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HomeMy WebLinkAbout02/08/2006 B A K E R S F I E L D /~/ ~ ~~~~_~ ~i Maggard, Mike Chair Alan(Gl~ris~t~nsen, Assistant City Manager Irma Carson For: Alan Tandy, City Manager Harold Hanson AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Wednesday, February 8, 2006 - 10:00 a.m. City Manager's Conference Room - Suite 201 City Hall, 1501 Truxtun Avenue, Bakersfield, CA 1. ROLL CALL Councilmember Harold Hanson Called the Meeting to Order at 10:10 a.m. Present: Councilmembers Irma Carson; and Harold Hanson Councilmember Mike Maggard, Chair, seated at 10:17 a.m. 2. ADOPT DECEMBER 13, 2005 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Discussion and Committee recommendation on growth of the City and impacts on refuse collection Public Works Director Rojas spoke regarding the request from Kern Refuse Disposal, Inc. to extend the haulers current contract expiration date from 2014 to 2025. The haulers indicated they need the extension to obtain equipment financing, and also current financing for their subsidiary material processing company (MRC) runs through 2020 and a hauling revenue stream is desired through that date to help assure the bond holder. The change to 2025 would also match the time frame of their hauling franchises in unincorporated Kern County. City Manager Tandy explained there is actual value attached to the haulers contract and the City should receive value in exchange for any extension of the term of the contract. AGENDA SUMMARY REPORT Page 2 BUDGET AND FINANCE COMMITTEE MEETING Wednesday, February 8, 2006 Public Works Director Rojas gave an overview of some of the items that with the approval of the Committee, staff would like to meet and negotiate with the haulers. Rate related items for discussion included, but not limited to: · Basing rate increases on the current CPI · Assurance that haulers will maintain or replace carts as needed · Basing rates for new programs/services on City cost studies or pilot programs · If the City chooses to convert its services to provide "blue carts" for curbside recycling service in lieu of the "extra tan" carts currently in use, the haulers also convert their services · Establish uniform rates and terms for miscellaneous charges, such as extra pick up charges, return trip charges, temporary bin delivery and pick up, locking bin service fee or handling overloaded containers Contract related items included, but not limited to: · Compliance with State air emission rules without cost to the City · Open the C&D (concrete and demolition materials) facility to the public, or reduce the space or terminate the lease so the City can use the space to handle C&D recycling · Haul a proportionate share of reject material from the curbside greenwaste sorting operation The Committee unanimously approved for staff to meet and negotiate with the contract haulers. Staff will report back to the Committee. 5. NEW BUSINESS A. Land Based Financing / Community Facility Districts (CFD) 1. Review draft ordinance to allow establishment of special tax districts (CFD) 2. Review policy regarding Land Based Financing (CFD's and Assessment Districts) Finance Director Smith explained the City has recently entered into development agreements with local landowners associated with large development projects. Each of the agreements includes a commitment by the City to provide a mechanism for financing public facilities and/or services commonly known as Community Facilities Districts (CFD), also known as Mello-Roos. CFD's provide developers with an optional financing mechanism to fund public facilities and services. A special tax is placed on the properties to fund the public improvements, which is actually paid by the homebuyers. In order for the City to be able to provide this type of financing to developers, the City needs to adopt an ordinance allowing for the formation of CFD's. The City will also need to adopt a policy document regarding CFD's to establish some perimeters and guidelines for the districts. Staff has been working with the AGENDA SUMMARY REPORT Page 3 BUDGET AND FINANCE COMMITTEE MEETING Wednesday, February 8, 2006 Building Industry Association, local developers, and others to develop a draft policy. City Manager Tandy explained the new developments are so large a mechanism is needed to finance public facilities and services. The landowners of the large developments have requested CFD's, which are similar to assessment districts except the CFD's are much broader. City Attorney Gennaro explained the proposed ordinance is a standard ordinance used by cities that have CFD's. It is an implementation device that makes it very clear to the public that community facility districts can be used to pay for actual services, including public safety services such as police and fire. The Committee requested staff to contact the Building Industry Association and offer an addition presentation if needed. Committee Member Hanson made a motion the Committee approve forwarding the ordinance to the Council for first reading on February 22, 2006. The Committee unanimously approved the motion. The Committee requested staff to bring the CFD policy to the Committee at its March 8th meeting. B. Staff report and Committee recommendation regarding Audit Reports for fiscal year ending June 30, 2005 (This item heard first) Finance Director Smith gave a report on the findings of the audit reports, management letter, and compliance letters. The outside audit was performed by M. Green and Company. There were no findings to report in their management and compliance letters, except for a couple of minor findings in the Subregional Wastewater Management Plan. The Subregional Wastewater Management Plan is an agreement with the City, Kern Sanitation Authority and the East Niles Community Services District. The auditors recommended the City send ten copies of the annual financial reports to its User Agencies and include a copy of the independent auditors report; and also recommended the City send notification and preserve evidence of such notification of the public meeting and the approved budget to the User Agencies. It was also noted a ter~tative capital-related operations and maintenance budget must be submitted to the Technical Advisory Committee (TAC) for each User Agency for review and approval by March 1st; the City was in compliance in 2005, but two days late in 2004. Finance Director Smith stated he has responded to the recommendations and will ensure the proper copies of the annual financial reports are sent out, as well as timely notification of the public meeting. Justin Morales, Jr., M. Green and Company, spoke regarding this being their first year of auditing the City and was complimentary of the Finance Director and staff. AGENDA SUMMARY REPORT Page 4 BUDGET AND FINANCE COMMITTEE MEETING Wednesday, February 8, 2006 Committee Member Carson made a motion to recommend the Committee accept and forward the audit reports to the City Council. The Committee unanimously approved the motion. C. Discussion and Committee recommendation regarding amending and adopting the 2006 Committee meeting schedule Committee Member Hanson made a motion to amend the calendar to move the March 6th meeting on the calendar to Wednesday, March 8th at 10:00 a.m. The Committee unanimously approved the motion. 6. COMMITTEE COMMENTS 7. ADJOURNMENT The meeting adjourned at 11:25 a.m. Attendance: Staff: City Manager Alan Tandy; City Attorney Ginny Gennaro; Assistant City Manager John W. Stinson; Finance Director Nelson Smith; Public Works Director Raul Rojas; Public Works Civil Engineer Marian Shaw; Rabobank Arena, Theater and Convention Center General Manager Jim Foss; Rabobank Arena Finance Director Steve Womack; Solid Waste Director Kevin Barnes; Assistant Finance Director Sandra Jimenez; Solid Waste Superintendent Sal Moretti; and Wastewater Engineer Art Chianello Others: Donna Carpenter Sikand Engineering; Larry Moxley, Kern Refuse; Bruce Keown, Superior Sanitation; and Justin Morales, Jr., M. Green and Company, LLP cc: Honorable Mayor and City Council S:~JOHN\Council Committees\06Budget&Finance~bf06 feb 08summary.doc