HomeMy WebLinkAbout08/02/2001 BAKERSFIELD
Mike-Maggard,.Chair
Harold Hanson
Mark Salvaggio
Staff: Darnell Haynes
BUDGET AND FINANCE COMMITTEE
of the City Council - City of Bakersfield
Thursday, August 2, 2001
4:00 p.m.
City Manager's Conference Room, Suite 201
Second Floor - City Hall, 1501 Truxtun Avenue, Bakersfield, CA
AGEN~DA
1. ROLL CALL
2. ADOPT JUNE 5, 2001 AGENDA SUMMARY REPORT
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
A. Discussion and Committee recommendation regarding ~policy.on cable broadcast of public
meetings - Stinson
5. NEW BUSINESS
A. Review and Committee recommendation regarding Bakersfield Senior Center request for
financial assistance - Tandy
B. Staff report and 'Committee recommendation on the Investment Policy of the City - Klimko
C. Review and Committee recommendation regarding Pre-Qualification of Bidders Ordinance -
Thiltgen
D. Review and Committee recommendation regarding minimum rating for sureties issuing
performance and labor and materials bonds for City construction projects - Thiltgen
6. COMMITTEE COMMENTS
7. 'ADJOURNMENT
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DRAFT
BAKERSFIELD
~~-~~ Mike-Maggard, Chair
Alan Tandy, ~itY ~anager Harold Hanson
Staff: Darnell Haynes- Mark Salvaggio
AGENDA SUMMARY REPORT
SPECIAL MEETING
BUDGET AND FINANCE COMMITTEE
Tuesday, June 5, 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 MAY 3, 2001 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
A, Discussion and Committee recommendation regarding a.request for funding from the
Bakersfield .Museum of Art
At the ~March 8~ Budget and Finance Committee meeting, the Committee reviewed a request from
the Bakersfield Museum of Art for $28,500 to-help fund a Russell and Remington, "Storytellers of
the American West" exhibition they plan to bring .to the Museum in September 2001 (approximate
total cost $53,500). Because there was limited history-on the economic benefits to the community
from art exhibits, the Committee suggested the museum develop an economic model showing the
multiplier effects of people coming from out of .town to view art exhibits. The Museum
· representatives agreed to come back to the Committee with information to demonstrate the
economic benefits of art exhibits on the local economy.
Charles Meyer secured the services of a research group from Chicago and gave a report to the
Committee. The research.group recommended that more than.one event happen at the same time
to be able to draw people from out of town, and also to make the numbers work for a successful
exhibit would require a high degree of marketing. The Kern County Museum has an exhibit starting
September 15 to January 2002 q'-Rex, King of the Dinosaurs" and the Bakersfield Museum of Art
plans .to exhibit "Russell and Remington: Storytellers of the West" starting September 9 to
November 25, 2001 so out-of-town-visitors will have two destinations with an incentive to stay
overnight. The Kern County Superintendent of Schools Office has agreed to assist with this
promotion by printing and distributing 60,000 full color rack cards for hotels andvisitor centers. Bus
tours are being planned for students. It was noted in 1993, the Kern County Museum hosted a
similar exhibit, "Dinosaur Invasion," with a visitor total of 53,000 of that number 40% were non-local.
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE .......
Tuesday, June 5, 2001
Page -2-
Councilmember Salvaggio explained in the past the Council. has considered the following criteria
when. reviewing requests from non-profit groups for City funds: 1) One-time expenditures rather than
ongoing costs; 2) Capital expenditures rather than general operating expenditures; 3) One-time
activities which are tied to specific high-priority City Council goals; and 4)use of'City facilities by the
non-profit group. Non-profits making requests also have been asked to prOVide matching funds.
The Council carefully considers these requests since there are limited funds available to meet such
requests due to financial demands of normal City operations, including police and fire protection,
public works street and road repairs and other essential City services.
The City this last year gave the Bakersfield Museum Of Art $30,000 to fund the sculpture garden as
.part of their expansion. Prior to that, the City deeded the land to the Museum, which is valued at
approximately $295,000. Since the MuseUm broUght this last request, Committee member
Salvaggio received a letter addressed to him as the Honorable Vice Mayor from Rogers Brandon
stating the Bakersfield Museum of Art has completed a $2.7 million enhancement to its facility.and
has raised over half the cost for the construction in private donations and grants. The Museum is
seeking an additional $1 million to pay off the existing debt, and in the future they hope he has a
chance to visit the museum and consider additional funding.
Committee member Salvaggio explained there are four requests for funding before the Committee
today and it would be difficult to rank the requests without showing favoritism. It was noted that the
City has received many more requests for funding from non-profits this year than at any time in the
past.
Committeemember.Hanson stated that when a group comes to the City requesting funds, it would
make it a lot easier ifthey came with a balance sheet, year-end income and expense report, a
presentation regarding their past and future fund-raising efforts and the purpose for the request.
He suggested that the City needs to have a set-dollar amount and .review the requests for funding
within that budgeted amount.
Committee Chair Maggard expressed that the City should consider the role of the arts and their
place in the budget. He would like the COuncil as.a whole to consider the current policy and whether
or not the Council wants to invest in the culture.of the community and use a criteria different from
the .current policy.
The Committee decided to hear all of the presentations for funding requests being made before the
Committee before making any recommendations.
B. Discussion and Committee recommendation regarding .letter of request from the Kern
CountyMuseum Authority Board for a contribution of $100,000 towards the.Kern County
Museum operations
Don Murfin stated the Museum Authority Board views their request as.different.because they are
a government agency and not a non-profit organization. He expressed they feel that at sometime
in the future they would'like the City to become a partner in support of the Museum. Since meeting
with the Committee on May 3r~.and follow-up meetings with City staff, they have changed their
original request from $100,000 for ongoing operational expenses to a request for a contribution of
$105,000 from the City to assist -the Museum in fulfilling its ADA requirements for their expansion.
They are going to build a $3.5 million oil exhibit facility and part of that would be refurbishing the
front with streetscapes and an entry into the facility, which would need to meet ADA requirements
for handicapped access.
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE
Tuesday, June 5, 2001
Page -3-
There was a discussion about using Community Development Block Grant(CDBG) funds as a form
of assistance instead of cash contributions.
Committee member Hanson expressed the difficulty in making a decision on funding when the
Committee does not have financial information on the Museum Foundation or a copy of their
budget.
The-Committee thanked Mr. Murfin for .modifying their request and requested staff to meet with
representatives of the Museum to see what projects would qualify for CDBG funding.
5. NEW-BUSINESS
A. Discussion and Committee recommendation regarding policy on cable broadcast of
public *meetings
The Committee deferred this item.
B. Discussion and Committee recommendatiOn.regarding a request forfinancial assistance
from the Bakersfield Music Theatre
City Manager Alan Tandy spoke regarding a letter frOm Mr. Fillbrandt (on behalf of the Board of the
Bakersfield Music Theatre)' asking for financial assistance. They have done an excellent job
retrofitting the building and making.it av~.ilable as a downtown theatre and now they are in financial
difficulty.
Jim-Fillbrandt, Executive Producer, Bakersfield Music Theatre, spoke about-their theatre being in
operation for 31 years..He presented an overview of their finances and 'programs. They employ
about 149 people, with most of their employees being Iowto moderate income. They renovated and
refurbished the historic bank building at 1931 Chester Avenue to convert itto a theatre and are.now
requesting assistance .to pay offthe loan. If *they are not able to get assistance, they will-not be able
to stay open. They are being successful-in their fund-raising, .but cannot pay the .loan and continue
the operating expenses. Their request is for a one-time grant of $50,000 or an annual grant for five
years of $20,000 a year.
Staff provided information regarding.Proposition 12 monies and one of its.resources is a competitive
grant program *to fund developmentor rehabilitation of real-property consisting of urban recreational
and culture centers, museums and facilities for wildlife education or environmental education.
C. Discussion and Committee recommendation regarding a request for financial assistance
from Bakersfield College .to develop a community aquatic center
Tom Burke, Director of 'Business Services; 'Bakersfield College, presented information on the
college's.new aquatic center project and planned refurbishment of the existing pool. Plans call for
construction of a new state-of-the-art Olympic-size pool made of stainless steel, which will be the
first of its kind in California. He explained their fund-raising campaign and donations received to
date. They are requesting financial support and a partnership with the City for the development of
.the Aquatic Center project.
AGENDA SUMMARY REPORT DRAFT
BUDGET AND FINANCE COMMITTEE
Tuesday, June 5, 2001
Page -4-
Stan Ford reported that at the direction of Committee Chair ~Maggard he has been meeting with
representatives of Bakersfield-College regarding their Aquatic Project. Since then, he has been
approached by the Kern High School District regarding a joint venture. The City does have
swimming pool .needs. The pool design at Bakersfield College may not be the most optimum for
the City's needs in terms of lessons .and programs. The older pool the College is renovating may
be more accommodating of lessons than the-new pool, which has more of a competitive design.
Stan Ford stated that staff had not reached a definite ~recommendation regarding Recreation and
Parks participation and how the college's aquatic .project when completed, Will fit with the City's
aquatic needs.
Committee member Hanson spoke about the four requests before the Committee. The Bakersfield
Museum of Art raises money primarilythrough fund-raisers and communityparticipation. The Music
Theatre primarily raises money through donations, fund-raising and .people coming to events. The
Kern County Museum has sources, and particularly the County Superintendent of Schools has
sources of millions of tax-payer dollars. He .feels the Bakersfield Museum is very important to our
culture and the "Stars" Music. Theatre adds a great deal to the community and .particularly the
downtown area.
Committee Chair Maggard spoke in support of aquatic sports and the need for more swimming
facilities in our community as it affects the performance of students and the ability to compete for
swim scholarships. He asked-staff to explore how these two facilities might fit into the City's
recreational needs and,if 'they would enhance the ability to deliver services to the community. The
Kern County,Museum does have access to other resources, but have changed their request to a
one-time brick and mortar request. The other two requests from the Art Museum ,and "Stars"
Theatre are one-time, or could be ongoing depending on how the .requests are addressed.
The Committee referred the request for funding the Bakersfield College Aquatic Center to
Recreation and Parks staff to come back with a recommendation as to whether it :meets with the
goals and needs of the City's swim programs.
Committee member Hanson made a .motion that the City fund the request from the Bakersfield
Museum 'of Art for $28,500 toward the RuSsell and Remington exhibit from Council Contingency;
the Council's policy on -funding for non-profits .be reviewed by the COuncil as.a Whole on June 13th;
and the other requestsfrom the Kern County Museum, Bakersfield Music -~heatre, and Bakersfield
College Aquatics Program be considered by the full Council at the June -13th meeting. Committee
Chair Maggard added to the motion previously made by Committee member Hanson a
recommendation for the full Council to also review establishing a fixed dollar amount in the annual
budget-to make available to non-profit groups. Committee members Maggard and Hanson voted
in support of tl'ie motion and Committee member Salvaggio voted against the motion.
Committee member Salvaggio stated he was unable to support the motion to fund just one request
and not the others until the policy for funding non-profits has been reviewed by the full Council. He
would support a motion for the full Council to review the policy criteria for funding non-profits at the
June 13~h meeting and for the full-Council.to consider all four requests for funding at that time.
AGENDA SUMMARY REPORT DRAFT
'BUDGET AND FINANCE COMMITTEE
Tuesday, June 5, 2001
Page ~5-
The Committee directed staff to prepare Majority and Minority'Reports and provide backup material
with comment and staff's recommendations.
The MajorityReport will include a recommendation for the full Council to discuss the following: the
City's .policy and criteria used in evaluating requests for funds -from non-Profits; the possibility of
establishing a fixed .dollar amount in the annual budget to make available to non-profit groups; a
recommendation to fund the request from the -Bakersfield Museum of Art for $28,500 toward 'the
Russell and Remington exhibition; and review and recommendation on funding the .three remaining
requests.from the Kern County.Museum, the ~Bakersfield Music Theatre and the Bakersfield College
for the Aquatic Center project.
The Minority Report will include a recommendation for the full Council to.discuss'the' City's.policy
and criteria used in evaluating requests for funds from non-profit groups and as part of that
discussion a .recommendation-on 'funding the four requests from the Bakersfield Museum of Art,
Kern County Museum, the-Bakersfield Music Theatre and the Bakersfield ,College for the Aquatic
Center project.
.6. COMMITTEE COMMENTS
7. ADJOURNMENT
The meeting adjourned at 6:32 p.m.
Staff present: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City .Manager John W.
Stinson; :Finance Director Gregory Klimko; and Assistant to the City Manager Darnell Haynes
Others .present: Don Muffin, Kern-County Museum Foundation; David K. Cohn, Charles ~Meyer and
Richard Beene, Bakersfield Museum of Art; Jan Petrini and Jim Fillbrandt, Bakersfield ~Music Theatre;
Tom Burke, Bakersfield 'College
cc: Honorable Mayor and City Council
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BAKERSFIELD
CITY MANAGER'S OFFICE
MEMORANDUM
May 23,2001
TO: Honorable Mayor & City Council
FROM: Alan Christensen, Assistant City Manager ,~
SUBJECT: Policy on Cable Broadcast of Public Meetings (Couch Referral)
Councilmember David Couch asked for staff to develop a policy regarding the broadcast
of public meetings in the City Council Chambers. The following is staff's recommendation:
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 3 days prior to the meeting.
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.
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 Systems, 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.
This policy, of course, is a draft at this point. We welcome any input from the Council.
MEETING DATE: June 27, 2001 AGENDA SECTION: Consent Calendar
ITEM: 8.g.
TO: Honorable Mayor and City COuncil ~ APPROVED
FROM: Gregory J. Klimko, Finance Director [ DEPARTMENT H,-AD
DATE: June 7, 2OOlpolicy City ~(..~ ~~,,~' / CITYA~O~NE~Y ~CiTY MANAGER.~
SUBJECT: Investment of the "~ '~['
RECOMMENDATION: Staff recommends referral to Budget and Finance Committee.
BACKGROUND:
California Government Code Section 53646 requires staff to annually render to the City Council a
statement of investment policy which must be considered at a public meeting. The current
Investment Policy (copy attached) was adopted in July 2000. A.council.member requested that staff
participate in the Investment Policy Certification. Program offered by the Municipal Treasurer's
Association of the United States and Canada (MTA US&C). The Association provideS a-model investment
policy that gives guidance and assistance in developing or improving existing investment.policies in the public
sector. Staff has rewritten the City's Investment Policy in-the format of'MTA US&C's model policy, Authorized
investments and percentage limitations have not changed from the current policy..
Notable information that has 'been added to the rewritten policy, in order to qualify it for certification, includes
sections concerning'conflicts of interest, brokeddealer-relationships, collateralization, diversification, internal
control, performance standards, reporting and investment policy adoption. These additions further document
current investment 'procedures and will not cause changes in treasury operations.
A glossary of treasury terminology is also included with the Investment Policy which is a certification
requirement.
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POLICY RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE
CITY OF BAKERSFIELD ADOPTING AN
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 an Investment Policy in
conformance with the 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 hereby adopts the Investment Policy as set
forth in Exhibit "A" attached hereto and made a part hereof.
.......... o0o ..........
Page 1 of 2 --
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 ,
by the following vote:
AYES: COUNCILMEMBER CARSON, BENHAM, MAGGARD, COUCH, HANSON, SULLIVAN, SALVAGGIO
NOES: COUNCILMEMBER
ABSTAIN: COUNCIL:MEMBER
ABSENT: COUNClLMEMBER
CITY CLERK and Ex Officio Clerk of the
Council of the City of Bakersfield
APPROVED
By
HARVEY L. HALL
Mayor
APPROVED AS TO FORM:
BART J. THILTGEN
City Attorney
By
MICHAEL G. ALLFORD
Deputy City Attorney
Exhibit "A" attached
MGA:Isc
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April 23, 2001
Page 1 of 2 --
CITY OF BAKERSFIELD
INVESTMENT POLICY
I INTRODUCTION
This Investment Policy is intended to provide guidelines for the prudent investment of the City
of Bakersfield's temporary idle cash, and outline the policies for maximizing the efficiency of
the City's cash management system.
It is the policy of the City of Bakersfield to invest public funds in a manner which will provide
safety of principal and at least a market rate of return while meeting the daily cash flow demands
of the City. Investments will conform to all statutes governing the investment of public funds.
The primary goals of this policy are:
· To assure compliance with all Federal, State and Local laws goveming the
investment of public funds under the control of the City Treasurer.
· To maintain the principal value of financial assets and ensure ample liquidity to
meet operating expenditures.
· Within the constraints of safety and liquidity, and within the parameters of this
Investment Policy generate a market rate of return.
The ultimate goal is to enhance the economic status of the City of Bakersfield while protecting
the safety of its financial assets.
II SCOPE
This 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 the City of Bakersfield
Municipal Code Section 2.92.
Investments made on a pooled basis include monies of the City of Bakersfield, the
Redevelopment Agency and the Public Financing Authority. The pooled funds are accoUnted for
EXHIBIT A
in the City of Bakersfield's Comprehensive Annual Financial Report (CAFR) and include:
0XX General Funds
Special Revenue Funds
2XX Debt Service Funds
3XX Capital Project Funds
4XX Enterprise Funds
5XX Internal Service Funds
6XX Fiduciary-Agency Funds
Any new fund created, unless specifically exempted.
All debt issue proceeds will be invested in accordance with the associated trust indenture, and in
such a manner that facilitates arbitrage rebate calculations.
III PRUDENCE :
Investments shall be made in the context of the "prudent person" standard:
Investments shall be made with judgement and care, under circumstance 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 prudent investment diversification for the City's temporary idle cash vs. the Firemen's
Disability and Retirement Fund is different. Up to 40% 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. This exception to investment diversification among the highest quality
securities is deemed prudent and necessary in order to increase the available options for keeping
retirement funds fully invested at or above the six percent actuarial rate of return.
IV ~ OBJECTIVE ,.
Criteria for selecting investments and the order of priority are:
· Safety_ - Safety of principal is the foremost objective of the investment program.
The City only operates in those investments that are considered very safe. The
City shall seek to preserve principal by mitigating the two types of risk, credit risk
and market risk.
· Credit Risk - Potential loss due to the failure of an issuer of a security.
· Market Risk - Potential decrease in the value of securities due to changes
2
in the general level of interest rates.
· Liquidity - Liquidity 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 should the need for cash occur unexpectedly.
° Yield -Yield is the potential dollar earnings an investment can provide and is
sometimes described as the rate of return.
V DELEGATION OF AUTHORITY
In accordance with the City of Bakersfield Charter, Municipal Code and subsequent resolutions,
the City Treasurer is aUthorized to invest the City's funds in accordance with California
Government Code Section 53600 et seq. The City Treasurer shall be responsible for all
transactions undertaken and shall establish a system of controls to regulate the activities of
subordinate officials.
VI ETHICS AND CONFLICTS OF INTEREST
All officials involved with the City of Bakersfield's investment program shall exercise their
fiduciary responsibly as custodians of the public trust. The City Treasurer, or when appropriate
the Treasury Supervisor, shall avoid any transactions that might impair public confidence in the
City's ability to manage the investment of public funds in an effective manner. The City
Treasurer, Treasury Supervisor, or any other official charged with the responsibility of making
investment decisions, shall have no vested interest in any investment being made involving
public funds of the City, and shall gain no financial benefit from such investment decisions.
VII AUTHORIZED BROKER/DEALERS AND BANKS
All financial institutions that desire to do business with the City shall be evaluated by the City
Treasurer to determine if they are adequately capitalized, meet California Government Code
requirements and agree to abide by the conditions set forth in the City of Bakersfield Investment
Policy. Whenever reasOnable and in keeping with Government Code, investments are placed
locally.
Broker/dealers are investigated to determine if there is pending legal action against the firm or
the individual broker who would be the City's contact and that the firm offers securities
appropriate to the City's needs. All broker/dealers, which may include "primary" dealers or
regional dealers that qualify under Securities & £xchange Commission Rule 15c3-1 (Uniform
Net Capital Rule), who desire to become authorized bidders for City investment transactions
must supply the City Treasurer with the following:
· Current audited financial statements
· Account authorization forms
· Proof of National Association of Securities Dealers certification
· Completed broker/dealer questionnaire
· Certification of having read and agreement to abide by the City of Bakersfield
Investment Policy
All banks that desire to become authorized bidders for time certificates of deposit (TCD) must be
a qualified public depository as established by State Law and supply the City Treasurer with the
following:
· Current audited financial statements
· Depository contracts
· A copy of the latest FDIC call report
· Certification of having read and agreement to abide by the City of Bakersfield
Investment Policy
Broker/dealer account authorizations and depository contracts will be executed by the City of
Bakersfield Finance Director as required by City Charter. The City Treasurer will maintain a list
of authorized broker/dealers and banks that are approved to do business with the City. An annual
review of the financial condition of authorized financial institutions will be conducted by the
City Treasurer.
VIII AUTHORIZED & SUITABLE INVESTMENTS
The City of Bakersfield's investment program is govemed by the California Government Code
Sections 53600 et seq. Within the context of these limitations, the following investments are
authorized, as further limited herein (Single Asterisk * denotes term or percentage imposed by
State statute; Double Asterisk ** denotes term or percentage utilized by the City of Bakersfield
which is more restrictive than statute):
A. United States Treasury Bills, Notes And Bonds
United State Treasury Bills, Notes and Bonds are securities which have the full
faith and credit of the United 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 person" standard shall apply. Maturities
are limited to five* years from settlement date.
Treasury Bills (T-Bills) are short-term debt obligations of the
United States Govermnent, 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 quoted on a discount basis. The difference between the '
4
discount price and the full face value paid at maturity equals the
total retum.
Treasury Note (T-Notes) are initially issued by the auction
process with two, five and 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 by the auction
process with thirty year maturities and have characteristics similar
to T-Notes.
B. United States Government Agencies
United States Government agencies include 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 20%** of the portfolio may be invested in 'any
single agency name. Maturities are limited to five* years from settlement date.
C. Bankers Acceptance
Bankers Acceptance (BA) is a time draft or bill of exchange, issued fi.om a letter
of credit, and is normally used to finance international trade. When the accepting
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 considered
extremely safe in that there has never been a default on a BA. BA's trade on a
discount basis and may not exceed 270* days to maturity. 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 may be invested in this category. Eligible BA's are those
issued by banks with a short term debt rating of at least A-1'* by Standard and
Poor's Corporation or P-l** by Moody's Investors Service, Inc..
D. Commercial Paper
Commercial Paper (CP) is a short-term promissory note. 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-1 by Standard and
Poor's Corporation or P-1 by Moody's Investors Service, Inc. CP is issued by
domestic corporations having assets in excess of $500 million and having an A or
higher rating on its debt, other than CP, as provided by Standard and Poor's or
Moody's. Purchases of eligible CP may not exceed 180' days to maturity. No
more than 10%* of the portfolio maybe invested in CP issued by any one
' corporation. No more than 15%* of the portfolio may be invested in this
category.
E. Repurchase Agreements
Repurchase Agreements, commonly called Repos, consist of two simultaneOus
transactions. One is the purchase of securities by an investor (City of Bakersfield)
from a bank or dealer. The other is the commitment by the bank or dealer to
repurchase the securities at the same price plus interest at some mutually agreed
future date. Normally the securities are U.S. Treasury notes or bonds and are held
by a Federal Reserve Bank. Repos can be done with banks or dealers with which
the City has entered into a master repurchase contract that specifies terms and
Conditions of repurchase agreements. The maturity of Repos shall not exceed
90** days. No more than 30%** of the portfolio may be invested in this
category.
F. Local Agency Investment Fund
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 40%** of the portfolio whichever is less.
Due diligence will be exercised in monitoring the performance of LAIF on a
continual basis.
G. Time Certificates.of Deposit
Time Certificates of Deposit (TCD's) are similar to a savings certificate that
anyone can purchase at a bank where there is a fixed rate of interest and a
specified maturity date. 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 TCD's of any
one institution. Maturity is limited to five* years. No more than 40%** of the
portfolio may be invested in this category. Section 53652 of the California
Government Code also specifies that the City will haVe a deposit contract with
each depository.
6
H. Public Agency Savings Account - Demand Deposits'
Public Agency Savings Account - Demand Deposits are similar to a savings
account that anyone can open at a bank. The interest rate is specified at the time
of deposit, but is subject to change. All funds can be withdrawn on demand. Like
public TCD's, public agency savings accounts are collateralized in accordance
with California Government Code requirements. No more than 30%** of the
portfolio may be invested in this category.
I. Mutual Funds
Mutual Funds are money market funds meeting criteria prescribed in Califomia
Govemment Code Section 53601 and related legislation. Investment in this
category is 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 10%* of the portfolio may be invested in the shares of any one mutual fund.
No more than 20%* of the portfolio may be invested in this category. Mutual
funds are used for the investment of bond proceeds subject to arbitrage reporting.
Due diligence will be exercised in the selection and performance monitoring of
mutual funds on a continual basis.
City of Bakersfield
Summary Of Maximum Percent and Term Limitations
By Investment Type:
Percent Term
· U.S. Treasury Bills, Notes and Bonds 0 to 100% 5 Years
U.S. Government Agency Obligations 20% per agency 5 Years
Bankers Acceptances(I) 40%(2) 270 Days
Commercial Paper(3) 15%(2) 180 Days
Repurchase Agreements 30% 90 Days
Local Agency Investment Fund 40% N/A
Time Certificates of Deposit '40%(2) 5 Years
Public Agency Demand Accounts 30% N/A
Mutual Funds 20%(2) N/A
(1) Sho~t-term debt rating of at least A-1 Standard and Poor's Corporation or P-1 Moody's
Investors Service, Inc.
(2) No more than 10% of the portfolio may be invested in any one entity from these categories.
(3) A-1 Standard and Poor's Corporation rating or P-1 Moody's Investors Service, Inc. rating.
Should any investment percentage and portfolio limitation be exceeded due to the unexpected
fluc. tuation 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 shall consider restructUring the
po~folio basing the decision in part on the expected length of time the portfolio will be
imbalanced.
Any State of California legislative action that further restricts allowable matUrities, investment
type or percentage allocations, will be inCorporated into this Investment Policy and supersede
any and all previous applicable language.
IX UNAUTHORIZED INVESTMENTS
Ineligible investments are those that are not described herein, including but not limited to,
negotiable time certificates of deposit, non-government agency medium term corporate notes and
reverse repurchase agreements.
X COLLATERALIZATION
Collateralization will be required on two types of investments, time certificates of deposit and
repurchase agreements. Investment in time certificates of deposit shall be insured up to $100,000
by the Federal DePOsit Insurance Corporation (FDIC). Investments in time certificates of deposit
in excess of $100,000 shall be properly collateralized. When a depository pledges government
securities as collateral, section 53652 of the California Government Code requires the securities
to have a market value of at least 10% in excess of the City's deposit or 5'0% in excess of the
City's deposit when mortgages are pledged as collateral. Repo collateralization will be at least
102% of market value of principal and accrued interest.
XI SAFEKEEPING AND CUSTODY
All security transactions entered into by the City of Bakersfield shall be conducted on a delivery-
versus-payment (DVP) basis. Securities shall be delivered to the City by book entry, physical
delivery or by third party custodial agreement.
XII DIVERSIFICATION
To reduce credit and market risk in the overall portfolio, the City will diversify its investments
by security type, mhturity date and issuer. With the exception of U.S. Treasury securities,
diversification is also achieved by the portfolio percentages .and maturity limitations indicated in
the Authorized & Suitable Investments section of this policy.
XIII MAXIMUM MATURITIES
To the extent possible, and within the five year maximum maturity required by Califomia
8
Government Code, the City of Bakersfield will attempt to match investment maturities with
anticipated cash flow requirements.
As required by California Government Code Section 53601, any investment term longer than
five years requires express authority by the City Council to make that investment. This authority
must be granted no less than three months prior to making the investment. Investments with
terms longer than five years will be limited to the lesser of $10 million or 10% of the portfolio at
the time the investment is made.
XIV INTERNAL CONTROL
Investment transactions are reviewed by the City's external auditor as part of the annual audit.
This review verifies compliance with the City of Bakersfield Investment Policy and the
California Government Code.
XV PERFORMANCE STANDARDS
The cash management system 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 the Payroll Account. The City attempts to obtain the
highest interest yields possible as long as .investments meet the criteria required for safety and
liquidity, do not exceed a term of five years (unless otherwise authorized by the City Council)
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. The basic premise underlying the City of
Bakersfield Investment Policy is, and will continue to be, to ensure that the money is always safe
and available when needed.
Because the investment portfolio is designed to operate on a "hold-to-maturity" premise (or
passive investment style) and because of the safety, liquidity, and yield priorities, the benchmark
that will be used by the City Treasurer to determine whether market yields are being achieved
shall be the yield on the U.S. Treasury Bill or Note maturing closest to the weighted average
maturity of the City's overall portfolio.
XVI REPORTING
The CitY Treasurer shall provide the City Council monthly investment reports which provide a
clear picture of the status of the current investment portfolio. The Monthly Investment Report
shall include the following:
· A listing of individual securities held at the end of the reporting period by
authorized investment category
9
· Final maturity of all investments listed
· Coupon, discount or earnings rate
· Par value and market value
· Transactions completed during the month
· Percentage of the portfolio represented by each investment categorY
XVII INVESTMENT POLICY ADOPTION
The City of Bakersfield Investment Policy shall be reviewed annually by City staff and adopted
by Resolution of the City Council.
XVIII INDEMNIFICATION OF INVESTMENT OFFICIALS
The standard of care to be used by investment officials shall be the "prudent person" standard
and shall be applied in the context of managing the overall portfolio. The City Treasurer and his
designees' acting in accordance with established procedures and the City of Bakersfield
Investment Policy and exercising due diligence shall be relieved of personal responsibility for an
individual security's Credit risk or market price changes,, provided deviations from expectations
are reported in a timely fashion and appropriate action is taken to control adverse developments.
10
GLOSSARY
ACCRUED INTEREST: Interest earned but not yet received.
ACTIVE ACCOUNTS: Funds which are immediately available for disbursement.
AGENCIES: U.S. Government-authorized enterprises that issue debt securities commonly
called "agencies".
ARBITRAGE: In the Public finance arena, arbitrage is interest earnings on invested bond
prOceeds that exceeds interest payments to the bondholders. The .1986 Tax Act requires arbitrage
earnings to be rebated (paid) to the federal government.
AUTHORIZED INVESTMENTS: A list of permitted investments by investment type
maintained as a component to an investment policy. Allowable investment listing will generally
include descriptions or parameters for investment diversification ratios, terms of maturity, and
quality ratings.
BENCHMARK: A segment of the securities market with characteristics similar to the subject
portfolio. It is used to compare portfolio performance to the performance of the appropriate-
segment of the market.
BOND: A financial obligation for which the issuer promises to pay the bondholder a specified
stream of future cash flows, including periodic interest payments and a principal repayment.
BROKER: A broker brings buyers and sellers together for a cOmmission.
COLLATERAL: Evidence of deposit or other property, such as securtities, which a borrower
pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure
deposits of public monies.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual
report for a municipality. It includes combined statements for each individual fund and account
group prepared in conformity with generally accepted accounting principals (GAAP). It also
includes supporting schedules necessary to demonstrate .compliance with finance-related legal
and contractual provisions, extensive introductory material, and a detailed statistical section.
COUPON: The annual rate of interest that a bond's issuer promises to pay the bondholder on
the bond's face value.
CUSTODY: A banking service that provides safekeeping for the individual securities in a
i
customer's investment portfolio under a written agreement which also calls for the bank to
collect and pay out income, to buy, sell, receive and deliver securities when ordered to do so by
the ~pnnc~pal.
DEIALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and
selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: .There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of
securities with an exchange of money for the securities. Delivery versus receipt is delivery of
securities with an exchange of a signed receipt for the securities.
DISCOUNT: The difference between the cost price of a security and its maturity amount
when quoted at lower than face value. A security selling below original offering price shortly
after being issued also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest beating money market instruments that are issued
at a discount (less than face value expressed as the discount rate), and redeemed at maturity for
full face value, e.g., U.S. Treasury Bills. "
DIVERSIFICATION: Dividing investment funds among a variety of securities offering
independent returns, to reduce risk inherent in particular securities.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): Insurance provided to
customers of a'subscribing bank which guarantees deposits to a set limit (currently $100,000) per
account.
MARKET VALUE: The price at which a security is trading and could presumably be
purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future
transactions between the parties- establishes each party's rights in the transactions. A master
agreement will specify, among other things, the right of the buyer-lender to liquidate the
underlying securities in the event of default by the seller-borrower.
MATURITY: The date upon which the principal or stated value of an inveStment becomes due
and payable.
MONEY MARKET: The market in which short-term debt instruments (such as T-Bills,
commercial paper and bankers acceptances) are issued and traded.
ii
NOTE: A written promise to pay a specified amount to a certain entity on demand or on a
specified date.
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of
market activity and positions and monthly financial statements to the Federal Reserve Bank of
New York and are subject to its informal oversight. Primary dealers include Securities and
Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated
firms.
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a
fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody
state-the so-called legal list. In other states the trustee may invest in a security if it is one which
would be bought by a prudent person of discretion and intelligence who is seeking a reasonable
income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim
exemption from the payment of any sales and compensating use or ad valorem taxes under the
laws of this state, which has segregated for the benefit of the commission eligible collateral
having a value of not less than its maximum liability and which has been approved by the Public
Deposit Protection Commission to hold public deposits.
SAFEKEEPING: A service tO customers rendered by bank trust departments for a fee
whereby securities and valuables of all types and descriptions are held in the bank's vaults for
protection.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect
investors in securities transactions by administering securities legislation.
SEC RULE 15C3-1: See~ Uniform Net Capital Rule.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that
member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1' also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to
purchase securities, one reason new public issues are spread among members of underwriting
syndicates. Liquid capital includes cash and assets easily converted into cash.
WEIGHTED AVERAGE MATURITY (WAM): The average maturity of all the securities
that comprise a portfolio that is typically expressed in days or years.
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a)
oo.
INC, OME YIELD is obtained by dividing the current dollar income by the current market price
for fhe security. (b)NET YIELD or YIELD TO MATURITY is the current income yield
minus any premium above par or plus any discount from par ~n purchase price, w~th the
· [
adjt~stment spread over the period from the date of purchase to the date of maturity of the bond.
iv
POLICY RESOLUTION NO. 8 I '. O 0
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 an Investment Policy in
conformance with the 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 desires to adopt the Investment Policy as set
forth in Exhibit "A" attached hereto and made a part hereof.
--o0o
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 o~~ by
the following vote:
AYES: COUNCILMEMBER CARSON, DEMOND, MAGGARD, COUCH, .SULLIVAN, SALVAGGIO
NOES: COUNCILMEMBER J~JO~
ABSTAIN: COUNClLMEMBER
ABSEN~ COUNCILMEMBER i~JO~__..
CITY CLERK and Ex Officio Cl~k of the
Council of the City of Bakersfield
APPROVED JUL 19 Z00O
BOB PRICE
MAYOR of Bakersfield
APPROVED AS TO FORM:
BART J. THILTGEN
City Attorney .
BY:.~~~~//
Assistant City Attorney
Page I of$
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 Municipal 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
ultimate goal is to enhance theeconomic status of the City while protecting the safety of its pooled cash.
POLICY
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 herein (Single asterisk * denotes term or percentage imposed by State statute. Double
asterisk ** denotes term or percentage utilized by City staffwhich is more restrictive than statute). AS
REQUIRED BY SECTION 53601, ANY INVESTMENT TERM LONGER THAN FIVE YEARS .
REQUIRES. EXPRESS AUTHORITY BY THE CITY COUNCIL TO MAKE THAT
INVESTMENT. THIS AUTHORITY MUSTBE GRANTED NO LESS THAN THREE MONTHS
PRIOR TO MAKING THE INVESTMENT. INVESTMENTS WITH TERMS LONGER THAN
FIVE YEARS WILL BE LIMITED TO THE LESSER OF $10 MILLION OR 10% OF THE
PORTFOLIO AT THE TIME THE INVESTMENT IS MADE.
United States Treasury BHIs, Notes and Bonds are securities which have the full faith and credit of the
United 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**] FIVE* years from settlement date.
Page 2 of 5
Treasury Bills (T-Bills) are short-term debt obligations of the United States government, issued weekly
vith 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 quoted on a discount basis. The
c..lifferenee between the discount price and the full face value paid at maturity equals the total return.
T, reasury Notes (T-Notes) are initially 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
(I:HLMC) 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 20%** of the portfolio may be invested in any single agency name~
Maturities are limited to [three**] FIVE* years from settlement date.
Bankers Acceptance (BA) is a time draR or bill of exchange, issued from a letter of credit, and is used t~
finance international trade. When the accepting bank stamps "accepted" on the draft the bank guarantees
payment of the draft ara specified future date and thereby creates an acceptance. BA's are considered
extremely safe in that there has never been a default on a BA. BA's trade on a discount basis and may not
exceed 270* days to maturity. 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 may be invested in this category.. Eligible BA's are
those issued by banks with a short term debt rating of at. least A-!** by Standard and Poor's Corporation
or P-I** by Moody's Investors Service, Inc..
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-1 by Standard and Poor's
Corporation or P-I by Moody's Investors Service, Inc. and issued by a domestic corporation having
assets in excessof $500 million and having an A or higher rating on its long term debt as provided by
S~ndard and Poor's or Moody's. Purchases of eligible commercial paper may not exceed 180* days to
maturity. No mor~ 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.
Page 3 of 5
Repurchase Agreements, commonly called Repos, are transactions in which a customer (City of
BakersHeld) 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
conditions of repurchase agreements. The maturity of Repos shall not exceed 90** 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 40%** of
the portfolio whichever is less.
Time Certificates of Deposit (TCD's) are similar to a savings certificate that anyone can purchase at a
bank where there is a fixed rate of interest and a specified maturity date. 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 **] FIVE* years. No more than 40%** of the portfolio may be invested in this
category.
Public Agency Savings Account - Demand Deposits are similar to a savings account that anyone can
open at a bank. The interest rate is specified at the time of deposit, but is subject to change. All funds
can be withdrawn on demand. Like public TCD~s, public agency savings accounts are collateralized in
accordance with California Government Code. No more than 30%** of the portfolio may be invested in
this category.
Mutual Funds are money market funds meeting criteria prescribed in Government Code, Section 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 10%* of the portfolio may be
invested in the shares of any one mutual fund. No more than 20%* 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 shall consider restructuring the portfolio basing the' decision in part on
the' expected length of time the portfolio will be imbalaneed.
,~",,~'; ~'~,'
Page 4 of 5
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:
1. Safe _ty. The safety and risk associated with an investment refers to the potential loss of principal,
interest or a combination of these.amounts. The City only operates in those investments that are
considered very safe.
2. ~ 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.
The prudent investment term for the City's temporarily idle cash vs. the Firemen's Disability and
Retirement Fund is markedly different. In order tomeet-fluctuating vendor payment amounts, City funds
must be more liquid (invested for shorter terms) than retirement funds where monthly payments 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 40 percent of the
retirement fund may be invested in securities ora 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 40 percent per agency are necessary in order to assure retirement funds are fully
invested at or above the actuarial investment return rate.
.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.
8ofekeeping. Securities shall be delivered to the City by book entry, physical, delivery or by third party
custodial agreement.
]~v..estment 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 yields possible 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. ,¢;r
I·~
Page 5 of 5
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 from 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.
ADMINIST TIVE REPORT
MEETING DATE: July 18, 2001 AGENDA SECTION: Consent Calendar
ITEM: 8.c.
TO: Honorable Mayor and City Council APPROVED
FROM: Bart J. Thiltgen, City Attorney DEPARTMENT HEAD ~,,~
DATE: July 3, 2001 CITY ATTORNEY
CITY MANAGER
SUBJECT: Ordinance Adding Section 3.20.066 to the Bakersfield Municipal Code
Relating to Pre-Qualification of Bidders
RECOMMENDATION:
Staff recommends referral to Budget and Finance Committee.
BACKGROUND:
The City of Bakersfield has been considering a bidder's prequalification ordinance for some time.
Because of the high cost to the City and its inhabitants of a contractor's failure to complete a project and
because of the need to ensure high quality and timely completion of public projects, the City of Bakersfield
should, in appropriate instances, prequalify contractors.
The proposed ordinance allows prequalification on projects over $250,000 or where the City Manager,
or designee, determines that special expertise, equipment, or materials are required to' properly complete the
project.
The proposed ordinance includes appeal procedures to ensure that prospective bidders are given
proper due process if they have a complaint about the prequalification decisions.
The Public Works staff is currently developing questionnaires and a rating system which will allow the
objective quantification of the prequalification process.
S:\COUNClL~Admins\PrequalOf~idders.wpd
BJT/^DD:cy:las
July 10, 2001, 3:02pm
ORDINANCE NO.
AN ORDINANCE ADDING SECTION 3.20.066
TO THE BAKERSFIELD MUNICIPAL CODE
RELATING TO PRE-QUALIFICATION OF
BIDDERS.
WHEREAS, the City of Bakersfield desires that only qualified bidders be awarded
City projects; and
WHEREAS, City desires that such qualified bidders be identified prior to bid award;
and
WHEREAS, by pre-qualifying bidders the taxpayers and residents of the City of
Bakersfield will be better assured of high quality project results.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of. Bakersfield as
follows:
SECTION 1.
Section 3.20.066 is hereby added to the Bakersfield Municipal Code to read as
follows:
3.20.066 Pre-Qualification of Bidders.
A. The City Manager, or designee, may, at the City Manager's or designee's
discretion, authorize a pre-qualification screening for potential bidders on
projects with an estimated value of $250,000 or more, or on any project
where the City Manager, or designee, determines special expertise,
equipment or materials are required to properly complete the project.
B. All prospective bidders shall receive written notification within a reasonable
period of time of the acceptance of their pre-qualification submittal or the
disqualification of such submittal. Should a prospective bidder be
disqualified in the pre-qualification process, that prospective bidder may
appeal the decision to the City Manager, or designee, upon written request
setting forth the specific reasons for the appeal with the City Clerk filed within
seven (7) working days of the mailing or delivery of the notice of
disqualification. The City Manager, or designee, shall hold a hearing within
three (3) working days of the filing of the notice of appeal and allow the
appealing prospective bidder an opportunity to be heard on the
disqualification. The appellant and City may present evidence, testimony
and information relevant to the disqualification. The City Manager, or
-- Page 1 of 3 Pages --
designee, shall issue a written decision after the conclusion of the hearing
and mail or cause to be delivered said decision to the appellant.
C. Should the prospective bidder be dissatisfied with the City Manager's, or
designee's, written decision the aggrieved bidder may appeal the same to
the City Council by filing a written notice of appeal setting forth the specific
reasons for the appeal with the City Clerk within 5 days of the mailing or
delivery of the decision by the City Manager, or designee. The City Council
shall hold a hearing.on the disqualification within three weeks, or as soon
thereafter as possible, of receipt of the notice of appeal. Pending the
hearing before the City Council, the decision of the City Manager, or
deSignee, shall remain in full force and effect. Should the decision of the City
Manager, or designee, be reversed or revised by the City Council, the
decision shall take effect as of the date of the City Council's decision and
shall not be retroactive.
D. The decision of the City Council shall be final. Said decision shall be mailed
or delivered to all parties.
E. To the extent allowed by law, the information submitted by prospective
bidders shall remain confidential except on appeals to the City Council where
information used to decide the appeal will become public.
SECTION 2.
This Ordinance shall be posted in accordance with the Bakersfield Municipal Code
and shall become effective thirty (30) days from and after the date of its passage.
.......... o0o ..........
-- Page 2 of 3 Pages --
I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on ,,
by the following vote:
AYES: COUNCILMEMBERCARSON, BENHAM, MAGGARD, COUCH, HANSON, SULLIVAN, SALVAGGIO
NOES: COUNCILMEMBER
ABSTAIN: COUNCILMEMBER
ABSENT: COUNCILMEMBER
CITY CLERK and EX OFFICIO of the
Council of the City of Bakersfield
APPROVED:
By:
HARVEY L. HALL, MAYOR
CITY OF BAKERSFIELD
APPROVED AS TO FORM:
BART J. THILTGEN
City Attorney
By:
ALAN D. DANIEL
Deputy City Attorney
ADD:dlr:laa:cy:lsc
S:\COU NCIL\Ords\PreQualifyBidderOrd.wpd
-- Page 3 of 3 Pages --
ADMINISTRATIVE REPORT
I
MEETING DATE: July 18, 2001 I AGENDA SECTION: Consent Calendar
I
ITEM: 8.
TO: Honorable' Mayor and City Council APPROVED
FROM: Bart J. Thiltgen, City Attorney DEPARTMENT HEAD
DATE: July 3, 2001 CITY ATTORNEY_
SUBJECT: Minimum rating for Sureties issuing Performance and labor and Materials Bonds for City
construction projects.
RECOMMENDATION:
Staff recommends referral of this item to the Budget and Finance Committee
BACKGROUND:
The City requires bonds to be obtained by all contractors performing public works projects for the City.
These bonds are. to insure completion of the project (Performance Bond) and to insure payment of the
contractor's/subcontractor's employees and the suppliers of material (Labor and Material Bond). Depending
upon the dollar size of the project, the amount of the required bond may vary, but generally, the City requires
each bond to be in the amount of 100% of the contract.
Recently, one of the City's contractors experienced financial and performance problems, and the City
"called" the bonds. Unfortunately, the surety which issued the bonds was then Court ordered into liquidation
in the State of Nebraska. A State Liquidator currently has control of the surety. This situation has caused the
City to re-evaluate the City's requirements for credit worthiness of sureties, to identify potential alternatives
to our current system, as well as to encourage legislative changes to better protect the City.
While some alternatives have been identified by Staff, there exists potential detrimental ramifications
with these alternatives. It is recommended this issue be referred to Budget and Finance Committee to provide
for an in-depth evaluation of each alternative and its associated ramifications.
BJT:alj
S:~COUNCIL ~Admins\SuretyBonds.wpd
July 3, 2001
JL18CA.CC
The following documents pertain to the:
BUDGET & FINANCE COMMITTEE
meeting of Thursday, August 2, 2001 at
4:00 PM.
BAKERSFIELD SENIOR CENTER
530-4th Street,
Bakersrmld, CA
Mission Statement
To support independence and self-sufficiency through, and inclusive of, networking of
education, information, and assistance with problem solving.
The Bakersfield Senior Center encourages older adults to participate in a variety of
volunteer activities so they may remain an integral part of the community, offering a
~productive outlet for energies, and demonstrating the continued value of their years of
experience.
Keeping seniors independent and-involved in the community is beneficial to the families, friends, our
youth and all segments of our population by providing socialization, nutrition programs, job training,
health screening and opportunities to increase the quality of life for one of our community's most
deserving resources.
In 1972 a group of senior citizens from Central Bakersfield formed an organization under the name
of"The Young At Heart Club". Until 1974, they met at the"L" Street Manor for social and business
purposes. From this modest beginning a need developed for more structured programs that provided
more viable activities for the senior community. In 1982 the group became known as The Bakersfield
Senior Center and proceeded to incorporate as a 501 (3)(c)Non-Profit Corporation.
Our Tax ID #77-0013149
('" The Bakersfield Senior Center was established to provide a vehicle through which the needs of an
" increasing senior citizen population may be better met. The original and continuing purpose of this
agency is to provide quality responses to the needs of senior citizens of Metropolitan Bakersfield.
The Bakersfield Senior Center attempts to provide a broad spectrum of programs to capture the
interest of it's diverse client population. The center began with a small group of participants, and
have grown to more than 400 members.
The programs now in the center are those approved by Our eleven member Board of Directors and
developed through .interaction with other agencies that exist in the community. Programs includes but
not limited to blood pressure checking, flu shots, heating test and diabetes testing, other programs
are nutrition program, food supplements, computer training, senior information and referral service.
Our activities .includes the art class, bible study, craft class, sewing class, floral arrangement, movies,
pool games, domino games and jigsaw puzzles. We work with the neighboring schools, providing
space for various school activities.
Our hours are from 8:00am to 4:00pm Monday thru Friday.
Bakersfield Senior Center
Participants
1. Ethnic Representation
a. Hispanics 35%
b. Whites 37%
c. African Americans 26%
d. Asians 02%
2. Gender
75% Female
25% Male
o. Income
95% of participants meet "Low Income" parameters; established federal and state
r '
governments. This g oup s meets all other income limiting guidelines established by
utility companies, phone companies, etc. I estimate that 95% of our participants'
income is less than $1000.00 monthly. A majority subsist on $600 - $700. monthly.
4. Hot Lunch Program
For $1.50 a senior can purchase a nutritious hot lunch Monday thru Friday. Many of
,"' our seniors eat part of the lunch at lunch time and then saves the rest of that meal for
an evening meal.
5. Funding
The Board and staff of the Bakersfield Senior Center strive to find funding
opportunities for the operation of the Bakersfield Senior Center. We encourage our
participants to become members of the center. The membership fee is only $10.00
annually. We presently have approximately 350 paid memberships. During the budget
year we sponsor Pancake Breakfast, Yard Sales, and a special Father's Day.banquet.
In the past years a weekly Bingo game, which was open to the public, was a good
generator of income. That's not the case anymore. Since reservation gambling is
relatively.close by, and has such "Big Pay Offs" our bingo games has fell on hard
times. Other bingo games operated by Non-Profits are also suffering the incursion
of Reservatton Gambhng . T-he two nearby reservations provide free rides to all who
wants to go. This is a daily free service "Reservation Gambling" provides. In the past
we have received some grants from private sources. Those sources havealso dried up.
The funds are mostly going to education for the youth, youth activities and health
programs. Our experience at the Bakersfield Senior Center is that the low income
elderly is ignored from local private funders.
This shortfall in funding has caused.us to make a request to the City of Bakersfield in
order to continue providing services to our participants.
Bakersfield Senior Center
Balance Sheet
Jun 30, 01
100% of Program Year Expended
ASSETS
Current Assets:
Cash in Bank - Bingo 31.09
Cash In Bank - General Funds i,406.47
Cash on Hand 2,493.66
Total Current Assets 3,931.22
Fixed Assets:
Fixed Assets - Land 1
Fixed Assets Building 408,300.00
Less Accumulated Depreciaton ('272,405.00)
Total Fixed Assets 317.895.00
Total Assets 321,826.22
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable 6,000.00
Loan Payable 4,500.00
Hall Rental Payable 660.00
Total Current Assets 11,1 60.00
Long Term Liabilities: 53216.56
Shareholders' Equity:
Unrestricted Fixed Net Assets 278,33693
Retained Earnings (3,541.09)
profit Loss for Period (17,34618)
Total Shareholders' Equity 257,449.66
321 826.22
Bakersfield Senior Center
Proposed Income and Expense Statemen~
July 1, 2001 to December 31, 2001
Revenue:
United Way Allocation 10,000.00
Rent City of Bakersfield 15,000.00
Rent Kern Medical Center 1,200.00
Membership Dues 1,000.00
Pancake Breakfast 700.00
United Way Designations 500.00
Yard Sales 500.00
Hall Rentals 500.00
Total Proposed Income 29,400.00
Personnel Cost:
S[aff Salary 25,257.00
Employer FICA Expense 1,932.00
Workers' Compensation 293.00
State Unemployment Insurance 490.00
Total Personnel Cost 27,972.00
Other Cost:
Office Supplies 600.00
Janitorial Supplies 600.00
Telephone 'Cost 1,200.00
Utilities - Gas and Lights 8,500.00
Water 1,200.00
Liability Ins. Bldg/Equip. 4,670.00
Misc. Cost 1,000.00
Postage and Shipping 300.00
Building and Grounds Maint. 500.00
18.570.00
Total Proposed Income 29,400.00.
Total Proposed Expense -46.542.00
.... . Bakersfield. nJor
' .~'
530 4* Street, Bakersfield, CA 93304, E-mail: bscniorsr~l~acbell,net (661) 325-1113 Fax: (661) 325-8385
June 24, 2001
Mr. Allan Tandy
City Manager
City of Bakersfield
1501 Truxtun Ave.
Bakersfield, CA 93301
Dear Allan;
At the City Council meeting of June 13,2001, and after considerable discussion, the Council
voted to make a donation to two non-profit organizations. I was not aware that the subject would
be on that meeting agenda, or I would have been there to speak up for The Bakersfield Senior Center.
I listened and watched the meeting on Gov TV.
I am not sure if the council changed any previous policy in re to request from each non-profit.
It seems that each request from each non-profit will be debated and then voted up or down.
I do not wish to criticize the councils' decision, but I am concerned that the popular non-
profits that are represented by articulate speakers, will receive favorable consideration from the
council. Other less glamorous organizations might not receive favorable consideration.
I want to know what the Bakersfield Senior Center needs to do in order to receive an
opportunity to make our case to be considered for a donation.
We are struggling like most independent non-profits just to keep the doors open. Our
operating expenses exceeds our income. Bint~o used to provide a nice income for us, but since the
reservation gambling (Porterville and Lemoore) casinos started providing free but trips to their
respective casinos, we barely break even on Bingo. As I have stated in the past, our membership or
attendance group easily qualifies as low income elderly.
I am willing to appear before council committee or full council to appeal for help.
· Executive Director gl'~ MANAGER S OFF
B A K'E R'S F I E L D
Alan Tandy · City Manager
June 29,2001
Mr. Lynn Edwards
Executive Director
Bakersfield Senior Center
530 4th Street
Bakersfield, CA 93304
Dear Mr. Edwards;
Thank you for your letter of June 24th. We have had a record number of requests for
funding from groups outside the City. Several of them were referred to the' Budget and
· Finance Committee, and from there to the City Council.
Last year your request received favorable consideration from the Council. My suggestion
to you would be to make another request - around the approximate date of the one you
sent last year. In your request, articulate your financial circumstances, efforts to raise
money, sources and uses of .existing funds, what you intend to use the funds for, etc.
For your information, the staff report that went to the City Council regarding the recent
meeting is enclosed.
Thank you for writing. I will expect to be-hearing from your shortly.
Cordially, ~
City Manager /
enclosure
cc: Honorable Mayor and City Council
S:~ALAN~Lynn Edwards response 062901.wpd
City of Bakersfield · City Manager's Office · 1501 TruXtun Avenue
Bakersfield ° California ° 93301
Staff Comments / Recommendatione
Historical Council Policy
The City Council policy of, for the most part, not funding operating Costs of public service
agencies has served the City well over the years. There are dozens, perhaps hundreds
of agencies that serve the poor, sick, disabled, and disadvantaged, all of which have great
merit and all of which need more money. A broad scale opening of the policy would
overwhelm the City. As you know, the City runs a tight ship even for its historic operations
- our employee to population ratio is among the lowest in the State. There is no way that
we can afford to help even a small percentage of the agencies 'that have merit. To set
aside a flat amount and have five, ten, even 20 agencies compete would be a disservice -
building ~hope and consuming' time in the application process - for a long list that we could
not help to fund anyway.
Also, this year has been a good one financially- with the State electric crisis that may soon
turn. We could then be limited to our historic police, fire and' street priorities, yet having a
policy that invites public service agencies to apply for funds. Funds, under that condition,
that would not .be available.
.'...) Policy Adjustment
Most of the strong Council interest in funding operating costs of non-profits has revolved
around the Bakersfield Senior Center, Symphony and Bakersfield Art Museum. In each
of these cases, there has been a multi-year relationship with the entities involved. In fact,
all three have leased City property for years. Two have been gifted the property they
formerly leased.
It .is therefore recommended.that the historic policy be kept in place with the exception o[
these three entities, whose long--term relationship and involved financial-history with tho
City_ make them unique.
Specific Application Requests
Bakersfield Music Theater - We gave this project $50,000 in CDBG job creation
money. They now ask for $50,000 more on a basis that they say they will never
return for more. Their continued existence appears to be threatened. This is for
debt service retirement on capital costs, and therefore fits within the Council policy.
The appropriate source, if Council wishes to fund it, would be Council Contingency.
The activity does fit the concepts of the Downtown Charrette and Vision 2020.
Attachment - Page 1
_Kern County Museum - The original request was for $100,000 in operating funds.
That. has been amended to use the funds for ADA issues. This is historically a
County and school function. Staff would recommend helpingthem out by prioritizing
two existing City projects to "go there, next" rather than assisting them with operating
costs or the ADA. Under existing Council policy, we are converting all asphalt street
medians to our 'new minimum standard. We also have an ongoing street lighting
program. North Chester needs both and is in an eligible CDBG census tract. Staff
recommends working out a two-year CDBG program for those two .functions.
Bakersfield College - The aquatic facility project at Bakersfield College is a good
start in meeting the strong current, and growing, demand for competitive swimming
facilities in the community. The athletic staff of the Kern High School District has
expressed that high school swimming is now their second largest sport in terms of
number of participants and that they expect this sport will continue to grow annually.
Our Master Plan, and other data, indicatethat Bakersfield is severely deficient in the
provision of public swimming opportunities.
Despite this deficiency, the department believes the addition of pool space at
Bakersfield College will not enhance the recreational opportunity or needs the
department is attempting to meet. This belief is based primarily on the design of the
facility and the potential availability of this facility to the generat public. Our initial
evaluation of facility needs is for multi-use, leisure design, facilities that can serve
several different users groups simultaneously, or many diverse or varied uses in a
single design (.e.g. a zero-depth entry pool with lap lanes).
The College wants an unspecified amount to contribute toward a new competitive
pool and rehabilitation of their old pool. While this has merit, the College has its
own tax base. The Recreation and Parks Director feels any City resource
investments in aquatics would best be applied elsewhere. The 'staff recommends
exploring discussions on joint use opportunities-with no .capital contribution.
Attachment - Page 2 "
BAKERSFIELD
MEMORANDUM
July 30, 2001
TO: Alan Tandy, City Manager
FROM: Darnell Haynes, Assistant to the City Managel(~,,~C~
SUBJECT: Senior Citizen Services
I contacted representatives from Fremont, Fresno, Glendale, Modesto, Ontario, Oxnard,
and Riverside, California to learn about the kinds of services and financial support they
provide for seniors in their communities. Typically, cities budgeted $200,000 to $400,000
in General Funds for programs and services for seniors as part of the Parks and
Recreation Operating budget. All cities contacted utilized some combination of Federal
and State grants, and interagency agreements to provide funding for major programs such
as "Hot Meals on Wheels". All cities contacted generated program income by charging
fees for lunch and dinner services, facility rentals, special programs and bingo to partially
offset costs for providing programming for seniors. This memorandum briefly summarizes
some of the basic information I was able to obtain. I also looked on the internet at the web
page for each city and have attached some basic information about each program and
activities offered. I was unable to access the City of Ontario's web page. Please let me
know if you would like additional information or if I can be of further assistance.
1. Fremont, CA- Population 203,413; The city operates one senior center under the
Recreation department which has an annual operating budget of approximately
$400,000. The General Fund supports about two thirds of the budget. The
remaining funds are generated by fees charged for the lunch and dinner programs,
donations, fund raisers, facility rental and other agency agreements/contributions
such as classes offered through the adult school and funded by the state. The
Senior Center has many activities that occur on a regular basis.
2. Fresno, CA- Population 427,652; Senior Citizen Nutrition Program and activities
-are budgeted under the Fresno Parks, Recreation and Community Services
Department. The General Fund provides the majority of the funding to support
senior services. Interagency agreements and grants provide additional resources.
The city owns and maintains some of the buildings and it has agreements to provide
programming at some senior residential centers throughout the city,
Under the auspices of the Fresno-Madera Area Agency on Aging (FMAAA) the City
of Fresno provides a congregate Hot Meals Program for the elderly at 15 sites
throughout Fresno. The FMAAA reimburses the City of Fresno for partial staffing
at the sites. The Fresno Economic Opportunity Commission prepares and delivers
S :'d)arnctl~nio rscrvlccs
the meals. The City of Fresno assigns a Recreation Coordinator to each site for
a maximum of six hours per day to oversee the programming activities and
coordination of volunteers. The City of Fresno pays it's Recreation Coordinators
$8.05 per hour. The FMAAA reimburses the City of Fresno for two hours per day
for each Recreation Coordinator. The City of Fresno picks up the remaining costs.
3. Glendale, CA - Population 194,973; The City of Glendale owns, oPerates and
maintains three senior centers. Senior programs are budgeted under the Parks,
Recreation & Community Services Department. Budget funding consists of County
funding for the meals programs, Federal CDBG funds, City General Funds and
grant monies. All capital improvements are funded with City General Funds or
grants.
4. Modesto, CA - Population 188,856; The City of Modesto owns, operates and
maintains one senior center. Senior Citizens & Specialty Services is a section of
the Parks, Recreation & Neighborhoods Department. The budget is $244,242; the
General Fund provides $210,442, program activities and facility rentals generate
$33,800 annually.
5. Ontario, CA - Population 158,007; The City of Ontario owns, operates and
maintains one senior center. Senior programs are budgeted under the Recreation
and Parks Department. Budget funding consists-of 90%-City General Funds
and10% from donations, facility rentals, bingo and grant monies. All capital
improvements are funded with City General Funds or grants.
6. Oxnard, CA - Population 170,358; The City'of Oxnard owns, operates and
maintains three senior centers and through an agreement with the Housing
Authority operates one satellite senior center. The Senior Services programs are
budgeted under the Parks and Recreation Department. The annual budget for
Oxnard senior services is approximately $540,000. The majority of the budget
$440,000 is funded with City General funds, $50,000 is Federal monies
administered through the State for the retired senior volunteer program, $11,000 is
contributed by the Housing Authority and the balance from grants and program
revenue generated by senior activities. All capital improvements are funded with
City General Funds or grants.
7. Riverside, CA - Population 255,166; The City of Riverside owns, operates and
maintains two senior centers. The Senior Programs are budgeted under the Parks
and Recreation Department. The annual budget is approximately $750,000 of
which 80% is funded by the Office on Aging for the senior nutrition program,
Federal CDBG funds, grants and interagency agreements. Computer training is
taught to seniors through an agreement with the school district. The remaining 20%
of the budget is funded with City General Funds and program income.
'2'
S :'~Damcl~Scnior~c~ices
State o! California Business, Transportation and Housing Agency
Memorandum
To: Mr. BART BOHN Dale: June 7, 2000 '
District Director
Caltrans' District 6 i~ile:
From: DEPARTMENT OF TRANSPORTATION
CIVIL RIGHTS PROGRAM - MS 79
Subject-: Caltrans Small Business Council
Please accept this memorandum as a. formal introduction for-Mr. Marvin Dean of
KMCA (Kern Minority Contractors Association~ tepresenti.ng .the Underutilization
Committee of the Caltrans Small Business Council.
The Underutilization Committee's mandate is to research underutilized groups
in Caltrans contracts and work to increase DBE contracting .opportUnities;
The Committee'S goal is to establish Working Groups composed of a
representative from Caltrans Headquarters Civil Rights Program, Caltrans
District ConS{ruction, Caltrans Co'ntracts, a community advocate member:~f
the Committee, and a representative of the local AGC office, The goal is for
this 'Working Group to cooperatively increase [TBE .contracting .opportunities in
Caltrans contracts.
I encourage you to support this yery important endeavor.
Depb'ty Director ~/
Civil Rights Program '.
cc: Mr. Marvin Dean
P. E~/04
AGENDA
CALTRANS SMALL BUSlNE~ COUNCIL
Friday, July 27, ~O01
Caltrans Farmers Market III Building
1727 - 30th Street
Main Conference Room, First Floor
· Sacramento, California 95816
10:00 a.m, to 12:00 p.m.
*NOTE: PLEASE·TURN OFF P GE S AND cELL PHONES OR
PLACE ON VIBRATF.
I, Call.to Order,and introdu~tions Algerine McCray, Deputy Director
II. Approval of the June 15, 2001 minutes
III. Certifying Small Business/Cai Code of Regs · Patrieia Jones, Dept. of General
Services
IV. COMMII'rEE REPORTS
Commodities
Construction Zeke Patten, Chair
Legislative ~ Rafael 'Martin, Chair
Professional Servioes Paul Guerrero, Chair
-.... UnclerUtiliZation - Eddy I.au, Chair
Recruitment Marvin Dean, Chair ~ ·
Karen Bobo, Chair
V. Input fr°m COmmUnity -
VI .... Announcements.
Next meeting is August 17, 2001
VII. Other Business
VIII. ' Adjournment
Revised August 30, 1999
CALT-RANS
SMALL BUSINESS COUNCIL
MISSION STATEMENT
The Caltrans Small Business Council (CSBC)is established to promote the effective
implementation of federal and State requirements, .assist with issues 'relating to
participation in Caltrans contracts, and provide a forum in which interested small
businesses can offer suggestions from their unique perspective and in an advisory
capacity on Caltrans practices and procedures. The Small Business Council will focus
specificallyon. Caltrans contractS.·The. Councit will.meet-ia. Sacramento. on a monthly
basis. It is anticipated that Council meetings will be held in District Offic&s on an as-
needed basis. The Council will be composed of representatives from business trade '
associations, Caltrans, construction industry representatives, representatives from.the
Federal Highway AdministratiOn, and representatives from the Califomia Legislature.. .