HomeMy WebLinkAbout02/08/1999 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
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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
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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