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HomeMy WebLinkAbout08/30/2001 BAKERSFIELD Mike Maggard, Chair Harold Hanson Mark Salvaggio Staff: Darnell Haynes BUDGET AND FINANCE COMMI'R'EE of the City Council - City of Bakersfield Thursday, August 30, 2001 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 AUGUST 2, 2001 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Review and Committee recommendation on policy regarding requests for financial assistance - Stinson B. Review and Committee recommendation regarding Bakersfield Senior Center request for financial assistance - Stinson 5. NEW BUSINESS A. Review and Committee recommendation regarding property located at 720 Lakeview Avenue -Kunz B. Review and Committee recommendation regarding the Downtown Business and Property Owners Association and banner responsibilities - Kunz C. Review and Committee recommendation regarding request for additional funding for Police overtime - Stinson 6. COMMITTEE COMMENTS 7. ADJOURNMENT S:\Darnell~.001BFCom m ittee\bf0 laug30agen.wpd DRAFT BAKERSFIELD ~{~ ~'~'"'"'- Mike Maggard, Chair Alan Tandy, City Manager Harold Hanson John W. Stinson, Assistant City Manager Mark Salvaggio AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, August 2, 2001, 4:00 p.m. City-Manager's Conference Room 1. ROLL CALL Call to Order at 4:06 p.m. Present: Councilmembers Mike Maggard, Chair; Harold Hanson; and-Mark Salvaggio 2. ADOPT JUNE 5, 2001 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED :BUSINESS A. Discussion and Committee recommendation regarding policy on cable broadcast of public meetings This item was referred to the Committee by Councilmember Couch who had requested staff to develop a policy regarding television broadcast of public meetings in the City Council Chambers. County Representatives were invited to attend the meeting. Assistant City Manager John Stinson gave an overview of the six points in the draft policy: 1. Requests to schedule a meeting should be submitted at least one week prior to broadcast date. 2. Parties requesting use of video or computer equipment must provide that material to the City at least three days prior to the meeting. Rick Davis, County of Kern, stated policies for cable broadcast must be in compliance with FCC Regulations. This three-day time period allows staff to review the content prior to broadcast to make sure the content is in compliance with FCC regulations and there are no surprises on live TV. 3. Because of limited broadcast slots available on KGOV for "special" meetings, City- sponsored meetings would have priority over those requested by other governmental agencies or organizations. John Stinson stated this is cOnsistent with our agreement with the County and KGOV. BUDGET AND FINANCE COMMITTEE Thursday, August 2, 2001 Page -2- Rick Davis explained ·that essentially when the allocation of time was set up, the time was balanced fairly well between the County and City. There are dedicated time blocks at which time the public expects to view certain meetings. Special meetings will be worked out if there is conflict. 4. Because of limited broadcast slots available on KGOV, there would be no guarantee of live broadcast. Re-broadcast of "special" meetings would be scheduled in order of request. 5. Because there are considerable costs associated with televised meetings, a cost recovery charge would be created and assessed to agencies or groups other than the City of Bakersfield. Costs include staff time for Telecommunications, Clerk, Management ~ Information Services, and Police Department, including overtime. ~ 6. Regular and special meetings of the City Council, Planning Commission, Board of Zoning Adjustment, and Redevelopment Agency would take priority over other "special" meetings requested to be broadcast in the Council Chambers. Committee member Salvaggio made a motion that the Committee approve the policy and staff be directed to forward a resolution to the City Council implementing the policy. The Committee unanimously approved the motion. 5. NEW BUSINESS A. Review and Committee recommendation regarding Bakersfield Senior Center request for financial assistance Lynn Edwards, Bakersfield Senior Center, handed out a mission statement and financial information. Ninety-five percent of.their participants meet "low-income" parameters, established by state and federal governments. He explained their problems started about a year ago. Bingo used to be a huge fund-raiser for the Center and the funds were depended upon for operational expenses. Since reservations were granted certain new gaming opportunities, their expanded Bingo operations and large prizes attract players from Bakersfield. There are two reservations within an hour and a half (Lemoore and Porterville) that send busses to Bakersfield every day to take patrons to their establiShments free of charge. This has impacted all the non-profits in Bakersfield who depended on Bingo to raise funds, as they cannot compete. The Center has a staff of 12. Two are paid and 10 are volunteers. Average daily attendance is 85 to 95 seniors. Lunch is served at the Center, .but brought in by an outside agency. Average daily attendance for lunch is 75 to 80. There are two centers providing services to seniors within City boundaries: the Community House at 21't and R Streets and the Bakersfield Senior Center. There are also senior centers located in the unincorporated areas. The Center's operating expenses are exceeding revenue and they need assistance to be ~.ble to stay open and keep providing services to seniors. They have been impacted by increased utility · rates. The Center is projecting a loss for the period from JulY 1, 2001 to December 31, 2001 of $17,142 and has long-term liabilities including salaries of $53,217, which they do not have funds to pay. The Center is requesting a contribution of $50,000 to help pay back debts. BUDGET AND FINANCE COMMITTEE Thursday, August 2, 2001 Page -3- There was discussion regarding the possibility of state and federal grants for senior services and assisting with grant writing; however, these types of grants are actually outside the expertise of the City. The Committee directed staff to check and see if there are CDBG funds that could be applied for a long-term plan. The Committee agreed senior programs are vital to our community and would like to assist with funding for the present, but for the long-term expressed further financial data is needed and recommended staff from the City's Finance Department assist the Senior Center to determine cash flow and debts with due dates to develop a realistic budget. Committee Chair Maggard stated the City should stand shoulder to shoulder with the Senior Center to objectively determine the deficit · and how 'much funding needs to be from grants and how much needs to come from the City's budget-to make sure services are delivered to the seniors. This was-agreeable with Mr. Edwards and members of the board present at the meeting. Committee member Hanson made a motion that the Committee recommend to the City Council a one-time oontribution of $5-0,000 to the Bakersfield Senior Center be made from Council Contingency to address the existing debt, and an ongoing plan for financial improvement with assistance from the City's Finance Department be developed. The Committee unanimously approved the motion and forwarding the recommendation to the City Council at the August 22"d meeting. Committee Chair Maggard expressed that at another time it would be useful for the Committee to discuss the credibility of loaning our assistance to all three organizations (non-profits with which the' City has a long relationship) to demonstrate what our long-term relationship is, the vested interest we have, and the capital assets we have contributed in order to find a way to make this more finite. Staff was asked to give this some thought to be able to assist the Committee with this issue. B. Staff report and Committee recommendation on the-Investment Policy of the City Councilmember Couch requested the City participate in the Investment Policy Certification Program offered by the Municipal Treasurer's Association of the United States and Canada (MTA US&C). City Treasurer Bill DesCary reported staff has rewritten the City's Investment Policy in the format of MTA US&C's model policy. The main portion of our Current policy is the same including what we invest in and our percentages to achieve diversification. Information has been added to the rewritten policy in order to qualify for certification. These additions further document current investment procedures and will not cause changes in treasury operations. Staff recommended approval of the policy changes, so the City can pursue certification. Committee member Salvaggio made a motion to approve the policy and forward the resolution to the City Council for adoption, which will enable staff to apply for certification. The Committee unanimously approved. D AFT AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, August 2, 2001 Page -4- C. Review and Committee recommendation regarding Pre-Qualification of Bidders Ordinance City Attorney Bart Thiltgen stated in 1999 the State Legislature passed a bill to establish a uniform system to be able to evaluate the ability, competency and integrity of bidders on public works projects. The law also provided for the Department of Industrial Relations to put together guidelines for all public entities to utilize and have now printed a handbook. City staff has reviewed the handbook and using it as a basis, are preparing guidelines in the Public Works Department. Mr. Thiltgen gave an overview of the draft ordinance. Basically, the ordinance allows for .pre-qualification on any public works contract over.S250,000 and also if it is a unique contract that' the City Manager or his designee determines will require special expertise, equipment or materials to complete the project. All prospective bidders shall receive written notification of the acceptance of the pre-qualification submittal or the disqualification of such submittal. Should a prospective bidder be disqualified in the pre-qualification process, the ordinance provides for an appeal process. Public Works is in the process of developing the pre-qualification questionnaires and standard uniform process. There was discussion regarding the two major defaults the City has had .by major contractors in the last six years. In the second instance, the bonding company also went bankrupt. There were also a couple of minor defaults on smaller projects. The proposed ordinance allows for a procedure to screen contractors so the City only receives bids from those who are qualified. Staff recommend moving-forward with the ordinance. Mr. Marvin Dean, Kern Minority Contractors, expressed concerns and wanted to make sure this ordinance does not negatively impact small and minority contractors. He requested more information on the questionnaire and the .criteria to be used to determine qualified contractors. Mr. Leon Francies, Francies Electric, expressed concerns regarding the qualifications. Public Works staff will meet will Mr. Dean and Mr. Francies. Finance Director Gregory Klimko explained pre-qualification is not a rating system. It is pass or fail. A contractor is either qualified to do a job or is not. The qualified bidders will be able to submit a bid. The Committee unanimously approved forwarding the ordinance to the City Council for first reading. The Committee directed staff to develop the questionnaires for pre-qualification of bidders before the second reading of the ordinance. Questionnaires will be job specific and, therefore, not part of the ordinance. DRAFT AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, August 2, 2001 Page -5- D. Review and Committee recommendation regarding minimum rating for sureties issuing performance and labor and materials .bonds for City construction projects City Attorney Bart Thiltgen stated this issue was referred to the Committee because of the recent incident-where the contractor defaulted on a City project and the bonding company went into bankruptcy. The City was bound by State .law to accept the surety that was doing business within the State of California. It was noted, there is an option where the City could have entertained an audit by our own staff to determine the financial worth of the surety. However, there is a case law that if a city does entertain the option to do an audit, then that city is responsible for .payment if .the surety fails. In that failure, the City would have to pay everyone, ratherthan the surety. So, the City is taking the position that if it is a registered surety within the State, we are not going to take on tl'ie audit and be in .the position to be charged for a "negligent" audit. The City-Attorney's staff has been looking for ways to .protect the City further in the future. The League of California Cities and local legislators have been contacted in an effort to get the law changed with regard to projects being paid for with public money so there would be.a minimum of a B rating for such sureties. So far, this has not been introduced into the legislature. The City Attorney opined because the City of Bakersfield is a Charter City, it could have a legal impact from the standpoint that as mode of contracting is by case law a municipal affair, the City Council. could declare that for all projects the City enters into, there be a bond with a rating of at least B or-higher. The City could be challenged on the basis thateven though this is a Charter City, this is a statewide concern. Several other localities have required a higher bond rating and have not ~been challenged as yet. It was noted that some small contractors may not be financially able to obtain a bonding company with a B rating that would grant them a bond, and this could preclude them from bidding. Another consideration when going for a higher rating, the bonding companies may charge a little more for the cost of the bond, which could reflect in higher bids to the City. Mr. Stuart Gentry spoke about his efforts to get legislation introduced and his work with the League of California Cities. As the City can be hurt 'by being forced to accept weak bonding companies, staff recommended the City adopt an ordinance that provides if public funds are expended on a project, the bonding company must be rated B or better by Best Rating Service. This would assure the bonding company would have the financial strength to pay in the event of a default. The Committee unanimously approved staff's recommendation and forwarding an ordinance to the City Council for adoption. The Committee also directed the City Attorney to move forward with drafting a letter to support legislation to enhance the bonding company rating for projects being paid for with public funds. 6. COMMI'YrEE COMMENTS 7. ADJOURNMENT The meeting adjourned at 6:32 p.m. D AFT AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Thursday, August 2, 2001 Page -6- Staff present: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City Manager John W. Stinson; Finance Director Gregory Klimko; Assistant to the City Manager Darnell Haynes; Telecommunications Coordinator Mel Perry; Purchasing Officer Darlene Wisham; Deputy City Attorney Alan 'Daniel; Assistant Public Works Director Jack LaRochelle; City Treasurer Bill Descary; Treasury Supervisor Cheryl Perkins; Assistant Finance Director Nelson Smith; Risk Manager Pat Flaherty; Others present: Rick Davis, County of Kern General Services; Paul Cato, Lynn Edwards, and Helen Lusinger, Bakersfield Senior Center; Marvin Dean and Leon Francies, Kern Minority Contractors; Stuart Gentry; Dibuduo and Defendis Insurance; and Chuck Waide, S.E.I.U. cc:' Honorable Mayor and City Council DWH:jp S'./Damell/2001 B FCommittee/'of01jun05summary.wpd .BAKERSFIELD OFFICE OF THE CITY MANAGER .MEMORANDUM August 22, 2001 TO: Honorable-Mayor and City Council FROM: Alan Tandy, City Manager /~ ~ SUBJECT: Requests for Financial Assilfla'nce As you are aware, requests for financial assistance from non-profit groups have been on a very rapid rise lately. Some examples include Kern County Museum, Bakersfield Museum of Art, Bakersfield Music Theatre, First Night, DBA, Bakersfield Symphony, and Bakersfield College, among others. Not only is the number increasing, but also the amounts requested. All of these groups do good work- as do literally hundreds of other non-profits in town - all of whom need more money. For many years, the Council had a policy of not funding the ongoing operation and maintenance costs of non-profitgroups. There have been, however, certain exceptions, including the Symphony, and periodic assistance to two groups that had a long-term relationship with the City by renting City facilities - the-Museum of Art and Bakersfield Senior Center. Start up or one-time activities are also done such as First Night and Vision 2020. Those, however, are not ongoing operation and maintenance costs. We also have service contracts with SPCA, CVB and KEDC - those are really purchase of services and fall into a different category. Until the Council clarifies its policy, We will continue to be besieged by additional requests - all good causes, all in need of money, but which cumulatively we cannot afford. A few weeks ago, staff recommended a policy that would disallow assistance to non-profits for ongoing operation and maintenance purposes with the exception of those with whom we have had an ongoing relationship - the Bakersfield Senior Center, Bakersfield Museum of Art and the Symphony.. The Council did not act on that recommendation due, in part, to the press of other business. Since that time, we have received four other requestS. Requests for Financial Assistance Page 2 Staff now wants to add to our previOus recommendation by adding sources and amounts as follows: Bakersfield Senior Center - $50,000 per year from the Housing and Community Development Grant (beginning with the FY 2002-03 budget) Bakersfield Museum of Art - $25,000 per year from the General Fund (beginning with the FY 2002-03 budget) Bakersfield.Symphony - rent equivalent at Convention Center (currently $46,000 per year) in addition, staff would be instructed that-when requests are received, we would write the requesting agency back indicating their request is outside of adopted Council policy. Pending requests for the DBA, Symphony and First Night would be included in the decision. If this .does not meet Council's expectations or desires, staff requests a full Council policy discussion of alternatives. This is a serious matter which needs policy control that is consistently applied. ., ADMINISTRATIVE REPORT I MEETING DATE: August 22, 2001 AGENDA SECTION: Consent Calendar ITEM: 8. aa. TO: Honorable Mayor and City Council APPROVED FROM: John W. Stinson, Assistant City Manager DEPARTMENT HEAD DATE: June 8, 2001 CITY A'I'rORNEY CITY MANAGER ~ SUBJECT: Transfer of $50,000 from Council Contingency to the Non-Departmental Budget in the General Fund for a financial contribution to the Bakersfield Senior Center. (Ward 1) RECOMMENDATION: The Budget and Finance Committee recommends approval of the transfer and contribution to the Senior Center, and development of an ongoing plan for financial improvement with assistance from the City's Finance Department. BACKGROUND: Historically, the City Council 'has provided a variety of one-time and ongoing financial support for three non-profits, the Bakersfield Senior Center, Bakersfield Symphony Orchestra and Bakersfield Art Museum. In each of these cases, there has been a multi-year relationship with the entities involved. Two have been gifted the property they formerly leased. The Bakersfield Symphony receives funds annually to offset the.rental cost of the Convention Center. At the Council meeting of June 13, 2001, the City Council reaffirmed the City's historic policy regarding financial contributions to be kept in plaoe with the exception of these three entities, whose long-term relationship and involved financial history with the City make them unique. On June 27, 2001, the 'City Manager received a.letter from the Executive Director of the Bakersfield Senior Center requesting an opportunity to appear before the Council or a Council Committee to appeal for financial assistance. The City Manager met with representatives from the Bakersfield Senior Center, at which time they stated their operation was having financial difficulty. They requested financial assistance of $50,000 to help pay past due debts they have incurred. The City Manager indicated he would need detailed financial information on the Bakersfield SeniOr Center's financial condition to provide to the Budget and Finance Committee in order to proceed with another request for financial assistance, since the City had provided $25,000_ to the Senior Center about six or seven months ago. The City Manager requested the financial information in advance of the next Budget and Finance Committee meeting. At the August 2, 2001 Budget and Finance Committee meeting, Mr. Lynn Edwards of the Bakersfield Senior Center provided an overview of the financial condition of the Senior Center. He explained that ninety-five percent of their participants meet "low-income" parameters, as established by State and federal governments. He explained their problems started about a year ago. Bingo used to be a'huge fund-raiser for the Center JWS/al August 15, 2001, 4:58pm S:~Admin Rpts~001\Contingency Transfer BSC 082201 .wpd ADMINISTRATIVE REPORT Page 2 and the funds were depended upon for operational expenses. Since gaming operations and casinos on Reservations were granted certain new gaming opportunities, they-have expanded their Bingo operations and now give out large prizes, which attract players from Bakersfield. There are two Reservations within an hour and a half (Lemoore and Porterville) that send buses to Bakersfield every day to take patrons to their establishments free of charge. This has impacted all the non-Profits in Bakersfield who depended on Bingo to raise funds, as they cannot compete. The Senior Center has a staff of 12. Two are paid and 10 are volunteers. Average daily attendance is 85 to 95 seniors. Lunch is served at the Center, but brought in by an outside agency. Average daily attendance for lunch is 75 to 80. There are two centers providing services to seniors within City boundaries: the Community House at 21s' and R Streets and the Bakersfield Senior Center. There are also senior centers located in the unincorporated areas. The Senior Center's operating ~expenses are exceeding revenue and they need assistance to be able to stay Open and keep providing services to seniors. They have also been impacted by-increased utility rates. The Senior Center is projecting a loss for the period from July 1 to December 31,2001 of $17,142, and has long- term liabilities including salaries of $53,217, which they do nOt have funds to pay. The Center is requesting a contribution of $50,000 to help pay existing debt. There was discussion regarding the possibility of State and federal grants for senior services and assisting with grant writing, but these types of grants are actually outside the expertise of City staff. The Committee directed staff to check and see if there are CDBG funds that could be applied for as a tong-term plan to assist the Senior Center. The Committee agreed senior programs are vital to our community and would like the City to help develop long-term funding options in support of these programs. They expressed that further financial data is needed and recommended staff from the City's -Finance Department assist the Senior Center to review cash flow and debts with .due dates to verify the expenditures and assist them in developing a realistic budget. Committee Chair Maggard stated the City should work with the Senior Center to objectively,determine the deficit and how much funding needs to be from grants and how much needs to come from the .City budget to make sure services are delivered to the seniors. This was agreeable with Mr. Edwards and members of the board present at the meeting. Subsequent to the Budget and Finance Committee meeting, the Finance Director reviewed the financial information provided by the Senior Center. He has prepared a report on the review of the Senior Center financial information which has been provided to the Council under separate cover. The Committee recommends a one-time contribution of $50,000 to the Bakersfield Senior Center be made from Council Contingency to address existing debt and development of an ongoing plan for financial improvement, with assistance from the City's Finance Department. Similar to other contributions recently made by the Council, staff will prepare an agreement with the Senior Center indicating the terms and conditions of the contribution and that payments will be made based on the review and approval by the City's FinanCe Director of documented and justifiable expenditures, and liabilities directly related to the operation of-the Senior Center. JWS/al August 15, 2001, 4:58pm S:~dmin Rpts~001\Contingency Transfer BSC 082201.wpd I MEETING DATE: August 8, 2001 AGENDA SECTION: Consent Calendar ITEM: 8. t. TO: Honorable Mayor and City Council APPROVED FROM: Donna L. Kunz, Economic Development Director DEPARTMENT HEAD .~Z-,~---.~ DATE: July 25, 2001 CITY ATTORNEY ~ CITY 'MANAGER ~ SUBJECT: Sale of City Surplus Property located at 720 Lakeview Avenue. (Ward 1) RECOMMENDATION: Staff recommends refer to Budget and Finance Committee. ..BACKGROUND: The City has received two offers to purchase the City surplus property located at 720 Lakeview Avenue. One offer is from Marry Reyna, owner of Nutri Kids, 800 Lakeview Avenue and the other is from Evelyn Nelson, Director of Groomed for Greatness, Inc. In April 1984, the City purchased property located at 720 Lakeview Avenue with CDBG funds as part of its effort to land bank properties for future CDBG eligible projects. The acquisition price for this 5,620 sq.. ft. parcel (75' x 55') was $26,000. The site is developed with a 1,400 sq. ft. building, built in the early 1950's. During the same period, five other similar properties were acquired and the structures on them demolished. With respect to this property however, interest was expressed by a prospective business to open a record shop at that location. Rather than demolishing the structure, a lease was executed and the building was occupied commencing in 1986. The City.received $300 per month rent for the building until 1994 when the business relocated. During the lease period, the City's Community Development Department received over $25,000 in lease payments. In December 1994, staff initiated the disposition of the property located at 720 Lakeview Bids were received over the years, interest from buyers and tenants have been received by staff on the property, however, no final agreement made .use of the site. At the July 19, 1995 City Council meeting 720 Lakeview Avenue was declared surplus. The last appraisal was completed by Michael Burger June 20, 2000 and estimated the value of the 720 Lakeview Avenue property at $14,000 "as is." DIk:S:~dmins\720 Lakeview ref to B&F.wpd July 26, 2001,8:44am ADMINISTRATIVE REPORT Page 2 When the original report was prepared July 5, 2001, the Groomed for Greatness, Inc. proposal had yet to submit evidence of financial capacity to purchase and develop their project. However, that information has been presented and their overall.proposal has been revised. Below is a comparison of both offers: Marty Reyna Groomed for Greatness, Inc. Evelyn Nelson Owner of Nutri kids located at 800 Lakeview Non-profit corporation currently leasing sPace at Avenue 800 Lakeview, Suite 2 since March 2001. Purchase price: Appraisal Value $14,000 Purchase price: $5,000 Existing building will be rehabilitated for a tenant Proposal will demolish the existing 1,400 square (Groomed for Greatness). An executed lease foot building and replace it with a new 1,400 agreement was submitted with his proposal with square foot building (construction cost $70,000). an ending date of April 2002. Estimated Rehabilitation Cost: $29,588 Evidence of-project funding for Evidence of project funding for acquisition acquisition/rehabilitation funds has been submitted. submitted. Construction will be completed through donations. Building will be used for job readiness and life skills workshops, computer resource area for youth reading/math and a clothing boutique. Property returns to tax rolls. Property remains off tax roll. Mr. Reyna has purchased the three properties It has requested that the City (Planning) allow the immediately north of 800 Lakeview and has begun reconstruction of the 1,400 square foot building to rehabilitate two existing.residential structures, using the existing parking standards. DIk:S:~Admins\720 Lakeview ref to B&F.wpd July 26, 2001, 8:44am .... ADMINI'STRATIVE REPORT -;':-.... ~ ( ~: ..'...~ MEETING DATE: 'August 22, 2001 AGENDA SECTION: Consent Calendar ITEM: 8. z. TO: Honorable Mayor and City Council APPROVED FROM: Donna L. Kunz, Economic Development Director DEPARTMENT HEAD DATE: August 14, 2001 CITY ATTORNEY CITY MANAGER SUBJECT: Downtown Business and Property Owners AsSociation (DBPOA) request for assumption of Banner Change-out Responsibilities and Debt. (.WARD 2) RECOMMENDATION: Staff recommends refer to Budget and Finance Committee. BACKGROUND: On December 17, 1997, the DBPOA and the City Council entered into Agreement No. 97-345 regarding Banners on Chester Avenue. This agreement granted the DBPOA a nonexclusive license to hang a set of seasonal banners. These banners are a component of the original Chester Avenue Streetscape project and included four sets of seasonal banners totaling 384 banners, to be alternated four times a year. The agreement terminated one year after the streetscape completion May 18, 1998, unless both parties agreed to an extension. Although the-one year term expired on May 18, 1999, no extension was requested and the DBPOA continued to hang, take down, store, and .maintain the banners at no cost to the City. On August 8, 2001, staff received a letter from the DBPOA indicating that they would no longer be able to assume the duties related to maintaining the banner schedule. They had contracted the work out to a vendor and are currently in arrears in the amount of $1,760. The DBPOA also requested that the City assume this debt or provide them financial assistance to honor the obligation. DIk:S:~,dmins\dba banner.wpd August 14, 2001, 11:26am AUG 0 8 200 DBA Downtown & P~'Fert~' Owncn A~ciation CHAIRMAN ~ich~el Russo Isr VICE CHAIRMAN Augu~ 6, 2001 Robert ~o~is Do~a L. K~z, Econo~c Development 2"0 VICE CHAIRMAN C~y of Bakersfield 5hirlyn bevenp~ 515 T~ ~venue PRESIDENT Bakersfield, CA 93301 C~thy B~ler Dear Ms. K~z, SECRETARY Frederick Prince ~ ] 997 ~e Do~to~ BusNess Association ~BA) entered ~to ~ agr~ment TREASURER ~ ~e City of Bakers.field regar~g ~e b~ers along Chewer Avenue. Under John Show ~e agreem~t, ~e city purchased ~e b~ers ~d har~are, ~d ~e DBA pays for ~e qua~er]y chang or,ese b~ers. BOARD.OF DIRECTORS ~ese b~ers add greatly to ~e Chemer ~remscape ~d ~e entire co~w - ,'w a~o~,ski has benefited from ~e ~eps ~e 'Cky has token to reprove ~e ovemU beau~ of J Phmp B~,n~ do~mto~. W~ ~e recent ~m~les m~y non-profit, ours ~clud~ are Wes Br:dford hamg, k has become an economc necessky for us to ~scont~ue our ~g Jeffrey Chavez ~e quanerly ch~gmg of~ese b~ers. We are s~g to ~d said a~eem~t eri:. com.s ~d reque~mg ~e C~ rake over all a~em of~e CheWer b~er pro~m. Lorry Fields Bob Horper Fu~emore, ~e DBA owes $1760 ~ back fees to Siena N~llmi~ for~e ~ork LoRose ~,~r ~o~o~ March 2001 ~d J~e 2001 b~er ch~ges. We am also mqu~g as to ~e *~w O'Neil c~y's abil~ to e~er assme ~is debt or prohde J~r~ ~a~ll honomg ~is obligation. Your help ~ ~is re=er ~11 prohde ~ate ~on- bo~d Reed tern weliefto ~e DBA. Ken Co~ Reider ~e DBA l~ks fo~ard to berg a long-tern pamer ~ ~e con~u~ Rosco Rolnick remlimfion of domom as well. We are mcoumged by ~e C~-~onsor~ Hermen Ruddell ~ee Slide Charge as well as ~e id~s generated by Vision 22020. ~ we move fo~ard, we would l~e to e~lore potential options for ~e Cky ~d DBA to pamer tog~er m ~e development ~d proration of domtom. Specific ideas which UAmON we would l~e you to consider ~clude a Membership Mmch ~Wor assi~ce 5u~ 8enh~ develop~g o~er ~g mech~isms for ~e domtom area. Your ~ou~ Council Women ' Second Ward along ~ese l~es are greatly appreciated. ~ you for your commu~ belief ~ domtom Bakersfield ~d your suppo~ of~e DBA. Smcerely, Michael Russo, DBA Chaim~ of~e Board 1700 "K' 8(re~t N120 -BakeftfT~ld, CA 13301 Phon~ (Ill) 3264112 Fax~ (ta 1) 32S-1310 AGREEMENT NO. 9 ~7 - ~.~ 5 A E MENT NG N N E T AV THIS AGREEMENT is made and entered into on_ ~C ! ? '~7 , by and between the CITY OF BAKERSFIELD, a municipal corporation (hereinafter "CITY"), and THE DOWNTOVVN BUSINESS AND PROPERTY OWNERS ASSOCIATION, a California, non-profit, mutual, benefrt corporation made up of owners of real property and businesses in the downtown Bakersfield area (hereinafter "DBPOA"). RECITALS WHEREAS, CITY is the owner of a certain real property or owns easements on certain real property located on Chester Avenue between Truxtun Avenue and 24th Street, Bakersfield, California, (herein referred to as "the Property"), more particularly described in Exhibit WA" attached hereto and made a part hereof; and WHEREAS, CITY and DBPOA, in order to enhance the aesthetics and complement the Chester Avenue Streetscape Project, and advertise upcoming events, wish to hang · .. banners from the street light poles located on the east and west sidewalk areas of Chester Avenue between Truxtun Avenue and 24th Street; and WHEREAS, CITY intends to purchase 384 banners (96 for each of the four seasons of the year); to be hung from those street light poles; and WHEREAS, DBPOA intends to purchase additional banners to be hung from those poles to advertise upcoming events in the City; and WHEREAS, DBPOA has agreed to hang, take down, maintain and store all banners, whether purchased by CITY or by DBPOA. NOW THEREFORE, in consideration of the foregoing, the mutual promises, covenants, conditions and agreements hereinafter Jet forth, and the other good and' valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: 1. Grant of License,. CITY hereby grants to DBPOA, its employees, representatives and contractors a non-exclusive license (hereinafter the "License") to enter upon the Property from time to time to conduct the activities described in paragraph 3 below. This License shall commence on January 1, 1998, or the date the Notice of Completion on the Chester Avenue Streetscape Project is filed, whichever is later and shall: terminate one year from the date of commencement, unless the parties agree in writing to extend the term of the License. This License shall be revocable and/or terminable by CITY -- Page 1 of 6 Pages ' ~. ORIGINAL at any time upon at least fifteen (15) days' advance written notice, or upon lesser notice if lesser notice is reasonable. Prior to the expiration or sooner termination of the License, DBPOA shall, at its sole cost and expense ensure that the appropriate seasonal banners have been hung from the street light poles. 2. CITY's ObligatiQn~. CITY shall purchase 384 banners (96 to be alternated four times each year). CITY shall hang the first banners from the street light poles located on the east and west sidewalk areas of Chester Avenue between Truxtun Avenue and 24th Street, upon completion of the installation of all of streetlight poles installed in conjunction with the Chester Avenue Streetscape Project. Upon completion of the hanging of the first set of banners, ownership of those banners, as well as the remaining banners shall be transferred to DBPOA. 3. DBPOA's Obli_aationA. DBPOA shall take responsibility for removal of the banners initially hung by CITY and shall hang the remaining banners according to an annual schedule submitted by the DBPOA. This annual schedule shall specify the changing of the banners for a twelve month period. The schedule shall be submitted no later'than January 1 of each year. Any additional banners purchased by the DBPOA shall be' included in this annual schedule or submitted in a separate request using the specifications outlined in Exhibit ,B,,, attached hereto and incorporated herein by reference. The banner request form must be submitted to CITY at least thirty (30)days prior to the date on which the DBPOA wants to hang the banners. DBPOA shall be permitted to remove seasonal banners for a period of 2 weeks and replace them with DBPOA banners to advertise upcoming.events in the City. DBPOA must remove the special event banner and replace it with the appropriate seasonal banner within 2 days after the concurrence of the special event the banner advertises. Two banners shall be hung from each street light pole. ' In the event that a banner needs to be replaced because of theft, vandalism, weathering, or some other act, the DBPOA shall pay for the replacement banner. 4. ~. DBPOA, at no cost or expense to CITY, shall be responsible for obtaining any and all governmental permits and approvals which may be necessary for it to conduct any work or activities under this Agreement, including, but not limited to having any banner not supplied to DBPOA by CITY reviewed for compliance with the City's sign ordinance. ~ 5. Liens and clairn~. DBPOA will not permit any mechanics', materialmen's or other similar liens or claims to stand against the Property for labor or material furnished. in connection with any work performed by DBPOA under this Agreement. Upon. reasonable and timely notice of any such lien or claim delivered to DBPOA by ClTY, DBPOA may bond and contest the validity and the amount of such lien, but DBPOA wiit OBPOA BANNER AGREEMENT "'~G"EEME~.,~NE~S DBA-S,p,o,,~r 9. ,997 -- Page 2 of 6 Pages -- ORIGINAL immediately pay any judgment rendered, will pay all proper costs and charges and will have the lien or. claim released at its sole expense. 6. C__~.~¢,.~.t~Q. DBPOA agrees to coordinate its activities with CITY and other downtown businesses to minimize any impairment of access by customers or business invitees of CITY or such other businesses to the Property and any inconvenience to or disruption of CITY's and other businesses on the Property. 7. _.Waiver of Default, The failure of any party to enforce against another a provision of this Agreement shall not constitute a waiver of that party's dght to enforce such a provision at a later time, and shall not serve to vary the terms of this Agreement. 8. Indemnity. DBPOA shall indemnify and hold harmless CITY, its offiCers, agents and employees against any and all liability, claims, actions, causes' Of actiOn or demands whatsoever against them, or any of them, before administrative or judicial tribunals of any .kind whatsoever, arising out of, connected with, or caused by DBPOA, DBPOA's employees, agents or independent contractors or companies in the performance of, or in any way arising from, the terms and provisions of this Agreement whether or not caused in part by a party indemnified hereunder, except as limited by California Civil Code section 2782. 9. Insurance. 9.1 During the term of this Agreement, DBPOA, before entering the Property, and at its own expense, shall procure and maintain during the Performance of its obligations under this Agreement policies of liability insurance, issued by insurance companies duly qualified or licensed to issued policies of insurance in the State of California reasonably acceptable to CITY, which are primary as to any other existing, valid and collectible insurance insuring CITY against loss or liability caused by or in connection with DBPOA's (or its agents', employees', invitees', guests', contractors' or subcontractors') activities under this License, in amountS not less than: ................. ...~- .9.1.1. Commercial General Liability Insurance Occurrence Form, or the equivalent, including Blanket Contractual Liability, with a combined single limit of at least ONE MILLION DOLLARS ($1,000,000) each occurrence, TWO MILLION DOLLARS ($2,000,000) aggregate, for Bodily Injury and Property Damage, including Personal Injury. 9.1.2. Workers' Compensation Insurance as required by law, and Employers' Liability Insurance with a minimum limit of at least ONE MILLION DOLLARS ($1,000,000) each occurrence. 9.2 The policies of liability insurance shall name CiTY as an additional insured and shall not exclude or restrict coverage based upon alleged or actual negligence of an additional insured. Subrogation against CITY shall be waived as respects Workers' OSPOA BANNER AGREEMENT P:~'GREEMEN'SA'NE:~S DBA-Sep,em0er9. ,997 ' ~1~ -- Page 3 of 6 Pages -- ORIGINAL , Compensation Insurance. The insurance required hereunder in no way limits or restricts the indemnification under Paragraph 8 above, nor is the insurance to be carried limited 'by anY limitation placed on the indemnity as a matter of law. Any deductible amount is DBPOA's responsibility. 9.3 Insurance is to be placed with inSurers with a Bests' rating of no less than A:VJI. Any deductibles, self, insured retentions or insurance in lesser amounts, or laok of certain types of insurance otherwise required by this Agreement, or insurance rated betow Bests' A:VII, must be declared prior to execution of this Agreement and approved by CITY in writing. 9.4 All policies shall contain an endorsement providing the CITY with thirty (30) days written notice of cancellation or material change in policy language or terms. All policies shall provide there shall be continuing liability-thereon, notwithstanding any recovery on any policy. 9.5 The insurance required hereunder shall be maintained throughout the term of this Agreement. 9.6 The DBPOA Shall furnish CITY's Economic and Community Development Department with a certificate of insurance and required endorsements evidencing the insurance required. CITY may terminate this Agreement if certificates of insurance and endorsements required have not been provided. 9.7 Unless otherwise approved by CITY, if any part of the work under this Agreement is subcontracted, the "basic insurance requirements" set forth above shall be provided by, or on behalf of, all subcontractors even if the cITY has approved lesser insurance requirements for DBPOA. 10. N__~. All notices relative to this Agreement shall be given in writing and shall be personally served or sent by certified or registered mail and be effective upon actual personal service or depositing in the United States mail. The parties shall be addressed as follows, or at any other address designated by notice: To CITY: City Manager (or designeei CITY OF BAKERSFIELD 1501 Truxtun Avenue Bakersfield, California 93301 T© DBPOA: Cathy A. Butler, Executive Vice President DOWNTOWN BUSINESS AND PROPERTY OWNERS ASSOCIATION .... 1330 17th Street Bakersfield, California 93301 -- Page 4 of 6 Pages - ORIGINAL · 10.1 The person and the place to which notices are to be mailed may be changed by either party by providing .written notice of same to the other. 11. Assignment, Successors and Assi_on~. This Agreement shall not be assigned by any party, or any party substituted, without prior written consent of all the parties. 12. Entire Agreement. This Agreement represents the full, complete and entire agreement between the parties with respect to the subject matter hereof, and the rights and remedies of the parties shall be solely and exclusively those herein contained, and in lieu of any remedies otherwise available at law or in equity. 13. C__~,/_0_t.~. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and thesame Agreement. 14. Merger and Modification. All prior agreements between the parties are incorporated in this Agreement which constitutes the entire agreement. Its terms are intended by the parties as a final expression 0ftheir agreement with respect to such terms as are included herein and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. The parties further intend this Agreement constitutes the complete and exclusive statement of its terms and no extrinsic evidence whatsoever may be introduced in any-judicial or arbitration proceeding involving this Agreement. This Agreement may be modified only in a writing approved by the Cit7 Council and signed by all the parties. 15. ComDli~nCe with Ali L~W,~. DBPOA shall, at DBPOA's sole cost, comply with all of the requirements of Municipal, State, and Federal authorities .now in force, or which may hereafter be in force, pertaining to this Agreement, and shall faithfully observe in all activitie~s relating to or growing out of this Agreement all Municipal ordinances and State and Federal statutes, rules or regulations now in force or which may hereafter be in force. 16. Eziz[b.j~. In the event of a conflict between the terms, conditions or specifications set forth in this Agreement and those in bxhibits attached hereto, the terms, conditions, or specifications set forth in this Agreement shall prevail. All exhibits to which reference is made in this Agreement are deemed incorporated in this Agreement, whether or not actually attached. DSPOA E~ANNER AGREEMENT P.~GREEMEN~Ii~ANNER$.OSA_$eCIem~et 9. 1997 - Page 5 of 6 Pages ' 17. ~. Ail representations, warranties and indemnities contained in this Agreement. including but not limited to the indemnity provisions in Paragraph 8. shall survive the expiration or sooner termination or cancellation of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. "DBPOA" CITY OF BAKERSFIELD DOWNTOWN BUSINESS AND //?~/l PROPERTY OWNERS ASSOCIATION BOB PRICE, Mayor HA~0LD .Ai~iSoN President APPROVED AS TO CONTENT: ECONOMIC AND COMMUNI'i'~ DEVELOPMIE~I' DE PA~RTMI~I~I' Econo ,i~elopment Director APPROVED AS TO FORM: JUDY K. SKOUSEN City Attorney COU ERSIGN D' ~ ~ ~o.¥ ~. ~,i~o ~inaf nce Director · '.,, EXHIBIT A Ex.hibit "A" contains a light pole detail and a description of the locations of all light poles on Chester Avenue, between Truxmn Avenue and 24m Street. Each street lig_~t pole will have two sets of banner arms attached to either side of the light pole from which banners will be hung. According to the Chester Avenue Streetscape Plan, three (3) streetlight poles will be installed on each block face or a total of six (6) streetlight poles per block. There will be a total of forty-eight (48) light poles. Location of the street poles are described below: Truxtun Avenue to 17'h Street, tl~ee (3) light poles on the west side and three (3) light poles on the east side; 17~h Street to 18~ Street, three (3) light poles on the west side, and three (3) light poles on the east side; 18~h Street to 19~ Street, three (3)·light poles on the · west side, and three (3) light poles on the east side; 19~h Street to 20~h Street, three (3) light poles on the west side, and three (3) light poles on the east side; 20~h Street to 21*~ Street, three (3) light poles on the west side, and three (3) light poles on the east side; 21" Street to 27~ Street, three (3) light poles on the west side, and three (3) light poles on the east side; 22~a Street to 23~d Street, three (3) light poles on the west side, and three (3) light .poles on the east side; 23~d Street to 24~' Street, three (3) light poles on the west side, and three (3) light poles on the east side. ~E F~)T[I~ O~TAILQ [l~.II~ ~ I# %.. LIGHT POLE DETAIL EXHIBIT B BANNER REQUEST SPECIFICATIONS Please direct your letter of request to: John F. Wager, Jr. Economic Development Director City of Bakersfield 515 Truxtun Avenue Bakersfield, CA 93301 Information Needed: General information Name of sponsor for the event Contact name of sponsor and phone number Name of contractor of who is installing banners Contact name and phone number Dates Date(s) of events Banner placement date(s) Banner removal date(s) Logistics Location of proposed placement Copy of map if more than one location .Design (Be specific) Number of banners Quality of materials Construction Drawing or picture of banner including wording on banner and copy of any logo used in banner Any special features, to combat the wind Please allow at least 30 days for processing. Applications submitted less than 30 days prior could jeopardize a timely decision. All contact regarding your request needs to be directed to: Donna Barnes City of Bakersfield Economic and Community Development Department 515 Truxtun Avenue Bakersfield, CA 93301 Phone 326-3765 FAX 328-1548 DBPOA BANNER AGREEMENT P:~AGREEMEN\BANNERS.DBA-September 9, 1997 - Page B-1 -