reimbursed by a third party, shall be authorized only by the city council. Such contracts shall also require the signatures set forth in subsection B. of this section. D. Amendment to contracts. Any amendment or modification of any contract subject to the provisions of this section shall be set forth in writing and signed as required by subsection B. of this section. Contracts requiring city council authorization, except for public works contracts, may not be amended except by council action. Amendments cumulatively exceeding twenty-five percent of the original amount shall be authorized only by the city council. E. Public works contract amendment. Each amendment to a public works contract (change order) exceeding an amount of ten thousand dollars or which, together with all other previously approved change orders for that contract, exceeds twenty-five percent of the original contract amount, must be authorized by the city council and shall require the signatures, specified in subsection B. of this section, regardless of whether the city's obligation under the original contract was for twenty thousand dollars or more. Other change orders shall not require city council approval, but shall require the signatures specified in subsection B. of this section. F. Representation must be in writing. The City of Bakers- field shall not be bound by any representation of any officer, employee or agent of the city which would serve to create or amend a contract unless and until such representation has been set forth in writing and approved and signed as set forth in this section. SECTION 2. This Ordinance shall be posted in accordance with the Bakersfield Municipal Code and shall become effective thirty (30) days from and after the date of its passage. o0o - 2 - I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED BOB PRICE MAYOR of the City of Bakersfield APPROVED AS TO FORM: JUDY K. SKOUSEN City Attorney By: ALAN D. DANIEL Assistant City Attorney City of Bakersfield ADD/meg MEG :ORD95-2\CONTRAC~r.ORD --January 12, 1996 - 3 -