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HomeMy WebLinkAbout04/11/1994 BAKERSFIELD Ala~andy, City/Mana~e~r ) Kevin McDermott, Chair Staff: Gall E. waiters ~. Patricia J. DeMond Randy Rowles AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, April 11, 1994 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order 12:30 p.m. Present: Vice Mayor Kevin McDermott, Chair; Councilmembers Patricia J. DeMond; and Randy Rowles 2. APPROVAL OF MARCH 28, 1994 MINUTES Approved as sUbmitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 5. DEFERRED BUSINESS None 6. NEW BUSINESS ~,,.o~ ,,,,~.~? ~.~,. ,,,,,., FILE COPY AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE April 11, 1994 Page - 2'- A. and B. 1994/95 REVENUE PROJECTIONS; CASH BASIS AND SELF- INSURANCE RESERVES The Finance Director presented the Committee with a status report as to anticipated funds projected for the 1994/95 budget year. Charts were distributed noting to-date information on the City's General Fund by source of revenue and 1992/93 and 1993/94 General Fund sources and uses. In addition, information was provided on the need for a cash basis reserve and self-insurance reserve, and the importance of building a stronger reserve balance to allow for unanticipated emergencies in both of these areas. Staff suggested no action be . taken on this item at this time; however, efforts will be made to strengthen reserve levels through the budgeting process where possible. C. SURPLUS SUPPLIES AND EQUIPMENT ORDINANCE The City's current ordinance requires that anything over $400 per unit per item must go before public auction. Staff asked that the Committee support raising the limit from $400 to $1,000 to allow for more effective and efficient disposal of equipment and supplies.. Staff cited a situation wherein the City sold a piece of equipment at an auction for about $7,000, only for it to be eventually resold at a price exceeding $20,000. It is staff's opinion that the City could get a better return on surplus equipment if a broker were utilized to assist in finding the appropriate clients and the best price. Brokers have additional avenues that extend internationally, a resource that could benefit the City well. The Committee recommends the ordinance return to the Council for second reading and to include a statement that staff will provide the Council with a biannual report of the equipment that has been sold and any pertinent information regarding that sale. The biannual report does not need to be agendized for Council consideration, but can be transmitted to Council within their Friday mail packet. D. HEALTH CARE CONSULTANT SERVICES AGREEMENT Staff presented an historical perspective and overview of the services provided through a health care consultant. The current service agreement is up for renewal and the Committee wanted to determine whether the City should continue consultant services or handle the services in-house. The proposed work plan and agreement for consultant services was submitted at a cost of $93,900. The Committee suggested amending the agreement as follows: eliminate marketing the HMO plan; eliminate the actuarial valuation for the retiree health plan; and AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE April 11, 1994 Page - 3 - reduce the plan management provision. The Committee is recommending that the Council approve the amended agreement with Godwins, Booke and Dickenson for a cost of $43,900, and has recommended that staff investigate the feasibility of providing the remaining services in-house. 7. ADJOURNMENT The meeting was adjourned at 2:00 p.m. Others in attendance: City staff: Alan Tandy, City Manager; Judy Skousen, Acting City Attorney; Gail Waiters, Assistant City Manager; John W. Stinson, Assistant City Manager; Gregory Klimko, Finance Director; Joe Lozano, Public Works Equipment Superintendent; and Darlene Wisham, Purchasing Officer. cc: Honorable Mayor and City Council GEW:jp