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HomeMy WebLinkAbout07/17/2000 BAKERSFIELD ~-~~/ ~ Patricia J. DeMond, Chair klan Tandy,-Ci~y M~{n~ Mike Maggard Staff: Darnell Haynes Mark Salvaggio AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday,. July 17, 2000 12:00 noon City Manager's Conference Room 1. ROLL CALL Call to Order at 12:10 p.m. Present: Councilmembers Patricia J. DeMond, Chair; Mike Maggard; and Mark Salvaggio 2. ADOPT MAY 15, 2000 AGENDA SUMMARY REPORT Adopted as submitted. 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. Discussion and Committee recommendation for establishing procedures for evaluating ambulance service rates For many years staff conducted annual rate surveys of several other cities and reviewed this information with the Budget and Finance Committee and ambulance service providers. Staff would make recommendations regarding proposed rates to the Committee. After discussion and negotiations with the ambulance service providers, the Committee would recommend certain rate adjustments and or changes to rate categories to the City Council for review and adoption. This annual process was time consuming for the Council, staff and the ambulance service providers. In response to a request by ambulance service providers, the City Council amended the Ambulance Regulation Ordinance on March 10, 1995 to provide for a new method of ambulance rate review by the City Council. The Ordinance now requires applicable companies to submit their proposed rates by January 1st each year with a public hearing to be conducted within 60 days. The Council may increase, decrease, accept or alter the charges as submitted by the ambulance service providers. The new rates take effect on April 1 following the public hearing and upon adoption of a resolution by the City Council setting the rates. The new process provided a greater AGENDA SUMMARY REP( BUDGET AND FINANCE COMMITTEE Monday, July 17, 2000 Page -2- opportunity for public input and significantly reduced the time needed for review. Staff continues to review the basis for any rate increase proposed by the ambulance service providers. Staff prepared a brief informational survey of rates for the same cities used in the past for rate review purposes. The Committee reviewed this information with staff and determined that the current process could be improved if staff were to provide survey information and how staff arrived at their recommendation to the Council when a request for a rate increase is made. Also, when a request for rate increases is received, include a copy for Councilmembers in the Friday packet. The Budget and Finance Committee recommended continuing the current process and direr;ted staff to provide ambulance rate survey information in a timely manner for review to the Council prior to the hearing. Staff will prepare an administrative report for the next Council meeting. 6. NEW BUSINESS A. Discussion and Committee recommendation regarding request from the Bakersfield Museum of Art for assistance with grounds maintenance of expanded museum facility (This item heard first) The museum is currently in the middle of their expansion project and have requested assistance from the City to either take over the maintenance of the grounds or provide funding in the amount of $750 per month for the next five years to cover the costs of gardening services. Museum Executive Director Charles Meyer stated that some of the large commitments for funding the museum expansion are being received over a three to five year period and they are looking for other funding until those commitments are received. In the past, the City leased the facility to the museum at a nominal cost and as the City owned the facility, provided maintenance services. Recently, when deeding the property to the museum, the land was discounted and sold to the museum for a modest amount and as part of that agreement, the City phased out the maintenance services. In concept, the City has not funded operational expenses. Similar requests from other non-profits, such as Bakersfield Senior Center, PAL and the Friendship House, have not been granted. Committee Chair DeMond and Committee member Salvaggio expressed concerns that providing operational expenses for maintenance would set a precedent. Although the City has not provided assistance for maintenance, it has made capital, or one-time investments for expanded tourist attractions and other projects such as' the Fox Theater. The Committee discussed a preference to consider some type of capital project funding. Stan Ford was directed to meet with Mr. Meyer to look at the landscaping plans for the expansion and defined capital cost estimate for the project and bdng the information back to the next Committee meeting. B. Discussion and Committeerecommendation regarding development of funding plan for the Bakersfield Landfill closure project Public Works Director Raul Rojas stated that there are actually two separate sites. One is the burn dump landfill which is officially cloSed. The other is the trash landfill, which is partially closed. A AGENDA SUMMARY REP(:: BUDGET AND FINANCE COMMITTEE Monday, July 17, 2000 Page -3- new gas collection system was installed three years ago and we are now in the process of writing the closure plan. In the current budget money was set aside for a consultant. The consultant advised that there are two alternative ways to close the landfill. One is to use the traditional landfill capping which uses clay from Wisconsin that is applied about one or two feet thick. The other is the use of native dirt at three to six feet thick depending on rain conditions. A test pad was built out on the landfill. It was filled about five feet thick with native soil, and we are required to collect data during rain and dry seasons to see if it cracks and how much water gets through. This test process takes about one to two years. If the test is favorable, then a plan will be written by the consultant and sent to the State who will review and put it through their process, which takes from one to two years. Finally when the plan is approved, the capping process can begin. The County has an obligation, as the former operator of the landfill, to fund~half of the landfill closure. This applies only to the sanitary landfill, and not the Burn Dump or the landfill gas system. In the Solid Waste budget last year, $70,000 was set aside and in the current budget $85,000 was approved. Recently, the County approved a plan which will help us save approximately $500,000 per year from what we are currently paying in landfill fees by approving a change in how our commercial disposal fees are processed. In the past this was based on a system of averaging by volume, and we now will be able to weigh at the site and pay on the actual weight of refuse. Staff is recommending a funding plan to set aside the savings realized on the commercial fees (approximately $500,000 per year) each year to pay the debt service on the loan that will be necessary for the City to pay their share for capping the landfill. In about three years, we are expecting approval from the State to start capping. We have about three years to save money. The City's debt may be anywhere from $3 to $5 million total. There may be a need to borrow between $2 to $4 million. Finance Director Gregory Klimko estimated, barring the unforeseen, that if we set this money aside for the next 3 to 4 years until the cap needs to be done and then do a : financing at that time, the $500,000 set aside per yea'r should pay for the ongoing debt service for the loan. Many times in the past when the fund has gotten a new stream of money, it has been used to offset future rate increases for cost-of-living increases, large purchases and increased service levels. If the Committee recommends this plan and Council approves, staff is recommending a policy be set to budget the savings realized on the commercial fees as a set aside amount for the dedicated purpose of closing the landfill. The need for a funding plan was discussed to avoid large fees having to be passed on to City residents in three or four years. The Committee approved staff's recommended funding plan to budget the savings realized on the commercial fees as a set aside amount for the dedicated purpose of closing the landfill and forwarding the recommendation to the Council for approval. C. Discussion and Committee recommendation regarding CDBG funding for Southeast Bakersfield Project area street lighting The Southeast Bakersfield Redevelopment Project Area (PAC) has in their current budget $75,000 of Redevelopment Funds for street lighting. As the PAC was trying to find funding for other purposes, Councilmember Carson forwarded a request for the Committee to evaluate if that project _ I AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 17, 2000 Page -4- could be shifted to be funded with CDBG funds. The Committee discussed that CDBG funding could be used for street lighting projects. However, the CDBG budget has just recently been approved, and if the funding for this project were to be shifted to CDBG, then something that is currently budgeted and approved would have to be deferred, or shifted out. The $75,000 currently budgeted is identified for the Union Cemetery area. Public Works has fixed many of the problems, the intersections are lit up, the old poles have been changed out, and new bdght heads installed. Major intersections are required to be lit. City standards for street lightning in residential areas is basically on the corners at intersections, as its purpose is to provide better vision for drivers. Stephanie Campbell spoke regarding funding and needed information on street lighting and where the improvements have been made. The Committee directed Brad Underwood to provide a report to the PAC on what has been done and what is planned for the area. Staff explained that funding will be requested in FY 2001-02 for a second phase for approximately 50 street lights. The estimated cost for the second 'phase is $75,000. The Committee recommended that the shift of-funding not be made to the CDBG budget. D. Committee review of FY 1999-00 budget amendments This is a cleanup item that confirms actions, previously taken by the Council. The Committee approved the budget amendments. E. Discussion and Committee recommendation regarding Community Development.Block Grant Amendment Alan Chdstensen stated that staff has identified $251,000 in CDBG funds from pdor year savings from a multitude of projects. There is $145,000 of funds that were put in the current year budget for graffiti, so there is approximately $106,000 to be programmed. Staff is recommending the those funds be programmed, which will require a CDBG amendment. It will also require public notice, approval by the City Council and approval from HUD. It will come back in the form of individual contracts, which will take three months or so to complete the process. The Committee reviewed projects that were on the list, but 'not funded this year. Committee member Salvaggio stated he would support the Committee's recommendation, but would like to see funding of $202,500 for sewers for the Gwendolyn Street Area Sewer Project in the next fiscal year and funding for Pacheco #10 Area Sewer Construction Project in the next two to three years. The Committee recommended funding for the following: Bernard Street Lighting Upgrade Project $ 8,000 Bakersfield Homeless Center Rehabilitation Project 25,000 Valley Achievement Center 15,000 Bakersfield Garden Community Enhancement Center Rehabilitation 58,000 Total $106,000 AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, July 17, 2000 Page -5- Alan Chdstensen stated also identified for CDBG funding is an economic study for the Southeast Bakersfield area. Because it is under the administrative cap and is not a project, it falls in another category, and $25,000 has been identified that staff feels will work under the 20 percent administrative cap. This would be a shift of $25,000 from the Business'Loan Program. The Committee unanimously approved and recommend CDBG funding for the four projects for a total of $106,000 and $25,000 for the economic study for the Southeast Bakersfield area, and directed staff to forward to the Council for approval. 7. COMMITTEE COMMENTS None. 8. ADJOURNMENT The meeting adjourned at 2:10 p.m. Staff present: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City Manager.John Stinson; Assistant City Manager. Alan Christensen; Assistant to the City Manager Darnell Haynes;. Deputy City Attorney Ginny Gennaro; Community Development Coordinator George Gonzales; Finance Director Gregory Klimko; Public Works Director Raul Rojas; Recreation and Parks Director Stan Ford; Solid Waste Supervisor Martha Haslebacher; Assistant Finance DirectOr Nelson Smith; General Services Superintendent Brad Underwood; and Economic/Community Development Accounting Clerk Angie Offenburger. Others present: Charles Meyer, Greg Hardy, Cynthia Giumarra and Cynthia Icardo, Bakersfield Museum of Art; Barbara Harris, Cornerstone Group; Stephanie Campbell, Cornerstone Group; Estela Casas, Greater Bakersfield Legal Assistance; and Gene Tackett and Jacqualine Att, Hall Ambulance. cc: Honorable Mayor and City Council DWH:jp S:/Darnell/Bud and Fin/bf00ju117summary.wpd