HomeMy WebLinkAbout04/19/2000 BAKERSFIELD
(~/'~/? '~~'~' ~f Patricia J. DeMond, Chair
Aian Tandy, City Manager Mike Maggard
Staff: Darnell Haynes Mark Salvaggio
AGENDA SUMMARY REPORT
SPECIAL MEETING
BUDGET AND FINANCE COMMITTEE
Wednesday, April 19, 2000
12:00 p.m.
City Manager's Conference Room
1. ROLL CALL
Call to Order at 12:02 p.m.
Present: Councilmembers: Patricia J. DeMond, Chair; Mike Maggard; and Mark Salvaggio
2. APPROVAL OF FEBRUARY 7, 2000 AGENDA SUMMARY REPORT
Approved as submitted.
3. PUBLIC STATEMENTS
Marvin Dean spoke regarding the Southeast Neighborhood Housing Development Group, a local
public/private partnership group. He stated that their group is eligible for CHDO funds and a letter
had been sent to Jake Wager asking for $15,000 for their infill housing project. As the City is
considering $195,000 in CHDO funds for Affordable Homes, Inc., his group is now requesting
$75,000 of those funds be set aside for the Southeast Neighborhood Housing Development
· Group's project.
Jake Wager explained he has shared with Mr. Dean that his proposal was received two weeks ago,
and processing takes at least 60 - 90 days. The $195,000 being considered today needs to be
committed with an agreement by June 30, 2000. Approving Affordable Homes' project for funding
does not preclude consideration of Mr. Dean's project when it is ready to be considered for funding.
Oscar Anthony, representing Restoration Community Project, Inc., expressed his appreciation for
the past support and is requesting additional funding assistance ($60,000 in HOME funds) to
assure completion of their 11-room multifamily housing project on 8th Street, which is planned to
start in June. Private contributions for operating expenses of $38,000 have been placed in an
escrow account. The County has also provided funding and is being asked for an additional
$60,000.
Jake Wager responded that this is an amendment to their agreement and will be going before the
Council on April 2ffh.
ADOPTED AS SUB~TTED ON I~]AY 15, 2000.
(NOTE ADDED ON ITEM 4 ' C' NO CONFLICT INTEREST AROSE) F L£ COP
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE
Monday, April 19, 2000
Page -2-
4. DEFERRED BUSINESS
A. Review and Committee recommendation on City Auditor Proposals of the five firms who
responded to an RFP, two appeared before the Committee. Burt Armstrong from Brown,
Armstrong, Randall, Reyes, Paulden & McCown presented an overview of their proposal,
including staff qualifications and experience, to provide auditing services for the City of
Bakersfield.
Ann Braun,' CPA, from Carpenter Kuhen and Sprayberry, a local firm in association with Conrad
and Associates from Irvine, spoke about the qualities, experience and auditing services they would
be able to provide to the City of Bakersfield.
The proposals being considered are for a full scope audit of the June 30, 2000 annual financial
reports of the City. It was noted that the firm of Carpenter Kuhen and Sprayberry does not have
experience in municipal audits and would rely on their association with the Irvine company. Due
to the high level of servi'ce and product satisfaction the Committee recommended the proposal from
Brown, Armstrong, Randall, Reyes, Paulden & McCown, be accepted and forwarded to the Council .
for approval.
B. Discussion and Committee recommendation regarding the proposed Joshua Park project
Larry Moxley, Rotary.Club past-president,.spoke regarding the Joshua Park project on 34th & Q,
which was started as a memorial after the death of a young boy. The land was donated by the
Alexander family. This would be a half-acre, green park with trees. The Rotary Club has
commitments for design and materials to build the park, which could then be turned over to the City
to maintain. The City originally requested a deposit of $50,000 to cover maintenance expenses
before it would accept the park. The Rotary has raised $40,000 from the community for this
purpose. This effort has taken three years and they would like to get the project started, build the
park and dedicate it to the City.
The Committee was in support of this community project and unanimously approved forwarding an
agreement to the Council to be approved at the May 24, 2000 meeting.
C. Discussion and Committee recommendation regarding the Community Development Block
Grant Five-Year ConSolidated Plan and Fiscal Year 2000-01 Annual Action Plan
Jake Wager gave a brief overview. The 30 day public review and comment period for both plans
was from March 21st and will end April 20th. Responses to four letters received have been made
and staff has met with the public speakers from the last Council meeting to address their concerns.
Committee member Maggard identified a potential conflict of ihterest due to income received from
an applicant. He was absent during discussions on that item. (No conflict arose during this
discussion.)
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE
Monday, Apd119, 2000
Page -3-
Amendments to the FY 2000/01 Annual Action Plan at this time would require another 30-day
public review and this would negate the City's ability to submit to HUD in the required time. When
adjustments become necessary the matter is handled through the CDBG amendment process.
There was a discussion regarding savings of $100,000 from completed projects. Committee
member Maggard expressed when savings are considered, he would like staff to address funding
on the amount of $25,000 for Valley Achievement Center's proposal and funding for the Bakersfield
Garden Community Enhancement Project. The Committee directed staff to bring the agreements
concerning the allocations for the Bakersfield Garden Project and KCEOC to the Budget and
Finance Committee for review.
Committee member Salvaggio Would like staff to make basic infrastructure needs such as sewers
higher on the list when considering CDBG project funding. Committee Chair DeMond requested
staff to consider future CDBG funding with regard to the water main replacement project needed
on the east side of Bakersfield to determine if it is an applicable project.
The Committee considered and unanimously approved forwarding the Consolidate Plan 2005 and
the FY 2000-01 Annual Action Plan to the Council for approval at the April 26, 2000 meeting. ~ ·
5. NEW BUSINESS
A. Audit Reports: 1) Transportation Development Act Funds Financial Statement; 2) Compliance
with State Local Transportation Partnership Program; and 3) Compliance with contractual
requirements relative to the Bakersfield Subregional Wastewater Management Plan
The Committee unanimously recommended accepting the'Audit Reports and forwarding to the
Council for acceptance, at the April 26, 2000 meeting.
B. Discussion and Committee recommendation regarding Community Development Block Grant
Program Amendment to provide funding for southeast Bakersfield market site
In the last several years Acquisition/Demolition funds from the CDBG entitlement have been set
aside in order to further City Council goals. Staff would like to transfer $150,000 to
Clearance/Demolition for demolition of the building at the blighted Bakersfield Inn site. This will
further the supermarket proposal. Staff also is requesting approval of $150,000 for the demolition
of the unreinforced masonry Brown Building at 630 Kentucky Street to reduce the blight on Baker
Street.
The Committee unanimously approved staff's recommendation and authorized staff to publish.
C. Discussion and Committee recommendation regarding agreement with Affordable Homes,
Inc. regarding use of HOME/CHDO (Community Housing Development Organization) funds
to purchase and rehabilitate HUD single family homes
Hal Rosen, President, Affordable Homes, Inc., spoke and answered questions regarding their
request for funding and the community need for this project. This application was submitted August
1999. Staff has been working with Mr. Rosen since then completing the environmental work
required and drafting agreements.
· AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE
Monday, April 19, 2000
Page -4-
Darrell Ward, Canyon Hills Senior Housing, spoke regarding the status of their application, which
is very close to being ready to go forward with their $293,000 request for funding.
There are no other project requests that would be far enough along in the process to have an
agreement in place by June 30, 2000, which is required to secure the funds currently on hand.
The Committee unanimously approved sending the Affordabl~ Homes, Inc. agreement to the
Council for approval at the April 26, 2000 Council meeting.
D. DiscuSsion and Committee recommendation regarding request by Bakersfield Senior Center
for senior housing project financial support
Jake Wager stated that on April 12th, David Strong, representing the Bakersfield Senior Center,
presented a request to the City Council for a conditioned commitment of $400,000 in funds. The
City received the application on April 14th' This application has been forwarded to the housing
consultant for review to evaluate what amount of funding is warranted for the project. The report
should be received in about one week's time. The City is only required to make a finding that it
conforms to the City's Consolidated Plan.-The application will then be submitted as part.of'-a ''
Section 202 directly to HUD for their approval.
David Strong spoke about their currentproposal and that last year HUD did not fund their project:.
In speaking with HUD this year, they suggested that a 'commitment from the City to supply funds~.
would help their project to get a higher score and be funded.
Mr. Strong introduced Richard Washington. from the Retirement Housing FoundatiOn, who spoke.
regarding a memorandum of understanding with the Bakersfield Senior Center under which they
would jointly sponsor the senior housing project. They have a project in Arvin and jointly sponsor
one in Delano. In asking for a conditioned commitment, it is contingent on the funds not being
committed unless there is an award made. The funds being requested are for such things as
demolition required on the site and relocation of a day care center, which are not eligible for funding
in their HUD application. They are requesting either Council app, roval or a letter in support from
the City Manager and they have a deadline of May 17th for a response. Requirements for Section
202 funding from HUD are site control (option on property). But, until a commitment from HUD is
forth coming, they do not wish to spend any dollars. The request for $400,000 is based on an
estimate of costs not funded by HUD. It will be November 2000 before it is known if HUD will
approve their application with the project being started in 2001.
Since the costs for potential demolition, relocation of the day care center and utilities, and the type
of assistance have not been identified, the Committee directed staff to meet with the parties and
provide a timely response to ascertain what assistance could be available and under what
programs. The Committee agreed that they would be willing to have a special meeting or staff can
communicate the information by memo as to any action required to be addressed by the Council
at the May 10th Council meeting in order for the application to be submitted to HUD by the May 17t'
deadline.
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE
Monday, April 19, 2000
Page -5-
6. ADJOURNMENT
The meeting adjourned at 2:42 p.m.
Staff present: Assistant City Manager John Stinson; Assistant City Manager Alan Christensen; Deputy
City Attorney Janice Scanlan; Economic Development Director Jake Wager; Community Development
Coordinator George Gonzales; Finance Director Gregory Klimko; Public Works Engineering Manager
Jack LaRochelle; Assistant to the Public Works Director Georgina Lorenzi; Assistant Recreation and
Parks Director Allen Abe; Acting Assistant Finance Director Sandra Jimenez; Public Works Wastewater
Manager Fred Kloepper; and arriving at 1:15 p.m. City Manager Alan Tandy and City Attorney Bart
Thiltgen.
Others present: James Burger, The Bakersfield Californian; Paul Cato, Bakersfield Senior Center; David
Cross, architect; Marvin Dean, Southeast Bakersfield Business and Property Owners Association; Burt
Armstrong, Brown Armstrong;. Ann Braun,. Carpenter Kuhn & Strawberry; Rick Hot, Affordable Homes,. - --.
Inc.; Hal Rosen, Affordable .Homes,. Inc.;~ Darrell Ward, CanyonHills ~Sr...Housing; .Wendell ,Vinson,.-. '..
Canyon. Hills Senior Housing; Oscar Anthony, Restoration CommUnity Project,. Inc.; Chris Sturdivant,
Exodus House Ministries;.MickeySturdivant,.Exodus House Ministries; Jo Anne Yokota and Richard ..
Washington Retirement Housing'Foundation, Long Beach, CA (Bakersfield Senior Center..project); David ' .,
Strong, Bakersfield Senior Center; Larry Moxley, Rotary Club (Joshua Park); and Lisa and Wes Brown..
cc: Honorable Mayor and City Council
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