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HomeMy WebLinkAbout07/10/1995 B A K E R S F I E L D  Tandy, City Manager Patricia J. DeMond, Chair : Dolores Teubner Irma Carson Kevin McDermott AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMI'I-rEE Monday, July 10, 1995 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order at 12:15 p.m. Present: Patricia J. DeMond, Chair; Councilmember Irma Carson; Councilmember Kevin McDermott 2.APPROVAL OF JUNE 2, 1995 MINUTES Approved as submitted. 3.PRESENTATIONS None 4.PUBLIC STATEMENTS None 5. DEFERRED BUSINESS A. ASSESSMENT DISTRICT DISCLOSURE NOTICE Kevin McDermott began by expressing concerns about the BAR's (Bakersfield Association of Realtors) proposal being too vague with regard to disclosure of the APPRO~EI) AIJGII$, 15, 1995 FILl ~0P~r AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 10, 1995 Page -2- amount of the assessment. Discussion ensued regarding how specific the disclosure needs to be and whether or not it is appropriate for disclosure to take place during escrow or prior to opening of escrow as the City's ordinance requires. Irma Carson indicated that by having disclosure during escrow rather than prior to opening escrow, that the buyer is not provided with all of the information needed to make an offer on a home. Pat had concerns about the BAR's language which allows the seller to say they don't know if there's a lien on the property. She felt that the information was available to the seller and, therefore, the seller should be required to definitively say whether or not there's a lien and what the amount of the assessment is. She felt that if disclosure did not come soon enough and was not definitive, an unsophisticated buyer may feel too intimidated to stop the escrow process. Alan Tandy stated that with the increasing use by developers of assessment districts for basic infrastructure, the City is under increased pressure to create a disclosure process for buyers affected by these assessments. In addition, clarification was provided with regard to how the different types of home sales would be affected by the City's ordinance versus the BAR's proposal on disclosure. The BAR felt that new home sales should be covered by strict disclosure, but resales shouldn't because it is often too difficult to determine what the assessments are and if liens are present on the property. Pat DeMond felt that the tax bill on the property would provide this necessary information with the exception of homes sold prior to receipt of the first tax bill. She was concerned about how disclosure would work for these cases. Alan Tandy stated that this information was available through the Finance Department. Kevin McDermott stated that he was willing to amend the City's ordinance to require disclosure prior to signing the sales contract for new construction only and resales disclosure could take place as part of the transfer disclosure document. The BIA objected to this proposal. Kevin then stated that staff could meet with the BIA to work out their concerns with this proposal prior to this amendment to the current ordinance going to the August 9, 1995 Council meeting. Alan Tandy assured the Committee that staff would meet with the BIA and BAR to resolve any concerns on the ordinance amendment prior to the Council meeting. Pat DeMond requested that the final amended ordinance be acceptable to all parties concerned prior to its presentation to the full Council. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 10, 1995 Page -3- 6. NEW BUSINESS A. COUNCIL AND EMPLOYEE TRAVEL Gail Waiters gave a brief summary of the rules and regulations which govern Council and Employee Travel. Gail distributed the budget instructions which guide departments in budgeting for reimbursable expenses. She also described the guidelines used by the Department Heads to evaluate their employees' travel requests which include whether or not attendance is valuable to the City, if the travel is needed to keep current in their field, or if they serve on the governing board for a professional organization. Once the requests are submitted as part of the proposed budget, the City Manager's office reviews the requests to determine whether or not they are reasonable, evaluate the impact on the overall department budget and the value of the travel to the organization. Gail distributed two Administrative Policies governing granting of business leave and mileage reimbursement. Gail added that all travel is itemized in the departmental budget request, both in and out-of-state travel. Alan indicated that review of the actual travel expenses is monitored and audited very carefully by the Finance Department. Irma asked what the mileage reimbursable rate is now, and Gail answered that it is currently $0.30. Irma asked about how the Council agrees on the amount of travel for each Councilmember. Gail responded that Council travel is governed by the same rules and regulations as set out by a Budget and Finance Committee Policy established in May of 1984. B. CONTRIBUTIONS TO OUTSIDE AGENCIES Irma wanted to know whether or not the City Council had a policy on distributing money to outside agencies to support their operations. Alan Tandy indicated that the City Council may use a particular philosophy to guide decisions on contributions; however, no written policy exists. The unwritten philosophy has been to make contributions for capital costs only, rather than operating costs. Kevin McDermott confirmed this point and Pat Demond indicated that a written policy might constrain the flexibility of the Council in making exceptions and responding to special cases. Irma was concerned that non-profit organizations might not be aware of this and, therefore, might not know that their requests will be considered. Pat DeMond stated that all groups have access to the Council to make requests and that many groups have had requests considered over the years. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 10, 1995 Page -4- C. CRITERIA FOR ESTABLISHMENT OF PUBLIC SWIMMING POOLS Lee distributed a memo regarding the history of development of public swimming pools. He indicated that no formal policy exists other than the recommended guidelines for swimming pool location included in the General Plan. Irma asked what is the process if an area of the City wanted a pool. Lee indicated that they could submit a request which staff would evaluate and make a recommendation to the City Council. Pat asked if new pools would have to be financed through an assessment district. Alan Tandy stated that it has been over 30 years since the City built a public swimming pool since the pool at Silvercreek was donated by the developer. Lee Anderson stated that an assessment district would probably be required to finance the capital costs and then a maintenance district used to pay for maintenance costs. Kevin McDermott added that any new pools should probably be built in partnership with a school in order to share in the costs and the use. 7. ADJOURNMENT The meeting was adjourned at 2:00 p.m. cc: Honorable Mayor and City Council