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HomeMy WebLinkAbout02/05/2001 BAKERSFIELI A"'lan Tandy, City Manager Mike Maggard, Chair Harold Hanson Staff: Darnell Haynes Mark Salvaggio AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, February 5, 2001 4:00 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order at 4:08 p.m. Present: Councilmembers Mike Maggard, Chair; Harold Hanson and Mark Salvaggio 2. ADOPT AUGUST 11, 2000 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. Discussion and Committee recommendation regarding Bakersfield Senior Housing Project on Fourth Street and CDBG/HOMEJHousing Set Aside financial assistance Economic/Community Development Director Donna Kunz explained that this request is for an additional $280,000 bringing the applicants total request to $560,000. CHDO funds are available for the first request for $280,000 to build 80 Iow-income units of housing for seniors. The applicants are now requesting an additional $280,000 for acquisition of adjoining lots to shift the project 110 feet north. This shift will allow the existing recreation building, after school programs and parking lot to remain. Staff has met with the applicants and is recommending positive consideration of the extra land purchase; however, all of the HOME allocations for next year are pre-committed, so we do not have a budget on hand to accommodate this request in the form of a cash grant. Staff requested the Committee's concurrence to work with the applicants to structure some kind of financing plan (a note or loan) to allow them to proceed and then phasing the funding when it is available. Mr. Lynn Edwards and Mr. Vernon Strong spoke regarding their project. The Bakersfield Senior Center and Retirement Housing Foundation, co-applicants, received their entitlement for a HUD Section 202 grant award of $6.75 million in November 2000. Time is an issue as HUD established a time frame of 18 months for the project to be completed. ADOP~D AS SUBlet'TED t. fARCa 8, 2001 AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, February 5, 2001 Page -2- The Committee unanimously approved allocating $280,000 of CHDO funds for the Bakersfield Senior Housing Project and directed staff to meet with the applicants to assist them in working out some type of financing for the additional $280,000 being requested. When completed, the Committee directed staff to prepare and forward the documents to the City Council. B. Discussion and Committee recommendation regarding amendment to KCEOC Agreement/ CDBG Action Plan On December 13, 2000, the City Council approved an agreement with Kern County Economic Opportunity Corporation (KCEOC) for $255,000 for acquisition of an 18 acre parcel on Washington Street and Feliz Drive. The property has been annexed to the City and escrow will be closing in two to three weeks. This amendment is for the second installment approved by the Council last year as part of the Action Plan, which provides $275,000 of additional CDBG funds toward the design, engineering and construction of the facility. Approval of this amendment will keep the project moving forward. It was noted that the City's Property Manager is working with KCEOC on their relocation, as it will free up the current location for additional Centennial Garden parking. The Committee unanimously approved the amendment, which will increase the agreement to $530,000. Staff was directed to complete the amendment to the agreement and forward to the Council for approval. C. Discussion and Committee recommendation regarding request received from Bethany Services for the City to consider transferring ownership of the Bakersfield Homeless Center, 1600 E. Truxtun Avenue, to Bethany Services The City received a request from Bethany Services to transfer the ownership of the Bakersfield Homeless Center to them. In 1990, Bethany Services, a non-profit corporation, entered into a lease agreement with the City to lease the Homeless Center from the City for an annual rent of $1.00 for the purpose of providing food, emergency shelter and transitional services to the homeless. Mr. Louis Gill spoke regarding their request. Bethany Services would like to have ownership of the facility in order to purchase land and expand the facility to accommodate the increase of single women with children and families by providing larger segregated areas. Ownership of the property would allow them to obtain financing for the expansion and establish a line of credit for operating expenses. Economic Development Director Donna Kunz stated that staff is recommending approval of their request, but recommended covenants or restrictions be added to the deed because the original source of funding was block grants that are restricted to Iow and moderate individuals, and services for the homelesswere allowed. Mr. Gill stated that the loan they will be applying for has some of the same restrictions and their long-term plans are to provide services to the homeless. The Committee unanimously approved Bethany Services' request to convey ownership of the Bakersfield Homeless Center property to them, but directed staff to meet with Bethany Services staff and their bank lenders to work out language that will allow approval of their loan, continued use as a homeless center and an equity share provision on any future sale of the property. After the details are work out, staff was directed to prepare and forward the documents to the City Council. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, February 5, 2001 Page -3- D. Discussion and Committee recommendation regarding request from Bruce Dolgin for Conditional Use Permit exception to operate Sno-Shack shaved ice kiosks in C-1 zones Mr. Bruce Dolgin spoke regarding his request to continue operating his Sno-Shack shaved ice kiosks in a C-1 zone. Last year, he thought the ordinance had been changed to allow operating in a C-1 zone as stated in the first reading, but at the second reading of the ordinance, it was changed to a C-2 (which corrected an error). Due to the confusion, the City issued a temporary conditional use permit for last year so he could operate at two Rite Aid locations, which were received well and very successful. Although his business falls under a transient business with the City, he feels his business locations are established over a long-term and he would like to see a change in the ordinance to allow him to continue operating his two locations in the C-1 zone. Staff explained that Transient Outdoor Businesses are allowed to operate in C-2 or less restrictive zones and when the term of the ordinance was changed from 90 to 180 days, it was always intended that it remain in a C-2 zone. However, due to the confusion between the first and second reading of the ordinance and to resolve the situation last season, Mr. Dolgin was granted, at no cost to him, two 180- day Conditional Use Permits (CUPs) that expired at the end of October. A CUP could be issued that would allow Mr. Dolgin to keep operating his two sites in their present C-1 zone, with notification to residents within 300 feet of the site. However, it is very expensive, $1,325 per location. The Committee did not want to impair the integrity of the zoning ordinance or go through the process of amending the ordinance. Due to the original confusion, the Committee recommended that Mr. Dolgin reapply for the CUP's and that the City absorb half of the cost. Mr. Dolgin agreed with the recommendation. The Committee unanimously approved the recommendation and directed staff to follow through with Mr. Dolgin. E, Committee discussion and adoption of 2001 Budget and Finance Committee meeting schedule, The Committee unanimously adopted the calendar, with the provision that if scheduling conflicts occur, meetings can be canceled and rescheduled at the direction of the Committee Chair. F. Committee review and recommendation on financial and audit reports-' 1. Comprehensive Annual Financial Report (CAFR) (This item haS previously been approved by the Council to meet legal reporting dates.) Finance Director Gregory Klimko briefed the Committee. It was noted that the format of the CAFR will be changing dramatically due to the implementation of GASB 34 (Government Accounting Standards Board) to put government entities on more of a measurable basis with private business. The reporting will stay the same for the coming year, but will change format for FY 2001-02. Committee Chair Maggard stated it was discussed a year ago the possibility of changing the governmental fund accounting method that we use on accounting for Centennial Garden activities. The Finance Director explained that with the implementation of GASB 34 a year from now, it will be presented differently, more of an enterprise fund - propriety fund accounting. However, when this new accounting format is implemented, there will be a downside as it will make it appear in the General Fund like it has huge losses, when in fact it balances every year. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, February 5, 2001 Page -4- The Committee unanimously accepted the audit report as filed. 2. Centennial Garden Financial Statements (This item has previously been approved by the Council to meet legal reporting dates.) The Finance Director gave an overview of the financial operations of the Garden. The financial picture, which does not include the debt service or depreciation, is improving every year. The Convention Center operated with losses every year. With the opening of Centennial Garden and contracting with professional management (currently SMG), the net loss for last year was $227,000; net loss the prior year was $594,000, the year before with City management of the Convention Center the operating loss was $1,137,000, for an improvement of approximately $9OO,OO0. Committee Chair Maggard stated he has concerns that in the City's financial statement we don't match the debt service payment against the revenues from the operation of the Center. It was discussed that there are revenues attributable to the Garden, as the City can now book many large events, that a financial statement does not articulate, such as Transient Occupancy Tax generated, sales tax, nearby redevelopment opportunities, visitors to local restaurants and retail shops, and other revenues that are not quantifiable. Committee Chair Maggard stated that perhaps it would serve to have a memo for reference to answer questions that could show the financial progress the City has made to lower the deficit or a spreadsheet, and show some of the other benefits the City receives. It was discussed that the City has not had a year since the Garden was constructed in which the City did not adjust the size of staff to deal with increased population, there have been no cutbacks or restrictions in normal business activities and the Garden was absorbed without detriment to any City operations. The Committee unanimously accepted the audit report as filed. 3. ' Independent Auditor's Report on Compliance with Contractual Requirements relative to the Bakersfield Subregional Wastewater Management Plan for FY ended June 30, 2000. This is a compliance audit which is required as part of an agreement between the City and the County service agencies. It provides a measurement that the City is in compliance with the Wastewater Management Plan. The Committee unanimously accepted the audit report and it was forwarded to the Council. 4. 1999-00 Transportation Development Act Funds Financial Statements Public Works staff gave a brief overview. Kern COG contracts with an accounting firm to provide a compliance audit of all the agencies that receive Transportation Development Act Funds. This includes Article 3 and Article 8 funds. It was noted that Article 3 money can be applied for every year and used for the Bike Path, which has been done in the past, and Article 8 money is being used for maintenance at the Amtrak Station. The Committee unanimously accepted the audit report and it was forwarded to the Council. 5. ADJOURNMENT The meeting adjourned at 5:20 p.m. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, February 5, 2001 Page -5- Staff present: Mayor Harvey L. Hall; City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City Manager Alan Christensen; Finance Director Gregory Klimko; Assistant to the City Manager Darnell Haynes; Economic/Community Development Director Donna Kunz; Community Development Coordinator George Gonzales; Interim Public Works Director Jack LaRochelle; Planning Director Stan Grady; Assistant Finance Director Nelson Smith; Treasurer Bill Descary; Deputy City Attorney Allen Shaw; Assistant to the Public Works Director Georgina Lorenzi; and Economic/Community Development Business Manager Rhonda Barnhard. Others present: James Burger, the Bakersfield Californian; Louis Gill, Bakersfield Homeless Center; Bruce Dolgin, Sno-Shack; Kevin Ray, KCEOC; Lynn Edwards, Bakersfield Senior Center; Vernon Strong and Valerie Strong, Bakersfield Senior Center Project. cc: Honorable Mayor and City Council DWH:jp S:/Damell/2001 BFCommittee/bf01feb05summary.wpd