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Home My WebLink About02/05/2001 BAKERSFIELD Mike Maggard, Chair Harold Hanson Mark Salvaggio Staff: ~Darnell Haynes SPECIAL MEETING BUDGET AND FINANCE ~COMMI'R'EE of the City Council- City of Bakersfield Monday, February 5, 2001 4:00 p.m. City Manager's Conference Room, Suite 201 Second'FIoor - City Hall, 1501 Truxtun Avenue, Bakersfield, CA AG.ENDA 1. ROLL CALL 2. ADOPT AUGUST 11,2000 AGENDA SUMMARY .REPORT 3. PUBLIC STATEMENTS 4. NEW !BUSINESS A. Discussion and Committee recommendation regarding Bakersfield Senior Housing Project on Fourth Street and CDBG/HOME/Housing Set Aside financial assistance - Kunz B. Discussion and Committee recommendation regarding amendment to KCEOC Agreement/CDBG Action Plan - Kunz C. Discussion and Committee recommendation regarding request received from Bethany Services for the City to consider transferring ownership of the Bakersfield Homeless Center, 1600 E. Truxtun Avenue, to Bethany Services D. Discussion and Committee recommendation regarding request from Bruce Dolgin for Conditional Use-Permit exception to operate Sno-Shack shaved ice kiosks in C-1 zones E. Committee discussion and adoption of 2001 Budget and. Finance Committee meeting schedule F. Committee review and recommendation on financial and audit reports: 1. Comprehensive Annual Financial Report (CAFR) 2. Centennial Garden-Financial Statements 3. Independent Auditor's Report.on Compliance with Contractual Requirements relative to the Bakersfield Subregional Wastewater Management Plan for FY ended June 30, 2000. 4. 1999-00 Transportation.Development Act Funds Financial Statements 5. ADJOURNMENT S:~Damell~2001 BFCommittee~bf01 feb05agen.wpd Alan Tandy,-Ci~y' I(~ager Mike Maggard Staff: Darnell Haynes Mark Salvaggio AGENDA SUM MARY REPORT BUDGET AND FINANCE COMMITTEE Friday, August 11, 2000 12:00 noon City Manager's Conference Room 1. ROLL CALL Call to Order at 12:10 p.m. Present: Councilmembers Patricia J. DeMond, Chair; and Mark Salvaggio Absent: Councilmember Mike Maggard 2. ADOPT JULY 17, 2000 AGENDA SUMMARY REPORT Adopted as submitted. 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. Discussion and Committee recommendation regarding request from the Bakersfield Museum of Art for assistance with grounds .maintenance of expanded museum facility. At the last Budget and Finance Committee meeting, the Committee directed staff to meet with the museum director to identify a project in the new building expansion with which the City could assist. Mr. Meyer identified the sculpture garden, which is to be in the patio area. The estimated cost will not exceed $30,000. The Committee approved (with Committee member Maggard absent) a one-time contribution of $30,000 for the sculpture garden project. A recommendation is to be forwarded to the full Council with an appropriate administrative report for the August 30th Council agenda. 6. NEW BUSINESS A. Discussion and recommendation regarding replacement of funding for street lighting with Community Development Block Grant (CDBG) funds. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE IDI AFT Friday, August 11, 2000 Page -2- This item Was referred back to the Committee by Vice Mayor Carson. At the previous meeting on July 17, 2000, as in the past when CDBG funds become available throughout the budget year all projects not approved for funding dudng that funding cycle are reevaluated. The southeast street lighting project was not one of the original applicants requesting CDBG funding during the current cycle. During 'the Committee's discussion of the general subject concerning street lighting in the southeast, which currently is funded from Redevelopment tax increment, the Old Town Kern street lighting project was also reviewed. Staff reported that there are street lighting monies budgeted for an adjacent area that have not been used, and it might be possible to exPand that project to include the area near Union cemetery. Staff was directed to discuss this issue further with the Southeast Project Area Committee B. Committee discussion regarding scheduling meetings for the-rest of 2000. This item was deferred until the full Committee is present to compare calendars and agree on open dates. 7. COMMITTEE COMM'ENT~ 8. 'ADJOURNMENT The meeting adjourned at 12:43 p.m. Staff present: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City Manager Alan Chdstensen; Assistant City Manager John W. Stinson, Assistant to the City Manager Darnell .Haynes; Community Development Coordinator George Genzales; Public Works Director Raul Rojas; and General Services Superintendent Brad Underwood. Others present: Chades Meyer and Cynthia tcardo, Bakersfield Museum of Art; and James Burger, the Bakersfield Californian. cc: Honorable Mayor and City Council DV~-I:jp S:lDarnell/Bud and Firflbf00aug 11 summary.wpd B A K E R S F I E L D Economic and Community Development Department MEMORANDUM February 1, 2001 TO: Donna Kunz, Economic Development Director FROM: George Gonzales, unity Development Coordinator SUBJECT: Councilmember Carson's referral of the Bakersfield Senior Center (BSC) request for financial assistance to the Budget and Finance Committee. The Bakersfield Senior Center (BSC) and the Retirement Housing Foundation (Long Beach) co,applicants for a HUD Section 202 grant award of $6.75 million, have submitted a letter requesting financial-assistance for their proposed 80-unit Iow-income senior project at 624 4th Street. The original Section 202 application submitted to HUD identified the 1.79 acre site adjacent to the existing Senior Center. The applicant's now are requesting financial assistance totaling $560,000 to develop 6 parcels north of the existing site and shift the project site approximately 110 feet north. This shift will allow the existing recreation building and parking lot to remain. The 6 parcels are developed with three single-family residences, a triplex, and a four-plex. The proposed assistance will be used for acquisition, relocation of 10 tenants, and the demolition of 7 buildings located on the properties. Staff has met with the applicants and have indicated that HOME funds are not currently available, however alternate funding sources will be reviewed and coordinated with BSC. dlk:P:\GEORGE\bakersficld senior center fin assist memo. WPD , January 17, 2001 Mr. Alan Tandy, City Manager City of Bakersfield 1501 Tmxtun Avenue Bakersfield, California 93301 RE: Senior Housing Center 530 4a Street Bakersfield, CA Dear Mr. Tandy: ..... !. The Bakersfield Senior Center in conjunction .with The Bakersfield Senior'Center ".-' :: Housing Project respectfully request financial assistance from the City of Bakersfield inorder to acquire the additional land necessary to develop 80 low income units of · .. housing for the elderly. More specifically, the complex will consist of 79 one bedroom units and 1 two bedroom unit to accommodate the on site manager. Other improvements of the complex include a recreation area, laundry 'facility, special visiting rooms and a secure green garden area, as well as, off street parld'ng to accommodate residents, visitors and employees. The award notification to the Retirement Housing Foundation (Long Beach), co- applicants ofthis apprOVed project, stated that $6,770, 500 has been reserved for this project along with a Project Rental Assistance Contract and budget authority of $272,900 and $1,364,500.respectively. Formal acceptance of the notification constitutes a certification and agreement by .the Sponsor that: I. The grant Cannot be assigned,.sold, conveyed or otherwise transferred. 2. The fund reservation will be cancelled if the project does not proceed according to a precise schedule. · .. ,. 3. The funds are subject to cancellation if(HUD) becomes aware of pre-existing conflict of interest. 4. Site control must be evident at every contractual.stage of this agreement, although some exceptions may occur during the initial stages. 5. The Section 202 capital advance and project rental assistance funds reserved for the project identified herein may not be used for any other purpose and in Connection with any other project except as stated in .the contract. The proposed siteis located on "R" Street, 4th and 50' Street, in Bakersfield. The amount of property, which .is the subject of this acquisition proposaF- including the vacated portion of 5th Street - is approximately 1.40 acres. When this 1.40 acres is added to the existing site of 1.79 acres, the total properly available for development will be 3. ! 9 acres. If the portion of the property, which now comprises the recreation building and adjoining .. parking lot, remains and continues to be used for the same purpose, the available land lef~ for development will be approximately 2.69 acres. The total amount of funds necessary to accomplish this acquisition is $560,182100. Each cost that comprises this amount has been indentified on the accompanying matrix. Also, the accompanying booklet serves as reference and further explains the individual cost that has been identified. On behalf of the Bakersfield Senior Center's Board of Directors, I respectfully hope that the City staff finds it in their discretion to recommend approval of this request as soon as possible, as time is of the essence. Respeclfully Submitted, .' Lynn Edwards Director of Bakersfield Senior Center ........ i ~00 345 7334 SCALE fit 1/10 OF ~ INCH... ' · . VILLA BLI~ E' LOWELL ADDITION-LOWELL Park TRACT ~oo, ~./-/ ~.z~C) .. e-40 BLt~ 3 UNION ADDITION 6TI~ I "'. : -'u ~ ..~ '~ ~ - I O' ~ I ' ~' z3 uNION '~ ~D~ION ~ ~T~ BAKERSFIELD HOMELESS CENTER A WAY UP BAKERSFIELD HOMELESS CENTER Operated by December 12, 2000 BETHANY SERVICES 1600 East Truxtun Ave. Bakersfield, CA 93305 Mr. Alan Christensen Admin. (661) 322-9t99 Fax: (661) 322-9203 Assistant City Manager - City of Bakersfield c/o Community Development Department 5!5 Truxtun A~/enue BOard of Directore Bakersfield, CA 93301 Jeffrey Warren Chai,~e,,o, Re: Bakersfield Homeless Center Kathleen Irvine wcoChai,~e,,o, Dear Mr. Christensen: David Kilpatrick s..:,.r.~/ Please accept this letter as a request for the City of Bakersfield to Robert Ross convey ownership of the Bakersfield Homeless Center, located at 1600 Treasurer East Truxtun Aven.ue, to Bethany Services, a California non-profit Cindy Hurley corporation. '~ Bruce Keith Darlene Mohlke Under the terms of a Lease Agreement dated April 4, 1990, Bethany Barry Rosenfeld Victor Ryberg Services has leased the 'Homeless Center from the City of Bakersfield Jesse Snyder for the purpose of providing food, emergency shelter, and transitional Joanie Weber services to the homeless community in the Greater Bakersfield area. Jay Williams The Bakersfield Homeless Center is operated by Bethany Services, vines Zaragoza which pays the City of Bakersfield an annual rental of $1.00 for the use of the facility. Louis B. Gill, Jr. ,, ,,,~,,u,, ,, ,'~, ass;stance of thc City of B~,,e,.,fi~,~, a,,,, financial support received from other public and private sources, during the past ten years Bethany Services has provided more than 432,101 clean, warm beds and served more than 1,373,092 hot, nourishing meals. We have also placed 1,778 people in jobs,, located permanent housing for more than 1,106 families and individuals and provided medical, dental, counseling services to our clients. Bethany Services is in the midst of transition as we attempt to deal with the changing face of homelessness. We are experiencing a greater percentage of clients who are single women with children and families. In order to provide adequate services to these.clients we must change the focus of our programs, increase our collaborative efforts with other service providers, and modify and expand our facility A United Way Agency Bethany Services meets the basic needs of the homeless and the poor and seeks to equip them for a self-sufficient and productive future to provide larger segregated areas for the women and children seeking our assistance. Part of this expansion involves the recent acquisition of the property lying adjacent to and east of the existing campus upon which Bethany Services will construct family support facilities. We believe we are evolving into a new and more efficient organization. With this "coming of age", Bethany Services considers it advantageous to our clients to consolidate our physical assets. For this reason, we respectfully ask that you consider transferring the subject property to Bethany Services for a minimal cost. As for escrow costs and other expenses associated with this transfer of ownership, we propose that Bethany Services and the City of Bakersfield share these nominal transaction fees. Please contact me should you have any questions concerning this request or should you require additional information. We look forward to receiving your favorable response to this request. Respectfully, Jeffrey H. Warren .?' Chairperson ;~A_/a~TChri{t;nsen: B~kersfietd HomeJess c~hter ........ Page 1-t From: Vince Zaragoza To: Alan Christensen; George Gonzales Date: Wed, Dec 20, 2000 3:57 PM Subject: Bakersfield Homeless Center 12-20 Alan and George, As you know, Bethany Services has requested in writing to Alan that the City consider conveying title of the Homeless Center to them in 2001 (at none or minimal cost). The 175 + bed City owned facility at 1600 E. Truxutn Ave. is about 1.7 acres and has over 17,000 sq.ft, with four buildings. About $1.7 million was spent in early 1992 to clean it up and develop it. Mike Burger (MAI), our annual contract appraiser, is available to do a commercial as-is (non-narrative) appraisal for determining fair marke value. Cost of appraisal is about $1500 to $2000~ He is available to start next month. According to Janice, if we agree to do this, a simple purchase-sell agreement with council action should suffice. Also we will need a 65402 review. We can share in disposition costs (escrow, title, etc.) with Bethany. Since we do not have an Actin Plan project for this disposition, all costs will be admin .related. OR, we could set-up a disposition activity in the next FY Action Plan and put some CDBG funds in this line item to direct charge the disposition .expenses (say $3000). If we are OK with admin costs, Bethany is preferring we not wait until next FY. Please let me know by Jan. 3 if there is a preference otherwise I'll assume we can begin the appraisal next month. Thanks. Vince CC: Angle Offenburger; Don Anderson; Janice Scanlan;... BAKERSFIELD Economic and Community Development Department MEMORANDUM February 1, 2001 TO: Alan Tandy City Manager FROM: Donna Kunz Economic Development Director BY: Vince Zaragoza, Principal.Planner SUBJECT: Budget & Finance Committee Referral from Council Member Sue Benham on-Property Transfer Request from Bethany Services At the City Council meeting on January 31, 2001, a referral was made to the Budget and Finance Committee regarding the request from Bethany Services to convey ownership of the Bakersfield Homeless Center, located at 1600 E. Truxtun Avenue, to Bethany Services, a California non-profit ~corporation. Staff is providing the following information for the committee to consider in conjunction with the'request. As you are aware, Bethany has leased the City owned property from the City since 1990 (a copy of the lease is attached). We have attached a recent commercial appraisal for1600 E. Truxtun Avenue from Michael Burger, MAI. It is his professional opinion, using the valuation cost approach, that the use value of the property is $1,190,000. Additionally, the property has a pending .General Plan Consistency Finding (per State of California 65402 review requirements) before the Planning Commission on February 15~. This information will provide the Council a report as to the conformity of the proposed public land disposal with the City's adopted general plan. Should the committee recommend approval of the Bethany request, staff is prepared to develop a disposition agreement for Council action with certain covenants and conditions insuring the continued use of the property as a homeless facility. Please contact me if you have any questions concerning this matter. xc: p/vince/projects/homeless/budget&financerequest attachments ? .., .', , James Hap I es. Assessor-Recorder JASON ,- ~,-- Kern County icial Records Pages: 6 " DOCUMENT #';-t~'197124206 9/17/1997 - 8:ee:ee andRec°rdingfor the requestedbenefit of thebY III IIII IIIIIIillllrlllllllllll IIIIIIIIIIII Taxes... CITY OF BAKERSFIELD .ets?ta4aes= Other. TOTAL WHEN RECORDED MAIL TO: PAID . CITY OF BAKERSFIELD CITY CLERK Stat. Types: 1501 TRUXTUN AVENUE BAKERSFIELD 93301 AMENDMENT NO. 1 TO LEASE AGREEMENT NO. 90-81 AGREEMENT NO. 96-333, Approved December 4, 1996 CONTRACTOR: BETHANY SERVICES ORIGINAL AMENDMENT NO. I A~reement No."' TO LEASE AGREEMENT NO. 90-81 /,;:~roved DEC 0 4 1996 THIS AMENDMENT NO. 1 TO LEASE AGREEMENT 'NO. 90-81 is made and entered into on ~P-.JL.~-~.~ ~ ., 1996, by and between the CITY OF BAKERSFIELD, a municipal corporation and California charter city, hereinafter referred to as 'LESSOR" and BETHANY SERVICES, a California non-profit public- benefit corporation, hereinafter referred to as "LESSEE'. (~r,i 9ina] Ag~'eemen~. no~. reco~'ded) RECITALS WHEREAS, on April 4, 1990, LESSOR and LESSEE entered .into an agreement whereby LESSEE leased from LESSOR the premises as 1600 Truxtun Avenue in the City of Bakersfield; and WHEREAS, pursuant to the conditions of the lease, LESSEE was to operate a Homeless Center on .the premises; and WriER .EAS, the term of the lease agreement was ten (10) years with annual renewals thereafter not to exceed 49 years total; and WHEREAS, LESSEE has received an Emergency Housing and Assistance Program (EHAP) grant frc~m the state to expand the kitchen facilities of the Homeless Center; and '~ WHEREAS, the EHAP grant is administered by the State of California Department of Housing and Community Development (HCD); and WHEREAS, as a condition of the grant, LESSEE must establish that it will continue to .provide services as a homeless facility for at least five years beyond the life of the grant; and WHEREAS, HCD is not satisfied with the annual renewal option currently contained .in Lease Agreement 90-81 and has requested the LESSOR to amend the lease so that the initial ten year term does not expire until at least 2005; and WHEREAS, HCD has also requested that Lease Agreement 90-81 be amended to permit it to remedy any default .made by LESSEE that could possibly cause LESSOR to terminate the Agreement .prior to 2005. NOW, THEREFORE, LESSOR and LESSEE agree as follows: AMENC~,~ENT TO HOMELESS CENTER LEASE AGREEMENT 18, 1~ S:~DCD~GRS~'IOMELESS.AMD 1. .The first sentence of Section 2 of Lease Agreement 90-81 is amended to read as follows: "2. Term: The term of this lease is ten (10) years from December 4, 1996 unless sooner terminated as set forth herein.' The remainder of Section 2 is unchanged. 2. A second paragraph is added to Section 15 which reads as follows: "The California-Department of Housing and Community Development (HCD), or its assignees, may at its option, at any time before the rights of LESSEE under this Lease shall be.tel'minated as herein provided, pay any of the rents due hereunder or do any other act or thing required of LESSEE by the terms hereof, or do any act or thing that may be necessary and proper to be done by observance of the covenants and conditions'hereof or to prevent the termination hereof. All payments so made and all things .so done and .performed by HCD shall be as effective to prevent a termination of the rights of LESSEE hereunder or assignee of LESSEE as if the same would .have done and performed 'by LESSEE.' 3. All other sections of Lease Agreement 90-81 remain unchanged. IN WITNESS WHEREOF the parties hereto have caused this Amendment No. 1 to Lease Agreement-No. 90-81 to be executed, the day and year first hereinabove written. "LESSOR" "LESSEE" CITY OF BAKERSFIELD BETHANY SERVICES By: By: E~B 151~Ci~, Mayor RI APPROVE~..~AS TO CONTENt: j~: Executive-DirectOrBy: ~'~~~ Economic d ~ommunity De~l(~ment MIKE MAGGARD " .._--- , Chairman, Board of Directors By: . JOHN {=. WAGER, JR..~ Economic Development Director (MORE SIGNATURES ON FOL-LOWlNG .PAGE) $;~EI:)CD~.GRS~HOMELE$$.AMD Page 2 of 3 Pages APPROVED AS TO FORM: Office of the City Atto.rney /v/JAN I~,,E S-~ANLAN Deputy City Attorney COUNTERSIGNED: .//~~ J. KLIMKO / F,~ce Director . AMENDMENT TO ~ CENTER lEA,SE AGREEMENT $:~DCD~AGR$~J-IOMELESS.AMD Page 3 of 3 Pages .. .... ., CALIFORNIA ALL-PURPO', ACKNOWLEDGMENT !" .o. State of Cal i forni a County of Kern On August 21, 1997 before me, Nikki Sue $~okoe, Notary Public , DATE NAME. TITLE OF OFFICER - KG., 'J,~d~lE DOE, NOTARY PUBLIC' personally appearedBOb Price, John F. Wager, Jr., Janice Scanlan, GreBory Klimko, N~E(S) OF SIGNER(S) ~ personally known to me - OR - ~ proved to me on the basis of satisfacto~ evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and ac- knowledged to me that he/she/they executed the same i.n his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. . ~_...~ ~,m~ ~ S~ hand ~ i~d offic ~ ~?~ ~ co~ ~ I/y eal. OPTIONAL~/ Though the data below is not required by law, it may prove valuable to ~mons relying on ~e d~ument and could prevent fraudulent rea~achment of this fo~. CAPACI~ C~IMED BY SIGNE~ DESCRIPTION 0F A~ACHED DOCUMENT ~ INDIVIDUAL ~ {~~OFFICERs~unic1pal ~endmenL No. 1 ~o Lease Agreemen~ 90-81 wi~h BeLhan~ Services TITLE OR ~PE OF DOCUMENT ~(s) ~ PARTNER(S) ~ LIMI~D ~ GENE~L Three (3) ~ A~ORN~-IN-FACT NUMBER OF PAGES ~ TRUSTEE(S) ~ GUARDIA~CONSERVATOR ~ O~ER: Eit~ nf Ra~-~field December 4, 1996 e~p~ oyees DATE OF DOCUMENT SIGNER IS REPRESENTING: I~d~4EOFPERS(~(S)ORENTTI~f(IES) Mi ke Maggard, Ri chard Temple City o f Bake rs f i e 1 d SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSCX~IAT1ON * 8236 Remmet Ave., P.O. Box 7164 · Canoga Park, CA 91309-7184 CALIFORNIA ALL-PURPO .... ACKNOWLEDGMENT ~- No. 5g07 State of Cal i fornia County of Kern On August 21,-1997 before me, Nikki Sue Stokoe, Notary Public , DATE N.advlE. TFrLE OF OFFICER - E.G.. 'JANE DOE. NOTARY PUBLIC' personally appeared Mike Maqqard, Richard Temple NAME(S) OF SIGNER(S) [] personally known to me - OR - [] proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) J~/are subscribed to the within instrument and ac- knowledged to me that 15~/~/they executed the same in 13'~$/[ee:r/their authorized capacity(les), and that by ll~:~/be~'/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I~ Not OtY PulSe -- Colifomio~;~8.~ WITNES/'S1STY hen offici 'EI~I COUNI'Y dared alte. a OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT [] INDIVIDUAL [] CORPORATEOFFICER Amendment No. 1 to Lease Agreement Bethany-Services Chairman and 90-81 with City of Bakersfield Executive r)i r~ctnr Tm.E(S) TITLE OR TYPE OF DOCUMENT [] PARTNER(S) [] LIMITED [] GENERAL Three (3) [] ATI'ORNEY-IN-FACT [] TRUSTEE(S) NUMBER OF PAGES [] GUARDIAN/CONSERVATOR [] OTHER: December 4, 1996 DATE OF DOCUMENT SIGNER'ISREPRESEI~mNG: Bob Price, John F Water, Jr. NAME Of= PE~(S) OR Ekr~rTY(IES) ' ~ Bethany Se~v!¢es ,]anic~ .<;canl~n; Gregory Klimko SIGNER(S) OTHER THAN NAMED ABOVE NATIONAL NOTARY A~IATION · 8236 Remmet Ave., P.O. Box 7184 · Canoga Park, CA 91309-7184 C'A'LIF0 RNIA ~ CITY CLERK'S OFFICE EX-OFFICIO CLERK OF THE COUNCIL..'~ April 10, 1990 Bethany Service Center 407 Baker Street Bakersfield, CA 93305 Re: City Agreement No. 90-81 Gentlemen: -- Enclosed please iind one (1) fully.executed copy of City Agreement ~No. 90-81. This agreement was approved by the City of Bakersfield on April 4, 1990. If you h.ave any questions, please contact my office. Very truly yours, Ca-roi Williams, C1VIC/~ City Clerk CW/ig 4:exeedoc Enclosure 1601 TRUXTUN AVENUE · BAKERSFIELD, CALIFORNIA 93301 · {805} 326.376'/ THIS LEASE AGREEMENT is h6~eby made and entered into on AP~ ~ ~0 , by and between the CITY OF BAKERSFIE-LD, a Municipal C6~poration, hereinafter referred to as the "LESSOR" and BETHANY SERVICE CENTER, a California non-profit Public Benefit Corporation, hereinafter referred to as the "LESSEE". RECITALS WHEREAS, the LESSOR is the owner of that certain real property located at 1600 East Truxtun Avenue, in Bakersfield, California, and all buildings, structures and fixtures thereon, which real property is more particularly dePicted on the map · attached hereto as Exhibit "A" (excluding areas marked by diagonal lines) and by this reference incorporated herein and is hereafter referred to as the "Homeless Center"; and WHEREAS~ the LESSOR utilized Community Development Block Grant Funds-to acquire and improve the Homeless Center and is committed by conditions attached to such funding to utilize the Homeless center for p~ograms for homeless persons; and WHEREAS, the LESSEE was organized in 1985, as a non- profit public benefit corporation, incorporated under the laws of the State of California and organized and operated for charitable purposes, under section 501 (c)(3) of the Internal Revenue Code, for the purpose of providing emergency overnight shelter and other services for the homeless, poor and indigent persons in the Greater Bakersfield area; and WHEREAS, the LESSOR desires the LESSEE to provide day- to-day operation of the Homeless Center and overnight shelter at the Homeless Center to homeless, poor and indigent persons; and WHEREAS, the LESSEE desires to provide a safe and comfortable setting in whiCh homeless persons may obtain access to services and overnight shelter, subject to funding limitations and availability of independently provided services; and WHEREAS, LESSEE represents it is qualified to assume the responsibility for such operation.and the objectives and purposes of the LESSEE are consistent with the public interests; and WHEREAS,. the LESSOR and LESSEE desire various services be available at the Homeless Center and that those .services may be provided by the LESSEE., or other individuals, business entities or organizations. WHEREAS, remediation of hazardous substances continues upon the Homeless Center and LESSEE shall take no action inconsistent with said mitigation efforts. NOW THEREFORE, based upon mutual promises, covenants, and warranties contained herein, LESSOR and LESSEE agree as follows: 1. Lease: LESSOR does hereby lease, demise and let unto the LESSEE, and the LESSEE does hereby take, lease and hire for its exclusive use from the LESSOR that certain real property and all buildings, structures., equipment and improvements thereon (excluding equipment owned and provided by the LESSEE) that property more particularly depicted in Exhibit "A", referred to herein as "Homeless Center". LESSOR represents and warrants that the premises, facility ~nd its' component .parts are in good condition and workin~ order on the effective dat-e of this Lease. 2. Ten: The term of this lease is ten {10) years from the date of possession by LESSEE unless sooner terminated as set forth herein. Thereafter, this lease shall renew annually on the anniversary date of its effective'date, for one year terms unless Sooner terminated as set forth herein, or unless notice of non- renewal is served by-l.either party upon the other not less than ninety [90) days prior to the annual anniversary date.; however, in no event shall this lease renew and'extend beyond 49 years from its execution. Remediation of hazardous materials continues at the Homeless Center site and may delay the construction of improvements plus delivery of the site. LESSEE agrees to wait until the site is prepared before implementing the terms of this lease. LESSEE may terminate this lease should LESSOR fail to deliver the site prior to September 30, 1990. 3. Rent: LESSEE agrees to pay to the LESSOR the sum of One Dollar ($1.00) per year as rent, payable in advance for the entire term of this lease. 4. Use of ~omeless Center: The Homeless Center is to be used as a homeless facility. Both parties agree to restrict its use .to such purpose and not 4o use or permit the use of the premises for any other purposes without, first obtaining the consent in writing of the other party. LESSEE shall not utilize nor permit any other person .or entity to utilize the Homeless Center for religious or other' purpose proscribed by applicable' federal regulations contained in Exhibit "B", attached hereto and incorporated herein by reference. The remediation of hazardous materials continues on the Homeless Center site, and the LESSEE shall take no action, or permit others to take any action., inconsistent with said remediation, efforts. 5. Services to be Provided: At a minimum, LESSEE shall provide those services set forth in Exhibit "C", which is incorporated herein by reference. 6. Fund Raising: Insofar as funds are provided by the City Council to fund the Economic and Community Development Departments' Annual Budgets, for the first five (5) years of this Agreement LESSOR agrees to provide a minimum of forty (40) hours of staff assistance to LESSEE f.or training and technical assistance to LESSEE to identify and write grants and to improve fund raising skills. Recognizing the importance of the Homeless Center to the community, both LESSOR and LESSEE further agree to cooperate-in securing federal, state and private funds and grants, as they become available, for the operation and repair or replacement of major building .systems of the Homeless Center. LESSOR and LESSEE agree to mutually provide technical in-kind assistance ~in the process of securing those funds and grants. 7. Payment of Utilities: LESSEE shall pay for all utilities furnished to the Homeless Center for the term of this lease, including, but not limited .to, electricity, gas, water, sewer, telephone service, rubbish pickup and all services associated with the facilities. 8. Maintenance: If at any time a major building system (including iroof, walls, heating and air-conditioning equipment, plumbing and electrical equipment) fails or its repair is cost prohibitive, LESSOR shall diligently pursue identification of funds, including Community Development-Block Grand Funds, for the replacement of the system. LESSEE agrees, at its own cost and expense, to keep in good condition and repair and maintain all improvements and equipment installed by LESSEE, all exterior glass and paint of the Homeless Center, all interior improvements, walks, ceiling, flooring, and walls. LESSEE expressly waives all right to make repairs at LESSOR'S expense under Section 1942 of the Civil Code, and all rights provided in Section 1941 of the Civil Code or any subsequent provision covering the same or similar matters. 9. Fixtures and Furnishings: All improvements and fixtures on the real property as of the date LESSEE takes possession pu-rsuant to this lease shall upon expiration or termination of this lease be turned over to the LESSOR in the same or better condition except for normal wear and tear. All improvements, fixtures, furniture, equipment, and personal property in or upon said property, provided by LESSEE, shall be the property of LESSEE and shall remain the property of LESSEE upon expiration or termination of this Lease, except for such property not removed for thirty (30) days after turning over possession of the Homeless Center. Such property shall be deemed abandoned and shall'become the property of LESSOR. Property such as fixtures or installed equipment which, when removed cause damage, must either remain or, -- 3 -- if removed, all damaqe resulting from such removal must be repaired to satisfaction of LESSOR. 10. Consent for and Title.to Improvements: LESSEE shall not improve or alter the premises in any manner without the prior written consent of LESSOR. Such consent from LESSOR shall not be unreasonably withheld. 'LESSEE shall, before- making any. improvements or alterations, submit plans and designs to LESSOR for its written approval prior to submission for building permits. If the plans and designs are not approved, such improvements or alterations shall be made only with such changes as may be required by LESSOR. All improvements and fixtures shall be of comparable quality. All.improvements or .alterations erected or made on the premises shall, on expiration of sooner termination of this Lease, belong to LESSOR without compensation to LESSEE, where such removal will damage or otherwise reduce the value of the premises. 11. LESSOR's Entry for Inspection: LESSOR reserves the right to enter on the premises at reasonable times to inspect them and to ensure the performance of the terms of this Agreement. All improvements or alterations erected or made on the premises which significantly impact the operation of the facility shall be made only with the written consent of LESSEE. Such consent shall not be unreasonably withheld. 12. Nonl£abi~ity of LESSOR for Damages; Indemnity: LESSEE shall indemnify, defend, and hold harmless the LESSOR, its -Council, officers and employees against any and all liability, claims, actions, causes of action or demands whatsoever against them, or any of them, for injury to or death of persons, or damage to property arising out of, connected with, or caused by the acts or omissions of LESSEE, LESSEE's employees, agents or independently contracted individuals or companies in the performance of the terms and provisions of the Agreement. 13. LESSEE to Carry Insurance: (a) LESSEE to obtain liability insurance. At all times during the term of this Agreement, LESSEE shall maintain a single limit broad form commercial general liability insurance policy in an amount of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence with combined liability for personal injury and property damage with a reliable insurance carrier authorized to do business in the State of California. Written notice of cancellation, non-renewal, or coverage reduction of said insurance shall be given to the LESSOR by LESSEE within 10 days after notice to LESSEE. LESSEE shall provide to the LESSOR proof of insurance and endorsements and certificates of insurance within twenty (20) days after possession. - 4 - · (b) T~SSR~ to obta~n fire. insurance: All improvements located on or appurtenant to the leased premises shall be kept insured against loss or damage by fire and other such risks as are now included in extended coverage endorsements and common use for commercial structures, including vandalism and malicious mischief. As to the structure and property owned by LESSOR, LESSOR shall be designated as payee under such policy. LESSEE shall be payee as to all other property. The amount of such insurance shall be sufficient to prevent either LESSOR or LESSEE from becoming a co-insurer under the provisions of the policies, but in no event · shall the amount be less than 90% of the then actual replacement costs excluding cost of replacing excavations and foundations but without deduction or depreciation. ' (c) Automobile insurance: During the term of this Lease agreement, LESSEE shall maintain automobile liability insurance, providing coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits-of not less the ONE MILLION DOLLARS ($1,000,000) per occurrence. Such automobile policy shall provide coverage, for owned, non-owned, and hired automobiles. {d) Workers' Compensation insurance: LESSEE shall maintain in force during the term of this Lease Agreement, Worker's Compensation insurance with statutory limits, and employers' liability insurance'.-with limits of not less than ONE MILLION DOLLARS ($1,000,000) per accident. The Workers' Compensation policy shall contain a. waiver of subrogation endorsement in favor of the LESSOR. {e) T.RSSOR named as ad~itional insur.ed: LESSEE agrees to identify L~SSO~ and LESSOR's Councilmembers, Officers, and agents as additional ~nsureds on all insurance polices required by the Agreement. 14. Mechanic's Liens: LESSEE shall not suffer or permit to be enforced against the Homeless Center or LESSOR, any mechanic's, materialmen's, contractors-, or subcontractors' liens " arising from any claim growing out of the work of any construction, repair, restoration, replacement, or improvement, or any other claim or demand whatsoever that may arise. LESSEE shall pay or cause to be paid all such liens, claims, or demands caused by LESSEE before any action is brought to enforce the same against the Homeless Center. LESSEE agrees to indemnify and hold LESSOR and said Homeless Center free and harmless from all liability for any and all such liens, claims, and demands together with reasonable attorney's fees and all costs and expenses in connection with any such action. - 5 - If LESSEE fails to discharge such lien or furnish a bond against the foreclosure of such lien, LESSOR may,' but is not obligated to, discharge the same or take such other action as LESSOR deems necessary to prevent a judgment of foreclosure upon said lien from being executed against'the Homeless Center, and all cost and expense, including reasonable attorneys fees incurr.ed by LESSOR, shall be paid by LESSEE within thirty (30) days after demand, and if unpaid, may be treated by LESSOR as a material breach of this lease enabling LESSOR, as its option, to terminate this lease. 15. LESSOR's Protective Provision: Ia the event LESSEE shall fail to pay and discharge or cause to be paid and discharged, when due and payable, any tax, assessment, utility or other charge incurred by LESSEE upon or in connection with the Homeless Center, or any lien or claim for damages arising out of the .construction, repair, restoration, replacement,' maintenance, and use of the Homeless Center and its improvements, or any judgment on any contested lien or claim or any insurance premium or expense in connection with the Homeless Center incurred by LESSEE, and if LESSEE, after thirty (30) days written notice from LESSOR to do so, shall fail to pay and discharge the same, then LESSOR may, at is option, pay any such tax, assessment, premium, expense, lien, claim, cha-rge, or demand, or settle or discharge any action or judgment covering these items, and all costs, expenses and other sums~incurred or ~aid by LESSOR in connection with any of the foregoing items shall be paid by LESSEE to LESSOR upon demand. Failure to so pay upon demand shall constitute a material breach of this lease by LESSEE enabling LESSOR, at its option, to terminate this lease. 16. LESSEE's Assignment, Sublease or License for Occupation by Other Persons: LESSEE agrees not to assign or sublease the Homeless Center or any part thereof, or any right or privilege connected therewith, or to allow any other service provider, except LESSEE's agents and employees, to occupy the Homeless Center or any part thereof, without first obtaining LESSOR's written consent. LESSEE shall supply all sublessees and others providing service on the premises with a complete copy of this agreement. This agreement shall be incorporated by reference into all subleases and its terms accepted in writing by all other providers. LESSEE shall make available to LESSOR for inspection, upon request, each executed' sublease and provider agreement upon execution. LESSEE shall ensure that the LESSOR, and LESSOR's COuncil members, officers, and agents be named as additional insureds on all insurance policies maintained by subcontractors and assignees which require LESSEE being named as an additional insured. One consent by LESSOR shall not be construed as a consent to a subsequent assignment, sublease or license to occupy. Any such assignment, sublease or license to occupy given by LESSEE without LESSOR's consent shall be void, and shall terminate the -- 6 -- lease at LESSOR's option. LESSEE's inter, est in this lease is not assignable by operation of law, nor is any assignment of his interest in this lease, without LESSOR's written consent. LESSOR understands that the purpose of LESSEE's operation is to provide services to the homeless and LESSOR shall not unreasonably withhold consent to sublease portions of said premises to service organizations so long as sublessees agree and do comply with all terms of this agreement, including but not limited to the insurance clauses, the terms of the sublease, and all laws. 17. Lease Breached byLESSEE's Receivership, Assignm.nt for Benefit of Creditors, InsolVency or Bankruptcy: Appointment of a receiver to take possessiOn of LESSEE'.s assets' (exCept a receiver appointed at 'LESSOR's request), LESSEE's general assignment for benefit of creditors, or LESSEE.'s insolvency or taking or suffering action under the Bankruptcy Act is a breach of this lease, unless any receiver or bankruptcy is removed within ninety (90) days. 18. Voluntary Surrender: The voluntary surrender of this Lease Agreement by LESSEE, or a mutual cancellation of this Lease Agreement,. shall not operate as a merger, and shall,.at the option of LESSOR, terminate all or any existing subleases or subtenancies or .may, at the option of LESSOR, operate as an assignment to LESSO~_ of'any or all such subleases or subtenancies. 19~ Holding Over: Any holding over or continuation by LESSEE after the expiration of the term of this Lease Agreement shall be considered a material breach unless written approval for such holding over is.given by LESSOR. 20. Waiver of Default: The failure of either party to enforce against the other any provision of this Lease Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time, and shall not serve to vary the terms of this Agreement. 21. Termination' .of Lease by LESSOR: This Lease Agreement may be terminated at any'time by the LESSOR upon ninety (90) days advance written notice to LESSEE should, and only if, the LESSEE violates any term hereof or in the event any of the following occurs: Should t-he Homeless Center ever cease to be used for. the purpose specified in this agreement .or be used contraryto conditions specified in.the grant by which funds for the Homeless Center were obtained by the LESSOR. Prior to termination of such lease, the LESSOR shall provide LESSEE written notice of any violations upon which the termination is based and shall, specify a reasonable time, not to exceed sixty (60) days, within which LESSEE shall cure or correct the conditions constituting the violations. The failure of LESSOR to elect to give notice of the termination in response to a violation of a term shall .not be deemed a waiver of the rights to so elect as to any subsequent violation. 22. Termination of Lease by LESSEE: This Lease Agreement may be terminated, at any time, by the LESSEE upon ninety (90) days advance written notice to LESSOR. Should, and only if, the LESSOR violates any term hereof or in the event any of the '. following occurs: Should LESSEE fail to have funding sUfficient to sustain or continue the operation of the Homeless Center, within the discretion of the LESSEE. Prior to termination of. such Lease, the LESSEE shall provide LESSOR written notice of any violations upon which the termination is based'and shall specify a reasonable time, not to exceed sixty (.60) days, within which LESSOR shall cure or correct the conditions constituting the violations. The failure of the LESSEE to elect to give notice of the termination in response to a violation of the term shall not be deemed a waiver of the rights to so elect as to any subsequent violation. LESSEE hereby agrees to assist and cooperate with the LESSOR in arranging. for a subsequent LESSEE should the LESSEE terminate said lease agreement. 23. Compliance with the Law: In operating the Homeless Center, LESSEE agrees to abide by all applicable federal, state, and local laws and health and safety regulations including but not limited to those attached as Exhibit "D" and incorporated herein by reference. ~. 24. Notices: Any notice required or permitted in this agreement shall be deemed given when actually delivered to the other party or after deposit of said-Notice in the United States Mail by First-Class Mail, postage prepaid and addressed as follows: City: (LESSOR) City Manager 1501 Truxtun Avenue Bakersfield, California 93301 (805) 326-3751 Corporation: (~ESSEE) Bethany Service Center 407 Baker Street Bakersfield, California 93305 (.805) 324-4190 Changes in the address of LESSEE or LESSOR shall be made and become effective upon ten (10) days written notice to the other party. - 8 - 25. Compliance with OMB Procedures: LESSEE shall comply with the Office of Management and Budget's Circular, A-102, on Administrative Requirements for grants to sub-recipients such as LESSEE. A copy of that circular is attached hereto Exhibit "E" and incorporated herein by reference as if fully set forth. 26. Merger and Modifications: This contract sets f6rth the entire agreement between the parties and supersedes all other oral or written provisions. This contract may be modified only in a writing approved by the City Council and signed by all the parties. 27. Forum: Any. lawsuit pertaining to any matter arising under, or growing out of, this contract shall be instituted in Kern County, California. 28. Time: Time is of the essence in this Lease Agreement. 29. Binding Effect: The-rights and obligations of this Lease Agreement shall inure to the benefit of, and be binding upon, the parties to the contract and their heirs, administrators, executors, personal representative, successors and assigns. 30. Attorne¥'.s Fees: In any action to enforce the terms of this Lease Agreement, the prevailing party shall be entitled to recover its attorney's fees and court costs and other non- reimbursable litigation expenses, such as expert witness fees and investigation expenses. 31. Corporate Authority: Each individual executing this Agreement represents, and warrants that he/she is duly authorized to execute and deliver this Lease Agreement on behalf of the corporation or organization, if any, named herein and that this Agreement is binding upon said corporation or organization in accordance with its terms. 32. 'Execution: This Lease Agreement is effective upon LESSEE's possession of.the Homeless Center. It is the product of 'negotiation and therefore shall not be construed against any party. 33. Equal Employment Provisions: During theterm of this Lease Agreement, LESSEE shall not discriminate against any employee or applicant for employment because of race, creed,.color, sex, national origin or handicap. LESSEE will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, sex or national origin. 34. Exhibits: In the event of a conflict between the terms, conditions or operations set forth herein and those in exhibits attached hereto, the terms, conditions or specifications set forth herein shall prevail. 35. Tax Number: LESSEE's Federal Tax I.D. Number is 95-28'58936. LESSEE is a. non-profit organization. 36. Hazardous Materials: LESSEE shall give immediate written notice to LESSOR of any release of a hazardous substance known by LESSEE to have been released. Should LESSEE be responsible for a release of a .hazardous substance upon the premises LESSEE shall properly investigate, test, and ,fully mitigate (clean up) such release. All remedial actions must be reasonably acceptable to LESSOR and approved in writing by LESSOR. LESSEE shall fully indemnify LESSOR against all damages from releases of hazardous substances caused by LESSEE upon the premises and shall be solely and totally responsible for all remedial actions required to fully mitigate such release including all legal fees, consultants fees, clean up costs, court costs, fines, and all other fees, costs, or fines in any way incurred or arising from the release of hazardous substances upon the premises. LESSEE shall not be responsible for any hazardous substance which exists prior to the effective day of this lease. o0o IN.WITNESS W~RREOF, the parties hereto have caused this Lease Agreement to be executed, the day and year first hereinabove written ~ "LESSOR" APPROVED AS TO FORM: CITY OF B~KRSFIELD - CLA~RENCE E · ' MEDD'~RS :~" ' Mayor COUNTERSIGNED :' .~- :' "LESSEE" COUNTERSIGNED: BETHANY SERVICE CENTER Comunity Development Coordinator ~xecutive Director -DONALD BUTEYN, Oh-airman ' Board of Directors RMS/kef/meg Attachment Exhibit "A" & "B" BETHANY.K 3/23/90 · · . ',JlO.~}4~ ......... '.,... ...... .-. ,=-~-"-~=~=~j. ..... ~ .................................. ~ ...... ,., .-:--~.? .... ~ ~ · . ?--~.. ~..:..,. . "~' ~1=. ·" '" '.':,~ C !5 · .. .?. !.....:'. ~.~ -~ . . ....,......; : ..,¢..¢, %'..'\ ,,..,,.-' ~ ¢..¢~.:¢¢.....~., :'"'"""' \-:'i :: · :'. 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'-.~,~..,~, ;,..~'- '.% ~ .......¢""' ~..--"' .. ..... ~o.r.- · . _.'.~ ~ ~...-,~,~-~-' ~ · ,.., . ..... :;. ..... : · ,: ,..?----'?,,. ~....~- ............ :.::: :.7:.:...::.:::z: ......... .-. . ._-- .~...-.-'-, ~.;,~:I~ ..-.:~-::.:':t.~i:":.":::::':"':'' .... · .. .... ..~-.--""""' . ,M 5 ,~--" . ..~ .... :'. ...... , .... · · ~¢~ ~ '""%"----~":::~- .... -00 .......... :' ...~.~ .... \ ~ ~,,,,,~,,, .............. . ~.....~_.....-----'- ~,,,~ ..... -- . . ..:...: :. · ¢ . ........ ~ ~--' ~% .--..-. -.... .... ..... . ...... -.':: -.' ._ . ; EXHIBIT · norths .havegrant sufficientrecipient certifieSCDBG fundsthat .fait doespay underals° :equired~ $70.201 [i).f°r certain relocation costs su~jeCtfor:, tO the provisions' o'f Subpart G. the assessmenL~ in be'half of all of the {fl A4'eons o/cang, in~ out e//sible Iow and moderate income owner- act/rifles. {1} Activities eligible for assistance under this subpat-c and occupant persons. Funds collected . {t} Act/rites eligible under this {2} Notwithstanding the provisions of through such special assessments are subpart, other than those authorized § $70.207. such other activities .as the '~ not program income, under § 570.204(a}. may.be undertaken. Secretary may determine to be [3} Public improvements not init/ally subject to'local law: assisted wi~ CDBGfundg. The payment [i} By the recipient through: consistent with the purposes of the of special assessments with CDBG funds [A}'lts employees, at , Urban Development Action Grant constitutes CDBC assistance to the, {B} Procurement contracts governecx program. public.improvemenL Therefore. CDBG by the requirements of 24 CFR 85.:36; or {j} Constitutionaiprobibition. In ' ' funds may be used to pay special {ii} Through agreements with accordance with First Amendment assessments provided: subrecipients, as de/'med at § 570.500(c]; Church/State Principles. as,a general {i} The Installation of the public or nde..CDBC assistance may not be used improvements was carried out ia, [iii) B'y one or more publk: agencies, for religious activities or provided comptianca with,reqtfirements including existing local public agencies, primarily religious entities for any applicable to' activities assisted under that am designated by the chief activities, includin8 secular activities. th3s part [ncluc[in8 environmental, executive Officer of the,recipient. The-following restrictions and citizen participation and Davis-Bacon [2} Activities made-eligible under limitations therefore apply to the use o1' requLrements: § 570.204{a} may only be tmdertaken by CDBC funds. (ii} The ,installation of the public subrecipients specified in that.section. [1} C'DBC~funds may not be used for improvement meets a criterion for. {g} Limitation on plannin~ and the 'acquisition of property or the national objectives in § 570.208(a}[1]. administrative costs.'No more than 20 construction or rehabilitation [including (b}. or {c}: and · percent o{ the sum of any grant plus' historic preservation and removal of [iii} The requirements.of program income received durin8 the architectural barriers} of structures to be § 570.200(c}[2}(ii} are reel program year {or the grant period fat used for religious purposes or which will grants under Subpart Fl shall be otherwise promote religious interests. Id} Consultant activities. ConsuJtirt8 e~cpended for planning and progrnm This ~]imltation includes the acquisition services are eligible for assistance under administrative costs, as defined in of property for ownership by primarily this part for professional assistance in § § 570.205 ,and 570.208 respectively, religious entities and the construction or program planning, development of Recipients of entiUement grants under rehabilitation {includin8 historic community development objectives, and Subpart D will be considered to be in preservation and removal of other general professional guidance conformance with thls'~limitation if architectural barriers} of structures relating to program execution. The use expenditures fot,plannin8 and of consultants is governed by the owned by such entities [except as following: '-acLministration during the most recently permitted under paragraph [j}{2} of this ~ompleted prograan year did not exceed section with respect to rehabilitation {1) Employer-employee t~7~e of 20 percent of the sum of.the entitlement and under paragraph {j}[4} of this · relationship. No person providin~ grant made for that program year and section with respect to repairs consultant services in an employar, the program income received durin8 that undertaken in connection with public employee type of relationship shall program year. services} regardless 'of the use to be receive more than a reasonable rate of th} Reimbursemen..; .;pre-a~reement made of the property at structure. compensation for personal services paid costs, l~ior to the effecttve date of the lh'operty owned.by primarily religious with CDBC funds. In no areal however, grant agreemenL a recipient may entities may be acquired with CDBC shall such compensation exceed the obligate and spend local funds for the funds at no more than fair market value maximum daily rate of compensation for purpose of environmental assessments for a non-religious-u6e. a CS-18 .as .established by Federal law. required by 24 CFR Part 58. for the Such services shall be evidenced 'by plarmin8 .and capacity build/n8 purposes [2) CDBG funds may be used to rehabilitate buildings owned by written agreements 'between the parties authorized by § .570.205(b]. for primarily religious entities to be used for which detail the responsibilities, engineer/n8 and design.costs associated standards, and compensation, with an activity eligible under § 570.201 a wholly secular purpose under the {2} Independent contractor through § 570.204. for the provision of followin8 conditions: relat/onsAip. Consultant services information and other resources to ti} The building [or portion thereol'} provided-under an independent residents pursuant to § 570.206{b}. for that is to be improved with the CDBC contractor relaticnship.are governed by relocation activities carried out pursuant assistance has been leased to an the procurement requirements in 24 CFR to § 570.606. 'and for costs of comply/n8 e~xistin8 or newly.established wholly 85.36 and are not subject to-the CS--18 with Procedural requirements for secular entity/which,may be an entity limitation, acquisition under § 570.606 but not for established by the religious entity]: {e} Recipient determinations required the cost of the real property itself. After {ii} The CDBC assistance is provided o.s o con(iii/on ofeli~ibility. In several the effective date of the grant to the.lessee [and not the lessor} to instances under this subpart, the agreement, the recipient may be make the improvements: eligibility of an activity depends on a reimbursed with funds/rom its grant to [iii} The leased premises will 'be used special ,local determination. Recipients cover those costs, provided such locally exclusively for secular purposes shall maintain documentation of all such funded activities were undertaken in available .to persons regardless determinations. A written determination compliant., with the,requirements of this tel/g/om is required for any activity carried out part and 24 CFR Part 58. (iv} The lease payments do hal exceed under the authority of § § 570.201[!'). ti} Urban Development Action Grant. the fair market rent of the premises as $70.202[b][3L 570.203[b}. 570.204. and Croat assistance may be provided with they were before the improvements are 570.206(1'}. A written determination is Urban Development Action' Croat funds, made: 9/88 Copyright © 1988 Community Development P~porter, Ir~. 2,0i002-C {v) The potti~ of the coat of any co~'~stit'ute.s in dollar terms orOy an ass.ist, ance under ~s para~'aph are . imp~vements that also se~e a non- incidental potion of ~e C~ . sub~ to ~e potties in t SyO.~bJ. leas~ ~ ~ t~.~ ~l.~ expendi~ for ~e ~blic s~ms. {d) C/eo~nce octivio~. C~arance. allocated to and p~d f~-~ (vi) ~ I~t-ent~ into a ~g ! S70.~1 ~-~ ~ demoli~o~ ~d r~oval o~ buildings ' end imp~vements. I~[u~n8 movement agreement ~t un~s ~-!~. ~ a CDBG ~ds ~y ~ n~d f~ t~ of s~ctures to other sites. Demolition of quali~ed s~cu~ !~. ~lai~ ~ following ac~i~e~ ~UD-assisted hous~g ~its may be use of ~e ~a~ p~i~ f~ a w~y {al ~cqu/~/t/on. Acquisit~ ~ w~ .~de~aken only ~ ~e ~ot a~toval secular p~o~ !~ at least ~e ~ef~ or in part by ~ ~cipient,'~ ot~r of ~, life of the improvements. ~e less~ w~ public ot p~vate non~Rt ~. ~ (el ~//c ~e~/ce~. ~v~ of public pay to the levee an ~~1 ~ ~ pur~. l~le~ ~a~. d~a~. or residu~ v~ of ~e ~prov~ o~e. of ~1 p~ {i~lu~ a~ se~ic~ [inclen8 ~bor. supplies. {v~The lu~e m~ te~t ~e ~t ~ghts. wat~ ~ts..~t~f. wey. mate~als} which a~e d~ected toward re~ived ~ ~e.le~t ~ ea~n~s. ~d o~er int~sts ~ln} improvi~ ~e comm~i~'s pubic para,apb {2~vi} ~ ~ ~ Io ~e ' for any public p~ose, subject.to-~e se~ices ~d face,es, inclu~n8 but not recipient.~ su~ b~ w~ ~ limitations of J'~07. limited :to ~oee conceded ~th CDBG f~ we~ ~v~ ~} ~/~. ~e~. ~ emplo~ent, c~me p~ventio~ chfld sale. tease, dona~ ~o~. of care. heal~. ~.ab~e. e.~catfon, f~ The lessee ~ ~ ~tet ~o a any ~al p~ a~u~d.~ ~ housin8 co~seltn~ ene~ manhunt ~ct nu~ ~e f~ds ~ i~s retenti~ f~ p~ conse~aUon, we~are. ~ re~eational lessor religious 'entity to use ~ b~ P~. ~ ~a~nn~e ~sts of needs. ~ o~et to be ell~ble for ~ for its linl~d ~ ~. e~, 'tem~a~ mnnn~ s~ ~ or assistance, public se~ices must meet .homeless ~ter. ~ov~s~ of pu~ p~pe~ a~u~'~nn ~n~aL each of-~e foUowin8 c~te~a: se~s. in s~ ~e, ~ ~l~un {~} A pubic sauce must be eider , · provid~'~at ~ p~eds ~m ~y entity im~t agree ~ ~ ~~nt such ~s~sl~a shall ~ p~m new se~ee, or a ~an~fiable in,ease con~a{~ to ~ ~t ~ ~ p~e income subj~t to ~e ~~ s~ ~ the level of a sauce above that in. a -mnn~, . ~ee [t~ ~ous for~ in ! 570.'~. which has been p~ded by or ~ beha~ influences. ., :m acc~ wi~ ~ {c) ~ub/~/ocffitieea~ of ~e ~tt of.gene~l'locaI government pn~pl~ set [~ ~ ~r~s.ph ~3) impro~men~ Acquisition. (~ ~ds ~ised by such unit;'or of this se~o~ cons~. ~n~o~ r~ei~d by su~ ~it'~m ~e State in (3) ~s a ~rai m~. CD~ l~s rehabili~a~on ~ i~talla~o6 of ~c whi~ it ia Iocate~ In ~e ~el~ may be u~d i~ e~ible ~blic se~ faci~ ~ ~~ts. ~ ~ ~lendar monks prior Io ~e su~ission to.~ provided ~o~ a pr~ly p~vi~ ~ t 5~.~{a}. ~ed out ~ of ~e statemenL (~ e~ep~on to ~is relig~o,~ ~tity. w~ ~ reli~s ~e recipi~t or o~ ~blic or ~vate requirement m7 be made ii ~ entity jenters ~o an a~t ~ ~ nonprofit en~e~ h ~a~ su~ dete~es ~at ~e de~a~ ~ ~e level redp~nt'~.su~ecip~nt f~ w~ ~ CDBG f~ are ~Nv~ ~aL ~ ,, acgviti~, desi~ fea~ ~d ' of a se~ce was ~e-res~t of events not connegti~ ~ ~ ~ovision of su~ . -imp~vements w~ch promote ene~ wi~ ~e consol of ~e ~it of ~neral . . effici~ may ~ incl~ed. S~ local 8ove~ent.) saw,cas: acti~Ues may also include ~e exxon (2) ~e amo~t of,~.~nds .used (i) lt~ w~l not di~minate a a~t ~ of arc~t~} desi~ feat~, a~ for pubic sauces shah not exceed emplo7~ or ap. pBcant f~ em~lo~enty similar Ueatments ~tended to e~an~ percent of each ~ant except as pro~ded on thelbasis ~ r~igi~.~ wiU not l~t ~e aesP'eric qunli~ of'fa~}i~ and in para,apb [e){3) of.this ~cfion. For employm~t or-give ~ef~nce ~ imp~vements ~cei~-~BC en~tlement ~nts ~d~ Subp~ D. employm~t to p~s on ~ ~sis of assistance, such :as decora~ve compliance is-based on ~e amo~t of .{ii} [~ will not dis~te against any pavements. ~i~s. sc~p~. ~l, of . CDBC ~ds ob]i~ted for pubic se~ice water and fo~ta~, a~ o~et wo~s oF ac~es ~,each p~ year person~arply~ for su~ pubic sauces ~ Fa~lJti~ d~i~ed for use ~ compared to 15 pe~ent of ~e on thelbasis ~ re,sion and ~U not ~t P~ shelter for ~ons bav~ entitlement ~ant made for ~at pro,am such s~rvices or ~ve ~eferen~ to special needs a~ ~ns~ed pubic year. persona on .~ basis of re~ fa~es and.not sub~t to ~e [3} A r~pient whi~ obl~ated m~e {iii) It will provide no reli~s prohibition ofnew 'ho~in8 ~ns~ CDBG ~nds fotpublic sauces ~an inst~tion.., or counseling., conduct ~ desczi~d in J ~7{b){31. S~ percent of its =~ant ~ded ~om Fedet~ rehgtous.,, worship or se~ices. __~ane, ~ facilities ~cl~e ahelt~"fot ~e Rsca] year 19~ or 1~ appropHa~ons no rehg~ous pr~elytizi~, and exe~ no homel~ conval~cent hom~: {excludin8 any assist~ce received other ~eligious inRuence ~ ~e p~vision h~pitals, nu~ing homes:.-batte~ pursuant to ~b. L ~. may obligate of auch public se~ices: spouse shelter, hal~ay hous~ for ~n- mo~ CDBG'~nds than 15 percent of its ~ W ' {i~.} ~he portion of a.fa~ity used to a ay chddren. ~8 off~de~ ~ ~ant for public-sauces so Ion8 as ~e pro¥ide., .the .public se~ices sh~ conta~ pa~l~s: ~up homes ~ot mental~ smoot obligated In any program no rehg~ous symbols or decorationL retn~ ~ons and tem~ hou~ does not exceed ~e p~ntage or other t;han ~ose pe~anently a~xed to for disaster v~cfims. In certain cas~. amount obli~t~ ~ F~eral fiscal year or par~ of the st~cm~, nonp~fit enfiOes and sub~pients 19~ or 1~. ~ichever method of {4} Where the.public ~ces including ~ose s~ci~ in t 5~ calcula~on ~elds ~e hi~ ~o~t. provided under parag~ph (j~3) of ~is may acqui~ Ht~ to public fa~ll~ [~/nte~m sectio6 a~ ca~ out on p~ When su~ facili~e~ are o~ by (1~ ~e foUowin8 ac~es may be owned by the primarily religious ~Hty. nonp~t ~tit~s or su~p~nt~ ~ey unde~aken on an ~te~m bas~ in areas I may also ~.u~ f~ mi~r shall be operated so as to .~ o~ f~ exhibit~ objective~ d~e~nable repai~ to s~h p~p~y ~ich n~ use by ~e ~neml ~blic ~g aH signs of physical dete~orn~on whe~ the dir~tl~y ~lnted~to ca~ out ~e no,al ~ of ope~tion. ~!~ re~pient .has detained ~at ~e~ate public se~ices whe~ th ~ cost realities and imp~vements-el~ble foe action is necessa~ to a~st ~e 11/88 Copyright © 1988 Community Development P~porter, Itu. 2. 01003-C EXHIBIT "C" SERVICE OBJECTIVES FOR BAKERSFIELD HOMELESS CENTER PRESENTED BY BETHANY SERVICE CENTER The following is a Ii-st of minimum required services for the Bakersfield Homeless Center. PHASE I. Implementation upon occupancy. A. NIGHT SHELTER 1. Provide overnight shelter as needed' in structure commonly referred to as Building A. 2. Provide or coordinate for breakfast on site as n.eeded,"breakfast" to be defined as coffee and doughnuts or some comparable .meal. 3.Provide for basic hygiene at no charge; A. Restrooms available and maintained throughout night shelter operating hours for overnight guests. B. Evening showers daily for overnight guests C. Baal% hygiene articles such as soap, shampoo, and:towels for use on site. B. DAY CENTER 1. Operate daily all year long, minimum 6 hours per day on weekdays and 2 hours per day on weekends. 2. Subject to availability of resources, relocate meal service from night shelter and provide ~ mid-day meal 7 days a week. 3. Provide for basic hygiene at no charge. a. Restrooms ava-liable and maintained during day center operating hours. b. Showers a~ specified hours daily. C. Basic hygiene articles such as soap, shampoo and towels for use on site. 4, Provide mailing address and mail distribution. 5. Upon'proVision by City of appropriate locker facilities, administer locker space for basic personal possessions at no charge. Specify regulations for their, use. 6. Manage bulletin boards, for messages, announcements and job listings. 7. Provide lelsure'areas with reading materials and television for center users. 8. Bethany Service Center will attempt to coordinate in cooperation with appropriate outside agencies for the following services: a. On-site information and referral services. b. The provision of health care Services, at specified times during the week. c. The provision of job placement and career counseling on site at specified times. d. The provision of counseling, support, and/or self-help groups on site. 9. Develop an ongoing program for user participation on a voluntary basis to assist in operation of the center. 10. Provide for a mechanism for user input on at least a weekly basis. PHASE II: ADDITIONAL SERVICES TO BE PROVIDED BASED ON EXPERIENCE AS ADDITIONAL RESOURCES BECOME AVAILABLE. IT IS THE INTENT OF BETHANY SERVICE CENTER TO OPERATE T~E BAKERSFIELD HOMELESS CENTER AS MANY HOURS PER DAY AS IS FEASIBLE AND TO OF.PER AS WIDE AN ARRAY OF SERVICES AS IS REAS'0NABLY POSSIBLE. SERVICE EVALUATION BAKERSFIELD HOMELESS CENTER T.h~ operator of'~-the 'Bakersfield Homeless Center will be required to implement and develop an untried program of services. Usage cannot be reasonably predicted at this time. PROPOSED METHOD OF EVALUATION Lessee to provide Lessor: 1. Monthly report to include number of contacts on each service. 2. Brief quarterly reports to include: ~_ A. Accomplishments of each program. : B. Issues/problems that have arisen. 3. Initial six month review to evaluate progress made toward achieving service objectives. 4. Annual review thereafter, specific goals and objectives to be determined at six month review period by agreement between the City of Bakersfield and Bethany Service center. Until a database has been established and evaluated, performance evaluation will slmply be based on the. extent to which the basic minimum services have been implemented. · i ] . EXHIBIT "D" (a) NondiScrimination and ERoal O?Portunit7. (1) The requirements of Title VIII of the Civil Rights Act of 1968, &2 U.S.C. '3601~19 and implementing regulations; Executive Order 11063 and implementing regulations at 24 CFR Part 107; and Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2002d-1) and implementing regu~ lations issued at 2A CFR P~rt 1; (2) The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and the pro- hibitions against discrimination against handicapped individuals under section 504 of the Reha'bilitation Att'of 1973 (29 U.S.q. 794); (3) The requirements of Executive Order 1124-6 and the regulations issued under the Order-at 41 CFR Chapter 60; and . (4) The requirements of Executive Orders 11625, 12432, and 12138. Consistent with MUD's-responsibilities under these Orders, th~ grantee must make efforts to-encourage the use of minority and women's business enterprises in connection with activities funded under this part. (b) A?plicabili.t7 of OMB Circulars. The policies, guidelines, and require- ments of OMB Circular Nos. A-87 and A-102, as they relate to the accep- tance and use of emergency shelter grant amounts .by States and units of general local' goverpment, and Nos. A-il0 and A-122 as they relate to the acceptance and use.of emergency shelter grant amounts by private nonprofit organiza=ions. (c) Uniform Federal Accessibili:y Standards. For major rehabilitation or conversion, the Uniform Federal Accessibility Standards at 24 CFR Part 40, Appendix'A. (d) Lead-based paint. The requirements, as applicable, of the Lead-Based Paint Poisoning Prevention Act (42 U~S.C. §~ 4821-4846) and implementing regulations at 24 CFR Part 35. (e) Conflicts of interest. In addition ~o conflict or interest requirements in OMB Circular A-102 Circular A-102 and A-Il0, no person who is an employee, ~gent, consultant, officer, or elected or appointed official of the grantee, State recipient, or nonprofit recipient (o: of any designated public agency) that receives emergency shelter grant amounts and who exercises or has exercised any functions or responsibilities with respect to.assisted activities or who is in a position to participate in a decisionmaking process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agree- ment with respect thereto, or the proceeds thereunder, either for him or herself.or those with whom he or she has family or business ties, during his or her tenure or for one year thereafter. HUD may grant an exception to this exclusion'as provided in }f570.611(d) and (e) of this chapter. (f) 9se of debarred~ sdspended~ or ineli~ib'le contractors. The provisions of 24 CFR Part 2~ relating to the emplo.vment, engagement of se.vices, awarding of contracts, or funding of any contractors or subcontractors during any period of debarment, suspension, or placement in ineligibility status. (g) Flood insurance. No site proposed on vhich renovation, major rehabilitation, or conversion of a buildini is to be assisted under this part, other than by grant amounts allocated to Stat~ may be located in an area that has been identlfied by the Federal Emergency Hanagement Agency (FEHA) as having special £1ood hazards~ unless the community in ~hich the area is situated is participating in the National Flood Insurance Program and the regulations thereunder (ii CFR Parts 59-79) or less than a year has passet since FEHA notification regarding such hazards, and the grantee viii.ensure that floot insurance on the s:ruc- ture is obtained in compliance ~ith section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.$.C. 4001 e_~ .seq.). (h) Audit. The financial management system used by a State or unit eral local government that is a grantee or Sta:.e recipient shall provide for audits in accordance with 2~ CFR Part ~6. A private nonprofit organiztion is subject to the audit requirements of OHB Circular A-Il0. P~P2 .ATTB -2- ', EXHIBIT "[" ~. ' OFFICE OF'MANAGEMENT AND uruformity and consistency, dev~aho~s all construction, land acquisition and BUOGET will be permitted only in exceptionul land developmenl projects or programs circumstances, when the need for Federal funding " Grants and Cooperative Agreements 6. Pre-AwardPo//c/es. exceeds St00,000. unless the.Federal with State and Local ~overnment$ . a. [,'se o/gr=n~' and cooperative agency determines that a preapplication agreements. Sections 6301-08, title 31. is not needed. A preapplication is used [Circtda~ No..;A-102 (R.vi~ed)J United States Code goVern the use of Io: '~ March 3. 19aa. grants, contracts and cooperative ia'} Eslablish communication between To Ihe He,ds of Executive DepaMments and agreements. A grant or cooperative the agency and the applicant. Establishments agreement shall be used only when the [b) Delermine the applicant's Subject: Crania and Cooperative Agreements principal purpose of a transaction is to eligibility. with State and Local Covemments . accomplish a public purpose of support {c) Determine how well the project· 1. Purpose. '/'his Circular establiahe,~ or stimulation authorized by Federal can compete with similar ·projects from consistency and uniformity among statute. Contracts shall be used when others, and Federal agencies in the management of the pr'incipa] purpose L~ acquisition of {d} Discourage any proposals that granls and cooperative agreements with property or services for the direct have little or no chance for Federal State. local, and federally recognized benefil or use=of the Federal funding before applicants incur Indian tribal ,governmenls. This revision Covernment. The statutory criterion for significant costs;in.preparing detailed supersedes-Office of'Management and choosing between grants and applications. .: Budget (OMB) Circular No. A-102. dated cooperative agreements .is that -for-lhe [Si Agencies shall use the Budget January-lgal. latter. "substantial involvement is Information [Construction) und 2. Authority. This (~ircular is issued ' expected between the executive agency Standard Assurances [Construction] · under the authority of the Budget and and the Stale. local government, or other when the major purpose of the project or Accounting Act of 19Zl.. as amended: the recipient when carrying out the activity program is construction, land · Budget and Accounting.Procedures Act Contemplated.in the agreemenL" acquisition or land development. of t9..<O, as.amended: Reorganization b. Advance Public Notice and Priority {4) Agencies may specify how and Plan .No. 2 of 1970:. and Executive Order Selling. whether budgets shall be shown 'by 11541. Also included in .the Circular are [1] Federal agencies.shall ~rovide the functions or ·activities ',vithin the standards to ensure consistent 'public with an advance notice in the program or project. implementation of sections 202. 203,.and · Federal Register. or by other appropriate {s] Agencies should genera'lly-include 204 of the Intergovernmental means, of intended funding priorities fat a request for e program narrative Cooperation Act of 1968. the Office of discretionary assistance programs, statement which is based on th~ Federal Procurement P'olicy Act unless funding priorities are established following instructions: Amendments of 1983. and sections 0301- by Federal statute. These:priorities shah {a} Objectives and need for 08. title :31. United States Code. be approved by a 'policy level official, assistance. Pinpoint any relevant 3. Boc/~gr=und. On March 12. 1987. the [2~ Whenever time permits, agencies physical, economic, social, financial. President directed ali affected .agencies s, hall provide the public an opportunity institutional, or other problems requiring to issue a grants management common to-comment on intended funding ' a-solution. Demonstrate the need for the j ruJe to adopt government-wide terms .:priorities. assistance and state the principal and and conditions for grants to Slate and [3} All discretionary grant awards in subordinate objectives of the project. local gcrvernmenta. This revised Circular excess of $25.000 shall be reviewed for Supporting documentation or other provides guidance to Federal agencies consistency with agency priorities by a testimonies from concerned interests on busineas,li.ke management of grant policy level officiaL other than the applicant may be used. programs and other matte~ not covered c. Standard Forrns for Applying /or Any relevant data based on plannin8 in the common rule. The revision Crant$ and Cooperative Agreements. studies should be included or footnoted. replaces and rescinds Circular A-102" (1} Agencies shall use the following (b) Resets or Benefits Expected. dated January lg~3'1., including standard application forms unless they Identify results and benefits to be Attachments A-P. obtain OMB approval under the derived. For example, show how the 4. Cover=ge; Consistent with their Paperwork Reduction Act of 1980 [44 . facility will be used. For land legal obligations, all Federal agencies U.S.C. 35) and the S CFR Part 1320. administering .programs that involve "Controlling Paperwork Burdens on the acquisition or development projects. grants and cooperative agreements with Public": explain how the project will benefit the State, ]ocs] and Indian tribal ° SF.-424-Facesheet public. [c) Approach. Outline a plan of action governments [grantees} shall follow the · SF-q24a Budget bd'ormation [Non. pertaining to the-scope and detail how policies in this CLrcular and issue a ConstructionJ the proposed work will be accomplished common grants management rule ° SF--424b Budget Information for each assistance program. Cite factors [common rule). U' the enabling [Construction] ' which might accelerate or decelerate the legislation for a specific grant.program · SF-424c Standard Assurances {Non- work and your reasons [or taking this prescribes policies or requirements that Construction} approach as opposed to others. Describe differ from those in,this.Circular, the ° SF---q24d Standard Assurances any tmusual features of the project, such provisions of the enabling legislation [Construction} as design or technological innovations. shah govern. When different or additional reductions in cost or time. or $. Deviations. The Office of information is needed to comply with extraordinary social and community Management and Budget may grant legislative requirements or-to meet ~volvements. Provide for each deviations from the requirements of this. specific program needs, agencies shall assistance program quantitative Circular when permissible under also obtain prior OMB approvaL projections of the accomplishments to existing law. However. in the interest of [2] A preapplication shall be'used for be acbie.ved, if possible. When 12/88. Copyright © 1988 Community Development P~pomer, Itu.. 4,03001 "'. ' a<zcompii.~hments cannot'be quantified. Agencies shall establish procedures for inclusion of'proposals for "smile" S~ate Iisi the acUvities in chronological order the effective use of the Consolidated List agencies in the absence of cor~pellin8 . to show the schedtde of of Debarred. Suspended. Voluntarily reasons to do otherwise. In addition. ~ accompJishmenls and their target dates. Excluded and Ineligible Assistance existing requirements in present grant. Identify the kinds of clara to be collected Participants to assure that they do not in-aid programs shall be reviewed and and maintained, and discuss the criteria award assistance to listed parties in legislative proposals developed for the to be used to evaluate the results and violation of the Executive Order. . removal of these restrictive provisions. ~ success of the project. Explain the Agencies shah also establish procedures i. Patent Rights. Agencies shall use methodology that will be used to to provide for effective use and/or the standard patent rights clause determine if the needsidentified and dissemination of the 'list to assure that specified in "Righls to Inventions made discussed are bein8 met and if the their grantees and subgrantees by Nonprofit Organizations and Small reBults and benefits identified are beJn8 {including contractors) at any tier do not Business Firms" {:37 CFR Part 401~. when achieved. List each organization, make awards-in violation.of providing support for research and cooperator, consultant, or other key implementing regulations, development. individuals who will work on the project e. Away,Es ondAg/ustments. 7. £ost.oword£Olicies. alan8 with a short description of the (1}Ordinarily awards shall be made a. Casa Afonosement. Agency nature of their effort at contribution, at .least ten days prior tothe~beginnin8 methods and procedures for transferrin8 [dl Geographic Location. Give a of the grant period. ' preci,,e location of the project and area [21 Agencies 'shall notify grantees funds shall minimize the .lime elapsing · to be served-by the proposed project, immediately of any anticipated between the transfer to r~cipients of ~laps or other graphic aids may be grants and cooperative agreements and attached, adjustments in the amount of an award, the recipient's need for the funds. This notice shall be provided as early as {e} If applicable, provide the'followlng {ti Such transfers shall be made information: for research 'and · possible in ihe lundin8 period, consistent with program purpose. demonstration assistance.requesls. Reductions in:funding shall apply only applicable law end Treasury regulations present a biographical sketch of,the to periods after notice is provided, at 31 'CFR Part 205. ' Whenever'an agency adjusts the amount {2J Where letters-of-credit are used to program director with the-following of an award, it shall also make an provide funds, they shall be :in the same information: name. address, telephone apPropriate.adjustment to the amount.of amount as the award. number, background, and other · qualifying experience.for the.project, any required matching.or.cost sharing, b. Cronies FinancioiAIuno~ement f. Corryover~alances. Agencies shall Syslem$. In assassin8 the adequacy of Also. list the-name, training and be prepared to identify lo OMB the applicant's financial management · background for-other.key pemonnel an amounts of carryover balances (e.8.. the system, the awardin8 agency shall rely engaged in the project. Describe the amounts of estimated, gran. tee readily available sources of relationship.between this pWject and on unobligated balances available for information such as audit reports.to Ihs · other work planned, anticipaled, at carryover into subsequent grant maximum extent possible. If additional underway under Federal assistance, periods]. This presentation shall detail information is necessary to assure Explain the reason'for all requests for the fiscal and pro~ammatic [level of prudent management of agency funds, it supplemental assistance.and justify the..effort} impact in the following period, shall be obtained from the applicant or need for additional funding. Discuss .' ' g. Spec/o/Condib'ons or Restrictions. from an on-site review. accomplishments.lo date and list in 'Agencies may impose special conditions c. Financ/a/Status Reports. chronological order a scheduJe of or restrictions on awards to "high {1) Federal.agencies shall require eccomplisi'u~ents.prc~,tess or risk"applicants/grantees.in accordance grantees to use the SF-2~g. Financial milestones anticipated with the new w/th ! ~12 of the common rule. Status Report-Long Form, or SF-Zgga. funding request. If there .have been Agencies shall document use of the Financial Status Report-Short Form. to aignLficant changes in the 'project "Exception" provisions of § __8 and report the status of funds for all objectives, location, approach or time "High-risk" provisions of §_ .12 of the nonconstruction project, or Programs. delays, explain and-justify. For other common rule. Federal agencies need' not requb-e the requests for changes, or amendments, h. Waiver of Sin~Je State Agency -Financial Status Report when the SF- -explain the reason for the change{s). Il' Requirement. 270. Request for Advance or the scope or obiectives have changed or {1) Requests to agencies from the Reimbu. rsemenL or SF-272, Report of an extension of time i~ neces~ry, Govemor~. or other duly constituted Federal Cash Transactions. is explain the oLrcumstances and justify. If State authorities, for waiver of"single" determined to provide adequate the total budget has.been exceeded or if State agency requirements.in information. the individual budget Items have accordance with section 6.504. title 31. {2} Federal agencies shall not require changes more than the.prescribed 'limits. United States Code. shall be given ' grantees to report on the status of funds explain and justify.the change and its expeditious handling and. whenever by object class category or expenditure effect on the projecL possible, an affirmative response. (e.g.. pereotmel, travel, equipment.}. (6) Additional assurances shall not be {2) When it is necessary to refuse a {3) If reporting.on '..he status.of funds added to those contained.an the request for waiver of "single" State by programs, functions or'activities standard forms, unless-specifically agency requirements under section 204, within the project or program is required required by.statute. . the Federal grantor agency shall advise by statute.or regulation. Federal d. Debarment and Suspension. the Office of Management and Budget agencies shall .instruct grantees to use Federal agencies shall not award prior to informin8 the State.that the block 12. Remarks. on the SF-28g or a assistance to applicants that are request-cannot be granted. The agency supplementary form approved by the debarred or suspended, or otherwise shall indicate to O~,E! the reasons for Olvl]3 under the Paperwork Reduction excluded ifrom or ineligible for the denial of the request. Act of 1.980. participation in'Federal assistance {3) Legislative.proposals embracing (4) Federal agencies shah prescribe programs under Executive Order 12549. grant-in-aid programs shall avoid whether the reportin8 shall be on a cash 12/88 Copyright © 1988 Community Development P~pomer, Inc. 4,03002 .... , or an accrual basis. If the Federal must be received, and where they must · ' agency requires accrual information and be submitted. Copies of any required .; the grantee's accountin8 records are not forms and instructions for their ' normaJly kept on an accrual basis, the completion shall be included with this grantee shall not be required !o conve{t notification. The Federal actions that its accounting system but shall develop must precede closeout are: such accrual information through an (1) Receipt of all required reports. 't analysis of the documentation on hand. (2}.Disposition or recovery of d. Controctin$ With Small and federally-owned assets [as distinct from · ~,finority Firms. Women's Business property acquired under the 8rani}. and Enterprise and Lobar Surplus Area (3) Adjustment of the award amount F/rms. It is oational policy to award a and .the amount of Federal cash paid the fair share of contracts to small and .recipient. minority business firms. Grantees shall (b) Annuo/Reconc//iotion of take similar a ppropHa te'a rfirma tire Continuin$ Assistance A war~s. Federal action Io support of women's enterprises agencies shall reconcile continuing and are encouraged to procure goods awards at least annually and evaluate and services from labor surplus areas. e. Program/ncome. program performance and financial reports. .-'. (1) Agencies shall encourage grantees Items to be reviewed inclUde: Io generate.program income to help {1} A comparison of the recipient's defray program costs. However. Federal work plan to its progress reports and agencies shall not permil grantees to use project outputs. grant-acquired equipment lo compete {2} the Financial.Status Report-{SF- unfairly with the private sector. 269). :': (2) Federal agencies shall instruct (3) Request{s} for payment. grantees to deduct program Income from (4} Compliance with any matching. total program costs as specified'in the level of effect or maintenance of effort :. common rule at ~ ~.2$(g}(1J, unless · requiremenL and I agency regulations or the terms of the I grant award state otherwise. {Si A review of federally-owned I Authorization for recipients to follow property (as distinct.from p~'operty I the other alternatives in § __25(8)(2) acquired under the grant], and [3) shall be granted sparingly. 9. Entit/ement~ [Reservers[ £ Site l/i$it~ one Technical 10. Policy Review [Sunse~,[ The. Assistance. Agencies shall conduct site Circular will have a..policy review three ' visits-only as warranted by program or years from the date of issuance. 11. Effective Dote. The Cixcular ia project needs. Techtffcal.assistance site effective on publication. i visits shall be provided only,[1} in 12. inquiries. Further information . response to requests from grantees. {2) concerning this Circular may be based on demonstratedprogram need, or [3) when recipients are designated obtained from: Financial Management "high risk" under § ~12 of the Division.-Ne~4 Executive Office Building. common .rule. Room 10215. Office of Management and 8. After-the-grant Policies. Budget. Washington, DC 20503, a. C/oseout. Federal agencies shall 395-3050, ~' notify grantees in writing before .the end of the grant ,period .of final reports that [FR Doc 88-5321 Filed ~1o-8e: 8:,!~ emi' shall be due. the dates by .which they 12/88 . Copyright © 1988 Community Development P~porter, Inc. 4,0~003 O0 29 AH I0: BAI'{ERSFIELD CITY CLERK !CITY MANAGER'S August 21, 2000 Mr. Alan Tandy City Manager City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Mr. Tandy, I would like to submit the following request for a change in the Seasonal Business Ordinance to the Budget and Finance Committee Please change the zoning requirements back to the way they used to be so that I may operate my Sno-Shack shaved ice kiosks in a C-1 zone. I appreciate that you were able to issue a temporary conditional use permit so that I was operating this year at the following 2 Rite Aids. 6001 Coffee Road 3225 Panama Lane As you might have seen these two new locations were well received by the area · business and residents. In addition they went along with the spirit of the law, as you desired, which was not at small neighborhood mini-marts stores. I hope we may accomplish this ordinance change while retaining its integrity. These two new businesses created an additional 10 jobs for our community's college and high school students and it would be a shame to lose them. Again thank you very much for all the help you, your staff and the City Council have been in giving as much attention to the small projects as to the big projects. ADMINISTRATIVE REPORT I MEETING DATE: August 30, 2000 AGENDA SECTION: Consent Calendar ITEM: 8, ¥, TO: Honorable Mayor and City Council FROM: Gregory J. Klimko, Finance Director DEPARTMENT HEAD DATE: August 22, 2000 CITY ATTORNEY CITY MANAGER SUBJECT: Transient Outdoor Business Permits RECOMMENDATION: Staff recommends referral to Budget and Finance Committee. BACKGROUND: Mr. Bruce Dolgin's seasonal business (Sno-Shack) is subject to the zoning requirements of the Transient Outdoor Business Ordinance. He has requested a change in the. permitted zoning for seasonal permits from C-2 to C-1, via the attached letter. Currently, transient outdoor businesses are permitted in a C-2 zone or in a less restrictive zone, with exceptions. These exceptions include property oWned and occupied by a church and/or a school, and the transient business is located no less than 300 feet from the property line of any residence. The C-2 zone allows commer, cial businesses, such as shopping centers; C-1 is a neighborhood commercial zone, which is typically smaller in scale and limits uses, because of the proximity to residences. Examples of limited usage in a C-1 zone are no outside displays and .no outside sales (sales outside a commercial building). Zoning restrictions can be modified by a Conditional Use-Permit (CUP). The CUP procedure allows the City to approve a type of business normally not allowed in the designated zoning. However, the fee per location is $-1,342.00, mainly because of the expense, in noticing the neighborhood and the public hearing. The CUP headng allows for neighborhood input. Conditions can be added to ensure the business is compatible with the neighborhood. As background information, until about a year ago, all transient outdoor business permits were issued for a 90 day maximum term. At the request of Mr. Dolgin, the ordinance was amended to add a 180 day permit for seasonal food sales, such as shaved ice. The first reading amendment for the change in permit terms reflected C-1 as a permitted zone, in error. The error was corrected for second reading, but it has been the S:~COUNClL~dmins\TransienetOutdoorBusPermits August 23, 2000 , ADMI'NISTRATIVE REPORT Page 2 source of some confusion to Mr. Dolgin, as to the zoning requirements of the ordinance. In no instance did the ordinance allow a transient business in a C-1 zone. Mr. Dolgin was given temporary CUPs (limited to 180 days) 'by the Board of Zoning Adjustment for two sites in the City (6001 Coffee Road and 3225 Panama Lane), because of the confusion from the last Ordinance amendment. These permits were initiated by the City, with no cost to Mr. Dolgin, because he relied on the first reading version to secure leases on those two sites. This CUP allowed him to operate at these locations, for this year only. Under the existing ordinance, Mr. Dolgin can permanently establish these sites by reapplying for CUPs, at his expense, or the Council may give consideration to amending the ordinance. S:tCOUNClL~Admins~.TransienetOutdoorBusPermits August 23, 2000 BUDGET AND FINANCE COMMITTEE PROPOSED 2001 IVIEETING SCHEDULE OBudgetand Finance Committee City Council Holiday Meeting 4:00 p.m. Budget Hearing or City Council and Department Presentations Board of Supe~4sors at City Council Meeting JANUARY FEBRUARY MARCH 2 3 4 5 6 1 2 3 I 2 3 13~ 15 16 17 21 22 23 24 25 26 27 18~,~,~,,]~, 20 21 22 23 24 18` ~g; 20 21 22 23 24 28 2S 30~ 25 26 27L.....8~j 25 26 27~ .28~ 29 30 31 APRIL MAY JUNE S M T W~T'H--*~ F S S M T W~.~TH F S S M T W TH F S 1 2 3~4(.~ 5~__¢~ 6 7 1 2( 3)...~.¢¢4 5 1 2 8 S 10~ 12 13 14 6 7 8 9 10 11 12 31~ 411L~_~ 5 8 9 15 16 17 18 19 20 21 13 14 15l .!~1 17 18 19i 10 11 12 15 16 22 23 24~ 26 27 28 20~ 22 2~ 24 25 26i ......... 19 2~ 21 22 23 29 30 27 29 31 24 25 28 28 29 30 JULY AUGUST SEPTEMBER ---~J= S M T W~ F $ M T W TH F S 1 2 6 7 3 4 15 16 17L...._~_.8j 19 20 21 12 13 14 15 16 17 18 11 12 13 14 15 22 23 24 25 26 27 28 19 20 21 24 25 16 i7 181~.~J 20 21 22 29 30 31 26 27 28 29t.~_.~30~) 31 23 24 25 26 27 28 29 3O OCTOBER NOVEMBER DECEMBER T W TH F S S M T W TH F S S M T W TH F S 2 3(~ 41~ 5 6 2 3 1 9~ 11 12 13 4 5 6 7 8 9 10 2 3 4 7 8 30 30 Januaw 23,2001 '/: ' ','~' 0 ce ' '. -.... 4200 [rux'lun Ave., ~e 300 ,~.~ , .e~:<.. <.:, i .,..i~:.; BRO~. ARMSTRONG ~:' .. -:¢'-:.~ ~ALL RE~'g..PA~DEN & MCCo ... .... ' ""'~ ..... "'~ ::"~':'CERTIFIED PUBLIC ACCOUNTANTS:-:: :.'.' · ......... ?> · ~ ~ ~'7~2~'~ ~1'7~.~18 Peter C. Brown, CPA Burton H. A~s~ron~, CPA, MST Ie~ E. ~ndall, C~A/ABV TO the Honorable Mayor and Members of the City Council Benjam~ P. Reyes, CPA City of Bakersfield, California Andrew J. Paulden, CPA Ha~'ey ]. McCown, CPA A~&~, ~t~o~d-~in.c~.~ In planning and peffo~ing our audit of the gener~ pu~ose financial statements of the City of Bakersfield, California (City) for the ye~ ended June 30, 2000, we considered its internal control stm~ure in order to d~e~ine our auditing S~evena. Starbuck, CPA procedures for the pu~ose of expressing our opinion on the general pu~ose financial statements and not to provide.assurance on the internal control structure. .~n ~. ~t~,cp.~ Our consideration of the internal control st~aure would not necessarily disclose Lynn R. Krausse, CPA all matters in the internal control stmmure that might be material weaknesses s~yL~,,c~.~ under st~dards established by the ~erican Institute of Certified Public ch~, ~k ~o=~=~S, C~.~ Accountants. A material wetness is a condiiion in which the design or operation .IoanM. Anderson. CPA of one or more of the inte~al control stmmure elements does not reduce to a ~&,.. 5~. ~ak~n~,cp.~ relatively 1o~ level the risk that e=ors or i=e~l~ities in amounts that would be material in relation to the financial statements being audited may occur and not be ~=n,,=~ v. s~,,,,.~, cp.~retched within a timely period by employees in the normal course of perfO~ing EricH.~in. CPA their assigned ~nctions. However, we noted no matters involving the internal ~d,,.~. ~c~,,~,.cp.~ control stm~ure and its operation that we consider to be material weaknesses as ¢om,,~ >t.'<0u=s, cp.~ defined above. %hie L Chroman, CPA This repo~ is intended solely for the information and use of the Audit Committee, City Council, management, and other authorized re~lato~ agencies. However, this report is a matter of public record, and its distribution is not limited. BROWN AI~MSTRONG RAND)d_,L KEYES PAULDEN & McCOWN ACCOUNTANCY CORPORATION Bakersfield, California October 6, 2000 SEC Practice Sedi0n 0[ !he American !nstitute of ACCOUNTANTS ?' ". .~;.': !~~ I~'~'~1i~ ~l '.h~w~;~: ?:,': -'~:7 ,,'. ~¢~.~4 ':~j~?- Peter C. Brown, CPA N~ ~. ~n~a~, C~/isv REQUIRED COMMUNICATIO~ ~ITH AUDIT COMMI~EE$ IN ACCORDANCE ~ITH STATEMENT O~ AUDITING ~n~a~ ~. ~ey~,C~A STANDARDS NUMBE~ ~dmw J. Paulden, CPA Ha~'ey J. McCown, CPA ~d~a Rutherford-Hill, CPA TO t~ Gity o~ Bagemflel~, OaH~omia 5tevenR. Starbuck, CPA We have audited the general purpose financial statements of the City of Bakersfield for the year ended June 30, 2000, and have issued our report thereon dated October 6, AileenK. K~ter, C?l 2000. Professional standards require that we provide you with the following information Lynn R. Ktausse, CPA related to our audit. Stacv L. Walters, CP,-~ ,Our Responsibility under Generally Accepted Auditinq Standards Chris~'i-Thornburgh, CEA As stated in our engagement letter, our responsibility, as described by professional Joan.~l. Anderson, CP,-~' standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the general purpose finandal statements are free of material Bradley g. Hank[ns, CPA misstatement arid are 'fairly presented in accordance with generally accepted accounting IulianneV. Sawyer, CPA principles. Bed, ause of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a dsk that material errors, E~c R. X[n,C~'A fraud, or other illegal acts may exist and not be detected by us. Mel[nda A..~lcDaniel$, CPA ThomasM. Young, CPA As part of our audit, we considered the internal control of the City of Bakersfield. Such considerations were solely for the purpose of determining our audit procedures and not to Ybnie L. Chroman, CPA provide any assurance conceming such internal control. Si.qn Scant Accountinq Policies Management has the respOnsibility for selection and use of appropriate accounting. policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City of Bakersfield are described in Note I to the general purpose financial statements. No new accounting policies were adopted and the application of existing policies was not changed during fiscal year 2000. We noted no transactions entered into by the City of Bakersfield during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. ~[/~BER of s[£ Practice Section o[ the American Institute of Certified Public Accountants · . .?~i:~~ ?::.?,:..~;:v. ,.,..?t, . :~ ACC°untin,q Estimate~ Accounting estimates are an integral part of the general purpose financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events, Certain accounting estimates are particularly sensitive because of their significance to the general purpose financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There were no sensitive estimates affecting the finandal statements. Si_enificant Audit Adiustments For purposes of this letter, professional standards define a significant audit adjustment as a Proposed correction of the general purpose financial statements that, in our judgment, may not have been detected except through our auditing procedures. These adjustments may include those proposed by us but not recorded by the City of Bakersfield that could potentially cause future financial statements to be materially misstated, even though we have concluded that such adjustments are notmatedal to the current financial statements. We proposed no audit adjustments that could, in our judgment, either individually or in the aggregate, have a significant effect on the.City of Bakersfield's financial reporting process. Disa.qreements.with Manaqement For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the general purpose financial statements or the auditor's report. We are pleased to report that no such disagreements arose dudng the course of our audit. Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's general purpose financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require t~e consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Pdor to Retention of Independent Auditom We generally discuss a vadety of matters, 'including the application of accounting principles and auditing standards, with management each year pdor to retention as the City of Bakersfield's auditors. However,. these discussions occurred in the normal course of our professional relationship and our responses were not a condition for our retention. Difficulties Encountered in Performinq the Audit We encountered no significant difficulties in dealing with management in performing our audit. This information is intended solely for the use of the City of Bakersfield and management of the City of Bakersfield and is not intended to be and should not be used by anyone other than these specified parties. BROWN ARMSTRONG RANDALL REYES PAULDEN & McCOWN ACCOUNTANCY CORPORATION Bakersfield, California October6, 2000 ADMINISTRATIVE REPORT I MEETING DATE: September 27, 2000 I AGENDA SECTION: Consent Calendar I ITEM: 8.s. I TO: Honorable Mayor and City Council APPROVED FROM: Gregory J. Klimko, Finance Director DEPARTMENT HEAD~-~./~ DATE: September 20, 2oeo CITY ATTOR EI~Y ~'J~~'', CITY MANAGER SUBJECT: Centennial Garden Financial Statements RECOMMENDATION: Staff recommends the financial statements be referred to the Budget and Finance Committee. BACKGROUND: Attached are the Bakersfield Centennial Garden & Convention' Center financial statements for the year ended June 30,2000, audited by Barbich, Longcrier, Hooper & .King Accountancy. Corporation. The financial statements report a $227,624 net loss for the 1999-00 fiscal year ended June 30, 2000. This compares favorably to a $594,107 net loss for 1998-99, the first fiscal year Ogden Entertainment, Incorporated operated the facilities under a management contract, and even more so to a $1,137,'940 net loss for 1997-98, the last fiscal year the City directly operated the Convention Center. P:~,DMIN~000ADMIN\C000927A.wpd GJK:DW:Ijm September 20, 2000, 11:01am Bakersfield Centennial Garden & Convention Center Financial Statements Year Ended June 30, 2000 6) l~bich · Longcrier Hoo_per &Kin§_ .~,ccountanc.v Corporation CONTENTS Page(s) Independent Auditors' Report On The Financial Statements 1 Financial Statements Balance sheet 2 Statement of revenue and expenses 3 Statement of changes in retained deficit 4 Statement of cash flows 5 Notes to Financial Statements 6 - 14 Independent Auditors' Report On the ~i Supplementary Information' 15 Supplementary Information Schedule of operating expenses 16 Independent Auditors' Report On Compliance And On Internal Control Over Financial Reporting Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards 17 B ich Lopgcrier r. lccouat~'lc? Independent Auditors' Report Ogden Entertainment, Inc. Bakersfield Centennial Garden & Convention Center Bakersfield, California We have audited the balance sheet of Bakersfield Centennial Garden & Convention Center as of June 30, 2000, and the related statements of revenue and expenses, changes in retained-deficit and cash flows for the year then ended. These financial statements are the responsibility of-the City's ]" facility management company, Ogden Entertainment, Inc. Our responsibility is to express an 1 opinion on these financial statements based on our audit. L We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the Uniti:d States. Those standards require that we plan and perform the [. audit to obtain reasonable assuranCe about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and tr' disclosures in .the financial statements. An audit also includes assessing the accounting principles .used and significant estimates .made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bakersfield Centennial Garden & Convention Center as of June 30, 2000, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted .accounting principles. [". 5001 E. Commercenter Drive, Suite 350 · P.O. Box 11171 · Bakersfield, California 93389 ° Fax (661) 631-0244 · (661) 631-1171 1319 Marsh Street · San Luis Obispo, California 93401 · Fax (805) 541-4024 · (805) 541-2500 In accordance with Government Auditing Standards, we have also issued a report dated August 24, 2000 on our consideration of Ogden Entertainment, Inc.'s internal control over financial reporting and our assessment of its compliance with certain provisions of laws, regulations, contracts and grants. -That report is an integral .part Of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. . Bakersfield, orma August 24, 2000 Bakersfield Centennial Garden & Convention Center Balance Sheet June 30, 2000 ASSETS Current Assets $ 783,705 Cash 231,738 Accounts receivable, trade 91,210 Accounts receivable, other 146,950 Prepaid expenses 1 253 603 25,741 Property and Equipment, at cost 5.350 Less accumulated depreciation 20,391 LIABILITIES AND RETAINED DEFICIT · Current Liabilities $ 84,137 Accounts payable, trade 68,911 Accounts payable, other 202,832 Accrued expenses 788,527 Deferred revenue 951,318 Advance from City of Bakersfield 2,095,725 Commitments Retained Deficit Unappropriated See Notes to Financial Statements. -2- Bakersfield Centennial Garden & Convention Center Statement of Revenue and Expenses For the Year Ended June 30, 2000 Net revenues: Facilities rent $ 1,583,092 Event expense reimbursements 702,665 Suite and premium seats 653,276 Concession commission 532,432 Signage and advertising 401,958 Parking 123,593 Ticketing fees 109,154 Merchandise 82,311 Other income 19,241 4,207,722 Direct. event expenses: Event labor ...- 1,210,616 Other direct event expenses.. 200,710 Event advertising 158,975 1,570,301 Gross profit 2,637,421 Operating expenses 2,887,078 Operating -loss (249,657) Nonoperating income (expense): Interest income 23,298 Loss on disposal of asset (1,265) 22,033 Net loss $ (227,624) See Notes to Financial statements. -3- Bakersfield Centennial Garden & Convention Center Statement of Changes in Retained Deficit Year Ended June 30, 2000 Retained deficit, beginning of year $ (594,107) Net loss (227,624) Retained deficit, end of year $ (821,73D See Notes to Financial Statements. -4- BakersfieM Centennial Garden & Convention Center Statement of Cash Flows For the Year Ended June 30, 2000 Cash flows from operating activities: Operating loss $ (249,657) Adjustments to reconcile operating loss to. net cash used in operating activities: Depreciation 6,615 Increase in accounts receivable (79,333) Decrease in inventory 3,197 Increase in prepaid expenses (107,395) Decrease in accounts payable (17,645) Increase in accrued expenses 101,450 Decrease in deferred revenue (819,313) Net cash used in'°perating activities Cash flows from investing activities: Payments for purchase of property and equipment " (25,741) Interest income 23 298 Net cash used in investing activities _.(2.443) Cash flows from financing activities: Net increase in advances from the City of Bakersfield 381,034 Net decrease in cash and cash equivalents (783,490) Cash and cash equivalents at beginning of year 1.567,195 Cash and cash equivalents at end of year .$783,705 See Notes to Financial statements. -5- Bakersfield Centennial Garden & Convention Center Notes to Financial Statements Note I. Nature of Business and Significant Accounting Policies Nature of Business: The City of Bakersfield ("the City") owns the Bakersfield Centennial Garden and COnvention Center ("the Facilities"). The Centennial Garden is an arena, built by the City, which was completed and began operations in October 1998. It is the only building of its kind in the Bakersfield area. On August 6, 1997, the City issued a request for proposals for services prior to the opening of the Centennial Garden and the operation and management of the Facilities thereafter. In an agreement dated January 28, 1998, the City contracted with Ogden Entertainment, Inc. ("the Company") for these services for an initial period of five years. The contract term was subsequently extended for an additional five-year term and the agreement is effective through June 30, 2008. The Company worked during ~e January 14, 1998 through June 30, 1998 pre-opening phase and assumed management responsibilities of the Facilities on July 1, 1998. The Company was hired by the City for its expertise in the management, operation and marketing of public assembly Facilities. The Company currently manages similar Facilities throughout the United States. The Company sold its entertainment business division to ARAMARK Corporation effective June 2, 2000. The operation of the Facility is still being conducted under the Company's name. Ail contracts and leases, with the exception .of the administrative services agreement with the City, are transferable to ARAMARK Corporation. See Note 4 for terms of the administrative services agreement. The City has approved the transfer of the administrative services agreement to ARAMARK Corporation. The activity of-the Facilities is recorded in a special revenue fund of the'City's accounting records. The City owns all the assets of the Facilities and accordingly, all amounts related to the operation of the Facilities belong to the City. The Company has a fiduciary responsibility under the management agreement to maintain and operate the Facilities in the best interests of the City and the community. -6- Notes to Financial Statements Fund accounting: Enterprise Funds are used to account for operations (a) that are financed and operated .in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on .a continuing basis be financed or recovered primarily through user charges or Co) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purpose. Revenue Recognition: Suite and premium seat contracts Revenues from suite and premium seat contracts are recognized over the contract period per the c6/atract'terms. Contracts are billed twice a year with the entire contract amount payable prior to the contract period. The suite and premium seat payments are recorded as deferred revenue until earned and recognized over the contract period. Signage and advertising contracts Revenues from signage and advertising contracts are recognized'over the contract period per the contract terms. Contracts are billed according to the contract terms. Payments are recorded as 'deferred revenue until earned and recognized over the contract period. Ticket sales The Company, through its contract with Ticketmaster, sells tickets to Facility events as an agent of the event holder at the on site box office location and through telephone, intemet and outlet locations. All revenues from the sale of tickets belong to the event holder. The ticket sales are recorded as deferred revenue when sold. After the event has occurred,, settlement with the event holder takes place. The net of total ticket sales less event expenses such as facility rent and reimbursement of direct event expenses is then paid to or received from the event holder. The event ticket revenues are removed from the deferred revenue account at the time of settlement. Notes to Financial Statements The Facilities earn a ticketing fee on the sale of event tickets that take place through telephone, internet and outlet locations. Revenues are recorded as deferred revenue at the time of sale and are recognized at the time of event settlement. Event revenues Revenues from Facilities .events such as facilities rent, direct event expense reimbursements, concession commissions, parking and merchandise are recognized at the time of event settlementl Basis of accounting: The accompanying financial statements have been prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recognized when incurred. Use of estimates: ~: The preparation of financial statements in conformity with 'generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents: For purposes of reporting cash flows, cash and cash equivalents include cash on hand and amounts deposited with banks. Categories of deposit risk: In accordance with the Governmental Accounting Standard Board Statement No. 3, the City's deposits are categorized to give an indication of the level of risk assumed by the City at June 30, 2000. The categories are described as follows: Category 1 - Insured or collateralized with securities held by the entity or by its agent in the entity's name -8- Notes to Financial Statements Category 2 - Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name. Category 3 - Uncollateralized. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the entity's name). Catego~_ Carrying 1 2 3 Value Cash and cash equivalents $ 213,776 $ -0- $ 569,929 $ 783,705 At June 30, 2000, the carrying amount of f'mancial institution deposits was $783,705 and the bank balance was $1,131,320 of which only $300,000 is covered by federal depository insurance. Concentration .of credit risk: Credit is extended, in the form of accounts receivable, to customers located primarily in California. Property and equipment: Property and equipment are recorded at cost. Depreciation is computed using the straight line method over estimated useful lives of 3 years. Maintenance and repairs of property and equipment are charged to operations and major improvements are capitalized. Upon retirement, sale or other disposition of property and equipment, the cost and accumulated depreciation' are eliminated from the accounts and gain or loss is included in the statement of income. -9- Notes to Financial Statements Note 2. Deferred Revenue. Deferred-revenue at June 30, 2000 consists of the following: Suite contracts $ 404,151 Advertising contracts 172,249 Ticket sales,future events 132,845 Event deposits 53,130 Event sponsorship 22,133 Ticket rebates 4,019 $ 788,527 Note 3. Advance From City of Bakersfield ~ During the normal course of business, the City pays expenses that are allocated to the operation of the Facilities2 These expenses include payroll and related expenses for the City employees arid rent and utilities for the office space used by the Company. The amount of the advance fluctuates throughout the year depending on allocated monthly expenses and additional cash floTM needs. The advance is an inter-company account -that is eliminated in the consolidation for the.preparatiOn of the City's financial statements. The amount due at June 30, 2000 was $951,318. Note 4. Administrative Services Agreement The Co.' mpany provides administrative services for the City under an original five-year agreement, which was subsequently extended for an additional five-year period. Compensation for these services is a base fee of $150,000 for the first year, paid in equal monthly installments. The base fee increases by 3% per year each year therea.fter until the agreement has terminated. - 10- No'tes to Financial Statements In addition to the base fee, the Company receives an incentive relative to the amount of the reduction, if any, in net operating loss for each fiscal year. The incentive is calculated based upon the net operating income or loss after the base fee. The Company receives an incentive of 1) 10% of the first $350,000 in net operating loss reduced; 2) 20% of the next $500,000 in net operating loss reduced; 3) 30% of any net operating surplus in any one fiscal year. All of the incentive calculations are based upon a projected annual net operating loss of $850,000. Beginning July 1, 2003, the incentive is $25,000 for every year.the net operating loss is below $300,000. If the net operating surplus in any fiscal year reaches $350,000, then the incentive fee will cease. For the year ended June 30, 2000 the Company received $266,344 in management and incentive fees. The computation of the incentive fee is based upon the books and records of the Facilities .maintained bythe Company. The accounting records for the Facilities must be maintained in accordance with generally accepted accounting principles and industry standards. The Company is required under the agreement with {he City to have an annual audit at the end of the fiscal year. Under the management agreement with the City, the Company has the right to operate or contract with others to operate concession and catering services for the Facilities during the initial five-year term of the contract, effective through June 30, 2003. The City has not extended this portion of the management agreement. The Company has contracted with its food and beverage division to operate these services. The food and beverage division is a relatedentity under common management at the Company's corporate level. Operations of this food and beverage division are not included in the Facilities' financial statements. The. Facility is entitled to receive 35% of the first $1.2 million in gross concession receipts and 40% of receipts in excess of $1.2 million and 15% of gross concession receipts to the suites. For the year ended June 30, 2000 the Facility received $571,592 in gross concession and catering receipts from the Food and Beverage division. The Facility is entitled to receive 75% of the net novelty receipts and the Company receives the remaining 25%. For the year ended June 30, 2000 the Facility received $68,287 and the Company received $22,762 in net novelty receipts from the Food and Beverage division. Notes to Financial Statements Note 5. Commitments The Company has entered into various long-term contracts and' leases. At June 30, 2000 outstanding commitments consist of the following: Ticket sales The Company has entered into a licensed user agreement with Ticketmaster to be the exclusive provider for ticket sales for any event presented by the Company at the Facilities. Under the agreement, Ticketmaster has the authority to act as an agent for the Company for ticket sales to -the general public by any and all means including telephone, interact, and outlet locations. Ticketmaster earns fees from the ticket sales such as inside ticket charges, customer convenience charges, credit card charges, handling charges and ticket sales royalties. Some fees are subject to increases throughout the contract term. Ticketmaster collects these fees as tickets are sold and the net amount is remitted .to the Company weekly. The initial term of the agreement .- is for five years and the agreement is effective through August 31, 2003. The contract automatically renews for one two-year period unless terminated in accordance with the provisions of the contract. - Concert Promoter The Company has entered into a booking service agreement with Nederlander- Bakersfield, Inc. as the exclusive musical concert promoter for the Facilities. Nederlander has contracted to pay a minimum annual guarantee of $175,000 in facilities rent and reimbursement of direct event expenses through the concerts it promotes at the Facilities. Nederlander is entitled to 25-50% of amounts in excess of the minimum annual guarantee based upon various target levels. The facilities rent and annual guarantee amounts are subject to escalation each year over the contract period 'based upon increases in the Consumer Price Index, but not more than 4% per year. For the year ended June 30, 2000, Nederlander paid $168,642 in facilities rent less reimbursement of direct expenses with an estimated amount of $-0- due for the excess of the minimum annual guarantee. The contract year is different than the Facilities fiscal year. Therefore, the excess of the minimum annual guarantee is . allocated over two of the Facilities' fiscal years. The agreement is effective through December 31, 2003 unless terminated earlier in accordance with the provisions of the agreement. - 12- Notes to Financial Statements · Personnel services The Company has entered into an independent contractor's agreement with Staff Pro, Inc. to provide personnel services for the Facilities, which include ushers, ticket takers and security. Under the agreement,' Staff Pro, Inc. receives .the actual wages for personnel working at the Facilities plus a payroll overhead mark-up of 33.7% of the wage rate and a management fee of 10% of the actual, wages plus overhead mark-up. The Companyguarantees $30,000 for the minimum annual management fee for the initial year. The management fee is subject to negotiation on the anniversary date of the agreement. The agreement is effective through August 1,2001 unless terminated earlier in accordance with the provisions of the agreement. Maintenance staff The Company has entered into an independent contractor's agreement with Maintenance Staff, Inc. for janitorial, set-up, breakdown and related services at the Facilities. Maintenance Staff, Inc. receives a contracted hourly rate of pay for personnel working at the Facilities. The rates are subject to increases based upon increases in the state or federal minimum wage, FICA or Medicare rates. The agreement is effective through July 15,2001 unless terminated earlier in accordance with the provisions of the agreement. Hockey -lease The City has entered into a lease agreement, which has been assigned to Flying Puck, for exclusive use of the Facilities for West Coast Hockey League (WCHL) games. Flying Puck has agreed.to pay a minimum of $160,000 per season for use of the Facilities. The $160,000 consists of lease fees of $5,000 per game played plus 7.5% of ticket sales above certain levels per year, which increase over the contract term. The lease fees are subject to increase beginning in the third year of the contract and every two years thereafter based upon the Consumer Price Index adjustments. Flying Puck receives $5,000 for each suite leased for hockey tickets. For the year ended June 30, 2000, Flying Puck received $120,000 for the twenty-four suites leased. The agreement is effective through June 30, 2004 or ten days following the date the last WCHL playoffgame of 2004 is played, whichever occurs first unless terminated earlier in accordance with the provisions of the agreement. The contract has two options for renewal for terms of seven years each. Prior to the exercise of either option, the parties shall negotiate new lease fees. -13- Notes to Financial Statements Basketball lease The Company has entered into a lease agreement with the Cal State Bakersfield Foundation (Cai State) for exclusive use °fthe Facilities for Cai State University Bakersfield men's basketball games. A lease fee of $4,000 per game plus 7.5% of ticket sales above certain levels is charged for use of the Facilities. Cal State receives $2,500 for each suite leased that includes basketball tickets. For the year ended June 30, 2000, Cai State received $52,500 for suite ticket options. The agreement is effective through October 31,2001 unless terminated-earlier in accordance with the provisions of the agreement. The contract has two options for renewal for terms of five years each. Prior to the exercise of either option, the parties shall negotiate new lease fees. - 14- Barbich r , &K g_ Acco~,~y Coq~or~io~ Independent Auditors' Report on the Supplementar~ lnform_~h'on Ogden Entenainment~ Inc. Bakersfield Centennial Garden &-Convention Center Bakersfield, California The accompanying information shown on page 16 is presented only for purposes of additional analysis and is not a required, part of the basic financial statements. Our audit of the basic financial statements was made for the purpose of forming an opinion on those statements taken as a whole. The accompanying information has been subjected to the procedures applied in the audit of the basic financial statements. In our opinion, the accompany'.tdg information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. . BARB]~H/~NGC~ ~OOPER & KING By: Ge , Bakersfield August 24, 2000 5001 E. Commercenter Drive, Suite 350 * P.O. Box 11171 * Bakersfield, California 93389 · Fax (661) 631-02-i4 · (661) 651-1171 1319 Marsh Street ,~ San Luis 0bispo, California 93401 · Fax ($05) 5414024 · (805) 541-2500 Bakersfield Cen'tennial Garden & Convention Center Schedule of Operating Expenses Year Ended June 30, 2000 Full time staff $ 1,057,544 Utilities 563,322 Management fees 266,344 Equipment rental 157,126 Security 144,858 Hockey premium 120,.000 Supplies 115,408 Part time staff 81,690 Contract maintenance 79,506 Insurance 75,222 Credit card fees 52,718 Marketing 33,688 Travel 27,414 Repairs and maintenance 22,975 Telephone ' 20,418 Office supplies " 13 ;896 Priming 13,342 Professional fees 12 000 Miscellaneous 9,057 Depreciation 6 615 Postage 4 566 Uniform 4 550 Dues and subscriptions 3 366 Training 885 Employment ad fees 568 $ 2,887,078 - 16- Bm'bich crier :"[' accouauncy Corpormon Independent Auditors' Report on Compliance and on Internal Control Over Financial Reportin~ Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Ogden Entertainment, Inc. t Bakersfield Centennial Garden & Convention Center I Bakersfield, California We have audited the financial statements of Bakersfield Centennial Garden & Convention Center as of and for the year ended June 30, 2000, and have issued our report thereon dated August 24, [' 2000. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial .audits.contained in Government Auditing Standards issued by the Comptroller General of the Uni.ted. States. (.'" Compliance '{ Compliance with laws, regulations, contracts and grants applicable to Bakersfield Centennial Garden & Convention Center is the responsibility of the City's facility management company, ! Ogden Entertainment, Inc. As part of our audit, we assessed the risk that noncompliance with certain provisions of laws, regulations, contracts and grants could cause the financial statements to be materially misstated. We concluded that the risk of such material misstatement was sufficiently low'.and that it was not necessary to perform tests of Ogden Entertainment, Inc.'s compliance with such provisions of laws, regulations, contracts and grants. 5001 E. Commercenter Drive, Suite 350 · P.O. Box 11171 · . Bakersfield, California 93389 · Fax (661) 631-0244 · (661) 631-1171 1319 Marsh Street · San Lui$ Obisgo, California 93401 · Fax (805) 541-4024 · (805) 541-2500 Internal Control Over Financial Reporting In planning and performing our audit, we considered Ogden Entertainment, Inc. 's. internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the f'mancial 'statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over f'mancial reporting Would not necessarily disclose all matters in the internal control over f'mancial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over f'mancial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of management, others within the organization and the City of Bakersfield and is not intended to be and should not be used by anyone other than these specified parties. 4c zos c oo?n August 24 - 17- ADMINISTRATIVE REPORT MEETING DATE: January 31, 2001 AGENDA SECTION: Consent Calendar ITEM: 8. p. TO: Honorable Mayor and City Council APPROVED FROM: Jacques LaRochelle, Interim Public Works Director DEPARTMENT HEAD DATE: January 8, 200'i CITY ATTORNE~(//~'~/' CITY MANAGER SUBJECT: Audit Reports: 1. Acceptance of Independent Auditors' Report on Compliance with Contractual Requirements Relative to the Bakersfield Subregional Wastewater Management Plan for the year ended June 30, 2000. 2. Acceptence .of 1999-00 Transportation Development ^ct Funds Financial Statements. RECOMMENDATION: Staff recommends referral to Budget and Finance Committee. BACKGROUND: Background information for each audit report is as follows: 1. Contract requirements contained in City of Bakersfield Agreement 76-153 as amended by Agreements 76-153(5), 76-153(4), 77-44, 85-197 and 92-106 apply to operation of the Bakersfield Subregional Wastewater Management Plan. The City's compliance with contract requirements is audited on an annual basis. The current Compliance Report, issued by the outside auditors, indicates that the City complied, in all material respects, with the program's guidelines. 2. In compliance with the Kern Council of Governments Rules and Regulations, the California Public Utilities Code section 99245, and the California Code of Regulations section 6664, the attached financial statements for the Transportation Development Act Funds were prepared for the fiscal year ending June 30, 2000. The financial statement summarizes fiscal activity for the Streets and Roads Fund, and the Bikeway and ~Pedestrian Fund. The accuracy and the fairness of the presentation is the responsibility of the City. The audit firm of Brown Armstrong Randall and Reyes has issued an unqualified opinion. " No other reports were issued by the accounting firm in regards to the above audit reports. Peter C. Brown, CPA Burton H. Armstrong, CPA, ,MST Je~. ~-. R~dan, CPA/^SV November 14, 2000 Benjamin P. Reye$, CP^ Andrew J. Paulden, CPA ~,eyl. M~Cown, CE^ Mr. Nelson Smith Andrea Rutherford-Hill, CPA Assistant Finance Director City of Bakcrs~eld Finance Department 1501 Truxtun Avenue Steven R. Starbuck, CPA Bakersfield, California 9330 l Aileen K. Keeter, CPA Lynn IL Krausse, CPA Dear Nelson; Stacy L. Walters, CPA c'~,',t~ombu~sh, CP^ Enclosed is one (1) copy of the Wastewater Management Compliance Report'for' ~ M..'u~erson, cP^ the year ended June 30, 2000. 'dley M. Hankim, CPA , '- Please call if'you have any questions. ,,aianne V. Sawyer, CPA EricH. Xin, CPA Very truly Yours, Melinda A. McDaniels, CPA ~ornas.~t Vo~n~ CP^ BROWN' ARMSTRONG IL~.NDALL rome t_ Chrom~, CPA KEYES PAULDEN & McCOWN ACCOUNTANCY CORPOIL~.TION AJP:rv Enclosures i:\...\?934~audit00~Subregional Wastewater~transmittal.do¢ ME~B[R o[ SEC Practice Section o{ the American Institute o[ Certqied Public Accountants , ~~.~~~. ~ ~ ~ -.,.~l~r ,ev,~ ~" PeterC. Bmr, CPA TO the Techni~l Adviso~ Comm~ee Sum, K ~n~ ~A, ~ of the Bake~eld Subregional Wa~ewater Management Plan, the City of Bakemfield, ~e~ E. ~, C~A/ASV California, the Kern San~ation AuthoH~, ~,ja~ P. Rey~, CP~ and .the Ea~-Niles Communi~ Se~i~s Di~d~ ~d~ ~. Pa~den, CPA ~e~L ~[~o~,CPA We have applied the pro~dures enumerated below to dete~ine the CEy of Bakemfield's ~dmaRu~erfo~-~ll, CPA compiian~ with ~ffain provi~ons of ~ntra~ual requirements as specified in Ci~ of Bakemfield Agreeme~ 76-153, as amend~ by Agreements 7~153(5), 7~t53(4), 77~4, 85-197, and 92-106, regaling the Bake~eld Subregional Wa~ewater Management Plan. The~ pro~dures, which were agre~ to by the Techni~l Adviso~ Commiffee, were pedo~ed ~lely to a~i~ you in meeting the requirements of City of Bakemfield 5tev~ R. 5a~uck, CPA Agreement 76-153, as amended by Agreeme~s 7~t53(5), 76-153(4), 77~4, 8~197, ~t~n~.~ter, CPA and 92-1~; This repoR is intended for the info~ation of the Techni~l Advi~ L~ [ ~, CP.~ Comm~ee of the .Bakemfield Subregional Wastewater Management Plan, management, appropriate regulato~ agencies,' and the City Council of the C~y of Bakemfield, Sa~LWai~e~,C~A California. This restfi~ion is not intended-to Iim~ the distdb~ion of this repoR, which is a c~ ~[.~ombuCh, Cp~ ma~er of public re~. ~.~de~n, CPA We review~ a~d te~ed the City of Bake~field's ~mplian~ with ~ain provi~ons of ,,~diey~.H~,CP.~ contra~ual requirements as specified in Ci~ of Bakemfield Agreement 76-153, as amended by .Agreements 76-153(5); 7&153(4), 77-44, 85-197, and 92-106. These procedures resulted in no cu~ent year findings. Edc H. X~, CPA ~el~da.~.~lcD~ieb, CPA These agreed-upon procedures are substantially le~ in-scope than an audit, the obje~ive of which is the expre~ion of an opinion on the City of Bakemfield's complian~ ~o~s~[.Yo~CP.~ with ~ai.n provisions of ~ntra~ual requirements as specified in C~y of Bakemfield Von~eLCh~m~,CP, Agreement 76-153, as amended by Agreements 76-153(5), 76-153(4), 77-44, 85-197, and 92-1~. A~ingly, we do not expre~ such an opinion. Based on the appli~tion of the pro~ures refe~ed-to above, nothing ~me to our a~ention that ~used us to ~lieve that. the C~y of Bake~eld had not ~mpied wffh ~Rain provi~ons of ~ntra~ual r~uiremen~ as s~cified in Ci~ of Bakemfield Agreement 7~153, as amend~ by Agreements 7~153(5), 76-153(4), 77~4, 8~197, and 92-1~. Had we pedo~ additional pm~dures or had we made an audit of the City of Bakemfield's ~mplian~ with ~Rain provi~ons of ~ntra~ual requirements as specified in City of Bakemfield Agreement 76-153, as amended by Agreements 76- 153(5), 76-153(4), 77-44, 8~197, and 92-106, maxem m~ht have ~me to our affention that would have ~en re~ed to you. ;BRO~ ARMSTRONG ~NDALL · R~ES PAULDEN & McCO~ ~y: ~ndr~uldon 8akemfield, California O~o~r O, 2000 MEMB[R of SIC Practice Section of the American Institute of Certified Public Accountants ~,j~:~ ~ ~l~,J~,~L~.';.:_~lli~l~...-..;',~r~-~:~.- ~,,~ ......... :~r : ' '~' " '~:::' :" ' ';'" ' "'L~'~" ..... ~ ;~" :' ' ~':~'t.~' CITY OF BAKERSFIELD TRANSPORTATION DEVELOPMENT ACT FUNDS FINANCIAL STATEMENTS JUNE 30, 2000 AND 1999 CITY OF BAKERSFIELD TRANSPORTATION DEVELOPMENT ACT FUNDS TABLE OF CONTENTS ~" Pa,qe FINANCIAL SECTION Independent Auditor's Report ............................................................................................................. I Financial Statements Streets and Roads Fund Balance Sheets .................... ~ ....................................................................................................... 2 Statements of Revenues, Expenditures, and Changes in Fund Balances ................................................................................................................................ 3 Bikeway and Pedestrian Fund Balance Sheets ..................... 4 Statements of Revenues, Expenditures' and Changes in Fund Balances (Deficit) ................................................................................................................. 5 Notes to Financial Statements .....:. ............................................................................ . ....................... 6 Other Reports Auditor's Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing 'Standards and the Rules and Regulations of the Transportation Development Act ........................................................................ 8 RANDALL REYEsPAULDEN · . ; CERIIHED PUBLIC ACCOUHIAHIS · 5h er ?eterC. ~r~,'n,C?^ INDEPENDENT AUDITOR'S REPORT' Burton H..-~r~s~n~;. CPA, MST TO the City Council leto.' E. Randall, C?^/^BV City of Bakersfield B,nia~in ~. Reyes, C?^ Bakersfield, California ^ndre~¥ !. ?aulden, C?^ ~'e:'!..~*,,'n.C?^ We have audited the accompanying financial statements of the Streets and Roads FUnd, and .~ndrea Rut~er~ord-Hill, C?A the Bikeway and Pedestrian Fund of the City of Bakersfield, California, as of ,June :30, .2000 and 1999, and for the years then ended. The financial statements are the responsibility of the Cityof Bakersfield, California's, management. Our responsibility is to.express an opinion on these financial statements based on our audit. Steven R. $:arbuck, .~leen ~. K~eter, C?^ We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plsn and perform the audit to obtain reasonable assurance about L:~R.~ausse, C?^ whether the financial statements are free of material misstatement. An audit includes Sta~'L. Wa~ters, C?^ examining, on a.test basis, evidenoe supporting the amounts and disclosures in the financial statements. An audit also includes assess ng. the accounting principles used and significant C~.~.~LTnomburgh,.C?^ estimates madg by management, as well as evaluating the overall financial statement Ioan.~.l..~er$on, CF^ presentation. We believe that our audit provides a .reasonable basis for our opinion. As discussed in Note 1, the financial statements present only the Streets and Roads Fund ulianne\tSa,,~.'e~,CP.~ and the Bikeway and Pedestrian Fund and are not intended to present fairly the financial Eric H. ×~. C?A position of the City of Bakersfield, California, and the results' Of its operations and the Cash XleIinda .,..~:~aniel~. C?^ flOWS of its proprietary fund type in conformity with generally accepted accounting principles. Th~a.~.~l.~oung, C?A In our opinion, the financial statements referred to in the first paragraph present fairly, in all vonie L C'~,r~an, C?^ material respects, the financial position of theStreets and Roads Fund'and the Bikeway and Pedestrian Fund of the City of Bal~ersfield, California, as of,June :30, 2000 and 1999, and the results of its operations for the year then ended in confoFmity with generally accepted accounting principles. In accordance with Government Auditin~ Standards, we have also issued reports dated November ?, 2000 on our consideration of the Streets and Roads Fund, ~nd the Bikeway and Pedestrian Fund.of the City of Bakersfield, California's, internal control over financial reporting ~nd our tests of its ~ompliance with certain provisions of laws, regulations, contracts and grants· BROWN ARMSTRONG RANDALL REYE$ PAULDEN & McCOVVN ACCOUNTANCY CORPORATION · November 7. 2000 A~EM~ER of SIC Practice Section of the American Institute of Certified Public Accountants CITY OF BAKERSFIELD . STREETS AND ROADS FUND BALANCE SHEETS JUNE 30, 2000 AND 1999 2000 1999 ASSETS Cash with City Treasurer $ 2,136 $ 3,974 Accrued Interest Receivable 39 44 TOTAL ASSETS $ 2,175 $ 4,018 FUND BALANCE Unreserved $ 2,175 ~; 4,018 TOTAL FUND BALANCE $ 2,175 $ 4,018 The accompanying notes are an integral part of these financial statements. 2 CITY OF BAKERSFIELD STREETS AND ROADS FUND '" STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEARS ENDED JUNE 30, 2000 AND 1999 2000 1999 Revenues Interest Income $ 157 S 189 Expenditures Streets and Roads 2.000 270 Deficiency of revenues over expenditures (1,843) (81) Fund Balances at beginning of year 4.018 4.099 Fund Balances atend of year $ 2.175 $ 4.018 The accompanying notes are an integral part of these financial statements. 3 CITY OF BAKERSFIELD BIKEWAY AND PEDESTRIAN FUND BALANCE SHEETS ~: .' JUNE 30, 2000 AND 1999 ~" 2000 1999 ASSETS Cash with City Treasurer $ - $ 191,360 Accrued Interest Receivable 570 549 Due from Local Agencies 61.997 9.386 TOTAL ASSETS $ 62,567 $ 201,295 LIABILITIES AND FUND BALANCE (DEFICIT) Liabilities Accounts Payable $ - $ 7 Due to KernCOG 2,490 45,558 Due to General Fund 59,443 - Deferred Revenue -. 1.079 155.959 .: Total Liabilities ~ 63,012 201,524 Fund Balance (Deficit) Unreserved (445) (229) TOTAL LIABILIITES AND FUND BALANCE (DEFICIT) S 62.567 $ 201:295 The accompanying notes are an integral part of these financial statements. 4 CITY OF BAKERSFIELD TDA FUNDS BIKEWAY AND PEDESTRIAN FUND STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICIT) FOR THE YEARS ENDED JUNE 30, 2000 AND '1999 2000 1999 Revenues Local Transportation Funds $ 209,646 $ 16,586 Investment Income (Loss) (216) 1,805 Total Revenues 209,430 18,391 Expenditures Pedestrian and Bicycle~ 209,646 18,620 Deficiency of revenues over expenditures (216) (229) Fund Balances (Deficit) at beginning of year (229) Fund Balances (Deficit) at end of year $ (445) $ (229) The accompanying notes are an integral part of these financial statements. 5 CITY OF BAKERSFIELD TRANSPORTATION DEVELOPMENT ACT FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 AND 1999 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Transportation Development Act (TDA) Funds of.the City of Bakersfield (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described-below. Description of the Reportin,q Entity The TDA.Provides funding of public transportation through regional planning and programming agencies. Funds are allocated to the City through the county transportation planning agency, Kern Council of Governments (KERNCOG). The TDA Funds account for the City of Bakersfield's share of the Transportation Development Act allocations, which are legally restricted for specific purposes as detailed in applicable sections of the Public Utilities Code. As the TDA Fund's financial statements do not include all funds and-comP°nent units of the City, they are not intended to present fairly the financial position and 'results of operations of the City in conformity with generally accepted accounting principles..The financial statements are intended to reflect the financial position, results of operations and compliance with the Transportation Development Act only for the Streets and Roads Fund ~i and the Bikeway and Pedestrian Fund. ".- Basis of Accountin.q The City uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. The operations of the TDA funds of-the City are accounted for in a separate set of self-balancing accounts that comprise the Funds' assets, liabilities, fund balance, revenues and expenditures. The Streets and Roads Fund and the Bikeway and Pedestrian Fund are accounted for as special revenue funds within the governmental category using the modified accrual .basis of accounting whereby revenues are recognized when they become measurable and available and expenditures are recognized when the liabilities are incurred. The City reports deferred revenue on its balance sheet. Deferred revenues adse when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. In subsequent periods, when both revenue recognition criteria.are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE,~ (Continued) Interfund ReceiVables/Payables During the course of operations, numerous transactions occur between individual funds for goods, provided or services rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet. Short-term interfund loans are classified as "interfund receivables/payables." Fund Equity Designated fund balances represent tentative plans for future use of financial resources. Comparative Data Comparative data for the prior year are presented in the accompanying financial statements in order to provide an understanding of changes in the fund's financial position and operations. NOTE 2 - CASH AND INVESTMENTS Cash balances of the TDA fundsare pooled with those of other funds and invested by the City to maximize investment opportunities and yields. Investment income resulting from this pooling is allocated among the funds based upon each respective fund's average cash balance in relation to the aggregate investment balance. Further information regarding the City's cash and investment may be found in the City's ..... Comprehensive Annual Financial Report. NOTE 3 - DEFERRED REVENUES The Local Transportation Fund (LTF) and State Transit Assistance Fund (STAF) allocate funds to the City to fund its Transportation Development Act (TDA) operation. The TDA requires that any funds not used must be returned to their source. LTF and STAF allocations are considered earned when they are properly spent on approved projects. Allocations received but not earned are recorded as deferred revenues. The following table summarizes the changes in the deferred revenue account for the fiscal years ended June 30,: 2000 1999 Bikeway and Pedestrian Fund: Deferred Revenue, beginning of year $ 155,959 $ ' 54,760 Funds Received 7,033 153,400 · TDA Funds Allowed (157,015) (6,643) Funds Returned to KernCOG (4,898) (45,558) Deferred 'Revenue, end of year $ 1,079 ~ 155,959 4200 Truxtun Ave., Suite '-'~ "'"i:""~!~'RANDALL REyES PAULDEN &McCowN ' .., [~kersfiekI,Me_me~: ~[o~[~e.com '661'3~4'4971~f°rni0~ 661'3~4'499~9~3309~"~'~ · lei 661'746'2680.' [~ 661'?46T/18 Peter C. Broxvn, CPA Burton H. Armstrong, CPA, REPORT ON COMPLIANCE AND ON INTERNAL }err,.'E. Randall, CPA:'.-~B\' CONTROL OVER FINANCIAL REPORTING BASI:.D ON Beniarain E Reyes, CPA AN -AUDIT OF FINANCIAL STATEMENTS PERFORMED IN .-kndrew J. Paulden. CPA ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND THE RULES AND REGULATIONS OF THE Harvey J. McCox,'n, CP.A TRANSPORTATION DEVELOPMENT ACT .&ndrea Rutherford-Hill, CPA To the City Council City of Bakersfield Bakersfield, California Steven R. Starbuck, CPA Aileen K. Keeter, CPA We have audited the financial statements of the Streets and Roads Fund and the Bikeway Lynn R. ~rausse CP.~ and Pedestrian Fund of-the City of Bakersfield, California, for the year ended,June 30, 2000, Stao'L. Walters CPA and have ·issued our report thereon dated November 7, 2000. We conducted our audit in '- ChmM.~ornb~rgh, CP.~ accordance with generally accepted auditing standards and the Government Auditing Standards, issu. ed by the Comptroller General of the United States. Our audit was further ~oanM. Anderson, C?A made to determine that allocations made and expended by the City were made in ~dlev M. Hankms, C?.~ accordance with the Transportation Development Act (TDA). Those standards require that J,lianne x: Sa,?er, C?.~we plan and 'perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Eric H. Xin. CPA Nielinda ..k. McDaniels. CPA Compliance ThomasM.~'o=g, CP.~ AS part of obtaining reasonable assurance about whether the City of Bakersfield's TDA financial statements are free of material misstatement, we performed tests of its compliance Vor~e L. Ch,oman, CP.', with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and matedal effect on-the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do no express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reportin.q In planning and performing our audit, we considered the City of Bakersfield TDA's internal control :over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over 'financial reporting that.might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of-the internal control components does not reduce to a relatively Iow level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. 8 M[MBER of SIC Practice Section of the American Institute at Certified Public Accountants This report is intended for the information of management, the City Council, the Kern Council of Govemments, and the State Controller's Office. However, this report, which is a matter of public record and its distribution is not limited. BROWN ARMSTRONG RANDALL REYES PAULDEN & McCOWN ACCOUNTANCY CORPORATION Bakersfield, California November 7, 2000