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HomeMy WebLinkAbout03/14/2002 BAKERSFIELD Mike Maggard, Chair Harold Hanson Mark Salvaggio Staff: Darnell ,Haynes BUDGET AND FINANCE COMMITTEE of the City Council- City of Bakersfield Thursday, March 14, 2002 4:00 p.m. City Manager's Conference Room, Suite 201 Second Floor- City .Hall, 1501 Truxtun Avenue, Bakersfield, CA AGENDA 1. ROLL CALL 2. ADOPT FEBRUARY 21, 2002 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED .BUSINESS 5. NEW ,BUSINESS A. Staff report and Committee recommendation regarding acceptance of Financial Statements for Fiscal Year 2000-01 Transportation Development Act Funds - Rojas B. Staff report and Committee recommendation on Fiscal Year 2002-03 Community Development Block Grant (CDBG), Home Investment Partnerships.(HOME), and Emergency Shelter Grant (ESG) AnnUal Spending Plan -Kunz 6. COMMITTEE COMMENTS 7. ADJOURNMENT S ADarnel~002Bud&FinanceCommittee~bf02marl 4agen.wpd DRAFT BAKERSFIELD Mike Maggard, C. hair AI;'n Tandy, City' Ma~t{ger Harold Hanson Darnell Haynes, Assistant to the City Manager Mark Salvaggio AGENDA SUMMARY REPORT SPECIAL MEETING BUDGET AND FINANCE COMMITTEE Thursday, February 21, 2002 - 4:00 p.m. City Manager's Conference .Room 1. ROLL CALL Call to Order at 4:05 p.m. Present: Councilmembers Mike Maggard, Chair; Harold Hanson and Mark Salvaggio 2. ADOPT JANUARY 17, 2002 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Staff report and Committee recommendation regarding application of the business license ordinance to commercial and residential rental property businesses At the last meeting, the Committee requested a list of alternatives to taxing of commercial and residential .rental activities and legal analysis on each of the alternatives. City Attorney Bart Thiltgen stated this information was provided in a confidential memo to the Committee on January 30, 2002, which also included potential legal challenges and the City Attorney's analysis on whether the City would prevail in case of a challenge. This issue was reviewed at the January 17th Budget and Finance Committee meeting. The City Attorney recommended to apply the business license tax to property owners who rent or lease commercial properties. For residential properties, his recommendation was to determine if a person owns four or more residential rental units, that person is conducting a rental business and, therefore, subject to the business license tax; and ownership of less than four (three) residential rental units would not be subject to the business license tax. DRAFT AGENDA SUMMARY REPORT BUDGET AND 'FINANCE COMMITTEE Thursday, February 21, 2002 Page -2- Committee Member Hanson made a motion to apply the business license tax to property owners.who rent or lease commercial properties; and for .residential rentals, apply the business license tax to owners who rent or lease five or more units.(four units or less would. be exempt from the business license tax). Committee Members Hanson and Salvaggio voted: "aye." Committee Chair Maggard voted: "no." Committee Chair Maggard.expressed most owners of residential property are investors and not in the business of renting or leasing properties, so he felt the business license tax should .not apply to owners of residential rental property. As was discussed at the January 17th-Budget and Finance Committee meeting, for commercial properties, 'he felt for those that are clearly in the business of managing properties and rent or lease commercial properties, the business license tax .should apply, but the business .license tax should not apply to a property owner who has an investment in.commercial property who is clearly not in the business of renting .or ,leasing 'properties. As Committee Chair Maggard dissented from the majority recommendation, the Committee unanimously recommended sending a majority and a minority report to the City Council. 5. NEW BUSINESS A. Staff report and Committee recommendation regarding Kern-Tech, Inc. repayment of economic development loan Economic Development Director Donna Kunz-provided a short background of the oompany. Kern-Tech is a manufacturing and specialized tooling business located in the ~OId Town Kern-Pioneer Redevelopment Project area at 405 E. 19th. In the past, the company made firearms until government regulations made it impossible to survive in the firearms business. They transformed the company into Kern-Tech, Inc. in 1995. In the second year,, the company brought nearly $1 million in business to Bakersfield. Their business was expected to increase with the addition of machinery and personnel, so they came to the City for financial assistance in the form of a loan to purchase equipment. On March 26, t997, the City Council approved a 0% interest, five-year loan agreement for. $169,797. Kern-Tech chose the option of one balloon payment of $169,797 at the end of the five years. Funds for this loan were Community Development Block Grant (CDBG) monies. In ~return for the loan, Kern-Tech agreed to hire 18 new employees over the term of the agreement (this has been accomplished). Of the workers hired each year, at least 51% ~had to be Iow and moderate-income individuals. Kern-Tech, Inc. has notified the City they are unable to meet the balloon payment and have requested a repayment schedule beginning in April 2002 of $1,000 per month. There were unforeseen business problems, which affected their ability to pay. Many of the companies placing orders with them, had reverses in their businesses. Kern-Tech had a large order DRAFT AGENDA SUMMARY REPORT BUDGET AND'FINANCE COMMITTEE Thursday, February 21,2002 Page -8- for a machine and the ordering company went bankrupt and,left Kern-Tech with a large bill owing to another supplier. Two of their largest customers closed, due to the downturn in civil air traffic after September 11th. The owners of Kern-Tech have taken a 20% pay cut and the employees a 15% pay cut. They currently have 15 employees. Kern-Tech's plan is to getinto military hardware as a small tooling supplier and are currently receiving orders. In the.past, the Council had a priority of job creation and granted loans with federal monies (many of them forgivable) as a way to create jobs for Iow and moderate-income individuals to-impact the jobless rate and social problems in high unemployment areas. Staff recommended doing a workout with Kern-Tech to keep the company operating and the workers employed. Mike.Miller, Kern Tech, spoke regarding their business, the loan and their intention to repay the loan. The Committee unanimously approved extending the loan-for six month with 0% interest rate, using the existing collateral now in place, accepting payments of $1,000 per month, with a reviewby City staff in six months. This will allow.time for the Council to adopt a.loan policy and provide the City with the ability at the end of the six-months loan extension to restructure the loan, if necessary. Staff will prepare the amendment to the loan agreement and forward to-the City Council for approval. B. Staff report and Committee recommendation,regarding:Economic Development Loan .Program Policy City Manager Alan Tandy explained with the passage of SB 975, it is doubtful that future loan requests will occur. The legislation is so onerous to do a loan of $150,000 to $250,000 would impose a cost of $600,000 to $800,000 on the business in most cases. Out of the current loans in the City's portfolio, .probably most wOuld not have been granted. Unless there are really unusually circumstances, the City will.probably not be approached for loans. Possibly someone needing a light rehab, but substantial construction projects will not. Past loans seem to be in two forms. One would 'be local businesses that are either growing or-relocating. Then there are those that are multi-city competitions, where firms are looking for incentives to relocate. Should any of them come back to compete, the City needs a loan policy flexible enough to compete with cities like Las Vegas and others who are offering incentive packages to get firms to locate in their city and create new jobs. The City has two projects in the pipeline. One is a very small rehab and they have submitted 75% of the required documentation. The second one is in the talking stage in the enterprise zone, which would create 300+ new jobs at $12 to $15 per hour. It would be important to complete the projects already started without trying to go back and start with a new policy. BUDGET AND FINANCE COMMITTEE Thursday, February 21, 2002 Page -4- Committee Member Hanson spoke about the importance of collateral when loaning money as an issue to consider when drafting a loan policy. The Committee requested 'Donna Kunz to draft a loan policy for the Committee's review. C. Staff report and Committee recommendation .regarding funding request by Greater Bakersfield Vision 2020, Inc. (This item was heard after 5A.) This funding request is in two.parts. The first is a $2,500 sponsorship request from Greater Bakemfield Vision 2020. The second is a request for $11,000 by the Vision 2020 Image Task.Force to complete funding for an image.study of-Greater Baker~sfield. Economic Development Director Donna Kunz explained the,Economic.Development Department has a marketing fund in their operating.budget, which could fund these requests. For example, they sponsor the Economic Summit at CSUB for $2,000 to look at the City's economic issues. The City has~been getting progress reports and materials from Vision 2020, which are very helpful for the .Economic Development Department to plan strategiesl programs and projects. Staff recommended the City invest in the study for the image product. Chris Frank, Bakersfield Chamber of Commerce, spoke regarding their request for a sponsorship of $2,500. The funds would be used toward the operation of the VisiOn 2020 program. They are requesting the City continue its involvement and support for one more round of funding. Their work should come to a close in the next 1.8 months as the strategies developed by the Vision forces are accomplished. Barry Zoeller, Co-Chair, Vision 2020 Image Task Force, spoke regarding improving the image of the community being extremely important, especially for economic development market retention. The main task of the Image Task Force is-to produce a marketing campaign to measurably improve the image of Greater Bakersfield. First, they wish to do scientific research on exactly what is the current-image of Greater Bakersfield. They have' commissioned a research firm todo a study, which will cost approximately $57;000. They have commitments for $46,000 and need another $11,000 tofund the study ($8,000 for the study and $3;000 travel expenses). There was discussion regarding the future need. 'for funding the' final product for the marketing campaign itself and they may return to the City with another request. Committee Member Salvaggio made a motion to 1) fund the request from Greater 'Bakersfield ViSion 2020 for the next year with a sponsorship of $2,500; and 2) fund the request from the Vision 2020 Image Task Force for $11,000 ($8,000 hard costs and $3,000 traveling expense) for the research study on the current image of Greater Bakersfield; 3) funding will be from Economic Development Department marketing fund; and 4) staff to forward the administrative report and agreement .to the Council for approval. The Committee unanimously approved the motion. D AFT AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, February 21,2002 Page -5- 6. COMMII'I'EE COMMENTS 7. ADJOURNMENT The meeting adjourned at 5:25 ~p.m. Staff Present: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City Manager John W. Stinson; Assistant to the City'Manager Darnell Haynes; Community :Development Coordinator Director Donna Kunz; Assistant Finance .Director Nelson Smith; City Treasurer Bill Descary; and Deputy :City Attorney Janice Scanlan. Others present: Mike Miller, Kern Tech; .Dave Cross, architect; Barry Zoeller, Vision 2020 Image Task Force; Chris Frank, Chamber of Commerce; and James Burger, reporter, The ;Bakersfield Californian cc: Honorable .Mayor and City Council DWH:jp S:~Damell~002Bud&FinanceCom mittee~bf02feb21 summary.~wpd B'A K E R S F I E L D Economic and Community Development Department MEMORANDUM March 8, 2002 TO: Budget and Finance Committee /,~o.~ro~ FROM: Donna L. Kunz, Economic Development Director SUBJECT: CDBG, HOME, and ESG Action Plan FY 2002/03 As an Entitlement City under the U.S. Department of Housing and Urban Development (HUD), the City receives annual entitlements in order to improve Iow-income neighborhoods in our City. The City's entitlements for FY 2002/03 are: $3,110,000 for Community Development Block Grant funds; $1,411,000 for the HOME Investment Partnership Program; and $106,000 for the Emergency Shelter Program. Total available funds from HUD to improve Iow-income neighborhoods in the City of Bakersfield is $4,627,000. In order to identify eligible projects to be funded from the HUD's annual entitlements, a Notice of Funding Availability (NOFA) is sent out to non-profits, agencies and City departments for possible projects for the following year. This year a total of 21 proposals were submitted from non-profits and agencies totaling approximately $8 million requesting assistance for their projects to improve the quality of lives for Iow-income neighborhoods. In addition, City departments submitted 25 projects totaling approximately $6 million for activities that would improve the infrastructure in those Iow-income neighborhoods. Attached is a list of all the proposals and projects submitted for this years CDBG, HOME, and ESG funds. After reviewing all the proposals and projects, staff has prepared a proposed budget and Action Plan FY 2002/03. Below is a summary of the proposed budget for consideration and recommendation to the City Council. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Proposed/Revised (4) 02/24/02 CDBG Entitlement for FY 2002-0R $3,110,000 Current and Prior Year Program Income $135,000 20 % Admin. Cap $646,484 Long term obligations: Debt Svc. 108 - Convention Center Hotel - (year 9 $334,085 of 10 year obligation) Public Services: Fair Housing -(mandated by HUD) - City wide $88,5i6 Graffiti (Dept. Request =$277,000) City Program $100,000 Bakersfield Senior Center - Administration - Ward 1 $50,000 P.D. SE Substation (Lakeview) - Operations - Ward 1 $150,000 Housing and Slum and Blight Activities: Home Access - (Program in high demand) - Ward 1,2 $80,000 HOME Service & Delivery - (Req. for on-going program) $85,000 Acquisition & Clearance $325,000 Clearance & Demolition (515 Truxtun Avenue) $100,000 Subtotal Administration, Debt and Programs $1,959,085 I PROPOSED FUNDING- CDBG FY 2002-03: Requests include project cost & direct delivery: Capital Improvement Projects Public Works/EDCD- #1 - Pacheco Sewers Phase 3 - Ward 7 #2 - Casa Loma - Phase 5- Ward 1 #3 - North Chester Streetscape - Ward 2 #1 - Wall Street Alley Improvements -Ward 2, EDCD $753,915 Rec & Parks #1 MLK - Pool Filter System - Ward 1 #2 Automated Chemical Controllers - Ward land 2 #6 Jefferson ADA Playground Upgrade - Ward 2 #9 Lowell Park Center Rec Building-Ward 1 $387,000 Business Loans $37,000 City - New Construction/Facilities Police Activities League - PAL $108,000 TOTAL ,. $1,285,915 AMOUNT OVER/UNDER NET RESOURCES AVAILABLE $0 HOME. Entitlement - CD Proposed Uses for Fiscal Year 2002-03 RESOURCES: HOME Entitlement for FY 2002-03 $1,411,000 PROGRAM INCOME (Estimate for FY 2002-03) $130,000 PR YR - PROGRAM INCOME - FY 01-02 $50,000 TOTAL RESOURCES $1,591,000 PROGRAM ADMINISTRATION - 10% $159,000 PROPOSED HOUSING PROGRAMS Project Cost Direct Delive~ New Construction - 333 Union Avenue - Kozee Apts.- $728,000 $41,50(; Single Family Rehab (est. 18 loans @ average of $24,000 ea.) $431,000 HOME - Service and Delivery $20,000 CHDO Set Aside 15%: $211,500 - Bakersfield Senior Center - $60,ooo committed by Council action - KCEOC - Southeast Targeted Neighborhood - Baker St. Senior Housing - GEAHI Total Program/Project Costs + Direct Delivery $1,390,500 $41,500 le/Shorffall $0 EMERGENCY SERVICES GRANT (ESG) Proposed Use for Fiscal Year 2002-03 FINAL ESG Entitlement for FY 2002-03 $106,000 5 % Admin. Cap $5,000 Bethany Services - Homeless Center $50,500 Bakersfield Rescue Mission $50,500 $101,000 Resources Available Once the Budget and Finance committee has recommended the proposed projects for FY 2002/03, staff will prepare a 30-day public notice identifying the proposed projects and requesting input and comments from the public on those projects (as required by HUD regulations). The notice will be published March 24, 2002. During the 30-day public notice period two public meetings will also be held to receive additional input on the proposed projects. These meetings will be held on April 16, 2002 at the Boys and Girls Club and April 18, 2002 at the Martin Luther King, Jr. Community Center. The CDBG Action Plan will be on the May 8, 2002 City Council agenda for their action and submitted to HUD no later than May 16, 2002. These funds will be released to the City by HUD on July 1,2002 for implementation. NON-PROFIT APPLICATIONS SUBMITTED FOR FY 2002/03 FUNDING Greenfield Union School Construction of a 5,600+ sq.ft. $1,739,564 Total Cost Yes District facility to house health clinic, child care center and Health Greenfield Community Start office on 5 acres. District $344,290 City Partnership Project owned property at 5600 Monito~ $160,274 County Street. $985,000 State Grant Committed 8/9/00 Ward 1 $250,000 Applicant Has applied to County for CDBG. Buller Clinical Acquisition of a 11,024 sq.ft. $660,000 Total Cost Yes Foundation, Inc. medical clinic located at 2121 Niles Street to expand services $600,000 City Polyclinic Expansion to an existing medical clinic $60,000 Applicant Project located at 2145 Niles Street. Applied to County for Outside city fimits. $600,000 also. Greater Bakersfield Rehabilitation of an existing $500,000 Total Cost Partners in Progress 13,200 sq.ft, motel located at .9- 906-908 Union Avenue. Lease The Carson Business to GBPNP for a business Center incubator/credit union. $200,000 City o o $200,000 County Ward 2 $78,000 Community -d $22,000 Grant E Applied to County ~_, Bakersfield Rescue Construction of a 2,400 sq.ft. $706,195 Total Cost Yes Mission commercial kitchen to expand the current 720 sq.ft, kitchen at $272,478 City Community Food the Rescue Mission - 830 Beale $408,717 County Services Project Avenue. $25,000 Applicant Ward 2 Applied to County. Garden Pathways, Inc. Installation of fire sprinkler $517,310 Total Cost Yes system for the existing The Garden Child-Care childcare/youth center facility $55,534 City and Youth Center located at 900 22"d Street. Rehabilitation Project Has not applied to Phase II Ward 2 County. Reconcile RTC Construction of residential $549,540 Yes (Residential Treatment treatment facility to house level Center) 13 - 14 high risk/high need boys $224,770 City and girls (12-19 years). $589,539 County Reconcile RTC Phase I $100,000 Applicant Facility Construction Outside City Limits Project Applied to County. Valley Achievement Rehabilitation of 14,400 sq.ft. $86,290 Total Cost Yes Center facility located at 7300 Ming Avenue to allow for the $70,043 City Valley Achievement continued services to autism Center Rehabilitation clients. $16,250 Applicant Project Has not applied to City wide County. Kern County Economic Construction of a 25,000 sq.ft. $1,605,650 Total Cost Yes Opportunity Corporation Food Bank facility located at the (KCEOC) southeast corner of Feliz Drive $730,000 Committed City and Washington Street. $250,000 City Request KCEOC Food Bank $70,000 County 'Construction Project Ward 1 $355,650 KCEOC Capital Phase IV Campaign $200,000 Requested Wein Grant Foundation Applied to County. Restoration Community Acquisition of 3 (C-1) limited $150,000 Total Cost Yes Project, Inc. commercial zoned properties totaling 37,000 sq.ft, located at Central Community 727, 801, and 803 8th Street for $150,000 City Request Health Clinic Acquisition construction of a 6,000 sq.ft. medical clinic. Has not applied to Ward 1 County. Restoration Community Construction of a 6,000 sq.ft. $160,000 Total Cost Yes Project, Inc. childcare center at 510 East Brundage Lane for infants, $160,000 City Request Rainbow Child care toddlers, preschool, and after Academy school care. Has not applied to Ward 1 County. Bakersfield Police Acquisition and design of a $250,000 Total Cost ;Yes Department 2,000 sq.ft, satellite office to house community outreach and $100,000 Acquisition Lakeview Avenue police services in southeast $150,000 Design Satellite Office Bakersfield. Ward 1 Bakersfield PAL Construction of two classrooms $108,000 Total Cost Yes and one office - 1,200 sq.ft., to PAL Classrooms house after school educational $108,000 City Request programs. Has not applied to Ward 1 County. Veterans Assistance Land acquisition and $1,082,600 Total Cost Yes Foundation, Inc. construction of a 32-bed transitional housing facility for $241,325 City Veterans Assistance homeless veterans. Location $241,325 County Center Transitional undetermined at this time. $599,950 Veterans Affair Housing Project Has applied to County. Habitat for Humanity Acquisition and financial $588,000 Total Cost Yes assistance for 8 single family Habitat for Humanity vacant lots to construct 8 self $120,000 City Homes help homes in targeted $472,000 Other Sources neighborhoods. Has not applied to Wards 1 & 2 County. Kern County Economic 1) Assistance to acquire and $705,000 Total Cost Yes Opportunity Corporation rehabilitate single family homes (KCEOC) in targeted neighborhood and resale to qualified homebuyers. Home Rehabilitation $105,000 City Program. 2) Operational costs to $550,000 Private coordinate homebuyers training Funding and administrative support for $50,000 City Funded the Home Program. Admin Has not applied to City wide County. Kern County Economic Rehabilitation of two existing $377,926 Total Cost Yes Opportunity Corporation residential dwellings located at (KCEOC) 316 and 320 Baker Street to $232,126 City provide permanent affordable $145,800 Donated Land Baker Street Homeless housing for eligible clients. Rehabilitation Project Not applied to County. Ward 2 Restoration Community Financial assistance to fund $190,000 Total Cost -d Project, Inc. operational cost to undertake ~ housing, construction, $190,000 City '~ Comprehensive rehabilitation, and clean-up ~ Community Restoration program. -o ~ Program Block-by-Block Has not applied to ~ Ward 1 County. ~. Alliance Against Family Continue to fund operational $1,348,000 Estimated Yes Violence costs of the Battered Women Annual Operational Cost Shelter. Cost include utilities, $13,096 City Request Battered Women's repair and maintenances of the Shelter Program shelter and shelter van. City wide Bethany Services, Inc. Continue to fund operational $850,000 Estimated Yes costs of the Homeless Center, Annual Operational Cost Bakersfield Homeless including cost for security, $75,000 City Request Shelter maintenance and utilities. Ward 1 Kern County Mental Continue to fund operational $228,695 Annual Budget Yes Health Association costs for drop in day shelter and a payee program for homeless $26,500 City Request Mental Wellness Center clients. 345 Chester Avenue Ward 2 Bakersfield Rescue Funding for operational cost $1,760,800 Annual Yes Mission and one staff cost for new Budget homeless shelter. 800 East 21st $66,890 City Request Lonnie Health Center Street Ward 2 INTRA CITY PROPOSALS RECEIVED FOR FY 2002/03 CDBG ASSISTANCE Pacheco #10 Street Area Sewers - Phase III Public Works Yes Sewer mains and laterals in the areas bounded by Centaur Street, Ward 7 #1 Faith Avenue, Elysium Street, and Pacheco Road. Design completed November 2000 (FY 00/01). Phase II funded FY 01/02 - $50,000 Estimated Cost - $633,000 Casa Loma #6 Street Improvements - Phase V Public Works Yes Curb and gutter and paving in the area bounded by Meeks Street, Ward 1 #2 Olivier Street, Anderson Street between Planz Road and Brook Street. Estimated Cost - $397,000 Chester Avenue Median Island Improvements Public Works Yes Construction of median islands, landscaping, irrigation and lighting on Ward 2 #3 Chester Avenue between 34th Street to West Columbus Avenue. Design budgeted FY 01/02 - $25,000 Estimated Cost - $276,000 Casa Loma #6 Storm Drain Improvements - Phase I Public Works Yes Catch basins, storm drain and additional sewer piping along Planz Ward 1 #4 Road and Brook Street. Estimated Cost - $564,000 Chester Avenue Median Island Improvements Public Works Yes Construction of median islands, landscaping, irrigation, lighting on Wards 1 & 2 #5 Chester Avenue Between California Avenue and Brundage Lane. Estimated Cost - $518,000 East Bakersfield Drainage Improvement - Phase I Public. Works Yes Conduct a drainage study and fund Phase I of improvements in an Ward 1 & 2 #6 area bounded by Brundage Lane, Union Avenue, State Route 178, and City limits. $150,000 proposed for study must be charged to planning/admin. Construction Cost - $206,500 Estimated Cost - $356,500 Chico Street Curb and Gutter Improvements Public Works Yes Installation of curb, gutter and street improvement on Chico and Kern Ward 2 #7 streets between Tulare and Baker. Estimated Cost - $83,500 11th Street Cul-de-Sac Proiect Public Works Yes ~Placement of a cul-de-sac on 11th Street at the west side of the Ward 1 #8 intersection with Lakeview Avenue. Initial request was from the Housing Authority of the County of Kern. Estimated Cost - $61,500 Median Is~and Improvements in CDBG Tarqeted Areas Public Works Yes Construction of median islands, landscaping and irrigation systems in Various #9 CDBG eligible areas. Wards Estimated Cost $251,000 Baker Street Streetscape and L(qhting Improvements - Phase II EDCD 'Yes Reconstruction of sidewalks, crosswalks, streets, landscaping, street Various #1 furniture and improvements on Baker Street between Niles Street and Wards Truxtun Avenue. Phase 1 funded FY 00/01 - $25,000. Economic Development Incentives funds award - $490,000. Estimated Cost FY 02/03 - $119,000 Wall Street Alley Enhancement - Downtown Bakersfield EDCD Yes Street improvement, street trees, irrigation, street lights, drainage, Ward 2 #2 and improvements for Wall Street Alley between Eye Street to Chester Avenue, 19th Street between "H" Street and Eye Street and Eye Street between 18th Street and 19th Street. Funds from General Fund FY 02/03 $150,000 committed. Estimated Cost - $447,000 Matin Luther King Jr. Center Swimming Pool Restoration Rec/Park Yes Replacement of pool decking, mechanical filtration, pumping system Ward 1 '¢1 and restroom at MLK. Project can be phased. Mechanical system and filtration is near collapsing. $71,500 to upgrade system. Estimated Cost - $246,000 Automated Chemical Controllers - Jefferson, MLK and Wayside Parks Rec/Park Yes Upgrade chemical systems for swimming pools. Wards 1 & 2 ¢2 Estimated Cost - $46,500 MaRin Luther King Jr. Center Roof Replacement Public Works Yes ,Remove and replace roof on canopy and restroom building at MLK General ¢3 park. Se~ices Estimated Cost - $30,000 Ward 1 Matin Luther King Jr. Center Rehabilitation Pro/ect Rec/Park Yes Interior and exterior improvements at the MLK Center. Ward 1 ~ Estimated Cost - $43,500 Wayside Park Playground ADA Improvement,s Rec/Park Yes Installation of ADA playground equipment and rubberized sufiacing at Ward1 ¢5 Wayside Park. (If awarded, Rec/Park will apply for a $25,000 California Waste Management Grant for rubberized sufiacing for project.) Estimated Cost - $180,000 Jefferson Park Playqround ADA Improvements Rec/Park Yes Install safe ADA playground equipment and rubberized surfacing at Ward 2 #6 Jefferson Park. (If awarded, Rec/Park will apply for a $25,000 California Waste Management Grant for rubberized surfacing for project.) Estimated Cost - $168,000 Martin Luther King Jr. Park Picnic Site Improvement,~ Rec/Park Yes Installation of permanent picnic improvements Ward 1 #7 Estimated Cost - $19,500 Lowefl Park Picnic Site Improvements Rec/Park Yes Installation of permanent picnic improvements Ward I #8 Estimated Cost - $13,500 Lowefl Park Center Recreation Building Rec/Park Yes Installation of two 300 sq.ft, modular buildings and improvements to Ward 1 #9 house the Lowell Park Recreation center. Estimated Cost - $126,000 Jefferson Park Pool Rehabilitation Rec/Park Yes Rehabilitation of decking, gutter system, mechanical system and Ward2 #10 restroom. Estimated Cost - $510,000 Wayside Park Pool Rehabilitation Rec/Park Yes Rehabilitation of decking, gutter system, mechanical system and Ward1 #11 restroom. Estimated Cost - $202,000 Vir, qinia Avenue Water Main/Fire Hydrant Improvement Proiect Fire Yes Upgrade water main and lines to increase water flow to standard Ward 1 #1 :level. Estimated Cost - $78,000 Graffiti Removal General Yes Removal of graffiti within various Iow-income areas within the City Se~ices ¢1 including education and outreach. CDBG Funds - $227,000 Various Estimated Cost - $503,205 Wards Clearance and Demolition Code Yes Removal of vacant substandard buildings and improvements in Enforcemenl targeted areas and neighborhoods. Various Estimated Cost - $100,000 Wards ADMINISTRATIVE REPORT MEETING DATE: February 20, 2002 AGENDA SECTION: Consent Calendar ITEM: 8. 'i 'i. TO: Honorable Mayor and City Council APPROVED FROM: Raul Rojas, Public Works Director j~ DEPARTMENT HEAD il ,,--.~ · DATE: January 31. 2002 CITY ATTORNEY ~' CITY MANAGER ~'~'~_~ SUBJECT: Acceptance of 2000-01 Transportation Development Act Funds Financial Statements. RECOMMENDATION: Staff recommends referral to Budget and Finance Committee. BACKGROUND: In compliance with the Kern Council of Governments Rules and Regulations, the California Public Utilities Code section 99245, and the California Code of Regulations section 6664, the attached financial statements for the Transportation Development Act Funds were prepared for the fiscal year ending June 30, 2001. The financial statement summarizes fiscal activity for the Streets and Roads Fund, the Bikeway and Pedestrian Fund, and the Public Transit Fund. This audit is the first for the Public Transit Fund which accounts for the Bakersfield Amtrak Stations's operating expenses. The accuracy and the fairness of the presentation is the responsibility of the City. The audit firm ol Brown Armstrong Randall Reyes Paulden & McCown has issued an unqualified opinion. No other reports were issued by the accounting firm in regards to the above audit reports. ~ .... '~-: r~v" A ~.,FundsFJnanclal wlDd CITY OF BAKERSFIELD TRANSPORTATION DEVELOPMENT ACT FUNDS FINANCIAL STATEMENTS JUNE 30, 2001 AND 2000 CITY OF BAKERSFIELD TRANSPORTATION DEVELOPMENT ACT FUNDS TABLE OF CONTENTS .Pa,qe FINANCIAL SECTION Independent Auditor's Report ....................................................................................................... 1 Financial Statements Streets and Roads Fund Balance Sheets .............................................................................................................. Statements of Revenues, Expenditures, and Changes in ................... 2 Fund Balances .................................... Bikeway and Pedestrian Fund Balance Sheets ...................................... Statements of Revenues, Expenditures, and Changes in Fund Balances (Deficit) . ............................................... Public Transit Fund Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balances .................. ........................................................... No!es to Financial Statements ............................................................................................................ O~ne~ P, esocs Auditor's Report, on Compliance and cn lnternai Control Over Financial Reposing Based on an Audit of Financial Sta.:emenls Per,'ormed in Accorcance with Government ." ,-.,uc,,....,., Standards and the Rules and Regulations o~' Ihe TranspoEaticn De,,ieIoomeni Act ........................................................................ 10 · ' . ~- ~ .... ,. .. - ,:.. ~,. < :.. . ... .... . ......... .... rd. -, ..... ,~.... ..~ - - '" i Offire::=' ,uc .1 ... '¢ .'. "' FFRTIHDPUBLIC ACCOUN N '* c.-.--,:" · :.:. · .r .:  ' '[o ' ' . - . . . ~ ~-_ -. ...: . .- - · '.. · .. -' ~'.~':: ~;"'2-':..' - ;-;5*-.- ~: -'.-~.-.:4.~ .... - · -:~;.~ ~ INDEPENDENT AUDITOR'~ REPORT 3u~cn H..A~on~ CPA. M~ ::= ~. ~anca[:. C?.~.'.a~V. C?~ TO the Gi~ Council City of Bakersfiel~ ~emamin P Re].'~, CPA Bakersfield, California [r J~.,. I. PauWen. CPA We have audited me accompangng financial statements of me S~eem and Roads Fund, ~e :zdmaRuthe~o~-b~il, CPA Bikeway and Pedes~an Fund, and the Public Transit Fund of ~e CJ~ of Bakersfield, ~:,;~su,~c~.c~.~ California, as of June 30, 2001 and 2000, and for the years then ended. The financial statements are ~e responsibili~ of ~e Ci~ of Bakersfield, California's, management. Our ~:~ ~. ~.tet. C~.~ responsibili~ is to express an opinion on these financial statements based on our audit. :.=. ~. :(~,.c~.~. ~ts7 We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and pe~orm the audit to .4. :,o,.:o:r=. ..... ~ obtain reasonable assurance about whether the financial statements are free of material .~:~.',..~d~=cz~ m~ss,a,ement. An audit includes examining,'on a test basis, evidence suppoding the amounts and disclosvres in the financial statements. An audit also includes assessing the ?~::~'"~'t'E~t~'~'?'~ accounting principles used and significant estimates made by management, as well as ~ '.:~ae E~ersb~e:. '~?A. :~ evaluating the 0Vgr~J~ ~nancial sta:ement presemat on. We believe that our audit provides ..c7.~ a reasonable basis fc~ our opinion. '. :::~ :.. '.'.=:z::~:~ ~7.:. As d~scussed i~ Nots ~. the ~a~c~aJ s:atemems 2reset: o~ly the ~[~99:S 8~d ~o~ds --:~:v..':.:=.t, ~7.:. the E~ke',va7 and Pedestrian F~d. ~d the ~,,~;c Tra~stt Fred. a~d are no: intended - Z'::~a: ~. ' ~":~ ' ooerascns and the =ash flows .~ ~s :ro:r~e~a~,. funC t'.,oe ~ :~--;,, ' - ~ ........... ~ .~ ~n ~ne firs~ paragra;h present fairly, ~ ail mater~al respects, t;-e financial :os~t~on cf th~ q'-=~'- . ......... ~ and ~oads Fu~d, the Bikeway Pedestrian Fund, a~ t~e PuDi[c Tra~s:,t Fund, of ~he City of Bakersfield, California, as June 30, 2001 and ZO00, and ~h~ results of its coerafions for the year then ended in conformity with acccuzting principies generally acce~ted in the United States of America. tn accordance with Government Auditing Standards, we have also issued reoo~s da:ed November 14, 2001 cn our consideration of the Streets and Roads Fund, the ~ikeway and Pedestrian Fund, ann me Public Tracsit Fund of ~he Ci~ of Bakersfield, California's, internal control over financial re~o~ing and our tests of its compliance with ce~ain provisions of laws, regulations, contracts and gran~s. ~OWN ARMSTRONG ~NDALL R~YES PAULDEN & McCOWN ACCOUNTANCY CORPO~TION Bakersfield, California I ~ ~./~ ..-'/ ,/' November 14, 2001 ! ~ _~ ? / 1 Section of the ~,m~,"<:n InsfiMe oi C~,,';i[iecJ Public ~ccountants ~-...7 CITY OF BAKERSFIELD STREETS AND ROADS FUND BALANCE SHEETS JUNE 30, 2001 AND 2000 2001 200O ASSETS Cash with City Treasurer $ $ 2,136 Accrued Interest Receivable 39 TOTAL ASSETS $ ~ FUND BALANCE Unreserved $ - $ 2.175 TOTAL FUND BALANCE $ ~75 The accompanying notes are an integral part of these ,financial statements. 2 CITY OF BAKERSFIELD STREETS AND ROADS FUND STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEARS ENDED JUNE 30, 2001 AND 2000 2001 2OOO Revenues Interest Income $ 15 $ 157 Investment Income 33 Expenditures Streets and Roads {'2,223) (2,000) Deficiency of revenues over expenditures (2,175) (1,843) Fund Balances at beginning of year 2,175 4.018 Fund Balances at end of year ~ $ 2,17,5 The accompanying nctes are an integral part of these financial statements. 3 CiTY OF BAKERSFIELD BIKEWAY AND PEDESTRIAN FUND BALANCE SHEETS JUNE 30, 2001 AND 2000 2001 2000 AS S ETS Accrued Interest Receivable $ - $ 570 Due from Local Agencies 53,959 61,997 TOTAL ASSETS $ 53.929 ~ LIABILITIES AND FUND BALANCE (DEFICIT) Liabilities Due to KemCOG $ - $ 2,490 Due to Ger~eral Fund 15,989 59.443 Deferred Revenue 38.415 1,079 Total Liabilities 54,404 63,012 Fuc, d Balance (Deficit) Ur~reserved (445) (445) TOTAL LtA~iL!ITES AND FUND BAU,~.NCE (DEFICIT) $ 53.95~ $ 62.567 The accompanying notes are an integral part of these financial statements. 4. CITY OF BAKERSFIELD TDA FUNDS BIKEVVAY AND PEDESTRIAN FUND STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICIT) FOR THE YEARS ENDED JUNE 30, 2001 AND 2000 2001 200O Revenues Local Transportation Funds Investment Income (Loss) $ 155,586 $ 209,646 Other Revenue (216) _ 5,040 Total Revenues 160,626 209,430 Expenditures Pedestrian and Bicycle ~) (209,646) Deficiency of revenues over expenditures (216) Fund Balances (Deficit) at beginning of year · - (445) (229) Fund Bala2ces (Deficit) at end of year The accompanying notes are an integral part of these financial statements. 5 CITY OF BAKERSFIELD PUBLIC TRANSIT FUND BALANCE SHEETS JUNE 30, 2001 AND 2000 2001 2O0O ASSETS Cash with Cit,/Treasurer $ 13,568 $ . Accrued Interest Receivable 340 . Accounts Receivable 1,965 . TOTAL ASSETS $ 15.873 $ . LIABILITIES Accounts Payable $ 7,400 $ Deferred Revenue 8,473 _ TOTAL LIABILITIES ~ ~ _ The accompanying notes are an integral part of these financial statements. 6 CITY OF BAKERSFIELD TDA FUNDS PUBLIC TRANSIT FUND STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEARS ENDED JUNE 30, 2001 AND 2000 2001 2000 Revenues Local Transportation Funds $ 96,833 $ Other Income (Loss) 4,901 Total Revenues 101,734 Expenditures Public Transit 101,734 Excess of revenues over expenditures . Fund Balances at beginning of year Fund Balances at end of year $ ~. The accompanying notes are an integral part of these financial statements. 7 CITY OF BAKERSFIELD TRANSPORTATION DEVELOPMENT ACT FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2001 AND 2000 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE~ The financial statements of the Transportation Development Act (TDA) Funds of the City of Bakersfield (City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. Description of the Reportinq Entity The TDA provides funding of public transportation through regional planning and programming agencies. Funds are allocated to the City through the county transportation planning agency, Kern Council of Governments (KERNCOG). The TDA Funds account for the City of Bakersfield's share of the Transpo~ation Development Act allocations, which are legally restricted for specific purposes as de~iled in applicable sections of the Public Utilities Code. As the TDA Fund's financial statements do not include all funds and component units of the "'~, ,-,~y, the,/are not intended to present fairly the financ!al position and results of operations of the City in conformity with accounting principles generally acc~D._d in the United States of America. The financiai statements are intended to reflect the financial pos:':ion, results of operations, and compliance with the Trans2ortation Development Act only for the Streets and Roads Fund, the Bikeway and Pedestrian = .* ' , un... a:~d the Public Transit Fund. Basis of Accountincj The City uses funds to reso~ cn ;;s ~----."cia DOS *:C- :-d '~e '=su's cf's $ ........ - -~ - ~ ' 'e :,-'. ~ ', '-; -i' L"Z ..... . ,'z ..... . ....... ~- ......... .. ,~ ~.=;~,., .,-, ~.~r;al~ gov~rnment?unctlc-ts or activities. - ' ~- ~-' -- ..... = ~ '~ The operat OhS of the TDA funds of :he City are acccu?.ted for in a se.oara:e set cf s~h-~.__.,= .... nc accounts thai comprise Ihe Funds' asse.:s, lia:i itt, es fund bata~ce, revenues, a~d expendL, ures.. The Streets and Roads Fund, the Public Transit Fund, which accounts for the Amtrak S:a,::,on operating expenses, and the Bikeway and Pedestrian Fund are accounted for as special revenue funds within the governmental category using the mod[Fed accrual basis of accounting whereby revenues are recognized when the,/become measurable and availa:ie and expenditures are recognized ',','hen the liabiiities ate ;ncurred. The City reports deferred revenue on its balance sheet. Deferred revenues arise when a pctent:,ai revenue does not meet both the "measurable" and "availa:!e" criteria for recognition in the cu ..... :eriod. In subsequent periods, when both revenue recognition cdteda are met, or vvh, en the Ci~'/has a ie.;ai ~iaim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. 8 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE,-; (Continued) Interfund Receivables/Payables During the course of operat OhS, numerous transactions occur beb, veen individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet. Short-term inter'fund loans are classified as "interfund receivables/payables." Fund Equity Designated fund balances represent tentative plans for future use of financial resources. .Comparative Data Comparative data for the prior year are presented in [he accompanying financial statements in order to provide an understanding of changes in the fund's financial position and operations. NOTE 2 - CASH AND INVESTMENTR Cash balances of the TDA funds are pooled with those of other funds and investec~ by the City to maximize investment opportunities and yields. Investment income resulting from this pooling is allocated among the funds based upon each respective fund's average cash balance in relation to the aggregate investment balance. Further information regarding the City's cash and investment may be found in the City's Comprehensive Annual Financial Report. NOTE 3 - DEFERRED REVENUES The Local Transporta~ on Fund (LTF) and State Transit Assistance Fund (STAF) allocate funds to the City. to fund its Transportation Development Act (TDA) operation. The TDA requires that any funds not used must be re!umed :o their source. LTF and STAr attccae~cns are consid,=,'=d earned ,,',,hen the,/are properly s3ent on acoraved --,-,' , " " ~' ~ .-, ~,jec,s.A;iccaticns received but ,'~a: ==~,=,-' are ,':,--.-, .-' ' ' .... r~.ed as deferred revenues. The follov,';rg :aC[= S,'JFTh'Tia:'iZeS" ~ v~.,, ,, .... ..... ,~.- accouc, t ;or .,~ fiscai '/ears ended June 30,: 2001 2OOO -3ikeway and Pedestrian Fund: Deverred Revenue, beginning of yea,- Funds Received S 1,079 S 155,959 TDA Funds AJlowed 176,000 7,033 Funds Returned to KernCOG (138,664) (157,015) (4.898) Deferred Revenue, end of year ~ $8,415 S 1,07.c, Pubiic Transit Fund: Deferred Revenue, beginning of year Funds Received $ - $ TDA Funds ,~lowed 105,306 . (96,833) _ Deferred Revenue, end of year ~$-- 8,473 _~ 9 OTHER REPORTS · . :~:?.. %..../~- l~ao~m A~'~oN6¢i:~'.. ' ....._....-'-.'....L~[~,~ a~:.*.;,~,'... . . .. . : ~. _~...~:~~. . t....' ' .I ID.~8[IC tEO~It~I5';:-..~- -:--:' .+ .' ' ~ .' ~F Of~~ ;' Peter C. $ro~, CPA Burton H.A~rron~CPA, M~ REPORT ON COMPLIANCE AND ON INTERNAL err, ~. ~andall. CZ~/X~V, CP CONTROL OVER FINANCIAL REPORTING BASED ON ~ni~ ~ ~ey~, C~.~ AN AUDIT OF-FINANCIAL STATEMENTS PERFORMED IN ACCORD~CE WITH GOVERNMENT AUD~ING ST~D~DS .~d~ [. P~[d~n,C~x AND THE RULES ~D REGU~TIONS OF THE ha~'ey f. m~o~'n. C2A T~NSPORTATION DEVELOPMENT ACT .~d~ ~u~edo~-Hi[L CPA To the Ci~ Council ~t~v~ ~. su~ck, cP.~ Ci~ of Bakersfield Ail~n K. K~ter. CPA Bakersfield. California .:..~, ~. Kms,,C??,. ;l~ We have audited the financial statements of the Streets and Roads Fund, the Bikeway and ~hrLs M. F,~om.,bur~h. CPA Pedestrian Fund, and the Public Transit Fund of the City of Bakersfield, California, for the years ended June 30, 2001 and 2000, and have issued our re~c~ thereon da~ed November o~ ~i..~.~c~..?.~ 14, 2001. We conducted our audit in accordance with auditing'standards generally accepted ;rad~¢,,'~t. ~:~k::~.c~.~ in the United States of America and the Government Aud~ing Standards, issued bv the Comptroller General of the United States. Our audit was fu~h=- made to determine that ~ ~h=~ ~h~:.,:?.~.c~ allocatic~s made and expended by the Ci~ were made in accordance wi~ tine Trans~¢~tion t, c~.~ Development Act (TDA). Those * '= ~- ' s,anc~r~ require that we ::an and pedcrm the audit to r._~ona=l~ assdrance about, ' =-~= ' .,~:$da.&.5(cDame~.:27.~. ob(nih ==- ~'= ~ ..... r the financial s:ateme%ts are iF== c~ material misstatement. As pa~ cf ~' '~'~' . ~O[mh ,iF~ reasonabie assurance accut .,vh .... =. '- .3:tv of Bake:sfie[C's TDA .hcS~t'.e 2. 'Scr:::es CF.~ financiai state,errs are free of materfat m~sstatement, we 2e;cr-=~ tests of :rs comz;iance :~:~=d: ~.',~:.:~.~7.~ with ce~a;n provisions cf laws, regulations, ce,Facts, ann crams, ncncompiiance ',v~2z which could have a direct and material effect on However, providing an opinion on compliance with those provisions was not an objecdve of our audit and, accordingly, we do no express such an ccm:.cn. The results of our tests disclosed no instances of noncompliance ,hat ar~ required ,o be resoled under Government Auditing Standards. ' Internal Control Over Financial In planning and pedorming our audit, we considered the C~:': cf ~akersfield TDA's i~rernal control'over financial reposing in order to determine our auc;t~nc :rocedures for the :u~ose of express;,ng our opinion on the financial statements and ~ot :o provide assurance on the internal control over financial reposing. Our consideration of the internal control over financial reposing would not necessariiy disclose all matters ;n the internal contrcl over financial repoAing that might be material weaknesses. A ma:er~ai weakness is a condition in which the design or operation of one or more of the internal ccnrrol components do~ not reduce to a relatively Iow level the risk that misstatements in amounts that would ~e matedal in relation to the financial statements being audited may occur ar~ not be detected w~,hin a timely per~od by employees in the normal course of 2edorm~c t;~eir assigned functions. We noted no matters involving the internal control over financ~a~ re:o~ing and its o~era(~on ~at we consider to be material weaknesses. ' 10 ._-" This report is intended i'or U~e informaticn of management, the City Council, the Kern Council of Governments, and the State Controller's Office. However, this report, which is a matter Of public record and its distribution is not limited. ... BROWN ARMSTRONG RANDALL REYES PAULDEN & McCOWN Bakersfield, California November 14, 2001 - 11 Examples of ProperW Rental/Leasing Businesses that hold ~City of Bakersfield Business Tax.' Certificates: Bakersfield.Mall LLC (Valley Pt.aza Mall) Bakersfield Retail-Center LLC (East Hills Mall) Bakersfield Shopping ~Center .Castle & Cooke California, Inc. Frui~ale Properties LLC Goldman E,nterprises Gregory D. Byaum & Associates, Inc. Hopper Properties LP Lavetta~Ennis Apts Stockdale Business Center Stewart Rentals TGM Cambridge Village, Inc. Truxtun Business Plaza West-fair Apartments Rental properties include: Apartments,~Condominiums, Houses, Office Buildings, Office Complexes, Business Complexes, Warehouses, Shopping Centers and Shopping Malls.