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Home My WebLink About05/23/2005 B A K E R S F I E L D Mike Maggard, Chair Irma Carson Harold Hanson Staff: John W. Stinson SPECIAL MEETING NOTICE BUDGET AND FINANCE COMMITTEE of the City Council - City of Bakersfield Monday, May 23, 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 MAY 11, 2005 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Review and Committee recommendation on City Auditor Proposals - Klimko B. Staff report and Committee recommendation on requests for funding - Stinson a. Bakersfield Symphony Orchestra b. Valley Fever Vaccine Project of the Americas C. Committee discussion and recommendation regarding setting next meeting date/meeting schedule - Stinson 5. COMMITTEE COMMENTS 6. ADJOURNMENT DRAFT- B A K E R S F I E L D _~ (~_~ ~K~ ~ Mike Maggard, Chair Staff: John W. Stinson Irma Carson For: Alan Tandy, City Manager Harold Hanson AGENDA SUMMARY REPORT · SPECIAL MEETING BUDGET AND FINANCE COMMI'R'EE Wednesday, May 11,2005 · 1:15 p.m. City Manager's Conference Room - City Hall 1. ROLL CALL Called to' Order at 1:20 p.m. Present: Councilmembers Mike Maggard, Chair; Irma Carson and Harold Hanson 2. ADOPT FEBRUARY 9, 2005 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Review and Committee recommendation on City Auditor Proposals Assistant Finance Director Nelson Smith explained requests for proposals were sent out for City auditor services. He introduced the auditors who would be making presentations to the Committee regarding providing auditing services to the City for fiscal year ending June 30, 2005, with optional years 2006 through 2009. Justin Morales, representing M. Green and Company LLP, gave a presentation on· their firm's abilities and experience and provided an overview of their proposal. They have offices located .in Dinuba, Visalia, Hanford and Tulare with 60+ employees. The organization haS over 50 years of local presence in the Central Valley. Their proposal for a full scope audit for fiscal year ending June 30, 2005 was 513 hours at a cost of $43,268. D AFT · AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Wednesday, MAY 11, 2005 Page - 2 - j ~, Ben Reyes, representing Mayer Hoffman McCann, gave a presentation on their proposal. Their firm conducts business nationwide and has an office in Bakersfield, which would be handling the audit for the City. They have 55+ professionals based in Bakersfield. Their proposal is for 746 hours at a cost of $72,230 to perform the audit for fiscal year ending June 30, 2005. Finance Director Klimko explained City staff actually prepares the financial report, except for the notes, and presents it to the City auditor to audit the numbers and . make recommendations on any adjustments staff needs to make. Committee Members Carson and Hanson questioned the different amount of hours the firms had in their respective proposals and the difficulty in making a recommendation to pay the additional cost for the same audit services. Committee Chair Maggard queStioned if there were a difference in the scope and breadth of tl~e analysis of the audit by each firm. Finance Director ·Klimko stated he felt that both firms were qualified to perform the City audit. He noted the Council has stated a preference to hire local firms when possible and one firm, Mayer Hoffman McCann, has office space locally. He asked the firms if they would be willing to sign a contract limiting their cost increases for future years to the CPI. Both agreed with the condition there are no major problems in future audits or new requirements for additional work from the Accounting Standards Board. Committee Chair Maggard suggested this be take. n under advisement and brought back to the Committee for further consideration. The Committee unanimously approved. 5. NEW BUSINESS A. Staff report and Committee recommendation on requests for funding a. Bakersfield Symphony Orchestra b. Valley Fever Vaccine Project of the Americas Assistant City Manager John Stinson explained included in the packet were the letters of request for contributions; the· Council's policy to consider contributions only to the Bakersfield Senior Center, the BakerSfield Museum of Art and the Bakersfield Symphony. A fax, which had been provided to the Council, was handed out from Roger Mclntosh requesting serious consideration of funding the effort to find a vaccine for Valley Fever. .City Manager Alan Tandy Pointed out although the Council policy was to fund the three non-profits, the State budget crisis and the financial constraints it placed on BUDGET AND FINANOE OOMMITTEE MEETING Wednesday, MAY 11, 2005 Page - 3 - the City made it necessary to cut the funding for non-profits with the exception of the Bakersfield Senior Center as its funding is from a Federal source. Milt Younger, President of the Board of Directors for the Bakersfield Symphony Orchestra, made a presentation on behalf of the Bakersfield Symphony Orchestra and the request to restore the funding for the Symphony to provide for the use of City facilities. The request was for a contribution of $50,000 for the 2005-06 season. In the past the City contributed $46,000 'per year to cover the rent at the Convention Center; however, rental rates have increased. Committee Member Hanson spoke in support of restoring the funding for the Symphony as outlined in the policy agreed to by the Council on September 19, 2001. Committee Member Carson was in support of restoring the funding, if it were possible within the proposed budget. Committee Chair Maggard was in agreement, but would like to have the exact costs to fund the rental for'a set amount of concerts before making' a recommendation on funding the Symphony. The Committee requested the City Manager to provide the information and recommended this item be on the next Committee agenda for action. Pauline Larwood, on behalf of the ValleY Fever Vaccine Project of the Americas, made a presentation on the request for a $50,000 contribution from the City to develop a vaccine to reach the point where human trials may be possible, which could be paid over five years. Ms. Larwood pointed out that as the City is a large employer, getting a vaccine developed would be very beneficial for City employees. Committee Member Carson expressed this is a very worthwhile cause and she would 'be willing to help with fundraising; however, the City does not have a role in the health field. The County is responsible for health issues and has a Health Department with funding, which serves all the citizens of Kern County in the fight against diseases. Committee Member Hanson 'expressed the Council has a policy of not providing operational costs for non-profits, which all have worthwhile causes such as 'this research project. If the Council were to fund one health issue, it would be compelled to consider requests from all health agencies. AGENDA SUMMARY REPORT BUDGET AND FINANGE COMMITTEE MEETING Wednesday, MAY 11,2005 Page - 4 - Committee Chair Maggard also felt this research was important to the citiZens of Bakersfield and question if there might be some vehicle available where the employees could have an opportunity to donate. The Committee requested staff to research how the employees of the City could be made aware of the need for funding the research for a vaccine and how employees could designate donations through the United Way if they had a desire to do so. This item will be brought back to the Committee at its next meeting. B. Committee discussion and recommendation regarding setting next meeting date/meeting Schedule The Committee unanimously decided to set a meeting on Monday, May 23, at 10:00 a.m.. 6. COMMITTEE COMMENTS 7. ADJOURNMENT The meeting adjourned at 3:00 p.m. Attendance: .Staff: City Manager Alan Tandy; Assistant City Manager John W. Stinson; City Attorney Ginny Gennaro; Finance Director Gregory Klimko; and Assistant Finance Director Nelson Smith Others: Milt Younger and John Farrer, Bakersfield Symphony Orchestra; Pauline Larwood, Valley Fever Vaccine Project; Jerry E. Randall; Ben Reyes and Jennifer Hoffman, Mayer Hoffman McCann P.C.; Justin Morales, Jr., CPA, M. Green and Company cc: Honorable Mayor and City Council S:~JOHN\Council Committees\05Budget&Finance\05mayl 1summary.doc B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM May 20, 2005 TO.' BUDGET AND FINANCE COMMITTEE THROUGH: ALAN TANDY, CITY MANAGER ~-~ FROM: JOHN W. STINSO~,~A~SISTANT MANAGER SUBJECT: CITY AUDITOR PROPOSALS At the May 11th Budget and Finance Committee meeting the Committee reviewed proposals from the accounting firms of M. Green and Company, and Mayer Hoffman and McCann. The firms made presentations before the Committee regarding their proposals and providing information regarding their experience performing municipal auditing and how they would approach the City of Bakersfield's audit. Staff believes based on their proposals, presentations and experience, both firms are qualified to perform the audit for the City and can do a good job. M. Green and Company proposes to perform the full scope audit for an annual fee of $43,268 and an estimated 513 hours to perform the audit. Mayer Hoffman and McCann proposes to perform the full scope audit for an annual fee of $72,230 and an estimated 746 hours to perform the audit. The City's previous audit firm Brown Armstrong charged the City $45,000 each of the past two years it performed the Audit. The last time audit proposals were received in March 2000, two firms submitted proposals - Brown Armstrong estimated 900 hours, with a discounted cost of $39,500 and the other firm was Conrad and Associates, who estimated 775 hours, with a cost of $49,600. It is important to note,' that over the five year term of engagement proposed by the City (assuming the city exercised its option to extend the contract) the cost differential between the two firms would be over $150,000 taking into account likely CPI fee adjustments. City of Bakersfield - Audit Proposals Auditor Cost Comparison for Full Scope Audit for the Fiscal Year Ending June 30, 2005 ,M Green Mayer Hoffman and Company LLP McCann PC Hours Cost Hours Cost MajOr Components of the Audit: City Financials (CAFR) 345 $ 29,075 412 $ 40,867 RDA Financials 73 .6,094 112 10,397 PFA Financials 35 2,978 106 9,907 Single Audit Report 46 3,935 98 9;230 Wastewater Compliance Report 14 1,186 18 1,829 Totals - Full Scope Audit . 513. . $ 43,268. . 746. , $ 721230 Hours Hours Estimated Hours by staff level: Partner / Shareholder 86 56 Manager 111 66 Supervisor 121 312 Staff 195 312. Totals 513 746 B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM May 20, 2005 TO: BUDGET AND FINANCE COMMITT E,~..~ THROUGH: ALAN TANDY, CITY MANAGER /~'./ ~ FROM: JOHN W. STINSO'N,'~SISTANT ~!,~' MANAGER SUBJECT: REQUEST FOR FUNDING BAKERSFIELD SYMPHONY At the May 11th Budget and Finance Committee meeting the Committee reviewed a request from the Bakersfield Symphony for the City.to make a $50,000 contribution. The Committee indicated their support of the Symphony but requested additional information regarding the rental costs for the Symphony's before further considering their request. A spreadsheet showing those costs prepared by SMG is attached. It is a break even proposition so there is no "profit" to give back. The Committee discussed the application of the City Council policy adopted in 2001 regarding requests by non-profit groups for financial assistance. That policy limited assistance to non-profits to one-time rather than ongoing operating expenditures which are tied to high priority CounCil goals, included a requirement for matching funds, and only provided operating funds for agencies where there has been a on-going relationship with the City (the Bakersfield Symphony, the Bakersfield Museum of Art and the Bakersfield Senior Center). Additionally, as a result of recent budget actions by the state the City has its own needs and priorities to consider, including vital public safety services which are not currently fully funded. During the past fiscal year contributions to the Symphony and Museum had to be eliminated due to .budget circumstances and are not currently included in the proposed 2005-06 budget. The Committee may wish to carefully weigh granting the request of the Symphony since it is likely that if the City makes contributions to one non-profit, others (such as the Museum or other groups) may also make requests. Based on the above information, staff is recommending that any contribution to the Symphony be considered as part of the budget adoption process. With multiple competing requests coming in, weighing them on a comparative basis seems the most fair way to set priorities. Symphony 2004-2005 Profit & Loss Symphony Holiday Symphony Symphony YPC Symphony Symphony Nutcracker Pops Symphony Symphony YPC Symphony Symphony Sep 11 Oct 12-13 Oct 16 Nov 13 Dec 9-12 Dec 14 Feb 19 Mar 19 April 5-6 April 9 Ma¥14 Total Revenue Rent 1,620 2,430 2,446 3,158 7,907 2,001 2,865 1,787 2,430 2,270 2,865 31,780 Reimbursed Expenses 726 3,467 993 1,379 13,818 1,109 855 855 3,467 855 855 28,378 Suite Sponsorship Concession 106 109 1,389 206 134 134 134 134 2,347 Novelty Ticket Rebate Parking 230 700 100 ' 660 776 245 124 124 700 124 124 3,905 sub 2,681 6,597 3,539 5,307 23,890 3,561 3,978 2,900 6,597 3,383 3,978 66,410 expenses Event Labor - Custodial 407 1,491 405 163 1,540 652 793 775 1,491 793 793 9,305 Event Labor - Event Staff 643 1,342 856 566 7,556 450 550 550 1,342 550 550 14,954 Event Labor - Fire & Med. 231 231 231 924 ' 231 231 231 231 231 231 3,003 Event Labor - Stagehands 1,341 631 782 1,299 7,995 871 1,213 782 631 1,213 1,213 17,971 Event Labor - Other Advertising Credit Card Fees 25 25 25 1,250 25 25 25 25 25 1,450 Event Expenses - Other Supplies 30 60 30 30 300 30 30 30 30 30 30 630 Catering Equipment Rental Utilities 1,200 2,400 1,200 1,200 4,800 1,200 1,200 1,200 2,400 1,200 1,200 19,200 sub 3,878 5,924 3,528 3,514 24,365 3,460 4,042 3,593 6,125 4,042 4,042 66,513 net (1,197) 673 11 1,793 (475) 102 {64) (693) 472 (659) (64) (104) CITY MANAGER'S OFFICE MEMORANDUM May 17, 2005 T O: BUDGET AND FINANCE C 0 M M ITTE~ ~ //J~/ THROUGH: ALANTANDY, CITYMANAGER ~:F7 / FROM: JOHN W. STINSO~SISTANT CITY MANAGER SUBJECT: REQUEST FOR FUNDING VALLEY FEVER VACCINE PROJECT At the May 11th Budget and Finance Committee meeting the Committee reviewed a request from the Valley Fever Vaccine Project to make a $50,000 contribution to their project. As recognized by members of the Committee, their project is a very worthwhile endeavor deserving of community support..But also recognized by the Committee was the fact that there are numerous worthwhile causes in the community and it would be difficult to choose to support some while denying others. It was with that dilemma in mind that the City Council adopted a policy in 2001 regarding requests by non-profit groups for financial assistance. That policy limited assistance to non-profits to one-time rather than ongoing operating expenditures which are tied to high priority Council goals, included a requirement for matching funds, and only provided operating funds for agencies where there has been a on- going relationship with the City (the Bakersfield Symphony, the Bakersfield Museum of Art and the Bakersfield Senior Center). Additionally, as a result of recent budget actions by the state the City has its own needs and priorities to consider, including vital, public safety services which are not currently fUlly funded. During the past fiscal year contributions to the Symphony and Museum had to be eliminated due to budget circumstances and are not currently included in the proposed 2005-06 budget. Committee members suggested that although the City may not make a contribution, it may be possible for individual City employees to make voluntary contributions toward the Valley Fever Vaccine Project directly through the United Way as a designated contribution, rather than the City making a contribution and asked that staff research that possibility. City employees may now voluntarily participate in the United Way through payroll deductions. Employees would have to designate contributions to the Valley Fever Project for the funds to pass through to that group. Setting up a separate payroll contribution just for the Valley Fever Vaccine Project is not recommended, since other, groups would want to have similar access to City Employees and the City has a limited ability to process payroll deductions in the payroll system. The Committee must also recognize in, using the United Way for contributions it would be inappropriate to encourage employees to make contributions to one specific agency over others. The Valley Fever Group could provide information as other participating agencies do through the United Way regarding their efforts. Based on the above information, staff is recommending that the City not make a contribution to the Valley Fever Vaccine Project. COCClDIOIDOMYCOSiS CASES REPORTED BY HEALTH JURISDICTIONS BY REPORT YEAR* IN CALIFORNIA, 1990 - 2005* (as of 03/28/2005) LHD YEAR I BERKELEY! ,: :,i? ,.~ 148 AMADOR BUTTE CALAVERAS COLUSA CONTRA COSTA EL DORADO FRESNO GLENN 911 IMPERIAL INYO LAKE 571 LASSEN 1169 MADERA 2 2 11 4 1 4 2 2 4 2 2 32 12 MARIN 28 110 MARIPOSA MENDOCINO MERCED MONO 14( MONTEREY NAPA NEVADA ORANGE PLACER 3 2 1 1 2 I 1 1 1 2 14 RIVERSIDE 11--~- 4~ 40 4~ 3~ 3~ 1-~-13 22 28 30 2~ 26 47 ~ 435 SACRAMENTO 5 2 6 9 4 8 11 6 13 4 4 10 10 14 8-- 10~ SAN BENITO 3 --- ~ ~- 2 2 2 1 1 1 1 2 2 23 SAN BERNARDINO 9 3 68 35 25 16 16 7 2 10 13 15 19 13 34 5 285 SANDIEGO 17 17 58 64 56 37 41 23 44 35 61 58 63 56 63 8 69~3 SAN FRANCISCO 6 3 7 13 7' 4 3 3 3 3 2 3 1 3 3 -- 64 SAN JOAQUIN 5 39 63 85 22 18 16 15 10 13 8 14 24 28 360 SAN LUISOBISPO 4 17 234 157 90 33 53 38 28 32 44 74 42 75 75 30 996 SAN MATEO 5 6 8 2 3 2 2 3 2 2 11 --3 (~-- 54 SANTA BARBARA 2 2 36 24 1~ 4 6 1 5 ~ 12 13 11 14 4 15~00 SHASTA 1 1 1 3 -- SISKIYOU 1 .... 6 SOLANO 3 5 2 6 8 9 6 6 6 4 1 1 2 59 SONOMA 1 3 1 1 1 3 2 ~-- ~15 STANISLAUS 6 7 15 12 . 22 21 12 11 11 12 4 310 2(~ 2~ -- TEHAMA 1 I 1 ~- 4 TRINITY 1 ........ TULARE 15 32 401 337 192 1~.3 80 77 71 70 64 70 96 143 160 36 1951 VENTURA 7 4 58 52 244 23 13 11 23 19 23 2~ 1~ 41 8~---~ 5 -- * Year of report is not necessary year of onset; please consider 2004-05 ~r~vi~inn~l -- ~' ~: some local health departments are within counties but for reporting purpose, they are independent. For example, Berkeley City is within Alameda County; please add Berkeley and Alameda together for Alameda County total. Long Beach and Pasadena are within Los Angeles County; please add them to the Los Angeles for the County total. ~: Humbolt and Del Norte were joined health juridiction until May of 1990. Source: California Department of Health Services. ./' · 2005-2006 Opening of our 74rd Season · 31st anniversary of Conductor John Farrer a 40 concerts per year Audiences of over 130,000 and 35,000 students and growing' Concert for America 9-11-04 Pops Series Opener Record,Attend 2004 Holiday Pops Concert m Traditional Holiday Pops concert.with'ia · .twist...or was it a twang- Our 27th Nutcracker lohn Farter, Music Director presents 2i3~# Captivati.n.g ~ .... : / / CI,.VLC with the Bakersfield Convention Center' I IO I Truxtun Avenue Friday, December 10, 7:30 p.m. ] Saturday, December l l, I:00 p.m. ] Saturday, December 11, 7:30 p.m. ] Sunday, December '12, 1:00 p.m. ] Pelletier FOL! ndation Rain for Rent Ravi & Naina Patel Foundation A Brown Bag ConCert Open Seating, NO TiCketRequired! (Record Attendance this year) Young People's Concerts Musical Field Trips Four concerts in October Four concerts in December-Nutcracker Four Concerts in April Academic Decathlon Concert Participation from over 2500 high school students and 130 California High ELD Schools Vision for success (~!' :.'!S~:~? :!:-! :]].z endeavors The Steering committee is no.w formed to, focus on the future and building a Performing arts ~center .... If you have any information and would like to be involved please call me... Thank you on Behalf of the Bakersfield · Symphony Orchestra Sheri Horn Bunk Director of Development 661-232-7928 shornbunk@bakersfieldsymphony.org Wal'Mart Young People's Concerts .14 concerts a year (Fall, Christmas, Spring) elementary students-attendance of 250'0 per concert BCSD, Panama, Home School, Lake Isabella, Taft Name on 4000 flyers Banner opportunities Merchandising/coupon Point of purchase in store display Overhead logo thank-you and verbal mention all concerts