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Home My WebLink About02/08/1999 BAKERSFIELD Patricia J. DeMond, Chair Mike Maggard Mark Salvaggio Staff: Darnell Haynes AGENDA BUDGET AND FINANCE COMMITTEE Monday, February 8, 1999 12:00 noon City Manager's Conference Room Second Floor - City Hall, Suite 201 1501 Truxtun Avenue Bakersfield, CA 1. ROLL CALL 2. ADOPT AUGUST 17, 1998 AGENDA SUMMARY REPORT 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS None 6. NEW BUSINESS A. BAKERSFIELD MUSEUM OF ART FUNDING REQUEST - ChristensenlThiltgen B. CITY INVESTMENTS - Klimko C. CONTRACTING FOR TEMPORARY EMPLOYEES WITH AN EMPLOYMENT AGENCY - Christensen D. COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) AMENDMENTS - Wager E. PROPOSED MEETING SCHEDULE 7. ADJOURNMENT DWH:jp DRAFT B A K E R S'F I E L D ~ ~ ~~ Randy Rowles, Chair Alan-Tandy, City Manager Irma Carson Staff: Damell Haynes Kevin McDermott AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, August 17, 1998 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order at 12.30 p.m. Present: Councilmembers: Randy Rowles, Chair; Irma Carson; and Kevin McDerm°tt 2. APPROVAL OF JUNE 15, 1998 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS A. KERN ARTS COUNCIL'S REQUEST FOR FUNDING Assistant City Manager Teubner briefed the Committee. An updated proposal including additional budget information was received from the Arts Council with a request for a contribution of $16,500. Representatives from the Arts Council gave AGENDA SUMMARY REPORT D AF¥ BUDGET AND FINANCE COMMITTEE Monday, August 17,1998 Page -2- an overview of the projects proposed for the 1998-99 year. After discussing which projects had the highest priority, the Committee approved $500 for Art About which is the construction of display cases for artwork in City Hall; $1,500 in matching funds for quarterly Centennial Plaza Art Shows using the new plaza to promote local artists; and $14,500 in matchin_g funds for Entry_ Point Beautification using mosaic murals and landscaping at four entry points into the City for a total contribution of $16,500. Committee member McDermott stressed that except for the wall cases in City Hall, funds should be matching. The Committee could support funding no more than 50 percent for any one project, with the balance being raised in the community. The Committee recommended the request be forwarded to the City Council for approval. 'B. TAXICAB ORDINANCE REVIEW Assistant City Manager Stinson provided an update to the Committee which identified several proposed changes to the ordinance. Basic changes include new language in the ordinance bringing the City into compliance with state law regarding drug and alcohol testing; deleting language regarding the leasing of cabs to conform with current law for both the Internal Revenue Service and state law; changes to the advertising language to be consistent with First Amendment issues; requiring proof of workers' compensation insurance as required by state law; limiting the ability of the taxi cab operators to scan other taxicab calls, and updated liability insurance language. Copies of the proposed ordinance have been sent out to the cab operators and no comments have been received back. Mr. Bradford, Kern Transit Company President, spoke and had questions. Deputy City Attorney Gennaro responded. A lease relationship does not exempt you from requirements in the ordinance even though you are leasing a taxicab from a company meeting all the requirements in the ordinance. If you operate as an independent or business under another name, you would be required to get a business license, a carrier/driver's permit, and workers' compensation if you have other employees working for you. Sole operators with no employees under state law are not required to-have workers' compensation. To a follow-up question, the Police Department will handle compliance on a case by case basis. Committee member McDermott noted that there were some fees listed with dollar amounts in the ordinance and since the City has established a cost recovery system, the dollar amount should be taken out and the cost recovery system should be referenced. The Committee asked staff to make the change and unanimously voted to approve the ordinance and refer back to the Council for action. AGENDA SUMMARY REPORT D AFT BUDGET AND FINANCE COMMITTEE Monday, August 17,1998 Page -3- 6. NEW BUSINESS None 7. ADJOURNMENT The meeting was adjourned at 1:06 p.m. cc: Honorable Mayor and City Council DWH:jp S:/Darnell/budfinmin8-17.98 Bakersf..ield Museum of Art P. Oi Box 1911 Bakersfield, CA 93303-1911 1930 R Street, Bakersfield, California 93301 805.323.7219 * fax 805.323.7266 December 9, 1998 EXECUTIVE COMMITTEE Elizabeth Blaine Pres/dent Phi, Zand.r Mr. Alan Tandy, City Manager President Elect Tom Heath Cityof Bakersfield ~s,P~,/d.n, City Manager's Office Te-v We~del .d~,.,,~. v,ce Pt./de., 1501 Truxtun Ave. su~..~... Bakersfield, CA 93301 Finanoal Vice President Cymhla Icardo Secretary . Jenny Hannah V~ce Pres~dem Dear Alan: Tom McCarthy Personnel V~ce Pres~dcm tim:la Robimo~ V, cePre.*n, AS always, I appreciate your prompt response to my inquiries. I will most o,,~c~o,s certainly pass on to the Board of Trustees your thoughts on our recent P.,. A~gro requests. Christina Blaine Sharon Casey J~,,,Caugh., I hope you and your family have a happy holiday season. tJ. Cathy Curtis Darling D. Shay DeWeese teon Elwell ~,~. O.,in Executive Director Greg Hardy Krygyna Jammon ~ananne Klein Bruce Mac,in Nancy Mazzei Sfella McMur~rey Dr. VVilfiam Moore Kay Noah Barbara Poe Chali~ Robinson Fay Rosenlieb Sunny Scofield Cindy Sproles Senti Stanley Mary £ou Thoms~ Esther T~res Claudia True Sandy Ventura ~v~arc Widelock Belty Younger C/~a/rman, Blue R~bben C,rc~ . . Charles G. Meyer DFC I lgg8 ~e "::TY MANAG~FI'$ OFF~C BAKERSFIELD Alan Tandy · City Manager November 30, 1998 Mr. Charles Meyer Ms. Elizabeth Blaine Mr. Terence Werdel Bal~ersfield Museum of Art P.O. Box 1911 Bakersfield, CA 93301 Dear Ms. Blaine and Messrs. Meyer and Werdeh I have received your November 13, 1998 communication on the museum. As I explained in my November 2'~ letter, the Council committees are in the process of being revamped. It currently appears the first meetings will be in January. We should, however, be able to meet your February deadline. We appreciate and value the museum and the work you do. Staff recommended the sale of the property to you for $5,000 and the City Council concurred. In fairness to you, however, and to avoid surprises, staff will be recommending denial of your request to both the committee and the full City Council. The City has already given you property and a building for a token amount. As the party responsible for preparing the City budget, I cannot recommend a commitment, out of the budget cycle, of $500,000. There are simply too many priorities facing the City in the areas of public safety, streets, parks, and other critical services. The City Council, of course, can accept or reject a staff recommendation. If you are looking at other opportunities, I thought it would be more fair to let you know, in advance, what staff is recommending. Best wishes. Sincerely, ~ Alan Tandy ~ City Manager/ AT:rs c: Alan Christensen Trudy SJater City of Bakersfield · City Manager's Office · 1501 Truxtun Avenue Bakersfield · California · 93301 (805) 326-3751 · Fax (805) 324-1850 Bakersfield Museum of Art 'O:~.'~,-..:;..'. ..... P. O. Box 1911 Bakersfield, CA 93303-1911 1930 R Street, Bakersfield, California 93301 :: NOV ~ ~ t998 805.323.7219 * fax 805.323.7266 November 13, 1998 CITY MANAGER'S OFFIC7 EXECUTIVE COMMITTEE E,zo~.,hS,a~.. Mr. Alan Tandy, City Manager Pres,dcm PM Zandm City of Bakersfield PreUdent Elect Tom Heath City Manager's Office ~,,~.~.n, 1501 Truxttm Avenue terw Werdei Adm~ni,~,.. v~eP~en, Bakersfield, CA 93301 Su~n Heroine C~.,h~,catdo Dear Mr. Tandy: Secretaq, Jenny Hannah Vice President ,am McCa,~ Thank you very much for your prompt response to our recent request of the Pe~sonne~ V, ce Preudent ti.,~,,o~n,on .City of Bakersfield made in my letter of October 20, 1998. V~ce President o,.~cro.s The Trustees of the Bakersfield Musetun of Art agree with your valid concern ,e,. ^,~ra concerning a commitment by the Museum to remain in Central Park. Christina Blaine Sharon Casey ~,nCo~h.,, AS We outlined to Mr. C"nfist~en in' our meeting on October 15, '1998, the ~,~c~ [V[usCLLrn has received very attractive otters to relocate our facility to other ~u. Co,~ locations. Althoush the Trustees prefer to .remaJa in CenmeJ Park, the C~r,,,Oar,i.~ consideratiOn offered ~'om the other developers camtot be ilgtored, bt spite of D. Shay DeWeese ~oonE,~., the fact, the Trustees have agreed to remain in Central Park if the City of s,on ~h~., Bakersfield commits to the Museum to perform the following three items: Mike Griffin Greg Hardy K,y,,naj ..... 1. The City deletes the reversionary clauses stated in the current Grant Deed; Marianne Klein ~,u~.Mocl,n 2. A commitment of $500,000.00 from the City, payable in five (5) equal ~a~Ma,~., annual installments, to be used in the construction of the new Museum Stetro McMur~rey ~.'~,,,~m Moor. facility; and Kay Norlh ~a,~ ~, 3. The donation by the City of an additional acre adjacent to the Museum to Chalira Robinson ~,,o,,.,,,~ be deeded to the Museum, flee of restrictions, upon the Museum's request so~nyS,o~o~ on or before 2010. Cindy Sprole$ S,o,S,a~,,, AS yOU lmow, the supporters of the Bakersfield Museum of Art very strongly Morytou th .... believe that a new, larger and more active Museum will contribute greatly to Es~hm Torres Oaod,at,~. the cultural activities of the community and benefit all of our citizens. We Sa,dyV.n~,a appreciate your personal interest in the Museum and' Your past efforts on behalf Marc Widelack of the City to keep the Museum at its downtown location. The completion of POffi Wilson · .~,~o~no.r Our new Museum facility in Central Park will complement the revitalization of o,,~,o~ downtown Bakersfield and the new Centennial Arena. Chad, man, Bloc R~bbon Grote Charles G, Meyer We again hope that with your support, the City can commit to our requests and to the construction of the new facility in Central Park. Because of other commitments relating to the construction of the new facility, the Trustees of the Museum request that a decision on our request be made before the February 1999 City Council meeting. Thank you very much for your consideration in this matter. Very Truly Yours, ~ Terence Werdel Executive Director President Vice President & Board of Trustees Legal Counsel BAKERSFIELD Alan Tandy · City Manager November 2, 1998 BAKERSFIELD MUSEUM OF ART P O Box 1911 Bakersfield, CA 93303-1911 ATTN: Charles G. Meyer, Executive Director Elizabeth Blaine, President Terry Werdel, Vice President and Legal Counsel Re: Letter dated October 20, 1998 Thank you for your letter to Alan Chdstensen of October 20, 1998. We will get your requests to a Council Committee for their consideration. We are approaching the time in December when we reformulate the committees, so I do not presently have a schedule to provide you - it could be December or even January. I was willing to recommend the change in the deed restriction to facilitate your expansion on site. Your letter, however, adds to that a request for a half million dollars and indicates you are considering leaving the current location. $500,000 will be very difficult financially with public safety and other demands that the City is facing. Further removal of the deed restriction only makes sense if you are committed to staying, while it certainly does not make sense if you are shopping other locations. We will let you know what committee assignment is given when we have direction from the Council. Sinc ly, City Manager cc: Alan Christenen Trudy Slater City of Bakersfield · City Manager's Office · 1501 Truxtun Avenue Bakersfield · California · 93301 Bakersfield Museum of Art P. O. Box t911 Bakersfield. CA 93303-1911 1930 R Street. Bakersfield. California 93301 805.323.7219 · fax 805.323.7266 0 rob r20 1998 C e , :..,,- ...~ . ~.~ ~si~t Ci~ M~g~ ~ 1501 T~ Ave. ~ B~fiel~ C~ 93301 ~1 Vce ~.~"~ We ~i~e ~e ~c ~d effoa e~d~ by ~e Ci~ M~g~s Office ~d ~e ..,~. Ci~s Leg~ S~ ~ ~p~g to ~olve o~ ~bl~ ~& ~e ~o~ ~ elaine ~ ~e con~t for ~e be~ ~e Ci~ of B~field ~d ~e m~ B~field M~em of ~. We woffid ~ to fo~ow yo~ ~gg~on ~d ~ ~m~h ~e Ci~ Co.oil ~y ~ ~ i~e. u.c.~ For ~c CiF Co~cil's c.. ~ cla~e ~d why it is ~p~five ~ it be o~ ~*~ ~ m m~em ~ it wo~d ~ ~e $2.25 m~on n~ ~~ pmd~t to move ~e pmj~t ~ ~d bo~w $1 ~om W~ ~v~ fomd a ~ ~ how~, ~e ~ 1o~ ~ ~ .' ~o~g t° ~e ~m, ~c c~e j~p~ o~ ~ci~ wo~ It wo~d be ~ foo~ to ~o ~y sight ~v~ ~ a pmp~ ~ mffid n~ ~ be wo~ mo~ ~ $5,000. Such ~ ~~ ~ ~e ~ ~ d~ct ~ ~ek ~omibi~ to ~ Mmem md i~ ~o~. ~ ~" We ~ ~ly ~e most ~cc~s~ mm~ ~ B~field ~d K~ Co~. C~ Itu. ~v~ N le~ ~m ~e ye~ o~ ~u~ ~d aRc.ce ~ve mom ~e doubl~. ~,,~ e~g ~i~y. We ~ve ~cc~y d~elop~ n~ ~c~ ~t 01~ 81om Cho~ G M~ economically disadvantaged. If our progress continues we will eventually outgrow the new facility. The grounds on which we are situated are less than two acres - a hindrance to future expansion. We have recently found alternative sources of support for land and money if we agree to relocate. The offers are attractive and insure that we would continue to sexve the citizens of_this city. In fact, it is possible that we might better serve the community if we accepted one of the alternatives. The Trust~s will review our options the. last week in December 1998. To match the tentative offers made by other soUrCes we would request that the City give consideration to: 1) deletion of the reversionary Clause, 2) a ~ of $$00,000 to reduce indebtedness, with the option to pay over five years, and 3) the donation of an additional acre adjacent to the Bakem/ield Museum of Art to be deeded to the Museum in 2010. We appreciate the City's pa.st support 'and feel in many ways our current location could be excellent. For that reason, we hope that the members of the City Council look favorably on our request: In any event and regardless of location, we feel your derision and. ours will in the end be the best for' the Sin ' o Executive Director President ,Vice President Legal Counsel cc: Mr. Alan Tandy Ms. Pat DeMond POLICY RESOLUTION NO. ]. 8 6 - g ? A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD ADOPTING INVESTMENT POLICY. WHEREAS, Section 53646 of the California Government Code requires the Treasurer or Chief Fiscal Officer to render an annual statement of Investment Policy to the legislative body of the local agency; and WHEREAS, the City of Bakersfield desires to adopt Investment Policy in conformance with California Government Code. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as follows: The Council of the City of Bakersfield does hereby adopt the Investment Policy as contained in Exhibit "A" attached hereto and made a part hereof. o0o--m I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on DEC ! ? 1997 by the following vote: AYES: COUNCILMEMBER CARSON, DEMOND, SMITH, MCDERMOTt, ROWLES, SULLIVAN, SALVAGGIO NOES: COUNClLMEMBER ABSTAIN: COUNCILMEMBER ABSENT: COUNCILMEMBER CITY CLERK and EX OFFICIO/)f the Council of the City of Bakersfield APPROVED: 0EC 1 1 1997 CITY OF BAKERSFIELD APPROVED AS TO FORM: JUDY K. SKOUSEN CITY ATTORNEY By: , ~" ~ LAURA C. MARINO Assistant City Attorney City of Bakersfield LClW'neg S:~--.OUNClL~RE S~/NVEST.POL Page I of 4 CITY OF BAKERSFIELD INVESTMENT POLICY This investment policy applies to the investment activities of the City of Bakersfield and related entities. Idle cash in all funds is pooled for investment purposes except tax exempt bond proceeds, which are separated for arbitrage record keeping as required by federal tax law, and the Firemen's Disability and Retirement Fund which is administered separately under Mumcipal Code Section 2.92. This policy is intended to provide guidelines for the prudent investment of the City's temporary idle cash, and outline the policies for maximizing the efficiency of the City's cash management system. The ultin~)¢ goal is to enhance the economic status of the City while protecting the safety of its pooled cash. Investments shall be made in the context of the "prudent investor" rule: Investments shall be made with judgement and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The city is further governed by California Government Code, Section 53600 et. seq. and other imposed legal restrictions. Within the context of these limitations, the following investments are authorized, as further limited hereto (Single aste~k * denotes term or percentage imposed by State statute. Double asterisk ** denotes term or percentage utilized by City staffwhich is more restrictive than statute.): United States Treasury Bills, Notes and Bonds are securities ~ich have the full faith and credit of the Umted States pledged for payment of principal and interest. Although there is no percentage limitation of the dollar amount that can be invested in these categories, the "prudent investor" rule shall apply. Maturities are limited to three** years from settlement date. Treasury Bills (T-Bills) are short-term debt obligations of the United States government, issued weekly with maturities up to one year. T-Bills are considered to have virtually no credit risk and to be the most liquid short-term fixed income instrument. Prices on T-Bills are considered to have virtually no credit risk and to be the most liquid short-term fixed income instrument. Prices on T-Bills are quoted on a discount basis. The difference between the discount price and the full face value paid at maturity equals the total return. Page 2 of 4 Treasury Notes (T-Notes) are imtially issued with two to ten year maturities. T-Notes like Bills have virtually no credit risk and have liquidity through an active secondary market. T-Notes are issued at Par ($1,000) with a coupon or fixed rate of interest. The price or market value will fluctuate above or below par depending on the coupon rate and whether interest rates are rising or falling. T-notes mature at par. Treasury Bonds (T-Bonds) are initially issued with ten to thirty year maturities and have characteristics similar to T-Notes. Obligations issued by the United States Government Agencies such as the Federal Farm Credit Bank System (FFCB), the Federal Home Loan Bank (FHLB), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal National Mortgage Association (FNMA). Government agencies issue debt in the form of discount notes, much like T-Bills, and notes and bonds similar to T-Notes and T-Bonds. While agency debt is not a direct obligation of the U.S. government, it is rated AAA, the highest rating. At the time of purchase no more than 10%** of the portfolio may be invested in any single agency name. Maturities are limited to three** years from settlement date. Bankers Acceptances (BA's) are time drafts or bills of exchange, issued from a letter of credit, and are used to finance international trade. When the aceeptmg bank stamps "accepted" on the draft the bank guarantees payment of the draft at a specified future date and thereby creates an acceptance. BA's are issued with maturities of 30 to 270 days and trade on a discount basis. BA's are considered extremely safe in that there has never been a default on a BA. No more than 10%** of the portfolio may be invested in BA's issued by any one bank. No more than 40%** of the portfolio ma.v be invested in this category. Eligible BA's are those issued by b~,s with a short term debt rating of at least A-l** by Standard and Poor's Corporation or P-l** by Moody's Investors Service. Commercial Paper (CP) is a short-term promissory note issued by large, well-known and financially strong corporations. CP is sold on a discount basis. The maximum maturity is 270 days with'most issued in the 30-50 day maturity range. Eligible (CP) is "prime" quality ranked A-I by Standard and Poor's or P- I by Moody's Investors Service and issued by a domestic corporation having assets in excess of $500 million and having an A or higher rating on its long term debt as provided by Standard and Poor's or Moody's. Purchases of eligible commercial paper may not exceed 180' days to maturity. No more than 10%* of the portfolio may be invested in commercial paper issued by any one corporation. No more than 15%* of the portfolio may be invested in this category. Repurchase Agreements, commonly called Repos, are transactions in which a customer (City of Bakersfield) deposits cash at a fixed rate of interest and receives securities as collateral. Normally the securities are U.S. Treasury notes or bonds and are held by a Federal Reserve Bank. At maturity, the securities are returned and the customer receives principal plus interest. Repos can be done with banks or dealers with which the City has entered into a master repurchase contract that specifies terms and ~ %~',9tl~.o__ Page 3 of 4 conditions of repurchase agreements. The maturity of Repos shall not exc.~xt 30** days. No more than 30%** of the portfolio may be invested in this category. Local Agency Investment Fund (LAIF) is a State of California managed investment pool for local agencies within the State. Investments may be up to the maximum permitted by State Law or 30%** of the portfolio whichever is less. Time Certificates of Deposit (TCD's) are similar to a savings ~rtificate that anyone can purchase at a bank where there is a specified rate of interest and a specified maturity rate. In the public funds area TCD's are collateralized in accordance with California Government Code and are non-negotiable. At the time of purchase no more than 10%** of the portfolio may be in the TCD's of any one institution. Maturity is limited to three ** years. No more than 30o/0** of the portfolio may be invested in this category. Mutual Funds are money market funds meeting criteria prescribed in Government Code 53601 and related legislation. Investments in this category are limited to funds that invest in U.S. Government Securities and maintain a net asset value of one (daily liquidity). The purchase price of shares shall not include any commission that these companies may charge. No more than 15%* of the portfolio may be invested in this category. Mutual Funds are used primarily for the investment of bond proceeds subject to arbitrage reporting. Should an investment percentage and portfolio limitation be exceeded due to the unexpected fluctuation in portfolio size, the affected securities may be held to avoid losses. When market values are such that no loss is indicated, the City Treasurer shali consider restructuring the portfolio basing the decision in part on the expected length of time the portfolio will be imbalanced. Ineligible investments are those that are not described herein, including but not limited to, negotiable certificates of deposit, medium term corporate notes and reverse repurchase agreements. Criteria for selecting investments and the order of priority are: !. ~ The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination or these amounts. The City only operates in those investments that are considered very safe. 2. Liquidity, This refers to the "ability to easily sell" at any moment in time with a minimal risk of losing some portion of principal and interest. Liquidity is an important investment quality especially when the need for unexpected funds occurs occasionally. 3. Yield. Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. Page 4 of 4 The prudent investment term for the City's temporarily idle cash vs. the Firemen's Disability_ and Retirement Fund is markedly different. In order to meet fl~:tuatmg vendor pa.~anent amounts. Ci_ty funds must be more liquid finvested for shorter terms) than retirement funds where monthly pa_vments to retirees are a constant amount. Therefore. a five year maximum investment term pursuant to Government Code Section 53601 is appropriate for the retirement funds. Depending on the level of interest rates, a five year term is sometimes necessary_ to achieve a 6 percent actuarial rate of return Up to 25 percent of the retirement fund may be invested in securities of a single agency of the four triple A rated United States Government agencies authorized in this policy. These two exceptions of five year maximum investment term and a maximum of 25 ~rcent per agency are necessary_ in order to assure retirement funds are fully invested at or above the actuarial investment return ral~, Qualified Institutions. The investment staff shall investigate institutions which desire to do business with the City to determine if they are adequately capitalized, make markets in securities appropriate to. the City's needs, and are recommended by managers of portfolios similar to the City's. Whenever possible investments are placed locally. ~.af. gliggp, ia~ Securities shall be delivered to the City by book entry., physical delivery or by third party custodial agreement. Investment Objective. The Cash Management system of the City of Bakersfield is designed to accurately monitor and forecast expenditures and revenues, thus ensuring the investment of monies to the fullest extent possible, including the estimated float for the Active Account and Payroll Account. The City attempts to obtain the highest interest .vields po~;sible as long as investments meet the criteria required for safety and liquidity and do not exceed a term of three years and are within portfolio percentage limitations. The City strives to maintain the level of investment of all funds as near 100% as possible through daily and projected cash flow determinations. Cash management and investment transactions are the responsibility of the City Treasurer. The City holds its Treasurer and his designees harmless for responsible investment transactions undertaken in accordance with the Investment Policy, provided deviations fi.om expectations are reported in a timely manner. The basic premise underlying the City's investment philosophy is, and will continue to be, to ensure that the money is always safe and available when needed. INVSTPLC.WPD ~t31t'~lM ~ I OADMINISTRATIVE REPORT I MEETING DATE: December 9, 1998 I AGENDA SECTION: Consent Calendar I ITEM: 8.mm. TO: Honorable Mayor and City Council APPROVED ,/1. FROM: Alan Christensen, Assistant City Manager DEPARTMENT HEAD ~'~ DATE: December 1, 1998 CITY ATTORNEY CITY MANAGER SUBJECT: Contracting with an Employment Agency for Temporary Employees RECOMMENDATION: Staff recommends referral to the Budget & Finance Committee. BACKGROUND: City staff is proposing to contract with a private sector employment agency to meet much of the temporary and part-time employment needs of the City. Staff feels that there is potential for considerable cost savings and other benefits by outsourcing temporary hiring to an agency. There are some significant problems associated with our current prectice of hiring temporary employees. The Human Resources division recruits and hires temporary employees on behalf of City departments, but the City charter limits temporary employees hired through the City to 960 hours worked per year. After a temporary employee has worked 960 hours within one year, the charter requires that we terminate their employment. Typically, another temporery employee is recruited to replace them. This continuous recruitment cycle means increased medical examination costs, constant orientation and training for departments, and significant disruption for the departments that employ these workers. There are significant insurance expenditures associated with temporary employees hired by the City. Our analysis shows that workers' compensation costs for temporary employees are rising. Overall, some of our largest workers' compensation claims involve City-hired temporary employees. We also find that City-hired temporary employees nearing the end of their 960-hour limit are more likely to file workers' compensation claims against the City. Staff is proposing a three-month pilot, project of using a professional employment agency to fill most of the temporary vacancies in three divisions of Public Works. The agency would be responsible for pre-placement medical exams, workers' compensation costs, unemployment insurence costs, and other costs. In addition, the City Attorney's Office confirms that the charter limitation of 960 hours per year would not apply to employees hired through an employment agency. Some employment agencies even provide benefits to their employees after working a certain number of hours, which could enhance morele for the temporery employee pool assigned to the City. Employment agencies are currently used by the City on a very limited basis, and December 1, 1998, 11:41AM S:~,dmin Rpts\Temp Agency.wpd ADMINISTRATIVE REPORT Page 2 we are generally pleased with their employees and the service they provide. As part of the pilot program, we would solicit feedback from the hiring managers on the quality of hires and overall satisfaction with the agency. The labor union representatives for the Blue and White Collar Group have been contacted about this issue, and they are unopposed to more wide-spread use of a employment agency for temporary employees. Staff is recommending this item be referred to the Budget & Finance Committee for further review and approval prior to implementation. (Brief title from the subject) December 1, 1998, 11:41AM S:~Admin Rpts\Temp Agency.wpd 02/03/99 WED 08:19 FAX 805 328 1548 BFLD ECON & COMM DEV -~-*-> CITY I~IGRS OFFICE ~001 .. B ,A K E R S F I E L D ' Economic and Community Development Department M E M O R A N D.U M January 27, 1999 TO: lake Wager, Economic Development Director FROM: Geoi~ge Gonzales. unity Development Coordinator SUBJECT: Proposed Amendd~nt for CDBG Funds In reviewing the balances of projects' either completed or canceled during the last several months, amendments are proposed to reallocate CDBG funds for new projects identified during the submission of 1999-00 CDBG proposals. Below is a summary of projects to be adjusted and new projects to be included in this amendment: Southgate ~1 Annexation - S~eet Lighting Improvement Project ($51,500) Upgrade e~sting street lights to City a~dards when area is annexed to the City. Proje~ deleted until the area is ~exed imo the City. Funds reallocated to faster mo~ng projects. Southgat e ~1 Annexation - Fire Hydr~t and Water System Improvements ($42,000) Replacement ofunderfized water main and hydrants when area is ~nexed into the City. Project deleted until the ~ea is annexed into the City. Funds re,located to faster mo~ng proje~s. ~hase O Union ¢ 1 O - S~eet Improvements $39,500 Street matefi~s, curb ~d ~tter improvements in U~on ~10 ~nexation ~ea. Addition~ hms ~11 be reco~ended in FY 99/00. (Ward 1) Chester Avenue ~ 3 - Water System Improvement (Phase 0 $54,000 Upgrade water system in Chester Avenue g3 ~nexation ~ea. Addition~ ~nds ~1 be recommended in FY 99/00. ~ard 2) dlk:P:\OEOROE~cdbg anaend pr~posals.m~m Page - 1- 02f03,/99 WED 08:21 FAX 805 328 1548 BFLD ECON & COMM DEV ~-~ CITY MGRS OFFICE ~002 FY ~ 7 panama ~10 - ~urB ~ ~et Projects ($163,293) Comtm~io~ of curb ~d ~tter in the P~am~ ~10 ~ex~tion ~e~. Project completed as designed. (W~rd 2) · ~pA pl~ound I~prove~ents ~iI~o~ Park $114,546 ln~t~ll~tio~ of ~A metier plByground efluipm~nt and ~u~in~. (W~rd B~ines~ Z~an Pro, am Economic Development $4], ~i~d~ ~i~t~n~ to qu~ifi~d ~sting p~at~ for-profit ~ntiti~ to ~r~lte jobs for low-in~om~ i~i~duals. Addition~ ~nd~ will be FY 95/96 · , , , Sewer Connection Fee Lo~ Pro~am (49,560) Fin~dal assistance to qualified low-income resid,nts for payment of s~w~r connection fee, Interest in this program is li~ted. Funds cu~em budget for t~s activity. (Wards ~1) [~ ]~ ~lllB~ ~' ~ ,~I~I~HI]i*~I~'~ ~ ~i: ~. a J liJ~ 'q j'~'~] ~,h ~nm '~' ~ - ~ Nartin Luther King Jr. Pat~ Center Rehabilit~ion Projeet :$36,522 ~habilimfio~ of kitchen, oonf~mn~ room, insmlhfion or,AC uNts resu~oing ofth~ ~stin~ t~is ~oum. (W~rd 1) Friendship Housing Co~muni~ Center Rehabilitation Projects Pmi~ ~nding assist~ce to reMbilitate the ~sting tenuity center located at 2424 Cottonwood. Additional ~nds ~11 be reco~ended in FY 99/00. ~d ,1) , We would like to place these amendments on the Budget and Finance Committee agenda of February 8, 1999. With their authorization a public notice could be published on February 12, 1999 requesting a 30-day comment and review period. Final City action could be set for the March 24, 1999 City Council meeting. dlk:P:\OEOROEXcdbg amend proposals.mere Page -2- " BUDGET AND F~NANCE CO~J~JiTTEE PROPOSED 1999 SCHEDULE Budget and Finance Committee ~ City Council Meeting iiiiiiii!!i:ililiiiii;iiiiiiiil; Holiday Budget Hearing or Department Presentations JANUARY FEBRUARY MARCH S M T W TH F S S M T W TH F S S M T W TH F S 2 1 2 3 4 5 6 1 2 3 4 5 6 3 4 5 6 7 8 9 9~ 11 12 13 7 8 9 10 11 12 13 10 11 12~ t4 15 18 16 17 18 19 20 14 15 16~ 18 19 20 17 ~ 19 20 21 22 23 21 22 23~ 25 28 27i 21 22 23 24 25 28 27 24 25 26~ 28 29 30 28 30~ 31 APRIL MAY JUNE S M T W TH F S S M T W TH F ~' S M T W TH F S 1 2 3 1 I 2 3 4 5 4 5 6 7 8 910 2 3 4 5 6 7 8 6 7 8 9101112 11 12 13~ 15 18 17 910 11~ 13 14 15 13 14 15~ 17 18 19 18 19 20 21 22 23 24 I 18~ 18 1~ 20 21 22 20 '",~ 22 2~ 24 25 26 25 26 27~ 29 30 23 25 27 28 29 27 28 29 30 JULY AUGUST SEPTEMBER S M T W TH F S S M T W TH F S S M T W TH F S 1 2 3 1 2 3 4 4 ~ 8 7 8 9 10 1 2 3 4 5 8 7 5 ~ 71 81 9 10 11 11 12 13 14 15 16 17 8 9 101 111 12 13 14 12 13 14 15 16 17 18 18 ~ 201 211 22 23 24 15,, 16 17~18 19 20 21 19 20 211 221 23 24 25 25 26 27 28 29 30 31 22 ~, 241 251 26 27 28 28 27 28 29 30 29 30 31 OCTOBER NOVEMBER DECEMBER S M T W TH F S S M T W TH F S S M T W TH F S 1 2 I 2 4 5 6 1 2 3 4 3 4 5~ 7 8 9 7 8 9 10 12 13 5 8 7 8 9 10 11 10 11 12 13 i4 t5 18 14 15 16 18 19 20 12 13 14~ 18 17 18 17 18 19~ 21 22 23 21 22 23 24 27 19 2O 21 22 23 25 24 25 28 27 28 29 30 28 29 30 26 27 28 29 30 31 February 1, 1999