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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 JWS:jp S:/Darnell/Bud'and Fin/bf00aprl 9summary.wpd