HomeMy WebLinkAbout06/19/2006 B A K E R S F I E L D
/~ ~ ~-~-- Mike Maggard, Chair
John Stinson, Assistant City Manager Irma Carson
For: Alan Tandy, City Manager Harold Hanson
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Monday, June 19, 2006 - 10:00 a.m.
City Manager's Conference Room - Suite 201
City Hall, 1501 Truxtun Avenue, Bakersfield, CA
1'. ROLL CALL
The meeting was Called to Order at 10:04 a.m.
Present: Councilmembers Mike Maggard, Chair; Irma Carson; and Harold Hanson
2. ADOPT MAY 9, 2006 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. NEW BUSINESS
A. Discussion and Committee recommendation regarding WiFi (wireless
Internet service)
Assistant City Manager Alan Christensen gave an overview of the information
in the packet. Wireless technology has been around for several years and is
commonly used by business and governmental agencies.
There are two models governmental agencies use to provide wireless Internet
to the community. First, many larger cities sponsor and are direct providers of
wireless Internet, especially in the downtown areas. The cities purchase the
equipment and place it around the city. A server dedicated to wireless Internet
provides service to the community at a cost or free, depending on how each
AGENDA SUMMARY REPORT Page 2
BUDGET AND FINANCE COMMITTEE MEETING
Monday, June 19, 2006 ~
agency wants to provide the service. Staff did not recommend the City enter
into being a direct provider of wireless service.
The second model government agencies use is to have a private company.
provide wireless Internet service through a franchise agreement. The private
company makes the investment and pays for the service through
advertisements (banners across the screen). The service is free to local
customers or a nominal fee is charged, which is usually free of the banner
advertisements.
The City has received a proposal from MetroFi requesting to lease City light
poles in order to provide wireless Internet service throughout Bakersfield.
MetroFi is proposing to provide wireless Internet service or "WiFi" at no cost to
local customers. The cost of the service would be paid for with advertising on
content pages. This product is ideal for City residents who cannot afford
monthly fees for Internet service. For a small fee of approximately $20 the
service would be available without the banner advertisements. MetroFi
currently provides this service in many other cities in California.
MetroFi would pay the City lease payments of $36 per light pole per year. The
service would require 20 to 30 light poles per square mile with yearly revenue
to the City of approximately $180,000 to $200,000. This service would be in
competition with other Internet services; however, it is not quite as fast as DSL
or cable modem and customers who can afford high speed Internet would most
likely stay with their current service provider. The MetroFi network could also
be used for surveillance in graffiti and code enforcement.
Public Works Director Raul Rojas provided new information. The City owns the
streetlight poles and PG&E provides electricity to the light poles at a flat rate.
PG&E has in draft form ready to submit to the PUC a proposal to meter and
charge for loads on streetlight poles other than for lights and sprinklers in order
to get paid for electricity used for such things as telecommunication equipment.
This has no implications to the City, but telecommunication companies may
have to pay in the future.
David Rogers, Electronic Town Crier, a local Internet provider, spoke in
opposition to the City giving MetroFi a franchise without testing and research
with other companies.
Information Technology Director Bob Trammell gave a report on the necessary
bonding to pay for taking the equipment down and electricity should the
company not be prOfitable in Bakersfield and go out of business.
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BUDGET AND FINANCE COMMITTEE MEETING
Monday, June 19, 2006
Committee Chair Mike Maggard requested staff to report back on the possibility
of masking the equipment as we do with cell phone towers. He also had
concerns if the City is providing free Internet, the company be able to offer free
of charge some way to filter unsuitable content and advertising.
The Committee requested staff to research and bring the requested information
back to the Committee.
B. Discussion and Committee recommendation regarding California State
Department of Transportation Audit Report. of City of Bakersfield,
Department of Public Works, Indirect Cost Rate Proposals (ICRP) for
Fiscal Years Ending June 30, 2003.and June 30, 2004
Finance Director Nelson Smith explained this audit had one finding that indirect
costs as well as direct costs need to be accounted for with project numbers.
The audit took exception to the fact that on the timesheet the engineers did not
record project numbers when working on an administrative assumption or non-
billable items. There were no other findings and the cost rates met with
approval.
The Finance Director provided a letter of response to the Department of
Transportation, Audits and Investigations, stating the City's intent to comply
with the finding by requiring the Public Works Department to code all labor
hours worked with project numbers.
Committee Member Harold Hanson made a motion to recommend acceptance
of the report to the Council. The Committee unanimously approved the motion.
C. Discussion and Committee recommendation regarding California State
Controller's Office Audit Report of the City of Bakersfield's Gas Tax Fund
for Fiscal Year Ending June 30, 2005
Finance Director Nelson Smith reported this audit was to ensure the City spent
Gas Tax Funds in compliance with regulations. The audit had no issues or
findings and concluded the City accounted for and expended its Gas Tax Fund
in compliance with the Streets and Highways Code.
Committee Member Harold Hanson made a motion to recommend acceptance
of the report to the Council. The Committee unanimously approved the motion.
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BUDGET AND FINANCE COMMITTEE MEETING
Monday, June 19, 2006
5. COMMITTEE COMMENTS
6. ADJOURNMENT
The meeting adjourned at 11:15 a.m.
Attendance: Staff: City Manager Alan Tandy; City Attorney Ginny Gennaro; Assistant City
Manager John W. Stinson; Assistant City Manager Alan Christensen; Finance Director Nelson
Smith; Public Works Director Raul Rojas; Assistant to the Public Works Director Georgina
Lorenzi; General .Services Superintendent Steve Hollingsworth; IT Director Bob Trammell; and
Assistant IT Director Edward Chavez
Others: David Rogers, Electronic Town Crier
cc: Honorable Mayor and City Council
S:\JOHN\Council Committees\06Budget&Finance\06 jun 19summary.doc