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HomeMy WebLinkAbout08/22/2005 B A K E R S F I E L D Mike Maggard, Chair Irma Carson Harold Hanson Staff: John W. Stinson MEETING NOTICE BUDGET AND FINANCE COMMITTEE of the City Council - City of Bakersfield Monday, August 22, 2005 - 10:00 a.m. City Manager's Conference Room, Suite 201 Second Floor - City Hall, 1501 Truxtun Avenue, Bakersfield, CA AGENDA 1. ROLL CALL 2. ADOPT JULY 11, 2005 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Review and Committee recommendation on Fire Station design - Tandy/Fraze 5. NEW BUSINESS A. Staff report and Committee recommendation on the request for funding from the Bakersfield Museum of Art - Stinson B. Staff report and Committee recommendation on the sale of the City Farm - Tandy C. Staff report and Committee recommendation on potential sale of the City Airport - Tandy D. Staff report and Committee recommendation on the Independent Auditor's Report on Transportation Development Act Funds for Fiscal Years Ended June 30, 2004 and 2003 - Rojas 6. COMMI'I'I'EE COMMENTS 7. ADJOURNMENT S:~JOHN\Council Committees\05Budget&Finance\05aug22agen-doc B AK ER S FI EL D _~ ~ _~~ Mike Maggard, Chair Staff: John W. Stinson Irma Carson For: Alan Tandy, City Manager Harold Hanson AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMI'n'EE Monday, July 11,2005 · 10:00 a.m. City Manager's Conference Room - City Hall 1. ROLL CALL Called to Order at 10:05 a.m. Present: Councilmembers Mike Maggard, Chair; Harold Hanson; and Irma Carson 2. ADOPT MAY 23, 2005 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Review and Committee recommendation on Park Development Fees Assistant City Manager John Stinson explained Park Development Fees are reviewed annually and updated using a cost of living adjustment based upon the Construction Cost Index. In addition, this year staff is proposing the fees be adjusted for the cost of park equipment, which has gone up more than reflected by the Construction Cost Index. Also, new this year and proposed to be included in the Park Development Fee is the addition of a cost component of $30 per unit for wet playgrounds in park sites. Based on community interest, staff recommended one wet playground in every four sections of land, which is within about a one-mile radius of any residence and equals approximately one wet playground per every six parks. Staff recommended increasing the current $1,275 per dwelling unit fee to $1,430, which is a one-time cost per dwelling unit for homebuyers in new developments. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Monday, July 11, 2005 Page - 2 - Brian Todd, Building Industry Association of Kern County, spoke and was in agreement with the increases using the Construction Cost Index and the general understanding that park equipment has increased. However, he questioned adding new amenities such as wet playgrounds as the fees are mitigation fees for new development which have an impact on affordable housing. He requested the Committee keep this concern in mind when adding new amenities to the park development fee. Committee Member Hanson made a motion: 1) the Committee approve the staff recommendation to increase the Park Development Fee from $1,275 to $1,430 per dwelling unit; 2) recommend to the Council the minimum park standard provide that one in every six parks include a wet playground; and 3) the City be prudent regarding the addition of park elements to do everything possible to minimize the bottom line impact on affordable housing and yet recognize the demands and needs of future homebuyers. The Committee unanimously approved the motion and requested staff to forward the proposed fees to the Council. B. Staff report and Committee recommendation regarding Fees Pursuant to the Cost Recovery Program Assistant City Manager John Stinson provided an overview of the information included in the Committee packet. Every year staff reviews the fees included in the Cost Recovery Program fee schedule. Included in the packet was a list of fees to which staff recommended applying a cost of living adjustment using a 3% Consumer Price Index (CPI) factor for this year's fee cycle. Also included was a list of eleven fees that Public Works has identified during their review which warranted a proposed fee increase of more than the basic 3% CPI factor. Brian Todd, Building Industry Association of Kern County, spoke regarding the annual COLA increases based upon the cost of construction as they concern development fees and was in general agreement with the increases. However, .he questioned the justification for increasing fees beyond the annual cost of living increases. Committee Chair Maggard requested Public Works staff provide more information to the Committee on the calculations used, above the cost of living increases, for the proposed increases to the six fees listed with the justification "based upon historical data." The six proposed fee increases were for: 1. Final Tract Maps 2. Grading Plan Check 3. Lot Line Adjustment and Owner Initiated Parcel Merger 4. Parcel Map Waiver 5. Right-of-Way Vacation, Summary Vacation Only 6. Street Encroachment Permit DRAFT AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Monday, July 11,2005 Page - 3 - City Manager Alan Tandy explained staff is also requesting a modification to the fire hydrant fee. Currently developers buy fire hydrants from the City Fire Department. The hydrants are warehoused and sold at Fire Station No. 1. This is actually charged on the fee schedule under which the developer is paying a fee for the cost of the fire hydrant--this fee actually includes installation, inspection and testing. Staff is proposing to privatize the sale of the hydrants to_allow developers to buy fire hydrants directly from two sources in the private sector who will sell only City-approved hydrants. If approved, the fee on the fee schedule would then be modified to cover the true cost to locate, inspect/test and maintain fire hydrants. Fire Chief Ron Fraze stated he is in agreement with this change as currently the fire personnel storing, selling and loading the hydrants are the same staff which must respond to emergency calls. Committee Member Hanson made a motion the Committee approve the proposed fee schedule increases with the exception of the sixfees listed above, and approve the privatization of sales and modification of the fee as it pertains to fire hydrants. The Committee unanimously approved the motion. The Committee requested staff to forward the Resolution and Cost Recovery Program fee schedule to the City Council. C. Staff report and Committee recommendation on Promoting Curbside Recycling Solid Waste Director Kevin Barnes gave a report. There was a letter from the Keep Bakersfield Beautiful Committee requesting the City step up its efforts to promote curbside recycling with marketing, advertising, promotional discounts and incentives. Staff has been promoting curbside recycling and has used some of the suggestions from the Keep Bakersfield Beautiful Committee. Citywide there are approximately 3,000 residents participating in the curbside recycling program. In some of the feedback, service cost for the blue recycling toter in relationship to service cost for the regular trash tan toter has been suggested as the reason for not participating in curbside recycling. However, due to the distances traveled, staff did not recommend changing the current fee for curbside recycling. The Committee took no further action. 5. COMMITTEE COMMENTS 6. ADJOURNMENT The meeting adjourned at 11:45 a.m. D2AFT BUDGET AND FINANCE COMMITTEE MEETING Monday, July 11, 2005 Page - 4 - Attendance: Staff: City Manager Alan Tandy; Assistant City Manager John W. Stinson; City Attorney Ginny Gennaro; Finance Director Nelson Smith; Recreation and Parks Director Dianne Hoover; Fire Chief Ron Fraze; Assistant Public Works Director Jack LaRochelle; Solid Waste Director Kevin Bames; Public Works Civil Engineer Marian Shaw; and Park Construction and Facility Planner Ken Trone Others: Michael Turnips~ed, Kern Tax; Brian Todd, Building Industry Association of Kern County; Mark Howell, KUZZ/KCWR; Colon Bywater, North Bakersfield Recreation and Parks District (NOR) cc: Honorable Mayor and City Council S:~OHN~Council Committees\05Budget&Finance~bf05jull 1summary.doc B A K E R S F I E L D OFFICE OF THE CITY MANAGER MEMORANDUM TO: Alan Tandy, City Manager /~~ August 1 7, 2005 / FROM: John W. Stinso~,~?sistant City Manager SUBJECT: Funding Request by Bakersfield Museum of Art On June 22, the City received a request from the Bakersfield Museum of Art for funding in the amount of $40,000 in support of their visual arts outreach through the Art Smart program and to expand the Museum on the Move mobile museum. This request was referred to the Budget and Finance Committee for consideration and recommendation to the City Council. The City has made previous contributions to the Museum and the Museum was included in the Council policy regarding requests for financial assistance, as one of the organizations that had an ongoing relationship with the City and could be considered for funding as part of the City budget process, based on available funding and subject to City Council review and approval. In FY 2002-03 the City contributed $25,000 'towards the Museum's programs. In FY 2003-04 the City agreed to an amount reduced by 10%, of $22,500 due to the uncertain state budget situation. Due to the state capture of funds, contributions to non-profits that year were stopped mid-year and the Museum actually received $10,000 of the amount originally designated to them for that year. In FY 2004-05 due to the continuation of the difficult budget situation no contribution was made to the Museum. No funding was recommended for the Museum or other non-profit group in the FY 2005-06 budget proposed to the City Council. After adoption of the FY 2005-06 budget by the Council, the Council considered a request for funding by the Bakersfield Symphony and approved a contribution of $50,000 from Council Contingency to that organization. Should the Council consider funding the Museum's request, staff would recommend not exceeding the annual amount previously contributed of $25,000. Similar to the Symphony contribution, any contribution to the Museum would need to be funded from Council Contingency. The FY 2005-06 budget currently has $114,000 remaining in Council Contingency. S:~lOHN\Council Committees\05Budget&Finance~Vluseum of Art - Funding Request Memo.doc ..... RESOLU ON NO. 1 $ 2- 0 1 A RESOLUTION ESTABLISHING COUNCIL POLICY FOR EVALUATING REGUESTS FOR FINANCIAL ASSISTANCE FROM NON-PROFIT GROUPS. WHEREAS, the City Council from time to time receives requests for financial assistance from non-profit groups; and WHEREAS, the City Council must evaluate these requests for financial assistance to determine 'the ability of the City to consider such requests in accordance with Council goals and given limited City resources; and WHEREAS, the City Council requested that the Budget and Finance Committee of the Council review a policy for evaluating requests for'financial assistance from non-profit groups; and WHEREAS, the Budget and Finance Committee has reviewed the proposed policy and is recommending its adoption; and WHEREAS, a resolution of the City Council is necessary to adopt Council policy for - financial assistance from non-profit groups; NOW, THEREFORE, BE IT RESOLVED as follows: 1. All the foregoing recitals are true and correct. 2. The Council may consider requests for financial assistance from non-profit groups if the request for financial assistance meets at least one of the following criteria: a. It is for one-time expenditures rather than ongoing costs; b. It is for capital expenditures rather than operating costs; .. c. It is for one-time activities which are tied to specific high Priodty City Council goals; d. It is for use of City facilities by the non-profit group. Requests for financial assistance from non-profit groups not meeting the criteria set forth in this paragraph will not be considered for funding. 3. Non-profit groups requesting financial assistance shall provide current financial information including Balance Sheets, Profit and Loss Statements and other pertinent financial information to support their funding request. The non-profit group shall provide evidence of matching funds so the City does not bear the entire cost of the proposed project or activity. 4. The Council will not consider assistance to non-profit groups for ongoing (-7" operation and maintenance purposes with the exception of the following groups with which the City has had an ongoing relationship, The Bakersfield Senior Center, The Bakersfield Museum of Art and The Bakersfield Symphony. The sources and amounts of funds to be contributed annually to these three organizations is to be recommended by the City Manager as part of the City's annual budget, subject to City Council review and approval. 6. The Council authorizes the City Manager to notify groups who make requests for financial assistance which do not conform to this policy, that their request is outside Council policy. I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on _.~o_.~.~ by the following vote: Ayes: Council Member Benham, Carson, Couch, Hanson, Maggard, Salvaggio, Sullivan Noes: Council Member ~,1= ~ Abstain: Council Member ~J o ~ ~ Absent: Council Member IJ~ F~ CITY CLERK AND EX OFFIQ~D of the Council of the City of Bakersfield Mayor APPROVED AS TO FORM: BART J. THILTGEN City Attorney Bakersfield Museum of Art P.O. Box 1911, BakersfieK{, CA 93303-1911 2{~0~JUN22 ~D~ a: 3~ 1930 R Street, Bakersfield, Califl~rnia 93301 ~ .5 I,'--'~..'?-~ ,*. ,~ ..... ~,, =,'.*,,,-n,.,,-,ELD C:l , CLr_tir, 661.323,7219' fax 661,$23.7266 June 20, 2005 Bakersfield City Council: Mayor Harvey Hall; Council Members Sue Benham; Irma Carson; David Couch; Harold Hanson; Mike Maggard; Zack Scrivner; and Jacquie Sullivan 1501 Truxtun Avenue Bakersfield, CA. 93301 Honorable Members of the City Council: The Bakersfield Museum of Art has a mission to promote the visual arts for the diverse population of Kern County through fine art exhibits and educational opportunities. In its recent accreditation report, the American Association of Museums noted, "The Museum is rapidly becoming the primary delivery agent of visual arts activities for the schools of both Bakersfield and the larger metropolitan area of Kern County, and is working with the school systems to ensure educational programs offered .comply with existing State standards of delivery". Because arts education continues to be under-funded as a result of State funding cuts, the Museum actively pursues partnerships to bring arts education to our youth. For example, the Art Smart program is a unique and exciting way to introduce the experience of the visual arts. In this program, the students interact with artists and teachers who lead hands-on art projects that follow the Calitbrnia Teachers Standards tbr the Visual and Pertbrming Arts. The program is geared specifically toward students who cannot come to the Museum. Art Smart strives to improve the quality of life for children and their families by extending the opportunity for children to improve academically. Beginning July 7 through September 29, 2005, the Chevron Gallery will feature some of the creative art developed by the students in Art Smart this past year. We hope you visit the Museum and view this rich talent. Research substantiates the fact that the arts are critical to education and learning. In a case study published by the President's Committee on the Arts and the Humanities, it is stated that, "Although the arts remain undervalued in many school districts, this is changing as the · connection between the arts and learning becomes clear and evident...the arts are not an educational option; they are a basic." The child who creates art and gains approval for it also gains seltresteem. Exposure to art not only enhances self- esteem, but more significantly, enhances the academic performance of youngsters. The Bakersfield Museum of Art is the only accredited fine arts museum within Kern County. The Museum has self-mandated to reach rural school districts and traditionally underrepresented populations with memorable arts experiences that engage the intellect as well as the senses. Since its inception in 1999, Art Smart remains loyal to its original goal---a positive venue for self-exploration, positive expression, pride in heritage, and artistic self-esteem. Art Smart offers a hands-on fine arts experience after school on the school premises. Participation by the students, chosen by their teachers and administrators, is voluntary. The most remarkable short- term impact of Art Smart is that attendance is nearly 100% on Art Smart days. In collaboration with Kern County School Districts, Art Smart traveled to Mountain View Middle School in Lamont twice weekly, to Myrtle Avenue Primary in Lamont, to Bear Mountain Elementary in Arvin, to five Bakersfield City schools for a month each, and to Lost Hills this past year. Initial underwriting in 2000 by the City Council enabled Art Smart to groTM significantly since its first offering in 1999. Your foresight and generosity helped lay the foundation for this vital program. The Docent Program has been in existence over 20 years. Tours are led by a trained docent, who takes groups of 40 students at a time through exhibits, followed by a hands-on project that is directly related to the current exhibits. Docents led more than 1,100 students through gallery tours during the 2004-2005 academic year. Museum on the Move is based on the Docent Program, and is our latest community addition. This mobile museum provides both an exhibit and a hands-on arts project. The van travels to school districts that would not ordinarily have the chance to visit the Museum. Once at the school, a trained Museum art facilitator displays the 20 reproductions representing 10 significant periods of art history in a library or classroom setting. The art facilitator provides a 30- minute hands-on art lesson based on one of the periods of art previously discussed. This past year the Museum on the Move program was presented to more than 900 students throughout Kern County. The Museum also offers Experience Art, a summer art camp for children ages 6-12. This eight- week camp, which has enrollment capacity of 480 students, is designed to teach 2-D and 3-D art lessons. "Campers" receive art instruction, art history lessons, introduction to exhibits, and creative instruction. We currently provide 25 students who cannot afford the camp with full scholarships: Side-by-Side was introduced in 2000 for 25 pre-kindergarten children. This program offers two morning sessions for one week for 3-5 year olds, together with their primary caregiver. Each session offers art projects that encourage parent and child to work together to complete. Lesson plans are available and the parent can easily replicate each project at home. Mano con Mano, the bilingual community outreach component of Side-by-St'de, is a free, off- site, hands-on arts enrichment program geared for pre-K children and their parents or primary caregivers taught by a qualified bilingual arts instructor. Last year we held these classes at 2 Mercy Charities Housing near Casa Loma and at the Family Resource Center in East Bakersfield. Adult Art Classes are the latest addition to our educational programs for high school age and above. We offer ongoing series of classes and weekend workshops on such areas as basic painting, figure drawing, and animation. A Lecture Series is planned this year, as we begin opening every Thursday night for the benefit of the members and community,at-large. This monthly lecture series will focus on various art forms and topics of interest. Your support will also allow us to expand our Free Family Day event to two Saturdays this year. On these days the Museum is open to everyone free of charge, offering a self-guided tour packet that explains each exhibit, a hands-on art project for children, and entertainment. We continue to be accessible to the community by offering free days for both families and seniors each month. We hope all the above programs demonstrate our high level of activity and commitment throughout the City and Kern County to address some important needs of our youth. Since we rely almost exclusively on grants and donations for these activities, we are requesting your consideration of a $40,000 grant in support of our efforts to extend visual arts outreach through the 36-week Art Smart program and to expand the Museum on the Move mobile museum. These two programs will take fine arts education to students in every District of Kern County during the 2005-06 academic year. Please see the attached brochure about our educational programs. We are proud of the efforts we have made to integrate the fine arts into our community. The Bakersfield Museum of Art seeks to increase awareness and understanding of the visual arts and the important role the arts play in the successful development of our youth, in building cross- cultural appreciation, and enriching the quality of life for all people. We provide experiential and distance learning programs for'children throughout Kern County, as well as world-class art exhibits and educational programs for a broad audience. We appreciate your consideration for our request and invite you to call me with any questions concerning the Museum. Sincerely, Executive Director cc: Pamela A. McCarthy, City Clerk · Kay Meek july 11, 2005 Councilman Harold Hanson City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Harold, The Bakersfield Museum of Art has made a $40,000 request to the City Council to be considered in the upcoming budget. Receiving these funds would allow the Art Museum to continue ,,Irt Smart and Museum on the Move, two very important programs that serve our youth in their school environment. As a Director of the Bakersfield Museum of Art, I know first-hand the importance of these programs. Both are significant in that they make it possible for students who might never have an opportunity to visit a museum due to socioeconomic or logistical reasons, the opportunity to experience art in a very personal and exciting way. I have seen the joy associated with these visits, and the success that the students have achieved because they were allowed the good fortune to experience these programs. Believing that everyone deserves the chance to experience art, I respectfully request your support of the Bakersfield Museum of Art request. Sincerely, Kay Meek KM:sa ADMINISTRATIVE REPORT ITEM: TO: Honorable Mayor and City Council APPROVED FROM: Alan Tandy, City Manager DEPARTMENT HEAD DATE: August 19, 2005 .~ ClTY ATTORNEY ~.~ = ~,~.~ CITY MANAGER SUBJECT: Memorandum of Understanding City of Bakersfield and the Bakersfield Redevelopment Agency for the. _~80 Surplu~.~..~.cres of City Property Commonly Known as the 5,000 Acre Southeast RECOMMENDATION: Staff recommend,, of the ...... Idum of Understanding. BACKGROUND: The City has a uni( a gain on land long held in our oWnership, which in our "h0[i~r~al estate in value. The purpose of this memorandum and the attached'~tract is to explore the possibility of such a gain. It needs to be madei~blear tha~th~re ~s of a gain. While 14 groups have expressed some level of interest,~h~have ye~!5~en calle~ to offer guarantees. Also, the "offset" costs to. make the Wastewater ~'~d whole areal:h, yet The recommended process will determine if the potential gain can made real The as part of a 5,000-acre farm and is essentially raw land wastewater i'~spread and further treated through the growing of plants, be necessary to replace the lost mgd capacity either through, a ,~.~ ,,...::pr by providing an upgrade of the sewer plant to include tertiary in an:!~irea in the southeast part of town and is experiencing rapid The :ency desire to help stimulate the economy and encourage community develo )merit has determined that a unique opportunity exists for redevelopment of this 'e between the City and the Redevelopment Agency. The venture would allow the City to to the Redevelopment Agency, generate enough funds to meet the current and future acity needs and also provide funds that could be used by the Redevelopment Agency for additional ,ment activities. The venture plan calls for the Redevelopment Agency to purchase it from the City with certain conditions. These conditions are as follows: S:~,dmin Rpts~005~CityFarm - draft 081905.doc · 8/19/2005 11:42 AM AT:al ADMINISTRATIVE REPORT · :- The City will declare the property as surplus and sell the property to the Redevelopment Agency, taking back a note. The sales price will be determined to be the cost of the necessary sewer replacement land and any related costs associated with bringing required pipes to a new sewer farm spreading area, or the Cost of tertiary treatment equipment for the sewer plant. The final sales price will also include the amount of any' sewer funds that may be loaned to the Redevelopment Agency that would be needed by the Agency to properly zone and entitle the property such as engineering, planning and permitting costs in preparation for its resale to a private developer. This pricing procedure assures that the City's sewer fund is made completely whole in the transaction · :o The Redevelopment Agency will take the necessary steps to haVe the property entitled. A solicitation for. developer qualifications and development p?qp0sals will be conducted by the Redevelopment Agency, and a developer and developmeht ~lan will be selected. The Redevelopment Agency will negotiate and sell the propertY'to'one or mOm.selected developers. · :. The Redevelopment Agency will pay the price as outlined above to the City to replenish the sewer fund immediately upon all or part of the land to a developer. Additional net proceeds generated from the S~w~uld be retained by the Redevelopment Agency . . . ~L~?.ii:~~ ~?!, . . ... ,, ,, to be used for further redevelopment act~wt~es 4t~,would a so be,[~oss;ble for the C~ to add to the price by revenue-sharing the profit, if any is r~li~ed. T~i~'disbussion can be left open for the future. Oommunity Redevelopment law does authority lency to operate outside the project area under certain cimumstances. An a~ islative body of the community, may accept a conveyance of real property area) owned by a public entity and declared surplus by the public In the opinion of staff it ' might be funded if a gain is realized. Let us first if so is available. S:~,dmin Rpts~005~CityFarm - draft 081905.doc 8/19/200511:42 AM MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING ("MOU") is made and entered into on , by and between the CITY OF BAKERSFIELD, a municipal corporation ("CITY" herein) and the BAKERSFIELD REDEVELOPMENT AGENCY, a body corporate and politic ("AGENCY" herein), and, RECITALS WHEREAS, State of California Redevelopment Law represents a process created to assist, local governments in revitalizing blighted areas of communities; to stimulate the economy and to provide for affordable housing opportunities; and WHEREAS, City currently has three redevelopment project areas; and WHEREAS, City is .looking at the prospect of assisting development in order to stimulate the economy both inside and outside the redevelopment project areas, WHEREAS, City desires to assist 'Agency in the facilitation toward further revitalization in all redevelopment project areas; and WHEREAS, City provides wastewater facilities for the purpose of treating, reclaiming, and utilizing wastewater and its by-products in accordance with federal, state, and local requirements; and WHEREAS, among the wastewater facilities owned by the City is Wastewater Treatment Plant No. , which is located adjacent to the Southeast Redevelopment Project Area (the "Project Area"), adopted by the City on DATE; and WHEREAS, Wastewater Treatment Plant No. is much larger than needed to treat current and immediately foreseeable future demands; and WHEREAS, reco.nfiguration of Wastewater Treatment Plan No. , though the deletion, of certain acreage and the replacement of future capacity, will promote the redevelopment of the Project Area by allowing for synergistic uses of urban development, both inside and outside the Project Area; and WHEREAS, the Agency has the authority to receive land outside a redevelopment project area, including surplus land conveyed to it by the. City, and to cause the subsequent disposition and development of such land; and WHEREAS, the City and Agency are also empowered to divide the proceeds of any such disposition of land in a manner which, serves the interests of the parties; NOW, THEREFORE, incorporating the above reCitals herein, CITY and AGENCY Page I of 4 · have reached' the following understanding with respect to future actions concerning Wastewater Treatment Plant Nol : 1. Conveyance of Property to Agency. Subject to the conditions set forth below, CITY shall convey to the AGENCY such property (the "Property") as the CITY reasonably determines to be surplus, in accordance with Bakersfield Municipal Code Section 3.20.125. It is currently anticipated that the location and amount of the Property will be 1,280 acres of the '5,000-acre Wastewater Treatment Plant No. m, as designated and described in the Legal Description, attached hereto as Exhibit A, and as shown on the map attached hereto as Exhibit B. - 2. Subsequent Disposition of the Property by the Agency. Upon receipt of the conveyance of the Property, the AGENCY shall'take such steps as necessary to cause the entitlement and disposition of the Property on the private market, for the purposes of development of commercial and residential uses thereon. The disposition of the Property by the AGENCY shall be by sale at the maximum reasonable price allowed by the scope of the development contemplated therein. To the extent necessary or desirable, the AGENCY may dispose of the Property to one or more private buyers. 3. Allocation of Proceeds from the Subsequent Disposition of the Property. Upon the receipt of proceeds from the sale of the Property by the AGENCY (the "Disposition Proceeds"), the AGENCY shall pay to the CITY the amount determined to be the purchase price of the Property as between the CITY and AGENCY. The City reserves the right to retain a share of profits, if any. The CITY and AGENCY will determine the profit share amount at a later date. AGENCY may use the remaining Disposition Proceeds to assist its redevelopment activities in any existing redevelopment project. 4. . Replacement of Treatment Capacity. Upon receipt by the CITY of the amount agreed as the Purchase Price between the CI'[Y and AGENCY, CITY shall takes such steps as reasonably necessary to replace the wastewater treatment capacity caused by the conveyance of the Property to the AGENCY, and the Property's subsequent disposition to the private market. 5. Conditions to Sale and Purchase of the Property. CITY and AGENCY shall only enter into a Purchase and Sale Agreement upon the following terms and conditions: a. Environmental Review. The proposed conveyance of the Property to the Agency, and its subsequent disposition to the private sector for commercial and residential development, shall be first subjected to appropriate environmental review. b. Determination that the Property is Surplus. The CITY reasonably determines that the Property to be conveyed to the AGENCY qualifies as surplus under the Bakersfield Municipal Code. Page 2 of 4 c. Purchase Price. The purchase price for the Property, as between the CITY and AGENCY, shall be the sum of the costs'necessary to ensure the continuation of wastewater treatment at existing levels, and to replaCe the amount of treatment capacity to be. lost as the'result of the subsequent disposition of the Prbperty to the private sector, so that the CITY is reimbursed for any funds advanced in the implementation of this MOU, is made whole in its ability to treat up to 25 mgd of wastewater, which is the current capacity of Wastewater Treatment Plant No. ~. The City also reserves the right to share in pr°fits, if any, ~vith the amount to be determined at a later date. d. Continuation of Se~;vices. Prior to any conveyance of the Property by the CITY to the AGENCY, the parties shall take such steps as necessary to ensure the continuation of wastewater treatment services to those persons and entities currently being served. 6. Cooperation. CITY and AGENCY shall act in good faith and cooperate in the facilitation and implementation of the understandings stated herein. Such cooperation shall include, but is not limited to, the advancement (and subsequent reimbursement) of funds for environmental review, engineering and other planning efforts necessary to fulfill the terms of this MOU, the determination of the Purchase Price, and the. timely performance of any actions contemplated by this MOU. 7. Time is of the Essence, It is the intent of the CITY and AGENCY that the actions contemplated in this MOU shall occur as quickly as reasonably possible, in compliance with applicable law, Unless further extended by a writing approved and executed by the parties, or unless replaced by an executed Purchase and Sale Agreement between the CITY and AGENCY, this Memorandum of Understanding and all obligations thereUnder, including any obligation by the AGENCY to reimburse funds advanced for public improvements, shall expire four (4) years from the date of this MOU. 8. Assignment. This Memorandum of Understanding reflects the intent and understanding of the City of Bakersfield. and the Bakersfield Redevelopment Agency only. This MOU shall not be assigned by any party. 9. Non-Interest. No officer or employee of the CITY or AGENCY shall hold any interest in this MOU, or in any subsequent disposition of the Property. 10. Governing Law. The laws of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Kern County, California. 11. No Third Party Beneficiaries; No Commissions· There are no third party beneficiary to this Agreement, nor to the actions contemplated by this Agreement. The conveyance of the Property by the CITY, if it should occur, shall occur without the use or engagement of any broker, agent, or finder. Page 3 of 4 IN WITNESS WHEREOF. the parties hereto have caused this Memorandum of Understanding to be executed, the day and year first written above. "CITY" "AGENCY" CITY OF BAKERSFIELD BAKERSFIELD REDEVELOPMENT AGENCY By: By: HARVEY L. HALL DON I. COHEN Mayor Chair APPROVED AS TO FORM: APPROVED AS TO FORM: VIRGINIA GENNARO VIRGINIA GENNARO City Attorney General Counsel By: By: ALAN D, DANIEL ALLEN M. SHAW Deputy City Attorney Deputy Counsel APPROVED AS TO CONTENT: APPROVED AS TO CONTENT: By: By: DONNA L. KUNZ DONNA L. KUNZ Economic Development Director Deputy Executive Director COUNTERSIGNED: COUNTERSIGNED: By: By: GREGORY J. KLIMKO GREGORY J. KLIMKO Finance Director Finance Officer Attachments: Exhibit "A" legal description Exhibit "B" Assessor's Parcel Map Page 4 of 4 B A K E R $ F I E L D' CITY MANAGER'S OFFICE MEMORANDUM _ April 11,2005 TO: Irma Carson, Councilmember- Ward One FROM: Alan Tandy, City Manager SUBJECT: Possible Sale of Airport The City could apply to the Federal Aviation Administration and request that they authorize closure of the airpark. The FAA is generally negative to this subject, and has been in the past with respect to the Bakersfield Airpark. The preliminary economics of this, as best we know, would be: The City would have to reimburse federal and state governments $ 9,902,309 Estimated relocation / damage payments to leaseholders (preliminary)$ 3,000,000 Total cost: $12,902,309 The estimated appraised value of the property is $15 - $18 million - possibly less runway removal costs. Also, less the cost of removal of contaminated land, which is now encapsulated. The property is zoned industrial and should be changed to residential and commercial. The GPA would require an EIR. To pursue an application to close the airpark, the City would need security in hand for its costs. AT:rs Bakersfield Municipal Airport (L45) General Information · Usage- General Aviation · Property purchased beginning in 1985 with most recent purchase in 1997. · Federal Grants funds received through 2005 eqUals $ 9,978,309.00, State Grant Funds received is approximately $185,000.00 with City matching funds being $2,672,600.00 for a total of $12,835,909.00. · The City has invested other funds for various projects totaling approximately $200,000.00. · The City estimates current relocation costs to be $3,000,000.00 · The current total break even cost is $13,163,309.00 and with City investments the break even cost is $16,035,909.00. · Size-251.88 Acres · Runway- 4000' x 75' · Based Aircraft- Approx. 100 · Revenue- Approx. $120,000 + $10,000 State Grant · Operating Expense - Approx. $126,000 · Existing Facilities FBO - Office 1,800 sq. fi. and Hangar 13,300 sq. fi. Hangar/Office - Office 1,250 sq. ft. and Hangar 4,500 sq. ft. (approx.) Shop - 2,400 sq. ft. Restaurant (Under Construction) Office/Shop - 3,200 sq. ft. Hexagonal Hangar - 6 planes T-Hangar - 17 planes · Community Hangar - (8/- planes) Shade Structures Various Owner Hangars Various Land Leases for Owner Constructed Hangars · Above Ground .12,000 gallon Fueling Facility · Contamination from a fueling facility exists on the property. The City met all environmental requirements and was allowed to cap the contaminated area with asphalt. Another type of development may require further cleanup efforts. I City/FAA Correspondence - From March 29, 2000 through January 13, 2003 the City of Bakersfield corresponded with the FAA six times to inquire about airspace modifications and closure of the airport (L45). The City based the inquiry on safety concerns arising from two near misses between general aviation aircraft and commercial aircraft flying into Meadows Field. While the FAA took the City's concerns seriously they did not see the need for either airspace modifications or closure of the airport as federal criteria was not met. In the various correspondences the FAA has stated such things as:. · "The (FAA) mission does not include the promotion of airport closures. Before agreeing to close an airport, the FAA would have to clearly determine that the airport no longer serves the purpose for which it was created, the closure would not prevent achievement of the purpose for which the airport was first created, and the loss of the airport will actually protect and advance the civil aviation interests of the United States." · "L45 remains an integral part of the airspace and airport system." · "With 40,000 operations and more than 100 based aircraft, the L45 is an extremely important airport, not only for the Bakersfield area and the state of California, but also for the national transportation system." Closure Requirements - · City must be released froTM the federal obligations agreed to when accepting the federal grant funds. · A formal request providing sufficient justification for a release from the City's obligations requiring it to operate a public airport shall be submitted to the FAA. This shall be done on the City's behalf by any party interested in pursuing purchase of the airport property. · . The release request shall be a complete and comprehensive package detailing the justification for closure that will permit the FAA to carefully evaluate the City's' justification for a release of all its federal airport obligations. · Guidelines for the release request can be found in Title 14 Code of Federal Regulations Part 155 and FAA Order 5190.6A Chapter 7. Financial Considerations- · FAA Grants funds in the amount of $9,978,309.00 shall be reimbursed. However, 'the land "must be disposed of at fair market value and the federal portion of the proceeds must be deposited in the Trust Fund," and "the amount of the sale proceeds that is proportionate to the federal share of grants awarded to L45 must be returned to the Trust Fund." It is possible that the FAA may require the City to reimburse a larger amount based .upon the sale'and a percentage of City verses FAA investment. · The City estimates a cost of $3,000,000.00 to relocate the existing tenants at the airport. An additional $500,000 will likely be required upon completiOn of the restaurant construction. · The current total break even cost is $12,978,309.00 and with City investments the break even cost is $15,850,909.00. FAA Contacts (Western Pacific Region) - · Mark McClardy, Manager Airports Division ' (310) 725-3600 · Tony Garcia, Compliance Specialist (310) 725-3634 · John Mi!ligan, Supervisor- Standards Section (SoCal) (3!0) 725-3621 Summary of Leases - 12 owner Hangars ($50/mo.) · 6 Tie-Downs ($40/mo.) · 7 Community Hangar ($100/mo.) · 17 T-Hangar ($160/mo.) · 6 Hex-Hangar ($180/mo.) · 5 Shadeport-Watts ($65/mo.) · 4 Shadeport-Quad ($75/mo.) · 1 Gate Lease ($50/mo.) · 16 Ground Lease (varies up to $60/mo.) · 8 Commercial Leases ($3,519.09/mo.) · Restaurant Ground Lease ADMINISTRATIVE REPORT TO: Honorable Mayor and City Council APPROVED FROM: Raul M. Rojas, Public Works Director DEPARTMENT HEAD DATE: May 24, 2005 'CITY ATTORNEY '" '~~Z.~L.~''~ CITY MANAGER SUBJECT: Acceptance of 2003-04 Transportation ~Development Act Funds Financial Statements. RECOMMENDATION: Staff recommends referral to Budget and Finance Committee. BACKGROUND: 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 s'tatements for the Transportation Development Act Funds were prepared for the fiscal year ending June 30, 2004. The financial statement summarizes fiscal activity for the Bikeway and Pedestrian Fund, and the Public Transit Fund. The accuracy and the fairness of the presentation is the responsibility of the City. The audit firm of Macias, Gini & Company has issued an unqualified opinion. No other reports were issued by the accounting firm in regards to the above audit report. May 24, 2005, 4:26PM G:\GROUPDA'I~ADMINRPT~005\06-08\Transp Dev Act Funds Finandal Stm.doc CITY OF BAKERSFIELD Transportation Development Act Funds Independent Auditor's Reports, Fund Financial Statements and Supplementary Information For the Fiscal Years Ended June 30, 2004 and 2003 MACIAS GINI ~ COMPANYLLP. 'CERTIFIED PUBLIC ACCOUNTANTS ~ MANAGEMENT CONSULTANTS CITY OF BAKERSFIELD Transportation Development Act Funds For the Fiscal Years Ended June 30, 2004 anal 2003 TABLE OF CONTENTS Page(s) Independent Auditor's Report ................................................................................................ i ........ i. 1-2 Fund Financial Statements: Balance Sheets - Bikeway and Pedestrian Special Revenue Fund ........................................................... 3 Balance Sheets - Amtrak Operations Special Revenue Fund ............................................... · .................... 4 ' Statements of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Bikeway and Pedestrian Special Revenue Fund ........................ ........................................................... 5 Statements of Revenues, Expenditures and Changes in Fund Balance - Amtrak Operations Special Revenue Fund ............................................................................................. 6 Notes to the Fund Financial Statements Supplementary Information: Budgetary Comparison Schedule - Bikeway and Pedestrian Special Revenue Fund ............................. 10 Budgetary Comparison Schedule - Amtrak Operations Special Revenue Fund ...................... ' ............... 11 Notes to Supplementary Information ' 12 Other Report: Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and the Transportation Development Act .......................................................... 13-14 4A...,AS GINI ~ COMPANYu_. )00 $ Street, Ste. 300 :cramento. California 95816 916.928.4600 PHONE 916.928.27S5 ~:AX To the Board- of Directors Kern Council.of Governments Bakersfield, California To the City Council City of Bakersfield . Bakersfield, California iNDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations SpeCial Revenue Fund of the City of Bakersfield, California (City), as of and for the fiscal years ended June 30, 2004 and 2003, as listed in the table of contents. These financial · statements are the 'responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the COmptroller General of the United 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 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 audits provide a reasonable basis for our opinions. As discuSsed in Note 1, the financial statements present only the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2004 and 2003, and the changes in its financial position for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund of the City as of June 30, 2004 and 2003, and the respective changes in financial position thereof for the fiscal years then ended in conformity with accounting )rinciples generally accepte_d i~.t~e U_n. ited States of America.. .. ~ ..... 1 'In accordance with Government Auditing Standards, we have also issued our report dated J~nuary 20, .2005 on our consideration of the City's internal control over financial reporting as it relates to the Bikeway and pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund and our tests of its compliance with certain provisions of laws, regulations, contractS, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral Part of an audit performed in accordance with Governmental Auditing Standards and should be considered in assessing the results of our audit. Our audit' was made for the purpose of forming opinions on the financial statements of the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special RevenUe Fund. The supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements of the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund. This information has been subjected to the auditing procedures applied in the audit of the fund financial statements and, in our opinion, is fairly stated in all materi.al respects in relation to the fund financial statements taken as whole. Sacramento, California January 20, 2005 2 'CITY OF BAKERSFIELD Bikeway and Pedestrian Sp.e'c!a! Revenue Fund Balance Shee~s' June 30, 2004 and 2065 2004 2003 ASSETS · ' Current assets: Due from other governments $ 28,167 Total assets $ 28,167 $ - LIABILITIES AND FUND BALANCE (DEFICIT) Current liabilities: Due to City's General fund $ ' 31,795 - Tota,l current liabilities 31,795 Fund balance (deficit), (Note 4) (3,628) Total liabilities and fund balance (deficit) $ 28,167 $ - The notes to the fund financial statements are an integral part of these statements. '. 3 · CITY OF BAKERSFIELD Amtrak Operations si3ecial Revenue Fund __ ______Balance' She~t~ ..... : '~ June 30, 2004 'and 2003 2004 2003 ASSETS Current assets: Cash and investments (Note 2) $ 153,665 $ 83,275 Accrued interest receivable : 904 947 Total assets $ 154,569 $ 84,222 LIABILITIES Current liabilities: Accounts payable $ 13,341 $ 19,320. Deferred revenue (Note 3) 141,228 64,902 (' Total liabilities $ 154,569 $ 84,.222 The notes to the fund financial statements are an integral part of these statements. · 4 £~- CITY OF BAKERSFIELD' ~" Bikeway and Pedestrian Special Revenue Fund " Statements of Revenues, Exp~h'ditul-e~ and Changes in Fund Balance (Deficit) For the Fiscal Years Ended June 30, 2004 and 2003 2004 2003 REVENUES. Local transportation fund $ 28,167 $ 44,045 EXPENDITURES Bikeway and pedestrian 31,795 27,741 Change in fund balance (deficit) (3,628) 16,304 Fund balance (deficit), beginning (16,'304) Fund balance '(deficit), ending $ (3,628) $ The notes to the fund financial statements are an integral part ot these statementS.. CITY OF BAKERSFIELD Arn~'ak Operations Special Revenue Fund. -.'- Statements of Revenues~ EXPenditm:e~"~d Ci~hnges in Fund Balance For the Fiscal Years Ended June 30, 2004 and 2003 ....... 2004 2003 REVENUES Local transportation fund $ 196,371 $ 202,756 Interest and other '!,769 5,089 Total revenues 198,140 207,845 EXPENDITURES Public transit 198,140 207,845 Change in fund balances _ Fund balance, beginning _ Fund balance, ending $ $ _ The n°t~, to the fund financial statements ar.e an'integral part of these Statemenis '": CITY OF BAKERSFIELD - '.' Transportation Development Act Funds Notes to the Fund Financial Statements For the Fiscal Years Ended June 30, 2004 and 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial .statements of the Bikeway and Pedestrian Special Revenue 'Fund and the Amtrak Operations Special Revenue Fund (collectively, the Transportation Development Act (TDA) Funds) of the City of Bakersfield (City) have been prepared in. conformity with accounting principles generally accepted in the United States of America as applied to governmental 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'. Reporting Entity The TDA provides funding for public transportation through regional planning and programming agencies. Funds are allocated to the City through the county transportation planning agency, Kern Council of Governments, The TDA Funds account for the City's share of.the TDA allocations,..which are legally restricted for specific'purposes as detailed in applicable sections of the Public Utilities Code. The TDA. Funds of the City are the Streets and Roads Special Revenue Fund (no activity in recent years), Amtrak Operations Special Revenue Fund and the Bikeway and Pedestrian Special Revenue Fund, and are included in the basic financial statements of the City. The TDA Funds are presented combined as a nonmajor governmental fund (State (TDA) Transportation Special Revenue Fund in the City's basic financial statements. The accompanying financial statements present only the TDA Funds of. the City and are not intended to present fairly the financial position and changes in financial position of the City in conformity with accounting principles generally accepted in the United States of America. Fund Accounting The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations .of each.fund are accounted for wRh a separate Set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based uPon the purposes for which they are to be spent and the means by which spending activities are controlled. The Bikeway and Pedestrian Fund and the Amtrak Operations Fund are governmental funds specifically categorized as special revenue funds. Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.. Measurement Focus and Basis of Accounting The Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund are reported using' the current financial resources, measurement focus and the modified accrual basis of accounting. Under this method, revenues are.recognized when measurable and available. Local ' 7 CITY OF BAKERSFIELD Transportation Development Act Funds Notes to the Fund Financial Statements (Continued) For the Fiscal Years Ended June 30, 2004 and 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus and Basis of Accounting (Continued') Transportation Fund revenue is recognized when all eligibility requirements imposed by the provider have been met. Revenues are accrued when their receipt occurs Within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded'when a liability is incurred, as under accrual accounting. Deferred Revenue .. The Bikeway and Pedestrian Special Revenue Fund and the Amtrak .Operations Special Revenue Fund report deferred revenue on their balance sheets. Deferred revenue for these funds arises when potential - revenue does not meet both the "measurable" and "available" criteria for recognition in the current period or when funds have been received prior to the eligibility requirements being met. In subsequent periods, when the revenue recognition criteria are met, or when the City has a legal filaim to the resources, the'. liability for deferred revenue.is removed from the balance sheet and revenue is recognized. Interfund Transactions The City's General Fund allocates payroll and payroll related expenditures incurred to the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund. Amounts allocated to the Bikeway and Pedestrian Special Revenue Fund for fiscal years ended June 30, 2004 and 2003 were $31,795 and $467, respectively. Amounts allocated to the Amtrak Operations Special Revenue Fund for fiscal years ended June 30, 2004 and 2003 were $11,358 and $19,212, respectively. In addition, premiums paid for various risk management programs to the Self Insurance Internal Service Fund by the Amtrak Operations Special Revenue Fund for the fiscal years ended June 30, 2004 and 2003 were $11,354 and $10,455, respectively. Risk Management The City administers various risk management programs, some of which relate to the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund. The Finance Department transfers funds from the Amtrak Operations Fund to the Self Insurance Fund for the purchase of property insurance for the Amtrak Station per direction from the City's Risk Manager. The City's risk management programs are reported in the governmental activities and internal service funds in the City's basic financial statements. NOTE 2 - CASH AND INVESTMENTS '- ....... - Cash balances of the TDA funds am.pooled with those of other funds of the City..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. .~ ~' ~.~,-' ,..: · ' ..':,~ 8 ": CITY OF BAKERSFIELD _ · -:. Transportation Development Act Funds Notes to the Fund Financial Statements (Contin~hd) For the Fiscal Years Ended June 30, 2004 and 2003 NOTE 2 - CASH AND INVESTMENTS (Continued) Cash and investments for the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund include a fair value adjustment for the fiscal years ended June 30, 2004 and 2003 of $0 and $0, and $1,495 and $249, respectively. Further information regarding the City's cash and investment pool may be found in the City's basic financial statements. NOTE 3 - DEFERRED REVENUE The Local Transportation Fund (LTF) and State Transit Assistance Fund (STA) are administered by the Kern Council of Governments, which allocates funds to the City to fund its TDA operations. The TDA requires that any funds not used may be retumed to their source. LTF and STA allocations are considered 'earned when they are properly spent for eligible projects. 'Allocations received but not earned are recorded as deferred revenue. Changes in the: deferred revenue account for the fiscal years ended June 30, 2004 and 2003 are summarized as follows: ' Amtrak Operations Special Revenue Fund 2004 2003 Deferred revenue, beginning $ 64,902 - $ 58,378 TDA Allocations received 272,697 209,280 TDA Allocations earned .. (196,371) (202,756) Deferred revenue, ending $ 141,228 $ 64,902 NOTE 4 - DEFICIT FUND BALANCE Bikeway and Pedestrian Special Revenue Fund TheBikeway and Pedestrian Special Revenue Fund 'reported a deficit fund balance due to the fact that it spent in excess of the TDA revenues allocated related to the Bike Lanes Paladino Extension. The excess was funded by borrowing funds from the City's General Fund. The City plans on using future TDA revenues to eliminate the fund deficit. sUPPLEMENTARY INFORMATION CITY OF BAKERSFIELD,..~-' Bikeway and Pedestrian Special Revenue Fund ' ':' Budgetary Comparison SchedUle. For the Fiscal Year Ended June 30,.2004 , Variance Original :.--.. Final Positive Budget Budget Actual (Negative) REVENUES Local transportation fund $ 150,000 ' $ 150,000 $ 28,167 $ (121,833) EXPENDITUREs ' " Bikeway and pedestrian 150,000 150,000 31,795 118,205 Change in fund (deficit) $ $ - (3,628) $ (3,628) Fund balance, beginning Fund balance (deficit), ending $ (3,628) See note to suppl.ementary in. formation.,~:> '. 10 ~ CITY'OF BAKEi~,SFIELD Amtrak Operafid..ns Spe6ial. Revenue Fund Budgetary Comparison Schedule For the Fiscal Year' Ended June:30, 2004 Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Locattransportation fund - $ 294,400 $294,400 $ 196,371 $ (98,029) Interest income 3,000 3,000 1,769 ( 1,23 l) Total revenues 297,400 297,400 198,140 (99,260) EXPENDITURES Public transit 297,400 339,852 198,140 141,712 Change in fund balance $ $ (42,452) $ 42,452 Fund balance, beginning - Fund balance, ending $ - See note to supplementarY information:'i'~;? -CITY OF BAKERSFIELD Transportation Development Act Funds Note to Supplementary Information For the Fiscal Years Ended June 30, 2004 and 2003 NOTE ! - BUDGETARY INFORMATION Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America .for the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund. The City Manager is authorized to transfer budgeted amounts between departments within any fund and approve reductions of budgeted amounts. Since expenditures may not exceed budgeted appropriations .at the fund level, any decisions that alter the total appropriations of any fund are to be approved by City Council. Projects budgeted within 'the fiscal year but not yet completed can be reappropriated the following fiscal year with City Manager approval. All' other unencumbered appropriations lapse.at year--end. Encumbe?ed amounts are reappropfiated in the ensuing fiscal year budget. 12 OTHER REPORT '~ACIAS GINI ~x COMPANY~.u~ ,, O0 S Street. Ste. 300 .' ' tramento. California 9S816 916.928.4600 e~oN£ . 916.928.2755 ~x To the Board of Di~-ectors Kern Council of Governments Bakersfield, California To the' City Council City of Bakersfield Bakersfield, California INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMNED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND THE TRANSPORTATION DEVELOPMENT ACT We have audited the accompanying financial statements 'of the Bikeway and pedestrian SpeCial Revenue Fund and Amtrak Operations Special Revenue Fund of the City of Bakersfield (City), California, as of and for the fiscal year ended June 30, 2004, and have issued our report thereon dated January 20, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and. Performing our audit, we considered the internal control over the City's financial reporting as it relates to the Bikeway and Pedestrian Special Rev'enue Fund and Amtrak Operations Special Revenue Fund in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over the financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable 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 caused by error or fraud 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. Compliance and Other Matters ...... · · ~:'~!. "As part of obtaining reasonable assurance about whether-the Bikeway and Pedestrian SPecial Revenue Fund and Amtrak Operations Special Revenue Funds' financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions .of laws, regulations', contracts, and grant agreements, noncompliance with which could have a direct and material effect On the determination of financial statement amounts. Our audit was further made to determine that TDA funds allocated to and received by the City were expended in conformance with applicable statutes, rules and regulations of the Transportation Development Act and the allocation instructions and resolutions of the Kern Council of Governments as required bY Section 6666 of Title 21 of the California Code of Regulations..However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and the Transportation Development Act. This report .is .intended solely for the information and use of the Kern Council-oi~ Governments City management, City Council, and the. State Controller's Office and is not intended to be and should not be used by anyone other than these specified parties. Certified Public Accountants Sacramento, California January 20, 2005 14