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HomeMy WebLinkAbout05/11/2005 BAKERSFIELD _~ [_~ ~'~ ~ Mike 'Maggard, Chair Staff: John W. Stinson Irma Carson For: Alan Tandy, City Manager Harold Hanson · AGENDA SUMMARY REPORT SPECIAL MEETING BUDGET AND FINANCE COMMITTEE Wednesday, May 11,2005 · 1:15 p.m. City Manager's Conference Room - City Hall 1. ROLL CALL Called to Order at 1:20 p.m. Present: CoUncilmembers Mike Maggard, Chair; Irma Carson and Harold Hanson 2. ADOPT FEBRUARY 9, 2005 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Review and Committee recommendation on City Auditor Proposals Assistant Finance Director Nelson Smith explained requests for proposals were sent out for City auditor services. He introduced the auditors who would be making presentations to the Committee regarding providing auditing services to the City for fiscal year ending June 30, 2005, with optional years 2006 through 2009. Justin Morales, representing M. Green and Company LLP, gave a presentation on their firm's abilities and experience and provided an overview of their proposal. They have offices located in Dinuba, Visalia, Hanford and Tulare with 60+ employees. The organization has over 50 years of local presence in the Central Valley. Their proposal for a full scope audit for fiscal year ending June 30, 2005 was 513 hours at a cost of $43,268. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Wednesday, MAY 11,2005 Page - 2 - Ben Reyes, representing Mayer Hoffman McCann, gave a presentation on their proposal. Their firm conducts business nationwide and has an office in Bakersfield, which would be handling the audit for the City. They have 55+ professionals based in Bakersfield. Their proposal is for 746 hours at a cost of $72,230 to perform the audit for fiscal year ending June 30, 2005. Finance Director Klimko explained City staff actually prepares the financial report, except for the notes, and presents it to the City auditor to audit the numbers and make recommendations on any adjustments staff needs to make. Committee Members Carson and Hanson questioned the different amount of hours the firms had in their respective proposals and the difficulty in making a recommendation to pay the additional cost for the same audit services. Committee Chair Maggard questioned if there were a difference in the scope and breadth of the analysis of the audit by each firm. Finance Director Klimko stated he felt that both firms were qualified to perform the City audit. He noted the Council has stated a preference to hire local firms when possible and one firm, Mayer Hoffman McCann, has office space locally. He asked the firms if they would be willing to sign a contract limiting their cost increases for future years to the CPI. Both agreed with the condition there are no major problems in future audits or new requirements for additional work from the Accounting Standards Board. Committee Chair Maggard suggested this be taken under advisement and brought back to the Committee for further consideration. The Committee unanimously approved. 5. NEW BUSINESS A. Staff report and Committee recommendation on requests for funding a. Bakersfield Symphony Orchestra b. Valley Fever Vaccine Project of the Americas Assistant City Manager John Stinson explained included in the packet were the letters of request for contributions; the, Council's policy to consider contributions only to the Bakersfield Senior Center, the Bakersfield Museum of Art and the Bakersfield Symphony. A fax, which had been provided to the Council, was handed out from Roger Mclntosh requesting serious consideration of funding the effort to find a vaccine for Valley Fever. City Manager Alan Tandy pointed out although the Council policy was to fund the three non-profits, the State budget crisis and the financial constraints it placed on AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING. Wednesday, MAY 11, 2005 Page- 3 - the City made it necessary to cut the funding for non-profits with the exception of the Bakersfield Senior Center as its funding is from a Federal source. Milt Younger, President of the Board of Directors for the Bakersfield Symphony Orchestra, made a presentation on behalf of the Bakersfield Symphony Orchestra and the request to restore the funding for the Symphony to provide for the use of City facilities. The request was for a contribution of $50,000 for the 2005-06 season. In the past the City contributed $46,000 per year to cover the rent at the Convention Center; however, rental rates have increased. Committee Member Hanson spoke in support of restoring the funding for the Symphony as outlined in the policy agreed to by the Council on September 19, 2001. Committee Member Carson was in support of restoring the funding, if it were possible within the proposed budget. Committee Chair Maggard was in agreement, but would like to have the exact costs to fund the rental for a set amount of concerts before making' a recommendation on funding the Symphony. The Committee requested the City Manager to provide the information and recommended this item be on the next Committee agenda for action. Pauline Larvvood, on behalf of the Valley Fever Vaccine Project of the Americas, made a presentation on the request for a $50,000 contribution from the City to develop a vaccine to reach the point where human trials may be possible, which could be paid over five years. Ms. LanNood pointed out that as the City is a large employer, getting a vaccine developed would be very beneficial for City employees. Committee Member Carson expressed this is a very worthwhile cause and she would be willing to help with fundraising; however, the City does not have a role in the health field. The County is responsible for health issues and has a Health Department with funding, which serves all the citizens of Kern County in the fight against diseases. Committee Member Hanson expressed the Council has a policy of not providing operational costs for non-profits, which all have worthwhile causes Such as this research project. If the Council were to fund one health issue, it would be compelled to consider requests from all health agencies. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Wednesday, MAY 11, 2005 Page - 4 - Committee Chair Maggard also felt this research was important to the citizens of Bakersfield and question if there might be some vehicle available where the employees could have an opportunity to donate. The Committee requested staff to research how the employees of the City could be made aware of the need for funding the research for a vaccine and how employees could designate donations through the United Way if they had a desire to do so. This item will be brought back to the Committee at its next meeting. B. Committee discussion and recommendation regarding setting next meeting date/meeting schedule The Committee unanimously decided to set a meeting on Monday, May 23, at 10:00 a.m. 6. COMMITTEE COMMENTS 7. ADJOURNMENT The meeting adjourned at 3:00 p.m. Attendance: Staff: City Manager Alan Tandy; Assistant City Manager John W. Stinson; City Attorney Ginny Gennaro; Finance Director Gregory Klimko; and Assistant Finance Director Nelson Smith Others: Milt Younger and John Farrer, Bakersfield Symphony Orchestra; Pauline LanNood, Valley Fever Vaccine Project; Jerry E. Randall; Ben Reyes and Jennifer Hoffman, Mayer Hoffman McCann P.C.; Justin Morales, Jr., CPA, M. Green and Company cc: Honorable Mayor and City Council S:~JOHN\Council Committees\05Budget&Finance\05mayl 1summary.doc