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HomeMy WebLinkAbout1988 MEMORANDUM December 28, 1988 TO: Vice-MayOr Smith FROM: Arthur J. Saalfield, City Attorney~~ SUBJECT: Proposed Ordinances On 12714/88 the Council approved City Managers' Report No. 3a-88, providing that each proposed ordinance, other than an ordinance re-zoning property or an emergency ordinance, be referred by the Vice-Mayor to a committee to be chosen bY the Vice-Mayor prior to Council action. Attached are the following four ordinances: 1. Contracting and PurchaSing, ~~ ~' -~'~'~-=- 2. auditorbum-'Committee,-- ~. ~'"~~ 3.Parking of Commercial Vehicles in Residential Districts, Entry on Property by Animal Control Officers. ' '' 4. Please 'refer these proposed ordinances to whichever. committee you.deem appropriate. Of the four, the proposed ordinance on contracting and purchasing needs the most immediate attention..~ Thank you for your help. AJS:sdf 4 M.VMAYOR1 cc: J.D. Hawley M. Strenn C. Graviss R. Patterson E. Schulz J. Hardisty G. Klimko OADMINISTRATIVE REPORT Meeting Date.: Agenda Section: New Business Agenda Item: TO: Honorable Mayor and City Councilmembers ~pproved FROM: City Attorney's Office Department Head DATE: December 28, 1988 City Manager SUBJECT: An Ordinance of the Council of the City of Bakersfield adding Chapter 3.22 to the Bakersfield Municipal Code relating to contracts for public works and amending Subsection B. of Section 3.20.060, Sections 3.20.090 and 3.20.100 of the Bakersfield Municipal Code relating to purchasing. RECOMMENDATION: First re~ading. BACKGROUND: This ordinance implements the November, 1988 amendments to Charter Sections 135 and 136 and requires a 10% retention for progress payments for the first $500,000 of any contract', allowing the Public Works Manager discretion as to further retentions, and establishes different dollar thresholds for formal bidding of contracts ($20,000+), and open market procedure (written quotes for $10,000 - $20,000; oral .quotes for $5,000 - $10,000; petty cash procedures set by administra- tive rules and regulations for purchases involving $5,000 or less). AJS/sdf 4:.ADMINRPT1 DRAFT ORDINANCE NO. , NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD ADDING CHAPTER 3.22 TO THE BAKERSFIELD MUNICIPAL CODE RELATING TO CONTRACTS FOR PUBLIC WORKS AND AMENDING SUBSECTION B. OF SECTION 3.20.060, SECTIONS 3.20.090 AND 3.20.100 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO PURCHASING. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Chapter 3.22 is hereby added to the Bakersfield Municipal Code to read as follows: CHAPTER 3.22 CONTRACTS FOR PUBLIC WORKS Sections: 3.22. 010 Purpose. 3.22.020 Bidding required - Exceptions. 3.22. 030 Rejection of bids. 3.22.040 Minimum retention percentages - Bonding - Substitution of securities. 3.22.010 Pu[pose. This chapter is adopted to establish reguirements and procedures for contracts for all public buildings and works, and supplies, equipment, and services related thereto, in accordance with Sections 135 and 136 of theiCharter of the City of Bakers- field. 3.22.020 Bidding required - ExcePtions. A. No contract for the erection, improvement or repair of any public building or works,i!or for the furnishing of supplies, equipment or services related thereto, for a sum in excess of twenty thousand dollars ($20,000.'.00) shall be awarded except to the lowest responsible bidder submitting a responsive bid. Contracts for a sum of twenty thousand dollars ($20,000) or less shall be subject to the procedu{e set forth in Section 3.20.100. B. Notices inviting bids shall be published at least five days before the date~of opening of bids in a newspaper of general circulation published in the CitY. C. Whenever the Council, by resolution, determines that work, supplies, equipment or materials can only be reasonably obtained from one vendor because of the restricted availability of such work, supplies, equipment or materials, or because of the necessity to successfully integrate such~ work, supplies, equipment or materials into an~existing City project or system, a contract for such work, supplies, equipment or materials may be awarded without first seeking bids therefor. D. The City Council, after rejecting bidS, or if no bids are received, may declare and determine that, in its opinion, based on estimates supplied .by the City Manager, the work in ques- tion may be performed better or more economically by City employees or the materials or equipment may be purchased more economically on the open market, and after the adoption of a resolution to this effect by at least four affirmative votes of the Council, may pro- ceed to have said work done in the manner stated, without further observance of the provisions of this section. E. Such contracts may be let without advertising for bid if such work or supplies or equipment shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property, and.shall be authorized by resolution passed by at least five affirmative votes of the City Council and containing a declaration of the facts constituting such urgency. · 3.22.030 Rejection of bids. The Council may, in its discretion, reject any and all bids and may readvertise for bids. 3.22.040 Minimum retention percentage - Bonding - Substitution of securities. A. Contracts for the erection, improvement or repair of any public building or work shall specify that ten percent (10%) of th,e contract price shall be retained by the City from each progress payment; provided, however, on contracts of $500,000 or more, once the work under the contract has been at least half com- pleted to the satisfaction of the City Engineer, the City Engineer may direct that no additional retention be withheld from future progress payments. - 2 - B. The City shall require 'a faithful ~performance bond in an amount equal to one hundred percent (100%) of the contract price issued by an insurer admitted to transact the class of surety insurance in the State of California. C. The provision of subsection A. not withstanding, to the extent required by law securities provided bY the contractor m~y be substituted in lieu of any such retention. SECTION 2. Subsection B. of Section 3.20.060 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.060 Bidding. B. Bidding may be dispensed with only in those circum- stances specified in Section' 136 of the City Charter or pursuant to the provisions of Section 3.20.100. SECTION 3. Section 3.20.090 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.090 Formal contract procedure. A. ~ Except as otherwise provided in this chapter, pur- chases of supplies and equipment of an estimated value greater than twenty thousand dollars ($20,000.00) shall be by written order or contract with the lowest responsible bidder pursuant to the procedure prescribed in this section. B. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid blanks and specifications may be secured and the time and place for opening bids. 1. Published Notice. Notices inviting bids shall be published at least five (5) days before the date of opening of the bids. Notices shall be published at least once in a newspaper of general circulation published in the city. - 3 - 2. Bidders' List. The Finance Department shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list or from responsible prospective suppliers who haVe made a written request that their names be added'thereto. 3. Bulletin Board. The Finance Department shall also advertise pending purchases by a notice posted on a public bulletin board in City Hall. C. Bidder's Security. When deemed necessary by the Finance Director, bidder's security may be prescribed in the public .notices' inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The City Council may, on refusal or failure of the successful bidder to,execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all bther bids and re-advertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and any~difference between that bidder's bid and the price of the contract which is executed, and the surplus, if any, shall be returned to the lowest bidder. D. Bid Opening Procedure. Sealed bids shall be submit- ted to the Finance Department and shall be identified as "bids" on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours' for a period of not less than thirty calendar days after the bid opening. E. Rejection of Bids. In its discretion, the City Council may reject any and all bids presented. The City Council ~ may order the Finance Department to re-advertise for bids pursuant to the procedure prescribed in this section. F. Tie Bids. If two or more bids received are for the same.total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re- advertising for bids, the City Council may in its discretion accept the one it chooses. - 4 - G. Performance Bonds. The FinanCe Department shall hage authority to require a performance bond from a corporate surety admitted to transact insurance business in the State of California in such amount as it finds reasonably necessary to pro- tect the best interests of the city. When the Finance Department requires a performance bond,'the amount of the bond shall be set forth in the notice inviting bids. SECTION 4. Section 3.20.100 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.100 ~Open market procedure. A~ Purchases of supplies and equipment of an estimated Value in the amount of twenty thousand dollars ($20,000.00) or less may be made by the Finance Director in the open market pur- suant to the procedure prescribed in this section, and without observing the procedure prescribed in Section 3.20.090. B. Minimum Number of Quotes. Open market purchases shall, wherever possible, be based on at least three (3) written quotes. C. ~'~ Notice Inviting Quotes. The Finance Director shall solicit quotes by written requests to prospective vendors, by telephone, and by public notice posted on a public bulletin board in City Hall, for single Purchases amounting to more than ten thousand dollars ($10,000.00) but less than twenty thousand dol- · lars and one cent ($20,000.01). D. Written Quotes. The Finance Director shall keep a record of all open market orders and quotes for a period of one year after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection. E. Oral Quotes. A minimum of three oral quotes shall be obtained from prospective suppliers by the Finance Director when the amount involved is more than five thousand dollars ($5,000.00) but less than ten thousand dollars and one cent ($10,000.01), unless in the Finance Director's discretion written bids have been obtained or bidding has been dispensed with in accordance with Section 3.20.060. - 5 - F. Petty Cash. Purchases of five thousand dollars ($5,000.~00) or less may be made through petty cash procedures pre- scribed by administrative rules and regulations. SECTION 5. This ordinance shall be posted in accordance with the City Charter provisions and shall be come effective thirty (30) days from and after the date of its passage. o0o I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the' City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED MAYOR of the City of Bakersfield APPROVED as to form: CITY ATTORNEY of the City of Bakersfield AJS/meg 0 ORD 4 PA.PW1 12/12/88 -- 7 -- MEMORANDUM February 23, ]989 John Stinson, City Manager's Office ¥O FFIOM Darlene Wisham, Purchas±ng Officer SUSOECI Placement of item on agenda for Budget and Finance Committee The City of Bakersfield owns the surplus property at 790 East Brundage Lane (zoned C-] Neighborhood Commercial), that was formerly used as a fire station. City Council authorized the negotiated sale of the property on July 27, ]988 and the Planning Commission, on September ]5, ]988, made the finding that the sale was consistent with the General Plan. On December 28, 1988, the property was offered to the public. Fifty-four information packets were sent to people that had expressed interest in buying surplus property and to real estate companies. The offer period was open until February ]5, ]989, at 2:00 p.m. One offer of $70,000.00 was received from Mr. Robert Jackson of Bakersfield. A deposit of $],000.00 has been received. Mr. Jackson has applied for Community Development Block Grant assistance in the form of a loan to purchase and convert this property into low income apartments. There are, however, no contingencies attached to the offer. A public hearing will be required for the Council to determine whether: ]. The proposed sale is in the best interest of the City and; 2. The benefits to be derived by the City justify the sale price. Please take whatever steps necessary to present this information to the Budget and Finance Committee. If you require additional information, please let me know. cc: Mary Strenn Gregory J. Klimko attachment DW:ljm Bakersfield, California, April 13, 1988 - Page 7 Councilmember McDermott, read Budget and Finance ~ Committee Report No. 22-88 regarding Disposal of Two Vacant Fire Stations. as follows: .~ On March 16, 1988, the council referred to the Budget and Finance Committee the disposal of two surplus fire stations at the locations of. 4th and "L" Streets, and at East Brundage.and King Streets. The stations have been vacant for approximately two years due to building condition and a location that is no longer central to the response district. Previous attempts to reuse or dispose of the properties have not been successful or have involved offers requiring an even heavier obligation on the part of the City. As time passed, they have become a.maintenance problem and target of vandalism. As the properties' condition deteriorates, it reflects on the City's image. Staff has been directed to market the properties and bring a sale proposal back to the Committee. The Budget and Finance Committee recommends acceptance of this report and approval of its recommendations. Upon a motion by Councilmember McDermott, Budget and Finance Committee Report No. 22-88 was accepted. Upon a motion by Councilmember McDermott, the recommendations of Budget and Finance Committee Report No. 22-88 were implemented. Councilmember Childs read Budget and Finance Committee Report No. 23-88 regarding'Retiree Health Insurance Cost as follows= The Budget and Finance Committee has met to discuss whether or not the retirees'-health insurance premium increase would be paid by the City's Medical Reserve Trust or by the retirees. The Committee reviewed the history, beginning in 1968 when retirees became eligible to continue with the City's group insurance at their expense. In the 70-'s the City agreed for the first time to help with premium increases. When the situation arose again'in 1984, representatives of the retirees worked with the Manager's Office to create a formula for the City's contribution. This formula favored years of service and linked the City's con- 'tribution to the Health Net rates so that there would be an incentive for retirees to switch to the more cost-effective Health Net Plan. The formula ' received support from all parties and was approved by Council in April, 1985. ~/~ SCHEDULE OF WORKSHOPS BEFORE THE CITY COUNCIL GREG KLIMKO FINANCE DATED: February 15, 1989 The following is a list of workshops to be held before the City Council: Please advise Mary Strenn of topics and dates you may wish to schedule for a workshop. This schedule is flexible. A Closed Session may. occasionally take the place of a scheduled workshop. March 15 a. Purchasing Policies (15 min.) Darlene Wisham b. Data Processing Long Range Plan (30 min.) Mike Kennedy April 12 a. 2010 General Plan Issue (30 min.) Jack Hardisty b. N.E.D.A. Minority Business Center ................... -( -~ -~ - -t' n: -~ - ?-e °- -~ -~-e- -~ °-n z-a-' -e s ....... May 17 ' a. Kern Economic Development Council ~ (20 min.) KEDC Director · b. City Space Needs (20 min.) Dr. Loader June 14 . ........................................... October 11 . } November 15 a. Wellness Program (20 min.) Scott Manze December 13 ' . ' C~/bz xe: City Manager Mayor/Counei lmember s Department/Division Heads T ~.S L D FORMAL BID Modesto - 1976 over $ SO0.O0 $ S,"O00.O0 ....... (has requested raise to '$20,000.00) Pomona - 1986 over $ 2,000.00 $10,000.00 Hayward - 1984 over $ 2,S00.00 $15,000.00 Oakland under $1S,000.00 $1S,000.00 Redlands - 1984 over $ 2,500.00 $20,000.00 Stockton - 1982 under $20,000.00 $20,000.00 Inglewood - 1980 over $ S,O00.O0 $25,000.00 Fresno - misc. Public Works Projects over $ 1,000.00 $ 6,S00.00 $26,500.00 MEMORANDUM March 10, 1989 TO: J. DALE HAWLEY, CITY MANAGER .~ lf GREGORY J. KLIMKO, FINANCE DIRECTOR//~/~/[-~ FROM: SUBJECT: BIDS At the election of March 24, 1953 the voters approved Proposition No. 3 which provided Section 136 of the Charter of the City of Bakersfield be amended to provide that purchases or expenditures exceeding $1,500 shall be done by con- tract after advertising for bids, and to permit expenditure of not to exceed $2500 when unforeseen necessity arose during the progress of any public works. Subsequently, on November 3, 1964 the voters approved Proposition No. i (A) which in addition to other sections of the Charter amended Section 136 to pro- vide that when expenditures for public works and any supplies and materials exceeds $4,000 that it be done by contract and shall be be let to the lowest responsible bidder after notice in the official newspaper and that when these expenditures exceed $2,500 but, is less than $4,000, the same may be let to the lowest responsible bidder by a process of informal bidding without the necessity of advertising in the official newspaper. GJK/ld cc: Mary Strenn Gil Rojas Darlene Wisham GJK-S405.1 January 5, 1989 TO: ART SAALFIELD, CITY ATTORNEY FROM: GREGORY J. KLIMKO, FINANCE DIRECTOR/~ SUBJECT: PROPOSED ORDINANCES On December 28, 1988 you directed a memo to Vice Mayor Smith regarding proposed ordinances. A draft of an ordinance regarding contracting and purchasing was attached to said memo. Section 4 of the proposed ordinance referring to Municipal Code Section 3.20.100 (E) oral.quotes can not be reasonably implemented as drafted. Therefore, I suggest Section E regarding oral quotes read as follows: E. Oral Quotes. A minimum of three oral quotes sh~ll be obtained from pro- spective suppliers by the Finance Director when the amount involved is less than ten thousand dollars and one cent ($10,000.01), unless in the Finance Director's discretion written~quotes/bids have been obtained or bidding has been dispensed with in accordance with Section 3.20.060 or the amount involved is less than five thousand dollars and one cent ($5,000.01) and the Finance Director has determined more than one quote to be impractical;Or the purchase is to be made through petty cash pro- cedures. Additionally, I suggest Section F regarding petty cash read as follows: F. Petty Cash. Purchases of a minor nature may be made through petty cash procedures prescribed by administrative rules and regulations. Bidding shall not be required for.petty cash purchases. GJK/ld cc: Mary Strenn Gil Rojas GJK-S398.1 DRAFT ORDINANCE NO. , NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD ADDING CHAPTER 3.22 TO THE BAKERSFIELD MUNICIPAL CODE RELATING TO ~ CONTRACTS FOR PUBLIC WORKS AND AMENDING SUBSECTION B. OF SECTION 3.20.060, SECTIONS 3.20.090 AND 3.20.100 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO PURCHASING. BE IT ORDAINED by the Council of the City of Bakersfield as follows: sEcTION 1. Chapter 3.22 ~is hereby added to the Bakersfield Municipal Code to read as follows: CHAPTER 3.22 CONTRACTS FOR PUBLIC WORKS Sections: 3.22.010 Purpose. 3.22.020 Bidding required - Exceptions. 3.22.030 Rejection of bids. 3.22.040I Minimum retention percentages - Bonding - Substitution of securities. 3.22.010 Purpose. This chapter is adopted to establish requirements and procedures for contracts for all public buildings and works, and supplies, equipment, and services related thereto, in accordance with Sections 135 and 136 of the Charter of the City of Bakers- field. 3.22.020 Bidding required - Exceptions. A. No contract for the erection, improvement or repair of any public building or works, or for the furnishing of supplies, equipment or services related thereto, for a sum in excess of twenty thousand dollars ($20,000.00) shall be awarded except to the lowest responsible bidder submitting a responsive bid. Contracts for a sum of twenty thousand dollars ($20,000) or less shall be subject to the procedure set forth in Section 3.20.100. B. Notices inviting bids shall be published at least five days before the date of opening of bids in a newspaper of general circulation published in the City. C. Whenever the Council, by resolution, determines that work, supplies, equipment or materials can only be reasonably obtained fro~ one vendor because of the restricted availability of such work, supplies, equipment or materials, or because of the ,necessity to successfully integrate such work, supplies, equipment or materials into an existing City project or system, a contract for such work, supplies, equipment or materials may be ~awarded without first seeking bids therefor. D. The City Council, after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates supplied by the City Manager, the work in ques- tion may be performed better or more economically by City employees or the materials or equipment may be purchased more economically on the open market, and after the adoption of a resolution to this effect by at least four affirmative votes of the Council, may pro- ceed to have said work done in the manner stated, without further observance of the provisions of this section. E. Such contracts may be let without advertising for bid if such work or supplies or equipment shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property, and shall be authorized by resolution passed by at least five affirmative votes of the City Council and containing a declaration of the facts constituting such urgency. 3.22.030 ~ejection of bids. The Council may, in its discretion, reject any and all bids and may readvertise for bids. 3.22.040 Minimum retention percentage - Bonding - Substitution of securities. A. Contracts for the erection, improvement or repair of any public building or work shall specify that ten percent (10%) of the contract price shall be retained by the City from each progress payment; provided, however, on contracts of $500,000 or more, once the work under the contract has been at least half com- pleted to the satisfaction of the City Engineer, the City Engineer may direct that no additional retention be withheld from future progress payments. B. The City shall require a faithful performance bond in an amount equal to one hundred percent (100%) of the contract price issued by an insurer admitted to transact the class of surety insurance in the State of California- C.' The provision of subsection A. not withstanding, to the extent required by law securities provided by the contractor may be substituted in lieu of any such retention. SECTION 2. Subsection B. of Section 3.20.060 of the Bakersfield Municipal Code is hereby amended to read as follows~ 3.20.060 ~iddin~. B. Bidding may be dispensed with only in those circum- stances specified in Section 136 of the City Charter or pursuant to the provisions of Section 3.20.100. SECTION 3. Section 3.20.090 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.090 Formal contract procedure. A. Except as otherwise provided in this chapter, pur- chases of supplies and equipment of an estimated value greater than twenty thousand dollars ($20,000.00) shall be by written order or contract with the lowest responsible bidder pursuant to the procedure prescribed in this section. B. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid blanks and specifications may be secured and the time and place for opening bids. 1. Published Notice. Notices inviting bids shall be published at least five (5) days before the date of opening of the bids. Notices shall be published at least once in a newspaper of general circulation published in the city. - 3 - 2. Bidders' List. The Finance DePartment shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list or from responsible prospective suppliers who have made a written request that their names be added thereto. 3. Bulletin Board. The Finance Department shall also advertise pending purchases by a notice posted on a public bulletin board in City Hall. C. Bidder's Security. When deemed necessary by the Finance Director, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all other bids and re-advertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and any difference between that bidder's bid and the price of the contract which is executed, and the surplus, if any, shall be returned to the lowest bidder. D. Bid Opening Procedure. Sealed bids shall be submit- ted to the Finance' Department and shall be identified as "bids" on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening. E. Rejection of.Bids. In its discretion, the City ~ Council may reject any and all bids presented. The City Council may order the Finance Department to re-advertise for bids pursuant to the procedure prescribed in this segtion. F. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re- advertising for bids, the City Council may in its discretion accept the one it chooses. - 4 - G. Performance Bonds. The Finance Department shall have authority to require a performance.bond from a corporate surety admitted to transact insurance business in the State of California in such amount as it finds reasonably necessary to pro- tect the best interests of the city. When the Finance Department requires a performance bond, the amount of the bond shall be set forth in the notice inviting bids. SECTION 4% Section 3.20.100 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.100 Open market procedure. A. Purchases of supplies and equipment of an estimated value in the amount of twenty thousand dollars ($20,000.00) or less may be made by the Finance Director in the open market pur- suant to the procedure prescribed in this section, and without observing the procedure prescribed in Section 3.20.090. B. Minimum Number of Quotes. Open market purchases shall, wherever possible, be based on at least three (3) written quotes. C. Notice Inviting Quotes. The Finance Director shall solicit quotes by written requests to prospective vendors, by telephone, and by public notice posted on a public bulletin board in City Hall, for single purchases amounting to more than ten thousand dollars ($10,000.00) but less than twenty thousand dol- lars and one cent ($20,000.01). D. Written Quotes. The Finance Director shall keep a record of all open market orders and quotes for a period of one year after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection. E. Oral'Quotes. A minimum of three oral quotes shall be obtained from prospective suppliers by the Finance Director when the amount involved is more than five thousand dollars ($5,000.0'0) but less than ten thousand dollars and one cent ($10,000.01), unless in the Finance Director'~ discretion written bids have been obtained or bidding has been dispensed with in accordance with Section 3.20.060. - 5 - F. Petty Cash. Purchases of five thousand dollars ($5,000.00) or less may be made through petty cash procedures pre- scribed by administrative rules and regulations. SECTION 5. This ordinance shall be posted in accordance with the City Charter provisions and shall be come effective thirty (30) days from and after the date of its passage. o0o- -6- ADMINISTRATIVE REPORT -~eting Date: Agenda Section: New Business Agenda Item: TO: Honorable Mayor and City Councilmembers ~pproved FROM:~ City Attorney's Office Department Head DATE: December 28, 1988 City Manager SUBJECT: An Ordinance of the Council of the City of Bakersfield adding Chapter 3.22 to the Bakersfield Municipal Code relating to contracts for public works and amending Subsection B. of Section 3.20.060, Sections 3.20.090 and 3.20.100 of the Bakersfield Municipal Code relating to purchasing. RECOMMENDATION: First reading. BACKGROUND: This ordinance implements the November, 1988 amendments to Charter Sections 135 and 136 and requires a 10% retention for progress payments for the first $500,000 of any contract, allowing the Public Works Manager discretion as to further retentions, and establishes different dollar thresholds for formal bidding of contracts ($20,000+), and open market procedure (written quotes for $10,000 - $20,000; oral quotes for $5,000 - $10,000; petty cash procedures set by administ'ra- tire rules and regulations for purchases involving $5,000 or less). AJS/sdf 4:ADMINRPT1 City of Bakersfield Proposed Changes in Purchasing Limits - Alt. #1 Required Procedure CUrrent Policy Alt. #1 · Formal Bids > $ 4,000 > $ 20,000 · Written Quotes> $ 2,500 > $ 10,000 · Oral Quotes > $ 400 > $ 5,000 · Open Market <= $ 400 <-- $ 5,000 City of Bakersfield Proposed Changes in Purchasing Limits - Alt. #2 Required PrOcedure Current Policy Alt. #2 · Formal Bids > $ 4,000 > $ 15,000 ,Written Quotes > $ 2,500 > $ 7,500 · Oral Quotes > $ 400 > $ 2,500 · Open Market· <= $ 400 <= $ 2,500 City of Bakersfield Proposed Changes in Purchasing Limits - Alt. #3 Required Procedure Current Policy Alt. #3 · Formal Bids ~ $ 4,000 ~ $15,000 · Written Quotes> $ 2,500 > $ 5,000 · Oral Quotes ~ $ 400 ~ $ 1,000 · Open Market <; $ 400 <; $ 1,000 MEMORANDUM March 10, 1989 TO: J. DALE HAWLEY, CITY MANAGER FROM:· GREGORY J; KLIMKO, FINANCE DIREC .SUBJECT: BIDS At the election of March 24, 1953 the voters approved Proposition No. 3 which provided Section 136 of the Charter of the City of Bakersfield be amended to provide that purchases or expenditures exceeding $1,500 shall be done by con- tract after advertising for bids, and to permit expenditure of not to exceed $2500 when unforeseen necessity arose during the progress of any public works. Subsequently, on November 3, 1964 the voters approved Proposition No. i (A) which in addition to other sections of the Charter amended Section 136 to pro- vide that when expenditures for public works and any supplies and materials exceeds $4,000 that it be done by contract and shall be be let to the lowest responsible bidder after notice in the official newspaper and that when these expenditures exceed $2,500 but, is less than $4,000, the same may be let to the lowest responsible~bidder by a process of informal bidding without the necessity of advertising inli~he official newspaper. GJK/ld cc: ·Mary Strenn Gil Rojas Darlene'Wisham GJK-S405.1 ~ · : M E M O R A N D U M Decembe~ 28~ 1988 TO: Vice-May~r Smith .... FROM: Arthur J. Saalfield, City Attorney,S" SUBJECT: Proposed Ordinances On 12~14/88 the Council approved City Managers' Report No. 3a-88, providing that each proposed ordinance, other than an ordinance re-zoning property or an emergency ordinance, be referred by the Vice-Mayor to a committee to be chosen bY the Vice-Mayor prior to Council action. Attached are the following four ordinances: 1. Contracting and Purchasing, ,~ ~'' 2. Auditori. um.~Committee, ~ 6L~o~. 3. Parking of Commercial Vehicles in Residential Districts, 4. Entry on Property by Animal Control Off,ers. Please 'refer these proposed ordinances to whichever. co~ittee you.deem appropriate. 0f the'four, the proposed ordinance on contracting and · ,~ purchasing needs the most i~ediate attention.., Thank you for your help. AJS:sdf 4'M.VMAYOR1 cc: J.P. Hawley M. Strenn C. Graviss R. Patterson E. Schulz J. Hardisty G. Klimko ' OADMINISTRATIVE REPORT Meeting Date: Agenda Section: Agenda Item: TO: Honorable Mayor a~d City Cou~cilmembers _Approved FROM: City'Attorney's Office .Department Head DATE: December 28, 1988 City Manager SUBJECT'. An Ordinance of the Council of the City of Bakersfield adding Chapter 3.22 to the Bakersfield Municipal Code relating to contracts for public works and amending Subsection B. of Section 3.20.060, Sections 3.20.090 and 3.20.100 of the Bakersfield Municipal Code relating to purchasing. RECOMMENDAT ION: First readi~ ng. BACKGROUND: This ordinance implements the November, 1988 amendments to Charter Sections 135 and 136 and requires a 10% retention for progress payments for the first $500,000 of any contract, allowing the Public Works' Manager discretion as to further retentions, and establishes different dollar t.hresholds for formal bidding of contracts ($20,000+), and open market procedure (written quotes for $10,000 -.$20,000; oral quotes for $5,000 - $10,000; petty cash procedures set by administra- tive rules and regulations for purchases involving $5,000 or less). AJS/sdf 4 .. ADMINRPT1 DRAFT ORDINANCE NO. , NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD ADDING CHAPTER 3.22 TO THE BAKERSFIELD MUNICIPAL CODE RELATING TO CONTRACTS FOR PUBLIC WORKS AND AMENDING SUBSECTION B. OF SECTION 3.20.060, SECTIONS 3.20.090 AND 3.20.100 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO PURCHASING. i BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Chapter 3.22 is hereby added to the Bakersfield Municipal Code to read as follows: CHAPTER 3.22 CONTRACTS FOR PUBLIC WORKS Sections: 3.22. 010 Purpose. 3.22.020 Bidding required - Exceptions. 3.22. 030 Rejection of bids. "3.22.040 Minimum retention percentages - Bonding - Substitution of securities. 3.22.010 Purpose. This chapter is adopted to establish requirements and procedures for contracts for all public buildings and works, and supplies, equipment, and services related thereto, in accordance with Sections 135 and 136 of theI Charter of the City of Bakers- field. ~ 3.22.020 Bidding required - Exceptions. A. No contract for the erection, improvement or repair of any public building or works,; or for the furnishing of supplies, equipment or services related thereto, for a sum in excess of twenty thousand dollars ($20,000.00) shall be awarded except to the lowest responsible bidder submitting a responsive bid. Contracts for a sum of twenty thousand dollars ($20,000) or less shall be subject to the procedure set forth in Section 3.20.100. B. Notices inviting bids shall be published at least five days before the date of opening of bids in a newspaper of general circulation published in the City. C. Whenever the CounciI, by resolution, determines that work, supplies, equipment or materials can only be reasonably obtained from one vendor because of the restricted availability of such work, supplies, equipment or materials, or because of the necessity to successfully integrate such work, supplies, equipment or materials into an'existing City project or system, a contract for such work, supplies, equipment or materials may be awarded without first seeking bids therefor. D. The City Council, after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates supplied .by the City Manager, the work in ques- tion may be performed better or more economically by City employees or the materials or equipment may be purchased more economically on the open market, and after the adoption of a resolution to this effect by at least four affirmative votes of the Council, may pro- ceed to have said work done in the manner stated, without further observance of the provisions of this section. E. Such contracts may be let without advertising for bid if such work or supplies or equipment shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property, and shall be authorized by resolution passed by at least five affirmative votes of the City Council and containing a declaration of the facts constituting such urgency. ~3.22.030 Rejection of bids. The Council may, in its discretion, reject any and all bids and may readvertise for bids. 3.22.040 Minimum retention percentage - Bonding - Substitution of securities. A. Contracts for the erection, improvement or repair of any public building or work shall specify that ten percent (10%) of the contract price shall be retained by the City from each progress payment; provided, however, on contracts of $500,000 or more, once the work under the contract has been at least half com- pleted to the satisfaction of the City Engineer, the City Engineer may direct that no additional retention be withheld from future progress payments. B. The City shall require a faithful performance bond in an amount equal to one hundred percent (100%) of the contract price issued by an insurer admitted to transact the class of surety insurance in the State of California. C. The provision of subsection A. not withstanding, to the extent required by law securities provided by the contractor may be substituted in lieu of any such retention. SECTION 2.' Subsection B. of Section 3.20.060 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.060 Bidding. B. Bidding may be dispensed with only in those circum- stances specified in Section' 136 of the City Charter or pursuant to the provisions of Section 3.20.100. SECTION 3. Section 3.20.090 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.090 ~rmal contract procedure. A. Except as otherwise provided in this chapter, pur- chases of supplies and equipment of an estimated value greater than twenty thousand dollars ($20,000.00) shall be by written order or contract with the lowest responsible bidder pursuant to the procedure prescribed in this section. B. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid blanks and specifications may be secured and the time and place for opening bids. 1. Published Notice. Notices inviting bids shall be published at least five (5) days before the date of opening of the bids. Notices shall be published at least ol]ce in a newspaper of general circulation published in the city. - 3 - 2. Bidders' List. The Finance Department shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list or from responsible prospective~ suppliers who have made a written request that their names be added thereto. 3. Bulletin Board. The Finance Department shall also advertise pending purchases by a notice posted on a public bulletin board in City Hall. C. Bidder's Security. When deemed necessary by the Finance Director, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) dayS.after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The City Council may, on refusal or failure of the successful bidder to.execute the contract, award it to the ne~t lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all ~ther bids and re-advertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and~any.difference between that bidder's bid and the price Of the contract which is executed, and the surplus, if any, shall be returned to the lowest bidder. D. Bid Opening Procedure. Sealed bids shall be submit- ted to the Finance Department and shall be identified as "bids" on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening. E. Rejection of Bids. In its discretion, the City Council may reject any and all bids presented. The City Council may order the Finance Department to re-advertise for bids pursuant to the procedure prescribed in this section. F. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re- advertising for bids, the City Council may in its discretion accept the one it chooses. - 4 - G. 'Performance Bonds. The Finance Department shall have authority to require a performance bond from a corporate surety admitted to transact insurance business in the state of California in such amount as it finds reasonably necessary to pro- tect the best interests of the city. When.the Finance Department requires a performance bond,'the amount of the bond shall be set forth in the notice inviting bids. SECTION 4. Section 3.20.100 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.100 ~Open market procedure. A~ Purchases of supplies and equipment of an estimated value in the amount of twenty thousand dollars ($20,000.00) or less may be made by the Finance Director in the open market pur- suant to the procedure prescribed in this section, and without observing the procedure prescribed in Section 3.20.090. B. Minimum Number of. Quotes. Open market purchases shall, wherever possible, be based on at least three (3) written quotes. C.~'~ Notice Inviting Quotes. The Finance Director shall solicit quotes by written requests to prospective vendors, by telephone, and by public notice posted on a public bulletin board in City Hall, for single purchases amounting to more tha~l ten thousand dollars ($10,000.00) but less than twenty thousand dol- · lars and one cent ($20,000.01). D. Written Quotes. The Finance Director shall keep a record of all open market orders and quotes for a period of one year after the submission of quotes or the placing of orders. This record, while .so kept, shall be open to public inspection. E. Oral Quotes. A minimum of three oral quotes shall. be obtained from prospective suppliers by the Finance Director when the amount involved is more than five thousand dollars ($5,000.00) but less than ten thousand dollars and one cent ($10,000.01), unless in the Finance Director's discretion written bids have been obtained or bidding has been dispensed with in accordance with Section 3.20.060. - 5 - F. Petty Cash. Purchases of five thousand dollars ($5,000.00) or less may be made through petty cash procgdures pre- scribed by administrative rules and regulations. ~ SECTION 5. This ordinance shall be posted in accordance with the City Charter provisions and shall be come effective thirty (30) days from and after the date of its passage. o0o - 6 - I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED MAYOR of the City of Bakersfield APPROVED as to form: CITY ATTORNEY of the City of Bakersfield AJS/meg O ORD 4 PA.PW1 12/12/88 -- 7 -- City of Bakersfield Proposed Changes in Purchasing Limits - Alt. #2 Required Procedure Current Policy Alt. #2 · Formal Bids > $ 4,000 > $15,000 · Written Quotes > $ 2,500 > $ 7,500 · Oral Quotes > $ 400 > $ 2,500 · Open Market <= $ 400 <= $ 2,500 City of Bakersfield Proposed Changes in Purchasing Limits - Alt. #3 Required Procedure Current Policy Alt. #3. · Formal Bids > $ 4,000 > $15,000 · Written Quotes > $ 2,500 .> $ 5,000 · Oral Quotes > $ 400 > $ 1,000 · Open Market <= $ 400~ <= $ 1,000 CITY OF, AN[) YEAR WRITTEN QUOTES FORMAL BID LIMITS ESTABLISIIED Modesto - 1976 '' over $ 500.00 $ 5,'000.00 ....... (has requested raise to $20,000.00) Pomona - 1986 .. over $ 2,000.00 $10,000.00 llay~ard - 1984 over $ 2,500.00 $15,000.00 Oakland under $15,000.00 $15,000.00 Redlands - 1984 over $ 2,500.00 $20,000.00 Stockton - 1982 ....... under $20,000.00 $20,000.00 Inglewood - 1980 over $ 5,000.00 $25,000.00 Fresno - misc. over $ 1,000.00 $ 6,500.00 Public Works Projects $26,5o0.00 November 30, 1988 CITY OF, AND YEAR WRITTEN QUOTES ' FORMAL BID ~LIMITS ESTABLISIIED ~odesto - 1976 over $ 500.00 $ 5,'000.00 ......(has requested raise to $20,000.00) Pomona - 1986 " over $ 2,000.00 $10,000.00 . .... tlay~ard - 1984 over $ 2,500.00 $15,000.00 Oakland under $15,000.00 $15,000.00 Redlands - 1984 over $ 2,500.00 $20,000.00 Stockton - 1982 under $20,000.00 $20,000.00 Inglewood - 1980 over $ S,O00.O0 $25,000.00 Fresno - misc. over $ 1,000.00 $ 6,500.00 Public Works ProjectS $26~500.00 FLOW CHART FOR PURCHASE OF PUBLIC WORK AND SUPPLIES OEPRRTMENT OPEN BIOS RNO NEEDS ITEM REQUISITION ~ PURCHRSING VERIFY RVRI~BILITY OF FUNDS BIDDINO RGENDR FOR  COUNCIL ~NSIDERRTION VENDOR'LIST IF RPPROVED A~ARD BY COUNCIL BUDGET AND FINANCE COMMITTEE REPORT NO. 12-89 March 29, 1989 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: PURCHASING ORDINANCE On January 10, 1989 the Vice-Mayor referred a proposed Ordinance relating to purchasing to the Budget and Finance Committee for review. This Ordinance implements the November, 1988 amendments to Charter Sections 135 and 136 and requires a 10% retention for progress payments for the first $500,000 of any contract, allowing the Public Works Director discretion as to further retentions, and establishes different dollar thresholds for requiring formal bidding of contracts which are $20,000 or greater. Also included are open market bidding procedures (written quotes for purchases from $10,000 to $20,000; oral quotes for purchases from $5,000 to $i0,000; and petty cash procedures set.by administrative r'u]es and regulations for purchases of $5,000 or less). The Committee has met and discussed bhe proposed Ordinance with staff and recommend .that the proposed Ordinance be given first reading. Respectfully Submitted, Councilmember Donald K. Ra'bty Councilmember James Childs Councilmember Kevin McDermotb ORDINANCE NO. , NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD AMENDING SECTIONS 3.20.060, 3.20.090 AND 3.20.100 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO PURCHASING. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Section 3.20.060 of the Bakersfield Municipal Code is ~]ereby amended to read as follows: 3.20.060 Bidding. A. Bidding required'. Except as provided below or in Section 3.20.040, all contracts for the erection, improvement or repair of any 'public buildings or works, or in furnishing any supplies, equipment and materials for the same, or for any othe~ use by the City, shall be by bid procedures pursuant to Sections 3.20.090 and 3.20.100. B. Rejection of bids. The City Council may, in its discretion, reject any and all bids and may readvertise for bids. C. Award of bid. Except as otherwise provided in this .chapter, all. bids shall be awarded by the City Council to the low-. est responsible bidder submitting a responsive bid. D. Bidding exceptions. Bidding may be dispensed with pursuant to the procedures prescribed in this Section and Section 136 of the City Charter. 1. The City Council, by Resolution, determines that work, supplies, equipment or materials can only be reasonably obtained from one vendor because of restricted availability of such work, supplies, equipment or materials, or because of the necessity to successfully integrate such work, supplies, equipment or materials into an existing City project or system. 2. The City Council determines that projects for the resurfacing, maintenance or repair of streets, drains or sewers can be performed more economically by a City departme.nt.than by contracting for such work. 3. The City Council, after rejecting bids, or if no bids are received, by a resolution adopted by at least four (4)~ affirmative votes declares that, in its opinion, based on esti- mates supplied by the City Manager, the work in question may be performed better or more economically by City employees or the supplies, equipment or materials may be purchased more economi- cally on the open market. 4. The City Council, by a resolution adopted by ~t least five (5) affirmative votes containing a declaration of facts, deems work, supplies, equipment or materials to be cf urgent necessity for the preservation of life, health or property. SECTION 2. Section 3.20.090 of the Bakersfield Municipal Code is hereby amended to read as follows: 3.20.090 Formal contract procedures. A. Except as otherwise provided in this chapter, the erection, improvement or repair of any public building or works or in furnishing any supplies, equipment and materials for same or for any other use by the City with an estimated value greater than twenty thousand dollars ($20,000.00) shall be by written contract or order with the lowest responsible bidder pursuant %o the proce- dure prescribed in this section. B. Notice inviting bids. 'Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid forms and specifications may be secured and the time and place for opening bids. 1. Published notice. Notices inviting'bids shall be published at least five (5) days before the date of the opening of %he bids. Notices shall be published at least once in a news- paper of general circulation published in the city. 2. Bidders' list. The Finance Department shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list or from responsible prospec- tive suppliers who have made a written request that their names be added there%o. 3. Bulletin board. The Finance Department shall also advertise pending purchases by a notice posted on a public bulletin board in City Hall. - 2 - C. Bidder's security. A bid bond in an amount equal to ten percent (10%) of the bid shall be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall for- ieit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of con- tract has been mailed, unless in the latter event the city is solely responsible for the 'delay in executing the. contract. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the ne×t low- est bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all other bids and re-advertises, the amount of the l~west bidder's security may be used to offset the cost of receiving new bids and any difference between that bidder's bid and the price of the contract which is executed, and the surplus, if any, shall be returned to the lowest bidder. D. Bid opening procedure. Sealed bids shall be submit- ted to the Finance Department and shall be identified as "bids" on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular busi- ness hours for a period of not less than thirty calendar days after the bid opening. E. Tie bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will-~not permit the delay of re- advertising for bids, the City Council may in its discretion accept the one it chooses. F.· Performance bonds. The City shall require a faith- ful performance bond in an amount equal to one hundred percent (100%) of the contract price issued by an insurer admitted to transact the class of surety insurance in the State of California. G. Retention percentage. Contract for the erection, improvement or repair of any public building or work shall specify that ten percent (10%) of the contract price shall be retained by the City from each progress payment; provided, however, on con- tracts of $500,000 or more, once the work under the contract has been at least 50% completed to the satisfaction of the City Engineer, the Finance Director may direct that no additional retention or a retention of less than ten percent (10%) be with- held from future progress payments. - 3 - H. Substitution of securities. The provisions of sub- section G. not withstanding, to the extent required by law securi- ties provided by the contractor may be substituted in lieu of any such retention. SECTION 3. Section 3..20.100 of the Bakersfield Munici~pal Code is hereby amended to read as follows: 3.20.100 Open market procedure. A. The erection, improvement or repair of any public buildings or works or in furnishing any supplies, equipment and materials for same or for any other use by the City with an esti- mated value in the amount of twenty thousand dollars ($20,000.00) or less may be made by the Finance Director in the open market pursuant to the procedure described in this section without observing the procedure prescribed in Section 3.20.090. B. Minimum number of quotes. Open market purchases shall, wherever possible, be based on at least three (3) quotes. C. Written quotes. The Finance Director shall solicit written quotes from prospective vendors by telephone, written request and by public notice posted on a public bulletin board C%ty Hall for single purchases of more than ten thousand dollars ($10,000.00) and less than twenty thousand dollars and one cent ($20,000.01). D. Records retention. The Finance Director shall keep a record of all open market orders and quotes for a period of'~wo .years after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection. E. Oral quotes. The Finance Director shall obtain oral quotes, from prospective vendors for single purchases of ten thousand dollars ($10,000.00) or less, except when (1) written quotes have been obtained, (2) the amount involved is less than five thousand dollars and one cent ($5,000.01) and the Finance Director has determined more than one quote to be impractical, (3) bidding has been dispensed with in accordance with Section 3.20.060, or (4) the purchase is to be made though petty cash procedures. F. Petty cash. Purchases may be made through petty cash procedures prescribed by administrative rules and regulations. Neither bids or quotes~shall be required for petty cash purchases. - 4 - SECTION 4. This ordinance shall be posted in accordance with the City Charter provisions and shall be come effective thirty (30) days from and after the date of its passage. 'O00- I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the ~City Of Bakersfield at a regular meeting thereof held on , by the following vote: ? CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED .... CLARENCE E. MEDDERS MAYOR of the City of Bakersfield APPROVED as to form: ARTHUR J. SAALFIELD CITY ATTORNEY of the City of Bakersfield AJS/meg O ORD 4 PURCHASE1 3/22/89 City of Bakersfield Proposed Changes in Purchasing Limits'-'Alt #1 Required Procedure Current Policy Alt. #1 · Formal Bids > $ 4,000 > $ 20,000 · Written Quotes> $ 2,500 > $ 10,000 · Oral Quotes ' > $ 400 > $ 5,000 · Open Market <= $ 400 <= $ 5,000 City of Bakersfield Proposed Changes in Purchasing Limits - Alt. #2 Required Procedure Current Policy Alt. #2 · Formal Bids > $ 4,000 > $15,000 · Written Quotes> $ 2,500 > $ 7,500 · Oral Quotes > $ 400 > $ 2,500 · Open Market <= $ 400 <= $ 2,500 City of Bakersfield Proposed Changes in Purchasing Limits - Alt;-.#3 Required Procedure Current Policy Alt. #3 · Formal Bids > $ 4,000 > $15,000 · Written Quotes> $ 2,500 > $ 5,000 · Oral Quotes > $ 400 > $ 1,000 · Open Market <= $ 400 <= $ 1,000 OADMINISTRATIVE REPORT Meeting Date: Agenda Section AgendaNeW BusinesSitem: TO: Honorable Mayor and City Councilmembers Approved FROM: City Attorney's office D_~partment Head DATE: December 27, 1988 City Manager SUBJECT: An ordinance of the Council of the City of Bakersfield repealing Section 6.04.240 of the Bakersfield Municipal Code relating to entry on property by animal control officers. RECOMMENDATION: First reading. Section 6.04.240 of the Bakersfield Municipal Code to give animal control officers authority purports to enter onto private property in order to enforce laws relating to animal control'. It gives the officers no more authority than they already have law, and is therefore unnecessary. AJS/meg NB.26 MEMORANDUM December 28, 1988 TO: Vice-Mayor Smith FROM: Arthur J. Saalfield, City Attorney SUBJECT: Proposed Ordinances On 12/14/88 the Council approved City Managers' Report No. 3a-88, providing that each proposed ordinance, other than an ordinance re-zoning property or an emergency ordinance, be referred by the viCe-MayOr to a committee to be chosen by the - Vice-Mayor prior to Council a'ction. Attached are the following four ordinances.: 1. Contracting and Purchasing, ,~ j~.'--~ ! .... ,...,~.~, ' 2. AuditorLum-'Committee, -- ~. F ' -~r~~- ~- ~' 3. Parking of Commercial Vehicles in Residential Districts, ~~e- . 4. Entry on Property by Animal Control offimers. - ' ~J'~~[~~ Please refer these proposed ordinances to whicheVer. committee you deem appropriate. Of the four, the proposed ordinance on contracting and · purchasing needs'the most immediate attention. Thank you for your help. AJS:Sdf 4 M.VMAYOR1 cc: J.D. Hawley M. Strenn C. Gravies R. Patterson E. Schulz J. Hardisty G. Klimko DRAFT ORDINANCE NO .... , NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD' REPEALING SECTION 6-04-240~OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO ENTRY ON PROPERTY BY ANIMAL CONTROL OFFICERS. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Section 6.04.240 of the Bakersfield Municipal Code is hereby repealed. SECTION 2. 'This ordinance shall be posted in accordance with the City Charter provisions and shall be come effective thirty (30) days from and after the date of its paSsage. o0o I HEREBY CERTIFY that the foregoing ordinance was Passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on __, by the following vote: CITY CLERK and Ex Off~cio Clerk of the Council of the City of Bakersfield APPROVED --MAYOR of the City of Bakersfield APPROVED as to form: CITY ATTORNEY of the City of Bakersfield LCM/meg O ORD 5 REPEALBMC3 11/3/88 - 2 - OFFICE of TILE' CITy A TTOItNEY ARTHUR J. sAALFIELD CITY A ITOI~NEY ~501 TI~UXTUN AVENUE MUNICIPAL LAW: BAKEFtSFIELD, CALIFOF~NIA g3301 LIIIGA 11ON: DON McGILLIVRA Y ALAN OALE DANIEL (805) 326-372 ! Assistan! City AIIorney Assistant City Altorney November ] ~ ~ 8 8 ROBEFtT M. SttEtlFY LAURA C. MArIINO Oeputy Cily Attorney Deputy Cily Attorney WILLIAM H. SLOCUMB, JR. Deputy City Attorney Mr. Frank Geddes IAIVESI'IGAIIONS: Executive Director oor; ~nr~N Society for the Prevention Ci{yA{tomey hwes{iOalor of Cruelty to Animals 3000 Gibson Bakersfield, CA 93308 Dear Mr. Geddes: This is a somewhat belated follow-up to our September 26 meeting. It was brought to my attention by a member of the public that employees of' the SPCA have been using Bakersfield Municipal Code Section 6.04.240 to enter into people's homes to investigate possible code violations with respect to animals. As I explained at the meeting, this is constitutionally impermissible. That par- ticular code section was initially passed to allow SPCA employees to walk upon private sidewalks, lawns and other areas to detect violations. That type of entry, however, would be lawful .with or without such an ordinance. We are therefore in the process' of repealing Bakersfield Municipal Code Section 6.04.240. since our last meeting, I received a complaint from the Police Department that SPCA officers are going door-to-door asking' property owners if they own dogs; if they do, and if the dog is not licensed, they are lSSUl g citations The problem with this 'method is that a person cannot be convicted of a crime (code . violation) based merely on his representatiOn 'that he or she is not in compliance. It is necessary to obtain independent evidence of the violation (e.g., a dog in the house and no record ~of a license). As I mentioned at the meeting, the Police Department is available to speak to your officers and help them to understand what they can and cannot lawfully do, and where they can and can- not venture without a warrant. Please let me know if you have any questions. Sincerely, .. Laura C. Marino LCM/,neg Deputy City Attorney L.GEDDES1 Cc: John Stinson, City Manager's office n ....bi ~ ~ t-v Attorn~v Investiqator ' ~ 'r~'x DAltEI1SFIELD SOCIETY F011 HIE PI1EVEFITIOFi OF Cl1uELTy I0 AHIMALS S.P.C.A. Pet Adoption Center, 3000 Gibson $1reet, 13akersflekl, CaliIornia 93308 18051 .t23-8353 S.P.C.A. Animal Control Shelter, 6851 Edison Highway, Bakersfie_ld, California 93307 (805) 366-3234 9 November :[988 Ofllcers and OIrectors Laura C. Marine Ftoth^nn K. Harper Deputy City Attorney P,esldent City of Bakersfield Oreg9 }toneg~Jer 1501 Trux£un Avenue President Elect Bakersfield, CA 93301 Klm McNelll vice President Dear Ms Marine: Laf*¥ Radanovlch Past President I have received your letter of 3 November and have reviewed ils contents Elhel MIkStts ,o~ordl., Sec,eta,V with our Licensing Department staff. ' Stella McMurtrey T,easurer As you stated in your letter, you informed me on 26 September of the ~,jo,,. e,~ city's intention to repeal Bakersfield Municipal Code Section 6.04.240. A~ my first s~aff ~neeting as Executive Director I brough~ this-to the Dr. No,man Loh*, D.V.M. attention of my staff. I[ was, is, and shall remain Bakersfield SPCA ~,~.~az~. policy ~l~a[ licensers are not to enter people's homes. The one officer ~. c.e.ev who had been a flagrant violator of this policy prior to my employment ~.o~ ~o.~.,~. has been terminated, and all current licensing o~cers are in M~,~ ~.m~, cm~pliance. o~,,~, wm.,o. As to the complaint that our officers are citing citizens for licensing violations without the licenser having seen the dog, my staff has been E.,.,v, m,,~o, briefed and is now in compliance. We are doing our best to lawlhlly ~,z,~ B. a,~e~ fulfill the letter and intent of our city contract, and I appreciate your bringing the current complaint to my attention. Sincerely, FR~K B. GEDDES Executive DirecCor FBG/gf cc: John Stinson, Assistant to the City Manager ~al.., ....... t ............... ttlh,,lJnnQ · Iqnnatinn.~ ara lax deductible 6.04.230--6.04.270 that he has such dog in his possession and shall, 6.04.250 Animal wardens--i':nforeemenl upon demand, surrender possession of sueh dog duties. to the health officer. It shall be the duty of the A. The animal wardens of the city have the health officer to take custody of any such dog duty to enforce the provisions of Title 6 of this immediately upon reeeipt of sueh notifieation eode. and impound the same sub~eet to the provisions B. Animal wardens are authorized to make of this ehapter pertaining to the redemption and/ arrests of a person without a warrant whenever or disposition of dogs taken up by him. (Prior sueh warden has reasonable cause to believe that code § 9.08.230). the person to be arrested has committed in his presence a violation of Title 6 of this code. (Prior 6.04.230 Keeping noisy 9nimals~ code § 9.08.260). C:omplnints~ln~estiggtion. A. No person shall keep or maintain, or eause 6.04.260 Animal wgrdens--Carrying loaded or permit to be kept or maintained upon any firearms authorized. premises in the eity, or upon any publie street, The animal wardens of the city are authorized highway, sidewalk, alley, park, playground or to carry a loaded firearm on their person when other public place in the city, any animal, bird or acting in the course and sqope of their employ- fowl which by any barking, howling, whining, ment. (Prior code § 9.08.270). crowing or by any sound or cry. whatsoever dis- turbs the peace and comfort of any neigh- 6.04.270 Violation--penalty. borhood or interfere with the reasonable and A. Any person owning, or having the care. comfortable enjoyment of life or property by any custody or control of any dog in the city who person. Every day during which any person con- wilfully refuses, fails or neglects to furnish to the tinues to keep or maintain any such animal, bird health officer, license collector or any duly or fowl shall be a separate violation of this chap- qualified and licensed physician or veterinarian ter. authorized to vaccinate and license dogs and B. It shall be the duty of the chief of police to collect the license fees thereon, as provided in receive and investigate orcause to be investigated this chapter, the intbrmation necessary to prop- allcomplaintsregardinganyanimai, birdorfowl erly vaccinate and license such dog, or who being kept or maintained in violation of the resists, hinders or prevents the health officer or provisions of this section, and to enforce the any of his assistants in the exercise of his duties, provisions of this chapter. (Prior code § or who fails, neglects or refuses to pay the license 9.08.240). fee at the time and in the manner provided in this chapter, or who violates any of the provisions of 6.04.~40 Entry on private premises or this chapter, with the exception of Section public property. 6.04.230, shall be guilty ora misdemeanor, and In the entbrcement of this chapter, animal- upon conviction shall be punishable by a fine of control officers may enter upon private or public not more than three hundred dollars or by property in order to issue citations or warnings, imprisonment in the county jail of the county for to obtain intbrmation about a dog or dogs, to not more than ninety days, or by both such line inspect prcmises lbr the restraint of dogs deter- and imprisonment. mined to be vicious or to remove dogs from the B. Any person who violates any provision of premises where necessary to impound them. Section 6.04.230 shall be guilty of an infraction (Prior code § 9.08.245). and upon conviction thereof shall be punishable by: ~Bakcrsfi¢ld 6-861 302 E M 0 R A N D U December 23, 1988 TO: HONORABLE MAYOR'AND MEMBERS OF CITY COUNCIL FROM: J. DALE HAWLEY, CITY MANAGER SUBJECT: SOUTHEAST ENTERPRISE ZONE CORPORATION The attached letter was received by this office on December 15, and summarizes the position taken by the State Enterprise Zone Program Manager during a meeting with members of my office, Economic Development Division staff and representatives of Kern County on December 9. The 'City/County, as part of the Memorandum of Understanding executed with the State of California, agreed to provide marketing services. during the "enterprise zone" designation period. The form of this marketing effort was not specified but left to the discretion of the designated "enterprise zone" agents (City Manager and County CAO). A number of pertinent factors were considered when "enterprise zone" designation was received and the determination was made that initially the most effective method of marketing the "zone" was by contracting with a community based organization for these services. The SEEZ (South East Enterprise Zone) Corporation, which had been active in the effort to obtain state designation, was deemed the~logi- cal marketing agent. Consequently, a contract was executed with the SEEZ Corporation to complete a marketing plan and then was extended to include implementation activities. The reasons for choosing the SEEZ Corporation were its community based organization (CBO) status and the fact that the Board of Directors, which consisted of area business persons, were known by the business and residential community through their development effOrts over the previous several years. Funds from Community Development Block Grant monies were used to~con- tract for the marketing services at a rate of approximately $60,000 per year. The existing contract was executed on March 17 of 1987 and has been extended seven times with the last extention expiring on February 19, 1989. In response to the position taken in the attached letter, I have instructed staff of the Economic Development Division to initiate dis- cussions with staff of the Kern County Community Development Program Department re~tive to the options available to the City/County in order to meet our commitment to the State regarding marketing. Available options and recommendations should be forthcoming in early January. cr S:M.PS75 STATE OF CALIFORNIA--BUSINESS, TRANSPORTATION /-ND HOUSING AGENCY GEORGE DLJKMEJIAN. Governor ~EPARTMENT OF COMMERCE ~ 1121 L STREET. SUITE' 600 SACRAMENTO CA 95814 December 13, 1988 Mr. Ji., Dale Hawley~ City Manager City of Bakersfield DSC 15 1988 1501 Truxtun Avenue Bakersfield, CA 93301 CiTY MANAGER, S OFFICE Dear Mr. Hawley: A little over two years ago, the State of California designated portions of the City of Bakersfield and the County of Kern as an Employment and Economic Incentive Area (EEIA). The purpose of the program is to attract business investment to the Bakersfield progr'am area' and create employment opportunities for residents of the high density unemployment area. After two years, we are very concerned about the lack of industry attraction results as well as a lack of professionalism on the part of the South East Enterprise Zone Corporation (SEEZ), your,marketing agent. We view SEEZ Corporation as an organization that is to a great extent self'serving and we are extremely concerned about the lack of judgment that SEEZ has displayed, particularly in their past involvement with Mr. Lou Griffin. We are recommending, in the. strongest terms, that your existing contract with BEEZ Corporation not be renewed. This aCtion would not violate any contractual agreement between the City of Bakersfield/County of Kern and the State of California. It would insure a greater probability of success for the program and lobs for area residents. This action will also insure continued designation for Bakersfield as an EEIA. We encourage the City to consider creating a full-time program coordinator position which-all other EEIA communities have done. Such a position should be funded from the general fund to demonstrate a long-term commitment to the program. We will be happy to work with you to formulate criteria for a lob description as .well as qualification requirements. :'~ ~--, Mr. Hawley -2- December 13, 1988 Please let me know what questions I can answer or how I can assist in implementing these requests. Sincerely, Paul Hiller, Manager Enterprise Zone Programs (916) 322-3401 PH:cs2084J cc: Geary Taylor, County of Kern CITY COUNCIL REFERRAL MEETING OF: DECEMBER 14, 1988 REFERRED TO: BUDGET AND FINANCE COMMITTEE - JOHN STINSON ITEM: CONSENT CALENDAR 9. n. Acceptance of Comprehensive Annual Financial Report and the Federally required Single Audit Report for the 1987-88 Fiscal Year. MOTION TO DIRECT STAFF TO REVIEW SALES TAX REVENUE AND REPORT BACK TO BUDGET AND FINANCE COMMITTEE. ACTION TAKEN BY COUNCIL: APPROVED WITH ALL AYES - RATTY ABSENT. BACKUP MATERIAL ATTACHED: NO DATE FORWARDED BY CITY CLERK: DECEMBER 29, 1988 STATUS: REFERRAL2 MEMORANDUM March 28, 1989 TO: GREGORY J. KLIMKO, FINANCE DIRECTOR A FROM: BILL DESCARY, TREASURER ~ SUBJECT: SALES TAX/PROPERTY TAX REVENUE In our Comprehensive Annual Financial Report for the year ended June 30, 1988, Councilman McDermott noted that since 1979 property tax revenues have increased at a greater rate than sales tax revenues. He pointed out that since 1979 sales tax revenues have increased 71 percent while property tax revenues increased 173 percent. It was also noted that in the same period population increased 60 percent. After an adjustment for inflation, it was projected that sales tax revenues should have increased 130 percent. At this rate sales tax revenues should have been $7 million more to keep pace with population growth. The concern is that the City may not be receiving all the sales tax revenue to which it is entitled. In 1984 the City contracted with Municipal Resource Consultants (MRC) to do an audit of the City's sales tax permit holders to assure they were reporting sales correctly and Bakersfield was receiving proper credit. As part of the audit procedure MRC obtained from the State Board of Equalization a list of all sales tax permit holders in the City. This list was compared with our business license file as a means of determining those firms that did not have a sellers permit sub number coded for Bakersfield. This happens when a multi location permit holder opens a branch and does not obtain a sub number for that location. Under a separate agreement MRC also audited our business license file by identi- fying those firms that had a sales tax permit but did not have a business license. Relatively few firms were identified in the business license audit. These firms were then contacted by the City to come into Code compliance. The sales tax audit resulted in 31 firms which were identified as making sales in Bakersfield without the City receiving the sales tax. MRC worked with the individual firms to obtain a Bakersfield sub number and correct their report- ing procedure. MRC also contacted the Board which is allowed to go back three fiscal quarters to' correct reporting errors and reallocate to the proper jurisdiction. The audit took three years to complete and in all $1 million of sales tax revenue was reallocated to Bakersfield. MRC was paid 50 percent of the reallocation under terms of the agreement. Page 2 Budget & Finance Committee March 28, 1989 We learned a lot about sales tax revenue monitoring from MRC. We started requiring a valid sales tax permit number on business license applications. Since the MRC audit we have monitored all firms in the City that pay $10,000.00 or more per quarter in sales tax. We now monitor about 125 firms which accounts for about 60 percent of our sales tax revenue. Once a firm crosses the thresh- old and pays $10,000.00 in a quarter, they remain under scrutiny for two years. The two year data base is established for each firm to compare like quarters for seasonal variation. When no money is received from a firm for two consecutive quarters we notify the Board immediately. We have excellent rapport with the Board's office locally and in Sacramento. About a year ago we noted three firms had not reported for two consecutive quar- ters. The Board was notified and after they corrected the errors and reallo- cated properly we received over $200,000. It was found that two firms had been sold and internal changes in another caused them to get new sellers permit num- bers and the new numbers were not coded for Bakersfield. The Board admittedly errored. They have a staff of about 30 in Sacramento that processes returns and does allocations to all (1,200) jurisdictions in the State. As part of our sales tax monitoring program we receive numbers of all permits and sub numbers issued for Bakersfield from the Board monthly. This data is reconciled to business licenses issued during the month. Our sales tax revenues are effected by "outshoppers." These are City residents who 9o outside the City to make purchases. It includes shoppers that take a retailer provided bus to the Glendale Gallaria or groups that charter a bus or rent a van to go to the Los Angeles garment district to shop. Outshoppers also include those that buy atutomobiles outside City limits. The outshopper impact is difficult to measure. Bob Fletcher, a research professor at Cal State Bakersfield, estimates that it would cost between five and ten thousand dollars to develop a questionnaire and conduct a survey to measure outshopper effect depending on the confidence level desired in the statistical sample. Through our sales tax monitoring program we are confident the City is receiving the sales tax revenue it should be receiving. However, to possibly improve our sales tax revenue forecasting techniques we are undertaking an in-house regres- sion analysis to determine the impact, if any, of fluctuations in oil and cotton prices, other agricultural products and unemployment. We anticipate this analy- sis will be completed in 30-60 days. In order to compare the trends in property tax and sales tax revenues, we con- ducted a telephone survey of ten California cities somewhat comparable in popu- lation to Bakersfield. Five cities are North of Bakersfield and five are South. We gathered revenue data by fiscal year beginning in 1979-80 through 1987-88. As the attached chart indicates, property tax revenues are growing faster than sales tax revenues in all cities with the exception of Modesto where, in 1982, the largest shopping mall between Sacramento and Fresno was completed along Freeway 99. Page 3 Budget & Finance Committee March 28, 1989 Since 1979 we have annexed ten thousand acres. The annexed population was about eight thousand. The impact on sales tax was probably nill because these people were already shopping at City stores. Much of the annexed acreage was undeve- loped and since annexation new construction has occurred on this land. New construction, remodels and additions to structures do not have the Proposition 13 veil and are taxed at full value. Additionally, property that is sold is reappraised to reflect current value. Our growth in population and area appears to have a much greater impact on property tax revenues than sales tax revenues. In view of our projected growth the trend is expected to continue. The impact on property tax revenues due to new construction, additions to struc- tures, changes in property ownership as well as inflation will require addi- tional study. BD/ld cc: Mary Strenn Gil Rojas JJohn Stinson Attachment 032889BD ~-~iI, PERCENTAGE INCREASE FRO,~i FISCARL ','EAR 1979/80 TO 1987/88 i~ ' , : C~ONCORD---FRE~tONT--- FRESNO ..... ,~IODESTO ~' STOCKTON~---GLENDALE-~OXNARD--'PASA'DENA----'RIVERS I DE---SAN'-BERNAD [ NO---BA'KERS~E~D ~,} ..... ~POPU LA-T-I ONcHANGE 1Q8'~'900~t 6'5 ~-200----308; 700-'-~q 447'700 ..... 189-; 192 ..... 16 1~; 900---1-267'100-~1-327000 -2067026 1-4873gO 1-5~0 i; ' -SALES-TAX 95;-6~ l-O 7x*ON 84-:q~- 1.74-:-6% .... 69-;'-5~ .... 83~4~ 67~9g .... 9372~ .... 99'rl ~- ~ ~ CHANGE ~u ~ PROPERTY---TAX ---166 ,--1% .... 209-.-7%~1-24., 5% .... 1-13,-7% ......... 92-: 5% ....... 15-1--; 1~ 186-;-.3% ...... 1.40;-7%- 255~8% .... :"- ............................................................................................................. MEMORANDUM December 5, 1988 To: Mary Strenn, Assistant City Manager From: Michael L. Kennedy, Information Systems Manager Subject: Employee Purchase ASsistance'Program .The objective of the program is to provide assistance to City employees who desire to purchase a personal computer for home use. In this time of emerging technologies, computer literacy has become an essential part of many jobs her at the City. With over 150 computer devices in various offices it is important that an employee be knowledgeable in the use of some form of computer equipment. With a personal computer at home the employee will be more effective at the office. The assistance program will provide the employees with a lower cost payment plan than would otherwise be available, The plan is proposed as an adjunct of the signature loan from the Bakersfield City Employees Credit Union and will work as follows: 1, The employee will request to be a participant in the assistance program by filling out a request form and turning it into the Data Processing division, 2. The Data Processing division will provide assistance, if required to the employee in selecting a particular piece of h,ardware and forward the request to the credit union. 3. The employee will go through the normal signature loan process and will be granted a signature loan not to exceed $3,000 with the employee providing 20% down to the credit 'union. The interest rate will be 10% which is lower than the normal signature loan rate of 15%. 4. The employee will only be required to pay 5% of the 10% interest during the loan payment period with the City picking up the remaining 5%. 5. In the event that the employee leaves City employment, at the time of termination the employee will be liable for the entire 10% interest until the loan is satisfied. EMPLOYEE PURCHASE ASSISTANCE PROGRAM EXAMPLE OF FINANCIAL IMPACT ITEM TO BE PURCHASED: PERSONAL COMPUTER SYSTEM $3,000.00' WITHOUT INCENTIVE PROGRAM: Credit union signature loan amount: 3,000.00 Total interest amount ( 14%, 36 Mo. payments) 689.64 Total cost to employee 3,689.64 WITH INCENTIVE PROGRAM: EMPLOYEE CITY SHARE CHARE 20% Down payment required by Credit Union: 600.00 Loan amount 2,400.00 Total interest amount (10%, 36 Mo. payments) 193.49 193.49 Total cost to employee 3,193.49 NET SAVINGS TO EMPLOYEE 3,689.64 - 3,193.49 : 496.15 NET COST TO CITY 193.49 To: Mary Strenn, Assistant City Manager From: Michael L. Kennedy, Information Systems Manager Subject: Employee Purchase Assistance Program The objective of the program is to provide assistance to City employees who desire to purchase a personal computer for home use. In this time of emerging technologies, computer literacy has become an essential part of many jobs her at the City. With over 150 computer devices in various offices it is important that an employee be knowledgeable in the use 'of some form of computer equipment. With a personal computer at home the employee will be more effective at the office. (~.~ ~ ~ 5 ~o The assistance program will provide the employees with a lower cost payment plan than would otherwise be available. .The plan is proposed as an adjunct of the signature loan from the Bakersfield City Employees Credit Union and will work as follows: 1. The employee will request to be a participant in the assistance program by filling out a request form and turning it into the Data Processing division. 2. The Data Processing division will provide assistance, if required to the employee in selecting a particular piece of hardware and forward the request to the credit union. 3. The employee will go through the normal signature loan process and will be granted a signature loan not to exceed $3,000 with the employee providing 20% down to the credit union. The interest rate will be 10%. which is lower than the normal signature loan rate of 15%. 4. The employee will only be required to pay 5% of the 10% interest during the loan payment period with the City picking up the remaining 5%. 5. In the event that the employee leaves City employment, at the time of termination the employee will be liable for the entire 10% interest until the loan is satisfied. CITY OF BAKERSFIELD EHPLOYEE COHPUTER PURCHASE REQUEST REQUESTOR NANE: DEPARTNENT: DATE OF REQUEST: DESCRIPTION OF SYSTEM: REVIEWED BY DATA PROCESSING: DATE: PROCESSED BY BAKERSFIELD CITY EHPLOYEES CREDIT UNION' CITY COUNCIL REFERRAL MEETING OF: NOVEMBER 30, 1988 REFERRED TO: BUDGET AND FINANCE COMMITTEE - JOHN STINSON , ITEM: NEW BUSINESS 11. g. 'Renewal of Lease with East India California Trade Enterprises, Inc. MOTION TO REFER TO BUDGET AND FINANCE COMMITTEE. ACTION TAKEN BY COUNCIL: APPROVED WITH ALL AYES. RATTY AND MCDERMOTT ABSENT. BACKUP MATERIAL ATTACHED: YES DATE FORWARDED BY CITY CLERK: DECEMBER 2, 1988 STATUS: REFERRAL13 Tandoo ' India Restaurant 2014 "L" STREET BAKERSFIELD, CA 93301 City of Bakersfield 515 Truxtun Avenue Bakersfield, CA 93301 Attn: Economic Development Division RE: Renewal of Lease Dear Sir, I am writing this letter to you regarding the renewal of the lease between City of Bakersfield and East India California Trade Enterprise. I would like to renew the lease for three (3) years with an option of another three (3) years at the same terms. Secondly, I would like to change the clause from the present lease agreement regarding monthly rent which is $300.00 plus four percent of gross receipts or $900.00 whichever is higher, to a fixed rate of $500.00 a month. I hope the city will grant the above changes and renew my lease. If I can be of any further assistance regarding this matter, please do no hesitate to call me at 805-327-1788. Sincerely, Jitendra R. Patel, President INIS- 'T Meeting Date: November' 30, 1988 Agenda Section: New Business Agenda Item: ll.g. TO: Honorable Mayor and ____ .Members of the City Council Approved /~.~-~ ~\/ /~/~' FROM: Economic/RedeVelopment ~' . Department Ho~/~~~ ~}~ DATE: November 16, 19 ' City M nager SUBJECT:. Renewal of Lease. with East India California Trade Enterprises, Inc. RECOMMENDATION: Motion to refer to Budget and Finance Committee.. Group Vote. BACKGROUND~:- In'November of 1985, East India Californial Trade· Enterpri~es,.Inc. executed a lease with. the City of Bakersfield. for the propgrty located at 2014 "L" Street, operated as Tandoor India Restaurant.? The'origi~nal agreement was altered in October of 1986 with a change in the rental.amount to one which included a flat fee plus a percentage of the. gross receipts The tenant has submitted the attached written request to extend the lease between the City and East India California Trade Enterprises, Inc., for three (3) years with an option of another three (3) years. This request from the tenant asks that all terms of a new lease remain the same except for the monthly rent. Currently, the restaurant pays- $300.00 monthly plus four percent of gross receipts, or $900.00, whichever' is less. The tenant is proposing a-$500.00 fixed monthly rental payment. cr C:REPORTll0 Tandoor India Restaurant 2014 "L" SIR E ET ~I.~:~..~~ BAKERSFIELD, CA 93301 NOVEMBER 1 , 198 8' LCCr~[~,t~u O[~/,'p,[UL~uk~ City of Bakersfield 515 Truxtun Avenue Bakersfield, CA 93301' Attn:. Economic' Development Division RE: Renewal of Lease. Dear Sir', I am' writing this letter to you. regarding' the renewal of the lease between City of Bakersfield and East India California Trade Enterprise. I would like to renew the lease for three (3) years with an option of another three (3)years at the same t~rms. Secondly, I would like to change the clause.from the present lease agreement regarding monthly rent which is $300.00 plus four percent of gross receipts or $900.00 whichever is higher, to a fixed rate of $500;00 a month. I hope the city will grant the above changes and renew my lease, if I can be of any further assistance regarding this matter, please do no hesitate to call me at 805-327-1788. Sincerely, Jitendra R. Patel, President JAKE WAGER, ECONOMIC DEVELOPMENT DIRECTOR FROM: DAVID LYMAN~ASSOCIATE PLANNER SUBJECT: MENTAL HEALTH ASSOCIATION I met with the association's new executiVe director, Mr. James Walker, on December 7 to introduce myself and the concerns the City has regarding their tenancy. Mr. Walker has been in this position only a few weeks but impressed me with what he has done so far to meet the agency's contractural obligations. First, Mr. Walker advised me that the Board of Supervisors would be approving a contract on December 13 to fund the association effective January 1, 1989, thus providing a steady income in which to pay monthly rent of $600.00 to the City. Second, Mr. Walker has already finalized a budget for the asso- ciation (attached). Third, in response to a question Mr. Bill Descary raised in his November 30 memo about insurance, Mr. Walker agreed to my request that proof of insurance be provided to me no later than 5 p.m. on December 9. Mr. Walker has a long history in mental health program admini- stration. He was appointed by Governor Edmund G. Brown; Sr., to the .State Hospital Advisory Board and has also served with the State Department of Mental Health. I have provided a copy of the lease to Mr. Walker for his files so he can examine all provisions, assuring compliance with the agreement. As of this date, proof of insurance has not been provided. I received a phone call from Mr. James Sporer of Walter Mortensen Associates I°nsurance informing me that a minimum of ten (10) days would be necessary to provide insurance. Also, the Board of Supervisors did not address the contract with the Association at its December 13 meeting. It is anticipated to be on their next agenda, January 3. Because of the exposure to the City at present, I recommend provid- ing written notice to the Mental Health Association stating that they have failed to comply with their contract and asking for vaca- tion of the site within thirty (30) days. Upon proof of insurance, approval of the contract by the Board of Supervisors, and payment of $600 for January rent, all submitted to us within that 30 day period, the issue would be cured and the Association could remain. At that point, any renegotiation of the lease to include provisions as may be requested by Mr. Descary could begin. I can see no possible way for the association to repay the amount of rent past due. Based upon their budget, the City should consider that sum, approximately $12,000, to be.written off. cr L:M.DL109 MEMORANDUM December 23, 1988 TO: J. DALE HAWLEY, CITY MANAGER FROM: LAUREN CASSELMAN, INTERNAL AUDITO~'~ [~(~[~0~[~[~~C2~ SUBJECT: TANDOOR RESTAURANT CITY MANAGER'S OFFICE Attached is a copy of the audit I performed on the Tandoor Restaurant in January of 1988. My audit was for the period October 1986 to December 1987 and consisted of verifying gross receipts. Because of the difficulty I had in obtaining information to complete the audit, I attempted to explain to Mr. Patel, the owner of the Tandoor, how to accumulate information to facilitate reporting and auditing require- ments. I could not be certain as to if he understood what I was saying. I have the gross receipts number for the months in 1987 that our Finance department did not have. As to the calender year 1988, I will schedule an audit in January 1989 to obtain the gross receipts for this period. LC.srp Attachments MEMORANDUM . February 26, 1988 TO: J. DALE HAWLEY, INTERIM CITY MANAGER FROM: LAUREN CASSELMAN, INTERNAL AUDITO~ SUBJECT: AUDIT OF TANDOOR RESTAURANT I have completed the audit of gross receipts of the Tandoor Restaurant for the period October 1, 1986 to December 31, 1987. The City leased a building and lot to the Tandoor through Agreement No. 85-138. The original lease was for 2 years, with rents at $900.00 a month. In October, 1986, the contract was amended, under the Tandoor owners' request. Monthly rent due to the City dropped to $300.00 a month, plus 4% of the Prior month's gross receipts. 'The City has had trouble collecting the 4% of gross receipts~ as well as obtaining a correct calculation of the gross receipts. The Agreement allows the City to audit the Tandoor to determine compliance. The owner of the Tandoor had difficulty gathering documents necessary to complete the audit. I was able to check some of the sales tax returns for reported gross receipts. The returns available did agree to the amounts reported to the City. Cash register receipts were available; these showed a summary of the month. The tapes detailed sales by taxable/non-taxable and then reconciled these amounts to sales by cash, check, and credit card. The two amounts (which should have been equal) were off between $50.00 to $200.00 every month. There was no daily sales sheet. All meal.checks were lumped into one box, not in numerical order. This made it nearly impossible to compare these will daily register receipts. Findings and Recommendations 1. Gross receipts are not defined in the agreement..The Tandoor excluded sales tax from their gross receipts number. This appears reasonable, as City policy for determining gross receiPts for business licenses excludes any taxes paid. 2. The account history for the ~andoor (Account 'No.' FA 00135) through the period December 31, 1987, was not aCcurate. The ending balance indicates the Tandoor has overpaid their account by $913.14. This history reflects all payments made to the City, which includes the percentage rent. The billing side of the history is only for the regular monthly rent. J. Dale Hawley February 26, 1988 Page -2- Finance should input a "memo" billing for $1,197.93 to represent percentage'rents paid by the Tandoor. This would then make the account history cormect. Actual balance for the Tandoor as of December 31, 1987 should show a balance due of $284.79. 3. 'Two account numbers should be used; one for regular monthly rent and one for percentage rent. This would avoid the problem in finding #2. 4. Any new agreements should define what should and should not be included in gross receipts. 5. The City should consider.amending the agreement to abolish the percentage rent, and increase the minimum monthly rent by the average monthly percentage rent paid to date. Based on information available to me, it appears that the numbers reported to the City are a reflection of the Tandoor's receipts. LC.alb BUDGET AND FINANCE COMMITTEE UPDATE GANNON REQUEST FOR CHANGE IN DEED RESTRICTION Submit request to County to re~)ve deed restriction pending amendment to [ease. I~ave met with Tim C, annon and have received his comments Nith regard to the tease, t4iL[ reNork the [ease to address 6annon~s concerns and return to Co~aittee. PARK ORDINANCE '~"~' Need to refine figures and prepare response. Check w/ Jack to see if Park Planner is working on this. WARNER CABLE Committee requested that Ed & Art Saafietd look into mitigation or removal of boxes. [n addition the issue of underground trenches has been added. Cable companiesmet Nith the B.I.A., need further direction from committee. City Attorney has drafted an ordinance for the removal of boxes. Ed Schu[z is Norking on possible change in the easement for Cable T.V. and forming a task force to revieN this issue Nas recommended by~arner CabLe. ASSESSMENT DISTRICT TASK FORCE - SURVEY (MSI) Request froa Task Force for direction from city council re. pessib[e survey for implementation of city-Nide assessment districts for maintenance services. Report to Council 2/17/88. Committee has revieNed latest draft prepared by Df.Mann and Dr. 6useman from CSUB. ~i[[ return Nith final draft questionnaire to revieN Nith Coa~aittee. STREET LIGHTING REVIEW 04/13/88 This is the review of the possible purchase of street lights from PG&E. Consultant Nil[ come to revieN proposal Nith committee. SMOKING ORDINANCE This item'Nas requested for further review by the Committee. Mary Strenn Nil[ be making a presentation to the Co~ra~ittee after she has met Nith unions to discuss proposed rules. * BINGO ORDINANCE 10/26/88 relates to the propesedBingo Ordinance. Dale has distributed Letters from Chief Patterson This to Committee. To be reviewed on December 5. NEDA CONTRACT 11/09/88 This item was referred to the Conraittee at the request of Councilmen ChiLds. ~as discussed at the November 23rd meeting. Coanittee recommended that item be referred to staff. Dale NouLd like to revieN survey Nith staff.  ENTERPRISE ZONE 11/09/88 FEDERAL This item Nas referred to the Con~ittee at the request of Councilmen ChiLds. ~as discussed at the November 23rd meeting. Councitaember childs asked several the questions re, designation. Staff NiL[ respond and item Nil[ be brought back to conmittee. November 28, 1988 * To be put on agenda for December 5th Committee meeting. * ~ENTAL PLAN 11/16/88 As a result of Report No. 45-88 re. the Health Benefit Plan, Counci[meaber Childs has requested that the Committee review the Dental provider, t~ill be discussing this on December 5. November 28, 1988 * To be put on agenda for December 5th Committee meeting. ............ ~~__ ~ ......................... BUDGET AND FINANCE COMMITTEE REPORT NO. 45-88 November 16, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: HEALTH BENEFIT PLAN The Budget and Finance Committee met on November 14, 1988, to finalize the review of the City's health and dental benefit plan. This review began when rate increases for the indemnity (fee for service) plan caused the City to do a thorough examination of the health benefits in preparation for remarketing the plan. The benefit consultant firm of Armtec, Inc. did not receive any quotes from insurance carriers in response to a formal Request for Proposals due to the trend of our employees choosing the Health Maintenance Organization (HMO) plan and due to the large number of retirees participating in the indemnity plan. This identical trend has resulted in other agencies being left without an indemnity plan. As described to the Council in the workshop of October 12, 1988, the decision was made to restructure health benefits so that the indemnity plan could be saved. This was particularly important to retirees and to employees with specialized health needs. These changes involved removing the retirees from the active employee experience pool and equalizing payroll deduction rates for the HMO and indemnity plans. A shift of City funds between the two groups, as described in the attached resolution, is required to make sure that the retirees are not penalized in rates beyond BUDGET ANDFINANCE COMMITTEE REPORT NO. 45-88 November 16, 1988 Page -2- norma! increases experienced by all. A Preferred Provider provision is added to the plan along with other minor revisions to make health benefits more cost effective. In addition, a proposal is being considered to alter the benefit negotiation process with the bargaining units so that all units, through representatives, will jointly review health benefits on an annual basis in an effort to bring cohesion to an increasingly complex field. Although the form of the plan will be agreed to by the union representatives outside of the individual union negotiation process, the City's financial contribution will still be part of salary negotiations. These proposed changes have been reviewed with this Committee and the City Council during the workshop. In addition, the Employee Insurance Committee, the bargaining units and employees at large have had a series of meetings. The bargaining units have verbally agreed to the proposed changes but will have to adopt amendments to Memorandums of Understanding, in addition to action taken by the Council. The Committee expressed great concern about the claims processing service of the Foundation for Medical Care of Kern County which contracts with Blue Cross Insurance Company. The Committee requested that staff work with the Foundation to improve this service. The Committee also would like the dental prepaid plan to be open to a future change in carriers. Therefore, the Budget and Finance Committee requests Council approval of this report and the attached resolution. The Committee also requests Council approval of the following revision in the health and BUDGET AND FINANCE COMMITTEE REPORT NO. 45-88 November 16, 1988 Page -3- dental benefits for employees and retirees of the City of Bakersfield contingent upon approval of these amendments to the bargaining units' Memorandums of Understanding: 1. The City's indemnity plan will include a Preferred Provider provision for hospital care. 2. There will be a common charge for each employee class, i.e., single employee, employee with one dependent, and employee with family, irrespective of the health and dental plan selected. 3. Although the indemnity plan will be rated separately for active and retired employees, the City will prevent the retiree from experiencing an increase that results from such separate rating. 4. Future health and dental benefits will be jointly bargained by representatives of each unit that serve as a single committee. Such benefits shall be decided at any time but resolved by October 31 of each year. 5. The City's financial contribution toward employee health and dental benefits shall be considered at meet and confer sessions concerning benefit packages for represented employees and the City shall continue any salary negotiation. Respectfully submitted, Councilmember Donald K. Ratty, Chair Councilmember James Henry Childs Councilmember Kevin McDermott Rpt.118, 118A, 118B:jp RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD REGARDING CITY CONTRIBUTIONS TO PREMIUMS FOR RETIREES "FEE FOR SERVICE" · HEALTH PLAN. WHEREAS, the City of Bakersfield wishes to accurately calculate retiree claims costs; and WHEREAS, said calculation will, through separate experience rating, result in increased retiree premiums on the "Fee for Service" Health Plan; and WHEREAS, the active employee groups expressed their concerns that adjusted higher rates for the "Fee for Service" Health Plan should be shared by the City. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as follows: 1. Forty-two percent (42%) of the actual premium for the "Fee for Service" Retiree Health Plan shall be paid by the City of Bakersfield; and 2. The balance of the above premium shall be calculated uursuant to the formula attached on Exhibit "A." 3. Retired employees covered under the HMO Insurance (Health Net Plan) shall only receive City contributions under the formula described in Exhibit "A." .o0o i HEREBY CERTIFY that the £oregoing Resolutio~ was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED MAYOR of the City of Bakersfield APPROVED as to form: CITY ATTORNEY of the City of Bakersfield LC/lg R RES 4 RETIREE.1 Attachment - Exhibit "A" 11/15/88 - 2 - EXHIBIT "A" CURRENT FORMULA FOR CITY CONTRIBUTION RETIRED EMPAOYEES GROUP Effective May 1, 1985, retired employees covered under the City's health plan shall receive City contributions based on the following formula: the City shall contribute two percent (2%) of the monthly premium for Health Net (under age 65 rate) times each year of service (to the nearest half year) for single- party coverage, and one and one-half percent (1-1/2%) of monthly premium for two-party coverage for.Health Net (under age 65 rate) times each year of service (to the nearest half year) for retired employees with two-party and family coverage. LTC/lg R RES 5 RETIREE.3 - 3 - MEMORANDUM November 15, 1988 Please find attached Budget and Finance Committee Report No. 45-88 regarding the Health Benefit Plan. The Budget and Finance Committee met again on November 14, 1988, and the report was not available for the packet distribution. MS:jp Attachment CITY COUNCIL REFERRAL MEETING OF: NOVEMBER 9, 1988 REFERRED TO: BUDGET AND FINANCE - JOHN STINSON ITEM: NEW BUSINESS 10. g. A Resolution of the Council of the City of Bakersfield approving an application to the U. S. Department of Housing and Urban Development for designation of a portion of Metropolitan Bakersfield as a Federal Enterprise Zone. COUNCILMEMBER CHILDS MOTION TO ADOPT RESOLUTION AND TO REFER TO BUDGET AND FINANCE FOR ADDITIONAL STUDY. ACTION TAKEN BY COUNCIL: APPROVED WITH ALL AYES. BACKUP MATERIAL ATTACHED: YES DATE FORWARDED BY CITY CLERK: NOVEMBER 17, 1988 STATUS: REFERRAL5 ~iE' CITY COUNCIL REFERRAL REFERRED TO: STAFF-- M~ ITEM: COUNCIL STATEMENTS 11. 9. COUNCILMEMBER CHILDS REFERRED TO STAFF TO RESEARCH FEDERAL. ENTERPRISE ZONE REGULATIONS AND REPORT WHY MIDSTATE DEVELOPMENT WAS NOT LOCATED IN THAT ENTERPRISE ZONE. ACTION TAKEN BY COUNCIL: BACKUP MATERIAL ATTACHED: NO DATE FORWARDED BY CITY CLERK: NOVEMBER 17, 1988 STATUS: REFERRAL12 RESOLUTION NO: 219-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD APPROVING AN APPLICATION TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR DESIGNATION OF A PORTION OF METROPOLITAN BAKERSFIELD AS A FEDERAL ENTERPRISE ZONE WHEREAS, the County of Kern and the City of Bakersfield have jointly cooperated together in the preparation of an applica- tion to the United States Department of Housing and Urban Development (HUD) for designation of a portion of Metropolitan Bakersfield as a Federal Enterprise Zone; and WHEREAS, said application includes therein a proposed course of action between the County of Kern and the City of Bakersfield which provides for the cooperative implementation of the Federal Enterprise Zone program once HUD has designated the Program Area; and WHEREAS, said application provides the means for implemen- tation of technical activities and negotiations which may be neces- sary with HUD in order to confirm the designation; WHEREAS, City, County, and the State of California must enter into a joint Memorandum of Understanding agreeing to carry out the course'of action outlined in said application. NOW THEREFORE, the City Council of the City of Bakersfield hereby approves the filing of the attached application for designa- tion of a portion of Metropolitan Bakersfield as a Federal Enterprise Zone and a Memorandum of Understanding between City, County and State. Upon adoption of a similar resolution by the County, this body directs that the City Manager, acting as agent for the City of Bakersfield, jointly with the county of Kern, file said application with HUD on or before November 18 , 1988, and author- izes the Mayor to execute the Memorandum of Understanding. I HEREBY CERTIFY that the foregoing Resolution was pasSed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on 9th day of November , 1988, by the following roll call vote: NOES: COUNCILMEMgERS: None ABSENT: COUNCILMEMBERS: None ABSTAINING: COUNCiLMEMBERS: None CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED November 9, 1988 MAYOR of the City of Bakersfield R: RESO10 Kern Cou_nly ....-~"~ Ag! #_.5~ ~ ~';%~ ~O~'~HA[~ ~O. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF BAKERSFIELD/COUNTY OF KERN 8 8- 2 ? 6 AND THE CALIFORNIA DEPARTMENT OF COMMERCE The City of Bakersfield and the County of Kern have nominated the area contained in the attached application for designation as a Federal Enterprise Zone under Title VII of the Housing and Community Development Act of 1987. The California Department of Commerce joins in this nomination as required by the Housing and Urban Development (HUD) final rule published in Volume 53, Number 158 of the Federal ReGister on August 16, 1988. The City of Bakersfield/County of Kern and the California Department of Commerce agree to the following specific provisions of the course of action during the period of designation identified in this application. The State of California will provide the following elements: 1. Provide 'tax reduction incentives to businesses located in California's designated enterprise zones and employment incentive areas as called for in California law. 2. Provide technical assistance, job training, financial assistance and marketing 'assistance through the usual State of California activities and programs. 3. Give special contract preference to minority owned businesses as called for in California law. The City of Bakersfield and the County of Kern will provide (but not be limited to) one or more of the following elements and will identify each element in the course of action. 1. A reduction of tax rates, fees or user charges applied within the enterprise zone. 2. An increase in the level or efficiency of public services within the enterprise zone. 3. Actions to reduce, remove, simplify or streamline paperwork requirements within the enterprise zone. 4. The gift (or sale at below fair market value) of surplus land in the enterprise zone to neighborhood organizations agreeing to operate a business on the land. The City of Bakersfield and the County of K6rn will assume all responsibility for reporting, monitoring, auditing and evaluating the Federal program. Boundary identification and maintenance outside of the State designated enterprise zone and employment incentive areas will also be the responsibility of the local jurisdiction. In witness whereof, the parties agree to have executed this memorandum on the day, month, and year indicated. California Department of Commerce Kenneth L. Gibson, Director California Department of Commerce Date: Chairman, Board of Supervisors NOV8 1988 Date: RECOMMENDED AND APPROVED Community Development Program Department APPROVED AS TO FORM County Counsel City of Bakersfield Mayor of the City of Bakersfield NOV 9 "1988 Date: RECOMMENDED AND APPROVED RECOMMENDED ANI) APPROVED Economic Development Direc,tor APPROVED AS TO FORM ,/ /,,," .... -/ Nomination for u.s. Department of Houalng and Urban Development F e d e r a i E n t e r p r i ~ e Z o n e o,~ of Community Planning and Development D e s i g n a t i o n ou~. Approval No. 250(;-0099 (exp. 4/30/99) Partl: State and Local Government lndentlflcatlon and Certification A. Nominating Local Government(a) []Check (V) Ihe box if the nominator il me governing body of an Indian Reservation. Name of Judsdic~on I Metropolitan Stat~s~..aJ Area Name (if in an MSA) County of Kern t Bakersfield Chief Elected OfficiaJ Roy Ashburn, Chairman of the Board of Supervisors Contac~ Person I Telephone Number William d. HungarY, Director of Community Development I (805) 861-2041 Street / PO Box City 2700 M Street, Suite 230 Bakersfield County State 1 Z~p Coda Kern Cal i forni a I 93301 (If joint nomination by more than one local government complete this section.) Name of Jurisdic~on City of Bakersfield Chief Elected OfficfiaJ Tom Payne, Hayor of the City of Bakersfield Contact Person I Telephone Number Paul Shillcock, 'Pr~ne~oal Planner I (805) 326-3765 St~t / 1~3 Box City 1501 Truxtun Avenue Bakersfield County State 23p Coda Kern Cal i fornia 93301 B. Nominating State Government (Not Applicable for Indian Tribes) Name of State Govemm' California George Deukmejian Contact Perso~ I Telephone Number Paul Hiller, State D~partment, of Commerce and Enterprise I (916) 324-8211 Street PO Box City 1121 L Street., Suite 600 Sacrament,o State I Zip Code California t 95814 C. Date Nomination Submitted 1 D. Federal Dealgnation for the Nominated Area la Requested I to Remain In Effect Until (specify date): November 18, 1988 December 31, 2012 E. Rural Set-Aalde Claim a. Nominated jurisdiction has a total 1986 [] yes [] no population of less than 50,000; and is located outside of a current Mel~opolitan StatistioaJ Area (MSA) b. Nominated jurisdiction has submitted a justification to demonstrate that it ~1 yes [] no qualifies for the rural set aside F. Certificatlona Certlflcatlona Relating to State and Local Governmanta: 1. Each unit of IocaJ government meets each of the eligibility criteria set I hereby certify that the nominated area meets ail State, IocaJ, and FecieraJ forlh in Section 596.101 of the program regulations; eligibility requirements and, that to lhe best of my knowledge and belief: 2. The geographic area meets the popula'don and boundary test pursuant (a) the information in Iflis nomination is t~ue and correct; to Section 596.101(a); (b) the nominating governments have the authority to submit this nomination 3. The geographic area is eno of poverty, unemployment, and general and to carry ou! the proposed Course of Action; distress and that lye conditions are pervasive throughout the area (c) the nominating governments shall comply with all State, local, and Federal pursuant to Section 596.101(c); program requirements, and have agreed in writing to carry out the 4. The geographic area meets the tests of unemployment, poverty, etc., proposed Course of Action if the nomination is approved; and pursuant to Section 596,101(d); (d) it is certified that: page 1 of 18 pages form HUD-40003 (8/88) 5 The geographic ares con:~-~ns no pot*don of an ,~:~a which is either Cartlflcatlone Relating to Indian designated as a Fec;eral enterprise zone under ~is Part ~ is otherwise I hereby certifY that ~e nomina;;e._-' ~:ea me.ts all F~,deraJ re~Jirem~,nt,: for inctuded in any other area nominated tot designation as an enterpnse eligibility and that to the best of my ~owledge and bet~ef: zone under this Part; and (al the information in this nomination is true'and correct; 6 Each has the authority, with respect to the nominated area, to: (bi the governing body of the Indian Reservation has the authority to submit (ii nominate such area fo~ designation as an enterprise zone area; this nomination, and to cam/out the proposed Course of Action; (ii) make the State and local commitments under Sec. 596.200(b)(4); (c) the [;.,~verning boW of the Indian Reservation hereby assures HUD that it and will carry out the proposed Course of Action dudng the entire period of (iii) provide assurances that such commitments will be fulfiled, designation as an Enterprise Zone; and (d) the area being nominated contains no portion of an area which is included either in a previously designated Federal Enterprise Zone or as part of another area nominated for designation as an Enterprise. Zone. Authorized Nominating Local Government or Tribal Official(a) Name & Title (~,pe o~ prin~) ~"~aature~lt~re & ~'~ County of Kern, Board of Supervisors Chairman, Roy Ashburn City of Bakersfield, City Council Mayor, Tom Payne X Authorized Nominating State Official (Not Applicable for Indian Tribes ) Name & Title {type o~ print) Signature & Date °l × ~art Il: Eligibility In[orm~tlon A. Name(e) and Population(a) of Local Government(a) Submitting thio Requeet Name 1986 Populabon 4. County of Kern t 486,750 2. City of Bakersfield I 148,227 B. Attachmenta 1. Is a copy of a plat map for the nominated area showing parcels of land that are included within the nominated area attached? ~ yes [] no 2. Is a copy of a 1980 census map attached showing: a. The boundaries of the local government(s) listed in Secbon A above; [] yes [] no b. The boundaries of the nominated area; c. The exact location of any other areas previously designated or currently nominated as Federal Enterprise Zones under this Part? 3. Is a copy of a1970 census map showing the boundaries of the nominated ~]yes []no zone attached? C. Location of the Nominated Enterprlee Zone Area 1. Is tt'ie nominated area located wholly within the jurisdic§on of the legal' [] yes [] no government(s) listed in Section A above? 2. Is the boundary of the nominated area conlJnuous and dearly defined on [] yes [] no the attached maps? 3. Is the nominated area located entirely within the an Indian Reservation? [~ yes ~--~no ( If 'no'and the aplication is from an Indian Reservation, the nomination cannot be accepted for processing.) Name the Reservation: 4. a. Is the nominated area located wholly within lhe jurisdiction of a city(les) [] no or Urban County(les) or Indian Reservalion, which is currently [] yes determined by HUD to be eligible for the UDAG program, or contains an area determined by HUD to be a UDAG 'pocket of poverty'? (If 'no', nomination cannot be accepted for processing). b. Is the area within a Metropolitan StafisticaJ Area (MSA)? r-x] yes [~ no ~s the area entirely outside a Me~opolitan StafisticaJ Area (MSA)? ~ ~ yesr~ no c. Is the area within a jurisdic~on classified as urban by the Bureau of the [] yes [] no Census? page 2 of 18 pages form HUD-40003 MEMORANDUM DECEMBER 1, 1988 TO: JAKE WAGER, ECONOMIC DEVELOPMENT ~ECTOR FROM: PAUL SHILLCOCK, PRINCIPAL PLANNER~ SUBJECT: FEDERAL ENTERPRISE ZONE DESIGNATION At the City Council's Budget and Finance Committee meeting of November 23, 1988, a report was made regarding the submission of an application to the Federal Government for Enterprise Zone designation. This report,, provided as an information item, raised some questions regard- ing this program. The major question concerned the selected boundaries and the possibil-~ ity of adjusting them to exclude the downtown. Given the deadline for submission and the need t© adjust and resubmit the entire application to both the City Council and the Board of Supervisors for their con- sideration and approval, this is an impossibility. The Board of Supervisors will be "dark" from December 13th until January 3, 1989. The deadline for the Board of Supervisors' Agenda precludes any action on a boundary adjustment. There is also a reluctance on the part of County stDff to recommend any adjustment since it would decrease our competitive position for designation. Since this application is a joint City/County submission, it is necessary to have an agreement on all aspects of the application and this appears impossible if any attempt is made to· adjust boundaries. A second question concerned the criteria for designation. I have attached a portion of a document subtitled "Supplementary Information" which outlines the basis for designation and also attached a diagram provided by HUD which explains the selection procedure using a hypo- thetical city (Hypo City). It was also requested that a copy of the regulations be provided. . They are attached. I have provided this information for you to forward to the members of the Committee at their next scheduled meeting. krs S:M.PS72 SUPP~ INFOBMATI~: General The Secretary i$ authorized to designate ~t n'ore than 100 enterprise zones based entirely on rank order of distress. As specified in the final rule, enterprise zone designations ~st be requested on the nomination forms (E3D Form 4003; (~B Approval Nm~ber 2506-0099) prescribed by HUD. The nomination forms may be obtained ~rom any E3D Begional Office or Class A Field Office. (A listing of all ~ ~ional and 'Class A. Field Offioes is attached.) Urban Deve ..1..o~. nt Action ~rant Elig.ibility The final rule requires that each nominated jurisdiction must have current UDAG eligibility based on distress, and demonstrated results In providing low- and moderate-~ housing, and equal 6~ortuntty in housing an~ employment as provid~ ~or in 24 ~ 570.452-570-453. 'it~e li~t:s of juri~:]ictions which currently meet the UDAG minimum distress tests w~re poblished in the FEDERAL ..Urban/Rural .De.signation Under the f~nal rule, jurlsdictlon$ will be c~nsidered rural if they are outside a metropolitan statistical area (MSA) and have a population of less than 50,000. For the l~/rpose of ~hese te~ts, MSAs are those designated by the Office of Management and Budget as of June 30, 1988~' %hese MSAs are listed in the publication, Metropolitan Statistical Areas, 1988. (Ail UDAS-eligible places Outgide of MSAs are rural, since they all have a current population o~ less than BO ~000. ) ~ge Secretary will also consider places that are located in MSAs to be rural if they are determined to L~ rural by the Bureau of C~nsus. l~ral place.o f-or each State are identified in the 1980 Bureau of Census publication titled: "N~ber of Inhabitants." Cne of the most important parts of the nomination process is the provisic~ of data to document eligibility. The same data will be used to develop the~. rank order of the nominations which will be the basis for designation by the Secretary. Because of the critic, al nature of the data for both eligibility and designation, ~ has w~rked extensively with the Bureau of tabor statistics and the Census Bureau to identify data sources. In order to minimize guestions regarding the data at the time of submission, any prospective nominee should immediately contact the HUD Field Office. Applicants must submit estimates for. all four of the selection criteria (even though some of the criteria may not be proposed as a basis for eligibility). ~ne procedures and data sources for developing the estimates are described in the n~mtnation form. Unless otherwise specified, the data are normally available through HUD Field Offices. The following summarizes the source and data of the data required for each test: (a) Pc~lati~: %~ne pc~ulation of the ~nallest gr<~p of ~nsus-defined areas which include the zone must be at least~'4,000 for an urban zone and 1,00O for a rural zone. ~ne source of this population test shall be the i00% count for the 1980 census. If the ncminated zone follows the census tract, block group or enumeration district boundaries, the applicant may use the 100% population count 1980 census area for this test needs to be at a block level, the population data may be found in 1980 Block Statistics microfiche available fr~m State census data ~ent~rs and major public libraries. (b) Unemp~nt.. The unemployment test will be based on 1987 unemployment estimates. ~e ncminated zone must have a ]_987 unemployment rate estimated~to be at least 9.3 percent. ~ais threshold is 1.5 times the national 1987 rate of 6.2 percent. Data that may be used in estimating 1987 unemployment are avant,hie in "Poverty, ~ an~ Unemployment Data" and the BLS tabulations titled "Local Area Unemployment Stati~tics - Annual Average for 1987" and "1980 E~ployment and Unemp~t I)ata" by Stabe. (c) _Poverty: The poverty test will be based o~ data from .the 1980 census. %"ne 1980 poverty data for each census tract is available in the report "Poverty ~ and Unemployment Data". If the area is untracted, the poverty data for the minor civil division or census county division will be available through the BUD Field Office from the 1980 census ~abulation titled "Proverty Tracts an~ MCDS" and "Proverty CCDS". (d) Low Income, Tnt low into test ~hal! be ~as~d on data from the 1980 census. Tnt 1980 inc~m~ data are available in the report "Poverty, Income, and Unel~loj/~I~nt l~ta". (e) Pol:ulati_on LOS~: 'I'ne population loss test shall be based on a co~pari~ of population count from the 1970 and 1980 census. Popu. lation counts from the 1980 census tracts, block groups and 'enumeration districts are in the report ~Poverty, Income and Unemployment Data". If the census block level data are required, the population counts may be obtained from the Bureau of Census publications titled, "Block Statistics". "Block Statistics" is available from any State census data center or major public library. The block data are in printed reports [Series HC(3)] for the 1970 cnesus and on microfiche for the 1980 Data Problems: If the applicant cannot locate the appropriate data or believe the data to be in error, it should document what it believes to be the best estimate and its rationale for developing the estimate_, . The Bureau of Census and Bureau of Labor Statistics will review these rationales and on the best data to be used. . _ Further Data.._Cog~t.s: For general questions on the procedures or data to be used, contact the f~D Field Office. The appropriate State ]~mploym~nt Security Agency .~ay be of further assistan~e in developing the unemployment estimate. If there are problems with locating census data, especially the 1970 population data, contact appropriate state census data centers, or state universities. For further guidance and referrals (~n data ~oblems contact John Nugoskt or Blume, Data Systems and Statistics Division (202) 755-7390. (This is not a toll- free number.) DATEr Jack R. Stokvis, Assistant Secretary for C~mmunity Planning and Development Determining Rank of Distress UnemploymentRate PovertYRate ,ncomeLeve, 0'Pop. IstlOnLoss ' Hypo City's ranking for each criteria is relative to all other nominations received, 3.OX-- , 40%-- --90%-- --25%-- · Hypo City's 75 individual 32 18 rankings are Threshold -~.sx · -- 2o~- --?o~-- 2o~-- averaged 0 125 +4 Criteria =31.25 National Poverly Of h~uaeholda Population unemploymenl tale In below 80e/e decrelal I'ltl nominated of the median between area of the local 1970 & 1980 ! 70 g ..... m,nl · With 100 2 69.5 Hypo City 3 65.2 Rankings ?s 32 18 0 nominations 4 ranked according = ~, 50 to their average ,o · Assume 100 nominations were received rankings : (& all Courses of Action were determined " to be adequate) * Hypo City rates about 60th on the scale from highest average ranking to lowest · The bar chart above shows the range represented by the 100 nominations · Therefore--if 100 zones are designated with Hypo City's ratings for each criteria (of which 67 can be urban) marked in red Hypo City wins designation BULLE 'L'os Angeles. Office - Region IX ~ "1'615' West Olympic Boulevard ' ISSUE'NO. C) Los Angeles, California 90015 ~ DATE: Sep. I MEMORANDUM FOR: .UDAG Contact Personnel ~ ~( x~ FROM: ~Orbert L. Roberts, Director, (~Fnmuni~.y~PlanniF)~) and ~Development Division, 9.4C ~~~..~- SUBJECT: Federal Enterprise Zone Program On August 16, 1988, the Department published in the Federal Register the regulations for implementing the Federal Enterprise Zone Program. A copy of the regulations, which' will become effective October 7, 1988, is attached. Title VII of the Housing and Community. Development Act of 1987 auShorized the Secretary of the Department of Housing and Urban Development to designate 100 zones based entirely on rank order of distress. The purpose of the Enterprise Zone Program is to encourage businesses to invest in distressed areas, thereby creating jobs and assisting in the economic revitalization of these areas. It is expected that nomination forms, to be completed by interested jurisdictions, will have to be submitted in early to mid-October. Nomination forms are expected to be available by September 12, 1988, and will be forwarded to interested communities. If your community is interested in receiving a set of nomination forms please call or write this'office. In order for an area to be considered for Federal Enterprise Zone designation, the zone must be located within an eligible UDAG jurisdiction. This means that, in addition to meeting the UDAGminimal distress criteria, the jurisdiction must have requested and been certified by HUD to participate in the UDAG program. The certification process, which consists of demonstrating performance in providing housing for low and moderate income persons and providing equal opportunity in housing and employment, is an annual requirement. If your con~nunity is interested in seeking enterprise zone designation it must currently be certified or complete the certification process prior to submitting nomination forms. Since it takes a few weeks to review requests for certification, it is imperative that applications for UDAG certification or recertification be submitted immediately. The following communities have current UDAG eligibility for the purpose of submitting Federal Enterprise Zone nominations. Alhambra La Puente Pasadena Baldwin Park Lawndale Pico Rivera Bell Gardens Long Beach Pomona Calexico Los Angeles Riverside Compton Los Angeles County San Bernardino Indio Lynwood San Diego Huntington Park National City Santa Ana Inglewood Norwalk San Diego Irwindale Paramount South Gate For more information about designating an area a Federal Enterprise Zone or about the UDAG certification process please call Larry Hoak or Glen Reichert at (213) 251-7248 or Jana Bickel or Aaron Lambert at (213) 251-7239. Attachment SEP 0 6 1988 C.D.P.I~. DEPARTMENT OF HOUSING AND Indds~m~mLeStslafive Mesm,~q._ ............ .~.~iequacy. The statute is clear that URBAN DEVELOPMENT .'- Pm~i~t ~.~n stated' *'Momtlma :--*:: m · ~ · ...... eating not less than four of the core · ' half of* t~e states have set up . ~djj~P'eq~a :-: elements constitutes an adequate Office of tho Ansletant Secretary for enterprise zones, even without~qj~mrB! ~'- ' 'Course of Action. Therefore, we see no Community Plannin9 and incentives. These zones have ~mted :...': ~- ~msis for expansion of this provision Development . new jobs and spurred blllione.~e~ dollmm Jlhrongh rulemaking. 24 CFR Part 596 ~ c..apital 'mv.e, stment. Th.e~? '~ .nso~.... ,~ ./."~' Several commenters suggested that [esumony to me power si tms ~-,.. ~he measurement criteri,~ I~. ,~ ...... .~. [Docket No. R'~8-13~2; FR-1913] and is just a small indication ~.~ .-** '~mt~ be modified so that the average of much could be accomplished ~ ~. m~ns tracts of the nominated area £nterprl~e Zone Development incentives were added to tho~m.o~StMmm' .' most the poverty criteria. The language A6~*#CV:. Office of the Assistant and localities. Addin8 Federal ~.. ~*. .... OF the statute is clear, however, that the Secretary for Community Plannin~ and ~ncentives would make existing.. · **..nsquirement applies to ..... the poverty Development, HUD. tar more economically ath'actf~ ~ -'~ - ACTIOn: Final rule, successful and would also en~mura~l~ ! ~mte for e~c~ populous census tract * * , - mr equivalent county division", SUMMARY. This final rule implements the Colll~;s to take u~w~-~m~i~ . *., .o~ ~o~i~md~ through rulemaking.. Title VII [Enterprise Zone Development] ~ - -'* ........ ~- ~..~/~:~.~)~.~..t,~ ~ommentar questioned the of the Housing and Community Fe.d .m~l ..F~. terpri.se Zone ~le~i~p~' .~ '~ ~m~pmprlatenese of the "special Development Act of 198~, [Pub. L. 100- wmcn will complement tttW~l~.~. ~ ?.~T/" assistance' contemplated for HUD 242]. This Title authorizes the Secretary ..~ ** ' -- - -- *'- _.:;~'. *'~ ...... ~m'o~r s in support of Enterprise Zones, t ne rioustng eno t~ommum~ ~- · am th ' of the Department of Housing and Urban ...... · theory that tho would detract Development Act of l~.tnclu~ ~ ~ ~l'om ......... - Develosment [HUD] to designate not VIL Ente rise Zone D ........ ~ ~'' ~ me *~.nterpnse ~one l~xperiment. more than 100 zones based entirely on new prom'am. As reouire~b~tlm.:~. : /;~ could play a useful role m rank order of distress. The Secretary is -- - -~ ......... mn ' · ~ statute, the proposed rule for lRJw";~rl~: ...... ..~ more_mtergovernmental authorized to waive HUD regulations ....... ~-~...~, .......... -: ,. ~ u~" ':Omoperation and sharing of "success" promote coordination and expedite ~mm Th,, m ,.I,,, ,,,~ .~, ~..~ ~ mm2els ri*om the mllerent States by consideration of all HUD programs on July 5, ~988. - -- ~:~:....-.~....q~onsonng workshops and conferences, within the desiBnated zones. ~- -: ':_.. -this commenter said. The Department The pul,on of the program ts to - IL Commams /. - wit continue its support of such efforts, encourage business to invest in TIM Dei_~artumnt received ntudmn - -'but our focus will be on support of the distressed areas, thereby creating jobs public c. mnmon'm in response m .I~JUM ~ones desiguated in accordance with and assisting in the economic 3, 19e8 proposed rule. in additkm, a ' ~Title VIL revitalization of these areas, number of telephone calls were Several commenters noted that the m~'ucTivu GA'tV.: Under section 7(0)(3) of received. Enterprize Zone Prnsram needs Federal the Department of Housing ,nd Urban Several af MJe commenters a~ ~r, aJJqea tax incentives to maximize a positive Development Act (42 U~S.C. 3S3S(d}}, raimsd coUm over the requlmmmtd hitm~e on businesses in the zone. this final rule cannot become effective UDAC elisihility, for the no~" Wlub herin8 merit, the comment goes until after the first period of 30 calendm, julsdictimL Ot~rs, concernedbacmme . well beyond the purview of rulemakin8 days of continuous session of Consrem duip-tton will be based en ' _timb, mu- . under Title VII. which occurs after the ckte of the rule*a rank order of d~tress, suggested ~hat tke' One commenter noted that the 25-year publication. HUD will publith a notiee ~ qu .a~. oYIbe Course of Actiomd:toubl ' bsisnation period seems excessive. of the effective date of this rule. ." be taken into consideration inmaidS~ ~ ~: 11xis period is in the statute and, in any Whether or not the statutory waiting the designation. Both of these '*.'~ rase, is 8 maximum. The nominating period bas expired, this rule will not provisions, however, are so clearly :'. Jurisdiction is free to specify a shorter st become e/fact, ire until HUD'o separatz required by the statute that thom boo ...' Mae period. This commenter also or notice is published announcing a boob ~or interpretation through suggested that HUD take ·leedership h~ 8pacific effective date. rulemakins. ~ ale in coordinating other Federal 'l~e Secreta,-~ is not authorind to activities in Enterprise Zones. As a FOR PURTI4ER INFORMATION COMTAC~. desipmte enyzones which ha~e an practical matter, HUD has been working su lVfichael T. Savage, Deputy Director, tnsdeqamte Cease of Action. actively with other Federal agencies ret Office of l~lock Grunt Assistanoe, Rome Accordingly, even though the f~mm whom we have received significant pr( 7280, Department of Housing and Urban designation will be based on tim rank indications of support, and HUD will w~ Development, 451 Seventh Street. SW., order of distress, HUD will empbaoize continue this effort on a zone by zone tht Washington, DC 20410, telephone {~2] the necessity for development of u imsis following designation. ?55-6588. {This is not a toll-free pre telephone number.] credible local strategy as reflected in the One State government commented to, Course of Action. that it was pleased with the Federal bet SUPPt~MENTAR¥ INFORMATION:. AS suggested by one comment~r, in 8overnment's support of State effoFt8 to vet I. Background evaluating the Course of Action, the mb revitalize economically distressed pre does provide for consideration Q/the communities, and welcomes the pro Legislation to authorize Enterprise past efforts, as reflected in state opportunity to join in the nomination des Zones has been a goal of the enterprise zone designation, az well es process. ' Administration since its inception. Since effective coordination of local, State and ' Another State noted its strong support req 1982. several Enterprise Zone Bills have Federal efforts. (See § 596.202(C]). for the Federal enterprise zone effort, jori been introduced on behalf of the One conunenter 8ngsested that I-~ mad raised a question about the on Administration, providing significant tax require that more than four of the core population loss criterion. The State the incentives as well as the potential for elements in the Course of Action bm pointed out that more recent data to 8dj~ waiver of Federal regulations, required to make the determination of demonstrate populationloss are ,Federal Register / Vol. 53, No. 158 / Tuesday, August 16, 1988 / Rules and Regulations available than from the 1980 census, as long as the zone eligibility criteria are not standard and is not consistent with floweret, the statute specifies 1970-1980 met. that for other areas nationwide. The as the time frame to which the The same commenter suggested estimates of the Bureau of Labor population loss determination applies. Regional allocations of zones, to attempt Statistics (BLS) of the U.S. Department Accordingly this could only be changed to achieve a geographic dispersion, of Labor are the only labor force and by amending the law and cannot be Again, the statute is clear that the unemployment data for all nationwide addressed by rulemaking, designations will be based solely on areas derived using a uniform standard The same cornmenter suggested rank order of distress, and accordingly, methodology. Since nominated areas designation of zones on a semiannual this suggestion cannot be adopted, must compete with each other for basis over a two-year period, primarily Another commenter suggested that the designatiOn on the basis of these and to enable States with relatively new same distress criteria be applied to both other criteria specified in the legislation, enterprise zone programs to compete the urban and rural zones--specifically, the Department considers it to be effectively. The statute does not require that zones in each category be required especially important to use data which that nominated areas be State zones, but to meet only one of the four distress is available nationwide and is derived rather implies that the basis for the joint criteria to demonstrate eligibility using a standard methodology. nomination process is to assure State (unemployment, poverty, income level, Therefore, HUD has decided not to support for zone activities. Nothing population loss). The law specifies that change this provision of the regulation. · precludes States without zone programs urban areas must meet the poverty and Another issue raised by this from participating. This comment will, unemployment test, and must satls~ commenter is that of UDAG eligibility however, be taken into consideration one of the other two criteria, for Indian Reservations, particularly the before HUD's publication of the F~dsral Accordingly, this su~estion cannot be problem caused by the fact that those Register Notice announcing suSmisaion ' adopted. period, deadline dates and nmnber of Another conunanter was concerned Tribes which never received revenue zones to'be designated in accordance that rural areas in the Slate could not sharing are ineligible for the UDAG with § 596.304. meet the 1.5 unsmployment rate and program. Section 701(c)(3)(B) of the Housing One State is concerned because its therefore could not be eligible. This and Community Development Act of State law does not explicitly authorize comment reflects a misunderstanding of 1987 provides that an area eligible for application for Federal enterprise zones, the eligibility criteria for rural areas. However such explicit authorization is Only one of the four criteria nonfination must be "located wholly not required by Title VH. The (unemployment, poverty, income level, within the jurisdiction of a local requirement is only that the State join in or population loss) must be met for a ltovcrnment eligible for assistance under the nomination by providing support for rural area to be eligible, section 119 of the Housing and One commenter suggested that, with Community Development Act of 1974." the Course of Action and certifying the regard to Indian Tribes, the definition of {section 119 of the Housing and eligibility data. This can be done, HUD believes, under general governmental "Reservation" should be changed to add Community Development Act of 1974 is powers and should not require State "off reservation lands" held in trust by the UDAG enabling legislation}. All enabling legislation, the Secretary of Interior. Since the nominated areas are subject to this statute uses the term "Reservation" requirement including nominated areas The same commenter obiects to rural there is no basis for changing the on Indian Reservations. In addition, in areas being ranked separately. However reference in the rule. determining UDAG eligibility with this is specified in the statute and there The same commenter was concerned regard to Indian Tribes, the Department is no room for HUD interpretation, about the requirement for a "continuous is constrained by section 14001 {bJ(6J of One commenter suggested boundary" for an Enterprise Zone on an the Consolidated Omnibus clarification of the one-third rural set- Indian Reservation. Even if a particular Reconciliation Act of 1985 {Pub. L 99- aside to say .... * 100 enterprise zones, reservation does not possess a 272}, which provides that section 119 at least one-ti~ird of * .... The rule continuous boundary, an Enterprise {n}{2} of the Housing and Community states that there will be "not less than Zone may be so constructed that it does Development Act of 1974 {the section of one-third". We think this is clear and present such a boundary and hence may the UDAG enabling legislation have not changed the langnage in the qualify for designation, concerning Indian Tribes) is amended to rule. The snggestion was made by this state that an eligible applicant "seas an Several commenters provided commenter that HUD use data from the eligible recipient under Chapter 67 of suggestions regarding waiver of HUD Department of Interior to compile the title 31, U.S. Code (General Revenue regulations and coordination of HUD employment statistics to be used to rate Sharing) prior to the repeal of such programs. Except for subject matter nominated areas on Indian Chapter." which is required-by statute {and Reservations. The regulation currently The same commenter suggested that therefore cannot be waived) the states in § 596.101{d){1} that the regulation should be clarified to provisions of this rule are broad enough "unemployment will be based upon permit joint nominations by Tribes and to cover all of the possibilities that have decennial census data adjusted by the State or local government. This is been raised. These suggestions will be most recently available annual average already provided for in the rule. (see very helpful to the department in unemployment estimates, from the § 596.200{a}}. preparing for coordination of HUD Bureau of Labor Statistics for the Two commenters were concerned that programs in zones following smallest jurisdiction which includes the the reference to "program setasides" designation, nominated area.*' We have checked with referred to preference for minority One commenter misunderstood the the Bureau of Indian Affairs concerning businesses in contracting. In the Context requirement for UDAG eligibility for the the data available on unemployment on of Subpart G--Coordination of Housing jurisdiction. If UDAG eligibility is based Indian Reservations and found that the and Urban Development Programs, on a "pocket of poverty" designation, data is inconsistent in quality for "program setasides" is given as an the proposed zone could be in or different Reservations. In addition, the example of one form of special adjacent to the "pocket of poverty" area, methodology used to derive the data is assistance, and refers to an allocation of 30946 Federal Re~ister / Vol. 53, No. 158 / Tuesday, August 16, 1988 / Rules and Resulation~ ~' ~- program funds specifically for Enterprise This rule does not constitute a "major Accordingly, the Department adds a Zones, and does not refer to the rule" as that term is defined in section new 24 CFR Part 596, as follows: contracting process, l(b) of the Executive Order on Federal Crime problems and the homeless Regulation issued by the President on PART $9~-ENTERPRISE ZONE population should be considered as February 17, 1981. Analysis of the rule DEVELOPMENT evidence of general distress, one indicated that it does not: (1] Have an commenter suggested. The regulation annual effect on the economy of $100 Subgwt A--~ener-! Provisions states that "general distress shall be million or more; (2] cause a major Sec. evidenced by describing conditions of increase in costs or prices for 596.1 Applicability and scope. distress existing within the consumers, individual industries, 598.2 Objective and purpose. area * * * such as abandoned housing, Federal, State or local government 596.3 Del'tuitions. infrastructure deficiencies, or other agencies, or geographic regions; or [3] 598.4 Secretarial review and enterprise zone designation. appropriate indicators of conditions of have a significant adverse effect on 596.5 Waivers. general distress. HUD agrees these competition, employment, investment, 596.8 Consultation with other federal might be *'appropriate indicators of productivity, innovations, or the ability agencies. conditions of general distress" for some of United States-based enterprises to localities, compete with foreign-based enterprises Subpwt B-Area Requirements One commenter suggested that size of in domestic export markets. If Congress 598.100 General. communities be a basis for allocating passes tax legislation to augment the 596.101 Eligibility requirements. zones, i.e. small SMSA, large SMSA, and authority under which this rule is Subg~fl C--State end Local Government Non-SMSA. However, the statute promulgated, the implementing rule for Action, provides only for the one-third rural such legislation would constitute a s~.200 Nominations by State and local setaside. Accordingly, there is no basis major economic impact and the governments. for additional allocation requirements Department would prepare a Regulatory 598.201 Nomination of Indian reservations. through rulemaking. Impact Analysis at that time. 598.zoz Course of action. IIL Addition to F'mal Rule The information collection $ubgwt O--Zone I)eslgnation Pr§case requirements contained in Part 596 of In the proposed rule, § 596.400 this rule have been submitted to the 596.300 Nomination for designation of an Monitoring, was reserved. Followin~ enterprise zone. discussions within the Department, the Office of Management and Budget for 598.301 HUD action and review of following section now is being included review under the Paperwork Reduction nominations for zone designation. in the final rule: Act. No person may be subjected to 598.302 Selection factors for designation of penalty for failure to comply with the nominated zones. Section 596.400 Monitoring information collection requirements 598.303 Zone designation in rural areas. HUffs role in monitoring Enterprise contained in Part 596 until they have 596.304 Number of zones designated. Zone activity will be kept to the been approved and assigned an OMB Subgwt E--4~ost Zone Designation minimum necessary to determine control number. The OMB control compliance with the State and local number, when assigned, will be 598.400 Monitoring. commitments made in accordance with announced in the Federal Re~ister. 598.401 Revocation of enterprise zone § 596.200(4] or [for an Indian Under 5 U.S.C. 805[b] [the Regulatory designation. 598.402 Evaluation and reporttn8. Reservation) the assurance required by Flexibility Act], the Undersigned hereby § 596.201(h]. Monitoring will be carried certifies that this rule does not have a SUbl~rt F--Waive~ o~ Modification of Rules out in conjunction with ongoing CPD significant economic impact on a 598.500 Requests for waivers or activities in the community, e.g., CDBG substantial numbe~ of 8mall entities, modifications. monitoring visits. While the Enterprise Zone Program will 598.501 Waiver or modification of HUD The rationale for this approach is that permit small entities to apply for rules in enterprise zones. since the Secretary is authorized to designation and to benefit from their Subpart ~--Coon/i~ation of Housing and revoke an Enterprise Designation participation in the program, the impact U~an Oevelogme~t Programe [§ 596.401], a process must be in place to on these entities is a function of the 598.600 Coordination of HUD programs. determine whether conditions exist that operation of Title VII of the Housing and Authority: Title VIL Housin~ and would trigger revocation. At the same Community Development Act of 1987, Community Development Act of 1987 (42 time. the Department does not want to and is not caused by the rulemaking, U.S.C. 11501-11505]: Sec. 7[dj. Department of place an undue burden on either the which merely provides the machinery Housin~ and Urban Development Act '[42 HUD field office or on Enterprise Zone for designations of zones under the U.S.C. 3535(d)). designees, statutory criteria. This rule is not listed in the Subpart A--General Provisions iV. Other Matters Department's semiannual agenda of A Finding of No Significant Impact regulations published on April 25, 1988 § 596.1 Apglicabil~ and sc§ge. with respect to the environment has (53 FR 13854), under Executive Order la] This part covers policies and been made in accordance with HUD 12291 and the Regulatory Flexibility Act procedures applicable to enterprise regulations in 24 CFR Part 50, which at 49 FR 15960. zones authorized under Title VII of the implement section 102(2](C] of the A catalog of Federal Domestic Assistance Housing and Urban Development Act of National Environmental Policy Act of Program number for the Enterprise Zone 1987. {Pub. L. 100-242. approved [: 1969. 42 U.S.C. 4332. The Finding of No Development Program is 14.233. February 5, 1988]. Significant Impact is available for public {bi This part includes provisions c inspection and copying during regular List of Subjects in 24 CFR Part 596 relating to area requirements, the business hours in the Office of the Rules Enterprise zones, Economic process of nomination of enterprise b Docket Clerk, Room 10278, 451 Seventh development, Housing and urban zones and the designation of enterprise c~treet. SW., Washington, DC 20410. development. Community development, zones by HUD. ~' Federal Register / Vol. 53, No. 158 / Tuesday, August 16, 1988 / Rules and Regulations 30947 § 596.2 Objective end I~lmae. Localgovernment means any county, date of designation by the Secretary and The purpose of this part is to provide city, town, township, parish, village, the ending on the earliest of: for the establishment of enterprise zones District of Columbia, or other general {1} December 31 of the 24th year after in order to stimulate the creation of new purpose political subdivision of a Stats, such date: jobs, particularly for disadvantaged or combination thereof, which ia an {2} The date designated by the State workers and long-term unemployed eligible applicant for assistance under and local governments as set forth in individuals, and to promote the Urban Development Action Grant their nomination: or revitalization of economically distressed program under 24 CFR 570.451{e}. {3} The data the secretary revokes the areas primarily by providing or Metropolitan StatisticalArea is an designation of the zone pursuant to encouraging: area designated by the Office of § 596.401. {a} Tax incentives at the State and Management and Budget aea local levels; freestanding Metropolitan Statistical lb) Specific actions to reduce, remove. Area or a Primary Metropolitan The Secretary may waive any simplify, or streamline 8ovemmental Statistical Area, where both primary requirement of this Part not required by requirements at the Federal, State. and and consolidated Metropolitan statute when it is determined that the local levels; and Statistical Areas exist, application of the requirement would {c) Improved local services and an Nominated enterprise zone means an adversely affect the purposes of the Act. increase in the economic stake of area which has been nominated by a enterprise zone residents in their own State and by a unit or units of local § community and in its development, government for designation as an particularly through the increased enterprise zone. The Secretary will consult with other involvement of private, local, and Rural area means either. Federal agencies regarding enterprise neighborhood organizations. {a} An area located within the zones as follows: jurisdiction of a unit or units of local {a} Date. The Secretary will consult § 696.3 Definitions. government with a population of less with the Director of the Bureau of the The following definitions apply to this than 50,000 and which is wholly located Census or the Commissioner of the Part: outside of a Metropolitan Statistical Bureau of Labor Statistics, as Act means Title VII of the Housing Area; or appropriate, with regard to the data and Community Development Act of {b) An area located within the required for determinations of eligibility 1987 [Pub. L. 100-242. approved jurisdiction of a unit or units of local of areas nominated as enterprise zones February 5. 1988]. government not meeting the criteria of under this Part. Course of Action means a strategy paragraph [a] of this Section which is [b] Designation Process. Before the developed and agreed to by the determined by the Secretary, after designation of nominated enterprise appropriate State and local governments consultation with the Secretary of zones by the Secretary, the Secretary to reduce the various burdens borne by COmmerce, to be a rural area. will consult with the Secretaries of employers and employees in an area Secretary means the Secretary of ~ Agriculture, Commerce, Labor, and the determined to meet the eligibility Housing and Urban Development. Treasury, the Director of the Office of requirements of the statute. The course State means any State of the United Management and Budget; and the of action must include four out of six States and the District of Columbia, Administrator of the Small Business provisions identified in § 596.202{b}, and Puerto Rico, the Virgin I~land~, Guam, Administration. must include written comments from the American Samoa, the Northern Mar§aaa {c} Indian Reservations. The Secretary local government and State in which the Islands, and any other of the will consult with the Secretary of the nominated area is located that they will possessions of the United States. Interior regarding the designation of follow the course of action, nominated enterprise zones located Designated enterprise zone means an § S9~.4 $ecmta~ai review m~l e~teq~rlse within Indian reservations. drea which has been designated by the zoos d~lgrmaoa. (d) Regulatory Waivers. The Secretary as an enterprise zone and (a) Review andDesignaU'on. The Secretary may consult with other within which the provisions of section Secretary of Housing and Urban Fe41eral agencies, as appropriate. 703, 704, and 705 of the Act will apply. Development will review nominations regarding requests for waivers and HUD means the United States submitted by State and local modifications submitted to HUD or to Department of Housing and Urban governments to determine the adequacy such other agencies under § 596.500. Development. of courses of action submitted in Indian reservation means an area accordance with the requirements of the $ubpart B--Area Requirements determined to be a reservation by the Act. The Secretary will degignate a Secretary of the Interior. As with the maximum of 100 enterprise zones. The § S~.100 O~eneral. UDAG program, for the purposes of the designations shall be based entirely {a) Eligibility. An area is eligible for Enterprise Zones program, the term upon the rank order of distress, except nomination by a State and one or more "Indian reservation" will include former that the Secretary will not designate a local governments, and for designation !nd§an reservations in Oklahoma, as zone if it is determined to have an under the requirements of this Part it' the determined by the Secretary of the inadequate course of action, area: Interior. {b} Rural Set Aside. Of the areas {1} Meets the population and If, dian tribalgovernrnent means the designated by the Secretary pursuant to boundary tests set forth in § 596.10~(a}; ~overning body of any tribe, band, paragraph {a}, at least one-third shall be {2} Is located wholly within the community, village, or group of Indians. located in rural areas, jurisdiction of one or more units of local ~,r Alaska Natives which is determined {c} Period of Designation. The government which meet the hy the Secretary. after consultation with designation of an area as an enterprise requirements for Federal assistance the Secretary of the Inter~or, to exercise zone shall remain in full effect during under section 119 of the ttousing and subs~antia! governmental functions, the period beginning in the effective Community Development Act of 1974; 30948 Federal Register / Vol. 53, No. 158 / Tuesday, August 16, 1988 / Rules and Regulations (3) Meets the tests' of pervasive (b) Meeting the requ/rementfor unemployment estimates from the poverty, unemployment, and general federal assistance under the Urban Bureau of Labor Statistics for the distress set forth in § 596.101[c]; Development Action Grant program, smallest jurisdiction which includes the (4) Meets the additional tests of FJigibility for designation of an nominated zone. The adiustment shall unemployment, poverty, and low income enterprise zone under this part is limited be made by multiplying the decennial or population loss in § 596.101[d}; and to areas located within the jurisdiction unemployment and employment data by (5) Contains no portion of an area of one or more units of local government the ratio of the latest annual average which is included either in an area eligible for assistance under the Urban unemployment estimate over the previously designated as a federal. Development Action Grant [UDAG] decennial year estimate. enterprise zone under this Part or as program. The jurisdiction must be [2] Poverty. The poverty rate for each part of another area nominated for identified to meet the minimum distress census tract that contains any part of designation as a federal enterprise zone. tests or meet the requirements for the nominated enterprise zone must be (b) Data usage for eligibility pocket of poverty based on designations at least 20 percent under the most recent determinations. The tests of population considered current for the purpose of available census data. If census tracts and distress set forth in § 596.101 are to enterprise zone eligibility. Local are not defined, evidence of the 20 be computed based on data from the governments must havebeen percent rate of poverty is required at the Bureau of Census and from the Bureau determined eligible by HUD to equivalent county division as defined by of Labor Statistics. The data shall be participate in the UDAG program under the Bureau of the Census for the purpose comparable as to point or period of time 24 CFR 5?0.453 or 570.486{a], and of defining poverty areas. The poverty and as to methodology. Appropriate eligibility has not been subsequently rate will be determined using the data will be identified by a Notice withdrawn by HUD. Nominations from estimated number of persons in families published in the Federal Register. local governments that do not meet this or as unrelated individuals who had lc) Usage of statistical area requirement will not be accepted for incomes below the poverty thresholds boundaries. While the boundary of an processing by I-H. ID. for the decennial census. Census tracts enterprise zone does not have to (c] Pervasive poverty, unemployment, [or other comparable areas] containing coincide with the boundaries of census andgenerol distress. An area must fewer than 100 persons as of the statistical areas, the eligibility evidence conditions of pervasive decennial census will not be tested requirements set forth in § 596,101 will poverty, unemployment, and general under § 596.101 {c}{1} and {d}{2}: be computed using the lowest level of~ distress. census statistical areas for which {1) Pervasive poverty and {3} Low income. For the smallest appropriate census data are available unemployment. The conditions of number of block groups or enumeration poverty must be reasonably distributed districts which entirely contain the and which can reliably be used to throughout the entire area. The poverty nominated enterprise zone, at least 70 perform the tests. The various tests describe the appropriate level of census rate shall be described by citing percent of the households must be statistical areas for making the nationally and locally available below 80 percent of the median determination regarding each test {i.e., statistics on poverty. The unemployment household income for the local tract, block group, block, minor civil situation shall be demonstrated through government{s}. The percent of household divisions, or enumeration district}. The provision of information on job loss, below 80 percent of median income is census statistical areas must be the plant closing, or other unemployment interpolated using decennial census indicators which have affected the area. tables which show the number of smallest group to entirely contain the {2} General distress. The area must be households in various income intervals. nominated zone. an area of general distress. General In the.case of a joint application, each § 596.101 Eligibility requirements, distress shall be evidenced by part of the zone must meet the 80 'Fo be eligible for nomination and describing conditions of distress existing percent of median income criterion for designation as an enterprise zone, an within the area, other than those of its jurisdiction; or, area must meet each of the following poverty and unemployment, such as (4] Popu/otion loss. There must be at c,,tL, ia. abandoned housing, infrastructure least a 20 percent population loss from {a~) Population and physica/ location, deficiencies, or other appropriate 1970 to 1980. The 1970 population will be The area must: indicators of conditions of general based on the smallest group of census distress, areas for which data are available and (1'l Be located in its entirety within the (d] Tests for unemployment, poverty, which entirely contain the zone. The j urisdiction of the unit or units of local low income, or population loss. A 1980 data will be based on the smallest government nominating the area: nominated enterprise zone in an urban group of census areas which entirely 12} Have a continuous boundary; area must meet the requirements of contain the 1970 areas. {3) Have a population of at least 4,000, unemployment and poverty, and either In] Eligibility requirements for rural unless: low income or population loss. The data areas. A nominated area that is a rural (i) It is located in a rural area, in used to make tests will be expressed to area as defined by these regulations which case it must have a population of the nearest tenth of a percent. The must meet the requirements of at least 1,000; or criteria are as follow: paragraphs (a), (b} and (c) of this section {ii} It is located on an Indian {1} Unemployment. The and at least one of the criteria set forth reservation, in which case there is no unemployment rate for the smallest in paragraph {d}. minimum population requirement, number of block groups or enumeration No maximum population size or districts which entirely contain the Subpart C--State and Local geographic size is stipulated for an nominated enterprise zone must be at Government Actions enterprise zone because HUD does not. least one and one half times the national want to limit the flexibility of local rate for the same period. Unemployment § 596.200 Nominations by State and local governments and states in defining the for this purpose will be based upon governments. zones to meet local goals for stimulating decennial census data adjusted by the A State and local government may economic development, most recently available annual average nominate an area which is located , Federal R~gister / Vol. 53, No. 158 / Tuesday, August 16, 1988 / Rules and Regulations 30949 wholly within the jurisdiction of the limited to, four of the following six original location or in any other areas local government and which meets the elements: where the existing business entity nomination criteria set forth in {1) ^ reduction of tax rates, fees, or conducts business operations. paragraph {b} of this section for user charges applying within the designation as an enterprise zone. enterprise zone; SubVert D--Zorm Ds~rmtJon (a} Nominations involving more than (2) An increase in the level or Procemm one unit oflocalgovernment. Two or efficiency of public services within the more units of local government jointly enterprise zone; § $96.300 Nomln~ion fo~ designation of ~ eotm'pflse zone. may nominate, in conjunction with the {3} Actions to reduce, remora, State, areas that meet the nomination simplify, or streamline paperwork A separate Nomination for criteria set forth in paragraph {b) for requirements within the enterprise zone; Designation of an Enterprise Zone must designation as an enterprise zone. {4} Involvement of public authorities be submitted for each area for which {b} Nomination criteria. A nomination or private entities, organizations, enterprise zone designation is requested. must comply with each of the following neighborhood associations, and The Nomination for Designation of an requirements: community groups, particularly those Enterprise Zone must be submitted in a {1} The area must meet the eligibility within the nominated area, including a form prescribed by HUD, and must requirements set forth in § 596.100{a}. written commitment to provide consist of complete and accurate {2} The State and local government, or employers, employees and residents of information. The Nomination for governments in which the area is the nominated area: Designation of an Enterprise Zone shall located must have the legal authority to (i) Jobs and job training;, contain: nominate the area for zone designation (ii) Technical assistance; (a) Eligibilitj~ information. and to carry out the course of action in ' {iii} Financial assistance; and Information necessary to determine accordance with § 596.202. {iv} Other assistance, whether the area meets the eligibility {3} Ail requirements of State and local {5} The giving of special contract requirements of § 596.101{a}; law for the nomination must have been fulfilled, preference to businesses owned and {b} Stat~ and localgov'ernment (4) The State and local government or, operated by members of any minority; certifications. The nomination and Certifications by the State and by each in the case of joint nominations, each local government, must agree in writing {8} The gift {or sale at below fair unit of local government in which the to the specific provisions of the course market value} of surplus land in the designated zone is located that: of action to be carried out by each enterprise zone to neighborhood {t} Each unit of local government organizations agreeing to operate a meets each of the eligibility criteria set governmental entity, and must provide business on the land. forth in § 596.101 {a} and {b}; assurances that the commitments set forth in the course of action will be {c} P, ecognition ofpast efforts. In {2} The area meets the population and evaluating courses of action agreed to boundary tests of § 596.101{a}; carriedthe course out of during action, the period specified in by any State or local government, the {3} The area is one of poverty. Secretary will take into account the past unemployment, and general distress and § $96.201 NomlrmtJofl of bJdJafl efforts of a State or local 8overrmient in that the conditions are pervasive reservat~one, reducing the various burdens borne by thronghout the area as required by (a) In the case of an Indian employers and employees in the area § 506.101(c): reservation, the governing body of the involved. (4) The area meets the tests of reservation may nominate areas located {d) Prohibit/on of ass/stance for unemployment, poverty, low income or within the jurisdiction of the Indian bus/ness relocations, loss of population, set out in reservation. {1} The course of action may not § $96.101{d}; and {b} The governing body of the include any action to assist: {5} The area contains no portion of an reservation shall be deemed, for {i} The relocation of any area that is either already designated as purposes of this part, to be both the establishment; or an enterprise zone under this part or is State and local government for the {ii} Any subcontractor whose purpose otherwise included in any other area reservation, and shall be responsible for is to divest, or whose economic success nominated for designation as an meeting the requirements of § 596.200{b}. is dependent upon divesting, any other enterprise zone under this part; contractor or subcontractor of a contract {8} Each governmental entity has the § $06,202 Course of actkm, customarily performed by such other authority, with respect to the nominated The State and local government shall contractor or subcontractor, develop a course of action designed to (2) This limitation does not apply to area, to: reduce the various burdens borne by the expansion of an existing business {i} Nominate the area for designation employers or employees in the entity throngh the establishment of a as an enterprise zone; nominated area and to promote new branch, affiliate, or subsidiary {ii} Make the State and local community revitalization, as follows: where: commitments required under {a} Implementation. A course of action {i} The establishment of the new § 596.200{b}{4}: and may be implemented by the local branch, affiliate, or subsidiary will not {iii} Provide assurances that these government or by the State nominating result in an increase in unemployment in commitments will be fulfilled. an area for designation {or both}, and by the area of original location or in any {7} The written agreement between nongovernmental entities. A course of other area where the existing business the State and local government or action may be funded from the proceeds entity conducts business operation; and governments required by § 596.200(b)(4) of any Federal assistance program as (ii) There is no reason to believe that has been executed. well as from State. local, or private the new branch, affiliate, or subsidiary (c) Maps and zone description. Maps resources, is being established with the intention of and a general description of the area lb) E/emerita of Cou~se of action. A closing down the operations of the shall accompany the nomination course of action must include, but is not existing business entity in the area of its request. ,30950 Federal Re~ister / VoL 53, No. 158 / Tuesday, August 16, 1988 / Rules and Regulations § 596.30t NUD action ami revie~ of are missi~ and the applicant did not finding by the Secretary under this nominations ~ zone ~le~tlo~ establish that the area would pass the section, the Secretary may issue a final (a) Establishment of submission test, a rank of zero would be used. notice of revocation of the designation procedures. HUD will establish a time of the area as an enterprise zone. period and procedures for the § 5~o.aoa ~ d~natloo i~ rum~ ~ submission of Nominations for For rural areas as de~'med in § 596.3, § $~.402 Evalumt~ and Designation of an Enterprise Zone. The rank order of distre~ will be For the zones designated in submission deadline and addresses for determined separately as set forth in accordance with § 586.302. the submission of nominations will be § 596.101(~.). Department will require periodic published by Notice in the Federal reports. These reports will identify the Register. The data and specific criteria § b'~.304 Number of zona~ desiSnated, local and state actions which have been which will he used to establish HUD may choose in advance to eligibility will also be identified in the designate less than the maximum taken in accordance with the course of Notice. number of eligible zones in any one action and describe the economic and (b) Ac.c. epton~e for processing. HUD submission period. When HUD physical revitalizations which has occurred in the zone. The following will accept for processing those announces a submission period, HUD types of data will be needed for Nominations for Designation of an will announce the number of enterprise evaluation of Enterprise Zone progress: Enterprise Zone which HUD determinos zones which will be desismlted as a {a} Bose fine data. Base line data for have met the criteria required by this result of that period, Qualified areas the zone and the city as a whole to part. HUD will notify the State and local which are not selected in one government or tribal governing body submission period may reapply in e permit comparison of the city and zone within 10 worid~ days from receipt of subsequent submission period, before and after designation. the nomination whether or not the (b)/ob strategy. A description of the nomination has been accepted fei' Subpart E--~ost Zo~e ~ strategy employed to create and maintain ~ in the zone; processing. The criteria for acceptance § $96.44M} lllo~todnS. (c] Bosiness data. Collection of annual for processing are as follows:. HUD's role in monitorin8 Enterprise data on new firms created and (1) The Nomination for Designation of Zone activity will be kept to the terminated in the zone and for the city an Enterprise Zone must be received by minimum neeessary to datermi~m as a whole, the. origin of firms moving HUD on or before the close of business compliance with the state ami local into the zone (within or outside the on the date established by Notice in the commitments made in accordance with SMSA], whether or not the firms are Federal Rail§star. t 596.200[4] or (for an Indian branches of existing firms, the number (2) Each unit of local government must Reservation) the assurance required by of firm expansions, jobs created, jobs be determined by HUD to have met the § 596.201(b]. Monitoring will be carried retained for firms which provide solid requirements of § 596.101(b]. out in conjunction with ongoing CPD evidence that they would have moved (3] The Nomination for Designation of activities in the comm,nlty, es., CDBG out of the zone in the absence of an Enterprise Zone mast he complete mouitorin8 visits, incentives, and a listing of benefits and contain a proposed course of action as required by § 596.202, and the § S96,401 I~vocaOon of e~tefl~lm zone received by new and expanding firms. certifications required by § 596.300 th] daslSneao~ Subfmrt ~Waivmr 04* Modification of and (c). The Secretary, after the consultations Rules (c) Evaluation of homiest§ans. Each required by § 596.8 (b] or (c), as nomination accepted for processing will appropriate, may revoke the designation § $StS0O Itequests for waive~ be reviewed by HUD to determine that, of an area as an enterprise zone ff the modiflcettmm. in the judgement of the reviewing Secretary finds that a local gnvemmont (a] Parties to o request. A Request for official, the problems to be addressed or the State in which the zone fs located Waiver or Modification of a HUD rule have been adequately accessed and the is not complying substantially with the shall be executed by the local actions proposed in the course of action State and local commitments mede in $ovemment or Indian tribal government appear to address these problems` accordance with § 596.200(b](4] or, [for of the jurisdiction that nominated an [d) Publication o~desi~nations, an Italian reservation} the assurance area designated an enterprise zone Announcements of those zones required by ! 596.201(b). under this part. receiving designation will be made by (a} l, Farnir~ letter. Before revoking (b] Submission requirements. A publication of a Notice in the Federal the designation of an area as an Request for Waiver or Modification Register. enterprise zone, the Secretary will issue must be submitted in writing in a form § 596.302 S~ecthm factom for a letter of warning to the nominating prescribed by HUD. The Request shall State and local governments: contain: cleslsnation of nominated zones. (1} Advisin8 that the Secretary has (1) A citation of the specific rule or Zone designation will be based solely determined that one or more parties to rules for which a waiver or modification vn rank order of distress. Each area will the written agreement required by is requested; be ranked within each of the criteria set § 596.200(b}(4} or, (for an Indian [2] A brief description of the change f~*rth in § 596.101(d} on the basis of the reservation] the assurance required by requested; and amount by which the area exceeds the § 596,201(b}, are not complying (3] A brief description of why the criteria. For the poverty criterion the substantially with the agreement or change would promote the achievement ranking will be based on the overall assurance; and of job creation, community poverty rate for the smallest number of (2] Requesting a reply from all development, or economic revitalization. block groups, enumeration districts involved parties, within a specified which contain the zone. The rank order period of time. § $96.501 Watv~ o~ modiflcatio~ of HUD will then be determined by the highest (b} Issuance o~ o notice of revocation, rules In ante*prisa zones. average ranking with respect to the four After providing a minimum of 90 days (a] Authority to grant waivers or criteria. In any instance where the data for parties to respond and upon a modifications. Upon the written request ~ ' F~leml Register / VoL 53, No. 158 / Tuesday, August 16, 1988 / Rules and Regulations _J0~__l of the governments that nominated an basis of race, color, religion, sex, marital waiver or modification is no longer area as enterprise zone under this part, Status, national or~in, age, or handicap; valid. the Secretary may waive or modify aH (2} Would directly violate a statutory or part of any rule which the Secretary requirement; or ,gubpart ~oordirmtion of Housing has authority to promulgate, as such rule {3] Would be likely to present a and Urban Development Progranm pertains to the carrying out of projects, significant risk to the public health, activities, or undertakings within the including envionmental health or safety. § 69~.600 ~4~'dlna~m of NUD designated enterprise zone, in order to (e) View of iaterested parties. To [a] To the maximum extent possible, further the objectives of the program, facilitate reaching a decision on any the Secretary of HUD will provide (b) Standards [or cons/derotion si requested waiver or modification, the special assistance to Enterprise Zones requests [or waivem and modifications. Secretary may seek the views of designated in accordance with § 596.302. In considering a request for a waiver or interested parties. This will include, but not be limited to: modification, the Secretary will weigh (fl 90 day reviewperlod for requests. [1] Expedited processing; the extent to which the proposed chqe Not later than 90 days after receipt of a [2] Priority funding; is likely to further job creation, request under § 596.501, the Secretary [3] Program setasides; and community development, or economic will make a determination whether to [4] Provision of technical assistance in revitalization against the effect the grant a request for waiver or furtherance of the objectives of Title VII. change is likely to have on the modification, lb] Although the designation of a underlying purposes of applicable [g) Notificatioa. Upon a determination federal enterprise zone under this part statutes and rules affected by the by the Secretary to approve a waiver or does not in itself constitute a federal change, modification, HUD shah inform the action that would trisger application of (c) Secretarial determination. A State and local governments requestin~ Executive Orders 11625 and 12432 request for a waiver or modification the waiver or modification. may be approved whenever the {h} Effect of subsequent amendments concerning minority business enterprise, the provision of federal funds to carry Secretary finds that the public interest to rules waived or modified, ff, out elements of a cours· of action will served by the modification would subsequent to the granting of a waiver require that the appropriate provisions outweigh the public interest served by or modification, HUD amends the rule of the program providing the funds continuing the rule unchanged, for which the waiver or modification has regarding Executive Orders 11625 and (d) Waivers or mod/f/cat/oas not been granted, the waiver or modification 12432 be met. authorized. The Secretary 'will not shah continue, in full force and effect approve any request to waive or modify unless the governments requesting the Date: August O, any rule which: waiver or modification are consulted lack it. Stokvb, (1) Was adopted to curry out a statute with respect to the effect of the Assistont Secretary for Community Plaani.~ or Executive Order which prohibits, or amendment on the requested waiver or andDevelopmenL the purpose of which is to protect modification and the Secretary ~ Doc. 8~-1~121 Filed 8-15-~; 8:45 am] persons against, discrimination on the determines, that the justification for the sa.~sm co~ NOV 0 8 1988 Wc]rner Cc]ble CITY MANAGER'S OFFICE Commur~Jccitiol3$ Inc. 3600 North Siflect Avenue, Bakersfield, California 93308 805/327-9671 November 4, 1988 Honorable Donald K. Ratty Bakersfield City Councilman 1501 Truxtun Avenue Bakersfield, CA 93301 ~ Dear Councilman Ratty: As part Of our ongoing commitment to the city of Bakersfield and its various entities, Y0U ~may be interested'in the attached letter from Dr. Tomas Arciniega in response to mine suggesting the possibility of cablecasting California State University athletic events. Sincerely, e R. ~_~neral Manager /~ LRG:lh cc: Kevin McDermott, Councilman James Childs, Councilman Patricia Smith, Councilman Ken Peterson, Councilman Mark Salvaggio, Councilman Pat DeMond, Councilman Thomas Payne, Mayor Dale Hawley, City Manager Office of the President California State,!~.~niversity, Bakersfield '" ,. 9001 Stockdale Highway :,, Bakersfield, California 93311-1099 805/833-2241 November 1, 1988 Mr. Lawrence R. Greenberg General Manager Warner Cable Communications, Inc. 3600 North Sillect Avenue Bakersfield, California 93308 Dear Mr. Greenberg: Thank you for your 25 October letter regarding the possibility of cablecasting a regular schedule of athletic events from California State University, ,Bakersfield. I have asked' Mr. Rudy Carvajal, Director of Athletics, to contact you to discUss your proposal. I appreciate your interest and continued support of CSUB. Thanks again for writing. ~Cordiall~,, ~ . · Tomas A. Arciniega President cc: Mr. Rudy Carvajai The California State University 0 3 1988 Worner Coble CITY MANAGER'S OFFICE Communicotion$ Inc. 3600 North Sillect Avenue, Bakersfield, California 93308 805/327-9671 November l, 1988 Honorable Donald K. Ratty Chairman, Budget and Finance Committee Bakersfield City Council 1501 Truxtun Avenue Bakersfield, C~ 93301 Dear Councilman Ratty: Thank you and the members of the City council?S Budget and Finance Committee for the opportunitY to present our commen~s on the proposed amendments to the Municipal Code and the draft cable television rule concerning the placement of taps in under- ground vaults. We also appreciate hearing the concerns expressed by Committee members and the CitY's administrative staff at the meeting on these subjects. We listened very carefully to the concerns expressed by you and the members of the Committee and understand your.' desire to improve the aesthetics of Bakersfield's neighborhoods...However, we must ask: At what price would this' "imProvement" occur? As our written and oral comments have indicated, Warner Cable firmly believes that there are many compelling technical, regulatory, legal and operational reasons'for the~withdrawal of these proposed legislative actions. We are.very concerned that the quality and reliability of cable television service in Bakersfield would take a giant-step backWard ~if' these proposals become law. We are sure that' you'do not seek that outcome any- more than we do. We hope that we can work'with the CitY of Bakersfield to reach the best resolution possible. However,' you ~must know that we would most strenuOusly resist any attempt to require the place- ment of existing taps into underground vaults. Therefore, we urge the City Council's formal abandonment of any further, considera- tion of the draft ordinance amendments and the propOsed cable television rule related to requiring the. placement'of taps in underground vaults. Honorable Donald K. Ratty - 2 - November 1, 1988 We were heartened at the end of the Committee's meeting by the Committee's apparent consensus not to pursue adoption of the rule- making. We do believe, however, there is the possibility of achieving the aesthetic goals of the proposed ordinance amendments as construction takes place in new developments and subdivisions in Bakersfield. ~ To this end, we propose, for your consideration and action, the appointment of a task force or committee to study and make recom- mendations concerning alternative plans for locating easements and public rights-of,way and for their uSe by u~ilities and cabte com-. panies in new. developments so as to cause minimal aesthetic inter- ference with property frontages. This task force could be comprised' of representatives of the City and representatives of those entities that would normally place facilities in the right-of,way, such as the electric, gas and telephone companies, the water service and cable companies. .~ Of course,'Warner Cable would be pleased to participate in such an undertaking. We believe that your concerns abou~ future developments can be dealt with in a mutually agreeable manner and hereby commit to working with the City'to achieve those goals,~ We urge Your favorable action on this proposal. Thank you again for your interest in our. vieWs. sincerely, . /~ r ~.~JGeneral Manager ~ LRG:lh cc: Members, Bakersfield City Council __ Dale Hawley, Bakersfield City Manager John Stinson, Assistant to the City Manager, Bakersfield Art Saalfield, Bakersfield City Attorney Ed Shultz, Bakersfield City Department of Public WorkS Warner Cable Communications Inc. 3600 North Sillect Avenue, Bakersfield, California 93308 805/327-9671 October 26, 1988 The Honorable Donald K. Ratty Chairman, Budget and Finance COmmittee Bakersfield City Council 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Councilman Ratty: Please find enclosed with this letter Warner Cable's written responses to your request for comments on the proposed amend- ments to Sections 16~32%060 Bo6. and Df.'6. of the Bakersfield Municipal Code and the proposed Cable Television Rule and Regulation No. 88-1. We want to take this opportunity to thank E. W. Schulz for soliciting Warner's comments on these proposals~ on behalf of the City Council and the Budget and FinanceCOmmittee. We also want to express our appreciation for being'~afforded time on the Committee's agenda to make a comprehensive presentation on these important proposals, and to outtine~the potentiai' effects of these proposals, if they are passed, on the ~operation and maintenance of~the Warner Cable system in'Bakersfield and, ultimately, on the quality of service that would'be provided to our customers under those circumstance. Warner Cable will be represented at the Committee meeting by Ronald McMillan, Vice President of Engineering;~ Kathryn Bryant, Director of Government Relations; and myself. 'We are prepared to answer any questions you ~or the members of your Committee may have concerning these or any other matters. Please feel free to call me at 327-9935, if you have any questions. You may also wish to contact Mr. McMillan or Ms.'Bryant directly. They may be reached by calling (614) 792~7446 and"(614) 792-7408, respectively. Again, thank you for providing us with an opportunity to present our comments to you. Sincer~ely, /~ ~.,/General Manager LRG:lh WARNER CABLE COMMUNICATIONS, INC. COMMENTS TO THE CITY OF BAKERSFIELD CITY COUNCIL'S BUDGET AND FINANCE COMMITTEE ON PROPOSED AMENDMENTS TO THE BAKERSFIELD MUNICIPAL CODE: SECTIONS 16.32.060 B.6. & D.6. PROPOSED CABLE TELEVISION RULE NO. 88-1 Councilman Donald Ratty, Chairman councilman James Childs, Member Councilman Kevin McDermott, Member October 26, 1988 I. INTRODUCTION Warner Cable has operated a cable system in the City ~of Bakersfield for almost two decades, commencing with our acquisition of the Bakersfield system in the early 1970's. During that time, Warner has endeavored to provide our Bakersfield customers with the best cable service possible. In a continuing effort to meet our customers' needs, we recently completed the two-year, $15 million system rebuild that has resulted in the expansion of system capacity to 54 channels and the addition of 17 new programming services. The new system also offers customers state-of-the-art one-way addressability and pay-per-view programming services. We believe that the newly constructed system, coupled with our installation of a new telephone system, construction of a new system office, and our hiring and training of additional Customer Service Representatives and Service Technicians, exemplifies Warner's continuing commitment to provide Bakersfield's citizens with superior cable service. Indeed, our engineering decision to begin a more widespread use of pedestals during the rebuild was the result of our intense desire to provide more reliable service to our customers and also the result of an informed technical evaluation of the efficacy of housing taps in pedestals versus underground vaults to meet that goal. We had significant experience, as you know, with the replacement and reliability of taps in vaults in Bakersfield~ prior to deciding to rebuild the system. We believed then, and continue to believe very strongly now, that the system would operate more dependably and system outages would be reduced dramatically if taps were moved from below-grade vaults to above-ground pedestals. Our belief has been borne out. The presentation that follows sets forth our reasons for opposing the passage of Cable Television Rule and Regulation No. 88-1 and the enactment of those portions of the amendments to Sections 16.32.060 B.6. and D.6., which would require the placement of taps in below-grade vaults. II. BACKGROUND As Warner Cable's planning for the commencement of construction began in 1986, we realized that significant disruption and confusion could result if we did not share our construction plans with the public and with City officials. Consequently, we worked to develop a -2- comprehensive public information campaign, starting with a half-day presentation to City officials and the media, which was held on April 3, 1986. A detailed package of construction information materials was provided to all who attended that briefing. In addition, copies of the information package were sent to various local television, radio and newspaper editors, and to the Bakersfield Mayor and members of the Bakersfield City Council. The information was also provided to elected officials from neighboring cities and certain other Bakersfield-area public officials, including members and staff of the Kern County Commission. The presentation outlined our plans to fully inform the public during system construction; and the information package contained several form letters concerning our construction plans which were sent periodically to homeowners and our custOmers by Warner's construction project team during the construction period. In addition, Warner held several meetings with various City representatives to keep them informed of and worked to resolve citizen complaints concerning the construction project. In fact, one of these meetings, held on November 19, 1986 with the City Council's Budget and Finance Committee, dealt most specifically with the question of the high tap pedestals used during the initial phase of construction and the complaints received about them. Ed Schulz, then Assistant Public Works Manager, was asked to prepare a status report on the Company's progress, and he reported the following facts to George A. Caravalho, City Manager, in a December 26, 1986 memorandum. Mr. Schulz wrote: Warner Cable suspended installation of the riser boxes in question on October 21, 1986. No risers have been installed since that date. The modified and shorter riser box which was displayed at Council Committee meeting has been placed on order by Warner Cable and shipment is expected after January 1, 1987. Installation of the new boxes will commence approximately January 15, 1987. In the areas 'where the higher riser boxes have already been installed, the Cable Company will contact all -3- affected residential property owners and if the owner wants the existing riser replaced with the modified shorter version, the Cable Company will immediately do so. We would note, for your information, that Warner acted quickly in the face of complaints about the use of high pedestals and suspended use of those pedestals within three months of the commencement of the construction project. Warner then proceeded to order smaller pedestals and to make them part of our continuing construction plan. These new pedestals were shown to members of the Budget and Finance Committee prior to our decision to order and use them. During the construction period and after we began to install the smaller pedestal, we responded individually to 229 pedestal complaints. These complaints were assigned to a member of the construction project team whose principal responsibility was their resolution. In some instances, the complaints were resolved by providing the property owner with an explanation of the reasons for installing the pedestal. In the vast majority of cases, however, we moved pedestals to property lines or behind bushes or into flower beds, ~as directed by the property owner. We contracted with a sprinkler installation and maintenance company and moved and repaired sprinkler heads as required, as well. However, we must note that those 229 complaints represent a minuscule percentage of the 6,400 pedestals installed in the Bakersfield rebuild. Only 3.6 percent of the affected property owners complained to us about pedestals in their front yards. In the six months following the completion of the rebuild, we have received only five (5) pedestal complaints in our office. Each of these complaints has been resolved expeditiously and to the satisfaction of the person who brought the problem to our attention. II. TECHNICAL AND FINANCIAL CONSIDERATIONS Back~round After much study and consideration, Warner Cable decided to bring all CATV equipment in the Bakersfield system above ground as a part of our system rebuild. The equipment, consisting of taps, splitters, and active electronics, was originally installed in underground vaults and has been relocated to above ground installations in pedestals during the rebuild. This action was taken, as discussed earlier, to improve the reliability of service to subscribers and to reduce maintenance costs. CATV equipment that is subjected to direct and prolonged contact with the earth corrodes to the point of mechanical failure, Obviously, such mechanical failure will disrupt service to subscribers. As you know, prior to the rebuild, there was a long history of such problems in the Bakersfield system. Technical Factors Cable, taps and equipment housings are made of aluminum. When aluminum comes in' contact with water, soil, and certain chemicals commonly used in landscaping, it corrodes rapidly. The corrosion is accelerated by electrolysis, which is created by the 60-volt AC current used to power the CATV equipment. These factors will cause rapid corrosion of the aluminum housings. When placed in underground vaults, the equipment is subjected to a very hostile atmosphere. The vaults are repeatedly flooded as lawns and shrubbery are watered. Water collects and stands in the vaults, and they typically fill with silt or sand, which only aids the corrosion. Nitrogen fertilizer, typically used on lawns, is dissolved in water and seeps into the vaults as nitric acid, which dramatically accelerates the corrosive process. Within a year of installation, the equipment will usually begin to show signs of corrosion. Local conditions and patterns, such as frequency of lawn watering and types of fertilizer used, dictate how rapidly corrosion develops. When the corrosion becomes severe, the functionality of the equipment is affected. Usually the drop ports (subscriber connections to outside system plant) corrode, making it impossible to disconnect a drop without breaking.the port. Water often seeps into the tap at the points where the cable enters or through the drop port openings, which causes the electronics to fail. If a hole develops in the tap or cable, RF leakage will occur, which will. make it difficult for the system to meet FCC signal leakage requirements. -5- Impact on System Operation and the Subscriber Corrosion creates many problems for system operations and therefore, subscribers. Corrosion of the tap ports or drop fittings will cause picture quality problems or complete disruption of service. Water seeping.into the tap can cause poor pictures and service disruption, as well. Any compromise of the integrity of the tap housings, plant cable drop port, drop fitting or drop will eventually result in service deterioration or disruption. These problems are minimized by moving the equipment above ground in a relatively dry, well-ventilated enclosure such as a pedestal. It is not normal industry practice~to locate such equipment below ground and is not good .engineering practice to do so. The manufacturers of this equipment do not recommend underground installation and will not warrant the equipment against corrosive failure when installed in underground vaults. Two independent organizations, the Aluminum Association and the Association of Corrosion Engineers, recommend above-ground installations wherever possible because of the predictable failures of equipment due to corrosion. Please feel free to contact them directly. Cost Considerations The cost to rebuild the underground portion of the Bakersfield system exceeded $3.9 million dollars of which $500,000 was spent relocating the equipment from vaults to pedestals. If the equipment is moved back into the vaults, we estimate the cost to be at least $500,000 in capital expenditures. Operating costs would be increased by at least $20,000 per year due to corrosion-caused equipment and service disruptions and outages. Since there are some 6,400 locations where taps would have to be relocated, it would take at least nine months to one year to complete such a project. During the project Bakersfield citizens--cable subscribers and non-subscribers alike--will experience more service interruptions and more intrusions into their yards. -6- IV. LEGAL CONSIDERATIONS We believe that the effect of the City of Bakersfield's proposed ordinance amendments and proposed rule-making would be to prohibit Warner Cable from installing and utilizing pedestals in the operation of its cable television system in Bakersfield. Such a prohibition would amount to a unilateral amendment of the negotiated franchise agreement pursuant to which Warner operates in'the City of Bakersfield. That unilateral amendment of the contract would be contrary to law and would deprive Warner of both existing rights and the economic value of the remaining life of the pedestals already installed. The Agreement dated March 1, 1978 authorizes Warner in Section l(a) "[t]o erect, install, construct, replace, repair, reconstruct, maintain and retain...poles, wires, cable,...and other property as may be necessary and appurtenant to the CATV System .... " (emphasis added). No where in the agreement is the use of pedestals prohibited. On the contrary, Warner's comprehensive presentations on the rebuild made to the City and local media prior to the commencement of the construction project explicitly stated our intention to use pedestals in our rebuild of the Bakersfield system. The City later approved Warner's rebuild plan as well as our plan to substitute smaller pedestals for the ones we originally installed. Warner relied on the City of Bakersfield's approval of the rebuild plan, including the use of pedestals. Now, more than six months after the completion of the two-year system rebuild using pedestals, Warner would be severely harmed if the City were to prohibit their use. In addition, the alternative to pedestals, underground vaults are known to cause corrosion of cable television electronic equipment which can result in signal leakage over and above that .allowed by the Federal Communications Commission (FCC). Sections 76.613-76.617 of the FCC's rules and regulations require cable operators to operate within specific limits of signal emissions because operation beyond these limits can cause harm to FAA-controlled radio navigation. A violation of these rules would subject Warner to fines and possibly loss of its license to operate specific frequencies within the City of Bakersfield. The loss, for that reason, would be felt by both Warner and the residents of Bakersfield alike. Pedestals today are preferred to underground vaults, not only because they foster superior picture quality and are less expensive to maintain and service, but because they are the best mechanism by which to maintain signal leakage to acceptable FCC standards. The proposed ordinance would clearly frustrate Warner's effort to comply with federal law and, in that respect, would constitute a disservice to the community. Lastly, if the City's proposed ordinance is passed, it will amount to a condemnation of the pedestals already installed, forcing Warner to replace existing pedestals with underground vaults at great additional cost to the Company. Such a condemnation without provision for compensation is clearly an abridgment of Warner's rights guaranteed by the Fifth Amendment to the Constitution of the United States. The estimated cost to replace the approximately 6,400 pedestals currently in Warner's Bakersfield system is $500,000; and, for that reason, Warner would be forced to seek every legal remedy to protect its interests. Warner shares the desire of the City of Bakersfield to protect aesthetic values. Be assured that Warner is using every effort to contribute to the preservation of the beauty of Bakersfield's residential communities. No one would argue that telephone poles, traffic lights and similar tools of government and commerce contribute to the aesthetics of the community, yet they are of unquestionable value. We believe this to be true of pedestals, as well. To comply with federal law, to assure high picture quality, to improve system reliability and to hold down service costs to subscribers, Warner proposed the use of pedestals when the rebuild proposal was submitted for review by the City in 1986. The reasons stated were compelling then, and are no less compelling now. Accordingly, Warner urges the City of Bakersfield to reject the proposed ordinance amendments and rule-making precluding the use of pedestals. And that Warner's existing system be maintained as constructed, and as agreed. V. SUMMARY AND CONCLUSIONS Warner Cable has attempted to recognize and service the cable television needs of the Bakersfield community during each of the years we have .had a franchise to provide cable service in Bakersfield. We have, most recently, spent more than $15 million on all aspects of system construction to -8- rebuild the former cable system in order to improve system reliability and to expand system channel capacity and technological capabilities. Now, following the conclusion of a two-year construction period, Warner has provided the citizens of Bakersfield with a more dependable, modern cable system that will give them access to many diverse programming services -- entertainment, news and information -- for many years to come. We at Warner are proud of the new Bakersfield system, and we believe it represents current, efficient technology. This system was designed, among other things, to remedy the outage problems that plagued the previous system. System outages caused by the corrosion of taps in vaults represented a costly problem for us. Taps in vaults require more maintenance and more frequent replacement because of water seepage and corrosion than do taps in pedestals. By designing and constructing a system with above-ground tap pedestals, we sought to not~ only improve system reliability and dependability, but also to reduce equipment maintenance, operation and replacement costs in order to minimize rate increases to our customers caused by those types of costs. We sought a technical solution to system outages caused by tap corrosion in flush-mounted vaults as we designed and built the new system. We felt, and still strongly believe, the only technical answer to the tap corrosion problem in Bakersfield is placement of taps in above-ground pedestals. Our rebuild proceeded accordingly. As the City Council is aware, we attempted to minimize the construction project's potential disruptive effects by informing the public and local officials continuously of our construction plans and schedules. Furthermore, we published construction project information hotline telephone numbers in local newspapers, on billboards and in the electronic media. Staff was specifically assigned to handle only citizen inquiries concerning construction. In addition, we were extremely responsive to the concerns of Bakersfield City officials and residents who complained of the size of the tap pedestal that was originally used in the project. We changed our plans during the first quarter of construction and ordered newer and smaller "turtle top" pedestals and replaced the taller pedestals used during the early phases of the construction period with them. The final seventy-five percent of system construction was then completed using these turtle top pedestals. -9- Furthermore, Warner's construction project team received and responded to the 229 complaints about pedestals received during the construction period. We 'note that this number of complaints is representative of less than four percent of the more than 6,400 pedestals installed during the rebuild and amounts to an average of approximately 10 pedestal complaints for each month of the rebuild. System construction was completed in April of this year. In the six months since then, only five complaints about pedestals have been received by our Bakersfield office. Those complaints have been resolved as well. We believe that the tap pedestals are not of any concern to an overwhelming majority of Bakersfield's citizens. Instead, we believe that our customers, Bakersfield's citizens, are concerned about receiving reliable, diverse cable service at reasonable prices. If the ordinance amendments and the rule-making are passed and Warner Cable is forced to comply with their provisions, system reliability and dependability is sure to decrease as the City-mandated flush-mount vaults fill with water and taps corrode and disintegrate, thereby disrupting service and causing outages. Therefore, system operation, maintenance repair and replacement costs are certain to increase. These new costs and the costs of installing taps in vaults, estimated to be at least $500,000 for removing the pedestals and at least $20,000 per year thereafter, will ultimately be borne by our customers. We believe that the proposed ordinance amendments and rule-making constitute the City's attempt to ~nilaterally amend the terms of our negotiated franchise agreement. Moreover, the course of action the City wishes us to take will put our system in substantial jeopardy relative to Federal Communications Commission rules concerning signal leakage. We are further concerned that the proposals, if adopted, would amount to a condemnation of the already installed pedestals and such condemnation without provision for compensation clearly abridges our rights under the Fifth Amendment to the U.S. Constitution. We are certain that the City has no desire to pass any legislation or regulation that violates our legal or constitutional rights or which requires us to take a giant technical step backward. Therefore, and for the reasons set forth above, Warner Cable Communications Inc. respectfully urges the withdrawal of proposed Cable Television Rule No. 88-1 and the limitation of the scope of the proposed amendments 'to Sections 16.32.060 B.6. and D.6. of the Municipal Code to issues related to equal access to utility trenches in new developments for any cable operator. -10- i 0 ~'-5--88 TUE 8 : 57' NUSSRALLAH P . 8 i 'Scientific Atlanta , Broacroand Communicatlon~ Business Division - B~ 105027, Atlanta, GA 30348; ,Telephone 404 92S-5000; Telex 461-1100 October 24, 1988 Mr. Ron McMillan Vice President Engineering Warner Cable Communications Inc. 400 Metro Place North Dublin, Ohio 43017 Dear Ron: Thank you for your inquiry regarding our taps. Warner Cable must recognize that some environmental conditions far exceed reasonable parameters for CATV equipment. Our equipment is designed to last the mechanical design life 'of the unit in normal conditions. However, tt~ere are special cases such as seashore areas and underground areas such as vaults and steam tunnels which severely limit the equipment life, Specifically, Scientific Atlanta does not recommend placing taps in areas such as underground vaults. The combination .of sprinkler systems, poor drainage, and lawn fertilizer Ieads to a highly corrosive nitric acid i envronment, and rapid deterioration of any vendor's tap housing can be expected. In continuing to honor our one-year warranty, we would expect to experience higher costs which would r ' al. se your prices. Also, we expect your costs due to tap failure after the first year to increase dramatically. Warner Cab!e and Scientific Atlanta have succesfullY completed many projects and we value your business and friendship. Thanks. for your inquiry and I hope we can assist you on other projects. David Fellows Director of Marketing Distribution Products Cox Cable Bakersfield A Subsidiary of 820 22nd Street Cox Communications, Inc.' Bakersfield, CA 93301 Cox Cabl October 19, 1988. Public Works Manager City of Bakersfield ~'~'. ". 1500 Truxtun Ave. Bakersfield, CA 93302 Dear Ed: Reference the proposed ordinance on above ground appertances, our attorneys have indicated that as long as we can live by the regulations then we have the go ahead. As with all compromise situations .there are things in the proposed ordinance that make our job more difficult to maintain quality service, but I suspect we can live with them. However, the 90 day time limit for removing any above ground tap pedestals is very ambitious. We would hope that if Cox Cable is showing a concerted effort in meeting this requirement, that our feet would not be held too close to the fire. Once again thank you for your help. Vice President an~ General' Manager i0.25.88 Copy-John Stinson, Manager's Office October 17, 1988 Mr. Lawrence R. Greenberg General Manager Warner Cable Communications, Inc. 3600 North Sillect Avenue Bakersfield, CA 93308 Dear Mr. Greenberg: This letter is to confirm that the Budget and Finance Committee of the City Council will be meeting on Wednesday, October 26, 1988 aL 12:15 p.m. in the City Manager's Office. You and other representatives from Warner Cable will be included on the agenda for this meeting so you may have an opportunity to discuss the proposed Cable Television Rule and Regulation with the Committee. You also requested information regarding the process required to adopt the proposed ordinance. It is likely that the earliest the proposed ordinance would be before the Council for first reading would be November 9, 1988. Once the ordinance has been given first reading at the Council meeting, the Council would adopt the ordinance at the next regularly scheduled Council meeting. Upon adoption, the ordinance would not go into effect for 30 days. If you have any questions regarding the upcoming meeting, please contact me at 326-3751. Sincerely, John W. Stinson ~ Assistant to the City Manager JWS:jp 1501 TRUXTUN AVENUE · BAKERSFIELD, CALIFORNIA 93301 · (805) 326-3751 00T 01988 CITY MANAGER'S OFFICE W~NER (:ABLE 400 Metro Place North ¢OMMUNI(:ATION5 IN(:, Dublin, Ohio 43017 614/792-7000 October 4, 1988 Mr. E. W. Schulz Public Works Manager 151 Truxton Avenue Bakersfield, California 93301 Dear Mr. Schulz: -- ' .... This letter is sent in response to your letter of September 27, 1988 in which you forwarded to me copies of proposed amendments to Sections 16.32.060 B.6. and 16.32.060 D.6 of the Municipal Code and proposed Cable Television Rule and Regulation No. 88-1 concerning the placement of pedestal taps. Your letter requested our response to those drafts by October 12, 1988. In order to prepare a comprehensive response to these proposed legislative and regulatory changes, we would request an extension of the response period to October 26, 1988. As we have discussed, Warner Cable Communications Inc. would very much appreciate an opportunity to address the appropriate City officials and make an in-person presentation to them. We believe that this approach will result in a more productive opportunity for questions and answers and ultimately, an amicable resolution of this situation. Please let me know if and at what time we can be included on the Budget and Finance Committee's agenda for Wednesday, October 26, 1988 to present our comments to them. If this is not a convenient date, please let me know the earliest date when the Committee can meet with us. We would respectfully request that we be given an opportunity to present our views on these proposals prior to Council action. A Warner Communlcatlot3s Company Mr. E. W. schulz October 5, 1988 Page 2 Thank you for soliciting our responses to this draft legislation and for your assistance and cooperation in scheduling our appearance before the Budget and .... Finance Committee._ Sincerely, ...._- ........ / ./ idawrence Greenberg/ l'J General Manager LG:KAB:mas cc: Don Ratty Kevin McDermott James Childs John Stenson Warner Communications Company AU8 2, 5 1988 '~ CITY MANA(~ER'S OFFiCt~ Warner Cable Communications Inc. 3600 North Sillect Avenue, Bakersfield, California 93308 805/327-9671 August 24, 1988 Honorable Donald Ratty,. Chairman Bakersfield City Council Finance Committee 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Councilman Ratty: At this time, I would like to thank ~you'for the opportunity. on August 17, 1988 to discuss and share with you ~my concerns relative to the technical integrity of ~the hundreds of under- ground miles of cable system that we operate in Bakersfield. As I had indicated at the meeting, my goal is to provide the people of Bakersfield with the most dependable and technically sound cable television service that is possible. I appreciated the opportunity to relate my concerns verbally to-yOu and the Committee, but I believe a walkout, visUally showing~ the.difference between the technical integrity of above groundversus beloW. ground, would have been a more vivid representation"of why Warner pursued the more expensive technique'of undergroundso as. to minimize the chances of a Bakersfield resident not getting a quality and dependable service when connected to Warner~ Cable. We will continue to review new produCts and.techniques, as they become known to us and invite the CitY.'s engineering department to share in this pursuit of utilizing a technique that would allow us to go below ground and no% compromise the service to'our, customers.~ I have discussed Wednesday's m~eting with Larry Greenberg, 'informing him of the ideas that were brought out and how we might approach meeting our concerns of technical integrity and yours'involving the esthetics of our construction practices. We are currently in the process of formulating our resolution to this issue. A resolution that will incorporate the ideas expressed Wednesday, and one .that I'm sure will allow both of uS to move on to new business. August 24, 1988 Again, I would like to thank you for the meeting Wednesday and for the open-mindedness that the Committee expressed 'to me. ~n~ere~ Plant Manager KO:lh' cc: Councilman James Childs Councilman Kevin McDermott ~---j~h~--S~in~i-Cif~-~-f-B~-f-i~el-d,- = .............. -~_~ Ed Schultz, Bakersfield City Engineer Larry Greenberg, Warner Cable Cox Cable Bakersfield A Subsidiary of 820 22nd Street Cox Communications; Inc: Bakersfield, CA 93301 Cox Cable October 3, 1988. Bakersfield Mr. E. W. Schulz Public Works Manager City of Bakersfield 1500 Truxtun Ave. Bakersfield, CA 93302. Dear Ed: I am in receipt of the proposed ordinance on cable television regulations. At first blush it appears to be reasonable and well thought out. However, 'I thought it necessary to have our corporate counsel review the proposal, and as such have sent the ordinance back to our Atlanta office for review. There should be no reason that a formal response cannot be on your ,desk by October 12th. Once again thank you for your interest. Sincerely, V~PresidenltY~ad General Manager " CITY MANAGER'S OFFICE Warner Cable Communications Inc. 3600 North Sillect Avenue, Bakersfield, California 93308 805/327-9671 August 24, 1988 Honorable Donald Ratty, Chairman Bakersfield City Council Finance. Committee 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Councilman Ratty: At this time, I would like to thank'you~for the opportunity on August 17, 1988 to discuss and share with you my concerns relative to the technical integrity of ~the hundreds of under- ground miles of cable system that we operate in Bakersfield. As I had indicated at the meeting, my goal is to provide the people of Bakersfield with the most dependable and technically sound cable television service that is possible. I appreciated the opportunity to relate my concerns verbally tO'you'and the Committee, but I believe a walkout, visually showing the difference between the technical integrity of above groundversus below ground, would have been a more vivid representation-of why Warner pursued the more expensive techniqUe'of~underground so as to minimize the chances of a Bakersfield resident not getting a quality and dependable service when connected to Warner~ Cable. We will continue to review new produCts and techniques, as they become known to us and invite the CitY's engineering department to .share in this pursuit of utilizing a technique that would allow us to go below ground and not compromise the service to our cuStomers. I have discussed Wednesday's m~eting with Larry Greenberg, informing him of the ideas that were brought out and how we might approach meeting our concerns of technical integrity and yours inVolving the esthetics of our construction practices. We are currently in the process of-formulating our resolution to this issue. A resolution that~will incorporate the ideas expressed Wednesday, and one.that I'm sure will allow both of uS to move on to new business. A~gust 24, 1988 Again, I would like to thank you for the meeting Wednesday and for the open-mindedneSs that the Committee expressed to me. ~n~er e~/ ' . Plant Manager 'KO:lh cc: Councilman James Childs Councilman Kevin McDermott John Stinson, City of Bakersfield Ed Schultz, Bakersfield City Engineer Larry Greenberg, Warner Cable MEMORANDUM August 23, 1988 TO: Budget and Finance Committee FROM: Arthur J. Saalfield City Attorney SUBJECT: Cable TV Regulation - Boxes Section 9 of Ordinance No. 2518 New Series, the ordi- nance awarding Warner Cable its franchise, and Section 9 of the Cox Cable Franchise Ordinance (Ordinance No. 1552 New Series, amended by Ordinance 2939 New Series) specify the right of the City to require the cable TV companies to conform to reasonable rules'and regulations adopted by the City Council and to establish rules and regulations governing technical performance of the sys- tem and operational practices, provided such rules and regulations are not in conflict with state or federal regulations. Prior to adopting such rules or regulations, Council,. either directly or through its administrative personnel, is required to consult with the cable TV companies. Unless Warner agrees in writing to such rules and. regulations, the Council must give Warner 30-days written notice of a public hearing on such rules and regulations and, at the conclusion of such hearing, must make a finding that the public interest, convenience and necessity requires specific rules and regulations. (The Cox Cable ordinance does not require such a hearing.) Attached hereto is a draft rule and regulation addressing pedestal boxes. If it appears.to adequately address the Committee's concerns, the Committee may wish to report back to the Council requesting that Council direct staff to consult with both Warner and Cox Cable as to such rule and regulation and, if Warner Cable is unwilling to agree in writing to such rule and regula- tion, to direct staff to schedule a hearing before the Council on the matter and to give both cable companies at least 30-days notice of such hearing. Also attached is an amendment to Sections 16.32.060 and 16.32.080 of the Bakersfield Municipal Code addressing both the pedestal issue and access to open trenches during subdivision ~ of property. The hearing referenced above should also concern these proposed amendments to our subdivision ordinance and both cable companies and the B.I.A. so advised. 4M.BF.1 cc: J. Dale Hawley Mary Strenn Ed Schulz CABLE TELEVISION RULE AND REGULATION NO. 88-1 SUBJECT: Taps 1. Ail taps shall be located in vaults at or below the level of the adjacent grade; provided, however, principal trans- mission amplifiers are not to be considered taps for purposes hereof and may be located above ground. 2. All taps located within pedestals as of the date of adoption of this Rule and Regulation shall, except as provided below, be relocated to a below-grade vault within 90 days of the date of Council adoption of this Rule and Regulation. 3. Notwithstanding 2'., above, any tap located in such pedestal may remain above-grade if consent thereto is signed by the owner of the lot upon which such tap is located and by the owners of the lot or lots adjacent thereto on the same side of the street. Adopted by the Council of the City of Bakersfield pur- suant to its authority under Sections 6 and 9 of the Warner Cable Franchise Ordinance (Ordinance No. 2518 New Series) and Sections 6 and 9 of the Cox Cable Franchise Ordinance (Ordinance No. 1552 New Series, as amended by Ordinance No. 2939 New Series) this day of , 1988. City Clerk AJS:sdf 4 M.BF.2 08/24/88 ORDINANCE NO. NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD AMENDING SECTIONS 16.32.060 B.6. AND 16.32.080 D.6. OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO REQUIRED CABLE TELEVISION SERVICES TO ALL LOTS IN SUBDIVI- SIONS FOR WHICH A FINAL TRACT OR PARCEL MAP IS REQUIRED. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Section 16.32.060 B.6. of the Bakersfield Municipal Code is hereby amended to read as follows: 16.32.060 Improvements - In subdivisions for which final tract map is required. B. The minimum improvements which the subdivider makes or agrees to make prior to acceptance and approval of the final tract map by the City Council shall be: 6. Services from public utilities, including cable television, and services from sanitary sewers shall be made avail- able for each lot, and in such manner as will eliminate the neces- sity for disturbing the street pavement, gutter, culvert and curb, when service connections are made. All interested cable television companies shall, without charge, be given reasonable access to utility trenches while such trenches are initially open in order that they may make their services available to all lots con- currently. If more than one cable television company elects to utilize trenches within any subdivision, no such company shall be charged more than any other cable television company for the use of such trench and in no event shall the total charged such companies exceed their reasonable and proportionate share of trenching costs. Cable television companies' principal transmission ampli- fiers may be located above ground; however, all "taps" shall be located in vaults at or below the level of the adjacent grade. The' requirement for installation of cable television service to any industrial tract may be waived if, based upon a waiver requested by a subdivider supported with proof of satisfaction of the following conditions, the planning commission finds that the omission of such requirement will not create a break in cable tel- evision service (to properties in the vicinity of the tract map) or, even if such omission would result in a break in cable televi- sion service, the closest available connection to existing cable television facilities is more than five hundred feet from the clo- sest point in the tract map to the point of sUch connection (measured along existing or proposed utility easements). SECTION 2. Section 16.32.080 D.6. of the Bakersfield Municipal Code is hereby amended to read as follows: 16.32.080 Improvements - In subdivisions for whiCh parcel map is required. D. The following improvements or any of them may be required by the advisory agency and if so required, shall be fur- nished at the subdivider's expense: 6. Services from public utilities, including cable television, and services from sanitary sewers available for each lot, and in such manner as will eliminate the necessity for disturbing the street pavement, gutter, culvert and curb, when service connections are made. All interested cable television companies shall, without charge, be given reasonable access to utility trenches while such trenches are initially open in order that they may make their services available to all lots con- currently. If more than one cable television company elects to utilize trenches within any subdivision, no such company shall be charged more than any other cable television company for the use of such trench and in no event shall the total charged such companies exceed their reasonable and proportionate share of trenching costs. Cable television companies' principal transmission ampli- fiers may be located above ground; however, all "taps" shall be located in vaults at or below ground level. The requirement for installation of cable television service to any industrial tract may be waived if, based upon a waiver requested by a subdivider supported with proof of satisfaction of the following conditions, the planning commission finds that the omission of such require- ment will not create a break in cable television service (to prop- erties in the vicinity of the parcel map) or, even if such omission would result in a break in cable television service, the closest available connection to existing cable television facili- ties is more than five hundred feet from the closest point in the tract map to the point of such connection (measured along existing or proposed utility easements).· SECTION 3. This ordinance shall be posted in accordance with.the City charter provisions and shall become effective thirty (30) days from and after the date of its passage. o0o I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED MAYOR of the City of Bakersfield APPROVED as to form: CITY ATTORNEY of the City of Bakersfield LCM/meg 00RD 5 CABLETVl 8/25/88 - 3 - JUL  Cl~ MANAGER'S OFFICE Worner Coble Communicolions Inc. 3600 North Sillect Avenue, Bakersfield, California 93308 8051327-9671 July 14, 1988 Mr. Dale Hawley, City Manager City of Bakersfield 1501 Truxtun Avenue . Bakersfield, CA 93301 Dear Mr. Hawley: As we enter the final stages of our $16 million upgrade project at Warner Cable's Bakersfield system, we are pleased to provide you with this advanced notice of our 1988 permanent channel lineup. Like you, our customers have waited patiently for completion of this phase of the project. Warner Cable customers were pooled many times to determine in what order they want their channels to be. We consulted with the local network affiliates as well, in a series of discussions seeking their desires on channel location. A scientific study was conducted with them to confirm results. As simple and logical as this ordering of cable channels looks, the process of its implementation has been long and arduous. We can now present our final channel lineup to our customers effective August 1, 1988, or no later than August 30. Sincerely, ~ / .~awrence R. Greenberg// //General Manager LRG:lh Enclosure WARNER CABLE CHANNEL LINEUP Cable Cable Channel Program Channel Program 2 USA Network 37 Barker Channel - PPV 3 KGET - Ch. 17 38 Viewer's Choice 4 ESPN *39 Request (New - 1988) 5 Prime Ticket/Movie Time' 40 Event PPV 6 KERO - Ch. 23 41 Reserved - PPV 7 Nashville Network 42 Reserved - Hold 8 KBAK - Ch~. 29 *43 Self Promo/Classified 9 CNN News 44 Reservied - Hold 10 KCET - Ch. 28 (PBS) L.A. *45 KDOB 11 KTTV - Ch. 11 L.A. 46 Reserved - Hold 12 KCBS - Ch. 2 L.A. 47 Cable Value Network 13 M-TV 48 Reserved - Hold 14 KNBC - Ch. 4 L.A. 49 Reserved - Hold 15 KTLA - Ch. 5 L.A. 50 TBN 16 FNN/BET 5t· C-Span 17 KABC - Ch. 7 L.A. 52 Reserved - Hold 18 Lifetime *53 Educational Access 19 KHJ - Ch. 9 L.A. 20 CNN Headline News 21 KFTV - Ch. 21 (Spanish) 22 Weather Channel 23 KCOP - Ch. 13 L.A. 24 TNT - Turner Network Television 25 VH-1 26 KMPH - Ch. 26 Fresno/Visalia 27 Nickelodeon 28 CBN 29 Arts & Entertainment 30 Discovery Channel/The Learning channel 31 HOME BOX OFFICE 32 SHOWTIME *New (August-October) 33 DISNEY CHANNEL 34 CINEMAX 35 THE MOVIE CHANNEL 36 PLAYBOYCHANNEL Warner Cable Communications Inc; 3600 North $illec! Avenue, Bakersfield, California 93308 805/327-9671 July 12, 1988 Honorable Donald K. Ratty, Chairman Budget and Finance Committee Bakersfield City Council 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Councilman Ratty: At the Budget and Finance Committee meeting of June 2, 1988, two issues affecting Warner Cable were discussed. The first was a proposal to require developers to make available open trenches to both cable operators, and the second was a discussion of desir- ability of flush-mounted valuts as opposed to pedestals. Regarding the joint trench proposal, Warner Cable agrees that the joint trench should be available to both cable operators. Currently the developers charge the. cable operators for access to the trench. We do not question the developers' right to require this payment, but we do need the ability to decline to make the payment if the charge is excessive. Where a charge is excessive, Warner Cable would rebore lines at a much lower cost, relying upon rights under the franchise and the Cable Act. Warner Cable is willing to work with the City to develop a solution to trenching problems, but we ask the City to keep in mind that Warner is entitled to use public utility easements and highway rights-of-way if the developer's trench is unavailable either because the cost of access is excessive, or for other reasons such as technical or delay in delivery of materials. Regarding pedestals, Warner Cable feels very strongly that we must continue to use pedestals to store our electronic equipment. Our engineers have studied pedestals versus flush-mounted vaults extensively and have concluded that serious technical problems occur in the flush~mounted vaults because of water ingress. The technical problems result in a poorer picture and increased outages, Honorable Donald K. Ratty - 2 - July 12, 1988 all of which enure to the detriment of cable subscribers. Our business is based upon providing quality service to our customers, and we cannot jeopardize our relationship with our customers by agreeing to do some- thing that we know is technically unsound. Many customers have expressed appreciation of our improved picture quality since the rebuild~ Much of this improvement is attributable to the elimination of corroded facilities. As you atp aware, Warner Cable al. so has to meet technical ~l~PciFica- tions set forth by the Federal Communications Commission. Undergroundl vaults would seriously impede our ability to meet these specifications. Having made these points, however, we add that we want to work with you on the pedestal issue and address your concerns regarding the aesthetics of the pedestals. Warner Cable values its good relationship with the City of Bakersfield, and we want to do what we can to improve the quality of life in the community. We look forward to working with you on these issues. Sincerely~ ...... ~ / ~awrence R. Gree~e~g [~General Manager ~ LRG:lh Enclosures:(1) Page Three, Ordinance No. 2518 (2) Federal Communications Commission Technical Standards cc: Councilman James Childs, Member, Budget and Finance Committee, W/Enclosure Councilman Kevin McDermott, Member, Budget and Finance Committee, W/Enclosure Federal COmmunications COmmission Technical.Standards January 23, 1986 76.605(a)(3) 85-587 (Correction)* FEDERAL COMMUNICATIONS COMMISSION RULES - PART 76 (3) The aural center frequency of the aural carrier ~,1w~14 must be 4.5 MHz +~- *5 kHzabove the frequency of the visual carrier. (4) The visual signal level, across a termiuating impedance which correctly matches the internal impedance of the cable system as viewed from the subscriber terminals, shall be not less than the following appropriate value: (Revised 77-276, 6/6/77) Internal impedance: 75 ohms. 300 ohms. Visual signal level: l millivolt. 2 millivolts. (At other impedance values, the minimum visual signal level shall beV'0.0133 Z millivolts, where Z is the appropriate impedance value. ) (5) The visual signal level on each channel shall not var), more than 12 decibels within any 24-hour period, and shall be maintained within: (Revised 72-825. March 31. 1972) (i) 3 decibels of the visual signal level of any visual car- rier within 6 MHz nominal frequency separation, and (ii) 12 decibels of the visual signal level o0 any other channel, and (iii) A maximum level such that signal tlegradarion due to overload in the subscriber's receiver does not occur. ~'ccnq3 and t7 d~ibcla bclo~eh~~e~l siM- l.i.,.d I~el ween-7-.n,I- 1.7--deeil~el~-I~etew-t h~ ~.~,,~,'m I ed-vi.u.t-- The peak-~o-peak variation in visual signaI level caused undesired iow frequency disturbances (hum or repetitive ~ransients) generated within the system, or by inadequate low frequency respouse, shall no~ exceed 5 percent of ~he visual signal level. FCC/76- 66 - 21 - RULES SERVICE CO. COPYRIGHT, 1986 WASHINGTON, D. C. 76.605(a)(7) January 23, 1986 85-587 FEDERAL COMMUNICATIONS COMMISSION RULES - PART 7(5 (4~ (7) The amplitude characteristic shall be within a range of +_2 -- decibels from 0.75 to 5.0 MHz above the lower boundary frequency of the cable television channel, referenced to the average of the highest and lowest amplitudes within these frequency boundaries. (aa} (8__~) The ratio of visual signal level to system noise, and of visual signal level to any undesired co-channel television signal operating on proper offset assignment, shall be not less than 36 decibels. This requirement is applicable to: (i) Each signal which is delivered by a cable television system to subscribers within the predicted Grade B contour for that signal, or (Revised 77-276, 6/6/77) (ii) Each signal which is first picked up within its pre- dicted Grade B contour, or (Revised 77-276, 6/6/77) (iii) Each signal that is first received by the cable television system by direct video feed from a TV broadcast station oralow power TV station. (Revised 82-107, 6/17/82) (-t-0-) (9__~) The ratio of visual signal level to thc rms a~nplitudc of anv coherent disturbances such as intermodulation products or discrete-frequency interfering signals not operating on proper offset assignments shall not be less than 46 decibels. (-14-) (10) The terminal isolation provided each sut~scriber shall be not less than 18 decibels, but in any event, shall be suf- ficient to prevent reflections caused by open-circuited subscriber terminals from producing visible picture impair- ments at any other subscriber terminal. (-t-2_-) (11) As an exception to the general provision requiring measure- ments to be made at subscriber terminals, and withot, t re- gard to the class of cable television channel involved, radia- tion from a cable television system shall be measured in accordance with procedures outlined in §76.609(h), and shall be limited as follows: Radiation limit Distance Frequencies (microvolts/ (feet) meter) Up to and including 54 MHz - - 15 100 Over 54 up to and including 216 MHz - - - ...... 20 10 Over 216 MHz ....... 15 100 Fcc/76- 65 - 72 - RULES SERVICE CO. COPYRIGHT, 1986 WASHINGTON, D. C. July 20, 1987 76.6{}5(b) 87-187 FEDERAL COMMUNICATIONS COMMISSION I{ULES - PART 76 (b) Cable television systems distributing signals by using multiple cable techniques or specialized receiving devices, and which, because of their basic design, cannot comply with one or more of the technical standards set forth in paragraph (a) of this section, may be permitted to operate provided that an adequate showing is made which establishes that the public interest is benefited. In such instances the Commission may-prescribe special technical requirements to ensure tlmt subscribers to such cable television systems are provided with a good quality of service. (Revised 77-276, 6/6/77) NOTE.--The requirements of §§76.605(a)(1) through 76. 605(a)(10) do not apply directly to cable systems. These rule sections or less stringent versions of them may be used as standards by state or local regulatory authorities. No technical parameter in excess of the above rule sections may be required. (Added 85-587, 1/23/86) NOTE.--The requirements of this section shall not apply to devices subject to the provisions of §§15.601 through 15.626. 76. 609 MEASUREMENTS.' (a) Measurements made to demonstrate conformity with tile per- formance requirements set forth in §§76.601 and 76.605 shall be made under conditions which reflect system performance during normal opera- tions, including the effect of any microwave relay operated in the Cable Television Relay (CAR) Service intervening between pick-up antenna' and the cable distribution network. A,nplifiers shall be operated at normal gains, either by the insertion of appropriate signals or by manual adjustment. Special signals inserted in a cable television ch~,nnel l'or measurement purposes should be operated at levels approximating those used for normal operation. Pilot tones, auxiliary or snbstit~,tc signals. and nontelevision signals normally carried on the cable television system should be operated at nor~nal levels to tile extent possible. Some exem- plary, but not mm~datory, measurement procedures are set forth in this section. [Revised 72- 825, 3/31/72) [Next Page is No. 75] FCC/76-72 - 73 - RULES SERV[CE CO. COPYRIGllT, 1987 W,.\SHINGTON. D.C. March 31, 1972 76.609(b) 72 - 108 FEDERAL COMMUNICATIONS COMMISSION RULES - PART 76 (b) When it may be necessary to remove the television signal nor- mally carried on a cable television channel in order to facilitate a per- formance measurement, it will be permissible to disconnect the an- tenna which seryes the channel under measurement and to substitute therefor a matching resistance termination. Other antennas and inputs should remain connected and normal signal levels should be maintained on other channels. (c) As may be necessary to ensure satisfactory service to a sub- scriber, tile Commission may require additional tests to demonstrate system performance or may specify the use of different test procedures. (d) The frequency response of a cable television channel may be determined by one of the following methods, as appropriate: (1) By using ::t sxvept frtvquency or a manually variable signal generator at the sending end and a calibrated attenuator and frequency-selective voltmeter at the subscriber terminal; or (2) By using a multiburst generator and modulator at the sending end and a demodulator and oscilloscope dis- play at the subscriber terminal. (e) System noise may be measured using a frequency-selective voltmeter (field strength meter)which has been suitably calibrated to indicate rms noise or average power level and which has a known bandwidth. With the system operating at normal level and with a prop- erIy matched resistive termination substituted for the antenna, noise power indications at the subscriber terminal are taken in successive increments of frequency equal to tile bandwidth ,it' the frequency-selec- tive voltmeter, summing the power indications to obtain the total noise power present over a 4 MHz band centered within tile cable tele- vision.channel. If it is established that the noise level is constant within this bandwidth, a singie measurement may be taken xvhich is corrected by an appropriate factor representing tile ratio of 4 MHz to the aoise bandwidth of the frequency-selective voltmeter. If an ampli- fier is inserted between the frequency -selective w)Itmeter anti the subscriber terminal in order to facilitate this measurement, it should have a bandwidth of at least 4 MHz and appropriate corrections must be made to account for its gain and noise figure. Alternatively, mea- surements made in accordance with tile NCTA standard on noike mea- surement (NCTA Standard 005-0669) may be employed. FCC/76-29 - 75 - RULES SERVICE CO. COPYRIGHT, 1977. WASHINGTON, D.C. 76. 609(0 December 17, 1984 84-516 FEDERAL COMMUNICATIONS COMMISSION RULES - PART 76 (f) The emplitude of discrete frequency interfering signals within a cable television channel may be determined with either a spectrum analyzer or with a frequency-selective voltmeter (field strength meter), which instruments have been calibrated for adequate accuracy. [f calibration accuracy is in doubt, measurements mav be referenced to a calibrated signal generator, or a calibrated variable attenuator, sub- stituted at the point of measurement. [f an amplifier is used between the subscriber terminal and the measuring instrument, appropriate cor- rections must be made ~o accoun~ for i~s gain. (Original 72-108, March 3 l, 1972) (g) The terminal isolation between any two terminals in ~he system may be measured by applying a signal of kno~vn amplitude ~o one a~d measuring the amplitude of ~ha[ signal a~ ~he other ~erminal. The fre- quency of ~hc signal should be close to the midfrequency of ~l~e channel being tested. Annual measurements of terminal isolation ave not required when either (1) the manufacturer's specifications for coupler directivity or (2) laboratory measurements on a representative sample of the coupler~. plus an allowance for the attenuation of drop cables, indicate that the requirements of ~76.605(a)(11) are met. (Revised 76-22, 3/12/76) (h) Measurements to de~erminc ~he field strength of radio ~requencv energy radia[ed by cable television systems shall be made in accordanc~ wi~h s~andard engineering procedures. Measurements made on frequen- cies above 25 MHz shah include ~he following: (Original 72-~08, March 3 I, 1972) (~) A field s~rength me,er of adequate accuracy using a horizontal dipole antenna .~nall be cmp[oye~. (Original 72-108, March 31, 1972) (2) Field strength shah be expressed in terms of ~he rms value of synchronizing peak for each cable television channel ~or which radiation can be measured. (Original 72-108, March 31, t972) (3) P~.- The cesonant hail' wave dipole antenna shall be placed 3 meter:~ from anu :)os~tioneri ~irectly below the system components and ar ; ~neters above ~round. iYhere such placement ;'~suits in .~ 5'~'[~Ffion or' less than 3 meters between the center, of the dipole antenna and the system components, or' less than 3 meters between the dipole and ground level, the dipole shall be repositioned to provide a aepmmtion .Cf-i0-~ 3 ~neters from the system components at a hei~i~t of 3 meters m' more above g'round. FCC/76- 59 - 76'- RULES SERVICE CO. COPYRIGllT, 1985 WASHINGTON, D.C. August 19, 1985 (85-333)1 76.609(h)(4) July 1, 1990 (85,333)~ FEDERAL COMMUNICATIONS COMMISSION RULES - PART 76 (4) The horizontal dipole antenna shall be rotated about a vertical axis and the maximum meter reading shall be used. (5) Measurements shall be made where other conductors are i0 or more feet away from the measuring antenna. Ii) Annual measurements of frequency stability of set top converters, when such converters are supplied by the cable television operator, are not required when either of the following indicates that the requirements of §76.605(a)(2) are met: (1) manufacturer's specifications based on a representative sample of the converters, or (2) laboratory tests per- formed by or for the cable television system operator on a representa- tive sample of the converters. Proof of .')erformance tests for frequency stability will not be required for converters ordered from the manu- facturer prior to September 6, 1977. (Added 77-276, 6/6/77) EDITOR'S NOTE: Sections 76. 610 and 76.~12 ute revised in their entirety as of August 19. 1985. Section 76.611 is removed effective July 19. 1985 and a new §76.611 ~s added effective July I. 1990. The previous wording is not shown. 176.610 OPERATION IN THE FREQUENCY BANDS 108-137 AND 225-400 MHz--SCOPE OF APPLICATION. The provisions of §§76.611 (effective July 1, 1990), 76.612, 76.613, 76.614 and 76.615 are applicable to all cable television systems trans- mitting carriers or other signal components carried at an average power level equal to or greater than 10-~ watts across a 25 kHz ban~t:vidth in any 160 microsecond period, at any point in the cable distribution system in the frequency bands 108-137 and 225-,I00 MHz for any pul'- pose. For grandfathered systems, refer to ]§76.618 and 76.619. 1NOTE 1.--See the provisions of §76.616 for cable operation near certain aeronautical and marine emergency radio frequencies. ~NOTE 2.--Until January 1, 1990, the band 136-137 MHz is allocated as an alternative allocation to the space operation, meteorological-snteilite service and the space research service on a primary basis. After January 1, 1990, the space service will become secondary to aeronautical mobile service radio. Until January 1, 1990, the band 136 to 137 MHz is ex- cluded from the rule sections regarding protection of aeronautical frequencies. ~76.611 CABLE TELEVISION BASIC SIGNAL LEAKAGE PERFORMANCE CRITERIA. ~(a) No cable television system shall commence or provide service in the frequency bands 108-137 and 225-400 MHz unless such system is in compliance with one of the following cable television basic signal leakage performance criteria: FCC/76-63 - 77- RULES SERVICE CO. COPYRIGHT, 1985 WA$ItlNGTON, D.C. City, the rights of the Grantee as to its operations in all portions of the City shall, from and after the effective date hereof, be governed by this franchise rather than the franchise heretofore granted by the County of Kern. (c) In the exercise of its rights under the franchise hereby granted, the Grantee may do all things reasonably necessary to the installation and operation of its CATV Systeh~ not prohi- bited hereunder or by law, including but not limited to the fol lowing: 1. To erect, install, construct, replace, repair, reconstruct, maintain and retain; either on supporting structures or underground: a. television antenna, supporting structures and appurtenances in such streets or other.public places as may b.e authorized by the Oirector''°f Public Works., and ' b. poles, wires, cable, coaxial cable, conductors, ducts, conduit, vaults, manholes, amplifiers, appliances, attachments, and other property as may be necessary and appurtenant to the CATV System, within, under, along and across streets and other areas within' the franchise area designated, herein and, in addition, so to use, operate and provide similar properties rented or leased from other persons, firms or corporations for such purpose; and Z. To maintain and operate said franchise properties for the collection, transmission, amplification and distri- bution of electrical or radiant energy for television and r~dio reception; and ' 3. To provide, use and operate similar properties ~'or such purpose; and 4. lo engage in the business of the distribution and sale of such energy to subscribers within the city limits BUILDINGOF INDUSTRY KERN COUNTY ASSOCIATION 5405 STOCKDALE HIGHWAY, SUITE 112A BAKERSFIELD, CA 93309-2501 --:-- 8051832-3577 May 31, 1988 Mr. Ed Schulz ~'~~.~_~~ Acting Public Works Manager City of Bakersfield L~ ClTY M~J~AGE~S OFFICE 1501Truxtun Avenue Bakersfield, CA 93301 Dear. Ed' Thank you very much for soliciting comments from the BIA on behalf of the members of the Council's Budget & Finance subcommittee concerning cable T.V. access to subdivisions. Developer members whom I have contacted resoundingly respond to the proposal requiring the subdivider to permit more than one cable company into the trench with questions, which they hope will be answered before the subcommittee forms its recommendations. Their questions are as follows: 1. Wi1] the addition of another party into the joint trench adjust the split of trenching costs to the detriment of any other uti]ity or to the subdivider? 2. How much time wi]1 the the cable companies be given to begin on-site work? How will the subdivider be notified (and the City) that a cable company has passed on access? Both Warner and Cox are members of the BIA, and obviously we support their desire to resolve an, issue important to their growth and pros- perity. We also commend the subcommittee and City staff in their - - efforts to address problems being created for City residents, subdividers and the cable companies. It's important that in shaping the solution to the cable compahies' concern, that we do not create new ones. The Association recommends that City staff be directed to contact the other utilities who are in the joint trench for their input and position on the split of trenching costs and other cities to ascertain their procedures for monitoring time for cable companies to respond to access opportunity. We stand ready to provide additiona! input, and support all efforts to work out a viable policy within the subcommittee framework. Mr. Ed Schulz May 31, 1988 Page Two In light of your urgent need for response, I ask that you provide the subcommittee"w]~h BIA's comments. -,. ~,-~ Sincerely, Susan C. Rohan Executive Vice President SCR'bs ~-~c c-:--~C it~ -Man-a-ge rS-~Da-l-e-H~l~y Terry McNally, Cox Cable Larry Greenberg, Warner Cable I MEMORANDUM May 25, 1988 TO: Ken Pulskamp, Assistant City Manager FROM: Arthur J. Saalfield, City Attorne~ SUBJECT: WHETHER CITY HAS LEGAL BASIS FOR REQIFIRING CABLE TELEVISION COMPANIES TO PLACE THEIR LINES AND PEDESTAL BOXES UNDERGROUND. '' The issue, raised in your memorandum of May 19, 1988, has essen- tially four subparts. 1. May the City require undergrounding of cable television lines in new development? Answer: The City requires that such lines be placed underground. (BMC 16.32.060 (11)) 2. May the City require that such lines be undergrounded in areas of existing development? Answer: The City may require that such lines be placed underground, utilizing the Underground Utility District procedures of Chapter 12.32 of the Bakersfield Municipal Code. All above-ground utilities within such district, not just cable television lines, poles, etc., would have to be similarly treated. 3. May the City require the undergrounding of pedestal box equip- ment in new development? Answer: BMC Section 16.32.060 (11) requires that, "All utility distribution facilities, including cable television, must be placed underground." Assuming that the equipment in pedestal boxes is a "distribution facility,, we can require that such equipment be placed underground in the process of subdivision development. Were such assumption to be erroneous, an amendment to § 16.32.060 (11) could require that such equipment be placed underground. Memo to Ken Pulskamp Page 2 4. May the City require the undergrounding of pedestal box equip- ment in areas of existing development? Answer: Within an established or newly formed underground district (Chapter 12.32), we can require that equipment now placed in pedestals be placed under- ground. However, it is extremely doubtful that such a district could be formed for the sole pur- pose of requiring the undergrounding of such equipment. Section 16.32.060 (11) applies only to land being subdivided and has no application to pedestal boxes in developed neighborhoods. The Warner Cable Franchise Ordinance (No. 2518 New Series) (the "Franchise Ordinance") grants to Warner the right to erect, maintain, etc., "either on supporting structures or underground ... vaults, ... amplifiers, appliances, ... and other property as may be necessary and appurtenant ..." Whether pedestal boxes are "necessary" may well be a contested issue. (Section 2.(c)l.b.) Regardless, the City reserved the right (Section 6 of the Franchise Ordinance) to later adopt ordinances, rules and regulations in exercise of its police power governing the construction, maintenance and operation of Warner's plants, works or equipment, and Warner agreed, by accep- tance of its franchise, to comply with such ordinances, rules and regulations. (Charter Section 121 (a)) Such regulations are also addressed in Section 9 of the Franchise Ordinance pursuant to which the Council may establish "reasonable rules and regulations governing ... the operational practices of the Grantee," following consultation with the Grantee, a finding of public interest, convenience and necessity, 30-days' notice of a public hearing, and such a hearing. Following the procedure outlined above, the Council may, if it can make the required findings, adopt an ordinance or regulation requiring the existing pedestal boxes be removed and the equip- ment they contain be placed underground. AJS/meg M.PULSK2 cc: Ed Schulz Trudy Thornton TRAFFIC MEMORANDUM MEMO TO: ED SCHULZ, PUBLIC WORKS DIRECTOR FROM: STEPHEN L. WALKER, TRAFFIC ENGINEER~,~ SUBJECT: "PHONE BOXES" ON LAURELGLEN BLVD. SIDEWALK %COUNCIL WARD: 4 8~.~equest ~from Courcilman Ratty ~v~a John Stinson~'AsSt~?t- the ~l~y ~anager, was ~eceived 'C,r,'A~ril' 5'~ ..... Traffic Er, gir, e~Zlr,~~ wa~ ~¥~Auested to loc, k at "phor, e compar,~" bc, xes ir, the sidewalk area )?~]O~>~E~,~mI gier,~ BoulevaAd. 7.'~T~ "Spl i6e~]B~xes ammarem~ ly beloW, in -?.=-~.~street .... ~,~Both were about 5 feet from the curb and near. the 'wall ~i?~, ?iTT~Iomg~.~he street.' ~ The boxes were i'~m Iime With trees ~amd t'ree wells adjacent to the wail. ' '~.t./.Lpedestrians usin~ the remair, dep of the sidewalk.' ~They'~,-, r;°t pose a problem to bicyelist~ ~in~e bike~ are to, be ridden ir~ the stpeet pep the Vehicle Code. '~..~.-.~'-~,'Be~ause-of the short: height of the boxes. ~nere may be'a '7'?}~;~th' peae-~t-~Jians- ,j~a-ware Of"the 'ob~tr,~ct ~on and ......... tripping ~ ove~ the box. While ir~stallir~ a tail splice box of 36 inches or ]_.~allep .would alleviate that problem to the pedestrian~ it wc, u!d ;?.i~--'~?~.~)a~evate .... the ppoblem to the motopist ard possibly block'.his .... :t~:'~tL-J"'~'~"~-:'~'~'~e:';il'~"'~write tO the cable Company to request cc: Scott Mar, zer~ Risk Mar, ager Fred Kloepper, Asst. P. W. Director CITY COUNCIL REFERRAL MEETING OF: OCTOBER 12, 1988 REFERRED TO: BUDGET AND FINANCE - JOHN STINSON ITEM: CONSENT CALENDAR 8. i. Agreement with Bakersfield Credit Control Service for the collec- tion of the City's unpaid accounts. MOTION TO REFER TO BUDGET AND FINANCE. ACTION TAKEN BY COUNCIL: APPROVED WITH ALL AYES. BACKUP MATERIAL ATTACHED: YES DATE FORWARDED BY CITY CLERK: OCTOBER 13, 1988 STATUS: REFERRAL14 BUDGET AND FINANCE COMMITTEE REPORT NO. 48-88 December 14, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: AGREEMENT WITH BAKERSFIELD CREDIT CONTROL SERVICE FOR THE COLLECTION OF THE CITY'S UNPAID ACCOUNTS On October 12, 1988 the Council referred the Agreement with Bakersfield Credit Control Service for the collection of the city's unpaid accounts to the Budget and Finance Committee for review. The Committee has reviewed the proposed agreement with staff from the City Attorney's office and has met with representatives of Herbert P. Sears Co.,Inc. who had questions regarding the proposed agreement. Staff explained to the Committee and to representatives for the H.P. Sears Company the process for awarding the bid. The Committee believes that staff has followed all appropriate proceedures with regard to the award of the bid and therefore the Committee recommends that the Mayor be authorized to execute the Agreement with'Bakersfield Credit Control Service for the collection of the city's unpaid accounts. Respectfully Submitted, Councilmember Donald K. Ratty Councilmember James Childs Councilmember Kevin McDermott . REDIT e ENTER the~omplete'~redit facility OFFICES '~ HERBERT P. SEARS CO. INC./COLLECTION SERVICE DIVISION OF ~ THE MEDICAL DENTAL BUREAU / MEDICAL CREDITS DIVISION · k MERCHANTS ASSOCIATION OF BAKERSFIELD INC./CREDIT REPORTING DIVISION NOVEMBER 9, ],988 CITY OE!~AKERSFIELD BUDGET & FINANCE COMMITTEE CITY HALL BAKERSFIELD, CA 9330]. GENTLEMEN AND LADIES: THANK YOU FOR ~HE OPPORTUNITY TO APPEAR AT YOUR MEETING WEDNESDAY, NOVEMBER 2ND, AT THAT MEETING I WAS TOLD ANOTHER AGENCY WOULD PROBABLY GET THE BID OVER US DUE TO THE FACT IT WOULD BE OUR POLICY TO RETURN CLAIMS THAT:NEeDED SMALL CLAIMS ACTIONS FILED AND ANOTHER AGENCY SAID THEY WOULD AND COULD FILE THESE SMALL CLAIMS ACTIONS FOR THE CITY, To SUBSTANTIATE MY CLAIM THAT COLLECTION AGENCIES CANNOT FILE SUIT ON ASSIGNED CLAIMS IN SMALL CLAIMS COURT, WE URGE YOU TO CALL THE CLERK OF THE COURT FOR VERIFICATION OF MY STATEMENT, ENCLOSED ALSO IS A FORM THE SMALL CLAIMS COURT PROVIDES THAT SETS OUT WHO CAN FILE A SMALL CLAIMS COURT SUIT, PLEASE.REFER TO #3 THAT IS HIGHLIGHTED, (THE TWO TECHNICAL EXCEPT- IONS IT REFERS TO ARE A TRUSTEE IN BANKRUPTCY AND THE HOLDER OF A CONDITIONAL SALES CONTRACT,) IT SEEMED ANOTHER REASON FOR US NOT BEING AWARDED THE BID OR A PART OF IT WAS THAT WE WOULD NOT ACCEPT ALL THE DAMAGE CLAIMS FROM THE RISK MANAGEMENT DEPARTMENT, I WAS TOLD ALL WE WANTED TO ACCEPT WERE THE ONES THAT HAD BEEN REDUCED TO JUDGMENT OR ONES WHERE PROMISSORY NOTES HAD BEEN SECURED, AGAIN~ COLLECTION AGENCIES ARE PROHIBITED FROM ACCEPTING SUBROGATED CLAIMS UNLESS ONE OF THOSE TWO CONDITIONS HAS BEEN MET, I,E,, THE ACCOUNT IS IN JUDGMENT FORM OR A PROMISSORY NOTE SIGNED, ENCLOSED IS AN EXCERPT FROM THE COLLECTION AGENCY ACT (628,5-A) THAT CLEARLY STATES FOR US TO ACCEPT THOSE OTHER DAMAGE CLAIMS WOULD BE AN UNLAWFUL ACTIVITY AS IT IS DEEMED TO BE A PRACTICE OF LAW, THIRD, AND LASTLY,I WAS TOLD THERE HAD BEEN SOME LACK OF COMMUNICATION BETWEEN OUR OFFICE AND THAT OF RISK MANAGEMENT, 2000 Eighteenth Street · Bakersfield, /c~f~r:nia · P.O. Box 2 ip Code 93303-2307 · Phone 325-5981 HERBERT P. ~ ~O.,IN~. COLLECTION SERVICE. CITY OF BAKERSFIELD .'~ · BUDGET & FINANCE COMMITTEE NOVEMBER 9, 1988 PAGE 2 WE'.LL TAKE THE BLAME FOR THAT, THE PERSON'ASSIGNED TO HANDLE THE PUBLIC RELATIONS AND LIAISON WORK BETWEEN THE RISK MANAGEMENT DEPARTMENT AND OUR OFFICE WAS .TERMINATED THREE MONTHS AGO, 'THAT PROBLEM NO LONGER EXISTS IN bUR ·COMPANY,· WE'REGRET IT HAPPENED AND OFFER OUR'APOLOGIES AT THIS TIME, WE~ARE VERY DESIROUS TO BE THE AGENCY THE CiTY·CONTINUES TO US.E FOR ITS COLLECTION MATTERS, HOWEVER, WE WILL ONLY OPERATE AS WE HAVE FOR THE PAST SIXTY YEARS AND THAT IS TO ABIDE BY THE VARIOUS LAWS, RULES AND REGULATIONS THAT GOVERN US, IF·ANOTHER ·COLLECTION AGENCY WISHES TO VIOLATE THESELAWS, THAT IS THEIR DECISION,· IT WOULD ALSO BE THE CITY'S DECISION WHETHER TO DO BUSINESS WITH THEM, ONE LAST COMMENT IS, ALTHOUGH OUR BID STATED OUR RATE WOULD.BE INCREASED ON SKIP.S, WE HAVE NOT RAISED THE RATE NOR WOULD WE; PLEASE FEEL FREE TO DELETE THAT'PORTION OF OUR BID, ·ADDITIONALLY, OUR POLICY WOULD BE TO GET cTHE DEBTOR TO SIGN A NOTE ON THE·DUI ACCOUNTS, THUS ALLOWING OUR ATTORNEY TO'FILE SUIT ON THE NOTE SHOULD·THEY DEFAULT' I-N THEIR PAYMENT ARRANGEMENTS, THAT WOULD'CUI' DOWN .S~GNIFICANTLY ON THE NUMBER OF .ACCOUNTS THAT MIGHT HAVE TO BE· RETURNED TO THE CITY FOR IT TO FILE SMALL·CLAiMS COURT ACTIONS, AGAIN~ THANK YOU FOR THE OPPORTUNITY' TO APPEAR BEFORE YOUR COMMITTEE AND THANK YOU FOR Y'OUR TIME' AND KIND CONSIDERATION, · SINCERELY, ERS, MANAGER ENCLs, INFORMATION FOR THE SMALL CLAIMS PLAINTIFF This information sheet is written for the person who sues in the smalt claims court, it explains some of the rules and some general information about the small claims court. It may aisc be helpful for the person who is sued. WHAT IS SMALL CLAIMS. COURT7 Small ctaims court is a special court where disputes are resolved quickly and cheaply. The rules are simpl~,,and informal. The person who sues is the plaintiff. The person who is sued is the defendant. Ir~ small claims court, you m~:y ~$k-a lawyer for advice before you go to court, but you cannot have a lawyer in court. Your claim cannot be for more thar~ ~: !.500.. If you have a claim for more than this amount, you may sue in the regular division of the municipal court or you n"~'.~¥ sue in the small claims court and give up your right to the amount over $1,500. WHO CAN FILE A CLAIM7 I. You must be at least 1E years o/d to file a claim. If be the original owner of the claim. This m{:~z, ns that if the you are not yet 18, you mayaskthe court to appoint a guar- 'claim is sold or transferred, the buyer can~.:~t sue in the dian ad litem. This is a person who will act for you in the ,small claims court. case. The guardian ad litem is usually a parent, relative, or 4. If a corporation flies a claim, an employee, c'!'.~cer, or direc- adult friend, tor must act on its behalf. If the claim is fil.,, "~..~n behalf of 2. A person who sues in small claims court must first make any other business, a regularly employed ,',,. ~on of the a demand. This means that you have asked the defendant business must act on its behalf. A person ~ ":~ 3ppears on to pay, and the defendant has refused. If your claim is for behalf of a corporation or business must n~, . ~ ~'-~. employed possession of rental property, you must ask the defendant or associated solely for the purpose of re: ~senting the ~o pay the rent or move out by serving the defendant with business or corporation in the small claim court. a Three-Day Notice to Pay Rent or Quit. $. Unless you fall within two technical exceptions, you must WHERE CAN YOU FILE YOUR CLAIM? You must sue in the right court and judicial district. This rule was broken; is called venue. 5. For a retaiI installment account or sales cont. ~ct or a motor The right district may be any of these: vehicle finance sale: 1. Where the defendant lives or where the business in- a. Where the buyer lives; volved is located; b. Where the buyer lived when the contrac was entered 2. Where the damage or accident happened; into; 3. Where the contract was signed or carried out; c. Where the buyer signed the contract; z~.. If the defendant is a corporation, where the contract d. Where the goods or vehicle are permar,~,;ntly kept. SOME RULES ABOUT THE DEFENDANT t. You must sue using the defendant's exact legal name. If exact legal name, the court may be able to co ,-ect the name the defendant is a business or a corporation and you do on your claim at the hearing or after the jLdgment. not know the exact legal name, check with: the city license 2. If you want to sue a government agency, yoL;~nust first file bureau; the corporations division of the county clerk's of- a claim with the agency before you can fii~: a lawsuit in rice; or, the Office of the Secretary of State, corporate court. Generally, you must do this no later tl-gn 100 days status unit. Ask the clerk for help if you do not know how after the act or event you are suing about. to find this information. If you do not use the defendant's HOW DOES THE DEFENDANT FIND OUT ABOUT THE CLAIM? You must make sure the defendant finds out about your served. "Commercial" process servers will (i~ this for you lawsuit. This hasto bedone accordingtothe rulesor yourcase for a fee. You may also ask a friend or rela;i'~,e to do it. may be dismissed or delayed. The correct way of telling the 3. Certified mail defendant about the lawsuit is called service ofprocess. This You may ask the clerk of the court to serve ti :~ ~efendant means giving the defendant a copy of the claim. YOU CAN- by certified mail. The clerk will charge a sn~:}ll fee. NOT DO THIS YOURSELF. Here are four ways to serve the 4. Substituted service defendant: This is a complex and technical method o'f ~'~,rvice. This 1. Service by a law officer method lets you serve another person instead of the defen- You mayaskthe marshal or sheriff to serve the defendant, dant. You must follow the procedures caref~.~iiy. You may A fee will be charged, also wish to use the marshal or sheriff or a co~'~' mercial pro- 2. Process server cess server. You may ask anyone who Js not a party in your case and A copy of your claim must be left: who is at least 1~ years old to serve the defendant. The -- at the defendant's business with the per.~:{'~ in charge; person is called a process server and must personally give -- or, at the defendant's home with a competent person a copy of your claim to the defendant. The person must who is at least 18 years old. also sign a court form showing 'when the defendant was fConti~ued on reverse~ ~i~,~ Co~, o~ c~,,o~i~ INFORMATION FOR THE PLAINTIFF W~MC 580 2:t20 133 (Rev. 9-84) SC 150 [Rev. January 1, 1985) (Small Claims) Ru~... ~82.7 4. Subsituted service [continued) The person who receives the claim must be told about its postponed, tf the defendant lives in the county, service must contents. Another copy must be mailed, first class, postage be completed at least 5 days before the trial date. This period prepaid, to the defendant at the address where the paper is 15 days if defendant lives outside the county. was left. The service is not complete until 10 days after The person who serves the defendant must sign a court the copy is mailed, paper showing when the defendant was served. This paper No matter which method of service you choose, thedefen- is calleda Proof of Service. tt must be signed and returned dant must be served by a certain date or the trial will be to the court clerk as soon as the defendant has been served. WHAT IF THE DEFENDANT ALSO HAS A CLAIM? Sometimes the person who was sued (the defendant) will of the claim is more than this amount, the defendant may either also have a claim against the person who filed the lawsuit (the give up the amount over $1,500 and sue in the small claims plaintiff). This claim is called the Defendant's Claim. The court or sue in a different court for the full value of the claim. defendant may file this claim in the same lawsuit. This helps 'The defendant's claim must be served on the plaintiff at to resolve all of the disagreements between the parties at the least S days before the trial, lf the defendant received the plain- same time. tiff's claim lOdays or less before the trial, then the claim must If the defendant decides to file the claim in the small claims be served at least I day before the trial. court, the claim may not be for more than $1,500. If the value Both claims will be heard by the court at the same time. WHAT HAPPENS AT THE TRIAL? Be sure you are on time for the trial. The small claims trial also get a court order requiring the papers to be brought to is infori~f~li-?6-J-rfiJSt 15r'ing with you all witnesses, books,: the trial. This order is called a Subpena Duces Tecum. receipts, and other papers or things to prove your case. You If you settle the case before the trial, you must file a may ask the witnesses to come to court voluntarily. You may dismissal form with the clerk. also ask the clerk of the court to issue a subpena. A subpena The court's decision is usually mailed to you after the trial. is a court order that requires the witness to go to trial. The It may also be hand delivered to you in court when the trial witness has a right to charge a fee for going to the trial, lfyou is over and after the judge has made a decision. The decision do not have the records or papers to prove your case, youmay appears on a form called the Notice of Entry of Judgment. WHAT HAPPENS AFTER JUDGMENT? The court may have ordered one party to pay money to the means that the judgment creditor cannot collect any money other party. The person who wins the case and collects the or take any action until after this period is over. Generally, both money is called the judgment creditor. The person who loses parties may be represented by lawyers after judgment. the case and owes the money is called the judgment debtor. More information about your rights after iudgment is Enforcement of the judgment is postponed until after the available on the back of the Notice of Entry of Judgment form. time for appeal ends or. until after the appeal is decided. This The clerk may also have this information on a separate sheet. HOW TO GET HELP WITH YOUR CASE 1. Lawyers . 5. Plaintiffs Who Are In Jail Both parties may ask a lawyer about the case, but a lawyer If you are in jail, the court may excuse you from going to may not represent either party in court at the small claims the trial. Instead, you may ask another person who is not trial. Generally, after judgment and on appeal, both parties an attorney to go to the trial for you. You may mail written may be represented by a lawyer, declarations to the court to support your case. 2. Interpreters 6. Advisors _ _ Ifyou do_not spe_ak Egglish, ~zpu~m~ay.take a. fami_ly.rne~beL.,~_T,b~,.!a.w...r, equ_i~es.each.c, ount,y:to provide assistance in small or friend to court with you. The court should also keep a claims cases free of charge. Here is some important in[or- list of interpreters who will translate for you. You may mation about the small claims advisor program in this choose an interpreter from the court's list. Some inter- county: preters may be free, and some may charge a fee. 3. Waiver Of Fees Small Claims 'Advisor The court charges fees for some of its procedures. Fees 1415 Truxtun Ave. 5th Floor are also charged for serving the defendant with the claim. Bakersfield, California 93301 The court may excuse you from paying these fees if you 861-2 326 cannot afford them. Ask the clerk for the Information Sheet on Waiver of Court Fees and Costs to find out if you meet the requirements so that you.do not have to pay the fees. 4. Night And Saturday Court If you cannot go to court during working hours, ask the clerk if the court has trials at night or .on Saturdays. sc :~0 ~ .....,~, .........:.~.-'.~ INFORMATION FOR THE PLAINTIFF (Small Claims) WKMC 580 2120 133 (Rev. 9-84) (Back) CALIFORNIA ADMINISTRATIVE CODE, TITLE 16, CHAPTER 7 (These sections of the California Administrative Code contain the regulations that are adopted by the director of the Department of Consumer Affairs for the purpose of clarifying, defining, interpreting and implimenting the laws contained in the Collection Agency Act and the California Robbins-Rosenthal Fair Debt Collection Practices Act as it applies to collection agencies. Regulations apply to the collection of consumer and/or commercial debts. Each year legislation is passed which could require that regulations be added, amended, or repealed. The bureau will provide updates as appropriate.) Article 1 GENERAL PROVISIONS 600. LOCATION OF OFFICE T~e principal office of the Bureau of Collection and Investigative Services is located at 1920 20th Street, Sacramento, California 95814. 600.1 DEFINITIONS In this chapter, unless the context otherwise requires: (a) "Code" refers to the Business and Professions Code. (b) "Chapter" refers to Chapter 8, 11, 11.5 or 11.6 of Division 3 of the Code · (c) "Person" includes any individual, firm, company, association, organization, partnership or corporation. (d) "Licensee" as used herein means any person licensed, certified, registered or issued a permit under Chapter 8, 11, 11.5 or 11.6 of the Code. (e) "License" as used herein includes a certificate, registration, permit or other means to engage in a business or profession regulated by Chapter 8, 11, 11.5 or 11.6 of the .Code. 601. APPLICATION FOR EXAMINATION An applicant is not eligible for examination until he or she has filed a complete application accompanied by the appropriate fee. Complete applications must be filed in person at or mailed to the bureau's Sacramento office not later than 20 days prior to the next scheduled or requested examination date. An applicant who fails to file within the above time period may, at the bureau's discretion, be scheduled to take the following scheduled examination. 601.1. TIME AND PLACE OF EXAMINATIONS Examinations shall be given at least once every two months at such places and on such dates as the chief may from time to time fix. The bureau shall mail to each applicant who has been approved to take an examination a notice of the date, time and place of the examination. Such notice shall be sent by regular mail to the home address shown on the application not later than two weeks prior thereto · D-1 (Rev. 1/88) (c) If litigation is initiated by the attorney, there shall be no further contact with the debtor or his attorney except by those individuals who have been specifically authorized and delegated by the agency's attorney in writing. 628.5. UNLAWFUL ACTIVITIES (a) The following actions shall be deemed to be the practice of law: (1) Accepting claims for or appearing as assignee plaintiff in an action for damages based on tortious conduct until the claim has been'reduced to written contract to pay or judgment; (2) Accepting for collection a subrogation claim until reduced to written contract to pay or judgment; (3) Accepting for collection any claim which involves the preparation, filing, or foreclosure of a mechanic's lien; (4) Communicating with debtors in the name of an attorney or upon the stationery of an attorney, unless expressly authorized by an attorney; (5) Intervening between creditor and attorney in any manner which would control or exploit the services of the attorney or which would direct those services in the interest of the agency; (b) Pursuant to Sections 6855 and 6947, a licensee may not: (1) Engage in any activity listed in subsection (a) above; (2) Appear as assignee plaintiff in any claim and delivery or replevin ~ction; (3) Solicit assignments of claims for the purpose of suit thereon; (4) Employ instruments simulating forms of judicial process, or forms of notice pertaining to judicial proceedings, or threaten the commencement of such proceedings other than to notify the debtor that the matter will be referred to its attorney for legal action, and that in the event its attorney should file suit, the debtor may become liable for additional costs and expenses by reason thereof; (5) Profit from attorney fees recovered from debtors; (6) Accept for collection any claim upon which suit has been filed or judgment obtained, without first making a reasonable effort to contact the plaintiff's attorney of record. 630. USE OF NAME OTHER THAN TRUE NAME Any person using an alias in the collection of claims for a licensee shall register such alias ~ith the licensee and with the bureau. No person may have more than one alias and no alias may be used by more than one person. Such alias shall be the property of the individual. No change of alias shall be allowed unless good cause is shown.. 632. AIDING AND ABETTING OTHERS No licensee shall, directly or indirectly, aid or abet any person, persons, or organizations in evading or violating any of the provisions of Chapter 8 or of these regulations. 635. AGREEMENTS WITH CUSTOMERS (a) Any terms, rates and conditions set forth in any written agreement between a licensee and his customer by which claims are assigned for collection D-7 (Rev. 1/88) ~ i ~::.O,. BOX ~66~, .................... ~ ........ -' .............. - ITY OF BAKERSFIELD o --? BUDGET & FINANCE COMMITTEE ." .~ :.. CITY HALL ' BAKERSFIELD, CA 93301 HERBERT, P. SEARS CO. INC COLLECTION SERVICE ' / / THE CREDIT coPS CITY COUNCIL REFERRAL MEETING OF: NOVEMBER 30, 1988 REFERRED TO: BUDGET AND FINANCE COMMITTEE - JOHN STINSON ITEM: ,CONSENT CALENDAR 8. n. Proposed use of B.A.R.C. Recycling Proceeds. MOTION TO ADOPT AND REFER TO BUDGET AND FINANCE COMMITTEE. ACTION TAKEN BY COUNCIL: APPROVED WITH ALL AYES. RATTY AND MCDERMOTT ABSENT. BACKUP MATERIAL ATTACHED: YES DATE FORWARDED BY CITY CLERK: DECEMBER 5, 1988 STATUS: REFERRAL17 MEMORANDUM TO: MARY STRENN, ASSISTANT CITY MANAGER FROM: MICHELLE SUVERKRUBBEt COFFEE COMMITTEE CHAIRPERSON/~ SUBJECT: PROPOSED USE OF B.A.R.C. PROFITS DATE: NOVEMBER 17~ 1988 On September 11, 1988, the Bakersfield Association for Retarded Citizens began'their "Carecycling" program at City Hall. Our current prices for items collected are: ITEM PRICE PER POUND 1 Computer Paper $ .05 · .03 2. White Ledger .01 3. Newspaper .59 4. Aluminum Cans .02 5. Color Ledger .005 6. Other Paper Unfortunately, BARC' is currently unable to inform us of our present account balance. As you recall, there is an initial start-up fee, which will defer any possible profits from the progra~ until 1989. It is.not possible at this time to gauge our rate of collections or predict precisely when payments will begin to be received. The Coffee Committee has identified the following as possible uses of BARC monies: I. Improvements for both break rooms, including: A. Painting, New Floors B. Bottled Water C. Refrigerated Vending Machine D. New Furniture, Plants, Pictures II. Reduced prices for food, sodas, coffee IIio More social activities funded wholly or in part by Coffee Committee IV. Other items deemed'necessary by City Hall employees The present Coffee Committee feels the responsible management and accounting of the BARC program could be handled by future Coffee Committees, with final expenditures supervised and approved by the City Manager. Obviously, the Committee will need a formal mandate from the Budget and Finance Committee to direct the present'and future Committees in-their proper roles regarding the handling of these monies. cc: Sheri Foster, City Attorney(s office Sandra Retzke, Internal Audit Lori Spencer, Building Dept.~ Robert Tablit, Public Works Maria Mojica, Personnel Pam Beudette, Finance Dept. BUDGET AND FINANCE COMMITTEE REPORT NO. 47-88 December 14, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: LOCAL BUYING PREFERENCE ON BIDS At the November 9, 1988 Council meeting, a review of current City purchasing regulations regarding local preference in awarding bids was referred to the Budget and Finance Committee. During the Committee's review, it was noted that State law and the City Charter mandate many of the purchasing procedures.~ Currently, the City does give a bidding preference to local vendors based on the 1% of the sale price of all goods and materials sold within the City limits that returns to the City as sales tax revenue. In addition, local vendors often are selected due to factors such as speed in delivery in purchases that are below the bid requirement dollar limit. The Committee felt that any further local advantage would discourage possible bidders and present an environment that could lead to the City paying higher prices. The Committee encourages the Purchasing Workshop planned by staff to be held early next year when time is available and that manuals be made available to the entire Council. .BUDGET AND FINANCE COMMITTEE REPORT NO. 47-88 December 14, 1988 Page -2- The Budget and Finance Committee requests acceptance of this report and adoption of its recommendations. Respectfully .submitted, CoUncilmember Donald K. Ratty, Chair Councilmember James Henry Childs Councilmember Kevin McDermott RPT.121 and 121A:jp ADMINISTRATIVE REPORT Meeting Date: November 9, 1988 Agenda Section: Reports Agenda Item: TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Approved FROM: J. DALE HAWLEY, CITY MANAGER Department Head DATE: November 2, 1988 City Manager SUBJECT: Report No. 45-88 from the Budget and Finance Committee regarding Local Buying Preference on Bids. RECOMMENDATION: BACKGROUND: .alb RPT.1 November 2, 1988 TO: MARY STRENN, ASSISTANT CITY MANAGER 0. SUBJECT: PURCHASING - LOWEST RESPONSIBLE BIDDER Currently section 136 of the City Charter "Public work to be done by Contract" requires that when the expenditure required in the erection, improvement and repair of all public buildings and works, and in furnishing any supplies and materials for same, or for any other use by the City exceeds the sum of four thousand dollars ($4700) the contract shall be let to the lowest responsible bidder. The City Council may make a determination that projects for the resurfacing, maintenance or repair of streets, drains or sewers can be performed more econo- mically by a city department than by contracting for the work. The City Council may in its discretion reject any and all bids and readvertise for bids. The City Council, after rejecting bids or if no bids are received may by four (4) affirmative votes of the Council on a resolution determine that: a) The work may be more economically performed by City employees. b) The material or equipment may be purchased more economically on the open market (i.e. used vehicles, nearest authorized distributor/dealer for servicing, sole manufacturer of existing or specialized equipment, etc.) The City Council may by five (5) affirmative votes on a resolution declare the work or supplies or equipment to be of urgent necessity for the preservation of life, health or property and may authorize the contract to be let without adver- tising for bids. In determining the lowest responsible bidder, staff recognizes that the city receives 1% of the sale price of all goods and materials sold within the city limits as its share of the state sales tax. Therefore local vendors have a 1% advantage. Attached is a memo by my predecessor with additional information. GJK/ld GJK-S384.2 ~,~ .. lawyers, attempted to develop rules, able to answer.any questions which x: .GiV~.~"~9 kOi~] __ regulations and definitions to ac- may be raised by biddert regarding complish the purpose set forth by the procedure. ~t~k,~---' the policy making board. ' 2. 'Procurement Will maintain a '" continuihg file of all local prefer~ We immediately ran into diffi- ence applications; u. pon receipt of culties how to ~:eally define "Io - ' each such application, Procurement cai,business". Does a local mailing 'will review the answers provided by Otto R..Winter, CPPO address constitute a local business? by the bidder and make a determi- What if a contractor suddenly nation as to whether that bidder · . changes his mailing address from qualifies for the Preference..If outside the City .to a local area Procurement should require any le- · claiming that he does part of his gal assistance in reaching such a ° business locally? Maybe the local determination, the Bonds and Con- address is his home where he claims · tracts section 'of' the Law Depart- he does some of his work. He esti- ment will be available to render mates' jobs there. What if a con- assistance. tractor claims local preference be- 3. In the event that local pre- cause he does a great deal of work ference is denied upon examination within the City limits and has work of an application, the bidder will .. trailers parked within the City at be notified of this decision. Bid- the time, he says. ders dissatisfied with such a de- ' cision could request an informal Before we firmed-up the criteria, hearing With the Procurement Corn- we had an experimental period to missioner. determine what some of our pro- 4. In the case of applications' blems might be. We inserted, in each where the preference is 'to be grant- bid document, a brief statement "- " indicating that local vendors would ed, the. expla.natory material will . clearly indicate that no formal no- get a 5% preference and waited for tice Will be given to the bidder. problems to develop. We automati- cally awarded bids to local vendors 5. The determination of whether local preference is to be granted ~ if they were within 5% of the l'ow will include a cross-check with the' . bidder if he was located beyond Revenue Department· tO ascertain City boundaries. Claims for this : Remember the strong positions preference immediately appeared - tax delinquency. The mechanics of' the purchasing fraternity always such a cross-check wil'l be worked took on local preference, i.e., givii~k' one.comp, any demanded preference out by Procurement and the Deputy because.he had a small warehouse Revenue Commissioner. the local businessman a price ad- in the City; another had an office 6~'-Th~-ld~al-pr~fer~n-c~' 'bidder ...... 77 7_.7'172 ........ Vantage; remember the defensive with a drawing board in his home;, specifications and such of the ...... ' ...... ' ..... positiOnsuch a policy;We alwaySremembertOOk 'resistingthe dis- startedan°ther tohaduseW°rkhis trailers;bondinganothercom_ explanatory, material that is nec- . appointed, disgruntled politicians pany's address- the claims came essary, will be inserted in each ' when wewon time and time again, in all varieties, but we learned individual bid package to which· The trend has changed somewhat · and some Of us have been forced what was necessary when'we pro- the preference ,.applies. This pro-. to adopt a policy offering local mulgatedrulesand'regulations, cess will begin within several ·Weeks after the initial mailing of · vendors a preference. In, Phitadel- An important provision in our the applications. . phia, following orders of the Ad- policy is that' the local business- A letter and application form, ministrative Board which makes .man agrees to perform the service outlining the criteria upon which these final decisions, Procurement or do whatever is ·required for the local preference decisions are based tried to develop criteria which price bid by the low b~dder, provid- was mailed·to all bidders on our would, in our' opinion, be the least ed his own bid is not .reduced' b); mailing list. It's not ·perfect but Ii. harmful to the bidding ·process more than 5%. If he's not within it's the best we could do. and which Would not cost the City 5%, the local preference factor is 'Local Preference is not applicable more money, not applicable, to all bids submitted by a .vendor In adopting a Local Preference The following procedure was who has been .granted L'ocal Pre- policy, the only restrictions the worked out: ference status; he must sign an Administrative Board mentioned 1. Procurement will proceed with application form for each bid indi- were that the definition of a local a mass mailing of the applications .cating that in each particular bfd company >.'as one which had a place and the accompanying explanatory he wahts the 5'°,'; local advanta,,4e of business in Philadelphia for at' material to all local bidders who -or if he fails to complete the form, least five years and was up-to-date appear on the City's bid list.'.The ii:'s interpreted to mean that he in its tax payments. The Procure- Bid Room Supervisor of the Pro- doesn't wantit to apPlyon his bidl ment Department, together with our curement Department will be avail- · 18 GOVERNMENTAL PURCHASING/MAY-JUNE 1979 old contract and ·bid $~4.26.a ton fOr the first year of the new contract · period. Another governmental activity held price increases . down through use of a revised escalation clause in its contract. Previously, changes were tied to the wage level of the union, contract. This encouraged the vendor to give in to wage increase demands, since the increased cost could be passed .on to the government~ The specification for the new c'ontract changed the control to the Consumer Price Index, a less volatile measure not affected by the local wage level. Competition..i~...public-.pu~chaai~9:.;/~.;n.e:cessary fOr mm- greater" latitude of' choice and, mo~.~~~:l~, the reasonableness ..of~~~~~f :"t~'~'S~-: b~n~e- fits are fu!.~s~~nless competition is maximized. -Merely' reqUiring purchases exceeding, a specified dollar ·limit tO''~ bm' bn~ed""'on'~dverti'sed~competit-i.ve~-, bids will not assure 'these benefits ~' ~The'r~"~Wefe";Onl~;:~:~h'r~e;.~ioc~?~'Overnments studied with established programs to enlarge ~ompetition. There are spec-~f, lc:;~! l.cles,- ac ~ons.,--and~ techniques whiCh._local-',.governme'h'~' and their' purchasin~ activities can take to maximize competition. In addition to the positive .programs used to. sol~c~E new~.'~d~r~-~act~on.·_should, be 'taken to eliminate those elements-which-;'~mpede'max~mum competition such as., which dis.~o~_ag~j~:~der~~*restrictive specifications, ~-'c~oi.l_ .- .~;'; indic:~{:~i,>n of the c, roblem can he.seen from the~ F ~ ~ N~ 247/r~ - . ~uf~ ~ ~" ~ This ill'us~r~t'ion is not-.intended to demonstrate that the lowest priced item'iS the one ~hat should be purchased In· the'standardization 'procesS, the user's need~for, quality must be c~nsidered. Consolidating orders under Contracts doesn't always achieve standardization. One activity's contract for auto parts included 6 different brands of'oil filters at prices from $1.64 to $2.64 each; 5 brands of shock absorbers from $5.50 to $13.74; and 5 brands of spark plugs from $.70 ' to $1.50. fn many cases, standardization can be achieved through centrai stocking of commonly used supplies, especially office supplies. Such stockrooms can serve as a control for item elimination, as, for example, multiple varieties of paper, pencils, or pens. The pu~fchasing director, at one govern- mental activity adopted ordinary white bond paper for both typing and electrostatic copy use.. The bond paper was cheaper than electrostatic paper, and can be successfully used. Specifications are frequently prepared by the using de- partment; however, the purchasing activity should partici- pate. The using department will have the technical know- ledge needed to fit the items to the job, but tends to Over specify by including e~ements which are not essential to the need.or by 'favoring certain brands. .At one.activity, the police department needed to re- place a card-record system. The specifications named a specific brand, and only the name of the manufacturer of · that system was.supplied to the 'purchasing activity as a · potential source of supply. As anticipated, that manufact- · urer was the only bidder. The problem here ~as a limitatio~~ by brand name's' When using a brand name, it should be listed .~.~' ~ only for description and not limitation. Specifications ~'~'~ ...................... ~ho_uldi_be of_~the~per~formance_~pe_when_possible_,_rathe~ .... than the prescriptive type. '"~ · ' Performance specifications encourage vendors to submit '~ ~ new products or concepts to fulfill the needs At one gov- - ernmental activity in which garbage Collection was. done through contract, one of the bidders proposed the use of a . new type of one-man collection truck. The government made a thorough examination of the truck's use elsewhere before approving the low bidder who proposed to use it. The city. did not specify the type of c~llection vehicle to be used or the minimum number Of men required on each'truck. As a result, a new type of truck using one man was successfully introduced at a savings of more than $1 million. The one- man truck system had a bid of $18.50 a ton for the first year of the contract. The~ previous contractor, using 2-man trucks, charged' the city $23.74 a ton in the final year of the: Preconditions · . PrecOnditions which ~end to discourage bidders should be eliminated, one city, which had residential garbage pickup by a contractor, increased competition from one 'bidder for the previous'contract to six bidders for the succeeding contract. The purchasing director attributed the increase to reducing· the performance bond to the absolute minimum practicable (replacement cost) and to elim- inatin~.all prequalifications as to experience and finances. Restrictive specifications .Any restrictive elements in the specifications that are . unwarranted should be removed. The city that eliminated pre' conditions also eliminated all clauses which would restrict the bidder in arranging for operations or estimating costs under the contract, such as specifying routes and pickup days. The city took .positiw~ steps to interest potential'bid- ders. In addition to adve~ftising the request for bids, it sent 50 invitations encouraging refuse companies t° bid for the collection contract. Competitive neqotiations ~ The purchasing activity shoUld be included in all pro- curement, including professional services and construction, ~sol. that its expertise can be used in the negotiations. Pro- fessional services are frequently obtained on a noncompet- itive basis, and the using department often negotiates~di- rectly for th~'service.' 'As a result of recent court decisions, these, services are now becoming subject to Varying degrees of · competition. For eXample, accounting services for local gov- ernments which are required to have an independent audit of their financial operations may~be secured through~ competitive negotiations' In the acquisition of personnel services, intangibles other than price must·be considered. Even with the consid- eration of prOfessional experience, Competence, and staff availability, large savings~may be~made through competition, The purchasing director at one l~ca°l government entered into negotiations with six locai fi~ms, instead of dealing with one accounting firm for the annual,audit. ~The audit price of one fund dropped from $9,930 to $6,000, or about 40 D~rcent from the prior year. The other government funds were .converted ~rom a cash to an accrual basis between the 2 years, so no exact ~omparison could be made. The audit cost for all funds dropped from about $80,000 to $39,000, or about 50 percent. At another, goverh.ment.al unit~' the policy was to change auditors e~ery 5 years. W~en'the term expired, the names of the Three largest local CPA offices were secured from the local CPA society. The three-firm limit was consistent withState requirements. Word of the impending change, in auditors reached other firms.and seven additional firms asked to be considered. The firms were rated on cost, 'timing of audit, staff availabilitY, service availability, and miscel- laneouS factors. The firm ultimately selected was not one of the original three; yet it yielded a savings of up. to $16,000 over the estimates from the original three. In this case, real competition was achieved only because of the ag~gressive efforts of the ~firms involved. WHAT. OTHER AREAS SHOULD PURCHASING BE CONCERNED WITH? Inspection and testing ~ 'None of the five governments we studied had a centralized . inspection or testing program. In our survey of city'procure- ment practices, out of 763 cities responding, 534, or 70 percent, stated that the requesting department is solely responsible for inspection and testing. Another 141, or 18 percent,' said that the reputation of the Supplier is reIiable.~ Of the locations we studied, only one reported regular testing of traffic marking paint. It was assumed that Other supplies and materials met specifications based on th'e receiving department's inspection. While one had standard inspection guidelines, none maintained a record of complaints. Property management i.~' ~. ~ · ~ .................. ~ ........ i~ ......... ~L_~.L&_i Management of supplies and equipment within the depart- ments may not be a function of the purchasing activity. It is important, however, that a periodic inventory and inspeCtion be'made to identify items which are surplus. Transfer o~ surplus property to a department where it is needed is a 'desirable alternative to purchasing.. In our survey of pro- curement practices of cities, 0nly 58 percent responded that inventories were taken as often as once a year. Only one of the five lo~al ~overnments we studied had an up-to'date inventory. In 197~, they had the following capital expenditures. " October ~2, 197~ TO ' H. E. BERGEN, CITY MANAGER . · ............................................................. ~ ...................... ~ ...................................................................... ., .........~.o~ I=ROM W. D. HIGGINBOTHAM, JR., FINANCE OPERATIONS MANAGER . sUBj ECT...:'..B..U.X .~.L..O..C..A..L. :'.,..P..0..L..I..C..Y. ............................ ~ ............................................................................... : ............... .... On October 3, 1979, the City Council requested that this office conduct a study and survey of other cities in the State of California regarding "Buy-Local" policies or policies of cities with regards to special preference being given to local businesses.- First, on the. matter of legality, the Charter of the City of Bakersfield and the Governmental Code of-the State of California both address the issue and what we must do. Article X, Section 136, of. the City Charter states that "... when the expenditure required ..' exceeds the sum of $4,000, the same shall be done"by contract and shall be let to th'e lowest responsible bidder, ....." Section 37902 of the Government Code of the State of California goes'on to say that "When the expenditure required for a public project exceeds five thousand dollars ($5,000} it shall be contracted for and let to the lowest responsible bidder after notice.'" A recent court case supporting the awarding of contracts to the lowest responsible bidder is the City of Inglewood - Los Angeles County Civil Center Authority vs. Superior Court of Lo.s Angel.e..s_. CountY. (1972). .- - Contact was made w.ith the purchasing_Office .Of nine ci~:ies and one county -as--~folt ows~ 1)' Barst°w 2) Fresno 3) Modesto .. 4) Redwood City " 5) Sacramento - 6) San Jose 7) San Leandro 8) Santa Cruz County 9) Stockton ,, , . lO) Watsonville So as to maintain consistency and uniformity in our comparisons, each agency was asked the identical same question, "In awarding bids, do you give any special consideration to local businesses or vendors, when they are not the lowest bidder?" In all cases we requested a yes or no answer, and followed with a brief discussion as to their reasoning. The response from Barstow was 'No, not normally." Ou'r discussion revealed that Barstow purchased vehicles from l~cal dealers by their bid specifi- cations, which' require the vendor or bidder to have a local facility for H, E. Bergen Page 2 October 22, 1979 repairs, '~ervite an'd maintenance.'. This is necess,ary since Barstow does not have the Ci'ty facilities to maintain their vehicles and equipment. The net effect is not necess·afily preference given to local ~endors rather, a situation where locai vendors are the only bidders that can · satisfy the needs of the City as defined and outlined in their specifi- cations. . The responses from Fresno, Modesto, Redwood City' Sacramento, San Jose, San Leandro ,' and Watsonville were all "No." Further discussien revealed that·, the cities of Modesto, Re&,~ood City, and Sacramento each gave a one percent (1%) preference for the sales tax which would be returned to the City if the purchase or purchases were.made from.a vendor within tl~e City Santa Cruz County resPonded by saying they "used tc but did away with it," and in the City of Stockton they stated that they only go out for formal bids on amounts that exceed $8~00.0, then give a one percent (1%) pref- erence to local vendors for the .sales tax. In addition to the above survey, I personally reviewed various monthly purchasing related publications for the period August 1978.·through Septe.mber 1979. The publications included: 1)GOlden West Purchasor - Published monthly by the Purchasing Management Association/Los Angeles. 2)Pacific Purchasor - Mo'nthly publication of the Purchasing Management Association of Northern California, Inc. 3) GOvernmental Purchasing - A n~onthly publication distributed nationwide with an editorial staff made up entirely.of 4) Study of Selected Local Procurement Systems - An August·1978 .... study' prepared by the United States General A'ccounting Office on opportunities for improvement in local government purchasing. While there was not an abundance of information address~ing the i~sue of adopting a policy g~ving specia'l consideration or preference to local- vendors·and businesses, there was one article in the May-June 1979 issue of Governmental. Purchasing which discussed such a policy in the City of Philadelphia. For your convenience,·I am attacning a copy·of the article (Attachment A). Also, there were some articles and discussions which addressed some of the ben6fits of increasing and maximizing· competition. For your convenience, I am attaching a copy of an excerpt from the study prepared b~.the Un~ted States General Accounting Office (Attachment B1 and B2). It was clear that without exception, the support· and advocation of competitive acquisition was paramount. To make clear its ~position on this subject, in the 1978 Conference of the National tnstit'~:te of Go'~ernmental'Purchasing, the following resolution wa.s auu?~.~d suppor'clng L!;e concept of co~:pe-;cition of p;~n, iic p¥'ocu'.,'e,,~,er~· H. E. Bergen ~ Page 3 October 22, 1979 · : - "Whereas .the basic intent-a~d mission of the ABA/Model Procurement ~ Code.is tQ eliminate to the'maximum extent corruption in the public procurement process and to insulate that process from political interventions; therefore be it resolved that the Board of Directors of NIGP affirms its position that. al! procurement be competitive in nature for all acquisition of materials, supplies, equipment, con-' struction, and services, specifically profess'~onal services of all types as applicable conditions p. ermit." Traditionally/, it has been the position of NIGP that it is not good public purchasing policy to apply d'ifferential to local vendors. Such differentia s· discourage outside firms from submitting bids.' Without reservation, this office highly recommends that the City continue to award its contracts and make its purchases on a nonpreferential basis. Preferential treatment could only lower competition for the City's business since outside vendors are likely to'decide against bidding Where the local bidder is given preferential treatment. We must also realize that if we were to establish a '"Buy-Local"~ policy that our businesses and manufacturers would lose business if other dties did the same thing. Without a doubt, I sincerely be.lieve that the City as a whole can· best be · served bY a free·flow· of goods and services with free competition having as few obstacles .as possible.' cC: Kenneth Hoagland City Attorney ~:~ .1~)~.~ I~01 Truxlu. Ave,,e Bak¢isrield. Cnlil~o~,i~ ~.t~ (~{ ~} 326.3724 ~~ I)ALE ItAWLEY. SE'P 2 2 1988 iNTE ~NAT [ONAI, BRO' 'ItERHOOD OF Ol~ MANAGE~,8 OFFICE ELECTR.[ CA L WORKERS 9]I - 2Oth Street Bake~sfLeld, CA 9330~ Geut lemen: In February, Mr. Wayne Keller of your 'orgn. i. zati. on pre~e.ted the City with some recommended changes for ~roject specifications on City.contracts. The City staff has reviewed Mr, Keller's recom,~e.dati~o.n regardi.,g lowest responsible b[clder to the spec.lfi, cati. o,s. Staff ,,embers met with Mr. Ke~ler explaining that the Ci. ty's projecl: speci, fi. catio,$ address all his co.cerns; however, Hr. Keller req~ested the City specificati, ons specifically defi.e the criteri, a for eval.at:[.~ cont'racto,-s (see attached). ' Barli. er th~s month we attempted to contac~ Mr. Kel./er prese.t his concer.s to the C~ty Council's Budge~ a.d Fi.a.ce Co,.mitlee and were info~;med thai: he no longer works with you. [f someo.e [rom your staff would Ii. Ice to meet with the C.i.l:y t. p.rs e I_hJs matter, please contact Joh. Stinson. fissista.t to tm Cit'y Mn,anger at (805 326-3751 or 1)ia.e baRochetl, e, City E.g.[neet/rig l)epart.~e,~ ~t (805) We have al. so attached for your i,~formati, o. a copy c,f A~O45 which ,rev sos the deli.it-ion o[ "l. owes[: respons.i, ble bidder." 'l'hi~ sho,. d provJ, de local gover.me.ts more [[ex[bi[ity in choosing qual. ity contractors. Very. ~ ru.[y w. B.blic Works Ma.ager ~...~ 4 I)HL:mro L92188 At tachments xc: J. l)ale llawIey, City Manager O MEMORANDUM TO: J. DALE HAWLEY, CITY MANAGER FROM: E.W. SCHULZ, PUBLIC ~DRKS MANAGER ~ DATE: SEFrFZ4BER 1, 1988 SUBJECT: CORRESPONDENCE FROM WAYNE KELLER In February, 1988 Mr. Wayne Keller of the Electricians Union, Local No. 428, presented the City with som~ recomm~nded changes for contract specifications on City contracts. The staff reviewed the material and expanded our specifications to include language regarding lowest "responsible" bidde~. We met with Mr. Keller on May 3, 1988 and reviewed our contract specifications with him and explained that we have addressed all of his concerns; however, the union's main thrust is to have language included in 'City Specifications which speci- ' fically' define the criteria for evaluating contractors (see attached). The staff and the City Attorney's office reviewed the union's proposal but did not reco~nend adding: language to our specifications based on the following reasons: (1) Lowest' "responsible" bidder allows the City to reject'a bid for numerous reasons. By listing the criteria to be considered, the City limits its opportunity for rejecting a bid. (2/ The State's division of Industrial Relations has specifically advised the City that the City has no authority to investigate allegations that any contractor has failed to pay prevailing wage rates. The City's sole recourse is to report the sus- pected offenders to the State. (3) The city is required to hold a hearing prior to finding that a lowest bidder is "not responsible". We cannot make a single criterion dispositive of such issue and thereby preclude a decision following such hearing. (4) Several other cities-were contacted and the con- sensus was that it is best not to include these criteria within the specifications but that they could be used as guidelines for recommending award of contracts. Therefore, the staff makes the following recommendations: (1) That the .criteria as presented by Mr. Keller be utilized by the Public Works Department as a guideline for the review of potential contractors. (2) That no additional changes be made in specifications. PUBLIC WOP, KS CONSTRUCTION CONTRACTS The Sacramento C~ty Charter and the California Publfc Contracts Code' re~utre that the C~t¥ award construction contracts to the lowest respons|ve, respon- sible bidder. Where there ~s a. quest$on as to the'responsibility of a b~dder, the Cl'ty Council w|ll make a determination on an indtvfdual'case-by-case basis as to the responsibility of a b~dder using any combination of the below'.'descrtbed criteria. The criteria that may be used by the C~t¥ Council in jud!~ng the quest|on of responsibility of a particular contractor' include i) past: performance criteria, and 2) capability. Further, the contractors mus~ meet California state law requirements: "' 1. The contra~stor must possess a California Slate Contractor License, appl~cabl, e to the work to be performed. 2. The contractor must submit a btdders bond, otherwise known as btd security, through a bond, certtf|ed check or cash tn an amount at least 10% of the bid. Bid security must be available at the ttme of b|d open~ng or the bid proposal w~l! be considered non-responsive. 3. The contractor must have the ability to obtain Payment and Performance Bonds for the contract amoun~ tn ~he t~me specified in the contract document. 4. The contractor must have the abtltty to obtain insurance as described in the specifications and tn the time required. 5. The contractor must list all subcontractors ~n the bid proposal over one half of one percent in .accordance with the California' Subcontract- lng Act. 6. The contractor must comply with applicable HDE, WDE or DBE requirements in terms of reaching the goals specified or making a good faith effort and have those efforts documented, lhe contractor must comply wi th all Afflrmat~¥e Action requirements. 7. In case of grant funding, such as EPA, FAU or UMTA, the contractor must meet all applicable requ|rements specified in the grant. The contractor must have the ability to obtain a California State Contractor l~cense applicable ~o the work to be performed. 8. The contractor must have the ability to obtain the CSty of Sacramento Bus,ness ltcense. 9. The contractor must present his bid proposal not in collusion with any other bidders. Page Z' Public ~orks Construction Contracts The following'criteria relate to past performance with t~e City of Sacramento or other comparable non-city projects. The City may evaluate the contractor's performance on other Jobs and any problems relating to t']ose'other jobs .in making a determination as to the responsibility of the c,~ntractor. These criteria include: a. Has the contractor been recently assessed liquidated damages for any project? b. Has the contractor been declared tn default on ~ny recent construc- tion contract assuming 'that the owner and/or managemen[ of the con- struction company is the same? ." c. Has the contractor been tn litigation on a ques'tton relating to past performance on a project or has the contractor performed acceptably on other comparable non-city projects? d. Has the contractor fafled to pay prevailing wages or other state and/or federally required' taxes or contrtbutionsZ e.ODes the contractor have an acceptable safety record ar been found to have v~olated OSHA standards and requirements? Lastly, the criteria wh'tch may be considered with respect to capability are as fol lows: 1. Does the contractor currently have uncompleted work with' the City of Sacramento or another jurisdiction0 which would prevent the timely completion of the project ~n questlon~ Z. Does the contractor possess the bonding capability and other necessary financial resources to satisfactorily complete the project? 3. Does the contractor possess or is the contractor capable of obtaln~ng necessary equipment, machin~i-y or work force to satisfactorily complete the project? These crtterta are intended to provide the City Council and the administration a basis for evaluating an apparent iow bidder. The contractor should use this criteria to determine his or her suitability to be awarded the contract tn question. The City Council and the administration may use additional appropriate criteria to 'evaluate a bidder, such criteria to be determined by the size, scope and nature of the proposed project. -:i?;/::.. :-" AMENDED IN SENATE AUGUST 26, 1988 -,.~:~:~ AMENDED IN SENATE AUGUST 8, 1988 ',. ?j · :~ ~_.. · :::~i'::.'. ' ~,. .... CALIFORNIA LEGISLATURE--1987-88 REGULAR SESSION · "~": ASSEMBLY BILL' No. '3045 : .. .:i~? Introduced by Assembly Member Floyd .~?, :.., .' i February 8, 1988 · ' ~ .~2., ', .~.( ·. ~:~ ". An act to add Section 1105 to the Public Contract Code, '.~."~: ' relating to public contracts. ":.~';? · LEGISLATIVE COUNSEL'S DIGEST ' :,'~." AB 3045, as amended, Floyd. Public works contracts. "':'J" :'. '~' The Public Contract Code contains ·various definitions. ~)~!,i~i.;;:.i This bill would add to the Public Contract Code the definition of "lowest bidder" or "lowest responsible bidder"' ~'ii.:,/' ~ '/i~?" '. for purposes of prescribed provisions. It would also prescribe ~.'~'.: ..~..~._certain factors .which may be considered by the awarding . '-?,~::. ' authority in determining the "lowest bidder" or the "lowest :'~.'".., ,. responsible bidder.' ..... ~,,'.:..~!: !~" Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: · ~- ~'i~-~:;." I SECTION 1. Section 1105 is added to the Public -?e,::' 2 Contract Code, to read: .,i%:' 3 1105. (a) "Lowest bidder" or "lowest responsible -~?~';'.~.:. 4 bidder," as used in this part, means a person who sUbmits ~. ',. 5 the lowest monetary bid which responds to the terms · '~!~"::' 6 upon which bids were requested, and who has the , ,ii~. ::.,. ,,.~ .... 7 capacity, integrity, and other attributes of responsibility ,.,.y.:(. 8 to perform the particular, requirements of the public ":~:.::~ -' 9 works contract. ,'.~72;. ) .~:.~5' . /?':~" I (b) Factors which may be considered by the awarding '?.' 2 authority in determining the "lowest bidder" or "lowest . ~'..~.' 3 responsible bidder" include, but are not limited to, all of ,.':~.? ~S:' : . ::' 4 the following: ,.6 · ':i!?)} 5 (1) The contractor's prior record of performance on · .:. '. 6 other public works projects, including timely completion .: ...,~,~:. :~,.'. 7 of performance, quality of work, and completion of ::':Z 8 projects within project budget or bid amount submitted. ,: ~-" 12 .: :': 13 (2) The contractor's involvement in any ongoing "' 14 litigation or contract disputes with the awarding .~. ,]',~... , 15 authority which could impair satisfactory performance .... 16 on the contract to be awarded. ' ~1 (3) The contractor's history of ~ compEancc "5'~? '. :"' ~ noncompliance with occupational safety and health g3 requirements, labor statutes and regulations, and "other ""' 24 local, state, and federal laws. ....,/~¢. '):.)~: . .~!:. '.'. :., ,. : '.; :. ";:~.,:. ,: ,.. .~ . . ,. ',,~.~: - :;... , . .,.~), , ~.~' .... · -. wv:'" .'. . .: ; .' .~}~, ,t . · - , "t" ,...'r)tt. s'~, ... ~.. . .:'..' . ',"~ ~. . '.. · .~:.. .;~..}:. .. . .: .. . .~ ~ .,,.,... . . ,. . . .~';~. · ~,.:,~'. . ,:.?;~: :., ,. . ~.,.~, Public WOrks Contracts AB 3045 - Legislative History as Described in League of California Cities Legislative Updates October 7, 1988 VETOED Public Works Contracts. AB 3045 (F]o~,d). Support. lhis proposed legislation would have changed the definition of "lowest bidder" and "lowest responsible bidder" to provide local governments more flexibility ' in choosing quality contractors for public works projects. Many cities are constrained by current law from choosing the most qualified contractor. (Referred to previously in Bulletins #14-1988, #31-1988, #32-1988.) September 8, 1988 REQUEST SIGNATURE Public Works Contracts. AB 3045 (Floyd). AB 3045 alters the definition of "lowest bidder" and "lowest responsible bidder" to provide local governments with more flexibility in choosing quality contractors for public works projects, lhe legislation permits the consideration of additional factors when a public agency chooses the lowest bidder or lowest responsible bidder, including the contractor's prior record of performance, the contractor's history of non-compliance with occupational safety and health requirements, labor statutes and regulations, as well as other federal, state and local laws. (Referred to previously in Bulletins #14-1988, #31-1988.) September 2, 1988 REQUEST SIGNATURE Public Works Contracts. AB' 3045 (Flosd). Sent to Governor. The Assembly concurred in Senate amendments and sent AB 3045'to the Governor's desk during this last week of the legislative session. The Legislature alters the definition of "lowest bidder" and "lowest responsible bidder" to provide local governments more flexibility in choosing quality contractors for public works projects. Most cities across the states are constrained by current law in choosing public works contractors. In some instances, the lowest bidder has not proven to be the best contractor who can deliver quality work. The legislation was amended in the latter days of August to permit the consideration of additional factors, when a public agency chooses the lowest bidder or lowest responsible bidder on a public works project. Factors include: the contractor's.prior record of performance and the contractor's history of noncompliance with occupational safety and health requirements, labor statutes and regulations as well as other federal state, and local laws. ' The League is asking for a signature on this legislation. (Referred to previously in Bulletin #14-1988.) April 15, 1988 REVIEW + COMMENT Public Works Contracts. AB 3045 (Floyd). Passes Assembly Governmental Efficiency and Consumer Protection Committee. Assembly Member Richard Floyd has introduced AB 3045 changing the definition of "lowest bidder" or "lowest responsible bidder" in the Public Contracts Code. Under the definition in AB 3045, "lowest bidder" or "lowest responsible bidder" as used in this part of the Public Contracts Code (it would add a new Section 1105) means a "person who submits the lowest monetary bid which responds to the terms upon which bids were requested, and who has the quality, fitness, capacity, integrity, and other attributes of responsibility to perform the particular requirements of the public works contract." AB 3045 gives a much greater amount of discretion for public agencies when choosing the most appropriate bidder on a public works contract. Many cities have voiced concern about the need for more flexibility to ensure that quality contractors are chosen. Please review the bill and send your comments to the League's Sacramento office. This will help League staff in lobbying this legislation. Copies of AB 3045 are available directly from the Capitol Bill Room at (9]6) 445-2323 or on CITYLINK. MEMORANDUM .. September 9, 1988 'TO~ HONORABLE MAYOR AND MEMBERS OF THE. CITY COUNCIL FROM: J. DALE HAWLEY, CITY MANAGER SUBJECT: SALARY ADJUSTMENT FOR CITY ATTORNEY " At the August 31, 1988 Closed Session, the Council was prohibited from discussing the salary adjustment for the City Attorney during the Closed Session. When the Council returned to the Council Chambers to adjourn, the matter was not raised. Art Saalfield is currently at Step 2 of the City Attorney salary schedule, $6,028.58 per month. He has received .such pay since his appointment as Interim City Attorney last October. Step 3 is $6,330.12. Step 4 is $6,646.80. (When Mr. Oberholzer left City employmen.t last October, he was making $6,684.92.) I would like to bring this matter to the Council's attention..Should " the Council elect to make a salary adjustment, it would be appropriate for it to be effective September 1, 1988. JDH.alb cc: Mr. Art Saalfield News Media Fil6 MEMORANDUM '- ~ ' -~ September 1, 1988 TO: ~ J. Dal'e Hawley ~' - · , ./.'i ~'"~':-~' ':~'-~ ' ~ City Manager FROM: Arthur J. Saalfiel~ " ' City Attorney ~~/. · _.~ ~.- . . SUBJECT: ATTORNEY ...~.,.~ · ~ "i~'~' '~ 'At this "morning's" closed session I ~'advi~ed the ~ Council that the Brown Act prohibited discussion of any salary '-~ adjustment in closed session. When the council returned to ~.' Council Chambers to adjourn, the matter wasn't raised. ' . Though, as we've discussed, I would be entitled to a step adjustment on October 26th (the one year anniversary of my interim appointment), because the Council appoints, you and me it seems more appropriate that the Council review and approve our step increases, rather than our just processing such increases administratively. The appropriate time for Council action on a salary adjustment is, arguably at least, when the Council has com- pleted its annual performance evaluation for either of us. I am currently at Step 2 of the City Attorney salary schedule, $6028.58 per month. (I have received such pay since my appointment as Interim City Attorney last October.) Step 3 is $6330.12. Step 4 is $6646.80. (When Mr. Oberholzer left City employment last October, he was making $6684.92.) I would appreciate your bringing this matter to the Council's attention at its 9/14/88 meeting, either with or without a recommendation. Should the Council elect to make a salary adjustment, it would be appropriate for it to be effective 9/1/88. AJS:sdf 4 M.HAWLEY18 Q MEMORANDUM TO: J. DALE HAWLEY, CITY MANAGER' FROM: E.W. SCHULZ, PUBLIC WORKS ~IANAGER ~ DATE: SEF£F24BER 1, 1988 SUBJECT: CORRESPONDENCE FROM WAYNE KELLER In February, 1988 Mr. Wayne Keller of the Electricians Union, Local No~ 428, presented the City with som~ recomm~nded changes for contract specifications on City contracts. The staff reviewed the material and expanded our specifications to include language regarding lowest "responsible" bidde~. We met with Mr. Keller on May 3, 1988 and reviewed our contract specifications with him and explained that we have addressed all of his concerns; however, the union's main thrust is to have language included in ~City Specifications which speci- fically' define the criteria for evaluating contractors (see attached). The staff and the City Attorney's office reviewed the union's proposal but did not recommend adding language to our specifications based on the following reasons: (1) Lowest ' "responsible" bidder allows the City to reject'a bid for numerous reasons. By listing the criteria to be considered, the City limits its opportunity for rejecting a bid. (2) The State's division of Industrial Relations has specifically advised the City that the City has no authority to investigate allegations that any contractor has failed to pay prevailing wage rates. The City's sole recourse is to report the sus- pected offenders to the State. (3) The City is required to hold a hearing prior to finding that a lowest bidder is "not responsible". We cannot make a single criterion dispositive of such issue and thereby preclude a decision following such hearing. (4) Several other cities were contacted and the con- sensus was that it is best not to include these criteria within the specifications but that they could be used as guidelines for recommending award of contracts. Therefore, the staff makes the following recommendations: (1) That the .criteria as presented by Mr. Keller be utilized by the Public Works Department as a guideline for the review of potential contractors. (2) That no additional change~ be made in specifications. PUBLIC WORKS CONSTRUCTION CONTRACTS The Sacramento City Charter and the California Publtc Contracts Code' require that' the City award construction contracts to the lowest responsive, respon- sible bidder. Where there is a. questton as to the'responslblltt? of a bidder, the Cl'ty Council will ~ke a determination on an individual 'case-by-case basis as to the responsibility of a bidder using any combination of the below'.descrtbed criteria. The Criteria that may be used by the City Council In judging the question of responsibility of a particular contractor Include 1) past performance criteria, and 2) capability. Further, the contractors must meet California state law .~ut remen ts: "1) lhe contractor must possess a California State Contractor t. tcense, ~ appltcabl, e' to the work to be performed. ~ 2~. lhe contractor must submit a btdderJ bond, otherwise known as bid security, through a bond, certified check or cash tn an amoun[ at least I0~ of the bid. Bid security must be available at the time of bid opening or the bid proposal will be considered non-responsive. )The contractor must have the ability to obtain Payment and Performance Bonds for the contract: amount: tn ~he time specified tn the contract document.  T he contractor must have the abil to obtain insurance described in the specifications and in the time required, ~S~ The contractor must list all subcontractors tn the bid proposal over one half of one percent in accordance with the California' Subcontract- ing Act. ~ The contractor must comply with applicable NDE, WDE or D~E requirements In terms of reaching the goals specified or making a good faith effort and have those efforts documented, lhe contractor must comply with all Affirmative Action requirements. ~ In case of grant funding, such as EPA, FAU or UMTA, the contractor must ,,..x meet all applicable requirements specified in the grant. The contractor must have the ability to obtain a California State Contractor license applicable ~o the work to be performed. ) T he contractor musl: have the ability to obtain the City of Sacramento Business license. The contractor must present his bid proposal not tn collusion with any other bidders. P~ge Z Public ~orks Construction Contracts The folio.lng criteria relate to past performance with the City of Sacramento or other comparable non-city projects. The City may evaluate the contractor's · performance on oLher Jobs and any problems relating to t'~ose olher jobs making a determination as to the responsibility of the o~nLractor. These criteria include: a. Has the contractor been recently assessed liquidated damages for any project? b. Has the contractor been declared tn default on ~mny recent construc- tion contract assuming 'that the owner and/or management of the con- struction company is the same? "' c. Has the contractor been in litigation on a question relating to past performance on a project or has the contractor performed acceptably on other comparable non-city projects7 d. Has the contractor failed to pay prevailing wages or other state and/or federally required taxes or contrtbutionsZ e. Ooes the contractor have an acceptable safety r~,cord ~r been found to have violated OSHA standards and requirements? Lastly, the criteria which may be'considered with respect to capability are as follows: 1. Does the contractor currently have uncompleted work with the City of Sacramento or another Jurisdiction, which would prevent the timely completion of the project tn questton~ 2. Does the contractor possess the bonding capability and other necessarj financial resources to satisfactorily complete the project? 3. Does the contractor possess or ts the contractor capable of obtaining necessary equipment, machinery or work force to satisfactoril~y complete the project? These criteria are intended to provide the City Council and the administration a basis for evaluating an apparent low bidder. The contractor should use this criteria to determine his or her suitability to be awarded the contract tn question. The City Council and the administration may use additional appropriate criteria to'evaluate a bidder, such criteria to be determined by the size, scope and nature of the proposed project. 1501 Truxtun Ave.ue Bakersfield, Cnlil'o.da 93:t }1 (805) 326-3724 DALE IIAWLEY, Ma.agcr IN'FERNAT[ONAL llRO'I.'IIERHOOD OF C{~ MA~A~,S OF~[C~ ELECTR.[ CAL WORKERS · 91l - 2Oth Street Bakersfield, CA 93301 Gent lemen: [n February, Mr. Wayne Keller of yonr organ.[zation prese.ted the Ci. ty with some recomme.ded changes for project speci[ical:ions on City contracts. The City staff has reviewed Mr. Keller's recommendaLio.n ami added lanm,~tge regarding lowest responsible bidder to the specificati, o.s. Sta[[ met with Mr. Keller explaining that the City's projecl: speci, fication.~ address all his co.cer.s; however, Hr. Keller req,~ested the Uity specifications specifically define the criteria for eval. nati.g contractors (see attached). Earlier this month we attempted to contact Mr. Kel. ler present his concerns to the City Council's Budget and I~i.ance CommJtl-ee and were informed thai: he .o longer works with you. If someone from your staff wouJd like to meet Wil:h the City to pnrsue this matter, please contact John Stinson, Assistant I:o the City Han;~ger at (805) 326-3751 or l)ia.e LaRochelle, City Engineering l)epart.m.t~ nt (805) We have al. so attached for your information a copy of A{3045 wh{ch revi~;en the defi,iti, on of "lowest responsible bidder." This shou.td provide local gover,ments more flexibility in choosing quality contractors. Very truty scHu z ¢ 5 Public Works Manager ~..~ 4 DHL :toro L92188 At tachments xc: J. Dale llawley, City Manager Public Works Contracts AB 3045 - Legislative History as Described in League of California Cities Legislative Updates October 7, 1988 VETOED Public Works Contracts. AB 3045 (F]o.yd1. Support. lhis proposed legislation would have changed the definition of "lowest bidder" and "lowest responsible bidder" to provide local governments more flexibility in choosing quality contractors for public works projects. Marly cities are constrained by current law from choosing the most qualified contractor. (Referred to previously in Bulletins #14-1988, #31-1988, #32-1988.) September 8, 1988 REQUEST SIGNATURE Public Works Contracts. AB 3045 (Flosd). AB 3045 alters the definition of "lowest bidder" and "lowest responsible bidder" to provide local governments with more flexibility in choosing quality contractors for public works projects. The legislation permits the consideration of additional factors when a public agency chooses tile lowest bidder or lowest responsible bidder, including tile contractor's prior record of performance, the contractor's history of non-compliance with occupational safety and health requirements, labor statutes and regulations, as well as other federal, state and local laws. (Referred to previously in Bulletins #14-1988, #31-1988.) September 2, 1988 REQUEST SIGNATURE Public Works Contracts. AB 3045 (Flo~,d). Sent to Governor. The Assembly concurred in Senate amendments and sent AB 3045 'to the Governor's desk during this last week of the legislative session. The Legislature alters the definition of "lowest bidder" and "lowest responsible bidder" to provide local governments more flexibility in choosing quality contractors for public works projects. Most cities across the states are constrained by current law in choosing public works contractors. In some instances, the lowest bidder has not proven to be the best contractor who can deliver quality work. The legislation was amended in the latter days of August to permit the consideration of additional factors, when a public agency chooses the lowest bidder or lowest responsible bidder on a public works project. Factors include: the contractor's prior record of performance and the contractor's history of noncompliance with occupational safety and health requirements, labor statutes and regulations as well as other federal, state, and local 1 aws. The League is asking for a signature on this legislation. (Referred to previously in Bulletin #]4-]988.) April 15, 1988 REVIEW:+ COMMENT Public Works Contracts. AB 3045 (Floyd). Passes Assembly Governmental Efficiency and Consumer Protection Committee. Assembly Member Richard Floyd has introduced AB 3045 changing the definition of "lowest bidder" or "lowest responsible bidder" in the Public Contracts Code. Under the definition in AB 3045, "lowest bidder" or "lowest responsible bidder" as used in this part of the Public Contracts Code (it would add a new Section 1105) means a "person who submits the lowest monetary bid which responds to the terms upon which bids were requested, and who has the qualitY, fitness, capacity, integrity, and other attributes of responsibility to perform the particular requirements of the public works contract." AB 3045 gives a much greater amount of discretion for public agencies when choosing the most appropriate bidder on a public works contract. Many cities have voiced concern about the need for more flexibility to ensure that quality contractors are chosen. Please review the bill and send your comments to the League's Sacramento office. This will help League staff in lobbying this legislation. Copies of AB 3045 are available directly from the Capitol Bill Room at (9]6) 445-2323 or on CIIYLINK. '~'~:~"'" AMENDED IN SENATE AUGUST 26, 1988 · ?¥::.~ '. AMENDED IN SENATE AUGUST 8, 1988 .. · :.~.~: · ..'.~,'.:, : CALIFORNIA LEGISLATURE--1987-88 REGULAR SESSION . · 'i~~'':'" ' :'. :i' ~:'~?!':' ' ASSEMBLY BILL· No. 3045 ':'. ': ~?'!,.,. ·. . :- .'.~ .,... - ';,~; :.: . ' "':.?it:.:'. -" " Introduced by Assembly Member Floyd -:V:~ .... '.".'::~.'V:: ' February 8, 1988 . ..,~;..:.;. ,, .~.. . "~ :;~. .. ~??.... · .~,. ': ~'":~:"'" An act to add Section 1105 to the Public Contract Code, . :.~.~ . · :~?..... relating to pubic contracts. · '.~.i~?. :. LEGIS~TIVE COUNSEL'S DIGEST .. '.."~-' :' AB 3045,. as amended, Floyd. Public works contracts. ~' The Public Contract Code contains various definitions. ".~.~ :~.~" This bill wo~d .add to the Public Contract Code the ...~ ~::.... definition of "lowest bidder" or "lowest responsible bidder" '. .~ ~/"" ' ~..... for purposes of prescribed provisions. It would also prescribe ' ~. .....~ .~.~::~ ~'~ ~ cert~n factors which may be considered by the awarding . ~',.~:..'.: ~'-' authority in determining the "lowest bidder" or the "lowest '"" . .::;~': :, . ,' -:.:' · .¥~::". responsible bidder." % Vote: majority. Appropriation: no. Fiscal committee: no. · :.'~? ~. State-mandated local program: no. ..~ . ;.,~?:.:. The people o[ the State o[ CMi[or~a do enact as [ollows: '"~.::~" I SECTION 1. Section 1105 is added to the Public ,.~.:~t.~.. 2 Contract Code, to read: .: ::'[~.~.::::. 3 1105. (a) "Lowest bidder" or "lowest responsible · ~'::' 4 bidder," as used in this part, me~s a person who submits ' ~,..-" 5 the lowest monetary bid which responds to the terms ."~"~ 6 upon which bids were requested, and who has the · ',~-~. 7 capacity, integrity, and other attributes of responsibility ... · ~:.~ ~.. · ~...?~:." 8 to perform the particular requirements of the public :t:~:.:..' 9 works contract. .~. ~ ~.~:~. · . "~,~.~. · .;:'~:ty .. ...... . ' '". q?: .. . .i :. /... AB 3045 -- 2-- '?:::: 1 (b) Factors which may be considered by the awarding '.::. 2 authority in determining the "lowest bidder" or "lowest .. 3 responsible bidder" include, but are not limited to, all of .. ::: 4 the following: ": .. 5 (1) The contractor's prior record of performance on ' ':ii.':. ~ 6 other public works projects, including timely completion ... " ... 7 of performance, quality of work, and completion of :-iii!{) :':.: 8 projects within project budget or bid amount submitted. '/',4~. 13 (2) The contractor's involvement in any ongoing 14 litigation or contract disPutes, with the awarding 15 authority which could impair satisfactory performance 16 on the contract to be awarded. 21 (3) The contractor's history of t4me~ .... ':~-^-, ' 22 noncompliance with occupational safety and health 23 requirements, labor statutes and regulations, and 'other 24 local, state, and federal laws ........ . .'5~ ,., · ~' ... ,y:, ,':: .. ",,~ . ' :"~f~:i: ' ' : -., :',~' ' ". '.'i :"~iig ~.,'. .: · ,¥.,. : ., ;.,..q:.' ' ";': L'.:, " '., · .': ,i:.. MEMORANDUM TO: J. DALE HAWLEY, CITY MANAGER' FROM: E.W. SCHULZ, PUBLIC WORKS ~IANAGER DATE: SEPTF~4BER 1, 1988 SUBJECT: CORRESPONDENCE FROM WAYNE KELLER In February, 1988 Mr. Wayne Keller of the Electricians Union, Local Nor 428, presented the City with some~ recommended changes for contract specifications on City contracts. The staff reviewed the material and expanded our specifications to include language regarding lowest "responsible" bidde~. We met with Mr. Keller on May 3, 1988 and reviewed our contract specifications with him and explained that we have addressed all of his concerns; however, the union's main thrust is to have language included in City Specifications which speci- ~ fically' define the criteria for evaluating contractors (see attached). The staff and the City Attorney's office reviewed the union's proposal but did not recommend adding, language Go our specifications based on the following reasons: (1) 'Lowest ~ "responsible'' bidder allows the City to reject~a bid for numerous reasons. By listing the criteria to be considered, the City limits its opportunity for rejecting a bid. (2) The State's division of Indus[rial Relations has specifically advised the City that the City has no authority to investigate allegations that any contractor has failed to pay prevailing wage rates. The CitY's sole recourse is to report the sus- 'pected~offenders to the State. (3) The city is required to hold a hearing prior to finding that a lowest bidder is "not responsible". We cannot make a single criterion dispositive of such issue and thereby preclude a decision following such hearing. (4) Several other cities were contacted and the con- sensus was that it is best not to include these criteria within the specifications, but that they could be used as guidelines for recomm3nding award of contracts. Therefore, the staff makes the following reconm~,ndations: (1) That the .criteria as presented by Mr. Keller be utilized by the Public Works Department as a guideline fo~. the review of potential contractors. (2) That no additional changes be made in specifications. 4:M-9188 PUBLIC WORKS CONSTRUCTION CONTRACTS The Sacramento Ctty Charter and the California Public Contracts Code' requfre that the City award construction contracts to the lowest responsive, respon- sible bidder. Where there ts a. question as to 'the'responsibility of a bidder, the Cl'ty Council will ~ke a determination on an indtvtdual'case-by-case basis as to the responsibility of a bidder using any combination of the below:described criteria. The criteria that n~y be used by the City Counctl In judging the question of responsibility of a particular contractor include 1) past performance criteria, and 2) capability. Further, the contractors must meet California state law requirements: 1. The contraj:tor must possess a California State Contractor License, applicable to the work to be performed... 2. The contractor must submit a bidders bond, otherwise known as bid security, through a bond, certified check or cash tn an amount at least 10~ of the bid. Bid security must be available'at the time of bid opening or the bid proposal will be considered non-responsive. 3. The contractor must have the ability to obtain Payment and Performance Bonds for the contract amount tn the time specified in the contract document. · 4. The contractor must have the ability to obtain Insurance as described in the specifications and in the time required. 5. The contractor must list all subcontractors in the bid proposal 'over one half of one percent in accordance with the California Subcontract- ing Act. 6. The-contractor must comply with applicable MBE, WI3E or DSE requirements in terms of reaching the goals specified or making a good faith effort and have those efforts documented, lhe contractor must comply with all Affirmative Action requirements. 7. In case of grant funding, such as EPA, FAU or UMTA, the contractor must meet all applicable requirements specified in the grant. The contractor must have the ability to obtain a California State Contractor license applicable to the work to be performed. 8. The contractor musl: have the ability to obtain the City of Sacramento Business license. 9. The contractor must present his bid proposal not tn collusion with any other bidders. Page 2 Public Works Construction Contracts The following criteria relate to past performance with tqe City of Sacramento or other comparable non-city projects. The City may evaluate the contractor's performance on other jobs and any problems relating to tl]ose other jobs in ~king a determination as to the responsibility of the o)ntractor. These criteria include: a. Has the'contractor been recently assessed liquidated damages for any project? b. Has the contractor been declared in default on ~ny recent construc- tion contract assuming 'that the owner and/or ma~agement of the con- struction company is the same? c. Has the contractor been in litigation on a question relating to past performance on a project or has the contractor performed acceptably on other comparabl.e non-city projects? d. Has the contractor failed to pay prevailing wag(:s or other state and/or federally required taxes or contributions? e. Does the contractor 'have an acceptable safety ri:cord ~r been found to have violated OSHA standards and requirements? Lastly, the criteria which may be considered with respect to capability are as follows: 1. Does the contractor currently have uncompleted work with the City of Sacramento or another Jurisdiction, which would prevent the timely completion of the project in question? 2. Does the contractor possess the bonding capability arId other necessary financial resources to satisfactorily complete the project? 3. Does t]he contractor possess or is the contractor capable of obtaining necessary equipment, machineYy or work force to satisfactorily complete the project? These criteria are intended .to provide the City Council and the administration a basis for evaluating an apparent low bidder. The contr'actor should use this criteria to determine his or her suitability to be award(d the contract in question. The City Council and the administration may use additional appropriate criteria to'evaluate a bidder, such criteria to be determined by the size, scope and nature of the proposed project. City Contract No. ~'."'.'.' ......... '-.'":~---: Public-Private Cooperative Agreement 87-50" for Economic Development in Kern County THIS AGREEMENT, made and entered into on ~'~R 1719a7 , 1987, by and among the County of Kern, a political subdivision of the State of California (hereafter "County"), the Kern County Board of Trade, an agency of the County of Kern (hereafter "Board of Trade"), the City of Bakersfield, a municipal corporation organized and existing under the laws of the State of California (hereafter "City"), and the Kern Economic Development Corporation, a California non-profit public benefit corporation (hereafter "Corporation"), WI TNES SETH: WHEREAS, traditionally the health of Kern County's economy fluctuates with and directly reflects the strength of its two major industries, agriculture and oil; and WHEREAS, the recent economic downturn experienced by those two major industries has devastated the personal lives of thousands of agriculture and oll workers and demonstrated a critical need to expand and diversify the County's economic base; and WHEREAS, recognizing the need to aggressively seek out business and industry, on December 22, 1986, a group of community and business leaders formed the Kern Economic Development Corporation, a nonprofit public benefit corporation dedicated to attracting new industry to the County; and WHEREAS, the Corporation has requested the County, the City and the Board of Trade support and cooperate with it in its efforts to seek out and locate new business in Kern County; and WHEREAS, California Government Code section 26100 authorizes the Board of Supervisors of the County to induce immigration to and increase the commerce of Kern County, and to do so in cooperation with or jointly by contract with other agencies, associations or corporations; and WHEREAS, on January 20, 1987, the Board of Supervisors of the County formally endorsed the concept of a Joint public- private effort to attract new industry to Kern COunty; and WHEREAS, the affordable land, manpower, exceptional educational institutions, and excellent rail and freeway transportation facilities available in Kern County, make it appropriate that the effort to attract new industries be undertaken at this time; and WHEREAS, the County, the Board of Trade, the City and the Corporation desire to formalize their understanding of the contribution each party is to make and the activities each party is to undertake in this effort and to establish procedures that will insure countywide participation, cooperation and benefits in this effort; NOW, THEREFORE, it is mutually agreed as follows: 1. STATEMENT OF PURPOSE a. This agreement creates the Kern County Economic DeveloPment Council, a broad-based countywide agency comprised of representatives of the public and private sectors concerned with developing, diversifying and thereby strengthening the economy of Kern County; and charge that agency with the task of providing guidance to the separate and joint efforts of the Board of Trade and Corporation to attract to, .and maintain industry in, Kern County. (1) In particular, the Council shall advise, support and assist the Corporation in its undertaking of an aggressive outreach program and the Board of Trade in its promotional activities and special projects; (2) The Council shall serve as an informational channel between and among the County, the City, the Board of Trade. and the Corporation and the rural and urban communities and citizens of Kern County. b. This agreement provides a structure, as depicted on the diagrams marked Exhibit "A" (current structure) and Exhibit "B" (intended future structure) attached hereto, and procedure that will enable government and private industry to coordinate their efforts and resources in promoting the economic diversification and development of Kern County. c. This agreement also provides for the scheduled review of the working structure as it is the parties' intent that, as Circumstances permit, the activities and personnel of the Board of Trade and the Corporation will be combined to effect cost savings and efficiency; and toward that end, on or before April 1, 1989 and at least annually thereafter, the parties shall formally consider modifying this agreement in an effort to move toward a public-private partnership structured in the manner depicted in Exhibit "B", attached hereto. 3 2. KERN COUNTY ECONOMIC DEVELOPMENT COUNCIL There is hereby created the Kern County Economic Development Council ("Council"). a. Membership - The Council shall consist of: (1) Board of Directors of the Kern Economic Development Corporation, (2) Board of Directors of the Board of Trade, (3) The Chairman or a designated representative of the Board of supervisors, (4) The Mayor of the City of Bakersfield, (5) A representative of each incorporated city within Kern County to b~ designated by.its city council, (6) A representative of each Chamber of Commerce within Kern Oounty, to be designated by its Chamber; a current listing of the Chambers of Commerce and'business, visitors and improvement associations is attached to this agreement, marked Exhibit "C" and incorporated herein by this reference, (7) A representative of each business, visitors and improvement association within Kern County, to be designated by its governing board, (8) A representative of each Local Development Corporation within Kern County, designated by its Board of Directors, (9) A designated representative from each unincorporated community within Kern County to be appointed by 4 Board of Supervisors when the Council determines that an area constitutes a "community," (10) Such other representatives as the Council may, by majority vote, approve from time to time, b. Duties - The Council shall: (1) Provide recommendations to the Corporation and the Board of Trade on all matters pertaining to economic develop- ment and promotional activities, (2) Review proposed and accomplished activities of the Corporation and the Board of Trade, (3) Assess the performance of and evaluate the benefit, productivity and impact of the activities of the Corporation and the Board of Trade, (4) Through its individual members, solicit the input and participation of local businesses, (5) Assist the Corporation and the Board of Trade in identifying economic development opportunities and promotional strategies, (6) Make recommendations regarding staffing, organization, and other business matters of the Corporation and the Board of Trade. c. Procedures (1) The entity, organization, Or community appointing each Council member shall be responsible for all costs associated with its representative's participation in Council activities, i.e., travel, lodging, per diem, etc. (2) The Council shall develop its own procedures for the conduct of its business. % (3) The President of the Gorporation shall serve as secretary to the Council. (4) The Chairperson of the Board of Directors of the Corporation shall serve as Ghairman of the Gouncil until such time as the Gouncil determines otherwise. (5) Each representative and its sponsoring agency may provide support to the Council, i.e., red carpet tours for potential businesses, funds, staff time, materials, supplies, accommodations, etc. 3. THE KERN ECONOMIC DEVELOPMENT CORPORATION The Corporation is a nonprofit, public benefit corporation organized for the purpose of attracting new business and industry in Kern County, to retain existing industry and businesses currently located in Kern County, t° compile a comprehensive data base to be used in attracting and retaint~g industry, and to support the development of a skilled and experienced labor force and educational programs to assure a source of talent for industry. a. Activities and Duties. To accomplish its Purposes, Corporation shall: (1) Initiate and maintain an integrated development program for Kern County, and its cities and communities aimed at attracting new businesses to diversify Kern County's economic base through target marketing to prospective users; (2) Encourage and provide a supportive cllmate for economic growth and the conduct of business and industry by facilitating compliance with government regulations at all levels by streamlining procedures for permitting and other processes, where possible; (3) Actively seek out desirable businesses and industries looking to expand or relocate and assist them in locating in Kern County; (4) Make every effort to reach and to assist existing businesses and industries located within Kern County with their expansion plans; (5) Impartially serve all communities within Kern County; (6) Maintain a solid and continuing base of support from the County, the City, the Board of Trade and supporting agencies and organizations to maximize the Corporation's effectiveness; (?) Advocate and facilitate the cooperative efforts between the private and public sectors; (8) Promote and assist in the development of community support facilities which enhance the desirability of Kern County and'its communities; (9) Make efficient and effective use of the resources supplied by the Board of Trade, the County, and the. City; (10) Keep the Council informed of its activities; (11) Consider the recommendations of the Council; (12) Solicit funding from private sources in support of the Corporation and the Council and their activities. (13) Develop statistical research, studies and reports regarding demographics, business and industry data and other data relevant to actual and potential ecomontc development in Kern County. b. Board of Directors. The eleven member Board of Directors of the Corporation shall consist of: (1) One member appointed by the Board of Supervisors of the County.of Kern; (2) One member.appointed by the Board of Trade; (3) One member appointed by the City Council of the City of Bakersfield; (4) Two members appointed bY the Kern County Association of Cities; (5) Six members representing the private sector; the original incorporators shall select the initial six private sector members and their replacements shall be selected and appointed by the then remaining private sector members of the Board of Directors. c. Annual Funding. The Corporation shall provide no less than $100,000 annually from private sources to enable it to undertake its activities. On or before July 1, 1987 and every year thereafter on or before April 1, the Corporation shall fur-- nish to all parties written evidence that such sum is or will be available prior to October i of the subsequent fiscal year for Corporation's use. 8 d. Personnel. The Corporation shall select and hire a President and his or her secretary who shall be full-time employees of the Corporation. All wages and employee benefits of such employees shall be the full and exclusive liability of the Corporation, which shall comply with all laws and regulations governing their employment, including but not limited to, the provision of workers' compensation insurance. (1) In addition to his or her duties to the Corporation, the President shall: (a) Serve as secretary to the Council, (b) Keep the Gouncil informed on the Corporation's economic development activities, (c) Supervise his or her staff, including those County employees specifically designated and charged with working under the supervision of the President. (2) The President shall cooperate fully with the Manager of the Board of Trade in the use of manpower, equipment, and facilities located at 2101 Oak Street, Bakersfield, California, and in the time demands placed on the Board of . Trade's employees supplying support services to the Corporation. e. Office Furnishings. The Corporation shall provide all office furnishings for its President and his or her secretary and all other Corporation employees. All such personal property shall be and remain the property of the Corporation. f. Annual Budget and Program Activities. Annually on or before April 1, the Gorporatton shall prepare its budget and a program of activities to be undertaken in furtherance of its 9 purposes and cooperative activities and submit the same to the County and the City for review and approval as to their ' respective contributions to the Corporation's activities. g. Independent Contractor. In relation to all other parties to this agreement and in undertaking activities pursuant to this agreement, Corporation shall be an independent contractor and shall not be deemed the agent of the other parties. 4. BOARD OF TRADE a. The Board of Trade shall undertake the following activities in support of the partnership mission: (1) Organize and manage special projects and exhibits that promote the economic interests of Kern County, including but not limited to, the annual Kern County Business Outlook Conference, annual Agricultural Tour, Export Trade Seminar, biennial Kern Products Dinner for State Legislators in Sacramento, annual Outdoor Writers' Tour, and other meetings and events; exhibits and displays at the California State Fair, Los Angeles County Fair, Kern County Civic Center, Kern County Air Terminal, Buttonwillow and Interstate 5 rest areas; and act as liaison with the California Chamber of Commerce, the California Department of Commerce, auto clubs and other regional public and private organizations in connection with the promotion and development of Kern County; (2) Produce and publish promotional materials, brochures, pamphlets, newsletters, and other publications; ($) Perform statistical research, studies and reports regarding demographics, business and industry data and 10 other data relevant to its mission; (4) Promote tourism and film-making in Kern County; (5) Prepare and recommend contracts for funding Chambers of Commerce to the Board of Supervisors; (6) Prepare resolutions and proclamations honoring or recognizing.significant individuals, achievements and events as requested by the Board of Supervisors or other parties. b. In direct support of the Corporation and its activities the Board of Trade shall supply the Corporation the following: (1) Access to all of its reports, studies, informa- tion and data relating to demographics, business, industry, sales and property and other data helpful to Corporation; (2) Reasonable assistanCe in developing the statis- tical information needed by the Corporation to perform its activities (all information developed by the partnership shall be public information); (3) Referral of information from the California Department of Commerce relating to potential opportunities to attract business and industry to Kern County; (4) Office space for use of the Corporation at the Board of Trade facility located at 2101 Oak Street, Bakersfield, California: (a) Consisting of two offices for the exclusive use of the Corporation; (b) The 3oint use Of reception and meeting areas; (c) All remodeling costs (estimated to be $7600) to be paid by Corporation; (d) All improvements made and affixed to the premises shall become the property of the County; (e) All office space provided by the Board of Trade to the Corporation shall be maintained by the Board of Trade including janitorial services, maintenance, and utilities provided the annual· cost.of such items does not exceed $3,000; (5) Office supplies and services, including duplicating, mailing (postage), telephone, equipment rental, publications, maps, and brochures at a cost not to exceed $12,700 annually; (6) Data processing equipment, consisting of two personal computers, one printer, necessary software, and maintenance of such equipment at a cost not to exceed $9684 for the 1987-88 fiscal year; (7) The part-time services of the current Assistant Manager of the Board of Trade. It is estimated that the Assistant Manager will devote 80% of her time to the Corporation's activities. While performing work for the Corporation the Assistant Manager shall be under the immediate supervision of the President of the Corporation but shall remain an employee of the County, and all wages and employee benefits shall be paid tn full by the County from its.annual contribu- tion. The County shall pay the travel expenses of the Assistant Manager while on the Corporation's business provided such expenses do not exceed $3',000 annually. 12 ¢. With the exception of time devoted by the Assistant Manager of the Board of Trade to the Corporation's activities, no other County employee shall be assigned to work directly for the Corporation, but the entire staff of the Board of Trade shall cooperate with the President of the Corporation and be available to support and assist the Gorporation in its marketinG and outreach efforts with the full resources of the Board of Trade. d. The Board of Directors, the Manager and all employees of the Board of Trade shall cooperate fully with the President of the Gorporatton. S. COUNTY SUPPORT The County shall continue to approve the annual budget and fund the Board of Trade at no less than its current (1986-87) level throughout the term of this agreement. In addition for the 1987-88 fiscal year, the Gounty shall provide funds to the Board of Trade in its budget in an amount not to exceed $30,000 to permit the Board of Trade to provide the Corporation the services and support described' in paragraph 4 above and for which costs are estimated therein. These additional funds shall be reviewed annually by the Gounty to determine if and to what.extent their continuation is needed for subsequent fiscal years. Any further or additional contributions to Oorporation's activities shall be subject to approval of the Board of Supervisors of County. 6. CITY SUPPORT The City shall provide the Gorporation $50,000 annually; such sum shall be deposited with Corporation on or before October 1, 1987 and on or before October 1 each year thereafter throughout the term of this agreement. Any further or 13 additional support from'the City shall be subject to approval of the City Council of City. 7. TERM a. This Agreement shall remain in full force and effect through June 30, 1992, and may be renewed for additional five year terms if the parties so agree. b. At the end of the term of this agreement, if not renewed or otherwise extended, or upon termination of County's participation in this agreement, if Gounty so requests, the Gorporation shall abandon the premises at 2101 Oak Street, Bakersfield, California, and return all equipment and supplies to the party that contributed the item. c. This agreement is intended as a first step toward an effective and continuing public-Private partnership. d. The parties shall review annually on or before April 1 the results of the efforts undertaken pursuant to this agree- ment and determine whether it is feasible and beneficial to consolidate further the promotional and economic development activities performed by the Board of Trade and the Gorporation respectively. Such annual review may include an examination of changing circumstances, needs and opportunities and at that time the parties may modify the terms of this agreement. Each party reserves the right to terminate its participation in this agreement ~or any subsequent fiscal year by delivering written notice thereof to all parties on or before May 15. 8'. PARTIES' LIABILITY Each party shall be liable only for its own debts, liabilities, and obligations. No party shall be 14 liable in any way for the debts, liabilities, and obligations of any other party. County shall be liable only for its own employees, including the Assistant Manager, and damages arising from their acts. City shall be liable only for its employees and damages arising from their acts. Corporation shall be liable for its own employees and damages arising from their acts. Except as explicitly provided for by this agreement, no debt, liability, or obligation of any one party to this agreement shall constitute the debt, liability or obligation of any of the other parties to this agreement. Each of the parties to this agreement shall indemnify and hold harmless the other parties to this agreement for any damages, costs, or liabilities arising out of the acts or omissions of its own officers, agents, and employees. 9. INSURANCE The Corporation shall, at Corporation's expense, maintain in effect at all times during the performance of activities hereunder automobile insurance on any automobile of Corporation or its personnel used hereunder at least at the level required by California State law and name the County and City as additionally-named insureds. 10. MERGER AND MODIFICATIONS This agreement sets forth the entire understanding between the parties and supersedes all other oral or written provisions. ll. ASSIGNMENT The rights and duties described herein shall not be assigned without the prior written consent, of the parties hereto. 12. PLEDGE OF COOPERATION Each of the parties hereto 15 pledges its cooperation to the other parties hereto in the accomplishment of the purposes of this agreement. 13. SEVERABILITY Should any part, term, portion, or provision of this agreement be finally decided to be in conflict with any law of the United States or of the State of California, or otherwise be unenforceable or ineffectual, the validity of the remaining parts, terms, portions or provisions shall be deemed severable and shall not be affected thereby, provided such remaining portions or provisions can be construed in substance to constitute the agreement which the parties intended to enter into in the first instance. 14. EFFECTIVE DATE OF AGREEMENT This agreement shall be effective commencing with the day and year first written above. 15. WAIVER OF DEFAULT The failure of any party to enforce against another a provision of this Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time and shall not serve to vary the terms of this Agreement. 16. FORUM Any lawsuit pertaining to any matter arising under or growing out of this contract shall be instituted in Kern County, California. 17. TIME Time is of the essence in this Agreement. 18. HEADINGS All paragraph or section captions are for reference only and shall not be considered in construing'this Agreement. 19. NOTICES. All notices relative to this Agreement shall be given in writing and shall be sent by certified or registered 16 mail and be effective upon depositing in the United States mail. The parties shall be addressed as follows, or at any other address designed by notice: County of Kern 1415 Truxtun Avenue Bakersfield, California 93301 Kern County Board of Trade 2101 Oak Street Bakersfield, California 93301 City of Bakersfield City Hall 1501Truxtun Avenue Bakersfield, California 93301 Kern Economic Development Corporation c/o Dr. Harry Kelsey, Jr. California State College, Bakersfield 9001Stockdale Highway Bakersfield, California 93311-1099 20. BINDING EFFECT The rights and obligations of this agreement shall inure to the benefit of, and be binding upon, the parties to the contract and their heirs, administrators, executors, personal representatives, successors and assigns. 21. CORPORATE AUTHORITY Each individual executing this agreement represents and warrants that they are duly authorized to execute and deliver this agreement on behalf of the entity he or she represents and that this agreement is binding upon said entity in accordance with its terms. 22. EQUAL EMPLOYMENT PROVISIONS During the term of this agreement, the Corporation shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, or national origin. The Corporation will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, creed, color, sex, or national origin. IN WITNESS WHEREOF,.the parties have caused this agreement to be executed by their respective authorized officers and agents. COUNTY OF KERN "County" Recommended and Approved KERN COUNTY BOA.RD OF TRADE ~;'I~.6..'fX:L, ~'~'~'~' 'ha an~ Bjard of Directors James Radoumis, Gen. Manage~ / ~/  "Board of T~ade" APproved as to Fo~m CITY OF BAKERSFIELD Offfce ~County Counsel B.C. Barmann, County Counsel Mayor / ' "City" Approved as/~o Form / /--' ~ ~ . KERN EDONOMIC DEVELOPMENT Approved City of Bakersfield ///~ "Corporation" /inirector Approved by the Council of the City of Bakersfield at a reEular meetinE on Mar~h 25, 1987. BCB:TG:fd 18 ORGANIZATIONAL STRUCTURE : KERN ECONOMIC DEVELOPMENT cOuNCIL :B.OARD OF TRADE~ :KERN ECONOMIC DEVELOF'MENT CORP.: MANAGER ~ ~. PRESIDENT ~ ~ ASSISTANT ~ ~ ~ ~ MANAGER 20% ~ ; ~ ~ : SECRETARY :COMMUNICATIONS : : :SPECIALIST : :ASSISTANT MANAGER 80%: F'RINCIPAL SECRETARY 2 WORD PROCESSING TECHNICIANS EXHIBIT "A" ,' ,' Corporation's Directors IKERN CDUNTY ECDNOHIC DEVELOPMENT COUNCILI ( Board of Trade's Directors ,' ,' Representative o{ Board of Supervisors Mayor~ City o{ Batersfield : Representative of each city council : Representative of each chaiber of coiierce I Representative of each local development corp. ................... Representatives {rom unincorporated communities ' KERN ECONOMIC '' I DEVELOPMENT CORP, ,' PRESIDENT :tions as defined Functions as defined in Paragraph 4 in Paragraph $ EXHIBIT 'B' DIRECTORY OF CHAMBERS OF COMMERCE IN KERN COUNTY ARVIN CHAMBER OF COMMERCE GREATER FRAZIER PARK CHAMBER OF COMMERCE Pres. Rev. Frank Michael* Pres. Bill Howell* Sec'y-Manager Mrs. Joyce Robinson** Sec'y Bud Burrow** P. O. Box 192 (805) 854-4473* P.O. Box 763 (805) 245-1500 W.* Arvin, 93203 854-2265** Frazier Park, 93225 248-6247** W. Meetings: 1st Monday (Board) Meetings: 2nd Wed./7: 30 p.m. 3rd Monday (Regular) C~,u~unity Hall Arvin Congregational Church/12 noon GREATER BAKERSFIELD CHAMBER OF COMMERCE INYOKERN CHAMBER OF COMMERCE Pres. Bart Hill Pres. Leroy Marquardt* Exec. V.P. Douglas A. Yavanian** Sec'y Peggy Breeden** P. O. Box 1947 (805) 327-4421'* P.O. Box 232 (619) 377-4532* W. Bakersfield, 93303 Inyokern, 93527 377-5772** H. Meetings: As scheduled Meetings: Last Tues. by C~mittee Town Hall 7:30 p.m. BORON CHAMBER OF COMMERCE KERN COUNTY BOARD OF TRADE Pres. Darrell D. Odgen* Pres. Mrs. Judy Salamacha Sec'y Mrs. Betty Dyson** Manager James Radoumis** P. O. Box 281 (619) 762-5070* W. P.O. Bin 1312 (805) 861-2367'* Boron, 93516 762-6288** W. Bakersfield, 93302 Meetings: 2nd Tues./12 noon Meetings: 2nd Wed./3 p.m Boron Museum 4th Tues./7 p.m. Board of Trade Conference Room BUTTONWILLOW CHAMBER OF COMMERCE & AG. KERN COUNTY HISPANIC CHAMBER OF COMMERCE Pres. Mrs. Barbara Blair* o Pres. John Enriquez Sec'y Sharon ~hilarduccci** Sec'y Julian Feloteo P. O. Box 251 (805) 764-5528* H. P.O. Box 30289 (805) 327-0730 Buttonwillow, 93206 764-5406** Bakersfield, 93385 Meetings: 3rd Thurs./7: 00 p.m. Meetings: 3rd Wed ./6: 30 p.m. Chamber Office Beale Library CALIFORNIA CITY CHAMBER OF COMMERCE KERN RIVER VALLEY VISITORS COUNCIL Pres. Mrs. Colleen Moser* Pres. Mrs. Patricia Norris* Exec. Sec'y Chamber office** Sec'y Mrs. Marge Allen** P. O. Box 2181 (619) 373-8021' W. Box "0" (619) 379-3206* California City, 93505 373-8676** Lake Isabella, 93240 376-2733** W. Meetings: 1st Thurs. (Board) Meetings: 4th Tues./12 noon As announced 6:30 p.m. Westport Inn 3rd Thurs. (Reg.) 6:30 p.m. DELANO DISTRICT CHAMBER OF COMMERCE KERNVILLE CHAMBER OF COMMERCE Pres. Tony Martinez* 'Pres. Mike Preston* Exec. V.P. Mrs. Dorothy Knight** Sec'y Mrs. Rose Ann viton** 931 High Street (805) 725-7055* W. P.O. BOx .397 (619) 376-2424* W. Delano, 93215 725-2518'* Kernville, 93238 376-2629** Meetings: 3rd Tues./7 p.m. Meetings: 2nd Fri.(Board) 12 noon Chamber Office Chamber Hall 4th Mon.(Reg.) 7:30 p.m. EXHIBIT "C" SHAMBER DIRECTORY Pa%_ 2 LAKE ISABELLA CHAMBER OF COMMERCE ROSAMOND CHAMBER OF COMMERCE Pres. Miriam Wilsun* Pres. Glen King* Sec'y Eugene Parks** Manager Mrs. Peggy Shult** P. O. Box 567 (619) 379-3684* W. P.O. Box 365 (805) 256-2538* H. Lake Isabella, 93240 379-5236** W. 2654 Diamond St. 256-3248** W. Meetings: 2nd Thurs. (Board) 12 noon Rosamond, 93560 Mon., Wed., Fri./10 a.m-4 p.m. Santa Barbara Savings Meetings: 1st & 3rd Thurs./7 p.m. 4th Thurs. (Reg.) 7 p.m. Community Building Veterans Hall LAMONT CHAMBER OF COMMERCE ROSEDALE HIGHWAY BUSINESS ASSOCIATION Pres. Joe Holbert* Pres. Mrs. Selma Bartell P. O. Box 593 (805) 845-1264 2001 Calloway Dr. (805) 589-0353 W. Lamont, 93241 Bakersfield, 93312 Meetings: ~ 2nd Tues/12 noon Meetings: 3rd Tues./ll: 30 a.m. Casa Lopez LOST HILLS CIVIC ASSOCIATION SHAFTER CHAMBER OF COMMERCE & AG. Pres. Mrs. Judy Garcia Pres. John Conley* P. O. Box 315 (805) 797-2626 W. Sec'y-Manager Ben Grundy** Lost Hills, 93249 797-2871 H. P. 0 Box 1088 (805) 758-6403* Meetings: 4th-Mon./7:30 p.m. Shafter, 93263 746-2600** Lost Hills Cu~u~unity Bldg. Meetings: 2nd & 4th Fridays JD'S 12 noon MOJAVE CHAMBER OF COMMERCE' TAFT DISTRICT CHAMBER OF COMMERCE Pres. Curt Skelton Pres. Dave Farr Sec'y Mrs. Val Belden** Manager Mrs. Mona Moon** 15836 Sierra Highway (805) 824-2481'* 314 - 4th Street (805) 765-2165'* Mojave, 93501 Tues-Thurs/10 a.m./2 p.m. Taft, 93268 Meetings: 2r~ & 4th Thurs./ Meetings: 2nd Wed. (Board) 7:30 p.m. Reno's Sierra 7:30 a.m. Great Western Conf. Rm. Rooms NORTH OF THE RIVER CHAMBER OF COMMERCE GREATER TEHACHAPI CHAMBER OF COMMERCE Pres. Dick Laughman* Pres. Jack Conley* Sec'y Camel ia Lovets** Bus. Manager Cheryl Hoffman** 3701 Pegasus Drive, (805) 399-7602* W. P.O. Box 401 (805) 822-6801' W. Suite 103 395-7842** W. Tehachapi, 93561 822-4180'* Bakersfield, 93308 Meetings: Tues./12 noon Meetings: 1st Mon./6: 30 p.m. E1 Charro Avitia Hodels, Olive Drive RAND IMPROVEMENT ORGANIzATIoN (TRIO) WASC0 CHAMBER OF COMMERCE & AG. Pres. Mrs. Lorraine Ainsworth* Pres. Mrs. Glenda Santillan* Sec'y Mrs. Maggie Clark** Off. Manager Mrs. Jody Burr** P.O. Box 193 (619) 374-2209* 652 "E" Street (805) 758-3045* W. Johannesburg, 93528 374-2216'* Wasco, 93280 758-2746** Meetings: 2nd Thurs./7: 30 p.m. Meetings: 1st Thurs./7: 00 p.m. Ca,,nunity Building Chamber office RIDGECREST CHAMBER OF COMMERCE WOFFORD HEIGHTS IMPROVEMENT GROUP Pres. Nellavan Leckey* Pres. Marilyn Saunders* Exec. Dir. Ms. Pat Farlander** Sec'y Barbara Boston** P. O. BOx 771 (619) 375-4001' W. P.O. BOx 341 (619) 376-6465* W. Ridgecrest, 93555 375-8331'* Wofford Heights, 93285 376-6465** W. Meetings: 2nd Tues./12 noon Meetings: 3rd Tues./7: 30 p.m. ?lideaway E1 Segundo Rod & Gun Club ADMINISTRATIVE OFFICE ADMINISTRATION AND COURTS BUILDING COUNTY ADMINISTRATIVE OFFICER 1415 Truxtun Avenue~ Grow Te¥~r BakerHield, California-93301 Telephone (8~) 861-2371 0 July 20, 1988 Mr. Dale Hawley, Manager City of Bakersfield 150! Truxtun Avenue Bakersfield, CA 93301 RE: PUBLIC-PRIVATE COOPERATIVE AGREEMENT FOR ECONOMIC DEVELOPMENT IN KERN COUNTY On July 19, 1988 the Board of Supervisors approved the attached amendments to the referenced agreement. It has also been approved by the Kern Economic Development Corporation (KEDC). As the attached cover letter indicates, the primary change accomplished by this agreement is to shift more economic development responsibilities to the KEDC and away from the Board of Trade. The Assistant Board of Trade Manager position is eliminated and contract funds provided to KEDC to perform those services. The City of Bakersfield is a participant in the agreement and your concurrence with the proposed amendments is requested. Once you approve the amended agreement, please sign all three copies of the enclosed document. Retain one copy for your files, and return two to this office. Thank you-for your cooperation in this matter. Should you or any of your staff have questions, please contact 3oel He~nrichs, Director, Policy Analysis & Intergovernmental Relations. Since~.~:, ly County IBtlmini~trative Officer GT/JH/ka/~hcob ADMINISTRATIVE OFFICE A~¥NISTRATION AND COURTS BUILDING COUNTY A~INISTRATIVE OFFICER 1415 T~xtun Avenue ~ Gm~ T~r Telepho~ (8~) 861-2~1 ~ Board of Supervisors County of Kern 1415 Truxtun Avenue Bakersfield, CA 93301 RE: PUBLIC-PRIVATE COOPERATIVE AGREEMENT FOR ECONOMIC DEVELOPMENT IN KERN COUNTY In response to the February 10, 1988 Report of the Kern County' Board of Trade Ad Hoc Planning Committee, the Board of Supervisors directed to County Administrative Officer to enter into negotiations with the Kern Economic Development Corporation (KEDC) . The intent .of these negotiations was to restructure responsibilities as outlined in the Board of Trade report. The specific request of the Board of Trade was as follows: "Request the Kern County Board of Supervisors to direct the County Administrative Office to enter into negotiations with the Kern Economic Development Corporation to eliminate the Assistant Manager position. The services now performed by the Assistant Manager should be provided via a contractual arrangement." The proposed agreement amendments accomplish this goal. The primary changes to the current agreement are highlighted below: -- Responsibility for organizing the annual Export Trade Seminar is shifted from the Board of Trade to KEDC. -- Responsibility for acting as the local liaison with the California Department of Commerce is shifted from the Board of Trade to KEDG. -- The Board of Trade responsibility for a specific list of special projects has been adjusted to increase Board of Trade flexibility. The Board is now required to accomplish projects "which may included, but are not limited to" the enumerated list. -- The Board of Trade will now provide three offices (rather than two) to the KEDC. -- The base level of fiscal support required for the Board of Trade is reduced to reflect the elimination of the Assistant Manager position. -- The requirement of additional, in-kind support for office supplies, utilities, telephones, and computer equipment and maintenance is reduced from $30,000 to $18,000 to reflect ongoing costs rather than initial purchase and installation costs. -- The County is required to. pay $35,000 to KEDC for the provision of specific services (some of which would have formerly been assigned to the Assistant Manager). -- Exhibit A, which describes the existing relationship between KEDC, Kern County Board of Supervisors, Board of Trade and Kern Economic Deyelopment Council, has been revised to better reflect actual relationships. The combined impact of these changes, in addition to clarifying and streamlining the responsibilities of KEDC and the Board of Trade, will be an approximately $20,000 reduction in Board of Trade costs for the support of KEDC. Based on the previous action of the Board of Supervisors directing the Administrative Office to implement this restructuring, and the resulting savlngs to the Kern County Board of Trade, IT IS RECOMMENDED that the amended agreement be approved and forwarded to the City of Bakersfield for their concurrence. (The KEDC Board of Directors has already ratified the agreement). Sincerely yours, County~Administrative Officer GT/JH/ka/ppca THIS ~, ~ and entered into c~ ML,~h 17, 1987, ~ ~~ ~ "~"), ~' ~m ~ ~ Of ~, ~ ~ of ~ ~ of ~ (~t~r "~ o~ ~"), ~ Ct~ of ~sfteld, a ~t~1 ~att~ o~z~ ~ ~st~ ~r ~ ~ of ~ S~te of ~tfo~a (~ter p~ftt ~ltc ~fit ~~tt~ (~fter "~~tt~"), WITNESSETH : with ~ directly reflects the stre~th of its ~ ~Jor ~~i~, oil ~r~ ~ ~~t~ a ~tti~ ~ to ~ ~ ~i~ ~ i~t~, ~ ~~ 2~, 1986, a ~ of ~~ ~ ~~ ~, ~tf~a ~t ~ ~1~ 261~ au~t~ ~ ~ of 1 WH~, ~he affor~bie 1~, ~~r, exceptio~i ~ucatto~l t~tttutio~, ~ excellent rat1 ~ fre~y ~~tlm f~tittt~ ~il~ie in ~ ~, ~ it ~r~te ~t ~ effo~ to a~ ~ ~ ~fi~ ~ ~s effo~: 1. ~A~ a. ~s ~~ ~~ ~ ~ ~ ~~c ~i~ ~lic ~ ~i~e ~t~ ~~ wi~ ~1~, ~i~ ~ ~~ st~ ~ ~ of ~ ~: ~ ~ ~t ~ wl~'~ t~ of ~~ ~~ to ~ ~te ~ Jolt eff~ of ~ ~ of ~ ~ ~~t~~ ~ att= to, ~ ~n~!n ~~ ~, ~m.~. (~) In.~rti~lar',' the ~o~il ~]1 ~, ~rt ~ (~ The Counct! shall serve a~ an lnforma~:t~a.1 b. ~s agr~men~ provides a st~c~e, ~ ~ict~ ~~ ~r~ ~bit "A" (~t st~~) ~ ~bit "B" (~t~ ~ s~~) at~ ~to, ~ ~ ~t will ~le ~ ~c ~ifi~ti~ ~ ~l~t of ~ ~. c. ~s ~t ~ ~i~ for ~ ~~ ~lic-pri~te ~~p s~ ~ ~ ~ ~ict~ ~ ~bit "B", at~ ~to. ( "~i~"). (1) ~ of D~rectors of the Ke~ Eco~c (2) ~ of Di~o~ of ~ ~ of ~, of ~t~, (4) ~ ~r of ~ Ci~ of ~field, (5) A ~~ntati,~ of each incorporated cindy within K~rn (7) A representative of each busin~ss, visitors (9) A desi~t~ represen~ative from e~' (~) ~X~ pro~s~ ~ accomplish~ activities of the (S) ~ thru ~rfo~ce of ~ e~l~te ~ ~fit, 4 (4) Through its i~vidu~l (5) Ass/st the Co~ratton ~ the B~d of Trade tn (6) o~r ~i~ ~tte~ of ~ ~~ti~ ~ ~ ~ of ~e. c. co~cil mem~r s~ll ~r ~, etc. (2) ~t of t~ ~~. (3) ~o ~ ~tl. (4) The Chair~rson of the ~rd of Directors of ~he (5) ~ ~~ti~ ~ t~ ~~ ~ ~ ~i~ ~~ to ~ ~tl, i.e., ~ ~ t~ for ~tt~ ~t~, ~, s~f t~, ~~, ~11~, ~~i~, etc. ~ ~tt~ ~ a ~ftt, ~ltc ~ftt ~~tt~ ~~ for ~ ~ of at~~ 5 to support t~ de~l~t of a sk/Iled and ex~erience~ labor force (S) Actively s~k out ~i~le ~~ ~ ~trl~ (4) ~e eve~ effo=t to reach ~ t~ ~sist extsti~ 6 (9) ~ake efficient and effective use of the resources the ~oard of r~de, tree '~untT, ~ ~ (11) ~t~ ~ ~tt~ of ~ ~tl; (12) ~ltctt ~t~ a ~t~te ~ a (13) Develop statistical research, states a re~rts ~~ a~~, ~~ ~ ~t~ ~ ~ o~r ~ ~l~t to (3) ~ ~ ~~ ~ ~ c~ ~1 of ~ c~ of ~f~eld; (4) ~ ~~ ~~ ~ ~ ~ ~ ~at~ of Citt~; aat~ al ~lm ~ ~tta sa ~l~te ~ ~m ~ ~lr ~1~~ ~1 ~ ~1~ ~ ~t~ ~ ~ ~ ~ prt~te ~or ~~ of ~ ~ of Dt~o~. c. ~ Fur~.. The Corporatic~ $100,000 ~lly from ~rt~te so~ces to e~ble ~tviti~. ~ or ~o~ J~W 1, 1~8~ ~ ~ ~ ~t~ ~r ~o~ ~,oh ~ is or ~ill ~ a~l~le prior ~ for ~~ti~'s ~. d. ~~1. ~ ~~l~ ~ ~s or ~r ~~ ~ ~1 ~ ~l-t~ ~1~ of ~isi~ o~ ~r~' ~~i~ ~. (1) ~ ~tt~ ~o'~ or (a) ~ ~ ~~ (b) ~ep the Co,cji tn~o~ on the cor~rati~,s (2] ~ ~~ ~ ~~e ~y ~ ~ ~ o~ ~'~ of ~'s ~1~ ~ly~ ~~ ~l~ ~o ~ ~~i~. e. O~ffi~ ~. ~ ~~t~ ~1 p~l~ ~1 o~i~ ~nisht~s ~or its Pr~iden~ ~ his or ~r ~~ ~ ~10~r 8 property of ~he Corporattc~. g. ~~t ~t~tor. ~ ~lati~ to ~1 o~r ~ti~ to ~~ti~ ~1 ~ ~ ~t ~t~or ~ ~1 ~t ~ ~ ~ 4. ~ OF ~E p~te ~ ~c ~te~t of ~ ~, ~ ~y t~1~ ~t ~ ~t (2) Produce and publish prom~tc~aa~ (3) ~er~orm statistical research, et~ie~ ~ reprts i~ ~i~; (5) ~ ~ ~ ~t~ for ~ ~~ of ~~ to ~ ~ of ~i~; (6) Prepare resolutio~ {2) Redouble ~simt~ce in de~iopi~ the statisti~ info~tion ne~ bY the Cor~ration to ~rfo~ its activiti~ (~i 10' (b) ~ Joint ~ o~ ~ptt~ a~ ~tJ~. a.~easi (c) A~'! ~lJ_~g costs (~t~tM to (d) ~1 ~~ ~11 ~ ~ ~r~ of ~ ~; (e) ~1 offt~ ~ ~1~ 4 ~ Office supplies ~d se~lces, incl~ ~i11~ (~stage), telephone, ~~t b~ at a ~ ~t to ~ $12,7~ ~lly; ~ ~ ~ to ~ ~~ti~ ~1 ~ ~tnt~ ~ ~ ~ of ~ at 11 c ~. ~ ~ of Dt~to~, 5.' ~~ 1~ --' for ~ch ~ ~ ~t~ ~~. ~ntt~i~ is ~ for ~ of ~i~ of ~. ~ C~ ~1 -]~ ac~tvi~t~ 1~ ~. 12 (b} The Joint use of receptios% ~ meetir~ ~ ~ (¢) Al'l r~.~leltr~ cce~s (estt--ted to be ~ pa/d by e~-~.~, (d) All tm!:u~~ts ma~e and affixed to ~ shall ~ the proper~y of ~ Count~; ~ (e) All office ~p~oe 'l::rr~lcled by' ~ ~ ! Corporation shall be -~tnta!ned by the Board of Trade incb~lt~ Board £ces, matnteran~, and utilities provided the annua/ co~t o I does exceed $3,000= } 4 {~+ Office supplies and services, including of TY. mailing, , telephone, equ/~t refit, a/, publicatlor= tern brochures a coet not to exceed $12,700 anra~a/l¥I Coun~ _5 ~ A/1 dam proc~lr~ ~ul~t, cc~sistir~ of not ~tez~, or~ ~ the ~ software, ~ , revie a cost not to exceed ,300 annua/ly; contt ' 11 13 ~r or ~itt~ ~r~ ~ ~ Cl~ ~1'~ ~j~ ~o ~ of a. ~s ~~ ~1 ~ ~ ~1 ~o~ ~ e~ ~h J~ 30, 1992, ~ ~y ~ ~ for ~ti~ ~i~ ~ te~ i~ ~ b. At ~ ~ oF,~ te~ o~ ~s ~~, t~ ~t ~ or a~ 2101 ~ St~, ~ffield, ~l~o~, ~ ~ ~1 ~~t ~ d. ~ ~i~ ~1 ~i~ ~a~lU ~ or ~o~ ~ll 1 ~ 14 8. PARTIES' LIABILITY Zac~ fart7 shall be ~iable cml¥ for its mm debts, ltab~littes, and obligati~. No parc snail be liable in any ~y for the debt~, lia ilitiee, and obligatic,~s of any other party. Count7 anail be liable c~.i¥ for its ~ employees, ...... ~ ......... ~ ar~ damages arisin~ from their acts. 'City shall be liable c~u/¥ for its ~m~.lo%~es and c~-arising frc~ their acts. corPOratlc~ shall be liable for its c~mu employees and damages arising from their acts. Except as explicitly provided for by this ~~, no deb~,, liability, or obligati~n of any c~e party to this ~t sb~]l cc~stitute the de~t, liahtlit~ or o~lA~ati~ o~ any o~ the other par~te~ to t/xts ~~. Each o~ ~t~be. parties 'to thAs agre~..~t sh~! indsm~y amd ~ld harmless th~ o~ber par~ie~ to thAs ~~ ~or any ~, co~s, or ltabili~ie~ arisin~ ou~ o~ the ac~s or c~i~i~r~ o~ its ~ o~icers, a~snt~, an~ ~mployees. 9. INSURANCE all times durln~ t~ Per~or.~c~ o~ a~civltie~ h~-~unc~r autc~bile insurance c~ any autc~o~tle o~ Corpora~tc~ or t~ per~a~n~l use~ he~ a~ leas~ a~ the level requtre~ ~y California S~a~e lm~ ar~ name the County ar~ Ctt~ as ar~ su~e~ all other oral or ~rit~e~ pr~v~i~. 15 11. ASCII The riQhtm and duties ~escri~ herein shall not bm asstgrmd without th~ prior etttm c~t of the parties b~z~to. 12. PT.wn~- OF ~TION Each o~ the parties hereto pledges its cooperattcaq to the other parties hereto in the accom~ltsh.~t of the ~ of this ~t. · 13. SEVERABILITY Should any part, term, portim, or provision of this agreement be finally decided to be in conflict with any 1~ of the United States or of the State of California, or otherwise be tmmaforceable or ineffectual, the validity of the mining parts, terms, portt? or provistcms sba/1 be ~ se~rable arzl shall not be affected thereby, provided such z~m~t~ porttor~ or provtst~s can be ccr~strued in su~tanc~ to cx~stttute the agt~m~t ~htch the ?~ttes inter~led to enter into tn the first instance. 14. ~CTIl~ DAT~ OF A~~ This ~t sba/1 be effective comm~tr~ with the day and y~ar first written above. 15. WAIVER OF D~FAULT The failure of any p~rty to enforce against another a provistcm of this Agreem~t .shall not cc~tttute a ~m.iver of that party's right to enforce such m provistm at a later time and shall not serve to %tory the terms of this Agreem~t. 16. ~ Any la,remit per~!ning to any matter artslr~ under or ~ out of this c~ntract shall be instituted in Kern County, Oa/tfornia. 16 17. TI}4~ ~l~e ~ of ~ essence '~ th.is ~~:. 18. M1 ~ or 19. in ~ ~t~ S~t~ ~1. ~ ~~'~1 ~ ~~ ~ folly, or a~ 14X5 ~fteld, ~ifo~ 93~1 ~r 2101 ~fteld, ~tfo~a 93~1 ~r 1501 ~fl~ld, ~lfoma 93301 ~ ~c ~l~t ~~tt~ P. O. ~ ~312 ~field, ~ifo~a 93~2 2O. ~~ ~ ~ r~ ~ obli~ti~ off ~ ~t ~1 ~ to ~ ~fit of, ~ ~ bi~i~ u~n, ~ ~i~ ~o ~ ~t~t ~ ~ir ~i~, ~st~to~, ~to~, 17 21. CO~mC~A~ AUTHORIT~ Each ir~iivtdual ex~c~t~ this A~reemsnt rmpreeents and ~-~ ~t ~ ~ti~ ~ or ~ ~~ ~ ~t ~s ~t ~ti~ ~ a~~ wi~ i~ te~. 22. ~ ~~ ~SIO~ ~~ ~ ~1~ or ~li~t for ~l~t ~~ of ~, c~, ~lor, ~, or ~i~ orig.. ~ ~ra~i~ will emplo~en~ wi~ r~ ~o ~ir ~, c~, ~lor. ~, or ~i~l orig.. // // // 19 Public ./ Private Partnership Board of Trade/Kern Economic Devel. Corp Development Council Economic Dewl. Corp. ' L Secretory t CommunlcMIon. spec. Principal secretary ~ceeelng ~cha ~vised July 1988 : I Corporation's DirKtors :KERN COUNTY ECONOI~IC DEVELO~ENT COUNCTL: ( 8oard ot Trade's Directors : : Representative o~ ioard o~ Supervisors Representative o~ each city c~nci! R~resefltatiYe o~ each chal~er o~ cou~rce RepresentatiYe o~ each ]oca! deYe]oplent corp. Repres~fltatiY~S : . KERN [CDNOfl[C : DEVECDPfl~T CORP. : PRESZDENT Functions as defined Functions as dHined in Paragraph 4 in Paragraph EXHIBXT '9' DIRECTORY OF CHAMBERS OF COMMERCE IN KERN COUNTY ARVIN CHAMBER OF 'COb~RCE GREATER FRAZIER PARK C}IAMBER OF COb~dERCE Pres. Verner Stenderup* Pres. Mildred Church* Sec'y-Manager Mrs. Joyce Robinson** Sec'y Anne Jones** P. 0. Box 192 (805) 32?-2053* II. P. 0. Box 763 (805) 245-3738* W. Arvin, 93203 854'2265** Frazier Park, 93225 245-1286'* W. Meetings: 1st Monday (Board) Meetings: 2nd Wed./7:30 p.m. 3rd Monday (Recju/ar) (Every other month) Arvin Concjre(3ational Church/12 noon Co~m~znity IIall GREATER BAKERSFIELD CHAMBER OF COMMERCE INYOKERN CHAMBER OF CO~b~RCE Pres. Wayne Killmer Pres. Leroy Marquardt* Exec. V.P. Dou~jlas A. Yavanian** Sec' y Peggy Breeden** P. 0. Box 1947 (805) 327-4421'* P. 0. Box 232 (619) 3??-4532* W. Bakersfield, 93303 , Inyokern, 93527 377-5772'* H. Meetings: As scheduled Meetings: Last Tues./7: 30 p.m. by Committee Town Hall BORON CHAMBER OF CObM~3~CE KERN COUNTY BOARD OF TRADE Pres. F.O. Roe* Pres. M~s. Kay Meek Sec'y Mr~ .. Paulette Batman** Manacjer 3ames Radoumis** 27044 20-Mule Team (619) 762-6688* W. P. 0. Bin 1312 (805) 861-2367'* Boron, 93516 ?62-5650** W. Bake~sfield, 93302 Meetings: 2nd Tues./12 noon Meetings: 2nd Wed./3 p.m Boron Musetun 4th Tues./? p.m. Board of Trade Conference Roc~ BUTTONWILLOW CHAMBER OF COMMERCE & AG. KERN COUNTY HISPANIC CHAMBER OF COMMERCE Pres. Mrs. Barbara Blair* Pres. Jess Ramirez Sec ' y Sharon Ghilal~ducci** Sec ' y Manuel Arriola P. 0. Box 251 (805) 764-5528* H. P. 0. Box 30289 (805) 328-0?30 Buttomwillow, 93206 ?64-5406** Bakersfield, 93385 Meetings: 3rd Th~./?:O0 p.m. Meetinc3s: 3rd Wed./6:30 p.m. Ch~nber Office Beale Library CALIFORNIA CITY CHAMBER OF CO6~M52~CE KERN RIVER VALLEY VISITORS COUNCIL Pres. Mrs. Colleen Moser* Pres. Bob Myrann* Sec ' y Vi~cjinia Burnett** Sec ' y Debbie Wiruth** P. 0. Box 2181 (619) 373-8021'-W. Box "0" (619) 379-2805 W.* California City, 93505 373-8676** Lake Isabella, 93240 376-2224 ** W. Meetincjs: 1st Thurs. (Board) Meetings: 4th Thu~s./12 noon As announced 6: 30 p.m. 3rd Thurs. (Reg.) 6:30 p.m. DELANO DISTRICT C~{AMBER OF COMMERCE 'KERNVILLE C~ULMBER OF COMMERCE Pres. Hubert Rabanal* Pres. Don Enebo** Exec. V.P. Mrs. Dorothy Knight** Sec'y Mrs. Rose Ann Viton** 931 High Street (805) 725-3817' W. P. 0. Box 397 (619) 376-3468* W. & H. Delano, 93215 725-2518'* K~rnville, 93238 376-2629** Meetings: 3rd Tues./7 p.m. Meetings: 2nd Fri. (Board)/12 noon Chamber Office Chamber Hall 4th MOn. (Recj.)/7:30 p.m. 7/88 ER DIRECTORY - Page 2 LAKE ISABELLA CHAMBER OF CC6~MERCE ROSAMOND CHAMBER OF COMMERCE Pres. Ed Fuc3ate Pres. Bobby Maley* Exec. Sec'y Mrs. Janie Braun** Manager Mrs. Peggy Shult** P. 0. Box 567 (619) 379-5236** P.O. Box 365 (805) 256-2087* H. Lake Isabella, 93240 2654 Diamond St. 256-3248'* W. Meetir~s: 2nd Thu~s. (Board) Rosamond, 93560 Mon., Wed., Fri./10 a.m-4 p.m. 12:30 p.m. Chamber Office Meetings: 1st & 3rd Thums./7 p.m. 4th Thu~s. (Ra~3.) C~,~,~nity Build~r~3 7 p.m. Veterans Hall LAMONT CHAMBER OF COMMERCE ROSEDAr.E HIGHWAY BUSINESS ASSOCIATION Pres. Dennis Shaffer* Pres. Mrs. Selma Bartell P. 0. Box 593 Chamber Office** 2001 Callow~¥ Dr. (805) 589-0353 W. Lamont, 93241 (805) 845-0864* H. Bakersfield, 93312 Meetings: 833-3800** Meetings: 3rd Tues./11: 30 a.m. Casa Lopez 2nd Tues. / 12 noon LOST HILLS CIVIC ASSOCIATION , SHAFTER CHAMBER OF C0~MFRCE & AG. Pres. Steve Bottc~ns Pres. Mrs. Sandy Wiec~nann* P. 0. Box 574 (805) 797-2664 W. Sec'y-Manager Margaret Ch~istensen** Lost Hills', 93249 797-2428 H. P. 0 Box 1088 (805) 746-4991' W. Meetings: 4th Mon./7:30 p.m. Shafter, 93263 746-2600** Lost Hills Community Blck3. Meetings: 2nd & 4th Fridas~s/12 noon Shafter Motel CHAMBER OF COMMERCE TAFT DISTRICT CHAMBER OF COMMERCE Pres. Bill Farmer Pres. Gene Smith Sec ' y Ma~__ger Ms. Judy Butch** 15836 Sierra Highway (805) 824-2481'* 314 - 4th Street (805) 765-2165'* Mo3ave, 93501 Tues-Thttrs/lO a.m./2 p.m. T~ft, 93268 Meetings: 2nd & 4th Thu_~s./7:30 a.m. Meetings: 3~d Wed. (Board) 7:30 a.m. Reno's Sierra Rooms Great Western Savings & Loan NORTH OF THE RIVER CHAMBER OF CO~M~CE GREATER TEHACHAPI CHAMBER OF COMMFRCE Pres. Mabel Miller* Pres. Dan' Incjram* Sec'y Joyce Pratt** Exec. Officer Bob Neelans** P. O. BOx 5894 (805) 393-2101' W. P. 0. Box 401 (805) 822-4819' W. Bakersfield, 93308 395-2392** W. Tehachapi, 9356! 822-4180'* Meetings: 2nd Tues./12 noon Meetings: 2nd Thu~s./5 p.m. . Hodels, Olive Drive K~lcy's Restaurant RAND IMPROVS/~ZNT ORGANIZATION (TRIO) WASCO CHAMBER OF CO~M53RCE & AG. Pres. Mrs. Lorraine Ainsworth* Pres. Tim Holtermann* Sec'¥ Mrs. Ma(3gte Clark** Off. Manacjer Mrs. Jody Britt** P. 0. Box 193 (619) 374-2209* 652 "E" Street (805) 758-5091' H. Johannesburg, 93528 374-2216'* Wasco, 93280 758-2746** Meetings: 2nd Thurs./7:00 p.m. Meetings: 1st Thu~s./7:00 p.m. Ccmmunity Building Chamber Office IDGECREST..- _CHAMB. ER OF C~CE WOFFORD HEIGHTS IMPROVEMENT GROUP Pres. Speed Handeland* Pres. Mrs. Marilyn Saunders* Exec. V.P. Ms. Pat Farlander** Sec'y Mrs. Barbara Boston** P. 0. Box 771 .(619) 446-2559* W. P. 0. Box 341 (619) 376-6465* W. Ridgecrest, 93555 375-8331'* Woffor~ Heights, 93285 376-6465** W. Meetings: 2nd Tues./12 noon Meetings: 3rd Tues./?: 30 p.m. As announced E1 Segundo Rod & Gun Club MEMO RAN D UM August 23, 1988 TO: Budget and Finance Committee FROM: Arthur J. Saalfield City Attorney SUBJECT: Cable TV Regulation - Boxes Section 9 of Ordinance No. 2518 New Series, the ordi- nance awarding Warner Cable its franchise, and Section 9 of the Cox Cable Franchise Ordinance (Ordinance No. 1552 New Series, amended by Ordinance 2939 New Series) specify the right of the City to require the cable TV companies to conform to reasonable rules and regulations adopted by the City Council and to establish rules and regulations governing technical performance of the sys- tem and operational practices, provided such rules and regulations are not in conflict.with state or federal regulations. Prior to adopting such rules or regulations, Council, either directly or through its administrative personnel, is required to consult with the cable TV companies. Unless Warner agrees in writing to such rules and regulations, the Council must give Warner 30-days written notice of a public hearing on such rules and regulations and, at the conclusion of such hearing, must make a finding that the public interest~ convenience and necessity requires specific rules and regulations. (The Cox Cable ordinance does not require such a hearing.) Attached hereto is a draft rule and regulation addressing pedestal boxes. If it appears .to adequately address the Committee's concerns, the Committee may wish to report back to the Council requesting that Council direct staff to consult with both Warner and Cox Cable as to such rule and regulation and,. if Warner Cable is unwilling to agree in writing to such rule and regula- tion, to direct staff to schedule a hearing before the Council on the matter and to give both cable companies at least 30-days notice of such hearing. Also attached is an amendment to Sections 16.32.060 and 16.32.080 of the Bakersfield Municipal Code addressing both the pedestal issue and access to open trenches during subdivision of property. The hearing referenced above should also concern these proposed amendments to our subdivision ordinance and both cable companies and the B.I.A. so advised. 4 M.BF.1 cc: J. Dale Hawley Mary Strenn Ed Schulz CABLE TELEVISION RULE AND REGULATION NO. 88-1 SUBJECT: Taps 1. Ail taps shall be lOcated in vaults at or below the level of the adjacent grade; provided, however, principal trans- mission amplifiers are not to be considered taps for purposes hereof and may be located above ground. 2. All taps located within pedestals as of the date of adoption of this Rule and Regulation shall, except as provided below, be relocated to a below-grade vault within 90 days of the date of Council adoption of this Rule and Regulation. 3. Notwithstanding 2., above, any tap located in such pedestal may remain'above-grade if consent thereto is signed by the owner of the lot upon which such tap is located and by the owners of the lot or lots adjacent thereto on the same side of the street. Adopted by the Council of the City of Bakersfield pur- suant to its authority under Sections 6 and 9 of the Warner Cable Franchise Ordinance (Ordinance No. 2518 New Series) and Sections 6 and 9 of the Cox Cable Franchise Ordinance (Ordinance No. 1552 New Series, as amended by Ordinance No. 2939 New Series) this day of , 1988. City Clerk AJS: sdf 4 M.BF. 2 08/24/88 ORDINANCE NO. NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD AMENDING SECTIONS 16.32.060 B.6. AND 16.32.080 D.6. OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO REQUIRED CABLE TELEVISION SERVICES TO ALL LOTS IN SUBDIVI- SIONS FOR WHICH A FINAL TRACT OR PARCEL MAP IS REQUIRED. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Section 16.32.060 B.6.~ of the Bakersfield Municipal Code is hereby amended to read as follows: 16.32.060 Improvements - In subdivisions for which final tract map is required. B. The minimum improvements which the subdivider makes or agrees to make prior to acceptance and approval of the final tract map by the City Council shall be: 6. Services from public utilities, including cable television, and services from sanitary sewers shall be made avail- able for each lot, and in such manner as will eliminate the neces- sity for disturbing the street pavement, gutter, culvert and curb, when service connections are made. All interested cable television companies shall, without charge, be given reasonable access to utility trenches while such trenches are initially open in order that they may make their services available to all lots con- currently. If more than one cable television company elects to utilize trenches within any subdivision, no such company shall be charged more than any other cable television company for the use of such trench and in no event shall the total charged such companies exceed their reasonable and proportionate share of trenching costs. Cable television companies' principal transmission ampli- fiers may be located above ground; however, all "taps" shall be located in vaults at or below the level of the adjacent grade. The requirement for installation of cable television service to any industrial tract may be waived if, based upon a waiver requested by a subdivider supported with proof of satisfaction of the following conditions, the planning commission finds that the omission of such requirement.will not create a break in cable tel- evision service (to properties in the vicinity of the tract map) or, even if such omission would result in a break in cable televi- sion service, the closest available connection to existing cable television facilities is more than five hundred feet from the clo- sest point in the tract map to the point of such connection (measured along existing or proposed utility easements). SECTION 2. Section 16.32.080 D.6. of the Bakersfield Municipal Code is hereby amended to read as follows: 16.32.080 Improvements - In subdivisions for whiCh parcel map is required. D. The following improvements or any of them 'may be required by the advisory agency and if so required, shall be fur- nished at the subdivider's expense: 6. Services from public utilities, including cable television, and services from sanitary sewers available for each lot, and in such manner as will eliminate the necessity for disturbing the street pavement, gutter, culvert and curb, when service connections are made. All interested cable television companies shall, without charge, be given reasonable access to utility trenches while such trenches are initially open in order that they may make their services available to all lots con- currently. If more than one cable television company elects to utilize trenches within any subdivision, no such company shall be charged more than any other~cable television company for the use of such trench and in no event shall the ~otal charged such companies exceed their reasonable and proportionate share of trenching costs. Cable television companies' principal transmission ampli- fiers may be located above ground; however, all "taps" shall be located in vaults at or below ground level. The requirement for installation of cable television service to any industrial tract may be waived if, based upon a waiver requested by a subdivider supported with proof of satisfaction of the following conditions, the planning commission finds that the omission of such require- ment will not create a break in cable television service (to prop- erties in the vicinity of the parcel map) or, even if such omission would result in a break in cable television service, the closest available connection to existing cable television facili- ties is more than five hundred feet from the closest point in the tract map to the point of such connection (measured along existing or proposed utility easements). SECTION 3. This ordinance shall be posted in accordance with the City charter provisions and shall become effective thirty (30) days'from and after the date of its passage. o0o I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED MAYOR of the City of Bakersfield APPROVED as to form: CITY ATTORNEY of the City of Bakersfield LCM/meg 00RD 5 CABLETVl 8/25/88 - 3 - BUDGET AND FINANCE COMMITTEE REPORT 34-88 AUGUST~, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL RE: LEASE OF FORMER CORPORATION YARD TO MID STATE DEVELOPMENT CORPORATION FOR DEVELOPMENT OF A SMALL BUSINESS INCUBATOR FACILITY On March 16, 1988, the City Council approved in concept leasing the former corporation yard, located at 1600 "S" Street, to Mid State Development Corporation for development of a small business incubator facility. Following the direction of the Council, staff developed the terms and conditions of such a lease and found them agreeable to Mid State. Over a term of five years, Mid State will lease the site for $1 per year. Maintenance of the site and provision of adequate insurance is the responsibility of Mid State. The lease may be terminated after the first three (3) years on a nine (9) month written notice by either party. The Budget and Finance Committee.has reviewed the terms and con- ditions of this agreement. Based upon the Council's prior support of developing a small business incubator at the former corporation yard site, and support of our local small business sector, this committee recommends the Council approve and authorize the Mayor to execute this lease with Mid State Development Corporation. Respectfully submitted, Donald K. Ratty, Chair Kevin McDermott 4:BFC-1 James Henry Childs MEMORANDUM August 11, 1988 TO: DEPARTMENT HEADS MARY STRENN, ASSISTANT CITY MA NAGER~~~-~[~ FROM: SUBJECT: SMOKING POLICY The Budget and Finance Committee will be reviewing the Smoking Policy again. Please review the attached charts for accuracy. The Committee will be inquiring about Police Department results from the employee smoking survey taken a couple of years ago. I am in need of the results to add to the chart. Please contact me if you have any comments. MS:jp Attachments SMOKING POLICY DIVISION ALLOWABLE AREA OPTIONAL AREA PROHIBITED AREA COMMENTS : CITY HALL LUNCH RMTABLE, NONE HALLS,OFFICES, ADOPTED OUTSIDE MEETING ROOMS POLICE BASEMENT, SQUAD, PRIVATE OFC & ALL OTHER AREAS ADOPTED 2ND FLR LOUNGE, VEHICLES BY 8-5PM CHIEF'S CONF RM, AGREEMENT, INTERVIEW AND CHIEF'S CONF RM INTERROGATION, DURING MEETING OUTSIDE BY AGREEMENT 5-8AM ADD 1ST FLOOR LOUNGE FIRE SEGREGATED AREA, UPON AGREEMENT LOCKER & RESTRM ADOPTED OF LARGE DINING OF ALL:COMF RM, PUBLIC AREAS, & WORK AREAS, DINING RM, KITCHEN & BEDRM, PRIVATE OFC, VEHICLES APPARATUS FLOOR, OUTSIDE CORPORATION YARD: COM SERV DESIGNATED AREA EACH OFC DETER- PUBLIC AREAS, DRAFT OF LUNCHRM MINES BY VOTE HALLS, RESTRMS PUBL WKS GEN SERV DETERMINED BY LUNCH AND RESTRM DRAFT EACH SUPERVISOR STREETS DESIGNATED AREA PRIVATE OFC PARTS OF LUNCHRM OF LUNCHRM, UPON AGREEMENT OPEN AREAS EQUIPM OPEN AREAS LUNCH, PARTS, WITHIN SHOP RESTRMS, OFC'S ENG-CNST OPEN AREAS DETERMINED BY VEHICLE OPERATR OFC'S, RESTRMS WSTEWTR DESIGNATED AREA SMOKING POLICY DIVISION SMOKER NON-SMOKER TOTAL COMMENTS CITY HALL & ANNEX 19 - 15% 105 - 85% 124 (1985 DATA) POLICE FIRE 38 - 23% 126 - 77% 164 COMMUNITY SERVICES 34 - 37% 58 - 63% 92 PUBLIC WORKS GENERAL SERVICES 13 - 45% 16 - 55% 29 STREETS 11 - 30% 26 - 68% 50 EQUIPMENT 11 - 33% 22 - 66% 33 ENG-CONSTRUCTION 2 - 17% 10 - 73% 14 WASTEWATER 3 - 15% 17 - 85% 20 POSITION PAPER ON SEEZ CORPORATION AND THE SOUTHEAST ENTERPRISE ZONE "PROGRAM iNCENTIVE AREA". From it's.inception the Southeast Enterprise Zone and SEEZ Corp. were often synonymous terms. The Casa Loma Specific Plan (EIR) and final application for the Employment and Economic Incentive Act AB514 make several references to the roll to be played by the SEEZ Corporation, (attached) these contract documents between the State of California, Department of' Commerce the County of Kern and the City of Bakers- field outline the dUties of the SEEZ corp0.ration.in the overall process of developing th'e Program Incentive Area knoWn a's the "Southeast Enterprise'ZOne''. This prOgram is designed to extend for a fifteen year period beginning October 1986. SEEZ Corp. initial contract .with City and County was for a six month PeriOd as has been the case for the. past (three) six months contracts. Much valuable time has been l°st in negotiating these six months contraCts for bare bones funding of SEEZ Corpor- ation. The evaluation of funding fOr SEEZ Corp. has come to what.we believed to be an equitable solution, ie. City Economic Development $2'5,000.00 County Community Development 25,000.00 Employers Trainin~ ResoUrce 25,'000.00 Total Annual.Budget $75,000.00 while this is considered to bare bones 'funding,.. SEEZ Corp. could exist and continue to. market the enterprise zone with' this amount. SEEZ Corp. fifteen board'members, limited, staff: (Marketing Director, Sec/Bookeeper) and some time two College paid', Col!~ge Interns have over the past almost'two years, managed to do an outstanding job. We have managed to increase the'property and Kales tax for both City and County~and create' hundreds' of new 'jobs in the area. We have made several suggestions reference permanant funding sources to support SEEZ Corp. efforts but have had them rejected by City and County Staff, ie Share of Business License funding Share in increased Property & Sales tax. ~evenues-share in aviation gas revenues and/or, sales tax. To mention a few. We at SEEZ Corp. often hear from City and County: this is the last funding you will receive, that you should find your' own funding sources° This is contrary to the documents attached and does not coinside with Dept. of Commerce agreement nor that of the other fifteen Enterprise Zones and Program Incentives Areas in the State of California. SEEZ Corp. would welcome the opportunity to discuss this overall ~unding issue, with any group at any level' of City and County gOvernment that could resolve the issue once and for all. Then and only then can SEEZ Corp. get on with the job of Marketing and developing the Enterprise Zone as set forth in approved application designating this area as a Program incentive Area. Sincerely, Board of Directors SEEZ Corporation Proposed mailing list: Don Rogers Maxine Waters Phil Wayman ~ City COUncil Board Of Supervisors Enterprise Zone~Mgr. Paul Hillard E.T.R. Pete Parra -'° CALIFORNIA DEPARTMENT OF COMMERCE EMPLOYMENT AND ECONOMIC INCENTIVE PROGRAM FINAL APPLICATION FORMS CHAPTER 44, STATUTES OF 1984 THE EMPLOYMENT AND ECONOMIC INCENTIVE ACT SECTION A: GENERAL INFORMATION~ APPLICANT(s) County'of Kern City of Bakersfield ENDORSING JURISDICTIO-~IS (if applicable, per preliminary Above A3: DESIGNATED CONTACT PERSON(s) 1. Name: William J. Mungary Title: Director of Community Development Program Department;County of Kern. Address: Great Western Savings Building 1415-1~th Street, Second ~loor Bakersfield, CA 93301 Telephone: (805) 861-2041 2. Name: J. David Kennon Title: Economic Development Program Coordinator; City of Bakersfield. ... Address: City Hall lbu1 Truxton Avenue Bakersfield, CA 93301 Telephone: (805) 326-3765 A4: TABLE OF CONTENTS SECTION PAGE SECTION A: GENERAL INFORMATION A- 1 SECTION B: ECONOMIC DEVELOPMENT STRATEGY B- 1 SECTION C: ECONOMIC DEVELOPMENT· OBJECTIVES C, ! SECTION D: COMMUNITY IMPACT STATEMENT D- 1 SECTION E: EMPLOYMENT AND TRAINING EVALUATION E- 1 SECTION F: PROGRAM AREA ACTIONS AND INCENTIVES PART 1: ASSISTANCE FOR EXISTING BUSINESSES F- 1 PART 2: RECRUITMENT OF NEW BUSINESSES F- 3 PART 3: REGULATORY AND PERMIT MODIFICATIONS F-·7 - PART 4: INSUP, ANCE PLAN. ' F- 16 PART 5: LOAN FUND OR BANK 'F~17 PART 6: REAL PROPERTY IMPROVEMENT F-24 PART 7: ECONOMIC DEVELOPMENT PROJECTS AND ACTIVITIES F-5i SECTION G: PROJECTED JOB CREATION G- 1 SECTION H: AGENT H-' 1 SECTION I: LOCAL ENTITY INVOLVEMENT I- 1 SECTION J: COMMUNITY ADVISORY COUNCIL J- 1 SECTION K: APPLICATION STAFF OR CONSULTANTS K- 1 MEMORANDUM OF UNDERSTANDING EMPLO~T AND ECONOMIC INCENTIVE ACT (Southeast Metropolitan Bakersfield) City of B~kersfield Agreement No. 85-213 · .. THIS MEMORANDUM OF UNDERSTANDING, made this . 23rd day of · October , 1985, by and between the COUNTY OF KERN, a political subdivision of the State of California (hereinafter "County") and the CITY OF BAKERSFIELD, a municipal corporation (hereinafter "City"), WITNESSETH : WHEREAS, in 1984, the California Legislature adopted the-Employ- ment and Economic Incentive Act (Government Code §7080 et seq.) to '-encourage and facilitate job maintenance and business and job'develop- ment in distressed and declining areas of the State; and WHEREAS, recognizing that a portion of southeast metropOlitan ~Bakersfield was an economically distressed area that would greatly benefit from being designated a Program Area pursuant to the Employ- ment and Economic Incentive Act, in October of 1984, County and City · ' determined to cooperate in seeking Program Area designation for the .: area; and ~ ' WHEREAS, subsequently, a consultant was hired to assist with the ~ preparation of a specific plan for the area and the preparation of~an application for State designation; a com~anity advisory council was appointed, numerous meetings were held by County and City staffs and the Advisory Council and area businessmen and residents, all culminating with the submission of a preliminary application in May of '1985; and wHEREAS, in July of 1985, the State Department of Commerce' notified the County and the City that they had been selected as one of foUr ap- plicants to prepare a FiDal Application; and B-27 BOARD OF SUPERVISORS DIIIfld HO. I ~ ~ Admlnlllfpllon and Couite Oultdlng DllI~I Ho. 3 141~ Tfuxlun Avenue ~' Dbb~ N~ I ~ ' Room 600 . . Telepho~ (eos) eel-afe~ ' AUBUSC 28, BAKERSFIELD CALIFORNIAN LEGAL PUBLICATION - INCLUDE }~p SU~IARY OF ~closed ~ a ~y ~ ORDINANCE G-4268 concerniug Casa Loma. Specific Plau ~' ~ tO ~ ~lish~ on September 5, 1986 '~' Please send ~ ~o ~f slips ~ later titan September 3, ].986 ~ m ~ c~ nott~ y~ before ~licati~ ~ there are any errors 'ts be ' i~ '~ ~bltcatton, please ~tify ~is office by telephone, (805) 861-2167. . ',~ I[ t~re is not s~fictent t~ to provt(~ ~ with a proof slip prior :. ~' [lease se~ ~ three c~t~ of m~ Jn~tce ind[catt~M the n~,l)er of ~ ~ ~ ~e ~bltcation, ~d attad~ a c~y of the printed ~.,blication ~' ~ ea~ c~ of t~ ~tce. Also, plebe furnish thJm office with ~ ~[i~vlt of ~blic~tion ~ior to September 12, 1986 as  ~h~ affidavit ~ r~r~ by law. ncerely, Sharon 'Clark Clerk of t~ ~ard Bc[orc the Board Supcrvi, rs County of KeEn, State of California In ~e m~ o~ Re~l~lonNo. 86-502 Reference No. 86~0~28 PROPOSED CASA LOMA. SPECIFIC PLAN: ADOPT I, SHARON CLARK, C~erk of the Boa~ of Super~sors o! the Cou~b/of Kern, State o f Callfomla, do hereby cediS/thai ~e fo~ow~'~g resolutkm, peoposed by Super~so~ Shell seconded by Supervisor La rwood was du~ passed end adopted by $~d Board of Super%4sors si an offlcl~ meeting h~eof ~ls 25ch day of Aug, ual ,19 Q~, by the f~k~wlng vote, to wit AYES: Ashburn, Austin, Larwood, Harvey, Shell SHARON CLARK ~~ Clerk of me Board of ~: .o., ..~.?.,',,~'.:.?~,,~, s,st. ofc.,,~,,suporv"~" _ Count/ of K.rn ,.' .. , .-.., · ~.. ~'~' ~. Section 1. WHEREAS: (a) The Department of Planning and Development Services " of the County of Kern and the City of Bakersfield have jointly initiated a proposed Specific Plan for the Casa Loma area, a site in the southeast Bakersfield area, located between East Brundage Lane on the north, East Pacheco Road to the south. Mt; Vernon Avenue on the east, and the majority of parcels wi~h frontage lying on the west side of South Union Avenue to the west, pursuant to provisions of Government Code Section 65450 et seq.~ and (b) This Specific Plan was jointly initiated in an effort to stimulate economic revitalization by seeking designation of the area as an "Enterprise Zone" by the California Department of Co~amerce; and (c) The Clerk of this Board has caused notice to be duly given of a public hearing in said matter in accordance with law, as evidenced by the affidavit of publication and the affidavit of mailing on file with t~ Clerk of this Board; and ORDLNANCE NO. G-~;~68 AN ORDINANCE OF TIlE BOARD OF SUPERVISORS OF TIlE COUNTY OF KERN, STATE OF CAI. IFORNIA, ADOPTING Tile CASA LONA SPECIFIC PLAN The folloving ordinance, consisting Of two (2) sections, was duly and regularly passed and adopted by the Board of Supervisors of the ,'il County of Kern, StaKe of California, aC a regular meetinE of the Board of Supervisors held on the 25th day of August , 1986, ~: by the followinB vote, to wit: :: ~' AYES: Ashburn, tuscin, Larwood, Harvey. Shell ~ NOES: None ?~ ABSENT: None ,: ', :",' Chairman,L.jta~d_u.p_$up~rvtsors X. County o~ Kern, SKate o[ Cal[Jornia ':': ' (S~L) :" ATTE~T~ SIIARON CLARK Clerk of the Board oE Supervisors .: .. THE BOARD OF SUPERVISORS OF THE COUNTY O[ KB~ ORDAINS AS . Section 1, ~is Ordinance shall take effect and be In full force on and after the 2~th day of Ausust , 1986, and a sugary ~"~ of the text, Casa Loma Specific Plan, shall be published once In the ~akersfield Californian , a newspaper of general ,, circulation, published and printed In the County of Kern, State of California, together vith the names of the members of the Board of ~ Sup~rvisors voting tot and ai~lnst ~he same. ~ ~ook ~o. 8610118 : Ord. ~o. 1 " BAKERSFIELD CITY COUNCIL .. RBSOLUTION NOt 152-85 & R~SOLUTION OF THE COUNCIL OF TBE CITY OF BAKERSFIELD CONFIRMING THE CASA LOMA EPIPLOYMENT AND ECONOMIC INCENTIVE PROGRAM - BCONOMIC DEVELOP- MENT STRATEGY .. WHEREAS, legislat. Lon his been passed providLng for designa- ~ teen of a geographic area where certain tax and other incentives wall ~.i be available for private investments~ and ~ WHEREAS, the City Council of the City of Bakersfield is desirous of Jo~n21y oubmitt~flg an applica=lon w~2h the County of Kern . ~.. for such designs=ion under the ~plo~ent and Economic Incentive act~ and ~ER~S, an area of ~he City and County has ~en stud~ed and ~" :,:: determined appropriate for such designation; and ~EREAS, %he submission of a preliminary application to the . ..: S:a%e resulted in an invitation %o submit a full and final applica- '.: : %ion; and ~EREAS, such final application must include an Economic' ¥. Developmen~ S~ra~egy; and ..~ ~EREAS, such a strategy was prepared and reviewed at a duly advertised public hearing~ and ~EREAS, the a~propriate changes resulting [rom c~ttzen have ~en made. NOW, THEREFORE, BE IT RESOLED bY the Council of 2he City -;: Bakersfield as follows~ : The City Council confirms the Economic Developmen~ Strategy ' prepared in conformance with State guidelines and instructs the responsible staff ~o include ~his strategy In the Joint City/County · application for designation. ......... o0o ......... B-23 ;' ' ,!;.i~'~ Employment and Economic Incentive.Act ?J::. Schematic Diagram " Organi=ation and Authority Supervisors Cl~y Council Me.,orandma of · ;- Unders ~anding County Departmencs with En'tnrp=ise --' ~ ' Agent Zone rela'ed ~(CAO/CiCy .anaEer)l Zone... related functions fUmctions Adviso~ ~ Progr~ County Co~un- City, Ec~n-~mic '~ ity Development _ Pro~r~ ' Department . Departmen~ Development ~ CorpOracion/Marke~-~ . I Enterprise Zone businesses seekin~ qual-~ ,., - ~ ification and scare and 1S J2 stimulate economic and employment development, in .the. ..Bakersfierd '-.. '-' Enterprise Zone Program Area. .. f.~ GUide the marketing efforts of the Southeast .Bal<erSfi~!d'.v.:~E~'~iSp!~-? .... . · 'Z~ne".Corporation which has .been selected'..to.assmt....th.e.:,....Stan.~hg..~ ,-. 'd~Iivery area (sites; -infras~ucture .' finanCing, job ..~a.~ing.,.. busi,~:." .... [~'Ss/inVes~ent. certifications, etc..)... '" 15.1.2 Me~ership' - Standing Co~tte~ '~ ': ....::' " a. One Supervisor (representing portion of Casa Loma) b. One Ci~ Councilperson (representing portion of Casa L'oma) - '. c. County Co--unity Development Progrm Director '. '. . · ' d. City Economic Development Depar~ent Director e. Casa 'Loma Citizens Advisory Co~ittee Chairperson ~' ..... f. Two business representatives from the Program Area, selected bY'[~the CAC g.Residential representative! from the eligibility area, . seleCted ,. by . 'the CAC h. One individual who is not a local government representative; lo'cai' business person, or local resident to act as a citizen at large rePre- sentative to be selected by the Agent. 15.2 Designation of A nt ........ a. Kern County and the City of Bakersfield have .jointly submitted-, a': Preliminary and Final Enterprise Zone Application. ." b. The.~.proposed "a'ED" and "NED" are within 'the County .and City.' i:i ... The aVerage' sizeb of firms in the targeted industries located 'in.Kern ..... :.. '-' county :.~n ·1982,. acc0rdins to u.s. Census County Business Patterns,, are .. · presented. below, as well as the net increases in firms between 197'6 and: 1982. i'. ::... set .. i. ~j:' Increase ' }(~:}'i ' Average in Number (·~:.-. · S i Ze of-., Fi rms · ?:>. sic Industr7 (emp10¥ees) 1976~1982 --':C'"' 696 S~eam.,?Sdp~[y .~,J:>..-'(:. ': '.. ".. m.a. n;a. ": v';,,~,. 372 ~Ki~.r. cra~.~" and :Parts ' 75 3 . ,,: i~!-.', ·' 353 cohi:crb'~lbnf ~a:"'P~i'acad Nachinery 24 5 -. 208 ~verage,~ . - · '- :" 76 0 :¥'-;, 30~ ltfb'~'~i'~$:a~'i"iP'lastic Products 83 (i-),. ...... . 203.Pr~'se~a' .F~i:~S::-('and Vegetables 188 ~-2 ' yf~:,'" ... . . . · :'~:'~.?'"'"' 327 C~n~dt~."~YpSum;~./.~nd Plaster Produc~s 10 3 ..- ~ "~.~ 34~ Fi~ric~'~' 'S~ru~'~l ~e~ai Produc~s 25 2 ' ?,:'=..'.. 356 ~e~i'~i~h~U~trt~'~':~c'hinery . · 20 0"" [)"}:..' ' 359 Mi'~'celi~de:o~s ~c'~n'~ry; ~cept Electrical I1 6 ...... ..:~. · 421 TruCkins'.,,' 10 -":,'.' 753 ~c'0mo~.~:Ve'Re'pair Shops 5 .25 ' : "':' :'".....C". 287 ~'r'iC~tU~aiCheaicals 23 6 . ' ' -- : ,'... '. . · . ' .~...;.i.; / . '... . ;:'.'..: ~eighKed 'AVerage 13 .,'.:[ . . . , . ~,.seen.a~ve, '~he' averag~ [fl~ size of ~arge~ed industries ranges frOm'5- . '::' to !88 .'~plo~ees', with a weighted average of 13 employees. ... , . ~ ~. .,.:.; ~.'. .. . .' .?(. :::.. ::~ :~Ungy. :-an~C,~y.~.':.~;l'~:-~e'st:a.blish (a ,'Program' .~ea:?.~rke~ing:-,~;~promo~:$'o?,~' '..',..,. ' :' ' ' ' '"T'''''~ ~'Y';" ?'; .......~' "~"Y'"" ',' ; ' ........... . " ' ~':" '..':'~ ' ".' ....... '~ '- '~.":.~'.."~'.'~" ="~:"~'~'.'=C '"'?~':'.'".' .. :..: ' .,b~nefl, tefi:¥.and ~program incenC:~ves:~ :~n.?~che".'Frosr~. Area: pac~ge':.~:S~lecCed~::b7~.2¢:'~/." · :- '," ' '".., ' -gh~' ~.unc~}.;~and;~.':~l~y,;., ..... ~..~::.,.~,.,:,~ ...... .~., ,~,.- ~o 'i~U'$~.:("~n:general,,.. ~, · ..... .,, :~ ~ and'.. ~he ~ar~e~d.:~dUs.~rl'e'S:[~'~;~:~ .,. .0~!c!&:Icall~'.;... ..... ;~r~et&?gg.;outreach?:func~ion/:,.. ~i1 .;~::f.'d~c~::~.'ah~:~ 1'i~~' .'~: '.' ' .- ~-. ".'-..'.'?:z~,...- .-....;~ : .:...: ;....._..,......f~: .;: :.,: .,;.: :: ..: ,:....j:., ;........?: ~.:: . ?".: '? .'??..J?:!~f: .........~.?: .~'~'~,?'.'~";~' !.~,~;.:~'~'?. " . . · tO1 ' ~$: .cofita'cts: ~°;:,' rec'o~ttmen~s v a J'~f .15~ ':: ;';'f:~:: -' ...... - '~ :~' ' ~'"'" -procesS:i '.~e marketing end"promotion 'progiam'.will be".imp~:~$n{i~'~'~y: ~f:;.; ' '" - ' :-:.., ~::~:..';..,... ~'~60~ding C.o SgEZ,*.uarkettng'efforts co. date have ~esulced-ln ~clve c~/tnenCs and express/o~ of'Interest for:.the Of" ~roJ'eccs: Estimated ' Number of ~ployees. Ty~ of Bus,ness at S:ar:-U~ 2. ~ater ~reatmenc 36 3. ~ood ~rocesstng 2. ~, Pac~gt~ 65 ' 5. ~ld storage· 12 6. Oil 'PrOCessing 18 ...... 7. Plastic Molding 30, ', ' 60 ' 8. Furniture ~nufacturi~ ·. 6 . 9. NeChan°l Production -16" 10. ~eCal Structure Fabrication 20' '' i'l. Restaurant Food Supply 12. Timepiece ~sembly 13 ~c.el 12. , Ii.. Comercial Shopping Cen~er 25 ,j;./..:[ ~un~y/Ci~Y. Said applica~ions are in ~he enviro~ent~ review'stage. The budge~ ~ll come partially from revenues generated by the .~rPark and,. ~he balance will come from Economic Developmen~ funds 'from.che; 'Cic~hnd County ~DBG En:iclements. Ms°, funds ~11 be sought from :he'EDA~.'j[' AssistanCe and Redevelopmen: ~ency budget funds ti redevelopmen:'.. is,.., Recent dialogue among the greater Bakersfield develope~S".and prope'~',y Interests indicates the likeliho~ of a revitalized ec6nOmic deV'el0 mar'kecing effort largely led by the private sector, *WiCh~,6r"~ ~enc 'Chamber of Corette and Board of Trade participation,' ',. ~*"J ~,..i';"~:' i:.~ INTRODUCTION ' ? ~:? The Final' ~Ppl'ication for designation under the"EmploYmen=.and.I ~con. Omic.'iinCentiVe Act-of'1984, as amended, as submitted~bY'~t~ecounty ":~- p~0f..K'ekn 'and ;t'he'' City' of .Bak~r'sfield ~ mndicated that .marketin'g (eff:6?TM '.' / would be Und~rt~ken't°. assure the .best results in..."j0b.'.'dreat'~on~?This'.' '~' Marketing'Plan has.'b'eenprepared in'response to'that.'r"ePrese, tation~'. This.'Pl'~n.~h'as been.prepared bY'SEEZ.Corporatio'n.:''''SEEZ~is'a':'n°n~'..:. · profit corp0rati~°n that'Was'formed approximately'fOu'r''years ag°'-b~'~'a''''''' group of local.businesSmen to promote the area and to-0btatn-.desi'gnaj'~ .tion as'an-enterprise zone. SEEZ enlarged its board~to include. 15 · memberS~' some.of'whoTM .are representatives.of the"residential"communi~y in the. program. area and present a view point"that posits ho't only':-the'''.' interests'of the.marketing effort out also that.of' the:~'residentS. '.Thi .is felt to.be a real benefit to the community and'enhances SEEZ's. a'bi- !ity as the marketing agent' to gauge the community"s, needs: ' The Marketing Plan was developed with certain'persPectives.' .Most new jobs are generated from existing companies and new company start-' ups, rather than from outside firms establishing a business Therefore a consistent local effort must be maintained in order to provide opportunities for local firms to participate. EqUally impor-' rant, hOwever, is that when'outside Prospects come in, they'Will.view a positive business climate. Investment decisions'of.firms with~the. potential-for'expansion are' based on a number of key factors, includ, ing the overall business climate, the labor market, .the'-availabilitY . ~of development sites, access to reasonably priced capital for expan- Sion, supportive public improvements and educational 'and'training` opportunities. This plan has attempted to address those factors .in'. such a way that prospects will commit to expansion .or start-up in.our. program area. The role of the marketing agent is..to.be..the..conneCtinq link in all those factors, thereby assisting a business to. make.'-a :. decisiOn that will benefit this community. . '. The ultimate .goal of the Employment and Economic incentive Act Of 1984 is to make significant economic development, strides 'in areas which are high density unemployment areas (HDUA). The Final Application listed the following"objectives: 1. The recruitment of two businesses per year, on ~average,jan~ 2. The start-up of two businesses per year. .'.' 3. Within a 5-year period approximately 857 new ~jobS"will'~be · . cr'ea~ed, with an annual average of 177 new employment opportunities. . ..~...'~ This. Marketing Plan sets forth the manner by which those tires will be accomplished '- ,': A-1 & A-2 - "'" ':"' The County and City will provide within their respective Jurisdic- tions, low interest small business loans, loan guarantees, and tech- nical assistance to minority-owned small businesses in the Application Area and LakevieW Corridor through NEDA (the National Economic Development Association of San Joaquin Valley, Fresno), the local-serving Minority Business Development Administration (MMDA) Similar assistance will be provided to other small businesses in the .. Application Area through the local Small Business Administration (SBA), depending on SBA's future program authority. 19. The City will study the development of a Small Business Incubator in the proposed Application Area, providing new firms, in their early research and development phases, low cost floor space and shared overhead costs, possibly including maintenance, utilities, security, mini-computer access, secretarial services, copying, and phones ....., !..~ Small business assistance programs will be marketed to the entre- preneurs in the Small Business Incubator. Development and management !ii of the incubator will be performed by either the Greater Bakersfield Local Development Corporation, the City Economic Development/ Redevelopment Division, or the potential Redevelopment Agency if redevelopment is adopted. Program will be available in approximately :.:' - one year. ~i.. 20. The County and City will commit to multi-year annual funding of Application Area administration and operation costs, in order that · overall coordination be maintained and that continued tax benefit -'. eligibility be retained for the terms available in AB 514. The :'- .administration costs will be funded either by Community Development Block Grant (CDBG) funds, potential Redevelopment Agency funds (if /'. B-62 August 10,1988 YO DENNIS NEED~, ACTING DEVELOPMENT SERVICES DIRECTOR F~OM GEORGE GONZALES, CO,UNITY SERVICES COORDINATOR SUBdEOT BUSINESS DEVELOPMENT AND ~VITALIZATION FOR CENSUS T~CT 22 At the August 3, 1988 Budget and Finance Committee Meeting, Councilman McDermott asked for some background information on the Business Development and Revitalization Program for Census Tract 22 and projects funded to date. The Neighborhood Revitalization strategy was developed in 1982 after the rezoning effort of CT-22 was not excepted by the community. (See Attachment A) The first project to be funded under the Neighborhood Revitalization Program provided land acquisition and loan assistance to Henry Shipes and Clark Mitchell for construction of Roy's Road Stop Market at 431Lakeview. Mrs. Shipes and Mitchell owned a small neighborhood store located at 415 Lakeview. The project provided for the demolition of the substandard structure and construction of a 3680 square foot commercial building. The cost of the project was $206,000, of which $114,000 was loaned at a 9% rate due and payable over 15 years. The project provided for a full service convenience store and deli, a Laundromat and check cashing services. The project was completed March 1986. (See Attachment B) The second project funded under the revitalization effort in CT-22 provided for land assistance for the development of a convenience market owned by Vernon Strong located at 830 East California Avenue. This project is for the relocation of a convenience store located at 805 East California Avenue. Because of the limited parking this project was inefficient and did not allow for expansion of services for the neighborhood. Total cost of this project is approximately $332,000. The site is a 20,214 square foot parcel on which a 3,000-square foot commercial building will be constructed. This project will also provide gasoline islands. As a result of this project 5 to 11 new jobs will be provided. G28.9.4 Dennis Needham August 8, 1988 Page Two The third project developed under the revitalization program provided for land acquisition and loan assistance for construction of a 1,104 square foot building at 414 Lakeview. The owner, John Henry Johnson, operated a restaurant at this location for the last 20 years. The building was a substandard structure adjacent to an abandoned building. Mr. Johnson was able to purchase the 8,100 square foot parcel, demolish the structure and construct a 1,104 square foot building to house a restaurant, beauty salon and some additional commercial spaces. Total cost of this project is $110,000. The City provided a $28,000 loan for acquisition and a $75,000 construction loan. Mr. Johnson borrowed $95,000 at a 9% interest rate for 15 years. This project was completed in June 1988. (Attachment C) The last project assisted by the Neighborhood Revitilization Program was for the construction of 5,200 square feet administrative office and shop and storage building for John Enriques Construction. The City provided $65,000 at a 9% interest rate with deferred payments for the first 24 months with the term of the loan not to exceed seven years. Mr. Enriquez purchased a 30,000 square foot parcel located at 1211 Dolores Street. He was able to obtain construction financing for the construction of his building. The appraised value of this project was $325,000. The project was completed in April 1988. (Attachment D) Since the program of the revitalization effort began, four new businesses have been added in the Lakeview area. These projects provided services not found in these neighborhoods, and jobs to assist the economic revitalization of the area. The two projects located on East California and Dolores were within the Southeast Enterprise Zone. boundary. These projects will also realize tax savings as a result of SEEZ. G28.9.5 BUSINESS DEVELOPMENT AND REVITALIZATION PROGRAM FOR CENSUS TRACT 22 In view of the unacceptability of rezon~ng 'to bring about a.more coordinated land u~age, thought has. been given to alter- natives that will ~till~have a revitalizing effect in Census Tract In the absence of~ rezoning re~idential land ~se patterns ~wi continue to occur'without respect.go compatability of der~gity or location.' We c~ cont~ue~ to support.new residentimI cor~struct~io~ ~d rehabilitation but will not be able to affect land use patte~ns. In the absence of rezoning, commercial ~evitalization i~ sus. Tract 22 Will. ~volve hea~ co~i~ents .to a co~ercial corridor that is limited in its '.ability to ~crease its service market, is l~ited because it~ is located off the ma~ thoroughfares~ )~t om Lakeview Avenue ~ the heart of a residential co~unity- I~ order to promote neighborhood co~ercial in Census Tract 22 you must consider the locations of commerce, ally zoned l~d, the conditions of the structures, .the type of business eJtabli~i~euts, ~d their prcfitabiXit7' ~ The loCatio~s of the structures ~ the cogencY, ally zone(~ l~d are fixed.' .Efforts to relocate and consolidate commercial activities' were'fo~d to be ~acceptable to those that were willin.g ~o express their view on the subject of rezoning-~ The existing structures are deteri°rated and are poorly' Io~ cared on the land ~d thus are at a disadvantage when it comes. parking, accessability, their ability to attract customers,, and their ability to' be transfo~ed into a cohesive network of neighbo~ hood co~ercial establis~ents- The types of business establisbment, s in the area generally are conducted at low levels of efficiency and profitability. The business types are representative of those traditionally foxed in deteriorated shopping areas of lo~ income communities. A part:ia].. listing would be card rooms, pool rooms', taverns, and other liquor related establishments. These uses do not promote ~:enewed interest in coum~ercial activity. They tend to be the signature of a .co~mmer- cial area that has declined and can no longer at'tract: more profit>- able businesses; businesses that are ~p~ofital, le to the ~ommunity and the business owner. Examples of businesses that are ident-:i~ied. with viable commercial areas are shoe stores, markets, retail clothing stores, professional and personal, service offices, restau- rants, drug stores, fast food outlets or automotive 'parts stores. Therefore, commercial revitalization, in Census Tract and more specifically on Lakeview Avenue v~ll require new business development, technical assistance for viable businesses, dem¢,~ !it!on of deteriorated structures, acquisition an~ relocation businesses when the lot and/or building is substandard and removal of' establishments that .are detrimental to a re%~italization effort. The following are four approaches that are recommended for imple~ mentation .for commercial revitalization in Census Tract 22. I.' New Business Development Purpose: to promote the development of new ~,uS~ne-ss estat~lish- ments and the creation of new business opportunitJ_es on Lakeview Avenue. Mechanism: CDBG, UDAG, SBA and/or conventional financing will -2- be employed to develop ne.¥~ or substaritia].]y rehabili- tated commercial space on. Lakeview Avenue. The assistance will be used for closing gaps in develop- ment financing that will improve the profitability of the business venture. Results: new commercial space for the establishment of new businesses; generation of renewed .interest in. com- mercial activity through the provision' of new 'and improved layouts, structures and 'businesses estab- lishment s. Considerations: heavy subsidies may be required to attract new businesses and improve the operating efficiency of existing businessem: This will require f'ull council support. II. Technical Assistance purpose: provide assistance to existing bus,ness establish- ments to improve the level of know].edge and ability of the proprietor with respect to the operation ~heir business; ·improve the level of understanding of principles in the areas of finance, marketing, accounting, pricing and overall .management as they apply to the operations of a business. .MeChanism: Establish a business resource center where informa- tion can be obtained on operating a business.. should be contacted regarding the est:ab].ist~n¢:nt of a satalite office in Bakersfield or the delivery of support services in this area;'the }'._inority Business Development Center should be contacted to see what assistance they can Results: low efficiency busir~'-,~;,~:e~: will l,e provided a mechan- ism whereby they' can become a part of the mainstream of business activity; better consumer services c:an be delivered, operational ski].l~ l~i]l' improve improved co~ercial activity will Considerations: ~his will require a long term because it will involve e~tucal:~on, t:~aining~ .con- sultations, workshops, seminars, etc.., in order bridge the gap between desire and ini. tiative, anc1 ~owledge ~d ability; the investment: o'f time in a~inistering Such an effort will not have sh°rt: te~ results; results will come in t:he long t:'erm after ~uccesses compound on each other. III. Demolition of Deteriorated Structures P~pose: to remove substandard buildings from l.,akeview Avenue ~clud~g those that are funct:ionally and sl:ruct:urall, y obmolete ~d az:e ikavir~g a bli~htir, g inf?.'~c~ce on Lite area; this would coinci{le with the ne~ business deve]ot~ ment progr~; ~d the acquisition and relocml:ion pro- progr~. ~ Mech~ism: CDBG f~ds will be used to pay for demolition. Results: 'the coordinated removal of substandard structures. Considerations:. possible resistance from owners of deteriorated structures that o~ them'free of deter and are satisfieC with low level rents. IV. Acquisition and Relocation Purpose: to provide for the orderly and Compensatory reloca- tion of businesses that are capable of growing and co~ercial space t:l-,z~t was dJ. scussed in the new business developmer)t section of th~.s Mechanism: in accordance with the Uniform Acquisition and Relocation Guidelines, properties will l,e acquired with viable co~ercial establishments; efforZ~s will be made to relocate them into new co~nercial space to be deve],oped on the east: s~de of La]%aview.Avenu~- the structures at the old location ~,~J. ll be demo making way for better utilization of spa.ce on ~St side of Lakeview Al, epue. CDBf; and UI)A(; fund: will be used for this purpose. Results: this activity will support the preceding programs; this will create 1st phase occupants for the new space utilizes the existing viable l, usinesses on Lakeview Avenue. Considerations: hea~ capital co~itments ~_11 be required 'go fzci~iaaUe the acquisition znd r~!oczuion procegs. Some bus.ess' and property, o~ers may not be to participate if they have to incur any debt. This effort is proposed in place-of the use of rezoning to provide for a more 'appropriate location and mix of-residential and co~ercial uses ~ Census Tract _22. It should l~e noted that many of the activities mentioned would have to be employed even if com- mercial activity was successfully relocated to Brundage or California Avenue as originally proposed. However,. the effort now will be ~c~ore intensive, more long term, and will be more complicated do to the extent of deterioration and economic stagnation that exists on Lake- view Avenue. (A ACHM£NT B) GRAND OPENING ROY'S ROADSTOP RETAIL SHOPPING FACILITY TIME: Monday, April 7, 1986 at 12:00 Noon PLACE: Roy's Roadstop Retail Shopping Facility 437 Lakeview Avenue (S.E. corner of Houser Street and Lakeview) Bakersfield, California EVENT: The grand opening of the first new commercial space since the Lakeside Business Development and Revitalization Strategy was adopted on June 15, 1983. Roy's Market/Deli has 2,164 sq. ft., C & H Check Cashing has 600 sq. ft. and The Wash and Dry Laundromat has 91.6 sq. ft. of floor space. The total square footage is 3,680 sq. ft. FUNDING FOR PROJECT: $114,000 loan and $10,000 grant from the Ba'kersfield Community Development Department and $82,000 from the owners Henry and Sharon Shipes and Clark and Gloria Mitchell The ' ~ · ~o~al project costs are $206,000. John W. Trice Jr Building Contractor bu_=~ ~he complex for $128,000. ' REASON FOR PROJECT: The store lies in Cehsus Tract 22 which has primarily iow income residents. There were only 2 small stores which sold a limited selection of groceries in the area. .Co'nsequentiy, the residences of the neighborhood had to travel more than 2 miles to a Safeway Supermarket for many of their grocery purchases. Mr. and Mrs. Shipes and Mr. and Mrs. Mitchell could not enlarge their Sou! Town Market at ~15-425 Lakeview because of lack of parking space a~d the poor condition of the store building, so they sold that property and built the new facility at 431Lakeview. The Wash and Dry was built, because there is not a laundromat in Census Tract 22, and many low income people do not own both washing machines and dryers. The check cashing business will also include purchasing of money orders, post office boxes and 'utility bill paying. NEWS RELEASE GROUND BREAKING C_RAJ~Oi~E~ JOHNSON'S RETAIL SHOPPING FACILITY TIME: Monday, May 18, 1987, at 11:30 a.m. PLACE: Giant Burger, 414 Lakeview Avenue. (S.W. corner of Lakeview Avenue and Murdock Street) Bakersfield, CaliforKia. EVENT: The ground breaking of the second new commercial space since the Lakeview Business Development and Revitalization Strategy was adopted on June 15, 1983. Johnson's Facility will provide a new building for a barber shop, beauty salon and their existing ham- burger business. The Johnsons have operated their business from the Giant Burger building since 1962; that building will be demo- lished. The new building will contain 1104 square feet and the new parking lot will provide increased on-site parking for customers. FUNDING FOR PROJECT: $90,783 loan from~the Bakersfield City Community Development and $18,072 from the owners John and Alma Johnson. The total project cost is $108,855. John W. Trice, Jr., building contractor, will build the project. Technical assistance for the project has been provided by (NEDA) the Bakersfield Minority Business Development Center. REASONS FOR PROJECT: The project will lie in Census Tract 22 which contains primarily low income residents. These people have to travel to other neighborhoods to purchase many of the goods and services which are not present where they live. The business which is being enlarged (the burger stand) and the two businesses which are being introduced (the barber shop and the beauty salon) is an attempt to provide more goods and services to the local Lakeview community and to help revitalize it as well. PROJECT SPONSORS: Bakersfield City Community Development, and NEDA. MASTER OF CEREMONIES: Stanley C. Grady, Bakersfield City Community Development Coordinator GUESTS: Members of the City Council and news media STAFF CONTACT PERSON: David Bates, Bakersfield Community Development Department 326-3764. *****PRESS RELEASE***** GROUNDBREAKING FOR ENRIQUEZ CONSTRUCTION CO. Councilmember James Childs broke ground today for 'the initiation of larger facilities for Enriquez Construction Co. at 1211 Dolores Street, Bakersfield. Upon completion of construction, the two story 5,200 square foot metal building will include 2,400 square feet for office space, with the remainder to be uti- lized for the shop and storage. The lot size of 30,000 square feet will pro- vide adequate room for storage of the construction firm's equipment and vehicles. Enriquez Construction Co. has had a surge of growth in the last four years - their annual growth rate has been over 80%. This growth has enabled the company to increase its bonding capacity from $100,000 to $250,000, allowing for larger contracts. The company has also identified new programs for the California Housing Finance Agency (CHFA) and the Small Business Administration (SBA) which will increase growth for the company. The SBA in particular recently approved a Section 8(a) set-aside program for which Enriquez Construction Co. will receive a portion of all federal contracts in Kern County over the next four years. Because of all these reasons, Construction Company anticipates hiring 10 to 20 new employees. In order to assure the creatio~ of jobs, the City of Bakersfield has pro- vided acquisition assistance in the amount of a $65,000 loan secured by a sec- ond deed of trust. Particularly since Enriquez Construction is locating in the High Density Unemployment Area (HDUA) of the Enterprise Zone, new jobs are critical to the effort. Because of its minority ownership, Enriquez Construction may be eligible for employment incentives under the Waters enter- prise zone legislation. Their location was chosen in order that they would receive benefits under the enterprise zone. Some benefits the company may take advantage of are a hiring credit for new employees, sales tax credit on some machinery, expensing of depreciable property and preference points for bidding on state procurement contracts. NEDA, the Minority Business Development Center, also provided technical assistance to Enriquez Construction in preparation of their loan application. For more information on the project call John Enriquez, Enriquez Construction Co. 325-8896 or George Gonzales, City of Bakersfield 326-3764. PRESS1 MID STATE DEVELOPMENT CORPORATION 515 Truxtun Avenue Bakersfield, CA 93301 18051 326-3765 August 3, 1988 David Lyman Economic Development/ Redevelopment Division City of Bakersfield 515 Truxtun Avenue, Bakersfield, CA 93301 Dear David: Per your request, following are the final "housekeeping" details necessary to complete the lease between the City of Bakersfield and Mid State Development Corporation. Although it's taken us all almost two years to get to this point, it's exciting to realize that we are within days of actually starting work on Bakersfield's Small Business Incubator. I'm prompted to remark on the exceptional cooperation that has been extended to Mid State by you and the other staff members in the Economic Development Division, as well as by other City staff people. Without exception, everyone enthusiastically bent every possible effort to help the project come to this point. The Lease - Final Details The Board of Directors of Mid State Development Corporation, and it's legal counsel, have approved the lease as it is presented today, including the following details, and has authorized me to sign on behalf of Mid State. We assume the lease commencement date will be the day the lease is approved by the City Council, and executed by the Mayor. Exhibit "A", referred to in Page 1, will be a plot plan of the former Corporation Yard. The square footage figure to be inserted will be "36 500" Performance standards, Exhibit "B", in outline form, are attached hereto. The required Certificates of Insurance, i.e., liability and fire will accompany the lease when it is presented to the City Council for final approval and execution. As required, LESSOR, i.e., Councilmembers, officers and agents will be added to all required insurance policies as "additional insureds". Again, thank you for your support, encouragement and technical expertise that was essential in moving this. project forward. David G. Parker, ~esident Mid State Development Corporation cc: Dale Hawley City Manager Dennis Needham Acting Assistant City Manager Paul Shillcock Acting Economic Development Director AGREEMENT NO. COMMERCIAL LEASE THIS LEASE is made and entered into this day of , 1988 by and between the CITY OF BAKERSFIELD, a municipal corporation, referred to herein as the ("LESSOR") and MID STATE DEVELOPMENT CORPORATION, a California non-profit corporation, referred to herein as the ("LESSEE"). LESSEE and LESSOR are referred to in this lease without regard to number or gender. RECITALS WHEREAS, LESSOR owns property commonly known as the Old Corporation Yard more fully described as set forth in Exhibit "A" which is attached hereto and incorporated 'by reference. Said property is now used by LESSOR for storage. Said property is generally in a state of disrepair and will need extensive refur- bishing to accommodate other uses; WHEREAS, LESSEE is desirous of. utilizing LESSOR's property on a short term basis to operate a small business incubator which may improve the City's (LESSOR's) tax base, improve economic diversification, and create jobs. The proposed project will renovate and substantially improve the aesthetic appearance of the property; WHEREAS, LESSEE anticipates placing approximately thirty-five (35) small businesses into the incubator when the project is operating at full capacity; NOW, THEREFORE, based upon mutual promises, covenants, and warranties contained herein, LESSOR and LESSEE agree as follows: AGREEMENT 1. DESCRIPTION OF PREMISES: LESSOR leases to LESSEE, and LESSEE hires from LESSOR, the premises described in Exhibit "A" consisting of approximately square feet in building floor space. Exhibit "A" is attached hereto and incorporated 'by reference as though fully set forth herein. -1- 2. TERM: The term of this lease is five (5) years from the date of execution unless sooner terminated as set forth herein. Thereafter, this lease shall renew annually, on the anniversary date of its execution, for one year terms unless sooner terminated as set forth herein. 3. RENT: The rental rate under this lease is one dollar ($1.00) per year. Said rent is payable on the second day of each year in lawful money of the United States of America, which LESSEE agrees to pay LESSOR without deduction or offset, prior notice or demand, at such place or places as may be desig- nated from time to time by LESSOR. 4. PERFORMANCE STANDARDS: LESSEE shall comply with the performance standards for renovation and project start-up set forth in Exhibit "B". Failure to comply with said standards shall be deemed a material breach and shall result in termination of this lease. 5. USE OF PREMISES: The premises are leased to be used as a small business incubator. LESSEE agrees to restrict its use to such purposes and not to use or permit the'use of the premises for any other purposes without first obtaining the consent in writing of LESSOR. LESSEE shall keep the premises in a clean, sanitary, and well-maintained condition during'the term of this lease and any extension or renewal. 6. PARKING: LESSEE shall provide.adequate parking for the uses undertaken on the premises. 7. COMPLIANCE WITH ALL LAWS: LESSEE shall, at LESSEE's sole cost, comply with all of the requirements of all Municipal, State and Federal authorities now in force, or which may hereafter be in force, pertaining to the use of said premises, and shall faithfully observe in said use all Municipal ordinances and State and Federal statutes now in force or which may hereafter be in force. The judgment of any court of competent jurisdiction, or the admission of LESSEE in any action or proceeding against LESSEE, whether or not LESSOR is a party to the action, that LESSEE has violated any such ordinance or statute in said use, shall be conclusive'of that fact as between LESSOR and LESSEE. 8. SUBORDINATION: This lease is subject and sub- ordinate to all existing leases and to all mortgages and deeds of trust which may now or hereafter affect the real property of which the leased premises form a part, and to all renewals, modifications, replacements and extensions thereof. The LESSEE agrees to execute any instruments for the benefit of the LESSOR as may be necessary to effectuate this provision of the lease. -2- 9. NO USE THAT INCREASES INSURANCE RISK: LESSEE shall not use the premises in any manner that will increase risks covered by insurance on the building where the premises are located, so as to increase the rate of insurance on the premises, or to cause cancellation of any insurance policy covering the building. LESSEE further agrees not to keep on the premises, or permit to be kept, used, or sold thereon, anything prohibited by any policy of fire insurance covering the premises. LESSEE shall comply, at his own expense, with all requirements of insurers necessary to keep in force any fire and public liability insurance covering the premises and building. 10. NO WASTE, NUISANCE, OR UNLAWFUL USE: LESSEE shall not commit, or allow to be committed, any waste on the premises, create or allow any nuisance to exist on the premises, or use or allow the premises to be used for any unlawful purpose. 11. DELAY IN DELIVERING POSSESSION: This lease shall not be rendered void or voidable by LESSOR's inability to deliver possession to LESSEE at the beginning of the lease term; nor shall such liability to deliver render LESSOR liable to LESSEE for loss or damage suffered thereby. If LESSOR cannot deliver the premises at such time, the rent for the period between the beginning of the term and the time when LESSOR can deliver possession will be deducted from the total rent of the lease. No extension of the lease shall result from a delay in delivering possession. 12. PAYMENT OF UTILITIES: LESSEE shall pay for all utilities furnished the premises for the term of this lease, including electricity, gas, water, telephone service, rubbish pickup and all other associated with maintaining the facilities. 13. REFURBISHING, REPAIRS AND MAINTENANCE: LESSEE shall, at LESSEE's sole cost and expense, refurbish said premises and bring the premises up to all currently applicable code standards including but not limited to fire, electrical., plumbing, and building codes. The design of the improvements and renovations shall be approved in advance by the Public Works Director. All plans and specifications for improvements to the property shall be approved by the Public Works Director of the City of Bakersfield prior to any work being performed. LESSEE, at LESSEE's expense, shall maintain and keep the entire premises, including, without limitation, windows, doors, air conditioning, Heating, skylights, adjacent sidewalks, store front, exterior and interior walls, and roof, in good repair and in clean and sanitary condition. LESSEE expressly waives all right to make repairs at LESSOR's expense under Section 1942 of the Civil Code, and all rights provided in Section 1941 of the Civil Code or any sub- sequent code provision covering the same or similar matters. -3- 14. TAXES: LESSEE shall pay all taxes, fees, or other levies placed upon the business, or the premises, of every description which are levied or assessed during the term of this lease, including possessory interest taxes. 15. CONSENT FOR AND TITLE TO IMPROVEMENTS: LESSEE will refurbish premises in phases as set forth in Exhibit "B". LESSEE shall not improve or alter the premises in any manner with- out the prior written consent of LESSOR. He shall, before making any improvements or alterations, submit plans and designs to LESSOR for his approval prior to any submissions for building permits. If the plans and designs are not approved, such improvements or alterations shall be made only with such changes as may be required by LESSOR. All improvements and trade fixtures shall be of good quality. All improvements or alterations erected or made on the premises shall, on expiration or sooner termination of this lease, belong to LESSOR without compensation to LESSEE. LESSOR shall have the option, to be exercised on the expiration or sooner termination of this lease, to require LESSEE to remove any or all such improvements or alterations. LESSEE shall be permitted to remove trade fixtures not associated with the original refurbishing of the premises. 16. DELIVERY, ACCEPTANCE, AND SURRENDER OF PREMISES: LESSEE has inspected the premises and accepts the premises in their present condition as is. At the termination of this lease, or any extension or renewal, LESSEE shall surrender the premises to LESSOR in a good state of repair and in a sanitary condition, allowing for reasonable use and wear. LESSEE shall remove all business signs or symbols placed on the premises by him before redelivery of the premises to LESSOR, and shall restore the portion of the premises on which they were placed in the same condition as before their placement. All improvements shall be the sole property of LESSOR. 17. PARTIAL DESTRUCTION OF PREMISES: Partial destruction of the leased premises shall not render this lease void or voidable, or terminate it except as herein provided. LESSEE hereby waives any rights he may have under the provisions of Sections 1932(2) and 1933(4) of the Civil Code, or any subse- quent code provisions covering the same or similar matters. If the premises are partially destroyed during the term of this lease, LESSEE shall repair them, when such repairs can be made in conformity with local, state, and federal laws and regulations, within 180 days of the partial destruction. Rent for the premises will be reduced proportionally to the extent to which the repair operations interfere with the normal conduct of LESSEE's business on the premises. If the. repairs cannot be so made in 180 days, either party has the option to terminate this lease. -4- 18. LESSORS ENTRY FOR INSPECTION AND MAINTENANCE: LESSOR's reserves the right to enter on the premises at reasonable times to inspect them, to insure the performance of the terms of this Agreement, or to make additions or alterations to any part of the building in which the premises leased are located, and LESSEE agrees to permit LESSOR to do so. LESSOR may, in connection with such alterations, additions, or repairs, erect scaffolding, fences, and similar structures, post relevant notices, and place movable equipment without any obligation to reduce LESSEE's rent for the premises during such period, and without incurring liability to LESSEE for disturbance of quiet enjoyment of the premises, or loss of occupation thereof. 19. SIGNS, AWNINGS, MARQUEES, ETC.: LESSEE will not construct or place, or permit to be constructed or placed, signs, awnings, marquees, or other structures projecting from the exterior of the premises without LESSOR's written consent. LESSEE further agrees to remove signs, displays, advertisements or decorations he has placed, or permitted to be placed, on the- premises which, in LESSOR's opinion, are offensive or otherwise objectionable. If LESSEE fails'to remove such signs, displays, advertisements, or decorations within thirty (30) days after receiving written notice from LESSOR to remove the same, LESSOR reserves the right to enter the premises and remove them, at LESSEE's expense. 20. NONLIABILITY OF LESSOR FOR DAMAGES; INDEMNITY: LESSEE shall indemnify, defend, and hold harmless the City of Bakersfield, its Council and their officers and employees against any and all liability, claims, actions, causes of action or demands whatsoever against them or any of them for injury to or death of persons or damage to property arising out of, connected with, or caused by LESSEE, LESSEE's employees, agents or independently contracted individuals or companies in the performance of the terms and provisions of this Agreement. The City'(LESSOR) shall be named as an additional insured on any insurance'policy covering LESSEE's activities as set forth in this lease. 21. LESSEE TO CARRY INSURANCE: (a) LESSEE to obtain liability insurance. During the term of this Agreement, LESSEE shall maintain a single limit comprehensive general liability insurance policy in an amount of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence with combined liability for personal injury and property damage with a reliable insurance carrier authorized to do business in the State of California. Said policy or policies of insurance shall expressly name the City and its agents, officers, and employees as -5- additional insureds. Said insurance shall not be subject to cancellation, non-renewal, or coverage reduction without thirty (30) days written notice to City. LESSEE shall provide to the City proof of insurance endorsements and certificates of insurance prior to execution of this Agreement. Said proof of endorsements and certificates of insurance shall be attached to this Agreement as Exhibit "C". (b) LESSEE to obtain fire insurance. Ail improvements located on or appurtenant to the leased premises shall be kept insured against loss or damage by fire and other such risks as are now included in extended coverage endorsements and common use for commercial structures, including vandalism and malicious mischief. The amount of such insurance shall be sufficient to prevent either LESSOR or LESSEE from becoming a co-insurer under the provisions of the policies, but in no event shall the amount be less than 90 percent (90%) of the then actual replacement cost excluding cost of replacing excavations and foundations but without deduction or depreciation (termed in this Agreement "full insurable value"). (c) LESSOR named as additional insured. LESSEE agrees to add LESSOR and LESSOR's Councilmembers, officers, and agents as additional insureds on all insurance policies required by this Agreement. 22. MECHANICS' LIENS: LESSEE shall not suffer or permit to be enforced against the leased land, or any part thereof, any' mechanics', materialmen's, contractors', or subcontractors' liens arising.from any claim growing out of the work of any construction, repair, restoration, replacement, or improvement, or any other claim or demand whatsoever that may arise, and LESSEE shall pay or cause to be paid all such liens, claims, or demands before any action is brought to enforce the same against the leased land; and LESSEE agrees to indemnify and hold LESSOR and said leased land free and harmless from all liability for any and all such liens, claims, and demands together with reasonable attorneys' fees and all costs and expenses in connection with any such action. If LESSEE fails to discharge such lien or furnish a bond against the foreclosure of such lien, LESSOR may, but is not obligated to, discharge the same or take such other action as LESSOR deems necessary to prevent a judgment or foreclosure upon said lien from being executed against the leased land, and all cost and expense, including reasonable attorney's fees incurred by LESSOR, shall be paid by LESSEE within thirty (30) days after demand, and if unpaid, may be treated by LESSOR as a material breach of this lease enabling LESSOR, as its option, to terminate this lease. -6- 23. LESSOR'S PROTECTIVE PROVISION: In the event LESSEE shall fail to pay and discharge or cause to be paid and discharged, when due and payable, any tax, assessment, or other charge upon or in connection with the leased land, or any lien or claim for damages arising out of, the construction, repair, restoration, replacement, maintenance, and use of the leased land and its improvements, or any judgment on any contested lien or claim or any insurance premium or expense in connection with the leased land and improvements, or any other claim, charge, or demand which LESSEE has agreed to pay or cause to be paid under the covenants and conditions of this lease, and if LESSEE, after thirty (30) days written notice from LESSOR to do so, shall fail to pay and discharge the same, then LESSOR may, at its option, pay any such tax, assessment, insurance, expense, lien, claim, charge, or demand, or settle or discharge any action or judgment concerning these items, and all costs, expenses and other sums incurred or paid by LESSOR in connection with any of the foregoing items shall be paid by LESSEE or LESSOR upon demand. Failure to so pay upon demand shall constitute a material breach of this lease by LESSEE enabling LESSOR, at its option, to terminate this lease. 24. LESSEE'S ASSIGNMENT, SUBLEASE OR LICENSE FOR OCCUPATION BY OTHER PERSONS: LESSEE agrees not to assign or sublease the leased premises, any part thereof, or any right or privilege connected therewith, or to allow any other person, except LESSEE's agents and employees, to occupy the premises or any part thereof, without first obtaining LESSOR's written consent. LESSEE shall supply all sublessees with a complete copy of this agreement as a part of any sublease. This agreement shall be incorporated by reference into all subleases. One consent by LESSOR shall not be a consent to a subsequent assign- ment, sublease, or occupation by other persons. LESSEE's unauthorized assignment, sublease or license to occupy shall be void, and shall terminate the lease at LESSOR's option. LESSEE's interest in this lease is not assignable by operation of law, nor is any assignment of his interest in this lease, without LESSOR's written consent. LESSOR understands that the purpose of LESSEE's operation is to sublease to small businesses and LESSOR shall not unreasonably withhold consent to sublease said premises so long as subleases agree and do comply with the terms of this agreement, the terms of the sublease, and all laws. 25. LEASE BREACHED BY LESSEE'S RECEIVERSHIP ASSIGNMENT FOR BENEFIT OF CREDITORS, INSOLVENCY OR BANKRUPTCY: Appointment of a receiver to take possession of LESSEE's assets (except a receiver appointed at LESSOR's request), LESSEE's general assignment for benefit of creditors, or LESSEE's insolvency or taking or suffering action under the Bankruptcy Act, is a breach of this lease. -7- 26. LESSOR'S REMEDIES ON LESSEE'S BREACH: If LESSEE breaches this lease, LESSOR shall have the following remedies in addition to his other rights and remedies in such event: (a) Reentry. LESSOR may reenter the premises immediately, and remove all LESSEE's personnel and property therefrom. LESSOR may store the property in a public warehouse or at another place of his choosing at LESSEE's expense or to LESSEE's account. (b) Termination. After reentry, LESSOR may terminate the lease on giving thirty (30) days written notice of such termination to LESSEE. Reentry only, without notice termination, will not terminate the lease. (c) Relettin~ Premises. After reentering, LESSOR may relet the premises or any part thereof, for any term, without terminating the lease at such rent and on such terms as he may choose. LESSOR may make alterations and repairs to the premises. 1. Liability of Lessee on Reletting. LESSEE shall be liable to LESSOR in addition to his other liability for breach of the lease for all expenses of the reletting which LESSOR may incur. LESSOR may at any time after such reletting terminate the lease for the breach because of which he reentered and relet. LESSOR may recover from LESSEE on terminating the lease for LESSEE's breach all damages proximately resulting from the breach, including but not limited to the cost of recovering the premises, and attorney's fees. (d) Appointment of Receiver. After reentry, LESSOR may procure the appointment of a receiver to take possession of and collect rents and profits from LESSEE's business. If necessary, to collect such rents and profits the received may carry on LESSEE's business and take possession of LESSEE's per- sonal property used in the business, including inventory, trade fixtures, and furnishings, and use them in the business without compensating LESSEE therefor. Proceedings for appointment of a receiver by LESSOR, or the appointment of a receiver and the conducting by him of LESSEE's business, shall not terminate this lease unless LESSOR has given LESSEE written notice of such termination as provided herein. 27. EFFECT OF EMINENT DOMAIN PROCEEDINGS: Eminent domain proceedings resulting in the condemnation of a part of the -8- premises leased herein that leave the rest usable by LESSEE for purposes of the business for which the premises are leased will not terminate this lease, unless LESSOR at his option terminates it by giving written notice of termination to LESSEE. The effect of such condemnation, should such option not be exercised, will be to terminate the lease as to the portion of the premises condemned, and leave it in effect as to the remainder of the premises. LESSEE's rental for the remainder of the lease term shall in such case be reduced by the amount that the usefulness of the premises to him for such business purposes is reduced. All compensation awarded in the eminent domain proceedings as a result of such condemnation shall be LESSOR's. LESSEE hereby assigns and transfers to LESSOR any claim he may have to compensation for damages as a result of such condemnation. 28. VOLUNTARY SURRENDER: The voluntary surrender of this lease by LESSEE, or a mutual cancellation of this lease, shall not operate as a merger, and shall, at the. option of LESSOR, terminate all or any existing subleases or subtenancies or may, at the option of LESSOR, operate as an assignment to LESSOR of any or all such subleases or subtenancies. 29. HOLDING OVER: Any holding over or continuation of any business by LESSEE after the expiration of the term of this lease shall be considered a material breach unless written approval of such holding over is given by LESSOR. 30. WAIVER OF DEFAULT: The failure of any party to enforce against another a provision of this Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time, and shall not serve to vary the terms of this Agreement. 31. FORUM: No lawsuit pertaining to any matter arising under or growing out of this contract shall be instituted in any state other than California. ~ 32. TIME: Time is of the essence in this Agreement. 33. HEADINGS: All paragraph or section captions are for reference only and shall not be considered in construing this Agreement. 34. NOTICES: All notices relative to this Agreement shall be given in writing and shall be sent by certified or registered mail and be effective upon depositing in the United States mail. The parties shall be addressed as follows, or at any other address designated by notice: -9- LESSOR: CITY OF BAKERSFIELD 1501 Truxtun Avenue Bakersfield, CA 93301 LESSEE: MID STATE DEVELOPMENT CORPORATION 515 Truxtun Avenue Bakersfield, California 93301 35. BINDING EFFECT: This Agreement shall inure to the benefit of and be binding on the successors in interest and assigns of the parties. 36. ATTORNEY'S FEES: In any action to enforce the terms of this Agreement, the prevailing party shall be entitled to recover its attorney's fees and court costs and other non- reimbursable litigation expenses, such as expert witnesses fees and investigation expenses. 37. TERMINATION: During the first three (3) years of this Agreement LESSEE may only be terminated for cause, including, but not limited to, non-compliance with the performance standards set forth in Exhibit "B". Failure to conform to the performance standards or any other covenant, warranty, or condition contained in this Agreement, or implied by law, will allow lessor to terminate on thirty (30) days written notice. During the remaining term, this lease may be terminated by either party on nine (9) months written notice. LESSOR may give LESSEE notice to terminate prior to the expiration of the three year term so long as said notice does not result in the removal of LESSEE prior to the completion of the first three years of the term of this Agreement. o0o -10- 38. MERGER AND MODIFICATION: This contract sets forth the entire agreement between the parties, and supersedes all other oral or written provisions. This contract may be modified or terminated only in a writing signed by all the parties. o0o IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. "LESSOR" CITY OF BAKERSFIELD By Mayor APPROVED AS TO FORM: ARTHUR J. SAALFIELD City Attorney By COUNTERSIGNED: By Finance Director "LESSEE" MID STATE DEVELOPMENT CORPORATION By Title -ll- ADD/ig 07/13/88. City. of Bakersfield / Mid State Development Corporation Lease ~ '/~/i '~'~"' ~'~ 1,. Mid Stato Dovelo~ent Corporation, (LESSEE), it's Diroctors,- officers, employees and agents will comply with all terms, conditions and requirements~ of this' lease. ~""'-'-~"' --. .... -'~. .:" ' ' '"' ..:~?..:.:.':.. 2;'.'. Within 90 days',_ (or sooner}', of the execution of this.lease, LESSEE will present a' preliminary development/renovation' plan -to' the appropriato City departments sufficient in detail~ to support ~:i ...... '- ""' ~' .... 3." Within' 90 days, (or soonor), of tho execution of this lease, ~SS~ shall, havo mado application to applicable fund~n~ sourcos for ~rant mon~es required to accomplish thSs projoct. 4. ~th~n ~0 days, {or sooner} ~ of receipt of the required City permits, LESSEE will commence actual renovation and construction of the First Phase .of the project, consisting of the shared-services facilities and rental spaces for proposed small business tenants requiring space at that point. -'.~..~... ~.~-~ . . .. 5.' The balance' of the project will be built out in an orderly manner, as called for by the market demand for the tenant spaces. CUED Bookshelf BFsine$$ Self-Hel_D: Federal, State eui(Je Using Special Improvement Districts Now Available " Spedal improvement districts (SID) , imag~? Now available through CUED is The . go by different names in different states, ' ' one of the greatest strengths of such GuidetoStateandFederalResourcesfor but they have a common feature: busi- programs is that they address the "free EconomiC D~vel0pment, published by nesses or property owners within a de- rider" problem endemic to voluntary the Northeast-Midwest Institute. It ann-freed areaor district agree to payaspecial associations. Often, the most active and lyzes thebenefits and risks of eight acrid- tax or licensing fee to fund improvementscommitted businesses in an area spend a ties that have grown rapidly in the 1980s and services of mutual benefit, disproportionate mount of time and -- business development, finance, tar- SID provides a steady source of tic money for benefits and services enjoyed gered development efforts, infrastruc- nancingforprojectsandpr°grams,which~ by all others in an area. ture, cooperative research and develop- are usually implemented by a manage- Once a SID has been established by merit centers, trade, training and tax in- ment entity responsible to district mem',, municipal ordinance} an agreed-upon cenfives. ' bers? amount is collected from businesses on a Under senior editor Charles Bartsch, The SID technique has evolved in regular basis as part of the city's normal the staff provides in-depth studies on 60 tandem with efforts to revitalize down- revenue collection system. -Funds ~re9 successful state programs. Includes ad- town and neighborhood commercial then available for SID programs anO dresses and phone numbers for all fed- areas. SID can help older commerdal projects,bypassingtheonerousandfim? eral and state programs listed. 394 p. districts match the safe, attractive and consuming task of solidting donations CUED members $33.75, non-members accessibleshoppingenvironmentoffered while enSuring that buSinesses part!~ci5 $37.50 0aardcover $45 and $50). by the newer retail malls, pate equally. ~ Though the scope of SID programs often extends to physical improvements, A 'Hard Sell' Initially Citie~ of Opportuni~ Findine the_ that is not the usual emphasis, according Best Place tO Work, Live and Prosper in.to Lawrence Houstoua of The Atlantic Thomas Ahem, director of the Jersey the 1990s and Beyond. is a consumer Group in Cranbury, NJ. Rather, the City Economic Development Corpora- guide and handbook for exploring work- usual thrust is the "soft" side'of manage~ tion (EDC), finds that getting businesses~ lng and living options into the next cen- ment and operations.~ to agree to what looks and sounds like an .' tury. Written by Dr. John Tepper Marlin, additional tax can be a "hard sell" ini:) it critiques 42 major U.S. dries and met- Sl~Offer$ Alternative ~tially? But unlike voluntary donations, the ropolitan areas, giving an overviewofjob idea only has to be "sold" once~y ~ opportunities, lifestyles ia selected resi- As outliaedbyHoustoun, who helped EDc discovered that overcomiag' dentialareas, cost ofhousing' schools and draft New Jersey's 1984 SID enabling business owners' natural resistance to a universities, recreational facilities, cul- legislation, SID offer an alternative to new,' and compulsory, charge needs a tural organi?ations, medical facilities,the sporadlcand disjointed efforts of vol- substantial amount of up-from planning religious institutions and more. untary merchant or business associa- and consensus building. The job information includes names tions. With a steady funding streaxg~;, Jersey City's experience illustrates and types of businesses that offer thebest groups can institute professional district- some of the pitfalls in establishing SID. outlook and most promise for new open- wide management, contract for needed~ With a limited commercial revita_li?ation ings. It also analyzeswhich cities offer the services lLke supplemental sanitation andbudget of about $150,000 in CDBG most opportunities for women and mi- security, mOve to reduce vacancies and~ fuads, EDChadhopedtostimulateiater- norities, improve the retail mix, and undertake est in SID by offering planning and devel- It is $13.96 from: MasterMedia Ltd.,joint marketing to build a unified district: opment grants to merchants' groups in 333 W. 52nd St., Suite 306, NewYork NY 10019, (212) 246-9500. page softcover book describes more thJ Jersey City's older commercial districts. When the response was less than 180 federal and 500 state programs and thusiastic, EDC. sought the advice of services, plus three organizations, that CUED's peer-to-peer technical assis- The 1988-1989 edition of Federal and offer assistance to tn'ms in these areas -- tance program. State Business Assistance: A Guide for t'mancial, technical, marketing, manage- On recommendation of the CUED New and Growing Companies is avail- ment, information and networking, team, EDC now concentrates on provid- able. It is $29, plus $3 handling (NTIS lng technical assistance to help groups Prepared by the Center for the Utili- Order # PB88-101977), from: NTIS, analyze their markets and reach a shared zation of Federal Technology at The U.S. Department of Commerce, 5285 sense of problems and potential opportu- Department of Commerce's National Port Royal Road, Springfield VA 22161, nities. Technical Information Service, the 170- (703) 487-4650. . (Continued on page 7) Economic Developments/5 July 31, 1988 Improvement DiStricts proliferate; Job Mart President. Newly created non-profit org. seeks (continued from p. 5) president to adm. and direct affordable housing Onccther¢isconsensusonacours¢of cityp]nnners, who were charting a major programs. Rcsponsibilities include development of housing fund, implementation of affordable action, there should Dc greater rcceptiv- redevelopment effort for thc entire area. housing initiatives, and management of corporate ity to USC of special districts for financing Thc result was a commitment of affail~. MBA or related degree and min. 5 years and implementation, Ahem said. U]VITA and CDBG funds for a $20 mil exp. in re. al estate, econ. or neighborhood do/cl., Jcrscy City is not thc only city that has llon improvement program, contingent finance or urban planning rcquircd. Covericttcr, resume and salary requirement to: Search Corn- experimented with SID for neighbor- on thc willlngncss of Fulton Street busi- mittec, Indianapolis Neighborhood Housing Part- hood commercial revitalization. How- ncsscs to underwrite ongoing maintc- nership, Box44403, Indianapolis IN46244. Ecg. ever, improvement districts arc even nancc costs. more common in downtown areas. Taking Nicollct Mall in Minneapolis Revitalization expert. The National Trust for His- toric Preservation sccks expert in revitalization of Elizabeth Stabler, vice president of as a model, planners and representatives traditionaldowntowns and neighborhood business thc Intcrnatiorm] DowntownAssociation of area businesses developed local and districts. Emphasis on citieswith populations over (IDA), reports that between half and state legislation for establishment of a $0,000. Oualifications:3ycarsprof. cxp. inprcser- ration-based revitalization of commercial areas; at two-thirds of IDA's 300 member cities special assessment district (SAD) cn- least 1 year exp. tcaching or training othersi excel- have established sPecial assessment dis- compassing Fulton Street. lent communication sk~lis; entrepreneurial out- triers or improvement districts for down- look and strong human relations skills; willingness town revitalization. Success Breeds Others to travel extensively;, and ~aduatc level education Common uses include financing for or professional dc~v.c. Salary $27,000-31,000. Resume and cover letter by 9/15 to: The National promotional programs, business recruit- Thc success of thc Fulton Street SAD Trust for Historic Preservation, 1785 Massachu- merit, and transportation programs such and several others created at about thc setts Ave NW., Washington DC 2003&. as frcc parking or shuttle services that same time lcd to passage of New York Scott Gerloff. cnhancc downtown access. State's Bu.~incss Improvement District Deputy City l~,~-cr, Community De~lopmeat. enabling legislation in 1981, which obvi- Glendale, Az. Ov~:rsee 54-person staff in depart- Cfi Jeiji I:l~m~nt$ lot $u¢¢~$$ ares the n¢~d to seek special approval ments of Economic Dewlopment, ?lanning & from th~ state l~gislatur~ for establish- Zoning, Building Safety, Administrative Support and the Development Services C. enier. Glendale is Thes~ progr~m.~ offer a number of merit of such districts, rapidly-growing community ~djacent io Phoenix l~ssons for those considering similar cf- Th~stickyissu~ ofs~ttingass~ssments (pop.~:~,ooo), ranted among youngest, bes~-eclu- forts. Crucial elements includ~ well-, was addressed in the case of the Fulton ca~e~ and most affluen~ in ~h¢ Valley of the Sun. drawn enabling legislation, agreement Street Mall by basing assessments on the ?¢rson must be team playerandexc~llent commu- ·'-- nicator, with min. ? years local government cxpcri- on objectives, a broad-based board that a.~-~'S~t'-valuation of each property, once, including community development ~and/or represents the various interests that will Thus, as Strasser points out, assessments planning. Must have strong analytical, decision-. be affected, and clear procedures for arelinked to the ¢conomicvalu¢ of prop- ma~ng and public relations skills, alon~ with ex- ' implementation, erfies in a readily understandable and tcnsivc knowledge of techniques of progrcs~iv~ management and community development. HA in The most potentially divisive issue - generally acceptable fashion, public/business administration or urban planning, the assessment formula itself- needs to To allay property owners' fears, an plus MPA, de. sired. Salary to $79,000. Submit be addressed with a clear understanding initial cap of $'300,000 was set on the total resume immediately to: Ellin Spenser, Jensen- of the expected ben,fits, as well .as who mount that could be raisedbyth~ assess-' O~dani & Associates, Inc., One Bellevue Center,. #$?0, 411 108th Ave NE, Bellevue WA 98004. will be assessed, ment - a cap subsequently raised to 1% A good example of the SIDS tech-;;, of the. total assessed valuation in the niqu¢inacfionktheFultonStr¢¢tMa]l[' district, or about $1 million based on CU£D'sJobMartad$cost$5Oiorupto in Brooklyn, N~w York. Michael Stras- current values. 75 words, w/tb longer ads pro-rated on set, clir¢ctor of the Fulton MallImprow- Monies raised by the special assess- the same basis. We reserve the right to ment Association from its inception in ment (currently set at 0.798%) are sup- ed/tcopytofitoured/tor/a/$~/ew/tbout 1977 until 198/, described thc Mall's' plem~nted by revenues earned from cbang/,gtbeessent/a/natureoitbead. development and operations, kiosk rentaL% leasing arrangements with Job Mart ads reach a nat/onwde Fulton Street in downtown Brooklyn telephone companies, and licensing fees ence oiprofess/ona]$ in the economic has long been a major shopping district, for sidewalk cafes, development field, in both the public characterized by a large number of small In 1987-88, the projected revenues of and private sectors. retailers. By thc early to mid-1970s, thc Fulton Mall Improvement Associa- congestion on thc narrow street had fion'wcrc $819,000 agsln~t expected ex- such deVelopments. reached epic proportions, underm{n{ng penses of $785,000,/ncluding $185,000 Even so, it itlustrates the substantial the shopping environtncnt at thc same for staff and admlni~tration, potential that may exist for harnessing time that a newmall had begun to siphon As a pioneer in thc usc of thc special thc collective resources of an area'.~ busi- away shoppers. . improvement district t¢chn{qu¢, Fulton ness community. Conc~rned business owners met with Mall operates on alarger scale than most -Mary McLean July 31, 1~88 Economic Developments/7 BUDGET AND FINANCE COMMITTEE REPORT NO. 33-88 JULY 27, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: DOWNTOWN IMPROVEMENT DISTRICT BUDGET FOR FISCAL YEAR 1988,89 On May 11, 1987 the Proposed Annual Budget for the Downtown Improvement District (D.I.D.) for fiscal year 1988-89 was referred to the Budget and Finance Committee for review. The Budget totals $50,100. The.major source of revenues is from district assessments which total $49,000. The Budget submitted by the Downtown Business Association is comparable to the one approved by the Council for fiscal year 1987-88. They do not anticipate any significant changes in D.I.D. revenues and feel the $49,000 in assessment revenue is a conservative estimate. The Budget includes expenditures associated with the promotion and improvement of the Downtown Area including the annual Christmas Parade, Street Faires, and other promotional events conducted by the Downtown Business Association. The Committee has reviewed the Budget in its role as Trustee of the D.I.D. f6nds and recommends the Proposed Annual Budget be accepted and approved. Respectfully Submitted, Councilmember Donald K. Ratty Councilmember James Childs Councilmember Kevin McDermott ADMINISTRATIVE OFFICE ADMINISTRATION AND COURTS BUILDING COUNTY ADMINISTRATIVE OFFICER Bakersfield, California-93301 Telephone (805} 861-2371 CITY MANAGER'S OFFICE July 20, :[988 Mr. Dale Hawley, Manager City of Bakersfield 1501Truxtun Avenue Bakersfield, CA 93301 RE: PUBLIC-PRIVATE COOPERATIVE AGREEMENT FOR ECONOMIC DEVELOPMENT IN KERN COUNTY On July 19, 1988 the Board of Supervisors approved the attached amendments to the referenced agreement. It has also been approved by the Kern Economic Development Corporation (KEDC). As the attached cover letter indicates, the primary change accomplished by this agreement is to shift more economic development responsibilities to the KEDC and away from the Board of Trade. The Assistant Board of Trade Manager position is eliminated and contract funds provided to KEDC to perform those services. The City of Bakersfield is a participant in the agreement and your concurrence with the proposed amendments is requested. Once you approve the amended agreement, please sign all three copies of the enclosed document. Retain one copy for your files, and return two to this office. Thank you for your cooperation in this matter. Should you or any of your staff have questions, please contact 3oel Heinrichs, Director, Policy Analysis & Intergovernmental Relations. Sincere. fy County ~mini~trative Officer GT/JH/ka/(~hcob ADMINISTRATIVE OFFICE AD~41NISTRATION AND COURTS BUILDING COUNTY ADMINISTRATIVE OFFICER 1415 Truxtun Avenue ( ~;~~~~ Grow T~r B~erHield. CslHorni,-93~1 Telepho~ 18~) 861-2~1 ~ '~~ July 19, 1988 Board of Supervisors County of Kern 1415 Truxtun Avenue Bakersfield, CA 93301 RE: PUBLIC-PRIVATE COOPERATIVE AGREEMENT FOR ECONOMIC DEVELOPMENT IN KERN COUNTY In response to the February 10, 1988 Report of the Kern County' Board of Trade Ad Hoc Planning Committee, the Board of Supervisors directed to County Administrative Officer to enter into negotiations with the Kern Economic Development Corporation (KEDC). The intent of these negotiations was to restructure responsibilities as outlined in the Board of Trade report. The specific request of the Board of Trade was as follows: "Request the Kern County Board of Supervisors to direct the County Administrative Office to enter into negotiations with the Kern Economic Development Corporation to eliminate the Assistant Manager position. The services now performed by the Assistant Manager should be provided via a contractual arrangement." The proposed agreement amendments accomplish this goal. The primary changes to the current agreement are highlighted below: -- Responsibility for organizing the annual Export Trade Seminar is shifted from the Board of Trade to KEDC. -- Responsibility for acting as the local liaison with the California Department of Commerce is shifted from the Board of Trade to KEDG. -- The Board of Trade responsibility for a specific list of special projects has been adjusted to increase Board of Trade flexibility. The Board is now required to accomplish projects "which may included, but are not limited to" the enumerated list. -- The Board of Trade will now provide three offices (rather than two) to the KEDC. -- The base level of fiscal support required for the Board of Trade is reduced to reflect the elimination of the Assistant Manager position. -- The requirement of additional, in-kind support for office supplies, utilities, telephones, and computer - equipment and maintenance is reduced from S30,O00 to $18,000 to reflect ongoing costs rather than initial purchase and installation costs. -- The County is required to pay $35,000 to KEDC for the provision of specific services (some of which would have formerly been assigned to the Assistant Manager). -- Exhibit A, which describes the existing relationship between KEDC, Kern County Board of Supervisors, Board of Trade and Kern Economic Development Council, has been revised to better reflect actual relationships. The combined impact of these changes, in addition to clarifying and streamlining the responsibilities of KEDG and the Board of Trade, will be an approximately $20,000 reduction in Board of Trade costs for the support of KEDC. Based on the previous action of the Board of Supervisors directing the Administrative Office to implement this restructuring, and the resulting savings to the Kern County Board of Trade, IT IS RECOMMENDED that the amended agreement be approved and forwarded to the City of Bakersfield for their concurrence. (The KEDC Board of Directors has already ratified the agreement). Sincerely yours, ~~trative Officer GT/JH/ka/ppca THIS A~m~:~T, mmde ~ ~te~ ~to ~ ~ 1~, 1987, ~ of ~, a ~ltti~ ~visi~ of ~ S~te of ~tfo~a (~ter ,,~,,), ~ ~ ~ ~ of ~, ~ ~ of (~ter "~ of ~"), ~ C1~ of ~fteld, a ~ci~l o~z~ ~ ~st~ ~ ~ 1~ of ~ S~te of ~tfo~a (~ter "Ci~"), ~ ~ ~m ~c ~l~t ~~ti~, a ~ifo~a WITN~MS~TM : with ~ directly reflects the stre~th of its ~i~~ ~ oil: ~ i~i~ ~ ~~t~ ~ ~~ li~ of ~ of i~t~, ~ ~~r 22, 1986, a ~ of o .... ,~ ~ ~~ 1~ co~ti~ ~t~ to at~~ ~ ~~ to ~ ~; of ~ ~ ~ ~~te w~ ~t ~ ~ effo~ to ~ ~t ~ l~te ~, ~f~a ~t ~ ~t~ 26~ au~r~ ~ ~ of ~i~ of ~ ~ to ~ ~~t~ to ~ of Karn Co~y, and to do so tn cooperation with ~ Jo~tly ~ ~t~t wt~ foully ~ ~ ~t of a Jolt ~ltc-~i~te effo~ to WH~, the affor~ble l~d, ~~r, except~o~'l ~ucatto~l i~titutio~, ~ excellent rail ~il~le tn ~m ~W, ~ it ~rtate ~hli~ p~ ~t will ~ ~~i~ ~i~i~ti~, ~~ti~ ~ ~ft~ ~ ~s effo~; 1. ~A~ ~ ~ ~1, a ~-~ ~~t~ ~ (~) In ~rtt~lar. the (2} The Council shaii serve as an lnformatic~al channel ~ the rural axxt urban o:.,.m~littes and citizens of K~rn C~unty. b. This agreement provides a structure, as depicted cxi the diagrams ~rked Exhibit "A" (current structure} ar~ Exhibit "B" (inter~l~d future structure} attached hereto, and procedure that will enable g~verrm~nt and private industry to coordinate t~ir efforts and rescu~ in ~ting the ecor~c diversification and dswl~t of Kern County. c. This agreement also provides for the sch~ed review of the ~arkirmj structure as it is the parties' intent that, as circumstances permit, the activities and personnel 9f the Board of Trade and the Corporatio~ ~ill be combined to effect co~t savings and efficie~cy; and toward that en~, on or before April 1, 1989 and at leest annua/ly thereafter, the par~iee sba/1 formally constdsr modtfyin~ th/s agre~-w~t in an effort to move to~wd a public-private partnersh/p st_ructuzred in the -~uner depicted in Exhibit "B", at t~ched hereto. 2. KERN ~ ECONC~/C DEVELOP~T COUR~IL There is hereby created the K~m County ~c D~velcFm~mt Council ( a. M-~d~rshXp - The Council shall consist of: (1) Board of Directors of the Kern Ecormmtc Devel~t Corporatic~, (2) Board of Directors of the Board of Trade, (3) The Chairm~n or a deeignated repreeentative of the Board of Supervisors, (4) The Mayor of the City of Bak~rsfield, (5) A ~_-p~ntati~ of _~h ~rated ci~t~, within (6) A ~~ti~ of ~h ~r of ~~ ~ ~W, to ~ ~t~t~ ~ t~ ~~; a ~t l~t~ of ~ ~~ of ~s ~~, ~-~ ~btt "G" ~ ~~t~ ~ ~ ~s ~fe~, (7) A ~ep~esentative of each business, visitors wi~ ~ ~, ~t~t~ ~ l~ ~ of Dt~o~, (10) ~ o~r ~~ti~ ~ ~ ~il ~, ~ ~JoriW ~te, ~~ ~ t~ to b. ~tt~ - ~ ~il ~1: of ~ ~ ~1 mtt~ ~r~ to ~c ~1~ ~ actlvitl~, (R) ~i~ pro~s~ ~ accomplish~ activities of the (3) ~s the ~rfo~ce of ~ e~l~te ~ p~tiviW ~ ~ o~ ~ ~iviti~ of ~ ~~ti~ ~ ~ ~ (4) Through its irziividual .~--hers, solicit the L-kcut and parttcipmti~ of local businesses, (5) Assist the Corporation and the' Board of Trade in identifTing ~c da~el~t opportunities and pr~oti~ strategies, (6) ~Maks r~mmm~datia~ regax~ staffing, other business matters of the Corporatiog% and the Board of Trade. c. ( 1 ) The entity, o~janization, or .o_,,.-,ruity appointing ea_ch Council member shall be responsible for all c~ets associated with its representative's parttcipmttcm in Council activities, i.e., travml, lodqirz3, per dfem, etc. (2) The Gounctl shall develop its c~n ~ for the conduct of Its business. (3) The Preside~lt Of the Gorporaticzl shall serve as secretary to the Ccauactl. (4) The Chairperson of the Board of Directors of the Corporattc~ shall sez-ve as Chal~m~n of the Gcxa~cil until such time as the Council determines oth~se. (5) Each rmpz~sen'tative and its ~irz3 agency may provide support to the Council, i.e., rmd carpet to.rs for potential businesses, fur~s, staff time, mmtm~tals, supplies, acccmm~datic~s, etc. 3. ~ KER~ EGCe~MIC ~ CORPORATION The (~ttcm% is a n~m~ofit, public benefit coz-poratio~ organ/zed for the purpoee of attr~ctir~; n~w business and tr~try in Kern County, to ret2tn exist~r~ ir~ustry and businesses currently located in Kern County, to cc~ptle a c~reher~ive data bsse to be used in attracting a~ retaining ~try, and 5 to support the develop.mt of a skilled aad expertem~md labor for~ (2} ~ ~ ~i~ a ~rtt~ cl~te for Actively seek out ~i~ie ~~ ~ i~tri~ (4} ~e eve~ effort to rmach. ~ t. ~simt extsti~ (9) ~,~mk~ efficient and effective use of t_he re~ourc~ supplied (10) Keep the Council informed of its activities; (11) C~x~sider the ~ttons of the Council: (12) Solicit fur~ farm private sources in support of Cx~rl~orattc~ ~ ~ C~tl ~ tl~tr ~-tlvtttes. (13) Develop statistical research, studies and reports regard/r~ de~o~jra~l/cs, busi __r~!~__ and industry data and other data rele%-ant to actual and potentia/ ~~c devel~t in Kern County. (14) Act as lia/sc~ with the Ca/iforrLta Depel-~aent of (15), Organize. and manage special projects that promote the ecor~.{c interests of Kern County, incl,~r~; but not l~m~ted to the Expor~ b. Board of Directors. The eleven ~mher BC~L~d of Directors of the Corporation shall ccxmist of: (1) One _--~r appointed by the Board of Supervisors of the County of Kern; (2) One _-~r appointed by the Board of ~; (3)~ ~e .~h-r appointed by the City Council of the City of Bakersfield; (4) Two members appointed by the Kern County Association of Cities; (5) Six members repreeent~ the private sector; the origina/ incorporators shall selec~ the in/rial six private sector _.w~.~ers and their replacements shall be selected ar~ appointed by the then r~n~n~ private sector members of tl~ Board of Directors. c. An~u~ ~. The ~orporatlc~ s,ha.ll Im-ovtde no 1~ ~ $100,000 ~lly ~rom ~rl~te so~ces to e~ble t~ to ~~ t~ ~ttvitt~. ~ or ~fo~ J~y 1, 1987 ~ ~ ~ ~t~ ~ ~r ~o~ ~tl 1, ~ ~~tt~ ~1 ~~ to ~1 ~tt~ ~ttt~ ~t~ ~t ~ ~ is or will ~ a~l~le prior to ~t~r 1 of ~ ~t ft~ ~ for ~~tt~'s ~. ~ ~s or ~r ~t~ ~ ~11 ~ ~l-t~ ~1~ o~ ~ ~~tt~. p~isi~ of ~r~' ~~t~ ~. (a) ~ ~ ~~ to ~ ~tl, ~ep the Oo~ctl info~ on the Cor~rati~'s (c) ~i~ ~ or ~r s~f~ (2) ~ ~t~t ~1 ~~te ~ly wi~ ~ ~r of at 2101 ~ ~t, ~field, ~if~a, ~ ~ ~ t~ ~ pl~ ~ e. Offi~ ~~. ~ ~~tt~ ~1 p~i~ ~1 offi~ f~nishi~s for its Pr~ident ~ his or ~r ~~ ~ ~1 o~r 8 property of th~ Corporation. f. ~ ~t ~ ~ ~iviti~. ~ly ~ or ~fo~ to ~ ~r~ in ~~ of l~ ~ ~ ~~ti~ activitl~ ~ ~t ~ ~ to ~ ~ ~ ~ Gi~ for ~i~ ~ ~ ~ to ~ir ~ti~ ~tri~ti~ to ~ ~~ti~'s ~tivtti~. g. ~~t ~t~tor. ~ ~at~ to ~1 o~r ~ti~ to this ag~t ~ ~ ~ ~ttvttt~ ~t to ~s ~t, 4. ~ OF ~E ~rt of ~ ~~p ~t~: (1) ~~ ~ ~ ~i~ ~J~ ~ ~bi~ ~t limtt~ to, the ~1 Kern Co~ ~~ ~tl~ ~e~, ~ ~i~~ ~, ~ ........ ~--- bi~ ~ ~ D~r for State L~is~ato~ ~ ~~to, ~ ~r ~ite~' ~, ~ o~r Buttonwtll~ ~ Intmrstata S ~t ~; ~[~t ~ li~ wi~ ~ ~ ~ti~ ~ ~l~t of ~ ~; (2) Produce and publish pro~ttcm~l nmterials, (3) Perform statistical research, states ~ re~rts ~ ~~~j ~~ ~ ~t~ ~ ~ o~r ~ ~l~t to i~ ~i~; (4) ~te t~i~ ~ fi~ ~ ~ (5) ~ ~ ~ ~t~t~ for ~ ~~ of ~~ to ~ ~ of (6~ Prepare resolutto~ ~ procl~tio~ honori~ or b. ~ di~t ~rt of ~ ~~tl~ ~ t~ ~ttvitt~ ~ of ~ ~1 ~ly ~ ~~ti~ ~ folloW: o~r ~ ~lp~ to (2~ Reaso~ble assistance tn de~loping the statisti~l 'info~tton ne~ by the Cor~ration to ~rfo~ its activiti~ 3 ~ Offi~ ~ for ~ of ~ ~~ti~ at ~ ~ of ~Bt~ of ~ ~ offi~ for ~ of ~ ~~ti~; 10 11 ~t .... - ~ .... - - -~ ~ .... ~" for ~ of ~ ~1 ~~te Mlywt~ ~ ~t~t of ~ ~~ti~. 5. ~9~ for ~ch ~ ~ ~tt~t~ ~~. ~ntt~ti~ ts ~ for ~t fi~ c~tri~tt~ to ~~tt~'s ~tlvitt~ ~ of ~t~ of ~W. ~ ~ ~1 ~ ~t~ $35,~ acttvitt~ l~t~ ~1~. ~ ~ ~i~, a p~i~ to ~ ~ of ~ ~r ~ 12 1. Provide t~LlCa~ am~t~anc~ and (~terlv Report coord_~r~ttom o~ t~trlal ~l~t ~J~. 2. ~t~ i~o~tt~ ~ ~te of ~y ~rt ~~t~ ~ta ~ tn ~tattm ~1 State ~mtW~ ~mfi~ld. 3. Fox,late ~ ~l~t a ~~i~ ~terly ~rt of ~ ~t. 4. ~t~ p~ ~W ~C ~rt ~ 12/31/88 ~l~t St~t~i~ for ~tt~ of ~ t~l~- tt~ pl~. ~ ~r a ~rt~ of ~r~/ ~terly Fi~, ~t-~t~ ~ ~ This prcvistc~ of the ~t shall be reviewed armmm31y by the County. .... If the ~tlc~l fa/is to ~tely perform these services, this provision my be votcl~d__ with 30 days notice by the County to all other parties listed in Secttm 19: Notices. 13 ' (b) ~ Joint us~ of .r~-c~ptt~ arKl m~ttrx~ ~ ~ (C) A.ll I~madel~ cost8 (e~t!m~tmd te ~ ~ ~ ~ ~d ~ ~tt~: o~ ~ (d) M1 ~~ ~ ~ ~f~ to '~, 4 ~ Office supplies ~d se~tces, tncl~ tern b~ at'~,a ~t mt to ~ $12,7~ ~m~ly; It ......... 11 6. CITY 5UPPGRT The City sha31 provide'the Corporation $50,000 annually; ~ ~ ~1 ~t~r 1 ~h ~ ~fter ~t ~ tern of ~ ~t. ~r or ~ttt~ ~rt ~ ~ Ct~ ~1 ~ ~j~ to ~ of ~ CtW ~tl of Ci~. a. ~s ~t ~1 ~ ~ ~1 fo~ ~ eff~t ~h J~ 30, 1992, ~ ~y ~ ~ for ~ti~ fi~ ~ te~ if ~ b. At ~ ~ of,~ te~ of ~s ~t, if ~t ~ or o~i~ ~, or ~ t~ti~ of ~'s ~ici~tt~ ~ ~s ~t, if ~ ~ ~~, ~ ~~tt~ ~1 ~ ~ at 2101 ~ St~t, ~field, ~Xfo~, ~ ~ ~1 ~~t ~ ~li~ to ~ ~ ~t ~tri~t~ ~ c. ~ ~t ts ~t~ ~ a fl~t st~ t~ ~ eff~ti~ ~ ~t~,(~ ~lic-pri~te ~P. d. ~ ~i~ ~1 ~i~ ~ly ~ or ~fo~ ~il i ~ ~~ of ~ effor~ ~~ ~t to ~ ~t ~ ~te~ ~r it is f~ible ~ ~ficial to ~li~te ~r ~ ~ti~ ~ ~~ ~l~t ~iviti~ ~f~ ~ ~ ~ of ~ ~ ~ ~~ti~ ~i~ly. ~ ~ ~i~ ~ ~1~ ~ ~ti~ of ~~ c~~, ~ ~ ~~ti~ ~ at ~t t~ ~ ~i~ ~-f ~ ~ t~ of ~s ~t. ~ ~ ~~ ~ ri~t to te~t~te i~ ~ici~ti~ ~ ~s ~t for ~ ~t fi~ ~- ~ ~li~r~ ~itt~ ~tl~ ~f to ~1 ~l~ ~ or ~fo~ ~y 15. 14 8. PARTIES' LIABILITY Each p~ shall be ~iable om/y for its c~ d~bts, liabilities, and obltgati~r~. No part shall be liable in any ~ay for the debts, lta~tlitte~, and oblt~attcr~ of any other party. County shall be liable c~%ly for its employees, lr.:ludL-~ '~a.--.~'--' ..... .~.. ~ and damages arising frc~ their acts. City shall be liable only for its ~lcyees and damac3~ arising their acts. C~rporatton shall be liable for its c~n employees and damages arising frc~ their acts. Except as explicitly provided for by this ~t, no debt, liability, or obligation of any ~e party to this ~t shall cc~stttute the debt, liability or oblt~ttm of any of the other parties to this Each of the parties to this ~t s~ll irml~m~fy armi hold harmless t~ other parties to this ~t for any ~, costs, or liabilities arising out of the a¢~s or c~isstcms of its ~ officers, agent, s, and -~91cyees. 9. The Corporattm shall, at Corporattm's expose, m~t'ntain in effect at all times durtr~ the perfoz~ _r~ of activities ~r autc~obtle insurance m .any aut____~ob_ tlc of C~,-porattm or Its perscrs~l used hereur~?_ - at least at the leal required by California State 1~ armt ~ th~ Octmty ar~ City as 10. ~ AND ~I~)IFICA~ONS ~ m~z~t sets forth tiae ~tt~e t~xters~rz3 between the parties ~ s%~pe~ ~1 otl~r o~ or wrltte~ l~tstcaas. 15 1~. ASSIG~4ENT The ~ight~ and duties ~escribed h~rein shall ~t ~ ~i~ wi~t ~ ~io~ ~itt~ ~t of ~ ~i~ ~to. 12. ~ ~ ~'~ ~ of ~ ~t~ ~to pl~ t~ ~~tt~ to ~ o~r ~to in ~ ~li~ of ~ ~ of ~ ~t. · 13. s~ILI~ ~i~ to ~ ~ c~lict wi~ ~Y 1~ of ~ ~t~ S~t~ or of ~ S~te of ~lifo~a, or o~i~ ~ ~or~le or ~ff~], ~ ~i~ of ~ ~i~ ~, te~, ~i~ or ~ist~ ~1 ~ ~ ~~le ~ ~t~ to ~ter ~to ~ ~ fi~t ~~. 15. ~ OF D~T ' ~t~t ~1 ~ ~ti~t~ ~ ~m ~, ~lfo~a. 16 17. ~8. ~~ ~1 ~ or ~i~ in ~t~ ~s ~t. 19. in ~ ~t~ S~t~ mil. ~ ~smti~ Offi~r 1415 ~flmld, ~lfo~ 9330~ ~r 2101 ~r CtW of ~field 1501 ~ A~ ~sfteld, ~ifo~a 93301 P. O. ~ 1312 ~field, ~ifo~a gsa2 20. B~ ~ ~ ri~ ~ obli~ti~ of ~s ~t ~1 ~ to ~ ~fit of, ~ ~ bl~t~ u~n, ~ ~i~' to ~ ~t=t ~ ~i= ~i~,' ~st~to~, ~to~, 17 21. CORPUSCulE AUTHORITY Each ir~vtdual e~i:~ this A~reemen~ repreeents and ~tt~ ~ a~~ wi~ t~ te~. 22. ~ ~~ ~SIO~ ~~ ~ ~~ or ~li~t ~or ~l~t ~~ o~ ~, c~, color, ~, or ~ti~] orig--. ~ ~rati~ will orig.. // // /! 18 Financ~ D~r~c'cor Public / Private Partnership., Board of Trade/Kern Economic Devel. Corp ,' ,' Corporatioa' s Ilirectorl :KERN COUNTY ECONOHIC OEVELOPRENT COUNCIL: ( ltoard of Trade's Directors : : Representative O~ Board o~ Supervisors Representattye ~f each city co~ncil R~rese~tatiYe of each chaiber o~ coaeerce RepresentatiYe ~f each local developtent corp. Representatives ~rol u~incorporatKI coelunities , : KERN ECONOIIIC : OEVELOPRENT CORP. PRESIDENT Functions as defined Functions as defined in Paragraph 4 in Paragraph $ EIHIBIT 'B' DIRECTORY OF . C}L~MBERS OF COMMERCE IN KERN COUNTY ARVIN C}UkMBER OF COMMERCE GREATER FRAZIER PARK C}L~MBER OF COMMERCE Pres. Verner Stenderup* Pres. Mildred Church* Sec'y-Manager Mrs. Joyce Robinson** Sec'y Anne Jones** P. O. Box 192 (805) 327-2053* I1. P.O. Box 763 (805) 245-3738* W.. Arvin, 93203 854-2265** Frazier Park, 93225 245-1286'* W. Meetings: 1st Monday (Board) Meetings: 2nd Wed./?:30 p.m. 3rd Monday (Regu/ar) (Every other month) Arvin Con~jrec3ational Church/12 noon Conmm~nity Hall GREATER BAKERSFIELD C~-IAMBER OF C~CE INYOKERN C}L~MBER OF C0b~4ERCE Pres. Wayne Killmer Pres. Leroy Marquardt* Exec. V.P. Douglas A. Yavanian** Sec ' y Peggy Breeden** P. O. BOx 1947 (805) 327-4421'* P. 0. Box 232 (619) 377-4532* W. Bakersfield, 93303 , Inyokern, 93527 377-5772** H. Meetings: As scheduled Meetlr~3s: Last Tues./7: 30 p.m. by Committee Town Hall BORON CHAMBER OF COMMERCE KERN COUNTY BOARD OF TRADE Pres. F.O. Roe* Pres. Mrs. Kay Meek Sec'y Mrs. Paulette Batman** Manager 3a,nes Radoumis** 27044 20-Mule Team (619) 762-6688* W. P. 0. Bin 1312 (805) 861-2367'* Boron, 93516 762-5650** W. Bakersfield, 93302 Meetings: 2nd Tues./12 noon Meetings: 2nd Wed./3 p.m Boron Musetun 4th Tues./7 p.m. Board of Trade Conference Roc~ BU//~NWILLON CHAMBER OF C~CE & AG. KERN COUNTY HISPANIC CHAMBER OF C(lwP~mRCE Pres. Mrs. Barbara Blair* Pres. Jess Ramirez Sec ' y Sharon Ghi 1 arducci * * Sec ' y Manue 1 Art io la P. O. Box 251 (805) 764-5528* H. P.O. Box 30289 (805) 328-0730 Buttonwlllow, 93206 764-5406'* Bakersfield, 93385 Meetings: 3rd Thurs./7:O0 p.m. Meetinc3s: 3rd Wed./6:30 p.m. Ch~nber Office Beale Library CALIFORNIA CITY C~U~MBER OF COMMERCE KERN RIVER VALLEY VISITORS COUNCIL Pres. Mrs. Colleen Moser* Pres. Bob Myrann* Sec'y Virginia Burnett** Sec' y Debbie Wiruth** P. O. Box 2181 (619) 373-8021' W. Box "0" (619) 379-2805 W.* Callfomla City, 93505 373-8676** Lake Isabella, 93240 376-2224 ** W. Meetings: 1st Thurs. (Board) Meetings: 4th Thurs./12 noon As announced 6:30 'p.m. 3rd Thurs. (Reg.) 6:30 p.m. DELANO DISTRICT C~{AMBER OF COMMERCE .KERNVILLE C~L~MBER OF COMMERCE Pres. Hubert Rabanal* Pres. Don Enebo** Exec. V.P. Mrs. Dorothy Knight** Sec'y Mrs. Rose Ann Viton** 931 High Street (805) 725-3817' W. P.O. Box 397 (619) 376-3468* W. & H. I)elano, 93215 725-2518'* Kernvllle, 93238 376-2629** Meetings: 3rd Tues./~ p.m. Meetir~js: 2n~ Fri. (Board)/12 noon Chamber Office Chamber Hall 4th Mon. (Reg.)/7:30 p.m. 7/88 ~{~MBER DIARY . Page 2 LAKE ISABELLA CHAMBER OF CCIW~IERCE ROSAMOND C~LkMBER OF COb~M~3RCE Pres. Ed Fugate Pres. Bobby Maley* Exec. Sec'¥ Mrs. Janie Braun** Manager Mrs. Pec39Y Shult** P. O. Box 567 (619) 379-5236** P. 0. Box 365 (805) 256-2087* H. Lake Isabella, 93240 2654 Diamond St. 256-3248** W. Meetir~3s: 2nd Thurs. (Board) Rosamond, 93560 Mon., Wed., Fri./lO a.m-4 p.m. 12:30 p.m. Chamber Office Meetings: 1st & 3rd Thurs./7 p.m. 4th Thurs. (Reg.) C~m,,unity Building 7 p.m. Veterans Hall LAMONT CHAMBER OF C06~4ERCE ROSEDALE HIGHWAY BUSINESS ASSOCIATION Pres. Dennis Shaffer* Pres. Mrs. Selma Bartell P. 0. Box 593 Chamber Office** 2001 Calloway Dr. (805) 589-0353 W. Lamont, 93241 (805) 845-0864* H. Bakersfield, 93312 Meetir~3s: 833-3800** Meetings: 3rd Tues./11: 30 a.m. Casa Lopez 2nd Tues./12 noon LOST HILLS CIVIC ASSOCIATION , SHAFTER CHAMBER OF CObIMFRCE & AG. Pres. Steve Bottoms Pres. Mrs. Sandy Wiechnann* P. O. BOX 574 (805) 797-2664 W. Sec'y-Manager Marc~aret Chrlstensen** Lost Hills, 93249 797-2428 H. P. 0 Box 1088 (805) 746-4991' W. Meetings: 4th Mon./7:30 p.m. Shafter, 93263 746-2600** Lost Hills C~nmunity Bldg. Meetings: 2nd & 4th Fridays/12 noon Shafter Motel .. ~3JAVE CHAMBER OF CCb~dERCE TAFT DISTRICT CHAMBER OF COMMERCE Pres. Bill Farmer Pres. Gene Smith Sec ' y Manager Ms. Judy Butch** 15836 Sierra Highway (805) 824-2481'* 314 - 4th Street (805) 765-2165'* Mojave, 93501 Tues-Thurs/lO a.m./2 p.m. T~ft, 93268 Meetings: 2nd & 4th Thurs./7:30 a.m. Meetings: 3rd Wed. (Board) 7:30 a.m. Reno's Sierra Rooms Great Western Savings & Loan NORTH OF THE RIVER CHAMBER OF COMMERCE GREATER TEHACHAPI CHAMBER OF COMMERCE Pres. Hazel Miller* Pres. Dan Ingrain* Sec'y Joyce Pratt** Exec. Officer Bob Neelans** P. O. BOx 5894 (805) 393-2101' W. P.O. BOx 401 (805) 822-4819' W. Bakersfield, 93308 395-2392** W. Tehachapi, 93561 822-4180'* Meetings: 2nd Tues./12 noon Meetings: 2nd Thurs./5 p.m. Hodels, Olive Drive Kelcy's Restaurant RAND IMPROt55MEh~ ORGANIZATION (TRIO) WASCO CHAMBER OF COMMERCE & AG. Pres. Mrs. Lorraine Alnsworth* Pres. Tim Holtermann* Sec'y Mrs. Maggie Clark** Off. Mana~3er Mrs. Jody Burr** P. O. Box 193 (619) 374-2209* 652 "E" Street (805) 758-5091' H. Jolk~r~lesburg, 93520 374-2216'* Nasco, 93280 750-2746'* Meetings: 2nd Thurs./7:00 p.m. Meetings: 1st Thurs./7:00 p.m. Cc~nmunity Building Chamber Office RIDGECREST CHAMBER OF COMMERCE WOFFORD HEIGHTS IMPROVEMENT GROUP Pres. Speed Handeland* Pres. Mrs. Marilyn Saunders* Exec. V.P. Ms. Pat Farlander** Sec'y Mrs. Barbara Boston** P. O. Box 771 (619) 446-2559* W. P.O. Box 341 (619) 376-6465* W. Ridgecrest, 93555 375-8331'* Wofford }IeJghts, 93285 376-6465** W. Meetings: 2nd Tues./12 noon Meetings: 3rd Tues./7:30 p.m. As announced E1 Segundo Rod & Gun Club BUDGET AND FINANCE COMMITTEE UPDATE * GANNON REQUEST FOR CHANGE IN DEED RESTRICTION Submit request to County to remove deed restriction. Have met with Attorneys to discuss changes to lease agreement. Changes to lease agreement have been reviewed by Gannon. He has indicated some displeasure with the proposed terms and has requested to meet with the Committee. ~ ~ ~u~~l~ ~ ~ o~ PARK ORDINANCE Need to refine figures and prepare response. ~/* WARNER CABLE  Ed Schultz is monitoring status of system upgrade. Committee requested that Ed & Art Saafield look into mitigation or removal of boxes. In addition the issue of underground trenches has been added. Cable companies will be meeting with the B.I.A., need further direction from committee. Possible update to committee on 29th. ASSESSMENT DISTRICT TASK FORCE - SURVEY (MSI) Request from Task Force for direction from city council re. possible survey for implementation of city-wide assessment districts for maintenance services. Report to Council 2/17/88. Committee has reviewed draft prepared by Pr. Mann and Dr. Guseman from CSUB. Will return with new draft questionnaire. ~* LEGAL SERVICES TO TAFT, SHAFTER, AND MARICOPA 03/30/88 This is to review if the City would like to continue to provide legal services to Taft, Shafter, and Maricopa. Alan Daniel has prepared a new contract. This will be discussed on June 29th. STREET LIGHTING REVIEW 04/13/88 This is the review of the possible purchase of street lights from PG&E. Consultant will come to review proposal with committee. DOWNTOWN IMPROVEMENT DIST. FOR FISCAL YEAR 88-89 05/11/88 Review of D.I.D budget. David Lyman staff responsible for this item. This will be reviewed when we review the budget. CONVENTION BUREAU SERVICE AGREEMENT RENEWAL 06/08/88 Will meet with them to review agreement and Chamber of .Commerce Tourism proposal after new Bureau Executive Director arrives on July 11. * To be put on agenda for June 29th Committee meeting. June 27, 1988 Page 1 KERN COUNCIL OF GOVERNMENTS · · · INVOICE JUN 2 3 g~8 June 21, 1988 ~ ~NGINEERING D£PARTMENT TO: The City of Bakersfield FROM: The Kern Council of Governments SUBJECT: FY 1987 CONTRIBUTION, PURSUANT'TO THE KERN COUNCIL OF GOVERNMENTS' JOINT POWERS AGREEMENT, AS AMENDED DESCRIPTION AMOUNT FY 1987 Contribution, Pursuant to Kern COG's JPA, as amended. $4,636.50 Kern Council of Governments 1401 19th Street, Kress Building, 2nd Floor, Bakersfield, California, 93301 · (805) 861-2191 BUDGET & FINANCE COb~ITTEE REPORT NO. 27-88 JUNE 8, 1988 TO: MAYOR PAYNE AND MEMBERS OF THE CITY COUNCIL SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET & APPLICATION FY 88/89 Community Development is entitled to receive $1,213,000 in Block Grant funds for fiscal year 88/89. In addition, $412,125 in prior years' program income is available for expenditures in the upcoming program year. Therefore, the total amount available for fiscal year 88/89 is $1,625,125. The Budget and Finance Committee reviewed the proposed budget with staff. The summary identified major expenditures for housing, neighborhood revitalization and capital improvements, as well as other personnel and operating costs. These expenditures represent ongoing and new commitments to projects in the Baker Street and Lakeview Avenue areas. Community Development received numerous requests for funding. The attached projects are being submitted for approval. Therefore, it is recommended that the proposed budget be approved and that staff be authorized to submit the CDBG Application to HUD for funding. Respectfully submitted, Councilmember Donald K. Ratty, Chair Councilmember James H. Childs Councilmember Kevin McDermott REPORT12.1 PROGRAM BUDGET DETAIL FOR FISCAL YEAR 1988-89 651 - Administration and Plannin9 Personnel $ 141,292 Capital Equipment 2,550 Operations 40,529. Total Subprogram 651 $ 184,371 652 - Housing Programs and Loans Personnel $ 139,994 Operating 50,546 Programs 40,000 Loans 324,268 Total Subprogram 652 $ 554,808 653 - Neighborhood Revitalization Personnel $ 124,946 Operal:ing 9,000 Baker Street Facade Program 5U,UUU Boys' and Girls' Club of Bakersfield 100,000 Fair Housing Program 50,000 Neighborhood Revitalization Loans 130,000 Total Subprogram 653 $ 463,946 765 - Capital Improvements Lowell Addition Curbs and Gutters - ,,K,, to "M" $ 40,000 Curb and Gutter - Oscar, Lacy Street, Hendricks Lane 73,000 Curb and Gutter - Quincy, Pacific, Oregon Street Area 100,000 Westminster Site Improvements 59,000 Enterprise Zone Infrastructure Improvements Phase i 150,000 Total Subprogram 765 $ 422,000 CDBG PROGRAM BUDGET TOTAL $1,625,125 MEMORANDUM June 2, 1988 TO: Ken Pulskamp, Assistant City Manager FROM: George Gonzales, Acting' Community Development Coordinator~ SUBJECT: CDBG 1988 Application Community Development held two public hearings on the proposed use of funds for the Fiscal Year 1988-89. Those proposals submitted for funding are as folloWs: Public Works Projects 1. Curbs and Gutters Between 9th and 19th Streets and "L"'and "N" Streets - $40,000. 2. Curbs and Gutters on Houchin Road, Lacey, Regent and South "H" Streets - $73,000. ~. 3. Curbs ~and Gutters on Quincy, Pacific, Oregon, Haley and Williams Streets - $150,000. 4. Replacement of Jefferson Park Restrooms - $50,000. 5. Oro Vista Housing Project Curb Cuts for the Housing Authority - $7,845. 6. Handicap Access Ramps in Various Locations Throughout the City - $48,000. 7. Homeless Day Center/Shelter - $75,000. 8. Westminster Ceramics Site Work - $75,000 9. Bakersfield Airpark Infrastructure - $150,000. Subtotal for requests for Public Works projects for Fiscal Year 1988-89 is $668,845. Ken Puslkamp Page 2 June 2, 1988 Community Development also received applications from private agen- cies for funding of various proposals. These include: 1. The Arthritis Association of Kern County for a Therapy Pool at 1800 Westwind Drive. This is a jointly funded City/County project. Total is estimated at $601,000. The City is being requested to contribute $100,000. 2. The Bakersfield Senior Center Inc. for the rehabilitation of the Single Family Dwelling located at 600 5th Street which is part of the Senior Center site.~ $36,000. 2~ Boys and Girls Club of Bakersfield for the development of a gym- nasium at 800 Monterey Street~ This is a joint City/County funded project. Tot'al cost of the project is $850,000 over the next three years. City contri-~ butions for 1988 would be $100,000. 3. C e Memorial AME Church for acquisition, rehabilitation, equip- ment and operation of a Substance Abuse Center - location unknown. Total estimated cost is $807,819. This project is a joint City/County requested proposal. The City is being asked to contribute $159,000 in the first year. 4. Beasley/Hicks Freedom Foundation for acquisition, demolition and construction of a 20 Unit Multi-Family Housing project. Total cost of this project is approximately $715,898. City's share is $239,668. 5.' Henrietta Weill Memorial Child Guidance Clinic to provide social service funds for the short term Crises Treatment program. This a City/County proposal. Total cost of this project is $83,055. City's contribution would be $37,436. 6.. Baker Street Facade Program - $50,000. Ken Pulskamp Page 3 June 2, 1988 The subtotal for the requests from private agencies for City CDBG funds for the Fiscal Year 1988 is $722,104. Total request for CDBG funding for FY88 $1,390,949. The total entitlement for the City of Bakersfield for FY 1988 is $1,213,000. In addition to the entitlement, the City received $412,125 of program income over the past year. The total funds available for funding projects for FY 1988 is $1,625,125. - As a result of staff analysis of the proposals submitted, the projects on Attachment "A" are being recommended for approval. GG/jlm Ml15 Attachment COMMUNITY DEVELOPMENT BUDGET SUMMARY PROGRAM YEAR 198B-B9 "1 Program Year Program Year I. Entitlement lgB7-BB lgBB-Bg 1987-B8 COB~ BUDGET EHTITLEMENT $1,21E1,000 It/tfl//I/// 1988-89 CDBG BUDGET EHTITLEMENT //////////// $1,213,000 Rmount OF Change In Entitlement: ~0 //////////// Percentage OF Change In EntiLiemenL: I1/tf//tl//f O. 00% Program Income: $91, lOS ~412, 12S ~ Total Funds Rvailable II. Program Budget Summanj Sub Programs 651 - Rdministration & Planning $184,371 652 - Housing Programs & Loans $SS4~808 653 - Neighborhood Revitalization $403,946d'~Or~ 25X 765 -'Capital Improvement Projects ',' $482,000 Budget Total $1,625~12S IOOZ Capital Equipment '/ ' '~ '' ii $2,550 uH6~n~era~ons i 652 - Housing Programs & Loans ;.~.ji.'. ...;[. COHMUNITY (]EVELOPMENT BUDGET SUMMARY PROGRAM YEAR 1988-89 653 - Ne i 9hborhood Re¥ ita 1 i zat i on Personnel Operating $124,946 $9,000 Baker Street Facade, Program $50,000 Bog's & Girls Club oF BakersField $100,000 Fair Housing Program $50,000 Neighborhood Revitalization Loans $70,000 Total Sub-Program E. S3 $403,946 765 - Capit. al Improvements C & G btwn 9th & 19th /sts and "L" ~ "N" Sts $40,000' C & G Houchen, Laceg, Regent, & So. "H" Sts $73,000. C & G Ouincg, PaciFic, Oregon, Haleg ~ Nilliams Sts $100,000, Homeless OayCente~/Shelter $6.0,0D0~ Nes~minister Ceramics Site Nork $59,000 BakersField Rir'park InFrastructure $150,000 Total Sub-Program ?65 $482,000 CDBG Program Budget. To~.al $1,625,125 MEMORANDUM June 2,. 1988 TO: Ken Pulskamp, Assistant City Manager FROM: George Gonzales, Acting' Community Development Coordinator ~ SUBJECT: Proposals Previously Submitted to the Budget Finance Commitffeell for CDBG Funding. 1. Bosley-Hicks Freedom Enterprises. In September, 1987, Randy Beasly and George Hicks (Freedom Enterprises) submitted a proposal for the development of 20 multi-family units in the 600 block of "T" Street. After preliminary analysis of the proposal, several inconsistencies were identified and additional information was requested from the applicant. Once this information was submitted to CommUnity Development, final analysis was completed. Attached is a letter submitted to the applicant concerning his proposal. The project was felt infeasible because of the high vacancy rate (17.8%) for the City of Bakersfield. In addition, the applicants proposal was relied on the availa- bility of Section 8 Certificates. According to the Housing Authority, there are a surplus of Section 8 eligible rental units throughout the City of Bakersfield. The likelihood of the availability of certificates for this project would be very questionable. In addition, because of the desirability of these Certificates, as new units did become.available, tenants had a tendency to relocate once their one year lease agreement has ended. 2. Dr. Jerry Fox - Comprehensive Medical Center Proposal. On July 5, 1987, james A. Marsh, representative for Dr. Fox, submitted a proposal for the development of a medical center in Census Tract 22. The Community Development staff completed a preliminary analysis of the project Ken Pulskamp Page 2 June 2, 1988 and additional information was requested. During that time, staff was informed that a second location was being considered and the details of that proposal would be forthcoming. On October 9, 1987, a new site was identified, but the necessary information was not submitted. Staff was informed that the major tenant of this project (Mercy Hospital) was in a transitional re- organizational phase and once this was completed, the developer felt that this project could.move forth. To date, staff has not been notified of any movement on this project. 3. C. T. Salas - Development of a Cabinet Shop/Storage Yard On March 16, 1988, C. T. Salas submitted a proposal for the develop- merit of a 3,500 square foot metal building to be used as a cabinet shop at 1120 Chico Street. After reviewing the project, additional information was requested from the applicant and was received by Community Development staff. The final information was submitted to Community Development staff May of 1988. Staff is completing the report and is tentatively scheduling the final report to be submitted to the Budget & Finance Committee toward the end of June. 4. Boys and Girls Club of Bakersfield - Development of a Gymnasium On April 13, 1988, the Boys and Girls Club (BGC) submitted a proposal for the development of a gymnasium at 800 Monterey Street. This proposal will be considered in the 1988 CDBG Application. GG/jlm Ml14 4409 La Mirada Drive Bakersfield, California 93309 Dear Mr. Beasley: Last Friday myself, George Gonzales and David Bates reviewed all the applica- tions for Community Development funds for 1988. Ail the requests were evalu- ated and ranked because there is not enough money available to fund all the worthwhile proposals which we received. Based on the following reasons your request will not be on the list that will be recommended for funding:. 1. Based on our findings there is a high vacancy rate for rentals in the Bakersfield area. The City wide rate for all completed projects was 17.8% as of June 15, 1987. · 2. The number of approved Section 8 apartments exceeds the number of availa- ble vouchers and certificates. The high vacancy rate has led many landlords to qualify their units for Section their vacant apartments, thereby ~ncreasing the number of units competing for the available Section 8 tenants. 3. 'Section 8 renters can take their certificates to any approved vacant apartment. Some of the rentals they leave are being boarded up because replacement tenants can not be found due to the over supply of apartments. I regret that we are unable to recommend approval of your project at this time. Perhaps in the future the rental housing market will change enough so that your project can be resubmitted. If you have any questions feel free to call me at 326-3764. ' Very. truly yours, anley C. Grady ~Community Development Coordinator SCG/$DB/ts L106 1501 TRUXTUN AVENUE · BAKERSFIELD, CALIFORNIA 93301 · (805) 326-3764 JERRY C. FOX, M.D. . A PROFESSIONAL CORPORATION 3807 13 UNION AVENUE BAKERSFIELD, CA 93305 October 9, 1987 James Childs, Vice Mayor Councilman Ward I City Council .Office 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Sir: As per our recent correspondence, I plan to submit a request for financial assistance, in the form of a loan, to develop- a comprehensive medical center. The plans to be completed in detail within the next thirty (30)d~ys. The planned site is in Census Tract ~22, an area targeted for urban renewal by 'the City of Bakersfield's Community Development Program. Specifically, the site is located on the south side of California Avenue between Robinson Street on the East and Owens Street on the West' This site location will be avai.lab.le and accessible .to more than 19,000 Medi-Cal/Medicare recipients residing within, a two mile _radius. Thirty four [34) jobs will be created, providing income to many health-care professionals living in the area. The total cost of the project is 'estimated at $860,000.00. Th"e Developer is requesting assistance from the City, in land aquis- tion, construction cost and'predeveiopment fee (s) associated with this project' ' ' We look forward' to meeting with you and' the council, to discuss this proposal and the importance the' consideration of this matter will affect the development of this medical center. Re. spectfully, .~ Jerry 'C~. Fo~~~ Obst~ology . cc: George Caravalho, City Manager George Gonzales, Program Coordinator JCF:mv ALSO OPERATING BRUNDAGE MEDICAL'CLINIC - BAKER MEDICAL CLINIC * CHESTER MEDICAL CLINIC * WASCO MEDICAL CLINIC the greaCem bakeesfie]d convention & visitors bureau June 1, 1988 ~ City of Bakersfield ~ -- 1501 Truxtun Avenue O Bakersfield, California ~ ~_ Honorable Mayor and City Council: .. On behalf of the Greater Bakersfield Convention and Vist~for's Bureau, I respectfully request consideration be given to the renewal of our annual contract. As per agreement the Bureau is to receive 9% of the Transient Occupancy Tax to help promote and secure conventions and visitors to the City of Bakersfield. This year's contract will be for an estimated $190,000 which is $600 over FY 1987-88. In addition, because of changes in personnel and operating procedures approximately $25,000 of the 1987-88 budget will not be utilized. As such we are requesting these funds be carried over for special projects which will include an increased sales and marketing program through advertising, and the upgrading of our video presentation system for use in making convention bids. This past year has been one of transition. Changes in the makeup of the Board of Directors and search for a new Executive Director have been our primary goals. The new Director should be on board by mid July at which time the Convention Bureau will usher in a new attitude and approach to promoting the City of Bakersfield. To assist you in making your decision I have enclosed a copy of our proposed budget for your information. I look forward to meeting with you in the near future to discuss our requests. Until that time, please feel free in contacting me if you should have any questions. Respectfully submitted, Rusty Dalton, President Board of Directors Greater Bakersfield Convention & Visitors Bureau /jr 1033 Truxtun Avenue Bakersfield, Ca. 93301 805/325-5051 LEGAL NOTICE - PLEASE PUBLISH MAY 31, JUNE 1, and JUNE 2, 1988 NOTICE OF BUDGET HEARING ON PROPOSED USE OF REVENUE SHARING FUNDS BY THE CITY OF BAKERSFIELD NOTICE IS HEREBY GIVEN that the City of Bakersfield will hold a public hearing on its proposed use of federal revenue sharing funds at 5:15 p.m., or as soon thereafter as the matter may be heard on Monday, June 13, 1988, in the Council Chambers of City Hall, 1501Truxtun Avenue, Bakersfield, CA 93301. Written or oral comments are invited. Written comments may be submitted at the time of the hearing or prior thereto by delivery to the City Clerk's Office, City Hall, 1501Truxtun Avenue, Bakersfield, CA 93301. Senior Citizens are encouraged to attend and comment. Handicapped person needing assistance should contact the City Manager's Office before the meeting by calling 326-3751. The public hearing shall include a hearing on the proposed use of federal revenue sharing funds for the following service areas of the City: Revenue Sharing Total Budget Budget Transfer to: Capital Outlay Fund $ 250,000 $ 33,378,900 Airpark Fund 250,000 4,611,885 $ 500,000 $ 37,990,785 A copy of the City of Bakersfield's proposed 1987-88 Budget and a state- ment of proposed uses of revenue sharing funds are available for inspection from 8:00 a.m. to 5:00 p.m., Monday through Friday, in the City Manager's Office, 1501Truxtun Avenue, Bakersfield, CA. FINANCE DIRECTOR CITY OF BAKERSFIELD HNG-NOTICE MEMORANDUM May 31, 1988 TO: JOHN W. STINSON, ASSISTANT TO THE CITY MANAGER FROM: MARY STRENN, ASSISTANT CITY MANAGE~ ~ SUBJECT: BUDGET AND FINANCE COMMITTEE I expect to approach Council at the July 6, 1988 meeting for an extension on City payment of retiree health insurance increases. The Budget and Finance Committee should be briefed with a progress report prior to that date. Let me know when the meeting will be held. The consultant should be present for the Council meeting, but staff will make the presentation to Committee. MS:jp cc: Dale Hawley Margaret Ursin BUDGET ~ FINANCE COI.~IITTEE UPDATE GANNON REQUEST FOR CHANGE IN DEED RESTRICTION Submit request to County to remove deed restriction. Have met with Attorneys to discuss changes to lease agreement. Changes to lease agreement are being reviewed by Gannon. Waiting for a written reply. He has indicated some displeasure with the proposed terms and has requested to meet with the Committee. I told him that we could get him on the agenda in Late June. PARK ORDINANCE Need to refine figures and prepare response. * WARNER CABLE Ed Schultz is monitoring status of system upgrade. Committee requested that Ed & Art Saafield look into mitigation or removal of boxes. In addition the issue of underground trenches has been added. We will be meeting with representatives from the B.I.A., Warner and Cox Cable on June 2. JOHN COROLLO ENGINEERS - RE. CONNECTION FEES FOR WASTEWATER TREATMENT PLANT NO.3 1988 EXPANSION. Public Works will be working on this (Ed Schultz). Will be brought back to committee by Ed with additional information. I will check w/ Ed Schulz to see if this has been completed. ASSESSMENT DISTRICT TASK FORCE - SURVEY (MSI) Request from Task Force for direction from city council re. possible survey for implementation of city-wide assessment districts for maintenance services. Report to Council 2/17/88. Committee has reviewed draft prepared by Dr. Mann and Dr. Guseman from CSUB. Will return with new draft questionnaire. * BUSINESS MARKET STUDY FOR SOUTHEAST BAKERSFIELD This involves the marketing study recommended by the Committee. There have been some problems with the consultant and final payment negotiations are being recommended by staff. This will be discussed on June 2. * LEGAL SERVICES TO TAFT, SHAFTER, AND MARICOPA 03/30/88 This is to review if the City would like to continue to provide legal services to Taft, Shafter, and Maricopa. This was on the Committee agenda for April 27th. Have requested staff to research potential liabilities. Alan Daniel is researching and preparing a new contract. This will be discussed on June 2, if time permits. June 1, 1988 Page 1 BUDGET AND FINANCE COMMITTEE - CONTINUED STREET LIGHTING REVIEW 04/13/88 This is the review of the possible purchase of street lights from PG&E. Consultant will come to review proposal with committee. S.P.C.A. REQUEST FOR ADDITIONAL FUNDS AND SUBMITTAL OF THEIR 1988-89 BUDGET 05/11/88 This includes a request for $20,000 to cover additional expenses for the opening of the new SPCA facility on Gibson. Also is a request to review their 88-89 budget request and increase the amount of their contract for next year. They would like to meet with the committee and make a presentation. This will be reviewed when we review the budget. * 1988-89 C.D.B.G. APPLICATION 05/11/88 This is the annual application for C.D.B.G. funds. This will address the folowing items which have been referred to the committee: 1. BOSELY AND HICKS - FRRRDOM ENTERPRIZES (CDBG REQUEST) 2. DR. FOX PROPOSAL (CDBG REQUEST) 3. C.D.B.G. LOAN PROPOSAL - CORNELIO AND ROBERT SALAS 03/16/88 4. CDBG PROPOSAL FROM BOYS CLUB OF BAKERSFIELD 04/13/88 DOWNTOWN IMPROVEMENT DISTRICT (DID) FOR FISCAL YEAR 1988-89 05/11/88 Review of D.I.D budget. David Lyman staff responsible for this item. This will be reviewed when we review the budget. * To be put on agenda for June 2nd Committee meeting. June 1, 1988 Page 2 ADMINISTRATIVE May 11, 1988 Agenda Section: New Business Agenda Item: TO: HONORABLE MAYOR AND CITY COUNCIL Approved FROM: JOHN W. STINSON Department Head ASSISTANT TO THE CITY MANAGER DATE: May 3, 1988 City Manager SUBJECT: Request from the City of Bakersfield Police Department to appropriate $24,000 from forfeited assets obtained pursuant to Comprehensive Control Act of 1984 to Police Department Budget. RECOMMENDATION: Motion to approve. Roll call vote. BACKGROUND: For additional information refer to April 6, 1988, memorandum from R. A. Patterson, Chief of Police, to City Manager Dale Hawley. NB.84:jp ~ ' PD 64-2759 MEMORANDUM April 6, 1988 TO DALE HAWLEY, INTERIM CITY MANAGER FROM R.A. PATTERSON, CHIEF OF POLICE SUBJECT REQUEST FOR USE OF FORFEITED FUNDS The Comprehensive Control Act of 1984 allows the city to receive forfeited assets seized during police operations. The assets shall be used'(1) exclusively for law enforcement purposes and (2) for increasing law enforcement resources. This request is for your approval to increase appropriations so that the resources may be used for this purpose. The police department currently needs (1) supplies and minor equipment for a Metro Team, a newly formed seven (7) officer street enforcement team ($1,000); (2) eleven (11) ballistic vests, Vice Section ($9,000); (3) a printer for the criminal justice information system terminal, Vice Section ($4,000); and (4) a paper shredder, Vice Section ($400). Both the printer and shredder are needed to maintain "confidentiality." Additional appropriations are requested to provide for expenditures (operating accounts) for use as approved by the Chief of Police. The appropriations are needed in the following accounts: 011-71900-314 (Vice - materials NOC) $ 1,000 011-74500-314 (Vice - other outside services) $ 5,000 011-76400-314 (Vice - equipment, minor) $ 5,000 011-77100-314 (Vice - equipment) $13,000 Sufficient funds are available in Trust Fund 811-26117 (seized properties) to fund the increased appropriations. The business manager will maintain a strict accounting of items and/or services required. R. A. PATTERSON, CHIEF OF POLICE RAP/nl e 4/6/88:1507 ADMINISTRATIVE REPORT Meeting Date: May 11, 1988 Agenda Section: Reports Agenda Item: TO: HONORABLE MAYOR AND CITY COUNCIL Approved FROM: JOHN W. STINSON Department Head ASSISTANT TO THE CITY MANAGER DATE: May 3, 1988 City Manager SUBJECT: Report No. 26-88 from the Budget and Finance Committee regarding Request to Accept Three Separation of Grade Projects into the City's Street System. 1.- An Agreement transferring Separation of Grade Projects. Recommendation: Motion to approve and authorize the Mayor to execute the Agreement. Group vote. RECOMMENDATION: BACKGROUND: RPT. 5:jp BUDGET AND FINANCE COMMITTEE REPORT NO. 26-88 May 11, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: REQUEST TO ACCEPT THREE SEPARATION OF GRADE PROJECTS INTO THE CITY'S STREET SYSTEM The City Council received a request from the Greater Bakersfield Separation of Grade District to accept three separation of grade projects constructed between 1959 and 1961, namely, the Truxtun Overcrossing of Union Avenue, the Beale Overcrossing of the Southern Pacific, and the Chester Underpass beneath the main line of the Atchison, Topeka & Santa Fe Railroad. The District further requested the termination of Agreement No. 60-60, entitled "Agreement Regarding Maintenance of Truxtun and Beale Overcrossings." These items were referred to the Budget and Finance Committee to review. We have met with representatives from the Separation of Grade District and with Public Works Department staff to discuss this request. It was pointed out that it is in the City's interest to accept these structures so the limited funds available to the Separation of Grade District can be used to develop additional grade separations rather than fund ongoing maintenance. It was noted that the City currently maintains several other separation of grade projects which were developed and constructed by the District, namely, Chester Avenue at the Southern Pacific, and Union Avenue at the Southern Pacific. BUDGET AND FINANCE COMMITTEE REPORT NO. 26-88 May 11, 1988 Therefore, the Committee recommends the Council terminate Agreement No. 60-60 and accept and authorize the Mayor to execute the agreement transferring the three separation of grade projects to the City. Respectfully submitted, Councilmember Donald K. Ratty, Chair Councilmember James Henry Childs Councilmember Kevin McDermott RPT.85 and 85A:jp AGREEMENT NO. 88- AGREEMENT TRANSFERRING SEPARATION OF GRADE PROJECTS THIS AGREEMENT is executed in duplicate on this day of May, 1988 by the CITY OF BAKERSFIELD, a chartered city, (the "City") and the GREATER BAKERSFIELD SEPARATION OF GRADE DISTRICT, a separation of grade district organized and existing pursuant to the provisions of Part 2 of Division 9 (beginning with section 8100) of the Streets and Highways Code (the "District"); WI TN E S S E TH: WHEREAS, the District constructed three separation of grade projects within the City on lahd owned in part by the City and acquired in part by the District, namely, the (1) Truxtun Overcrossing of Union Avenue, dedicated on September 2, 1959 (the "Truxtun ' " Overcrosslng ), (2) the Beale Avenue Overcrossing of the Southern Pacific Railroad's Main Line between Monterey and East 19th Streets, including the realignment of Truxtun Avenue north of the Main Line of the Atchison, Topeka and Santa Fe Railroad, dedicated on May 11, 1960 (the "Beale Overcrossing"} and (3) the Chester Underpass beneath the Main Line of the Atchison, Topeka and Santa Fe Railroad, dedicated on November 10, 1961 (the "Chester Underpass"); and ?~EREAS, pursuant to Agreement No. 60-60 dated August 22, 1960 entitled "Agreement Regarding Maintenance of Truxtun and Beale Avenue Overcrossings" ("Agreement No. 60-60"), the District agreed to maintain and keep in a good state of repair the Truxtun Overcrossing and the Beale Overcrossing; and %~EREAS, the District now desires, pursuant to section 8237 of the Streets and Highways Code, to convey to the City all of the District's right, title and interest in the Truxtun Overcrossing, the Beale Overcrossing, the Chester Underpass and the District's lands on which such separation of grade projects have been constructed in part, as more particularly described in Exhibit A hereto (the "District's lands"), and terminate Agreement No. 60-60; and WHEREAS, the City is willing to accept such conveyance, maintain such separation of grade projects and the District's lands hereafter, and terminate Agreement No. 60-60; Now, therefore, IT IS AGREED as follows: 1. Conveyance. The District shall execute and deliver concurrently herewith a duly acknowledged quitclaim deed in the form attached hereto as Exhibit B wherein the District conveys to the City all of the District's right, title and interest in the Truxtun Overcrossing, the Beale Overcrossing, the Chester Underpass and the District's lands. 2. Acceptance of Conveyance. ~The City shall accept the aforesaid conveyance from the District and shall maintain hereafter the Truxtun Overcrossing, the Beale Overcrossing, the Chester Underpass and the District's lands without any further liability or responsibility on part of the District therefor, as provided in section 8237 of the Streets and Highways Code. 3. Termination of Agreement No. 60-60. Agreement No. 60-60 is hereby terminated. 4. Transfer of Accounts and Proration of Power Bills. The City shall take all appropriate steps required to substitute itself in place of the District with respect to Pacific Gas & Electric Company's Account Nos. TTCP 1-19001-4 (Truxtun Overcrossing), TTCP 7-33501-7, TTCP 4-33501-4, RTC 07-44401-0 and RTC 07-34001-5 (Beale Overcrossing), and GTC 11-27401-1, GTC 11-31201-5 and TTCP-1-52501-0 (Chester Underpass). All power bills shall be prorated between the parties as of 12:00 a.m., May 1, 1988. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first hereinabove written. CITY OF BAKERSFIELD By. Thomas A. Payne Mayor APPROVED AS TO FORM: City Attorney APPROVED: By. City Engineer 2 COUNTERSIGNED: By Finance Director GREATER BAKERSFIELD SEPARATION OF GRADE DISTRICT By William Canessa President ATTEST: Joe Steele Secretary 3 EXH] B ] T IA" ALL OF THE FOLLOWING DESCRIBED LAND IN THE CITY OF BAKERSFIELD, FORMERLY KNOWN AS THE TOWN OF KERN, IN THE COUNTY OF KERN, STATE OF CALIFORNIA, AS PER MAP RECORDED JANUARY 12, 1889, IN BOOK I PAGE ]5 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: 1. ALL OF THOSE PORTIONS OF LOTS 12 AND 13 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 12; THENCE SOUTHERLY ALONG THE WEST LINE OF SAID LOTS 12 AND 13 TO THE SOUTHWEST CORNER OF SAID LOT 13; THENCE EASTERLY A DISTANCE OF 22.80 FEET AS MEASURED ALONG THE SOUTHERLY LINE OF SAID LOT 13 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 12, SAID POINT ALSO BEING 24.00 FEET EASTERLY OF THE SAID NORTHWEST CORNER OF LOT 12; THENCE WESTERLY A DISTANCE OF 24.DO FEET AS MEASURED ALONG THE NORTH LINE OF SAID LOT 12 TO THE POINT OF BEGINNING. 2. ALL THOSE PORTIONS OF LOTS 17 AND 18 AND THE NORTHERLY ONE-HALF OF LOT 19 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 17; THENCE 20.60 FEET AS MEASURED EASTERLY ALONG THE NORTH LINE OF SAID LOT 17 TO A POINT; THENCE SOUTHERLY TO A POINT THAT FALLS IN THE SOUTH LINE OF THE NORTH ONE-HALF OF LOT 19, SAID POINT. ALSO BEING 19.10 FEET FROM THE SOUTH- WEST CORNER OF THE SAID NORTH ONE-HALF OF LOT 19 AS MEASURED EASTERLY ALONG THE SOUTH LINE OF THE SAID NORTH ONE-HALF OFLOT 19; THENCE WESTERLY A DISTANCE OF 19.10 FEET TO THE SOUTHWEST CORNER OF THE SAID NORTH ONE-HALF OF LOT 19; THENCE NORTHERLY ALONG THE WEST LINES OF THE SAID NORTHONE-HALF OF LOT 19 AND LOTS 18 AND 17 TO THE NORTHWEST CORNER OF SAID LOT 17 TO THE POINT OF BEGIN~IING. 3. ALL THOSE PORTIONS OF LOTS 15 AND 16 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 16; THENCE NORTHERLY ALONG THE WESTERLY LINES OF LOT 16 AND THE SOUTH HALF OF LOT 15 TO THE NORTHWEST CORNER OF SAID SOUTH ONE-HALF OF ~OT"'15; THENCE EASTERLY A DISTANCE OF 21.90 FEET AS MEASURED ALONG THE NORTH LINE OF SAID SOUTH- HALF OF LOT 15 TO A POINT; THENCE SOUTHERLY TO A POINT THAT FALLS IN THE SOUTH LINE OF SAID LOT 16, SAID POINT ALSO BEING A DISTANCE OF 21.00 FEET FROM THE SOUTHWEST OCRNER OF SAID LOT 16 AS MEASURED EASTERLY ALONG THE SOUTH LINE OF SAID LOT 16; THENCE WESTERLY A DISTANCE OF 21.00 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 16 TO THE POINT OF BEGINNING. EXHIBIT 'A* 4. ALL OF THOSE PORTIONS OF LOTS 14 AND 15 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 14; THENCE SOUTHERLY ALONG THE WEST LINE OF LOT 14 AND THE WEST LINE OF LOT 15 TO THE SOUTHWEST CORNER OF THE NORTH ONE-HALF OF LOT 15; THENCE EASTERLY A DISTANCE OF 21.90 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID NORTH ONE-HALF OF LOT 15 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 14, SAID POINT ALSO BEING 22.80 FEET EASTERLY FROM THE NORTHWEST CORNER OF SAID LOT 14; THENCE WESTERLY A DISTANCE OF 22.80 FEET AS MEASURED ALONG THE SAID NORTH LINE OF LOT 14 TO THE POINT OF BEGINNING. 5. ALL OF THOSE PORTIONS OF LOTS 19, 20 AND 21 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTH WEST CORNER OF SAID LOT 21; THENCE NORTHERLY ALONG THE WESTERLY LINE OF LOTS 21, 20 AND 19 TO THE NORTHWEST CORNER OF THE SOUTH ONE-HALF OF LOT 19; THENCE EASTERLY A DISTANCE OF 19.]0 FEET AS MEASURED ALONG THE NORTH LINE OF THE SAID SOUTH ONE-HALF OF LOT 19 TO A POINT; THENCE SOUTHERLY TO A POINT THAT FALLS IN THE SOUTH LINE OF SAID LOT 21, SAID POINT ALSO BEING 17.60 FEET EASTERLY OF THE SOUTHWEST CORNER OF SAID LOT 21; THENCE WESTERLY A DISTANCE OF 17.60 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 21 TO.THE POINT OF -' BEGINNING.- 6. ALL THAT PORTION OF LOT 1 IN BLOCK 39 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 1; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 1 TO THE SOUTHEAST CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 1A DISTANCE OF 21.00 FEET TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF SAID LOT 1 AND DISTANCE 24.00 FEET WESTERLY FROM THE NORTHEAST CORNER OF SAID LOT 1; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID LOT 1, A DISTANCE OF 24.00 FEET TO THE POINT OF BEGINNING. 7. ALL THAT PORTION OF LOT 32 IN BLOCK 39 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 32; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 32 A DISTANCE OF 37.50 FEET TO A POINT; THENCE WESTERLY ALONG THE SOUTHERLY LINE OF THE NORTHERLY 37.50 FEET OF SAID LOT 32 A DISTANCE OF 19.85 FEET TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF SAID LOT 32, SAID POINT BEING 20.60 FEET WESTERLY FROM THE NORTHEAST CORNER OF SAID LOT 32; THENCE EASTERLY ALONG SAID NORTHERLY LINE OF LOT 32, A DISTANCE OF 20.60 FEET TO THE POINT OF BEGINNING. EXHiBiT ~A' 8. THAT PORTION OF THE SOUTH 37 1/2 FEET OF THE NORTH 75 FEET OF LOT 32 IN BLOCK 39 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID SOUTH 37 1/2 FEET OF THE NORTH 75 FEET OF SAID LOT 32; THENCE SOUTHERLY ALONG THE THE WEST LINE OF SAID LOT 32 TO THE SOUTHWEST CORNER OF THE SAID SOUTHERLY 37 1/2 FEET OF SAID NORTHERLY 75 FEET OF SAID LOT 32; THENCE WESTERLY A DISTANCE OF 19.10 FEET AS MEASURED ALONG THE SOUTH LINE OF THE SAID SOUTHERLY 37 1/2 FEET OF THE SAID NORTHERLY 75 FEET OF SAID LOT 32 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF SAID SOUTHERLY 37 1/2 FEET OF SAID NORTHERLY 75 FEET OF SAID LOT 32, SAID POINT ALSO BEING 1.9.85 FEET WESTERLY FROM THE EAST LINE OF SAID LOT 32 AS MEASURED ALONG THE NORTHERLY LINE OF SAID SOUTHERLY 37 1/2 FEET OF SAID NORTHERLY 75 FEET OF SAID LOT 32; THENCE EASTERLY A DISTANCE OF 19.85 FEET AS MEASURED ALONG THE NORTHERLY LINE OF SAID SOUTHERLY 37 1/2 FEET OF SAID NORTHERLY 75 FEET OF SAID LOT 22 TO THE POINT OF BEGINNING. 9. THAT PORTION OF THE SOUTHERLY 75 FEET OF LOT 32 IN BLOCK 39 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF THE SAID SOUTHERLY 75 FEET; THENCE SOUTHERLY ALONG THE EAST LINE OF SAID LOT 32 TO THE SOUTH- EAST CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 32 A DISTANCE OF 17.60 FEET TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF THE SAID SOUTHERLY 75 FEET OF LOT 32, SAID POINT ALSO BEING 19.10 FEET WESTERLY OF THE NORTHEAST CORNER OF THE SAID SOUTHERLY 75 FEET OF LOT 32 AS MEASURED ALONG THE NORTH LINE OF THE SAID SOUTHERLY 75 FEET; THENCE EASTERLY A DISTANCE OF 19.10 FEET AS MEASURED ALONG THE SAiD NORTH LINE OF THE SOUTHERLY 75 FEET OF LOT 32 TO THE POINT OF BEGINEIN¢. 10. LOT 32 IN BLOCK 58, EXCEPT THE WESTERLY 9 FEET THEREOF. 11. THE EASTERLY 16 FEET OF LOT 1 IN BLOCK 58. 12. THE EASTERLY 5 FEET OF LOT 17 AND THE WESTERLY 11 FEET OF LOT 18 IN BLOCK 59. 13. THE WESTERLY 16 FEET OF LOTS 15 AND 16 IN BLOCK 59. ]4. THE WESTERLY 16 FEET OF LOTS 12, 13 AND 14 IN BLOCK 59. EXHIBIT ]5. THE EASTERLY 16 FEET OF LOT ! IN BLOCK 94. 16. ALL OF THAT PORTION OF LOT 32 IN BLOCK 94 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTH EAST CORNER OF SAID LOT 32; THENCE WESTERLY A DISTANCE OF 19.78 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 32 TO A POINT; THENCE NORTHERLY TO POINT THAT FALLS IN THE NORTH LINE OF SAID 32, SAID POINT ALSO BEING 16.24 FEET WESTERLY OF THE NORTHEAST CORNER OF SAID LOT 32; THENCE EASTERLY A DISTANCE OF 16.24 FEET TO THE NORTHEAST CORNER OF SAID LOT 32; THENCE SOUTHERLY ALONG THE EAST LINE OF SAID LOT 32 TO THE POINT OF BEGINNING. 17. ALL THOSE PORTIONS OF LOTS 17, 18 AND 19 IN BLOCK 95 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 19; THENCE 18.36 FEET AS MEASURED EASTERLY ALONG THE SOUTH LINE OF SAID LOT 19 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT LOT 17, SAID POINT ALSO BEING 16.24 FEET EASTERLY OF THE NORTHWEST CORNER OF SAID LOT 17; THENCE WESTERLY TO THE NORTHWEST CORNER OF SAID LOT 17; THENCE SOUTHERLY ALONG THE WEST LINE OF LOTS 17, 18 AND LOT 19 TO THE POINT OF BEGINNING. 18. THE WESTERLY 16 FEET OF LOT 16 AND THE WESTERLY 16 FEET OF THE SOUTH 16 FEET OF LOT 15 IN BLOCK 95. 19. THE WESTERLY 16 FEET OF LOTS 12, 13 AND 14 AND THE WESTERLY 16 FEET OF THE NORTHERLY 14 FEET OF LOT 15'IN BLOCK 95.-- 20. ALL THOSE PORTIONS OF LOTS 19 AND 20 IN BLOCK 95 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTH WEST CORNER OF SAID LOT 21; THENCE EASTERLY A DISTANCE OF 19.78 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 21 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 20 SAID POINT ALSO BEING 18.36 FEET EASTERLY OF THE NORTHWEST CORNER OF SAID LOT 20; THENCE WESTERLY A DISTANCE OF 18.36 FEET AS MEASURED ALONG THE NORTH LINE OF SAID LOT 20 TO THE NORTHWEST CORNER THEREOF; THENCE SOUTHERLY ALONG THE WEST LINES OF SAID LOTS 20 AND 21 TO THE POINT OF BEGINNING. 21. THE WESTERLY 24 FEET OF LOTS 17 THROUGH 21 IN BLOCK 106. 22. ALL THOSE PORTIONS OF LOTS 12 THROUGH 16 IN BLOCK 106 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 16; THENCE EASTERLY A DISTANCE OF 24 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 16 TO A POINT: THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 15, SAID POINT ALSD BEING 24.00 FEET EASTERLY OF THE NORTH- WEST CORNER OF SAID LOT 15; THENCE CONTINUING NORTHERLY TO A POINT THAT FALLS 1N THE NORTH LINE OF SAID LOT 12, SAID POINT ALSO BEING 21.68 FEET EASTERLY OF THE NDRTHWEST CORNER OF SAID LOT 12; THENCE WESTERLY A DISTANCE OF 21.68 FEET TO THE SAID NORTHWEST CORNER OF LOT 12; THENCE SOUTHERLY ALONG THE WESTERLY LINES OF SAID LOTS 12 THROUGH 16 TO THE POINT OF BEGINNING. EXH]B]T 23. ALL THOSE PORTIONS OF LOTS I AND 2 IN BLOCK 107 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUGHEASTERLY CORNER OF SAID LOT 1; THENCE WESTERLY ALONG THE SOUTH LINES OF SAID LOTS 1 AND 2 TO A POINT THAT FALLS 9.57 FEET WESTERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 2; THENCE NORTH- EASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 2, SAID POINT BEING 37.00 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 2; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF SAID LOT 1, SAID POINT BEING 21.68 FEET WESTERLY OF THE SOUTH- EASTERLY CORNER OF SAID LOT 1; THENCE EASTERLY A DISTANCE OF 21.68 FEET TO THE NORTHEASTERLY CORNER OF SAID LOT 1; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 1 TO THE POINT OF BEGINNING. 24. ALL THOSE PORTIONS OF LOTS 25 AND 26 IN BLOCK 107 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 26; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF LOTS 26 AND 25 TO A POINT THAT FALLS 8.04 FEET WESTERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 25; THENCE NORTH- EASTERLY TO A POINT THAT FALLS IN THE EAST LINE OF SAID LOT 26, SAID POINT BEING 12.38 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 26; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 26 A DISTANCE OF 12.38 FEET TO THE POINT OF BEGINNING. 25. ALL THOSE PORTIONS OF LOTS 27 AND 28 IN BLOCK 107 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID LOT 27; THENCE NORTHERLY A DISTANCE OF 12.38 FEET AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 27; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE EAST LINE OF SAID LOT 28, SAID POINT BEING 50.22 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 28 AS MEASURED ALONG THE EASTERLY LINE OF SAID LOT 28; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 28 TO THE SOUTHEASTERLY CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF LOTS 28 AND 27 TO THE POINT OF BEGINNING. 26. LOTS 31 AND 32 IN BLOCK 107, EXCEPT THAT PORTION OF LOT 31 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 31; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID LOT 31 A DISTANCE OF 6.45 FEET TO A POINT; THENCE SOUTHWESTERLY TO A POINT THAT FALLS IN THE WESTERLY LINE OF SAID LOT 31, SAID POINT ALSO BEING 13.45 FEET SOUTHERLY FROM THE NORTHWEST CORNER OF SAID LOT 31 AS MEASURED ALONG THE WESTERLY LINE OF S~.ID LOT 31; THENCE NORTHERLY ALONG THE SAID WESTERLY LINE OF LOT 31 TO THE POINT OF BEGINNING. 27. ALL THOSE PORTIONS OF LOTS 29 AND. 30 IN BLOCK 107 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID LOT 29; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LOT 29 A D]STANCE OF 50.22 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 30, SAID POINT ALSO BEING 13.45 FEET SOUTHERLY FROM THE EXHIBIT "A" 27 CONTINUED NORTHEASTERLY CORNER OF SAID LOT 30 AS MEASURED ALONG THE EASTERLY LINE OF SAID LOT 30; THENCE SOUTHERLY ALONG THE SAID EASTERLY LINE OF SAID LOT 30 TO THE SOUTHEASTERLY CORNER OF SAID LOT 30; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF LOTS 30 AND 29 TO THE POINT OF BEGINNING. 29. ALL THOSE PORTIONS OF LOTS 1, 2 AND 3 IN BLOCK 125 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 1; THENCE WESTERLY' ALONG THE SOUTHERLY LINES OF LOTS 1, 2 AND 3 TO A POINT THAT FALLS 3.58 FEET WESTERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 3; THENCE' NORTHEASTERLY TO A POINT THAT FALLS .IN THE EAST LINE OF SAID LOT 1, SAID POINT ALSO BEING 24.95 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 1; THENCE SOUTHERLY A DISTANCE OF 24.95 FEET TO THE POINT OF BEGINNING. 30. ALL THOSE PORTIONS OF LOTS 20 THROUGH 24 IN BLOCK 125 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID LOT 20; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 20 A DISTANCE OF 53.20 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 22, SAID POINT ALSO BEING 79.41 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 22; THENCE EASTERLY TO A POINT IN THE EASTERLY LINE OF SAID LOT 24, SAID POINT ALSO BEING 101.82 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 24; THENCE SOUTHERLY ALONG THE SAID EASTERLY LINE OF LOT 24 TO THE SOUTHEASTERLY CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 24, 23, 22, 21 AND 20 TO THE POINT OF BEGINNING. 31. ALL THOSE PORTIONS OF LOTS 17, 18 AND 19 IN BLOCK 125 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF LOT 17; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LOT 17, A DISTANCE OF 55.71 FEET TO A POINT; THENCE SOUTHEASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID 17, SAID POINT ALSO BEING 39.96 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 17; THENCE EASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 18, SAID POINT ALSO BEING 44.47 FEET NORTHERLY FROM THE SOUTHEASTERLY CORNER OF SAID LOT 18; THENCE EASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 19, SAID POINT ALSO BEING 53.20 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 19; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 19 A DISTANCE OF 53.20 FEET TO THE SOUTHEASTERLY CORNER THEREOF; THENCE WESTERLY TO THE POINT OF BEGINNING. EXHiBiT "AI 32. ALL THOSE PORTIONS OF LOTS 25 THROUGH 32 IN BLOCK i25 WHICH LIE NORTHERLY OF A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 26.62 FEET MEASURED AT RIGHT ANGLES FROM THE CNETER LINE OF THE ATCHINSON, TOPEKA AND SANTA FE RAILWAY COMPANY WESTWARD MAIN TRACT. EXCEPT THOSE PORTIONS OF LOTS 25, 26 AND 27 LYING NORTHERLY OF THE NORTH LINE OF TRUXTUN AVENUE RELOCATED. 33. ALL THOSE PORTIONS OF LOTS ! THROUGH 19 AND 28 THROUGH 32 iN BLOCK ~.26 AND THE ALLEY LYING WiTHiN SAID BLOCK 126 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 32; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 32, 3! AND 30, SAiD SOUTHERLY LINES ALSO BEING THE NORTHERLY LINE OF TRUXTUN AVENUE, A DISTANCE OF 55.73 FEET; THENCE NORTHERLY ALONG A LiNE THAT FOPJ~S A NORTHWESTERLY ANGLE OF 59o 52' 47" WITH SAID NORTHERLY LINE OF TRUXTUN AVENUE TO A POINT IN A LINE THAT i'S PARALLEL WiTH AND DISTANT SOUTHERLY 25.00 FEET MEASURED AT RIGHT ANGLES FROM THE CENTER LiNE OF THE ATCHINSON, TOPEKA AND SANTA FE RAILWAY COMPANY'S EASTWARD MAIN TRACT: THENCE EASTERLY ALONG SAID PARALLEL LINE TO A POINT IN THE EASTERLY LiNE OF SAiD BLOCK 126, SAID EASTERLY IINE ALSO BEING THE WESTERLY LiNE OF BEALE STREET: THENCE SOUTHERLY ALONG SAiD EASTERLY LiNE OF BLOCK TO THE POINT OF BEGINNING. TOGETHER WiTH THOSE PORTIONS OF LOTS THROUGH 19 AND THE ALLEY LYING WITHIN BLOCK 126 NH]CH LiES NORTHERLY OF A LINE THAT IS PARALLEL WiTH AND DISTANT NORTHERLY 26.62 FEET MEASURED AT RIGHT-ANGLES FROM THE CENTER LINE OF SAID RAILWAY COMPANY'S WESTWARD MAIN TRACT, LAST SAID PARALLEL LINE BEING PARALLEL WITH AND DISTANT NORTHERLY 65.62 FEET MEASURED AT RIGHT ANGLES FROM FIRST SAID PARALLEL LINE. 34. ALL THAT PORTION OF LOT 16 IN BLOCK 127 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 16; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LOT 16, SAID WESTERLY LINE ALSO BEING THE EASTERLY LINE OF BEALE STREET, A DISTANCE OF 15.97 FEET; THENCE EASTERLY PARALLEL WITH THE NORTHERLY LINE OF SAID LOT 16 TO A POINT IN THE SOUTHERLY LINE OF SAID LOT 16, SAID SOUTHERLY LINE ALSO BEING THE NORTHERLY LINE OF TRUXTUN AVENUE, THENCE WESTERLY ALONG SAID SOUTHERLY LINE TO THE POINT OF BEGINNING. 35. ALL THOSE PORTIONS OF LOTS 14 THROUGH 16 IN BLOCK 140 WHICH LIE NORTHERLY OF A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 26.62 FEET MEASURED AT RITHT ANGLES FROM THE CENTER LINE OF THE ATCHINSON, TOPEKA AND SANTA FE RAILWAY COMPANY'S WESTWARD MAIN TRACT. lA' 36. ALL THOSE PORTIONS OF LOTS 1 THROUGH 6 IN BLOCK 141 WHICH LIE NORTHERLY OF A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 26.62 FEET MEASURED AT RIGHT ANGLES FROM THE CENTER LINE OF THE ATCHINSON, TOPEKA AND SANTA FE RAILWAY COMPANY'S WESTWARD MAIN TRACT. 37. ALL THOSE PORTIONS OF LOTS 7 AND 8 IN BLOCK 14] DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 7; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 7 AND 8 TO THE SOUTHWESTERLY CORNER OF SAID LOT 8; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 8 A DISTANCE OF 111.91 FEET TO A POINT; THENCE NORTHEASTERLY TO A PO!NT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 7, SAID POINT BEING 18.41 FEET SOUTHERLY FROM THE NORTHEASTERLY CORNER OF SAID LOT ?; THENCE SOUTHERLY ALONG THE SAID EASTERLY LINE OF SAID LOT & TO THE POINT OF BEGINNING. 38. ALL THOSE PORTIONS OF LOTS 9 THROUGH 12 IN BLOCK 141 DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE SOUTHERLY LINE OF THE NORTHERLY 80 FEET OF SAID LOT 12, SAID POINT ALSO BEING 7.28 FEET WESTERLY OF THE EASTERLY LINE OF SAID LOT 12 AS MEASURED ALONG THE SOUTHERLY ~INE OF THE NORTHERLY 80 FEET OF SAID LOT 12; THENCE SOUTH 89o 59 45 EAST AS MEASURED ALONG THE SOUTHERLY LINE OF THE NORTHERLY 80 FEET OF LOTS 12 AND 11 TO A POINT, SAID POINT BEING 15.00 FEET,EASTERLY OF THE WESTERLY LINE OF SAID LOT 11; THENCE SOUTH 44o 59 55 EAST TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID 11, SAID POINT ALSO BEING 78.00 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 11; THENCE SOUTHERLY AS MEASURED ALONG SAID EASTERLY LINE OF LOT 11 TO THE SOUTHEASTERLY CORNER THEREOF; THENCE NORTHEASTERLY AS MEASURED ALONG THE SOUTHERLY LINES OF SAID LOTS 10 AND 9 TO THE SOUTHEASTERLY CORNER OF SAID LOT 9; THENCE NORTHERLY AS MEASURED ALONG THE EASTERLY LINE OF SAID LOT 9 A DISTANCE OF 111.91 FEET TO A POINT; THENCE ~OUTHWESTERLY TO THE POINT OF BEGINNING. 39. ALL THOSE PORTIONS OF LOTS 11 THROUGH 16 IN BLOCK 141 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 11; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 11 THROUGH 16 TO THE SOUTH- WESTERLY CORNER OF SAID LOT 16, SAID SOUTHWESTERLY CORNER BEING THE NORTHERLY LINE OF TRUXTUN AVENUE AND THE INTERSECTION OF THE WESTERLY EXHiBiT 'A" 39 CONTINUED LINE OF SAID BLOCK 141; THENCE NORTHERLY ALONG THE SAID WESTERLY LINE' OF BLOCK 141A DISTANCE OF 76.62 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE SOUTHERLY LINE OF THE NORTHERLY 80 FEET OF SAID LOT 12, SAID POINT BEING 7.28 FEET WESTERLY OF THE EASTERLY LINE OF SAID LOT 12; THENCE SOUTH 89o 59' 45" EAST AS MEASURED ALONG THE SOUTHERLY LINE OF THE NORTHERLY 80 FEET OF SAID LOTS 12 AND ll A DISTANCE OF 22.28 FEET TO A POINT; THENCE SOUTH 44o 59' 55" EAST TO A POINT THAT FALLS I N THE EAST LINE OF SAID LOT 11; THENCE SOUTHERLY AS MEASURED ALONG THE SAID EAST LINE OF LOT 11 ~ DISTANCE OF 78.08 FEET TO THE POINT OF BEGINNING. 40. THE SOUTH 50 FEET OF LOTS 1,'2 AND 3 IN BLOCK 142 LYING,-SOUTHEASTERLy OF THE/__SOUTHEASTERLY LINE OF THE LAND DESCRIBED IN THE DEED TO THE CITY OF BAKERSFIELD, RECORDED MAY 9 1962 IN BOOK 3490 PAGE 20 OFFICIAL RECORDS. ' 41. ALL THOSE PORTIONS OF LOTS 27 AND 28 IN BLOCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 28; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 27 AND 28 TO THE SOUTHWESTERLY CORNER OF SAID LOT 27; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT, A DISTANCE OF 36.04 FEET TO A POINT; THENCE NORTH- EASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 28, SAID POINT BEING 44.86 FEET NORTHERLY FROM THE SOUTHEASTERLY CORNER OF SAID LOT 28; THENCE SOUTHERLY ALONG THE SAID EASTERLY LINE OF LOT 28 TO THE POINT OF BEGINNING. 42. ALL THAT PORTION OF LOT 25 IN BLOCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF LOT 25; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LOT 25 A DISTANCE OF 27.23 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 25, SAID POINT BEING 31.63 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 25; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 25 TO THE SOUTHEASTERLY CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 25 TO THE POINT OF BEGINNING. 43. ALL THAT PORTION OF LOT 26IN BLOCK ]42 DESCRIBEDAS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 26; THENCE WESTERLY ALONG THE SOUGHERLY LINE OF SAID LOT 26 TO THE SOUTHWESTERLY CORNER THEREOF; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 26 A DISTANCE OF 31.63 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS iN THE EASTERLY LINE OF SAID LOT 26, SAID POINT BEING 36.04 FEET NORTHERLY FROM THE SOUTHEASTERLY CORNER THEREOF; THENCE SOUTHERLY TO THE POINT OF BEGINNING. E X H ! B ! T 'A" 44. ALL THOSE PORTIONS OF LOTS 29 THROUGH 32 IN BLOCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUGHWESTERLY CORNER OF SAID LOT 29; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 29 A DISTANCE OF 44.86 FEET TO A POINT; THENCE NORTHEASTERLY ALONG A STRAIGHT LINE TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 32, SAID POINT BEING 62.51 FEET NORTHERLY FROM THE SOUTHEASTERLY CORNER OF SAID LOT 32; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 32 A DISTANCE 0F.62.51 FEET TO THE SOUTHEASTERLY CORNER OF SAID LOT 32; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 32 A DISTANCE OF 62.51 FEET TO THE.SOUTH- EASTERLY CORNER OF SAID LOT 32; THENCE SOUTHWESTERLY ALONG THE SOUTHERLY LINE OF SAID LOTS 32, 31, 30 AND 29 TO THE POINT OF BEGINNING. 45. ALL THOSE PORTIDNS OF LOTS 18 THROUGH 24 IN BLDCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THEINTERSECTION OF THE NORTHERLY LINE OF TRUXTUN AVENUE AS SAID TRUXTUN AVENUE EXISTED AFTER THE ABANDOMENT AND CLOSING TO PUBLIC USE OF EUREKA ( FORMERLY KNOWN AS "E" ) STREET, BY FINAL RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD, ADOPTED APRIL 26, 1926, PURSUANT TO PROCEEDINGS THERETO HAD UNDER RESOLUTION OF INTENTION NO. 523, AND THE SOUTHERLY PROLONGATION OF THE EASTERLY LINE OF SAID LOT 18; THENCE SOUTHWESTERLY AS MEASURED ALONG THE NORTHERLY LINE OF TRUXTUN AVENUE AS SAID NORTHERLY LINE EXISTED AFTER THE SAID ABANDOMENT AND CLOSING OF EUREKA ( FORMERLY "E" ) STREET A DISTANCE OF 5.00 FEET TO A POINT; THENCE NORTHEASTERLY ALONG A STRAIGHT LINE TO 'A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 24, SAID POINT ALSO BEING 27.23 FEET NORTHERLY OF THE SDUTHEASTERLY CORNER OF SAID LOT 24; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 24 A DISTANCE OF 27.23 FEET TO A POINT, SAID POINT ALSO FALLING IN THE NORTHERLY LINE OF TRUXTUN AVENUE; THENCE SOUTHWESTERLY ALONG THE NORTHERLY LINE OF TRUXTUN AVENUE AS SAID NDRTHERLY LINE EXISTED AFTER THE SAID ABANDOMENT AND CLOSING OF EUREKA ( FORMERLY "E" ) STREET TD THE POINT OF BEGINNING. 46. ALL OF LOT 8 IN BLOCK 354 EXCEPT THE WEST 38 FEET THEREOF. 47. ALL OF LOT I IN BLOCK 354 EXCEPT THE WEST 38 FEET THEREOF. 48. ALL OF LOTS 4 AND 5 IN BLOCK 353 EXCEPT THE EAST 38 FEET THEREOF. 49. THE EASTERLY 28 FEET OF LOT I IN BLOCK 365 TOGETHER WITH THE 6.5 FEET OF VACATED ALLEY ADJOINING SAID LAND ON THE SOUTH LYING BETWEEN THE SOUTHERLY PROLONGATION OF THE EAST LINE OF SAID LOT I AND THE SOUTHERLY PROLONGATION OF THE WEST LINE OF SAID EASTERLY 28 FEET. EXHIBIT 50. THE EASTERLY 28 FEET OF LOT 8 IN BLOCK 365 TOGETNER WITH THE 6.50 FEET OF THE VACATED ALLEY ADJOINING SAID LAND ON THE NORTH LYING BETWEEN THE NORTHERLY PROLONGATION OF THE EAST LINE OF SAID LOT 8 AND THE NORTHERLY PROLONGATION OF THE WEST LINE OF SAiD 28 FEET. 51. ALL THOSE PORTIONS OF LOTS 20, 21 AND 22 IN BLOCK 366 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 20; THENCE EASTERLY ALONG THE NORTH LINE OF SAID LOT 20 A DISTANCE OF 20.22 FEET TO A POINT; THENCE SOUTHWESTERLY TO A POINT THAT FALLS IN THE WEST LINE OF SAID LOT 22, SAID POINT ALSO BEING 15.00 FEET SOUTH OF THE NORTH- WEST CORNER OF SAID LOT 22; THENCE NORTHERLY ALONG THE WEST PROPERTY LINES TO THE POINT OF BEGINNING. 52-1. THE WESTERLY 28 FEET OF LOTS 13 THROUGH 18 IN BLOCK 366. 52-2. ALL THAT PORTION OF LOT 19 IN BLOCK 366 DESCRIBED AS FOLLOWS: BEGINNING AT THE NDRTHWEST CORNER OF SAID LOT L9; THENCE EASTERLY A DISTANCE OF 28.00 FEET AS MEASURED ALONG THE NORTH LINE OF SAID LOT 19 TO A POINI; THENCE SOUTHWESTERLY TO A POINT THAT FALLS IN THE SOUTH LINE OF SAID LOT 19, SAID POINT BEING 20.22 FEET EAST OF THE SOUTHWEST CORNER THEREOF; THENCE WESTERLY TO THE SOUTHWEST CORNER OF SAID LOT 19; THENCE NORTHERLY TO THE POINT OF BEGINNING. FOLLOWING RECORDATION MAIL TO: · City Engineer City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 QUITCLAIM DEED FOR VALUABLE CONSIDERATION, receipt oi which is hereby . acknowledged, the GREATER BAKERSFIELD SEPARATION OF GRADE DISTRICT, a separation of grade district organized and existing pursuant to the provisions of Part 2 of Division 9 (beginning with section 8100) of the Streets and Highways Code, (hereafter the "District") hereby REMISES, RELEASES AND QUITCLAIMS to the CITY OF BAKERSFIELD, a chartered city, pursuant to the provisions of section 8237 of the Streets and.Highways Code, all of the District's right, title and interest in and to (a) the real property in the City of Bakersfield, County of Kern,. State of California more particularly described in Exhibit A hereto, which by this reference is incorpo- rated herein, and (b) those separation of grade projects, located in, on or about such real property, commonly referred to as the Truxtun Overcrossing of Union Avenue, dedicated on September 2, 1959, the Beale avenue Overcrossing of Southern Pacific Railroad's Main Line between Monterey and East 19th Streets, including the realignment of Truxtun Avenue north of the Main Line of the Atchison, Topeka and Santa Fe Railroad, dedicated on May 11, 1960 and the Chester Underpass beneath the Main Line of the Atchison, Topeka and Santa Fe Railroad, dedicated on November 10, 1961. Upon acceptance of this Quitclaim Deed, the District shall have no further liability or responsibility for-such real property and projects. Dated: , 1988 GREATER BAKERSFIELD SEPARATION 0~' GRADE DISTRICT By ~4illiam Canessa, President By Joe Steele, Secretary EXHIBITB ACKNOWLEDGEMENTS STATE OF CALIFORNIA ) ) ss. COUNTY OF KERN ) On , 1988, before me, the undersigned, a Notary Public in and for said State, personally appeared WILLIAM CANESSA and JOE STEELE, personally known to me or proven to me to be on the basis of satisfactory evidence to be the President and Secretary, respectively, of the Greater Bakersfield Separation of Grade District, and acknowledged to me that such district executed the within instrument pursuant to a resolution of its Commission. WITNESS my hand and official seal. Notary Public in and for said State CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the interests in real property and the separation of grade projects referred to in the above quitclaim deed from the Greater Bakersfield Separation of Grade District to the City of Bakersfield and the responsibility to maintain such projects are hereby accepted by Resolution of the City Council of the City of Bakersfield adopted on the day of , 1988 and the City of Bakersfield con- sents to recordation thereof by its duly authorized officer. Dated this day of , 1988. Clerk City of Bakersfield 2 Meeting Date: MaY i1, 1988 Agenda Section: New Business Agenda ltem: i,~ TO: Honorable Mayor and Approved Members of the City Council FROM: Economic/Redevelopment Department Head !"" DATE: April 29 1988 City Manaaer SUBJECT: Downtown Improvement District(DID) budget for fiscal year 1988-89. RECOMMENDATION: Motion to refer to Budget and Finance Committee. .: Group Vote. BACKGROUND: The DID was formed by Council Ordinance in 1968 to impose business license fee upon businesses in the downtown area, with pro- ceeds to be used for promoting events of interest to the community, as well as promoting an increase in business generally within the district. In 1979, the City contracted with the Downtown Business Association (DBA) to administer the funds collected for promoting down town ~' Such a district allows the City to collect an assessment from each business operating within the district boundaries The fee is imposed ~.!~" · ~. as an additional fee for a business license and is based upon the type of business. It is collected annually when the business license tax is colleCted by the City. The fee is not assessed on individual par- ~.- cels of property but upon. indi~i.duaL.~usimemseg ....... The funds, in turn, are provided to the DBA. Because business [7' licenses become due at different times during the year, and businesses ~['~ locate into and away from the area, funds are collected throughout the year. The DBA submits a budget each year to Council for its approval ,..~ and requests ~nds be transferred to them as their needs require. ~.~I~' DID funds are not used for store rehabs or other capital projects. The DID boundaries are different from those of the redevelopment area. A map of these t'wo districts is attached. Funds collected by the City, invested and earning interest for the City, are in a trust account and not included in the City's budget. Any funds due to the DID at-year-end are considered payables bv the City. ~'~, ADMINISTRATIVE EPORT While allowable under the present ordinance, the City does not charge the district for collection, accounting, or administration costs. BUDGET FOR FY1988-89: According to the City Finance Director, DID revenues· for this current fiscal year will be $54,000. Projections for FY1988-89 foresee a decrease to $52,000, due primarily'to the 'departure of Gottschalks. The DBA, however, has chosen to be a bit conservative in anticipating revenues, hence their use of the $49,000 figure for income from DID funds in their FY88-89 budget. A total of 9.8% ($4,900) of district funds which are collected for "institutional promotion" bY the Council ordinance are budgeted for advertising, promotional printing, or seasonal promotion. The remain- der of these funds are b~dgeted for Parking Structure Payment and Interest (12.9%), Sidewalk Clean-up (2%), Liability Insurance (3.1%), Accounting (2.4%), Printing and Bulletins (4.1%) and"Management Contract"'(salaries, Benefits, Re~t, Office Expenses) (65.'7%)~' Revenues collected since the district was formed in 1969, including those anticipated through June 30, 1988, total $903,000. The budget submitted by the DBA is identical to the one approved by Council for FY 1987-88. It was reviewed by the Central District Development Agency at their meeting of April 18, 1988. A detailed budget and graphic analysis are also attached. cr C: REPORT91 FISCAL YEAR ~988-1989 DC~LfO~]~ LWPROV~ DiS~-q~iCT PROPOSED ~ -- J~Y i988 ~ J~ 1989 ~988-89 EST~TED ~~: Dis~ict ~ses~ $ 49,000 In.rest on ~ 500 200 Contr~utions-- 2OO Pr~tion Con~utions 2O0 ~sce 11 ~eous ~ ' ~5G,100 ~ ~JE ESTL~9.T~ ~o~S~: *D~ b~,ag~t Con:act $ 32, 1,550 Li~iliuy Ins~ce 1,200 ~co~t~g F~s 1,200 Dis~ict Bullet.s 500 Pos~ge 350 O~er PrLnt~g p~ot.ions a ~ur~e~n~ 4,000 A~er~s~g (~dia ~e} 500 Pr~otional Pr~t~g 1,000 Sidewalk Cle~-up 400 Seasonal. p~tions 6,50p P~n~g Garage ~%'Pa~% & Interest ~50,100 *DBA ~nag~ment Contract $ 21,400 Salaries & Wages ....... Payroll Taxes 500 Wor~mer,' s C~?ensation insurance 1,200 MeScal lrmu/a~ce '8,640 ~ Rent & P~g 2,000 Office Supplies 1,400 Telephone ~n~ 900 Office ~i~nt R~n~l 500 n_s~.l~-I Da~ ~Photos, Etc $ 38,740 *The ~ve e~~ ~la~e s~cifically -~ DiD con~acu a~w~nis~ation .~nses (85%/15% spli~ Do~.tc~m Improvement District SUmT~ry of Accounns P~%~JE ACCOL~S District Assessments - DID assessments collected by the City Interest on Pands - Interest on DID funds Contributions - Misc. contriDutions in support of proDecns Promotion Contributions - ~isc. contributions in support of pr~notional ho 1 idays ~isc. - Other Misc. income DBA Management Contract (85% share of these eXpenses) Salaries & Wages - 1 full time manager and 1 part t~me secre~' Payroll taxes - employer's contribution Workmen's ConDensation Insurance - paid s~aff insurance Medical Insurance - ~nnager and secre%a-~' covered Office rent & parking - Includes 600 sq. ft. office space, basement storaae and 3 park%nC~ spaces Office supplies - supplies ~o m~n%ain opera%ion of the office Telephone .Expense - basic phone service Office Equ~ ipm~-nt Re~nnal - Office Equ. ip. & K~intenance Historical Data (phoODs; - includes photos for newsletters - De~o_e and after plct~es of oro~ects Liability Insurance - e ~xpense shared equally with DBA and DiD (51,000,000 policy) Accounting Fees - ex?ense due to contract with City to audit books ~_s~c- Bulletins newsletters and memos Pos-~ge - cost of ~ailLng Other Printing - for invitations or events o~Jner ti~n promotions prc~otions & improvements Adve~-*~ing (Med/a Expe. rise) - Me~ia Ex.~nse for down-~o'~ promo~cns Prcmotior~l Prin~ng- Flyers, pos%ers e~C. for sales Sidewalk Clean-u.m - BusLnesses are responsible for cle~n-up ~n front of ~hei-~ shops, ex~_nse ~_s for Seasonal Promotions - for San~a, Valentine Hear~, Ee.s-~er o~ing Garage Lot Payment & interest - %o re~ire +_he deD% on ..... Sill Parking lot ADMINISTRATIVE REPORT Meeting Date: May 11, 1988 Agenda Section: Reports Agenda Item: TO: HONORABLE MAYOR AND CITY COUNCIL Approved FROM: JOHN W. STINSON Department Head ASSISTANT TO THE CITY MANAGER DATE: May 3, 1988 City Manager SUBJECT: Report No. 25-88 from the Budget and Finance Committee regarding City Manager's Contract. 1. An Agreement with J. Dale Hawley to perform duties and functions as City Manager. Recommendations: Motion to approve and authorize the Mayor to execute the Agreement. Group vote. RECOMMENDATION: BACKGROUND: RPT.4:jp BUDGET AND FINANCE COMMITTEE REPORT NO. 25-88 May 11, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: CITY MANAGER'S CONTRACT The City Council referred the matter of negotiating a contract with Dale Hawley to the Budget and Finance Committee. We have met with Mr. Hawley and his representative to discuss the terms of this agreement. The agreement represents the results of these negotiations. Therefore, it is recommended that the City Council approve the contract and authorize the Mayor to execute. Respectfully submitted, Councilmember Donald K. Ratty, Chair Councilmember James Henry Childs Councilmember Kevin McDermott RPT.84:jp AGREEMENT NO. CITY MANAGER'S CONTRACT THIS AGREEMENT is made and entered into this day of , 1988, between the CITY OF BAKERSFIELD, a municipal corporation, hereinafter called "Employer", and J. DALE HAWLEY, hereinafter called "Employee." W I T NE S SETH : WHEREAS, the City Council of the City of Bakersfield, hereinafter called "Council," desires to employ J. DALE HAWLEY as City Manager of the City of Bakersfield as provided by Section 34 of the City Charter; and WHEREAS, it is the desire of the Council to provide cer- tain benefits and establish certain terms and conditions of employment, all as set forth herein. NOW, THEREFORE, in consideration of mutual covenants herein contained, the parties agree as follows: SECTION 1. DUTIES City Council hereby agrees to employ J. DALE HAWLEY as City Manager of the City of Bakersfield to perform the functions and duties specified in the Bakersfield City Charter, the Bakers- field Municipal Code and Administrative Rules and Regulations as the same presently exist or may hereafter be amended, and to per- form other legally permissible and proper duties and functions consistent with the dignity of the Office of City Manager as Council shall from time to time assign. SECTION 2. TERM A. The term of this Agreement shall be from the date of execution by the parties until terminated by. either party in accordance with the provisions set forth herein. During the term of this Agreement, Employee shall be a full-time City Manager. B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Council to terminate the services of Employee, at any time, at the sole discretion of Council, as provided in Section 37.5 of the City Charter, pro- vided, however, Employer shall either give Employee ninety (90) days' written notice of such termination or shall pay Employee a lump sum cash payment equal to three-months salary. C. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time from his position with the City, provided Employee gives ninety (90) days' written notice to Employer prior to the effec- tive date of resignation. - 2 - SECTION 3. SALARY EmplOyee's base salary shall be established within the range of the following salary schedule: Step 1 -- $ 75,586.00 Step 2 -- $ 79,365.00 Step 3 -- $ 83,333.00 Step 4 -- $ 87,500.00---~ Step 5 -- $ 91,875.00 Employer agrees to pay Employee for services rendered as provided herein a beginning annual base salary at Step 4, payable in installments at the same time as other employees of the City are paid, effective April 13, 1988. In addition, Employer agrees to adjust said salary schedule and/or other benefits of Employee in such amounts and to such extent as the Council may determine to adjust, across the board, the salary schedules of employees in the City's Management Group. SECTION 4. PENSION Employer agrees to pay for the Employee's portion of the contribution (7%) to the Public Employees Retirement System. SECTION 5. HEALTH INSURANCE Employer agrees to provide Employee with the same health, dental and optical insurance coverage as is provided other employ- ees in the City's Management Group. - 3 - SECTION 6. AUTOMOBILE Employee's duties require that he shall have the exclu- sive and unrestricted use at all times during this employment of an automobile provided to him by the Employer. Employer shall be responsible for paying liability, property damage and compre- hensive insurance and for the purchase, operation, maintenance, repair and replacement of said automobile. SECTION 7. EXPENSES A. Employer agrees to budget and to pay the professional dues and subscriptions of Employee reasonably necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for his continued professional participation, growth and advance- ment or for the good of this City. B. Employer hereby agrees to budget and to pay the tra- vel and subsistence expenses of Employee for official travel, meetings, and occasions reasonably adequate to Continue the pro- fessional development of Employee and to reasonably pursue neces- sary official and other functions for City, including but not limited to nation, regional, state and local conferences, govern- mental groups and committees thereof which Employee serves as a member. - 4 - SECTION 8. VACATION AND SICK LEAVE Employee's accumulation of, use of and pay-off for vaca- tion and sick leave shall be governed by those rules and regula- tions in effect for employees in the Management Group. Employee shall be entitled to credit for his prior service with Employer in calculating such benefits. SECTION 9. ADMINISTRATIVE LEAVE Employer agrees to provide Employee with ten (10) days of annual administrative leave. Unused administrative leave can nei- ther be reimbursed nor carried over to the next year. SECTION 10. PERFORMANCE EVALUATION A. The Council shall review and evaluate the performance of Employee each March. Said review and evaluation shall be in accordance with specific criteria developed jointly by Council and Employee. Said .criteria may be added to or deleted ~as Council may from time to time determine in consultation with Employee. B. In recognition of accomplishments of objectives and performance, a merit step increase may be granted. - 5 - SECTION 11. DISABILITY If Employee is permanently disabled or otherwise unable to perform his duties because of sickness, accident, injury~ mental incapacity or health for a period of four successive weeks beyond any accrued sick leave, or for 20 working days, or for a 30-day working period, Council shall have the option to terminate this Agreement, and, if Employee's disability does not qualify for compensation under the State workers' compensation law, Employee shall receive the severance pay requirements of Section 2, Paragraph B, and any accrued sick leave, vacation, holidays, and other accrued benefits except as limited by Section 8. SECTION 12. OTHER TERMS AND CONDITIONS OF EMPLOYMENT A. The Council, in consultation with Employee, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of Employee, provided other terms and conditions are not inconsistent or in conflict with the provisions of this Agreement, the City, or any other law. B. Fringe benefits and working conditions applicable generally to employees in the City's Management Group, as such rules now exist or hereafter may be amended, shall also apply to - 6 - Employee except where such fringe benefits and working conditions are contained in this agreement or are inconsistent with the terms contained herein. SECTION 13. GENERAL PROVISIONS A. The text herein shall constitute the entire Agreement between the parties as to the subject matter hereof. B. This Agreement shall be binding upon and inure, where applicable, to the benefit of the heirs at law and executor of Employee. C. If any provision or any portion hereof is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion hereof shall be deemed severable, shall not be affected, and shall remain in full force and effect. D. This Agreement may be amended only in writing. SECTION 14. NOTICES Notices pursuant to the Agreement shall be given by deposit in the custody of the united States Postal Service, postage prepaid, addressed as follows: City Council of the J. Dale Hawley City of Bakersfield City Manager 1501 Truxtun Avenue 1501 Truxtun Avenue Bakersfield, CA 93301 Bakersfield, CA 93301 - 7 - Alternatively, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service. o0o - 8 - 'IN WITNESS WHEREOF, the City of Bakersfield has caused this Agreement to be signed and executed in its behalf by the Mayor and duly attested by the City Clerk, and Employee has signed and executed this Agreement the day and year first-above written. "EMPLOYER" CITY OF BAKERSFIELD By~ APPROVED as to form: City Attorney COUNTERSIGNED: Finance Director "EMPLOYEE" J. DALE HAWLEY AJS/meg A AGMT 4 MANAGER.1 4/28/88 - 9 - 'O' MEMORANDUM May 10, 1988 TO: John Stinson, Assistant to the City Manager FROM: Stanley C. Grady, Community Development Coordinator~_~/ SUBJECT: Putting the Business Market Study for Southeast Bakersfield on the Budget and Finance Committee Agenda The Business Market Study was reviewed by the Budget and Finance Committee on May 4th. The Committee did not want anymore work to be performed by Atlantis Scientific, the consultant. The Committee also did not want to pay the balance of the contract. They did, however, instruct the Community Development Staff to meet with the City Attorney to determine how much of the full contract amount of $29,350.00 that the city was obligated to pay. The following is what resulted from the meeting: David Bates, Community Development Associate Planner, met with Alan Daniel, Assistant City Attorney, on May 6th regarding the City's obligation to pay the unpaid contractural balance of $4,350.00. Mr. Daniel was of the opinion that Atlantis Scientific was in a strong position to demand full payment. It was decided at the meeting that Mrf Bates would negotiate a final contract payment with Jerry Moore of Atlantis Scientific. He would ask that Mr. Moore not receive $500.00 budgeted for making a final report to the Council nor.be paid $1,500 budgeted for preparing a promotional marketing brochure for Southeast Bakersfield. On May 9th Mr. Bates made the proposed contract settlement to Mr. Moore. Mr. Moore said that he shoUld receive the $500.00 because it is "not his fault" that he is not making the report to the Council. He did, however, agree not to be paid the $1,500.00 for the promotional brochure "even though he has already done quite a bit of work on it." John Stinson Business Market Study Page 3' Messrs. Bates and Daniel feel that the settlement that Mr. Moore has proposed is a reasonable one considering the circumstances. I agree with their assessment, and recommend that the $1,500 set aside in the contract for the promotional brochures not be paid, and that the remaining $2,850 outstand- ing on the contract be paid to the consultant. This information needs to be brought back to the Budget and Finance Committee for action. cc: George Gonzales, Principal Planner J. David Bates, Associate Planner Ken Pulskamp, Assistant City Manager M55 .. JERRY C. FOX, M.D. A PROFESSIONAL CORPORATION 3807 B UNION AVENUE .,,.~ BAKERSFIELD, CA 93305 f' October 9, 1987 James Childs, Vice Mayor Councilman Ward I City Council Office 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Sir: As per our recent correspondence, I plan to submit a request for financial assistance, in the form of a loan, to develop a comprehensive medical center. The plans to be completed in detail within the next thirty (30) days. The planned site is in Census Tract #22, an area targeted for urban renewal by the City of Bakersfield's Community Development Program. Specifically, the site is located on the south side of California Avenue between Robinson Street on the East and Owens Street on the West. This .site location will be available and accessible to more than 19,000 Medi-Cal/Medicare recipients residing within a two mile radius. Thirty four (34) jobs will be created, providing income to many health care professionals' living in the area. The total cost of the project is estimated at $860,000.00. The Developer is requesting assistance from the City, in land aquis- tion, construction cost and predevelopment fee (s), associated with this project. We look forward to meeting with you and the council, to discuss this proposal and the importance the consideration of this matter will affect the development of this medical center. Respectfully, ~ Jerry C. Fo~g]~, M~D. Obst~ology cc: George Caravalho, City Manager George Gonzales, Program Coordinator' JCF:mv ALSO OPERATING BRUNDAGE MEDICAL CLINIC · BAKER MEDICAL CLINIC · CHESTER MEDICAL CLINIC · WASCO MEDICAL CLINIC MEMORANDUM FROM: ARTHUR MOORE, ENGINEER IV DATE: MAY 5, 1988 SUBJECT: CRITERIA FOR SELECTING RESPONSIBLE BIDDERS In April 1988, the City added the following language defining responsible bidder as cited in the Case City of Englewood - lbs Angeles County Civic 'Center Authority Vs. Superior Court of Los Angeles County: "The Language 'Responsible' refers to not only the attribute of trustworthiness but also to the quality, fitness and capacity of low bidder to satisfactorily perform th~ proposed work". On May 3, 1988, Arthur Moore and Diane LaRochelle met with Wayne Keller ~of the International Brotherhood of Electrical Workers regarding a criteria for selecting contractors on Public Works contracts. Mr. Keller had previously, in a section entitled "Public Works" Construction Contracts", .submitted a list of requirements from California State Law. The requirements of Mr. Keller's list are included in our sPecifications and we presented this information to Keller. He indicated that the "Public Works Construction Contract" section should be included in its entirety. He presented reports from two California cities which incorporate this section. Diane LaRochelle contacted the City of Sacrammnto and was told that this criteria for selecting a responsible bidder is a POlicy approved by the city council and does n6t appear in its entirety in their specifications. Although the City of Bakersfield presently uses all these criteria in awarding its contracts, the City has not adopted an official policy statement which outlines the procedure. ALM/lh 4 :M. 5588 Whenever any surety or sureties on any such bonds, or on any bonds required by law. for the protection of the claims of laborers and material men, become insufficient, or the Mayor has cause to believe that such surety or sure- ties have become insufficient, a demand in writing may be made of the Contractor for such further bond or bonds or additional surety, not exceeding that origi- nally required, as is considered necessary, considering the extent of the work remaining to be done. Thereafter no payment shall be made upon such contract to the Contractor or an.y assignee of the Contractor until such further bond or bonds or additional surety has been furnished. (f) REJECTION OF PROPOSALS CONTAINING ALTERATIONS, ERASURES OR IRREGULARITIES. Proposals may be rejected if they show any alterations of form, additions not called for, conditional or alternative bids, incomplete bids, era- sures or irregularities of any kind. Proposals in which the prices obviously are unbalanced may be rejected. The right is reserved to reject any and all proposals. (g) AWARD OF CONTRACT. The award of the contr, act, if it be awarded, will be to the lowest responsible bidder, fTRe language "responsible"'refers to~ not~ only-th~ attribute of trustworthiness, but the quality, fitness and capacity ~of~the low bidder to satisfactorily perform the work. The award of the contract will be made within forty-five (45) days after the opening of the proposals unless extension is approved by the lowest responsible bidder. (h) EXECUTION OF CONTRACT. The contract shall be signed by the successful bidder and returned, together with the contract bonds within ten (i0) days, not including Sundays, after the bidder has received notice that the contract has been awarded. No proposal shall be considered banding upon the City until the execution of the contract. All contracts shall be considered as being made and entered into in the City of Bakersfield, California. Failure to execute a contract and file acceptable bonds as provided herein within ten (10) days, not including Sundays, after the bidder has received notice that the contract has been awarded, shall be just cause for the cancellation of the award and the forfeiture of the proposal guaranty. (i) EXAMINATIONS OF PLANS, SPECIFICATIONS, SPECIAL PROVISIONS, AND SITE OF WORK. The bidder is required to examine carefully the site of, the proposal, plans and specifications, and contract forms for the work contemplated, and it will' be assumed that the bidder has investigated and is satisfied as to the conditions to be encountered, as to the character, quality, and quantities of work to be performed and materials to be furnished, and as to the requirements of the specifications, the special provisions, and the contract. It is mutually agreed that the submission of a proposal shall be considered prima facie evidence that the bidder has made such examination. R4.6.88 SPi.1 '" C I T O F S A N J 0 S ~ - M £ M O R A N D U M TO: HONORABLE MAYOR AND CITY COU~ICIL FROM: D. Kent Dewell Director of Public San~ra J. Fox ' Sr. Deputy City At SUBJECT: REFERRAL ON LOWEST RESPONSIBLE DATE: February 28, '1985 BIDD~J~ , AP PROVED DATE COUNCIL REFERRAL: 2-19-85 10k _~q~e City Council has requested, through coordination between the Public Works Department and the City Attorney'l Office, to provide a working definition of "respOnsible bidder" and a description of the process of determining'whether or not a bidder. ia responaible. This memo shall serve as a description of the- criteria to be used in evaluating, potential contractors for the City. PUBLIC WORKS CONS%RUCTION CONTRACTS ."'he San Jose City Chart%ff and the California Public ConTracts Code require that the City award construction contracts to the lowes't responsive, responsible bidder. Where there is a question as to the responsibility of a bidder, the City Council will make a determination on an individual case-by-case basis'as to the responsibility of a bidder using any combination of the below described criteria. The criteria that may be used by the City Council in Judging the question of responsibility of a particular contractor include 1) past performance criteria, and 2)capability. Further, the contractors mu~t meet California state law requirements: l. The contractor must possess a .California Stats Contractor License,. applicable to the work to be performed. 2. The contractor most submit a bidders bond, other~ife known as bid security, through a bond, certified ch~ck or cash in an amount at least 10% of the bid. Bid ~ecurtty must be available at the time of bid opening or the bid proposal will be considered non-responsive. 3. The contractor must have the ability to obtain Payment and Performance Bonds for th~ contract amount in the t~me ~pecif£ed in the contract document. 4. The contractor must have the ability to obtaim £n~urance as described in the specifications and in the time r~quired. H0~orable Havor City Counctl February 2B, 1985 ' RE' REFERRAL ON LOWEST RESPONSZBLE BIDDER Page 2 5. The 'contractor must l~st all subcontractors in the bid proposal over one half of one percent tn accordance w£th the CAlifornia Subcontracting Act. 6. The-contractor must comply with applicable MBE, wBE or DBE requirements in ter~s of reaching the goals specified or making a good faith effort and have those efforts documented. The contractor must comply with all Affirmative Action requirements. 7. In case of grant funding, such as EPA, FAU or UNTA, the contractor must meet all applicable requirements specified in the grant. The contractor must have the ability to obtain a California State Contractor-license applicable t~ the work to be performed. 8. The contractor must have the ability to obtain the City'of San Jose business license. 9. The contractor must present his bid proposal not in collusion with any-other bidders. The following criteria relate to past performamce with the City of San Jose or other comparable non-city projects. The City may evaluate the contractor's performance on other Jobs and any problems relating to those other Jobs in making a determihation as to the responsibility of the contractor. These criteria i.nclude: a. Has the contractor been recently assessed liquidated damages for any project? b. Has the contractor been declared in default on any recent construction contract assuming that the owner and/or management of the construction company tm the same? c. Has the contractor been in litigation on a qu~t£on relating to past performance on a project or has the contractor performed acceptably on other comparable non-city projects? d. Has the contractor failed to pay prevailing wages or other state and/or federally required tao~es or contributions? e. Does the contractor h~ve a acceptable safety record or been found to have violated OSHA ~tandard~ and requiremeots? "Honorable Mayor aO City Council ~p~bruary 28, 1985 RE: REF~J~AL ON LOWEST RESPONSIBLE BIDDER ge 3 Lastly, the criteria wh£ch may be considered with reapec.: to capability are as follows: 1. Does the coatractor currently have uncompleEed work with the City of San Jose or another Jurisdiction, which would prevent the timely completion of the projec~ in questlon7 2. Does ~he contractor possess ~he bonding capacity amd o~her necessary financial resources to satisfactorily complere :he p roi e c t ? 3. Does the contractor possess or is the conEracEor capable of obtaining naceasary equipmen~, machiae~ Or work force to satisfactorily complete the project? ~esa criteria are intended to provide the C~Ey Council and the administration a basis for evaluating an apparen~ low bidder. ~e contractor should use ~h~s criteria to de,ermine his or her suitability to be awarded the coaEracE in quesE.ion. ~/ City council and the ~dminfstratton m~ us~ additional .' appropriate criteria to evaluate a bidder, such crirarta to ~ dete~lnad by t~ ~tze,-~cope and ~ure~ ~he propoa~ project. - Director o~ Publfc ~orks Senior Deputy City Atto~ey D~:SJF:st 5427a/2134a 'AMENDED IN SE~ATE AUGUST 26, 1988 AMENDED IN SENATE AUGUST 8, 1988 CALIFORNIA LEGISLATURE--1987-88 REGULAR SESSION ASSEMBLY BILL' No. 3045 Introduced by Assembly Member Floyd February 8, 1988 An act to add Section 1105 to the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST AB 3045, as amended, Floyd. Public works contracts. The Public Contract Code contains 'various definitions. This bill would-add to the Public Contract Code the definition of "lowest bidder" or "lowest responsible bidder" for purposes of prescribed provisions. It would also prescribe certain factors .which may be considered by the awarding authority in determining the "lowest bidder" or the "lowest responsible bidder." Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people o£ the State o£ CMi£ornia do enact as £ollows: I SECTION 1. Section 1i05 is added to the Public 2 Contract Code, to read: 3 1105. (a) "Lowest bidder" or "lowest responsible 4 bidder," as used in this part, means a person who submits 5 the lowest monetary bid which responds to the terms 6 upon which bids were requested, and who has the 7 capacity, integrity, and other attributes of responsibility 8 to perform the particular requirements of the public 9 works contract. 97 5O AB 3045 1 (b) Factors which may be considered by the awarding 2 authority in determining the "lowest bidder" or "lowest 3 responsible bidder" include, but are not limited to, all of ,4 the following: 5 (1) The contractor's prior record of performance on 6 other public works projects, including timely completion 7 of performance, quality of work, and completion of 8 projects within project budget' or bid amount submitted. 12 ~ 13 (2) The contractor's involvement in any ongoing 14' litigation or contract disputes, with the awarding 15 authority which could impak satisfactory perform~ce 16 on the contract to be awarded. 20 ~ 21 (3) The contractor's histor~ o~ ~ eo=~]~;;c; ~ no~co~plia~ce with occupational sa~et~ and health 23 requirements, labor statutes and regulations, and 'other 24 local, state, and ~ederal laws. O .97 60 SMOKING POLICY DIVISION ALLOWABLE AREA OPTIONAL AREA PROHIBITED AREA COMMENTS CITY HALL LUNCH RM TABLE, NONE HALLS,OFFICES, ADOPTED OUTSIDE MEETING.ROOMS POLICE BASEMENT, SQUAD, PRIVATE OFC & ALL OTHER AREAS ADOPTED 2ND FLR LOUNGE, VEHICLES BY 8-5PM. CHIEF'S CONF RM, AGREEMENT, INTERVIEW AND CHIEF'S CONF RM INTERROGATION, DURING MEETING OUTSIDE BY AGREEMENT 5-8AM ADD lST FLOOR LOUNGE FIRE SEGREGATED AREA, UPON AGREEMENT LOCKER & RESTRM ADOPTED OF LARGE DINING OF ALL:COMF RM, PUBLIC AREAS, & WORK AREAS, DINING RM, KITCHEN & BEDRM, PRIVATE OFC, VEHICLES APPARATUS FLOOR, OUTSIDE CORPORATION YARD: COM SERV DESIGNATED AREA EACH OFC DETER- PUBLIC AREAS, DRAFT OF LUNCHRM MINES BY VOTE HALLS, RESTRMS PUBL WKS · GEN SERV DETERMINED BY LUNCH AND RESTRM DRAFT EACH SUPERVISOR STREETS DESIGNATED AREA PRIVATE OFC PARTS OF LUNCHRM OF LUNCHRM, UPON AGREEMENT OPEN AREAS EQUIPM OPEN AREAS LUNCH, PARTS, i WITHIN SHOP RESTRMS, OFC'S ENG-CNST OPEN AREAS ~ WSTEWTR DESIGNATED AREA SMOKING POLICY DIVISION SMOKER NON-SMOKER TOTAL COMMENTS CITY HALL & ANNEX 19 - 15% 105 - 85% 124 (1985 DATA) Po~.ICE ~,_, 7/- ,ez~ z4~ -zs~~,z~ (,~e ,,,,,-r,~) FIRE 38 - 23% 126 - 77% 164 COMMUNITY SERVICES 34 - 37% 58 - 63% 92 PUBLIC WORKS GENERAL SERVICES 13 - 45% 16 -'55% 29 STREETS 11 - 30% 26 - 68% 50 EQUIPMENT 11 -' 33% 22 - 66% 33 ENG-CONSTRUCTION 2 - 17% 10 - 73% 14 WASTEWATER 3 - 15% 17 - 85% 20 BAKERSFIELD SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS Bakersfield S.P.C.A. Pet Adoption Center, 3000 Gibson Street, Bakersfield, California 93308 Bakersfield S.P.C.A., 6851 Edison Highway, irt. 5, Box 54'7, Bakersfield, California 9330? (805) 366-3234 May 4, 1988 Offlcerl and Dlrectorl Bakersfield City Council RuthAnn K. Harper Finance/Budget Committee President 1501 Truxtun Avenue Grog Honegger President Elect Bakersfield, CA 93:501 Klm McNeill Vice President Larry Radanovlch Post President Dear Gentlemen: Ethel Miksits Recording Secretary The Bakersfield SPCA submits for your consideration the proposed Gay DeTuncq Corresponding Secretary budget for fiscal year July 1, 1988 - June :50, 1989. In addition we Stella UcUurtrey submit a budget request to amend the current fiscal year budget Treasurer as shown in attached report. We have conferred with John Dr. Norma,/obr. D.V.M. Stinson regarding start-up costs for the new Pet Adoption Center Jim Hartzell which opened May 3, 1988 at 5000 Gibson Rd. in Bakersfield. The John Kammeyer Arnold Johansen Bakersfield SPCA expects to close the current fiscal year with a MarcieKnittel lOSS of $52,700. Therefore, we are requesting a $20,000. allowance OaflasWIIklnson toward the loss incurred caused by the immediate' improvements made to the new facility required to open it for public use, The demands placed on the existing facility on Edison Highway are tremendous and immediate additional housing was mandatory. It ,,vas our plan to ultimately expand our existing shelter. However, the opportunity to purchase the Gibson facility is more cost effective. Sincerely, D. Anne Rellly Executive Director DAR: bt We depend upon your contributions · Donations are tax deductible KUH$ (~ PARKER ATTORNEYS AT LAW WILLIAM C. KUHS JA~ES R. PARKER, JR. RALPH WM. WYATT P.O. BOX ~OB TERI A. BJORN BAKERSFIELD, CALIFORNIA 93303 SCOTT R. BA~E~ T~MOTHY L, ~.~IE~ ~805) 3~-4OO4 OUR fILE NO. May 2, 198~ CI]'Y Art Saalfield, Esq. City Attorney City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Re: Transfer of Separation Of Grade Projects Dear Mr. Saalfield: We enclose~'herewith.a copy' of the Agreement Trans- ferring Separation of Grade Projects revised to insert the word "East" in ~ front'of~ 19th on Page one and in the Quitclaim Deed and to replace the word "under" with. the word "of" on the ninth line from the bokkom Quitclaim Deed, as you requested last Thursday. Ass~ing that the documentation is now in a form acceptable to the City, we will present the agreement to the Co~ission at a special meeting called for this purpose next Thursday and we will hand deliver to you .the following day the original and duplicate original of the agreement executed by the Co~ission and the original Quitclaim Deed so that you can present, these doc~ents to the City Council for its consideration the following ~ednesday, May 11, 1988. ' Very, tru~y~s, J~: plo Encl. cc: Mr. Ronald F. Ruettgers (~/ .encl.) LAW OFFICES OF I{UHS ~5: PAI~KEI~ I;~OO t!~UXTUN AVENUE, SUITE ~AL=h WM. WYATT BAKERSFIELD, CALIFORNIA ~. O. sox M.arch 1, 1988 777.02 UAR 2 1988. City C/uncil City~f Bakersfield ~NGIN~ !50~Trmxtun Avenue ' Ba~rsfield, CA 93301 Re: Transfer of Separation of Grade Projects Dear Council Members: We are counsel for the Greater Bakersfield Separation Of Grade District (_the "District"). The Commission of the District has instructed us to formally request the City Council, pursuant to section 8237 of the Streets and Highway Code, to accept into the City's street system three separation of grade projects constructed by the District between 1959 and 1961, namely, the. Truxtun Overcrossing of Union Avenue, dedicated on September 2, 1959., the Beale Overcrossing of the Southern Pacific, dedicated on May 11, 1960, and the Chester Underpass beneath the main line of the Atchison, Topeka & Santa 'Fe Railroad, dedicated on November 10, 1961. The District additionally requests that Agreement No. 60-60, entitled "Agreement. Regarding Maintenance "be terminated : of Truxtun and Beale Avenue Overcrossings, . The reasons to transfer'these projects from the District to the City are set forth in detail in two letters written by the late Roland. S. Woodruff, former counsel of the District: to Dale Hawley, dated December 19, 1985 and March 11, 1986, copies of whi. ch are enclosed. In short, proceeds of bonds sold to. construct and maintain these projects have been exhaust- ed and. the District can no longer afford to maintain these projects in the future. ~L~ O~CEs O~ · '~UHS ~ P~RKER March 1, 1988 Page Two Letter To City Council We respecfully ask the City Council to refer this formal request to the appropriate City departments for their review and .report back to the Council with the goal of transferring these projects into the City's street system. bmitted, JRP:pm Enclosures ~r cc w/o encl: . Ed Schulz Arthur Saalfield, Esq. Mr. Ronald F. Ruettgers Commissioners, GBSOGD Mr. Dale Hawley Ro~ $. R O. ~OX 1876 . BAKcRsFI£LD, cALIFoRNIA 933Ol Ma~ch ll, 1986 FEB 1 0 1988 .,. [NslNE£RING DEPARTMEN~ ' Mr. Dale ltawley ..~ Director of Public Works ' : City of Bakersfield . Bakersfield, CA RE: Background Information re Transfer of Separation Projects from Greater Bakersfield Separation of Grade District to City of Bakersfield Dear Mr. Hawley: The Greater'Bakersfield Separation of Grade District is a special district, the formation of which was originally VOted by.'. the public under the enabl%ng of legislation designed for the . specific.railroad crossing problem at that ~ime existing in the city of Bakersfield. The enabling legislation, Streets and .. · Highways Code ET 100 etc., entitled "Separation of Grade District '. Act" was originally enacted in 1949.. In.Bakersfield, when the City.comprised abOut one third of the metropolitan Bakersfield ., pOpulatiOn, it was near to impossible to obtain local funding required to build'necessary un.derpasses and·overpasses under and Over the two railroads intersecting the local Bakersfield streets and massive traffic' delays were sUffere~. The City COuncil Would no% bear the local costs because the structures Would serve a. substantial portion of the County and the.Board·of Supervisors felt . it was not their problem because any separations Would be. in and ' ;. .. serve the interest of the City of Bakersfield. 'The enabling "Separation of Grade District Act" was thus introduced and enacted in 1949 and by'pub].ic election held in 1954 at'which the formation of the local district was authorized and directed and the special District named.,. "The Greater Bakersfield Separation of Grade DistriCt,, was ordered .. and formed which created then a tax base that included the "Metropolitan Bakersfield Area" and allowed the area thus bene'fitted to raise the money from ad valorem taxes to bear the lo'cal' agency.s share. At the election authorizing the creation 9f the District, the public also"authorized construction of four Separations, one at "~" Street and the Santa Pe, one at.Chester Avenue and the Santa Fe, one at Beale (Alta Vista), and one at M't. Vernon and the Southern Pacific tracks. The public have.never authorized a bond to fund the proposed "F" Street'undercrossing and Supervisor Ming took it upon himself to build.the Mt. Vernon OVercross~ng for ~he County of Kern thus only two of the original four named Separations of Grade were actually built by the District to wit the Chester Avenue undercrossing at Santa Pe and the Beale Street overcrossin~ at the Southern Pacific'Yards. The third'crossing originally built by the District was built under a joint agreement with the State of California and consisted of crossing over Union Avenue at TruxtUn Avenue and did'not inVolVe a railroad. A different method of funding existed in those days which required a prior determination of prorating the costs' between the local agency and'the specific ~ailroad based upon.benefits and was an extensive time consuming legal litigation. Also the anticipated 50% of.costs.of projects was borne by the local agency and required bonds, to. be Voted.to'f~nance the local share. With the railroads that.knew, the benefits they,would receive and'with the publ c eager for thes~ improvements the ~ ' .. . with.the cooperation of the Cie,, - '- - District ~ . . · -j, ~oun~y and State w and construct the three pro4ects , ..... ere. able to fund . ~ ~nown as t~e Chester Avenue at the Santa Fe, the Truxtun Avenue.at Union, and the Beale Street Overcrossing · from Truxtun tO'Kentucky over the Southern Pacific tracks. In each~of these Projects a special bond was vOted, the funds of which were used . for the'construction of such projects including the acquisition of right-of-way. Right-of-way was taken in the name of the Distrfct and all contracts and construction was done in the .name of the District. Over the years the methods of'financing these projects have'changed and funding, has been made easier by. virtue of the $15 million annual fund administered by the PUC. The effects of PropositiOn 13 and the 'adoption of this newmethod of funding completely changed the part formerly exercised by the District and has converted the District and its BOard, Engineer and Counsel into' a participant along with the C~.tV and County in the planning, engineering, funding and acquisition of right-of-way.for the construction of the ~dditional projects. The problem 'that now faces the District is that ownership of the three pre-existing projects, carrying with it alntenance and repair, remains in the District with title held by the District. The last two projects u~dertaken under a Joint Agencies Agreement between the City, County and District call for participation in the funding, acquisition of right-of-Way, and ultimate construction of these projects and it is anticipated that because the District has acted under the Joint'Agencies.Agreements with the City being the lead part'y that title to these iatter two projects -- the Chester Avenue at Southern Pacific tracks and the union Avenue crossing over the Southern Pacific tracks -- although acquired in the name of the District to.the'right_of_way.shall be,~ transferred to the City upon'completion of the project and liquidation of the remnants. The District 'is not equipped to handle the responsibilities of ownership.with regard to these projects and although a contractual relationship has been continuing between the District and the City for this purpose, due basically to the lack of adequate funding under the new tax laws, it is felt that these projects should be and actually are a. part and parcel of the general City street system, bes~ administered' by the City and that'the District can better'serve the City and its residents by'being an initiative 'body taking on the preliminary engineering,' state and r~ilroad agreements, acquisition of right-of2way,' aPpraisal work~, all of'.which are necessary for the analysis and introduction of new projects Which may be. required in this area in the future. A~'transfer ~f these projects is"authorized'under'the provisions o~..Chapter.ll of the "Separation of Grade District Act" Section 8237 of the Streets and Highways Code. Ail bonded indebtedness and all debt of the District, except to ithe City of Bakersfield under the continuing maintenance agreement have been fully paid. Respectfully submitted, GREATER BAKERSFIELD SEPARATION B S. ~6ouruf~,'Att~ne~26~ Opening and Dedication of' Grade Separations 1. TruxtunOvercrosslng 1 PM Wed. Sept. 2, 1959 2.. l~ale Overcrosslng 2:30 PM' Wed. May 11, 1960 3. GhesterUnderpass 12:01 PM Fri. Nov. 10, 1961 ROLAND S. WOOD~U]~ ATTORNEY AT LAW BAKr'RSF'I£LD, CALIF.ORNIA ~3301 December 19, 1985 Mr. Dale Hawley Director of Public Works City of Bakersfield Bakersfield, CA RE: Transfer of Separations to City Dear Mr. Hawley: I am writing this letter as legal counsel for the Greater Bakersfield Separation of Grade District and at the request of the Commissioners of said District. As you know t],c Dis'~ict has, in the last few years, acted as the local agency, in the design, funding and construction of the Chester Avenue Underpass at the Santa Fe railway tracks, of the 'Tru>:tun Avenue Overcrossing at Union Avenue· and of the Beale Avenue Overcrossing at the Southern Pacific ·tracks and recently has participated with the City and County, under a joint agency agreement,.in the construction of the Chester Avenue Undercrossing.at the Southern Pacific tracks between 30th and 34th Streets. . In each of the above described separations the District acquired the necessary right of way, by condemnation or · purchase. This real property and the first three structures stand in the name of the District in the Hall of Records. All bonded indebtedness voted to build the first three separa-' tions has been paid and because alt of these separations are ~ part of the Cit,, streets·and because of the fact that the City ' has been maintaining these separations and their approaches a~d, because of the difficulty the District is facing in obtaining liability insurance coverage on today's market, the Conm]issioners · have asked me to write this letter offering to transfer title· to' · ' this real property and any interest the District has in the improvement thereon, to the City so that·they may be a part the City street improvements and can be maintained and repaired'/.i as'the other City streets and separations. This has been contemplated on the Chester Avenue Undercrossing north of the Circle and is contemplated on the current nroject, the Union ~ Avenue ~vercrossing. - If this transfer is approved by your office and the other concerned City staff, we w°uld-appreciate your submitting~ this request to the Council with your recommendation. It seems to us to be logical and of benefit to' the general public of the community. I have discussed this matter with Greg Klimko, Financial Officer of the City and am sending him a copy of this letter. Yours very truly~ · Ro%~nd-~. ~oodruff Attorney at Law cc: Greg Klimko Financial Officer City of Bakersfield 7 ~. ~ 0t~y ~haZ1 ~o~'~ ~c~ ~e~v!O~ ~%~ning'to tho' :.. 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RECORDING REQUESTED BY AND FOLLOWING RECORDATION MAIL TO: City Engineer City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 QUITCLAIM DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the GREATER BAKERSFIELD SEPARATION OF GRADE DISTRICT, a separation of grade district organized and existing pursuant to the provisions of Part 2 of Division 9 (beginning with section 8100) of the Streets and Highways Code, (hereafter the "District") hereby REMISES, RELEASES AND QUITCLAIMS to the CITY OF BAKERSFIELD, a chartered city, pursuant to the provisions of section 8237 of the Streets and Highways Code, all of the District's right, title and interest in and to (a) the real property in the City of Bakersfield, County of Kern, State of California more particularly described in Exhibit A hereto, which by this reference is incorpo- rated herein, and (b) those separation of grade projects, located in, on or about such real property, commonly referred to as the Truxtun Overcrossing of Union Avenue, dedicated on September 2, 1959, the Beale avenue Overcrossing of Southern Pacific Railroad's Main Line between Monterey and East 19th Streets, including the realignment of Truxtun Avenue north of the Main Line of the Atchison, Topeka and Santa Fe Railroad, dedicated on May 11, 1960 and the Chester Underpass beneath the Main Line of the Atchison, Topeka and Santa Fe Railroad, dedicated on November 10, 1961. Upon acceptance of this Quitclaim Deed, the District shall have no further liability or responsibility for such real property and projects. Dated: , 1988 GREATER BAKERSFIELD SEPARATION 05' GRADE DISTRICT B~ William Canessa, President By Joe Steele, Secretary EXH]B]T ALL OF THE FOLLOWING DESCRIBED LAND IN THE CITY OF BAKERSFIELD, FORMERLY KNOWN AS THE TOWN OF KERN, IN THE COUNTY OF KERN, STATE OF CALIFORNIA, AS PER MAP RECORDED JANUARY 12, 1889, IN BOOK 1 PAGE 15 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID CDUNTY, DESCRIBED AS FOLLOWS: 1. ALL OF THOSE PORTIONS OF LOTS 12 AND 13 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 12; THENCE SOUTHERLY ALONG THE WEST LINE OF SAID LOTS 12 AND 13 TO THE SOUTHWEST CORNER OF SAID LOT 13; THENCE EASTERLY A DISTANCE OF 22.80 FEET AS MEASURED ALONG THE SOUTHERLY LINE OF SAID LOT 13 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 12, SAID POINT ALSO BEING 24.00 FEET EASTERLY OF THE SAID NORTHWEST CORNER OF LOT 12; THENCE WESTERLY A DISTANCE OF 24.00 FEET AS MEASURED ALONG THE NORTH LINE OF SAID LOT 12 TO THE POINT OF BEGINNING. 2. ALL THOSE PORTIONS OF LOTS 17 AND 18 AND THE NORTHERLY ONE-HALF OF LOT 19 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 17; THENCE 20.60 FEET AS MEASURED EASTERLY ALONG THE NORTH LINE OF SAID LOT 17 TO A POINT; THENCE SOUTHERLY TO A POINT THAT FALLS IN THE SOUTH LINE OF THE NORTH ONE-HALF OF LOT 19, SAID POINT ALSO BEING 19.10 FEET FROM THE SOUTH- WEST CORNER OF THE SAID NORTH ONE-HALF OF LOT 19 AS MEASURED EASTERLY ALONG THE SOUTH LINE OF THE SAID NORTH ONE-HALF OF LOT 19; THENCE WESTERLY A DISTANCE OF 19.10 FEET TO THE SOUTHWEST CORNER OF THE SAID NORTH ONE-HALF OF LOT 19; THENCE NORTHERLY ALONG THE WEST LINES OF THE SAID NORTHONE-HALF OF LOT 19 AND LOTS 18 AND 17 TO THE NORTHWEST CORNER OF SAID LOT 17 TO THE POINT OF BEGINNING. 3. ALL THOSE PORTIONS OF LOTS 15 AND 16 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 16; THENCE NORTHERLY ALONG THE WESTERLY LINES OF LOT 16 AND THE SOUTH HALF OF LOT 15 TO THE NORTHWEST CORNER OF SAID SOUTH ONE-HALF OF ~OT"-~-5; THENCE EASTERLY A DISTANCE OF 21.90 FEET AS MEASURED ALONG THE NORTH LINE OF SAID SOUTH- HALF OF LOT 15 TO A POINT; THENCE SOUTHERLY TO A POINT THAT FALLS IN THE SOUTH LINE OF SAID LOT 16, SAID POINT ALSO BEING A DISTANCE OF 21.00 FEET FROM THE SOUTHWEST OCRNER OF SAID LOT 16 AS MEASURED EASTERLY ALONG THE SOUTH LINE OF SAID LOT 16; THENCE WESTERLY A DISTANCE OF 21.00 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 16 TO THE POINT OF BEGINNING. E X H I B I T "A" 4. ALL OF THOSE PORTIONS OF LOTS 14 AND 15 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 14; THENCE SOUTHERLY ALONG THE WEST LINE OF LOT 14 AND THE WEST LINE OF LOT 15 TO THE SOUTHWEST CORNER OF THE NORTH ONE-HALF OF LOT 15; THENCE EASTERLY A DISTANCE OF 21.90 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID NORTH ONE-HALF OF LOT 15 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 14, SAID POINT ALSO BEING 22.80 FEET EASTERLY FROM THE NORTHWEST CORNER OF SAID LOT 14; THENCE WESTERLY A DISTANCE OF 22.80 FEET AS MEASURED ALONG THE SAID NORTH LINE OF LOT 14 TO THE POINT OF BEGINNING. 5. ALL OF THOSE PORTIONS OF LOTS 19, 20 AND 21 IN BLOCK 38 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTH WEST CORNER OF SAID LOT 21; THENCE NORTHERLY ALONG THE WESTERLY LINE OF LOTS 21, 20 AND 19 TO THE NORTHWEST CORNER OF THE SOUTH ONE-HALF OF LOT 19; THENCE EASTERLY A DISTANCE OF 19.10 FEET AS MEASURED ALONG THE NORTH LINE OF THE SAID SOUTH ONE-HALF OF LOT 19 TO A POINT; THENCE SOUTHERLY TO A POINT THAT FALLS IN THE SOUTH LINE OF SAID LOT 21, SAID POINT ALSO BEING 17.60 FEET EASTERLY OF THE SOUTHWEST CORNER OF SAID LOT 21; THENCE WESTERLY A DISTANCE OF 17.60 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 21 TO THE POINT OF BEGINNING. 6. ALL THAT PORTION OF LOT 1 IN BLOCK 39 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 1; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT I TO 'THE SOUTHEAST CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 1A DISTANCE OF 21.00 FEET TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF SAID LOT I AND DISTANCE 24.00 FEET WESTERLY FROM THE NORTHEAST CORNER OF SAID LOT 1; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID LOT 1, A DISTANCE OF 24.00 FEET TO THE POINT OF BEGINNING. 7. ALL THAT PORTION OF LOT 32 IN BLOCK 39 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 32; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 32 A DISTANCE OF 37.50 FEET TO A POINT; THENCE WESTERLY ALONG THE SOUTHERLY LINE OF THE NORTHERLY 37.50 FEET OF SAID LOT 32 A DISTANCE OF 19.85 FEET TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF SAID LOT 32, SAID POINT BEING 20.60 FEET WESTERLY FROM THE NORTHEAST CORNER OF SAID LOT 32; THENCE EASTERLY ALONG SAID NORTHERLY LINE OF LOT 32, A DISTANCE OF 20.60 FEET TO THE POINT OF BEGINNING. EXHIBIT "A" 8. THAT PORTION OF THE SOUTH 37 1/2 FEET OF THE NORTH 75 FEET OF LOT 32 IN BLOCK 39 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID SOUTH 37 1/2 FEET OF THE NORTH 75 FEET OF SAID LOT 32; THENCE SOUTHERLY ALONG THE THE WEST LINE OF SAID LOT 32 TO THE SOUTHWEST CORNER OF THE SAID ,SOUTHERLY 37 1/2 FEET OF SAID NORTHERLY 75 FEET OF SAID LOT 32; THENCE WESTERLY A DISTANCE OF 19.10 FEET AS MEASURED ALONG THE SOUTH LINE OF THE SAID SOUTHERLY 37 1/2 FEET OF THE SAID NORTHERLY 75 FEET OF SAID LOT 32 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF SAID SOUTHERLY 37 1/2 FEET OF SAID NORTHERLY 75 FEET OF SAID LOT 32, SAID POINT ALSO BEING 19.85 FEET WESTERLY FROM THE EAST LINE OF SAID LOT 32 AS MEASURED ALONG THE NORTHERLY LINE OF SAID SOUTHERLY 37 1/2 FEET OF SAID NORTHERLY 75 FEET OF SAID LOT 32; THENCE EASTERLY A DISTANCE OF 19.85 FEET AS MEASURED ALONG THE NORTHERLY LINE OF SAID SOUTHERLY 37 1/2 FEET OF SAID NORTHERLY 75 FEET OF SAID LOT 32 TO THE POINT OF BEGINNING. 9. THAT PORTION OF THE SOUTHERLY 75 FEET OF LOT 32 IN BLOCK 39 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF THE SAID SOUTHERLY 75 FEET; THENCE SOUTHERLY ALONG THE EAST LINE OF SAID LOT 32 TO THE SOUTH- EAST CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 32 A DISTANCE OF 17.60 FEET TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF THE SAID SOUTHERLY 75 FEET OF LOT 32, SAID POINT ALSO BEING 19.10 FEET WESTERLY OF THE NORTHEAST CORNER OF THE SAID SOUTHERLY 75 FEET OF LOT 32 AS MEASURED ALONG THE NORTH LINE OF THE SAID SOUTHERLY 75 FEET; THENCE EASTERLY A DISTANCE OF 19.10 FEET AS MEASURED ALONG THE SAID NORTH LINE OF THE SOUTHERLY 75 FEET OF LOT 32 TO THE POINT OF BEGINNINC. 10. LOT 32 IN BLOCK 58, EXCEPT THE WESTERLY 9 FEET THEREOF. 11. THE EASTERLY 16 FEET OF LOT I IN BLOCK 58. 12. THE EASTERLY 5 FEET OF LOT 17 AND THE WESTERLY 11 FEET OF LOT 18 IN BLOCK 59. 13. THE WESTERLY 16 FEET OF LOTS 15 AND 16 IN BLOCK 59. 14. THE'WESTERLY 16 FEET OF LOTS 12, 13 AND 14 IN BLOCK 59. EXHIBIT 'A' 15. THE EASTERLY 16 FEET OF LOT I IN BLOCK 94. 16. ALL OF THAT PORTION OF LOT 32 IN BLOCK 94 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTH EAST CORNER OF SAID LOT 32; THENCE WESTERLY A DISTANCE OF 19.78 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 32 TO A POINT; THENCE NORTHERLY TO POINT THAT FALLS IN THE NORTH LINE OF SAID 32, SAID POINT ALSO BEING 16.24 FEET WESTERLY OF THE NORTHEAST CORNER OF SAID LOT 32; THENCE EASTERLY A DISTANCE OF 16.24 FEET TO THE NORTHEAST CORNER OF SAID LOT 32; THENCE SOUTHERLY ALONG THE EAST LINE OF SAID LOT 32 TO THE POINT. OF BEGINNING. 17. ALL THOSE PORTIONS OF LOTS 17, 18 AND 19 IN BLOCK 95 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 19; THENCE 18.36 FEET AS MEASURED EASTERLY ALONG THE SOUTH LINE OF SAID LOT 19 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT LOT 17, SAID POINT ALSO BEING 16.24 FEET EASTERLY OF THE NORTHWEST CORNER OF SAID LOT 17; THENCE WESTERLY TO THE NORTHWEST CORNER OF SAID LOT 17; THENCE SOUTHERLY ALONG THE WEST LINE OF LOTS 17, 18 AND LOT 19 TO THE POINT OF BEGINNING. 18. THE WESTERLY 16 FEET OF LOT 16 AND THE WESTERLY 16 FEET OF THE SOUTH 16 FEET OF LOT 15 IN BLOCK 95. 19. THE WESTERLY 16 FEET OF LOTS 12, 13 AND 14 AND THE WESTERLY 16 FEET OF THE NORTHERLY 14 FEET OF LOT 15 IN BLOCK 95. 20. ALL THOSE PORTIONS OF LOTS 19 AND 20 IN BLOCK 95 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTH WEST CORNER OF SAID LOT 21; THENCE EASTERLY A DISTANCE OF 19.78 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 21 TO A POINT; THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 20 SAID POINT ALSO BEING 18.36 FEET EASTERLY OF THE NORTHWEST CORNER OF SAID LOT 20; THENCE WESTERLY A DISTANCE OF 18.36 FEET AS MEASURED ALONG THE NORTH LINE OF SAID LOT 20 TO THE NORTHWEST CORNER THEREOF; THENCE SOUTHERLY ALONG THE WEST LINES OF SAID LOTS 20 AND 21 TO THE POINT OF BEGINNING. 21. THE WESTERLY 24 FEET OF LOTS 17 THROUGH 21 IN BLOCK 106. 22. ALL THOSE PORTIONS OF LOTS 12 THROUGH 16 IN BLOCK 106 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 16; THENCE EASTERLY A DISTANCE OF 24 FEET AS MEASURED ALONG THE SOUTH LINE OF SAID LOT 16 TO A POINT: THENCE NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 15, SAID POINT ALSO BEING 24.00 FEET EASTERLY OF THE NORTH- WEST CORNER OF SAID LOT 15; THENCE CONTINUING NORTHERLY TO A POINT THAT FALLS IN THE NORTH LINE OF SAID LOT 12, SAID POINT ALSO BEING 21.68 FEET EASTERLY OF THE NORTHWEST CORNER OF SAID LOT 12; THENCE WESTERLY A DISTANCE OF 21.68 FEET TO THE'SAID NORTHWEST CORNER OF LOT 12; THENCE SOUTHERLY ALONG THE WESTERLY LINES OF SAID LOTS 12 THROUGH 16 TO THE POINT OF BEGINNING. EXHIBIT "A" 23. ALL THOSE PORTIONS OF LOTS i AND 2 IN BLOCK 107 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUGHEASTERLY CORNER OF SAID LOT 1; THENCE WESTERLY ALONG THE SOUTH LINES OF SAID LOTS i AND 2 TO A POINT THAT FALLS 9.57 FEET WESTERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 2; THENCE NORTH- EASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 2, SAID POINT BEING 37.00 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 2; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE NORTHERLY LINE OF SAID LOT 1, SAID POINT BEING 21.68 FEET WESTERLY OF THE SOUTH- EASTERLY CORNER OF SAID LOT 1; THENCE EASTERLY A DISTANCE OF 21.68 FEET TO THE NORTHEASTERLY CORNER OF SAID LOT 1; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT I TO THE POINT OF BEGINNING. 24. ALL THOSE PORTIONS OF LOTS 25 AND 26 IN BLOCK 107 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 26; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF LOTS 26 AND 25 TO A POINT THAT FALLS 8.04 FEET WESTERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 25; THENCE NORTH- EASTERLY TO A POINT THAT FALLS IH THE EAST LINE OF SAID LOT 26, SAID POINT BEING 12.38 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 26; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 26 A DISTANCE OF 12.38 FEET TO THE POINT OF BEGINNING. 25. ALL THOSE PORTIONS OF LOTS 27 AND 28 IN BLOCK 107 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID LOT 27;-THENCE NORTHERLY A DISTANCE OF 12.38 FEET AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 27; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE EAST LINE OF SAID LOT 28, SAID POINT BEING 50.22 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 28 AS MEASURED ALONG THE EASTERLY LINE OF SAID LOT 28; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 28 TO THE SOUTHEASTERLY CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF LOTS 28 AND 27 TO THE POINT OF BEGINNING. 26. LOTS 31 AND 32 IN BLOCK 107, EXCEPT THAT PORTION OF LOT 31 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 31; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID LOT 31A DISTANCE OF 6.45 FEET TO A POINT; THENCE SOUTHWESTERLY TO A POINT THAT FALLS IN THE WESTERLY LINE OF SAID LOT 31, SAID POINT ALSO BEING 13.45 FEET SOUTHERLY FROM THE NORTHWEST CORNER OF SAID LOT 31 AS MEASURED ALONG THE WESTERLY LiNE OF SAID LOT 31; THENCE NORTHERLY ALONG THE SAID WESTERLY LINE OF LOT 31 TO THE POINT OF BEGINNING. 27. ALL THOSE PORTIONS OF LOTS 29 AND. 30 IN BLOCK 107 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID LOT 29; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LOT 29 A DISTANCE OF 50.22 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE 'EASTERLY LINE OF SAID LOT 30, SAID POINT ALSO BEING 13.45 FEET SOUTHERLY FROM THE EXHIBIT 'Am 27 CONTINUED NORTHEASTERLY CORNER OF SAID LOT 30 AS MEASURED ALONG THE EASTERLY LINE OF SAID LOT 30; THENCE SOUTHERLY ALONG THE SAID EASTERLY LINE OF SAID LOT 30 TO THE SOUTHEASTERLY CORNER OF SAID LOT 30; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF LOTS 30 AND 29 TO THE POINT OF BEGINNING. 29. ALL THOSE PORTIONS OF LOTS 1, 2 AND 3 IN BLOCK 125 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 1; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF LOTS 1, 2 AND 3 TO A POINT THAT FALLS 3.58 FEET WESTERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 3; THENCE NORTHEASTERLY TO A POINT THAT FALLS .IN THE EAST LINE OF SAID LOT 1, SAID POINT ALSO BEING 24.95 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 1; THENCE SOUTHERLY A DISTANCE OF 24.95 FEET TO THE POINT OF BEGINNING. 30. ALL THOSE PORTIONS OF LOTS 20 THROUGH 24 IN BLOCK 125 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID LOT 20; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 20 A DISTANCE OF 53.20 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 22, SAID POINT ALSO BEING 79.41 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 22; THENCE EASTERLY TO A POINT IN THE EASTERLY LINE OF SAID LOT 24, SAID POINT ALSO BEING 101.82 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 24; THENCE SOUTHERLY ALONG THE SAID EASTERLY LINE OF LOT 24 TO THE SOUTHEASTERLY CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 24, 23, 22, 21 AND 20 TO THE POINT OF BEGINNING. 31. ALL THOSE PORTIONS OF LOTS 17, 18 AND 19 IN BLOCK 125 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF LOT 17; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LOT 17, A DISTANCE OF 55.71 FEET TO A POINT; THENCE SOUTHEASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID 17, SAID POINT ALSO BEING 39.96 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 17; THENCE EASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 18, SAID POINT ALSO BEING 44.47 FEET NORTHERLY FROM THE SOUTHEASTERLY CORNER OF SAID LOT 18; THENCE EASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 19, SAID POINT ALSO BEING 53.20 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 19; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 19 A DISTANCE OF 53.20 FEET TO THE SOUTHEASTERLY CORNER THEREOF; THENCE WESTERLY TO THE POINT OF BEGINNING. EXHIBIT 32. ALL THOSE PORTIONS OF LOTS 25 THROUGH 32 IN BLOCK 125 WHICH LIE NORTHERLY OF A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 26.62 FEET MEASURED AT RIGHT ANGLES FROM THE CNETER LINE OF THE ATCHINSON, TOPEKA AND SANTA FE RAILWAY COMPANY WESTWARD MAIN TRACT. EXCEPT THOSE PORTIONS OF LOTS 25, 26 AND 27 LYING NORTHERLY OF THE NORTH LINE OF TRUXTUN AVENUE RELOCATED. 33. ALL THOSE PORTIONS OF LOTS i THROUGH 19 AND 28 THROUGH 32 IN BLOCK 126 AND THE ALLEY LYING WITHIN SAID BLOCK 126 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 32; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 32, 31 AND 30, SAID SOUTHERLY LINES ALSO BEING THE NORTHERLY LINE OF TRUXTUN AVENUE, A DISTANCE OF 55.73 FEET; THENCE NORTHERLY ALONG A LINE THAT FORMS A NORTHWESTERLY ANGLE OF 59o 52' 47" WITH SAID NORTHERLY LINE OF TRUXTUN AVENUE TO A POINT IN A LINE THAT IS PARALLEL WITH AND DISTANT SOUTHERLY 25.00 FEET MEASURED AT RIGHT ANGLES FROM-THE CENTER LINE OF THE ATCHINSON, TOPEKA AND SANTA FE RAILWAY COMPANY'S EASTWARD MAIN TRACT: THENCE EASTERLY ALONG SAID PARALLEL LINE TO A POINT IN THE EASTERLY LINE OF SAID BLOCK 126, SAID EASTERLY IINE ALSO BEING THE WESTERLY LINE OF BEALE STREET: THENCE SOUTHERLY ALONG SAID EASTERLY LINE OF BLOCK 126 TO THE POINT OF BEGINNING. TOGETHER WITH THOSE PORTIONS OF LOTS 1 THROUGH 19 AND THE ALLEY LYING WITHIN BLOCK 126 WHICH LIES NORTHERLY OF A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 26.62 FEET MEASURED AT RIGHT ANGLES FROM THE CENTER LINE OF SAID RAILWAY COMPANY'S WESTWARD MAIN TRACT, LAST SAID PARALLEL LINE BEING PARALLEL WITH AND DISTANT NORTHERLY 65.62 FEET MEASURED AT RIGHT ANGLES FROM FIRST SAID PARALLEL LINE. 34. ALL THAT PORTION OF LOT 16 IN BLOCK 127 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 16; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LOT 16, SAID WESTERLY LINE ALSO BEING THE'EASTERLY LINE OF BEALE STREET, A DISTANCE OF 15.97 FEET; THENCE EASTERLY PARALLEL WITH THE NORTHERLY LINE OF SAID LOT 16 TO A POINT IN THE SOUTHERLY LINE OF SAID LOT 16, SAID SOUTHERLY LINE ALSO BEING THE NORTHERLY LINE OF TRUXTUN AVENUE, THENCE WESTERLY ALONG SAID SOUTHERLY LINE TO THE POINT OF BEGINNING. 35. ALL THOSE PORTIONS OF LOTS 14 THROUGH 16 IN BLOCK 140 WHICH LIE NORTHERLY OF A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 26.62 FEET MEASURED AT RITHT ANGLES FROM THE CENTER LINE OF THE ATCHINSON, TOPEKA AND SANTA FE RAILWAY COMPANY'S WESTWARD MAIN TRACT. EXHZB]T "A" 36. ALL THOSE PORTIONS OF LOTS 1 THROUGH 6 IN BLOCK 141 WHICH LIE NORTHERLY OF A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 26.62 FEET MEASURED AT RIGHT ANGLES FROM THE CENTER LINE OF THE ATCHINSON, TOPEKA AND SANTA FE RAILWAY COMPANY'S WESTWARD MAIN TRACT. 3?. ALL THOSE PORTIONS OF LOTS 7 AND 8 IN BLOCK 141 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 7; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 7 AND 8 TO THE SOUTHWESTERLY CORNER OF SAID LOT 8; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 8 A DISTANCE OF 111.91 FEET TO A POINT; THENCE NORTHEASTERLY TO A PO!NT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 7, SAID POINT BEING 18.41 FEET SOUTHERLY FROM THE NORTHEASTERLY CORNER OF SAID LOT 7; THENCE SOUTHERLY ALONG THE SAID EASTERLY LINE OF SAID LOT & TO THE POINT OF BEGINNING. 38. ALL THOSE PORTIONS OF LOTS 9 THROUGH 12 IN BLOCK 141 DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE SOUTHERLY LINE OF THE NORTHERLY 80 FEET OF SAID LOT 12, SAID POINT ALSO BEING 7.28 FEET WESTERLY OF THE EASTERLY LINE OF SAID LOT 12 AS MEASURED ALONG THE SOUTHERLY ~INE OF THE NORTHERLY 80 FEET OF SAID LOT 12; THENCE SOUTH 89o 59 45 EAST AS MEASURED ALONG THE SOUTHERLY LINE OF THE NORTHERLY 80 FEET OF LOTS 12 AND 11 TO A POINT, SAID POINT BEING 15.00 FEET,EASTERLY OF THE WESTERLY LINE OF SAID LOT 11;'THENCE SOUTH 44o 59 55 EAST TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID 11, SAID POINT ALSO BEING 78.00 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 11; THENCE SOUTHERLY AS MEASURED ALONG SAID EASTERLY LINE OF LOT 11 TO THE 'SOUTHEASTERLY CORNER THEREOF; THENCE NORTHEASTERLY AS MEASURED ALONG THE SOUTHERLY LINES OF SAID LOTS 10 AND 9 TO THE SOUTHEASTERLY CORNER OF SAID LOT 9; THENCE NORTHERLY AS MEASURED ALONG THE EASTERLY LINE OF SAID LOT 9 A DISTANCE OF 111.91 FEET TO A POINT; THENCE SOUTHWESTERLY TO THE POINT OF BEGINNING. 39. ALL THOSE PORTIONS OF LOTS 11 THROUGH 16 IN BLOCK 141 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 11; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 11 THROUGH 16 TO THE SOUTH- WESTERLY CORNER OF SAID LOT 16, SAID SOUTHWESTERLY CORNER BEING THE NORTHERLY LINE OF TRUXTUN AVENUE AND THE INTERSECTION OF THE WESTERLY E X H ! B ! T 'A' 39 CONTINUED LINE OF SAID 8LOCK 141; THENCE NORTHERLY ALONG THE SAID WESTERLY LINE OF 8LOCK 141A DISTANCE OF 76.62 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE SOUTHERLY LINE OF THE NORTHERLY 80 FEET OF SAID LOT 12, SAID POINT BEING 7.28 FEET WESTERLY OF THE EASTERLY LINE OF SAID LOT 12; THENCE SOUTH 890 59' 45" EAST AS MEASURED ALONG THE SOUTHERLY LINE OF THE NORTHERLY 80 FEET OF SAID LOTS 12 AND 11A DISTANCE OF 22.28 FEET TO A POINT; THENCE SOUTH 44o 59' 55" EAST TO A POINT THAT FALLS I N THE EAST LINE OF SAID LOT 11; THENCE SOUTHERLY AS MEASURED ALONG THE SAID EAST LINE OF LOT 11A DISTANCE OF 78.08 FEET TO THE POINT OF BEGINNING. 40. THE SOUTH 50 FEET OF LOTS 1, 2 AND 3 IN BLOCK 142 LYING~ASOUTHEASTERLY OF THE~SOUTHEASTERLY LINE OF THE LAND DESCRIBED IN THE DEED TO THE CITY OF BAKERSFIELD, RECORDED MAY 9, 1962 IN BOOK 3490 PAGE 20 OFFICIAL RECORDS. 41. ALL THOSE PORTIONS OF LOTS 27 AND 28 IN BLOCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 28; THENCE WESTERLY ALONG THE SOUTHERLY LINES OF SAID LOTS 27 AND 28 TO THE SOUTHWESTERLY CORNER OF SAID LOT 27; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT, A DISTANCE OF 36.04 FEET TO A POINT; THENCE NORTH- EASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 28, SAID POINT BEING 44.86 FEET NORTHERLY FROM THE SOUTHEASTERLY CORNER OF SAID LOT 28; THENCE SOUTHERLY ALONG THE SAID EASTERLY LINE OF LOT 28 TO THE POINT OF BEGINNING. 42. ALL THAT PORTION OF LOT 25 IN BLOCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF LOT 25; THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LOT 25 A DISTANCE OF 27.23 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 25, SAID POINT BEING 31.63 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 25; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 25 TO THE SOUTHEASTERLY CORNER THEREOF; THENCE WESTERLY ALONG THE SOUTHERLY LINE OF SAID LOT 25 TO THE POINT OF BEGINNING. 43. ALL THAT PORTION OF LOT 26IN BLOCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEASTERLY CORNER OF SAID LOT 26; THENCE WESTERLY ALONG THE SOUGHERLY LINE OF SAID LOT 26 TO THE SOUTHWESTERLY CORNER THEREOF; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 26 A DISTANCE OF 31.63 FEET TO A POINT; THENCE NORTHEASTERLY TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 26, SAID POINT BEING 36.04 FEET NORTHERLY FROM THE SOUTHEASTERLY CORNER THEREOF; THENCE SOUTHERLY TO THE POINT OF BEGINNING. E X H T B ! T "A" 44. ALL THOSE PORTIONS OF LOTS 29 THROUGH 32 IN BLOCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUGHWESTERLY CORNER OF SAID LOT 29; THENCE NORTHERLY AS MEASURED ALONG THE WESTERLY LINE OF SAID LOT 29 A DISTANCE OF 44.86 FEET TO A POINT; THENCE NORTHEASTERLY ALONG A STRAIGHT LINE TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 32, SAID POINT BEING 62.51 FEET NORTHERLY FROM THE SOUTHEASTERLY CORNER OF SAID LOT 32; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 32 A DISTANCE OF 62.51 FEET TO THE SOUTHEASTERLY CORNER OF SAID LOT 32; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 32 A DISTANCE OF 62.51 FEET TO THE SOUTH- EASTERLY CORNER OF SAID LOT 32; THENCE SOUTHWESTERLY ALONG THE SOUTHERLY LINE OF SAID LOTS 32, 31, 30 AND 29 TO THE POINT OF BEGINNING. 45. ALL THOSE PORTIONS OF LOTS 18 THROUGH 24 IN BLOCK 142 DESCRIBED AS FOLLOWS: BEGINNING AT THEINTERSECTION OF THE NORTHERLY LINE OF TRUXTUN AVENUE AS SAID TRUXTUN AVENUE EXISTED AFTER THE ABANDOMENT AND CLOSING TO PUBLIC USE OF EUREKA ( FORMERLY KNOWN AS "E" ) STREET, BY FINAL RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD, ADOPTED APRIL 26, 1926, PURSUANT TO PROCEEDINGS THERETO HAD UNDER RESOLUTION OF INTENTION NO. 523, AND THE SOUTHERLY PROLONGATION OF THE EASTERLY LINE OF SAID LOT 18; THENCE SOUTHWESTERLY AS MEASURED ALONG THE NORTHERLY LINE OF TRUXTUN AVENUE AS SAID NORTHERLY LINE EXISTED AFTER THE SAID ABANDOMENT AND CLOSING OF EUREKA ( FORMERLY "E" ) STREET A DISTANCE OF 5.00 FEET TO A POINT; THENCE NORTHEASTERLY ALONG A STRAIGHT LINE TO A POINT THAT FALLS IN THE EASTERLY LINE OF SAID LOT 24, SAID POINT ALSO BEING 27.23 FEET NORTHERLY OF THE SOUTHEASTERLY CORNER OF SAID LOT 24; THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 24 A DISTANCE OF 27.23 FEET TO A POINT, SAID POINT ALSO FALLING IN THE NORTHERLY LINE OF TRUXTUN AVENUE; THENCE SOUTHWESTERLY ALONG THE NORTHERLY LINE OF TRUXTUN AVENUE AS SAID NORTHERLY LINE EXISTED AFTER THE SAID ABANDOMENT AND CLOSING OF EUREKA ( FORMERLY "E" ) STREET TO THE POINT OF BEGINNING. 46. ALL OF LOT 8 IN BLOCK 354 EXCEPT THE WEST 38 FEET THEREOF. 47. ALL OF LOT 1 IN BLOCK 354 EXCEPT THE WEST 38 FEET THEREOF. 48. ALL OF LOTS 4 AND 5 IN BLOCK 353 EXCEPT THE EAST 38 FEET THEREOF. 49. THE EASTERLY 28 FEET OF LOT 1 IN BLOCK 365 TOGETHER WITH THE 6.5 FEET OF VACATED ALLEY ADJOINING SAID LAND ON THE SOUTH LYING BETWEEN THE SOUTHERLY PROLONGATION OF THE EAST LINE OF SAID LOT 1 AND THE SOUTHERLY PROLONGATION OF THE WEST LINE OF SAID EASTERLY 28 FEET. EXHIBIT "A" 50. THE EASTERLY 28 FEET OF LOT 8 IN BLOCK 365 TOGETHER WITH THE 6.50 FEET OF THE VACATED ALLEY ADJOINING SAID LAND'ON THE NORTH LYING BETWEEN THE NORTHERLY PROLONGATION OF THE EAST LINE OF SAID LOT 8 AND THE NORTHERLY PROLONGATION OF THE WEST LINE OF SAID 28 FEET. 51. ALL THOSE PORTIONS OF LOTS 20, 21 AND 22 IN BLOCK 366 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 20; THENCE EASTERLY ALONG THE NORTH LINE OF SAID LOT 20 A DISTANCE OF 20.22 FEET TO A POINT; THENCE SOUTHWESTERLY TO A POINT THAT FALLS IN THE WEST LINE OF SAID LOT 22, SAID POINT ALSO BEING 15.00 FEET SOUTH OF THE NORTH- WEST CORNER OF SAID LOT 22; THENCE NORTHERLY ALONG THE WEST PROPERTY LINES TO THE POINT OF BEGINNING. 52-1. THE WESTERLY 28 FEET OF LOTS 13 THROUGH 18 IN BLOCK 366. 52-2. ALL THAT PORTION OF LOT 19 IN BLOCK 366 DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT L9; THENCE EASTERLY A DISTANCE OF 28.00 FEET AS MEASURED ALONG THE NORTH LINE OF SAID LOT 19 TO A POINT; THENCE SOUTHWESTERLY TO A POINT THAT FALLS IN THE SOUTH LINE OF SAID LOT 19, SAID POINT BEING 20.22 FEET EAST OF THE SOUTHWEST CORNER THEREOF; THENCE WESTERLY TO THE SOUTHWEST CORNER OF SAID LOT 19; THENCE NORTHERLY TO THE POINT OF BEGINNING. ACKNOWLEDGEMENTS STATE OF CALIFORNIA ) ) ss. COUNTY OF KERN ) On , 1988, before me, the undersigned, a Notary Public in and for said State, personally appeared WILLIAM CANESSA and JOE STEELE, personally known to me or proven to me to be on the basi~ of satisfactory evidence to be the President and Secretary, respectively, of the Greater Bakersfield Separation of Grade District, and acknowledged to me that such district executed the within instrument pursuant to a resolution of its Commission. WITNESS my hand and official seal. Notary Public in and for said State CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the interests in real property and the separation of grade projects referred to in the above quitclaim deed from the Greater Bakersfield Separation of Grade District to the City of Bakersfield and the responsibility to maintain such projects are hereby accepted by Resolution of the City Council of the City of Bakersfield adopted on the day of , 1988 and the City of Bakersfield con- sents to recordation thereof by its duly authorized officer. Dated this day of , 1988. Clerk City of Bakersfield 2 MEMORANDUM April 20, 1988 TO: Maurice M. Randall, Business Manager FROM: Stanley C. Grady, Community Development Coordinator SUBJECT: Proposed Use of CDBG Program Income and Entitlement for Capital Projects. I. REQUEST FOR CDBG FUNDS FOR CAPITAL PROJECTS. 1. City of Bakersfield Engineering Division. Lowell $40,000 Addition Curb and Gutter Project. Replace broken Curb with curb and gutter to correct drainage problems between 9th and 19th Streets and between "L" and "N" Streets. i° 2. City of Bakersfield Engineering Division. Curb and $73,000 gutter project between~ the north end of Houchin Road to Lacey Street and between Regent Street to South "H" Street. (Located in Census Tract 29). 3. City of Bakersfield Engineering Division. Phase II $150,000 of the East Bakersfield Curb and Gutter Installation Project. Phase II is the construction of new curbs and gutters on Quincy Street, Pacific Street and Oregon Street between.Haley and Williams Streets. (The north to south streets of the above described project area were completed during Phase I). Lake Street between Beale Avenue and Williams Street would also receive new curb and gutters as part of this project. (Located in Census Tracts 12 and 13). 4. Baker Street".Facade Program. This project is part $50,000 of the Baker Street Specific Plan and is designed to assist businesses and property owners with improvements to the exteriors of their buildings. Currently $30,000 has been expended for this project. 5. Homeless Shelter Contingency Projected costs are 488,090 $75,000 with 474,000 current revenues. The difference of 14,090 will come from savings from funds budgeted for sewer connections for seniors in newly annexed areas. The contingency is to cover unexpected costs that may occur during the construction of the project. Maurice Randall Page 2 Proposed Use of CDBG Program Income 6. Westminster Ceramics. These funds are being requested $75,000 by Economic Development and are for site preparation associated with this ongoing, project as per agreement number 84-32. 7. Enterprise Zone/Airpark Infrastructure. These funds $150,000 are being requested by Economic Development for this infrastructure improvements at the Airpark. A prior decision by the Department of HUD stated that the project wasn't eligible for Community Development funding. if the project has not changed significantly, the decision still applies. 8. Handicapped Curb Cuts. The Housing Authority is $7,845 requesting the installation of 13 handicapped curb cuts at the Oro Vista Housing Project near the southwest corner of East California Avenue and Lakeview Avenue. A request was made for CDBG funding for 8 curb cuts $4,800 at various locations identified in the attached memorandum dated January 26, 1988. 9. City of Bakersfield Parks Division. The Parks Division $50,000 is requesting funds to replace the restrooms at Jefferson Park at the southwest corner of Bernard Street and Beale Avenue. Total Requested $675,645 Total Program Income Available $382,125 Total Entitlement Available $100,000 Total Available $482,125 Difference $193,520 II. SOURCE OF PROGRAM INCOME Repayment of Loan Funds: Joseph Victori Winery $280,000 ($50,000 of the $330,000 repayment was appropriated for the Baker Street Facade program) Repayment of Deferred Loans $21,639 Miscellaneous $16,243 Repayment of Westminster Loan $94,243 Total $382,125 Maurice Randall Page 3 Proposed Use ~of CDBG Program Income III. RECOMMENDED USE OF PROGRAM INCOME AND ENTITLEMENT FOR CAPITAL PROJECTS. 1. City of Bakersfield Engineering Division. Lowell $40,000 Addition Curb and Gutter Project. Replace broken curb with curb and gutter to correct drainage problems between 9th and 19th Streets and between "L" and "N" Streets. 2. City of Bakersfield Engineering Division. Curb $73,000 and gutter project between the north end of Houchin Road to Lacey Street and between Regent Street to South "H" Street. (Located in Census Tract 29). 3. City of Bakersfield Engineering Division. Phase II $100,000 of the East Bakersfield Curb and Gutter Installation Project. Phase II is the construction of new curbs and gutters on Quincy Street, Pacific Street and Oregon Street between Haley and Williams Streets. (The north to south streets of the above described project area were completed during Phase I). Lake Street between Beale Avenue and Williams Street would also receive new curb and gutters as part of this project. (Located in Census Tracts 12 and 13). 4. Homeless Shelter Contingency. Projected costs are $60,000 488,090 with 474,000 current revenues. The difference of 14,090 will come from savings from funds budgeted for sewer connections for seniors in newly annexed areas. The contingency is to cover unexpected costs that may occur during the construction of the project. 5. Westminster Ceramics. These funds are being requested $59,000 Economic Development and are for site preparation associated with this ongoing project as per Agreement Number 84-32. 6. Enterprise Zone/Airpark Infrastructure. These funds $150,000 are being requested by Economic Development for this infractructure improvements at the Airpark. A prior decision by the Department of HUD stated that the project wasn't eligible for Community Development funding. If th~ project has not changed significantly, the decisio~ still applies. Total $482,125 SCG/jlm cc: Ken Pulskamp John Stinson M106 M[MDRANDUM ..,, March 21, 1988 TO: Maurice M. Randall,' Business Manager FROM: Stanley C. Crady, Community Development Coordinator SUBJECT: PROPOSED USE OF CDBC PROGRAM INCOME- REQUEST FOR CDBC FUNDS NOT BUDGETED FROM THE 1988/89 E5"fITLEMENT ~)ro~,ect 1. City of Bakersfield Engineering Division. Lowell Addition $40,000 Curb and Gutter Project. Replace broken curb with curb and gutter to correct drainage problems between 9th and 19th Streets' and between "L" and "N" Streets. 2. City of Bakersfield Engineering Division. Curb and ~utter $73,000 project between the north end of Bouchin Road to Lacey Street and between Regent Street to South "E" Street. (Located in Census Tract 29). 3. CiTy of Bakersfield Engineering Division. Phase II of the $150,000 East Bakersfield Curb and Gu~tem Installation Projec:. Phase II is the construction of new curbs and ~utters on Quincy Street, Pacific Street and Oregon Street between Raiey and Williams Streets. (The north to south streets of the above described project area were completed durin§ Phase I). Lake Street between Beale Avenue and Williams Stree: would also receive new curb and ~utters as part of this project. (Located in Census Tracts 12 and 13). 4. Baker Street Facade Program. This project is part of the $50,000 Baker Street Specific Plan and is designed to assist businesses and property o~-aers with improvements to the~ exteriors of their buildings. Currently $30,000 has been expen~ed for this project. ~ , 5. Bomeless Shelter Contingency Projected costs are 488,090 $75,000 t~ith 474,000 current revenues. The difference of 14,090 ~ill come from savings from. funds budgeted for sewer connections for seniors in newly annexed areas. The · contingency is to cover unexpected costs that may occur during the construction of the project. M~urice Randall Page 2 Proposed Use of CDBC Program Income 6. Westminster Ceramics. These funds are being requested by $75,000 Economic Development and are for site preparation associated with this ongoing project as per agreement number 84-32. 7. Enterprise Zone/Al:park Infrastructure. These funds are $150,000 ~ being requested by Economic Development for this infra- structure improvements at the Al:park. A prior decision by the Department of HUD stated that the project wasn't eligible for Co-~,unity Development funding, if the project has not changed significantly, the decision still applies. Total Requested $613,000 Total Available $432,125 Difference $180,875 · Source of Program Income Repayment of Loan Funds: Joseph Victori Winery $330,000 Repayment of Deferred Loans $21,639 Miscellaneous $16,243 'Repayment of Westminster Loan $94t243 To:al $432,125 REcOFi~ENDED USE OF PROGRAM INCOME 1. City of Bakersfield Engineering Division. Lowell Addition $~0,000 Curb and Gutter Project. Replace broken curb with curb and gutter to correct drainage problems between 9th and 19th Streets and be:ween "L" and "N" Streets. 2. City of Bakersfield Engineering Division. Curb and ~utter $73,000 project between the north end of Rouchin Road t0 Lacey Street and between Regent Street to South "H" Street. (Located in Census Tract 29). 3. City of Bakersfield Engineering Division. Phase II of the $150,000 East Bakersfield Curb and Gutter Installation Project.' Phase II is the cons:ruction of new curbs and gutters on Quincy Street, Pacific Street and Oregon Street between Raley and Williams Streets. (The north to south streets of the above described project area were completed'during Phase I). Haurice Randall Page 1 Proposed ~se of CDB~ Program lncome Lake Street between Beale Avenue and Williams Street would also receive new curb and gutters as part of this. project. (Located in Census Tracts 12 and 13). 4. Baker Street Facade Program. This project is part of the $50,000 Baker Street Specific Plan and is designed to assist businesses and property owners with improvements to the exteriors of their buildings. Currently $30,000 has been expended for this project. $. Momeless Shelter Contingency. Projected costs are 488,090 $60,000 with 474,000 current revenues. The difference of 14,090 will come from savings from funds budgeted for sewer connections for seniors in newly annexed areas. The contingency is to cover unexpected costs that may occur during the construction of the project. 6. Westminster Ceramics. These funds are being requested by $59,125 · Economic Development and are for site preparation associated with this ongoing project as per agreement number 84-32. Total $432,125 BUDGET AND FINANCE COMMITTEE REPORT NO. 22-88 April 13, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: DISPOSAL OF TWO VACANT FIRE STATIONS On March 16, 1988, the Council referred to the Budget and Finance Committee the disposal of two surplus fire stations at the locations of 4th and "L" Streets, and at East Brundage and King Streets. The stations have been vacant for approximately two years due to building condition and a location that is no longer central to the response district. Previous attempts to reuse or dispose of the properties have not been successful or have involved offers requiring an even heavier obligation on the part of the City. As time passed, they have become a maintenance problem and target of vandalism. As the properties' condition deteriorates, it reflects on the City's image. Staff has been directed to market the properties and bring a sale proposal back to the Committee. The Budget and Finance Committee recommends acceptance of this report and approval of its recommendations. Respectfully submitted, Councilmember Donald K. Ratty, Chair Councilmember James Henry Childs Councilmember Kevin McDermott RPT.80:jp PRELIMINARY EVALUATION City of Bakersfield Street Light System Prepared by: Russell L. Hamm Management Consultant P. O. Box 5783 Santa Rosa, CA 95402 ~' ...... , .... 707/523-4819 Authority For several years, discussions relating to street light acquisition, cost benefit, maintenance costs, and extended savings have been held with the City of Bakersfield staff. Those basic discussions in January, 1987 evolved into a proposal for services by Russell L. Hamm, Management Consultant. On August 19, 1987, the City of Bakersfield accepted that proposal which provides a Preliminary Evalua- tion of Bakersfields street light system. Russell L. Hamr~ Marsa gemerst Corssu 1 t arst P.O. Box 5783 Sarsta Rosa, CA. 95402 The purpose of this report is to provide a prelir~irsary evaluatiors of the City of Bakersfield's street light syster~ and a cost benefit arsalysis of owr~ership. ars arJalysis was ~ade of six ~onths of street light billir~g records for the City of Bakersfield from Pacific Gas & Electric billing records. For purposes of this report, the PG&E bills of February, 1988 will be used for all ar, alysis arid calculations. TMe Califorr~ia Public Utilities Co~issior~ decisior~s ~86-12-095 and ~86-1~-091 together with advice letters 1142-E arid 1133-E effective January 1~ 198~ and July 1~ 1987 are beir~g used as a basis.for all esti~ates arid projectior;s. These are the ~ost current street light rates and should ir~clude the trar~sfer of lights~ ur, der LS-1A schedule which have beer~ moved to the LS-1E. 1- The City~ of Bakersfield, according to PG&E bi liir~g recopds, has 6~702 street lights. Of that total 5056 are on the LS-1 schedule, "c~,?"~'~..1646 are being billed on the LS-2 schedule. The annual street light bill, if mor, thly billir, gs are projected for one year, would be $45, 529.96 x 12 = $546, 359.52. TABLE 1 Street Lights Mor, thly Cost Yearly Cos~ LS-1~ 5,056 $39,900.64 $478,807.68 LS-2 1~646 $ 5,629.32 $ 67,551.84 TOTAL 6, 702 $45~ 529.96 $546~ 359.'52 If the City where to acquire all street lights under the LS-1 schedule (5056), the r~onthly street light bill w¢,uld be reduced from $39,9[)[).64 or ar~nually $408807.68 to a ~nonthly bill of $17,291.52 or annually $207498.24. The City of Bakersfield, s annual street light bill would be $2?5,050.08 instead of $546,359.52 or a savings of $271,309.44, (see table 2>. TABLE 2 Current Bill 5,[)56 LS-1 Street lights $39,90D. 64 x 12 = $478,8[)7.68 1,646 LS-2 street lights $ 5,629.32 x 12 = $ 67,551.84 AnnuaI Savinqs $271,309.44 Ma int enance Maintenance of Two areas of ~aintenance will be sited. The day-to-day burn-outs and the associated problem, s and rela~ping. Day-to-day ~aintenance will require one electrician, a lift truck and sufficient ~aterial to repair burn-outs, day burners, photocells, starter boards, fuses, dig-ins, etc. for 6~702 street lights. Rela~ping i$ ongoing and can be covered with one electrician, lift truck, and sufficient la~ps and repair co~ponents to rela~p the entire syste~ every· four (4) years. Maintenance figures vary dependi~g on the size of a syste~. For basic calculation$~ a Iow ~aintenance figure of $1.[~D per light per ~onth can be used. A high ~aintenance figure of $2.0[) per light per ~onth ~ay be used. These figures are used for in-house ~aintenance by city staff. Those cities who contract for street light ~aintena~ce have produced figures which run between the syste~, trees, hills and distance between lights. For purposes of thi~ ~a]~i~ usi~g in-house staff and equip~ent, a figure of $1.50 will be used. Therefore the City of Bakersfield could expect to spend approxi~ately $1[),[~53.[)[~ ~onthly with ~an annual budget of $120,636.0[) (see table 3). -3- T~BLE_ 3_ 6,702 lights x $1.O0/mor, th = $ 6,702.00 x 12 = $ 80, 424. 6, ?02 lights x $1.50/r~or, th = SIC), 053.00 x 12 = $120,636. 6, ?02 lights x $2.00/month = $13,404.0C) x 12 = $160,848. Mair~ter, ance costs car, beco~e extravagar, t if ~ot mair, tained and ~ar~aged closely. City staff should establish work standards, buy appropriate equip~ent~ regulate ~aterials acquisition and general close ~or~itorir~g of costs. Day-to-day ~ainter~ance and reportir~g of lights is very important when a city cor, siders its own ~alr~ter~ar~Ce. A variety of reportir~g ~ethods car, be used. Persormei may be assigr~ed to night patrol periodically to log burn-outs. Citizen con, plaints are used as a mirdmum reportir~g ~ethod. An .'. appropriate reporting syste~, tailored to the City of Bakersfield ' should be used. A co~Puter should be used to track complair~ts, ~i.~.~. repairs, problem, s, work schedules and costs. Rela~pir~g should be ~ ?~ established to take place year 'rour~d. By dividing the system into ~ four general service areas and relamping every four (4> years or ~'" the period used for the life expected of a street light la~p. · . ~. In the case of the City of Bakersfield, there would be four (4) service areas with 1,676 lights in each area: 1,676 divided by 52 weeks would be 32 to be char~ged out each week. Further refir, e~er~t of this work standard shows that ar, electriciar, ~ust char~ge six " plus (+) street lights per day. While five lamps relamped per day seems like a miniature work st~r~dard~ it allows for other assigr~mer, ts, sick leave, anr~ual leave, etc. ~cqui si t i or, Acquisitior~ of ir~vestor-owr~ed utilities is a legal process allowable by law arid franchise ordinar~ce withir, each city ar, d county ir~ California. Acquisitior, of street lights has been takir~g place sir, ce 1980 arid before, arid now more than 18 cities and cour~ties ir, California have acquired their system, s. Ar~ equal r~umber of local entities have used staff expertise, but ~ost entities cor, sider the use of outside cor, sultar, ts plus staff to be most ber~eficial approach to acquisitior,. Ir~ the case of Bakersfield, based c,r~ ar~ annual cost savir~gs of $271,203.84, it would appear to be a fiscally sound decision to pursue this project. -4- While ar, exact figure is r, ot kr, owrs, it is estimated PG&E will be askir, g approximately $2,000,000 " Reproductic, rs cost New Less Depreciation" (RCNLD) for 5,056 LS-1 street lights. They will be ask ir~g' at, other $ 25,000 to $35,000 to do ar~ eva luatior~. The evaluation cost would be ar, up-fror, t cost. It has beer, most cities positic, ns that this evaluatior, cost would be paid or~ly that city or cour~ty were r~ot to acquire their street light system. Ir~ Marir, County acquisitior~, PG&E's askir, g price was $4.6 millior~ RCNLD. The cor~demr~atior~ proceedings verified the system to be worth $897,000. Therefore, Bakersfield could expect a price or~ the low end of approximately $400,000. Such a price would be cor~tir, ger,t or~ cc~r~demnatior~ arid a superior court judge' s favorable decision and an indepth ecor~omic appraisal. Ir~ order to more closely evaluate savings, Table 4 was developed. TABL~ 4 Current Ar, r, ual Bill LS-1 $546,253.92 -.; ~ ~ Proposed Anr~ual Bi ll LS-2 $275,050.08 Gross Savir~gs ~271, 203. 84 Ma i r,t er~ance $120, 636. Net Savir, gs $15C), 567.84 TABLE 5 Payback Periods (estimates) ..City Middle PG&E Acquisitior, Costs $400,000 $1,200,000 $2,000,000 2.66 years 7.97 years 13.28 years Wher, acquisitior, is cot, sidereal, ars estimate of payback period should be projected (see table 5). Figures used ir, Tables 4 ar, d 5 are projectior, s arid car, vary dra~atically. Both tables we're produced to show payback periods scheme ar, d expected savirsg. At such time as the City of Bakersfield becomes seriously irsvolved irs acquisitior,, a more ir~depth ar~alysis usir, g exact figures fr. orn PG&E ar, d ar, ecor, or~ic ar~alysis will be required. -5- Cor, sultar, t arid _Leqal This report cor~tair, s a prelimir~ary overview of the street light acquisitior, process and does r, ot discuss cor, sultar~t/legal fees, time experier, oe, ar, d expertise to provide the spectrum of disoiplir, es required ir~ a project of this r, ature. A proposal outlir, ir, g such services will be prepared whet, the City decides to ;~ove ahead. Ir~ cor, clusior~, it appears the City of Bakersfield is ir, vestigatir,_q a fiscally soured project, that of buyir, g the street light system fro~ PG&E. Without a doubt, a gross savings of $271, 20~. 84 is wo~?th pursuir, g and is very possible based or, the history of cities and cour, ties. The $271,203.84 figure represer, ts a.~ 50% reductior, over the currer, t street light billir, g. After review of this report is complete ar, d questior, s have beer, resolved, a conferer, ce ir, your facilities would be necessary to plar~ for the City of Bakersfield, s street light acquisition. RUSSELL L. HAMM Management Consultant P. O. Box 5783 Santa Rosa, California 95402 707/523-4819 CITY OF BAKERSFIELD STREET LIGHT ACQUISITION PROPOSAL The following is a proposal for consultant and legal services required to acquire approximately 5,056 street lights from Pacific Gas & Electric for the City of Bakersfield. It would be necessary to initially establish an acquisition committee comprised of personnel from: City Attorney's Office City Manager's Office Public Works Department General Services Management Consultant During the project, other personnel will be brought in as required. From the City of Bakersfield, both finance and maintenance personnel will eventually be required to assist in preparing for acquisition. As project consultant, I will eventually require the services of Reed V. Schmidt, Economist, the law firm of McCracken, Byers & Martin, attorneys. With the 'above committee in place, the recommended project scenario and estimate~of services are described below: Phase I (4 to 8 months) -Consultant brief on committee responsibilities. -Review of all billing records, detail list, etc. -Prepare report to City Council. -Prepare major acquisition report to City Attorney. -Review maintenance practices for upgrading. -Report to City Council. -Notice to proceed to Phase II. February 18, 1988 City of Bakersfield Street Light Acquisition Proposal Page Two Phase II (2 to 4 months) -Open discussions with utility. -Negotiations with utility by attorney. -Report to City Council. -Notice to proceed to Phase III. Phase III (6 to 12 months) -Resolution of necessity and public need. -Legal requirements of eminent domain. .-Prepare for trial. -Trial. -Acquisition. -City to maintain system. The cost of services for this project would be: a. Project management, meetings, presentations, negotiations, engineering evaluations, and inventory ($75/hour) $ 35,000 b. Legal presentation through judgment, excluding appeal ($125/hour) 60,000 c. Economist, expert witness, cost benefit analysis evaluations ($85/hour) 35,000 Total cost of project not to exceed: $130,000 (Note: The above cost does not include any appeal of judgment.) The total time involved could be 18 months or more. Nowever, once con- demnation and immediate possession has occurred (approximately four to eight months), the City of Bakersfield could pay the lower LS-2 rate and begin to realize immediate savings. February 18, 1988 BACKGROUND EXPERIENCE OF PROJECT PARTICIPANTS Russell.Hamm - Management Consultant in street light acquisition matters. He is consulting with several cities in street light acquisition, both in California and Florida. In 1982, as Deputy Director of Field Services, he acquired 6,200 street lights for the City of Santa Rosa. He provides expertise in acqui'sition project management, engineering evaluation, system maintenance, expert witness, council presentations and utility negotiations. He also is Executive Director for the California City/ County Street Light Association. Michael McCracken is an attorney with his own law firm and provides legal assistance in land use matters, eminent domain, electric rates and re- lated matters. His firm provided legal representation in the Marin County joint powers street light acquisition. That overwhelming victory has now become the pattern for eminent domain projects throughout the State. In addition, his legal knowledge has guided the California City/ County Street Light. Association for five years with rate reduction now totaling $27 million. Reed Schmidt has a master degree in economics. Ne is currently retained by the California City/County Street Light Association as a rates specialist and expert witness before the California Public Utilities Commission. Reed prepared and successfully presented the "Capitalization of Earnings" valu- ation of the Marin County joint powers street light condemnation. He has appeared as a rates specialist and expert witness in other states and is considered an expert in his field. ii CHESTER & SCHMIDT ¢ ' onsultants . :i'!~!-TheJeffersonB~l~ng · 1825 San Pablo Avenue, S~202 · Oa~an~CA 94612 * (415)451-1087 .'-:./22, November 1988 Larry' JamisOn Chairman, Executive Committee California City-County S~ree~ Ligh~ Association c/o City of Bakersfield 9eparkmen~ of Public Works 4101Trux~u~ Avenue Bakersfield, California 93309 PACIFI~ ~S AN9 ELeCTrIC CO,ANY 1990 TEST TEA~ GENEEAL ~ATE CASE ~OTIC~ OF INTF~rlO~ 88-10-010 ~ear Larry~ In October 1988 Pacific Gas & '~lec~ric (P~) ~end~red ~i~h ~h~ California Public U~ili~ies Co~issio~ (CPUC) i~s ~o~ice of I~en~ion (~OI) application for au~horizakion ~o increase ra~es and charges ~or electric and gas services o~ 1 January 1990. I expec~ P~'s filing of ~he application in December 1988. In ~he draf~ application accompanying ~he NOI, PG&E seeks ~o increase ra~es for ~he Electric 9eparka~ by approximately $It5 ~illio~, or 7.5~, over prese~ ra~e levels. The ~eral ~a~e Case (~C) for T~s~ lear (~) 1990 ~ould address PG&E's costs of doing business excep~ for ~he costs associated ~i~h fuel, purchased po~r, a~d ~he ~iablo Ca~yo~ ~uclear Po~r Pla~. ~e8ardin8 ~he s~ree~ light' cuskomer class, PG&E is requesting an revenue 'increase of approxiaa~ely $1.3 ~illio~, or 3.2~. However, co~pari~g proposed ra~es~ ~hich would become effective 1 January 1990, wi~h curren~ ra~es reveals an e~irely dif~ere~ picture: s~ree~ lights ra~es would change froa -t~'~o '+20~. However, aos~ LS-1 and LS-2 ra~es ~ould increase around 15~-~o 20~. The a~ached ~able illustrates for a 70-~a~ High Pressure Sodi~ Vapor (HPSV) l~p, ~he mos~ co,on in PG&E's system, ~he rake changes proposed by PG&E in ~he 1990 G~C. You can see ~hak khe increases for a 70-Wa~ HPSV l~p range froa -i.~ for ra~e class LS-19 ~o +32.7~ ~or class LS-IF.1. PG&~ does nok explain tn any of khe exhibiks accompanying ~he dra~ appiica~io~ why revenue froa ~he overall s~ree~ ligh~ class would i~crease by only 3.2~--bu~ proposed ra~es would change from -t.t~ ~o +32.7~. This discrepancy should be sufficien~ reason for CAL-SLA ko question propose8 ra~e increases. I have reviewed khe drafk exhibits on cost-of-service and ra~e design and Concen~raked on cos~ and rake information rela~ed ~o skree~ lighking. Based on ~his review, I have idenkified issues khak I believe ~ould be o~ co~cern ko C~L-S~. The remainder of ~his le~er discusses ~hese issues. i L~rry J~mison November 1988 Revenue Allocation PG&E starts its rate design by allocating a ~portion of the total electric revenue requirement of $5,918 million to the various customer groups. PG&E proposes to allocate $40.4 million to the street light class, which is $1.3 million or 3.2% more than the current revenues of $39.1 million. However, PG&E's cost-of-service analysis shows that if street light rates were based strictly on marginal costs, revenue at 1 January 1990rates should decrease to $35.8 million, or -8.4%. An important issue for street lighting is therefore revenue allocation--how much of the revenue requirement should be allocated to the street light customer class. Energy Charge Revenue allocation is the single most important determinant of the street- light energy charge, which is the same for all lamps. In the NOI, the utility is requesting basically no change in the energy charge for street lighting. The current energy charge is $0.07658 per kWh, and PG&E is proposing $0.07662. The "no change" results from PG&E setting a floor on any rate changes by not allowing any decrease from present revenues--even if a customer class should receive a decrease under the Equal Percentage of Marginal Cost (EPMC) revenue allocation that PG&E is recommending and using in the rate case. Under the EPMC allocation, the street-light customer class should receive a 8.4% decrease. Thus, CAL-SLA should argue for this decrease and advocate that the street-light energy charge be based on marginal costs, which is consistent with CPUC policy of having all rates based on marginal costs. Basing street- light energy rates' on marginal costs, Iestimate the energy charge should be around $0.06 per kWh instead of the proposed $0.07662. The energy charge for street lighting is affected by three components: (1) the costs to generate, transmit and distribute electric energy, (2) the time of energy usage, and (3) the monthly kWh estimates. Energy costs. Following CPUC's policy and direction, PG&E does calculate energy costs using marginal costs, an economic concept involving the change in total costs due to a small change in output, for example, producing another kilowatt-hour (kWh) of electricity. The issue comes down to 'the accuracy of marginal costs developed by PG&E for street lighting. I plan to analyze and, maybe, develop my own estimates of marginal costs. Time-of-Use. Marginal-cost analysis takes into account when Street lights use ~electricity, that-is, the time of use (TOU). Prior rate cases have not fully researched or analyzed the TOU issue for street lights, and there is no assurance that current street light rates accurately reflect their off-peak electric usage. I suggest that we research and analyze street li'ght's TOU and make sure that street light's off-peak usage is incorporated in any cost analysis and rate design. .Larry Jamison · page22 November3 1988 KWH Estimates. Another issue that has been raised in prior rate cases and appears in PG&E's current GRC is energy consumption by individual lamp-types: how much energy in terms of kWh do various street lights use. The monthly kWh estimates have a significant impact on street light rates, especially LS-2 rates. I suggest that we examine current manufacturers' specifications for HPSV and LPSV lamps and ballasts and determine if there is any need to reduce PG&E's estimates of monthly kWh. Customer Charge Besides the energy charge, the other charge that makes up LS-2 rates is the customer charge. This charge is to recover the costs to bill and account for street light customers and to give the street light access to PG&E's electric distribution system. In the draft application PG&E is claiming that marginal customer costs associated with a new street light customer have increased from the current yearly level of $8.88 to $62.25! PG&E requests to collect these increased customer costs through its proposed rates. Research and analysis is needed in what exactly PG&E means by customer costs, how the utility estimated the costs, and how it translates the cost data into rates. This alleged customer cost increase is probably the major reason why proposed street light rates increase so·much, making this a major issue in the 1990 GRC. Maintenance Charges Based on my quick comparison of the cost-of-service study adopted by the CPUC in PG&E's prior 1987 GRC with street light rates proposed in the NOI,·I have ascertained that PG&E is increasing its maintenance charges for LS-1, LS-2B and LS-2C lights by around 30% to 75%. In the prior GRC the CPUC authorized LS-1, LS-2B, and LS-2C street light rates to recover dollar-for-dollar PG&E's costs to maintain these street lights. It is inconceivable that PG&E's maintenance costs are expected to increase 30% to 75% from 1987. Maintenance costs and charges for TY 1990 appear to be an issue that we need to examine. Facilities Rental Charges ~The most important part of LS-1 rates is the facilities rental charge. The facilities rental charge recovers PG&E's investment costs of depreciation, income and property taxes, insurance, and profit associated with street light facilities owned by PG&E. The'bulk of the cost-of service Study in the 1987 GRC dealt with these capital costs associated with the end-use facilities, which include luminaires, poles, wiring, etc. owned by PG&E. We will want to review and analyze PG&E's cost-of-service study updated for the 1990 GRC and verify the accuracy of PG&E's facilities and investment costs. (In the draft exhibit on rate design, PG&E states that it determined the revenue requirement for the street light facilities using their original cost less depreciation '"-Larry Jamison :~22 November 1988 :i page 4 '' ~(OCLD) and then allocated the revenue requirement to each lamp-type on the basis of its'replacement cost new (RCN). PG&E's approach is the same method adopted by. the CPUC in the 1987 GRC decision.) Other Issues Conspicuous by its absence is a pole contact fee. PG&E does not mention in the NOI a charge for customer-owned lights attached to PG&E distribution poles. I do not know if the pole contact charge will be an issue in the GRC. A minor issue, but a titillating one in the prior GRC, is pole painting. In the 1990 GRC, PG&E proposes to increase its charge for pole painting froTM $0.62 per pole per month to $0.82. CAL-SLA may wish to analyze costs to paint poles and recommend a different monthly charge. As a housekeeping item, PG&E proposes to eliminate HPSV service under Schedule LS-1B and transfer existing HPSV lights to Schedule LS-1A, This elimination and transfer will have no affect on customers' bills, because HPSV rates under Schedule LS-1B and LS-1A are exactly the same. In summary, I see the following issues that CAL-SLA should consider examining: 1. Revenue allocation: a. How much of the total revenue requirement should be allocated to the street light customer group, and b. What allocation method should be employed. 2. Base the energy charge on: a. Marginal costs to generate, transmit, and distribute elec- tricity to the lamps; b. Off-peak energY usage by street lights -- time-of-use; and c. Accurate monthly kWh estimates for HPSV and LPSV lamps 3. Customer-related costs and charges 4. Maintenance costs and charges 5. Facilities rental charges I suggest that we meet with Dave Byers and Russ Hamm, possibly in Dave's offices' in Belmont, to discuss my letter and identify and rank the street light issues that CAL-SLA wishes Dave and me to pursue. At that meeting we can also outline possible approaches to the issues and list what results we can expect from any analysis and research. Larry Jamison 22 November 1988 page 5 I will be calling you next week to arrange the meeting and answer any preliminary questions that you may have about PG&E's upcoming general rate case. Yours truly,. CHESTER AND SCHMIDT CONSULTANTS Reed V. Schmidt Principal RVS: scq Attachment pc. David Byers Russell L. Hamm (30MPARISON OF PRESENT RATES WITH PROPOSED PATES '70--WKI'I~ 1{32{]i{ PRESSURE SODIUM VAPOR (HPSV) I~MP PACIFIC GAS & EI.EcrRIC COMP~ 1990 TEST YEaR GENERAL RATE CASE NOTICE OF ~ON 88-10-010 Rate 17 May 1988 1 Jan. 1990 Increase Percent Class Present Proposed (pecrease) Change Schedule LS-1 (Utility-Owned Street Lights) ~7oo A $ 6.296 $ 7.462 $ 1.166 18.5% B 6.296 * C 5.213 6.211 0.998 19.1% D 11.261 10.770 (0.491) (4.4)% D.1 7.665 9.051 1.386 18.1% E 10.459 10.845 0.386 3.7% E.1 7.665 9.076 1.411 18.4% F 9.250 11.495 2.245 24.3% F.1 7.664 10.173 2.509 32.7% Schedule LS-2 (Customer-Owned Street Lights) A $ 2.585 $ 2.900 $ 0.315 12.2% B 3.071 3.710 0.639 20,8% C 3.572 4.215 0.643 18.0% * PG&E proposes to eliminate LS-1B rates for HPSV lamps and transfer them to LS-1A. There will be no effect on street light customers, since present LS-1B rates equal LS-1A rates. PRELIMINARY EVALUATION City of Bakersfield Street Light System Prepared by: Russell L. Hamm Management Consultant P.O. Box 5783 October, 1987 Santa Rosa, CA 95402 Revised March, 1989 707/523-4819 AuthOrity For several years, discussions relating to street light acquisition, co_st benefit, maintenance costs, and extended savings have been held with the City of Bakersfield staff. Those basic discussions in January, 1987 evolved into a proposal for services by Russell L. Hamm, 'Management Consultant. On August 19, 1987, the .City of Bakersfield' accepted that proposal which provides a Preliminary Evaluation of Bakersfield's street light system. Russell L. Hamm Management Consultant P.O. Box 5783 Santa Rosa, CA 95402 The purpose of this report is to provide a preliminary evaluation of the CitY of Bakersfield's street light system and a cost benefit analysis of ownership. An analysis was made of six months of street light billing records for the City of Bakersfield from Pacific Gas & Electric billing records. For purposes of this report, the PG&E bills of January, 1989 will be used for all analysis and calculations. The California Public Utilities Commission decisions #86-12-095 and #86-12-091 togeth'er with advice letters 1142-E and 1133-E effective May 17, 1988 are being used as a basis for all estimates and projections. These are the most current street light rates and should include the transfer of lights under the LS-IA schedule which have been moved to the LS-iE.i*, LS-1F.i* and LS-1D.i* schedule. Evaluation The City of Bakersfield, according to PG&E billing records, has 6,980 street lights. Of that total, 5,135 are on the LS-1 schedule, 1,845 are 'being billed on the LS-2 schedule. The annual street light bill, if monthly billings are projected for one year, would be $50,385.00 x 12 = $604,620.00. TABLE 1 Street Lights Monthly Cost Annual Cost LS-1 5,135 $41,360.00 $496,320.00 LS-2 1,845 , + 9,025.00 +108,500.00 6,980 $50,385.00 $604,620.00 If the City were to acquire all lights under the LS-1 schedule (5,135) the monthly street light bill would be reduced from $41,360.00 or annually $496,320.00 to a monthly bill of $14,807.00 or annually $177,684. Table 2 Current Billin~ 5,135 LS-1 street lights $41,360.00 x 12 = $496,320.00 1,845 LS-2 street lights $ 9,025.00 x 12 = $108,300.00 $604,620.00 P. ro~osed Billin~ 6,980 LS-2 street lights $23,832.00 x 12 = $285,984.00 Annual Savin~s $318,636.00 Maintenance Maintenance of a street light system is critical to its longevity. Two areas of maintenance will be sited. The day-to- day burn-outs and the associated problems and relamping. Day-to- day maintenance will require one electrician, a lift truck and sufficient material to repair burn-outs, day burners, photocells, starter boards, fuses, dig-ins, etc., for 6,980 street lights. Relamping is ongoing and can be covered with one electrician, lift truck and sufficient lamps and repair components to relamp the entire system every four years. Maintenance figures vary 3 depending on the size of a system. For basic calculations, a low maintenance figure of $1.00 per light per month could be used,~ or a high maintenance figure of $2.00 per light per month may be used. These figures are used for in-house maintenance by city staff. Those cities who contract for street light maintenance have produced figures which run between $2.00 and $3.00 depending, once again, on the size of their system, trees, hills and distance between lights. For purposes of this analys~s, using in-house staff and equipment, a midrange figure of -$1.50 Will be used. Therefore, the City of Bakersfield could expect to spend approximately $10,470.00 mOnthly with an annual budget of $125~640.00 (see Table 3). TABLE 3 6,980 lights x $1.00/month = $ 6,980.00 x 12 = $ 83,760.00 6,980 lights x $1.50/month = $10,470.00 x 12 = $125,640.00 6,980 lights x $2.00/month = $13,960.00 x 12 = $167,520.00 Maintenance costs can become extravagant if the system is not maintained and managed closely. City staff should establish work standards, purchase appropriate equipment, regulate materials acquisition and general close monitoring of costs. Day-to-day maintenance and reporting of lights is important when a city considers its own maintenance. A variety of reporting methods can be used. Personnel may be assigned to a night patrol periodically to log burn-outs. The Police Department often logs and reports lights out. Citizen complaints are used as a minimum reporting method, an appropriate reporting system, tailored to the City of Bakersfield should be used. A computer should be used to track'complaints, repairs, problems, work schedules and costs. Relamping should be established to take place year round. By dividing the system into four general service areas and relamping one area each year, the system will be relamped every four years or the period used for the life expectancy of a street light lamp. In the case of the City of Bakersfield, there would 'be four service areas with 1,745 lights in each area; 1,745 divided by 52 weeks would be 34 to be changed out each week. Further refinement of this work standard shows that an electrician must change five street lights per day. While five lamps relamped per day seems like a minimum work standard, it allows for other assignments, sick leave, annual leave, etc. Acquisition Acquisition of investor-owned utilities is a legal process allowable by law and franchise ordinance within each city and coun.ty in California. Acquisition of street lights has been taking place since 1980 and before, and now more than 18 cities and counties in California have acquired their systems. An equal number of local entities are considering~ or have begun the acquisition process. A few entities have used staff expertise, but most entities consider the use of outside consultants pl6s staff to be the most beneficial approach to acquisition. In the case of Bakersfield, based on an annual cost savings of $318,636.00 it would appear to be a fiscally sound decision to ~ursue this project. While an exact figure is not known, it is estimated PG&E will be asking approximately $2,572,635 "Reproduction Cost New Less Depreciation" (RCNLD) for 5,135 LS-1 street lights. They will be possibly asking another $25,000 to $35,000 to do an evaluation. The evaluation cost would be an up-front cost. It has been most cities position that this evaluation cost would be paid only if that city or county were not to acquire their street light system. In the Marin County acquisition, PG&E's asking price was $4.6 million (RCNLD). The condemnation proceedings verified the system to be worth $897,000. Therefore, Bakersfield could expect a price on the low end of approximately $400,000. Such a price would be contingent on condemnation and a superior court judge's favorable decision based on an indepth economic appraisal. In order to more closely evaluate savings, Table 4 was developed. TABLE 4 Current Annual Bill $604,620.00 Proposed Annual Bill, LS-2 285,984.00 Gross Savings $318,636.00 Maintenance $125,640.00 Net Savings $192,996.00 TABLE 5 Payback Periods (estimates) Cit~ Middle PG&E Acquisition Costs $400,000 $1,200,000 $2,572,635 2 years 6.2 years 13.3 years When acquisition is considered, an estimate of payback period should be projected (see Table 5). Figures used in Tables 4 and 5 are projections and can vary dramatically. Both tables were produced to show payback periods scheme and expected savings. At such time as the City of Bakersfield becomes seriously involved in acquisition, a more indepth analysis using exact figures from PG&E and an economic analysis will be required. Consultant and Legal This report contains a preliminary overview of the street light acquisition process and does not discuss consultant/legal fees, time, experience, and expertise to provide the spectrum of disciplines required in a project of this nature. A proposal outlining such' services will be prepared when the City decides to move ahead. In conclusion, it appears the City of Bakersfield is investigating a fiscally sound project, that of buying the street light system from PG&E. Without a doubt, a gross savings of $318,636.00 is worth pursuing and is very possible based on the history of other cities and counties. The $318,636.00 figures represents a 52% reduction over the current street light billing. After review of this report is complete and questions have been resolved, a conference in your facilities would be necessary to plan for the City of Bakersfield's street light acquisition. Addendum The California Street Light Association is currently involved in 7 street light rate hearings before the California Public Utilities Commission, results of these hearings become effective January 1, 1990. Pacific Gas and Electric is proposing substantial changes in current'rates. The C.P.U.C. has asked that all rate paying classes be based on a "true cost of service". Since street lights have been tilted to discourage acquisition, the porposed new rates appear to be more in line but with major changes. The C.P.U.C. staff is asking for greater changes as is Cal-S.L.A. However, the current proposal shows the LS-1 schedule moving up by approximately 12% with the LS-2A schedule being reduced by 8%. For Bakersfield this means that as of January 1, 1990 their street light bill will appear as follows: Current LS-1 annual billing Proposed LS-1 annual billing $496,320.00 $555,878.00 Current LS-2 billing Proposed LS-2 bil,ling $108,300.00 $ 99,636.00 Total $604,620.00 New Total $655,514.00 By subtracting current from proposed Bakersfield would be receiving a $50,894 annual increase each year for the next three years. Yet another way to look at this increase is that it would also represent greater savings if the City were to acquire the system. Table 2 indicates that the City's annual bill for street lights would be, based on current rate schedules, $285,984.00 if the 8 City owned the system. By reducing this number by 8%, the bill drops to $263,106.00. The annual gross savings, by ownership, increases to $341,514.00. In summary, if the City is to make the decision to acquire the street light system it would appear their timing is correct if it is accomplished this year. If not it appears their billing will increase by some $50,894.00 above current street light billing of $604,620.00. 9 MEMORANDUM March 21, 1988 TO: Budget and Finance Committee Arthur J. Saalfield ~ FROM: CityAttorney --~/c'"~_ 'SUBJECT: Budgeting for 1) Additional Litigation Attorney 2) Additional Secretary (Litigation) 3) Proposed 5% Salary Differential for Litigation Secretary Reclassification The above-matters were referred to the Budget and Finance Committee in implementation of the recommendations set forth in Litigation Committee Report 1'88, accepted by the Council at its meeting of March 16, 1988. The Committee was directed to report back to the Council on this matter within one month. I hope that, with the information in. this memorandum, the Committee will be comfortable with reporting back to the Council on March 30, 1988, the date.~of the Committee's and the Council's next meeting. Should you have questions about information con- tained, or not contained, in this memorandum, please contact me prior to Wednesday, March 30, 1988, and I will try to have answers to your questions ready by the time we meet. The salary and benefits costs to implement the proposals for the three positions total $10,903 for the period of May 15 through ~!. June 30, ~1988. The breakdown is. as follows: Step 1 1) New Assistant City Attorney $ 7,593.00 Litigation position 2) New Litigation Secretary position $ 3,044.00 3) Reclassification of Secretary II to Litigation Secty. (5% salary $ 266.00 adjustment to be competitive in the local legal market) Total salary & benefit costs -- $ 10,903.00 Memo to Budget & Finance Committee March 21, 1988 Page 2 Related equipment costs are as follows: Attorney (desk, chair, telephone, $ 2,780.00 bookcase, etc.) Secretary (CPT, telephone, desk, $ 3,475.00 chair, etc.) Total equipment costs -- $ 6,255.00 Total salary & benefit costs.-- 10,903.00 Total costs to fund the positions from 5/15 through 6/30/88 -- $17,158.00 For fiscal year 1988-89, such costs are as follows: Attorney position $65,805.00 New Litigation Secretary position 26,381.00 Reclassification of Secty. II 2,307.00 to Litigation Secretary Total -- $94,493.00 By account transfers using surpluses in different expenditure .~accounts, the Office can cover the costs of implementing the three ~changes for the.final"three pay'periods this year. (It is likely that we will not be able to fill.the attorney position by June 30th; however, if we can, we do have the necessary funds.) Our proposed budget for 1988-89 includes the annual salary and benefit costs for the three changes. Additional organizational changes in the City Attorney's Office will be presented to the Council in the near future. However, the impact of AB 3300 requires action now on the Litigation Attorney and Litigation Secretary matters. A note on the scope of committee review: -- The referrals to committee from Litigation Committee Report No. 1-88 were carefully worded to avoid the Brown Act problems which would result from consideration of a single issue outside of a public meeting by a quorum or more of the Council. Memo to Budget & Finance Committee' March '21, 1988 · Page 3 -- The Litigation Committee, consistent with City Manager's' Report No. 2-88, was asked to review and has reported to the Council on the staffing issue. -- The classification/reclassification issues have been referred to the Personnel Committee. -- The budget and financing issue~ have been referred to the Budget and Finance Committee. This is not to say that either the Personnel Committee or the Budget and Finance Committee are precluded from discussing the merits of the proposed staffing requests. However, should the members.of either wish to do so, I ask that I be informed of this at least two days before the Committee's next meeting in order that we may meet the Brown Act's 24-hour requirement for posting of an agenda and may give required notice to the media (special meeting rules). Main Hurdman Report KMG Main Hurdman filed its Management and Operation Audit Final Report with the City almost two years ago (July 1986). That report contained many recommendations, some of which are relevant to reorganization plans yet to be presented to the Council. Those relevant to the matters now being considered by the~Committee are as follows: 1. "...the office should consider reclassifying the Legal Secretary II positions to Secretary II, to more adequately reflect the skills necessary" (page 68). Response: Such recommendation fails to take into account the need to recruit and retain experienced and qualified legal and litigation secretaries. (The recommendation was implemented by the prior City Manager.) A copy of Judge Wallace's letter, attached to Litigation Committee Report No. 1-88, is attached for ready reference and contrast to Main Hurdman's recommendation. '2. "Maintain a ratio of attorneys to clerical staff of 2:1" (page viii). Response: With the addition of one litigation attorney and one litigation secretary, the Office will have eight attorneys and four secretaries. ~ check with defense firms has established a ratio of 1:1 prevailing in the local legal community, with senior litigators each often having their own paralegal in addition to a secretary. Memo to Budget'& Finance Committee March ~21, 1988 Page 4 '3. "Attorney staff - future increases contingent upon workload analysis to determine number and area of res- ponsibility'' (page ix). Response: For six months or more after submission of the Final Report, each attorney in the Office maintained a daily log of activities a~d time. Such logs have not been audited, nor is such action proposed at this time. The fast-track litigation system now in place in our Superior Court, not the workload of staff more than one year ago, should be the determining factor. AJS/meg M.BF1 Attachment cc: J. Dale Hawley~/ Mary Strenn~/ Sue Whitfield Don McGillivray ,.~ THE SUPERIOR COURT ARTtlUn E. WALLACE · /[~..~/~-,~,~/r~,.. OF THE ~TATE OF CALIFORNIA Judge IN AND FOR THE COUN~ OF KERN Z,.. BAKERSFIELD. CALIFORNI~.9~30I ~V · uu// ~elophone {OOgJ 801-2431 ClI'T AT I Oli~E T'S OFFICE February 17, 1988 Mr. Ken Peterson, Chairman Bakersfield City Council btttgation Committee 1501Truxtun Avenue Bakersfield, CA 93301 : Re: ~ssembly Bill 3300 Dear Mr. Peterson: Recent legislative changes have mandated that Kern County adopt and implement a program to accelerate civil litigation. (.:')..~... Before implementation of AB 3300 on January 1, 1988, civil cases could take five years from complaint filing to trial. The AB 3300 goal is to try each case tn less than one year. Tile litigation process will be accelerated drastically and ~tll, to a great extent, compact the time'.within which lawyers and their staff must function. The result of AB 3300 will be to dramatically increase pressure on the courts, trial lawyers and upon tile staff of both. A premium will be placed upon qualified clerical staff members with respect to calendaring, knowledge of trial procedures,and preparatlon and ability to help ~he lawyers meet deadlines order to prevent mandated monetary sanctions built into the system. '.' Very truly yours, ARTIIUR E. WALLACE Judge of the Superior.Court AEW:lm MEMORANDUM March 21, 1988 TO: Personnel Committee FROM: Arthur J. Saalfield ~ City Attorney C~.~ SUBJECT: Creation of Litigation S6~retary Classification and Reclassification of a Secretary II Position in the City Attorney's Office to Litigation Secretary (Referral by Council from Litigation Committee Report No. 1-88). The above-referral was made by the Council on 3/16/88. The Committee was directed to report back to the Council within one month. This memorandum is submitted at this time to provide the Committee with background material and to facilitate a Committee report on this matter for the Council meeting of 3/30/88. I would appreciate your questions concerning these matters before 3/26 so that all information necessary for you to report 'back to the Council on 3/30 is available to you on 3/26/88. This Office's request for creation of a Litigation Secretary clas- sification and for reclassification of one Secretary II position to Litigation Secretary is a single, but extremely important, component in a general'reorganization of this Office which will be proposed in the near future. The pressures of the fast-track trial system in the Kern County Superior Court, combined with the Office's pending case-load, require that this classification/ reclassification request be addressed at this time, rather than as part of the general reorganization. Attached is a draft of specifications for the classification of Litigation Secretary. As is evident from the "Examples of Duties" portion, the classification is specifically designed to perform litigation-related duties. The stated "Desirable Minimum Qualifi- cations'' include at least two years' experience as a secretary in a law office with significant experience in calendaring, preparing and filing pleadings and related documents. Prior to mid-December 1987, this Office had a qualified litigation secretary who had been with the Office for more than seven years and had learned necessary litigation secretary skills on the job. M~mo to Personnel Committee March 21, 1988 Page 2 When that secretary left the City to open her own business, I con- tacted the City's Personnel Division and reviewed the qualifica- tions of those on the Secretary list. Not one of the top 3 candidates, nor to my recollection any other person on such list, had law office experience. More importantly, none had litigation' secretarial experience. Were we to fill the vacated permanent position, we would have to select fr~m the Secretary list and pick someone with none of the necessary experience. As noted in the letter from the Honorable Arthur E. Wallace to Councilperson Peterson, attached to Litigation Committee Report No. 1-88, as a result of AB 3300, "a premium will be placed upon qualified cleri- cal staff members with respect to calendaring, knowledge of trial procedures and preparation and ability to help the lawyers meet deadlines ...... " It was in this context that I decided to and did hire as a tempo- rary employee (six-month maximum) a qualified Litigation Secretary. Bottom-line: If this Office is going to have to hire permanent litigation secretarial help from a list for Secretary, litigation attorneys will have to be increasingly responsible for the details of calendaring and attending to court deadlines, tasks more effi- ciently assignable to qualified litigation secretaries, and such attorneys will have less available time to attend to their primary responsibilities. Creation of a Litigation Secretary classifica- tion is essential to efficient and effective use of our litigation attorneys. Recommendation: I request that the Committee recommend to the Council that the Council support creation of a Litigation Secretary classification and the reclassification of one Secretary II position in the City Attorney's Office to Litigation Secretary, and that the Council refer these matters to the Civil Service Board for Miscellaneous Departments' for their approval. A note on the scope of committee review: -- The referrals to committee from Litigation Committee Report No. 1-88 were carefully worded to avoid the Brown Act problems which would result from consideration of a single issue outside of a public meeting by a quorum or more of the'Council. -- The Litigation Committee, consistent with City Manager's Report No. 2-88, was asked to review and has reported to the Council on the staffing issue. Memo to Personnel Committee March. 21, 1988 Page 3 -- The classification/reclassification issues have been referred to the Personnel Committee. -- The budget and financing issues have been referred to the Budget and Finance Committee. This is not to say that either the Personnel ~Committee or the Budget and Finance Committee are precluded from discussing the merits of the proposed staffing requests. However, should the members of either wish to do so, I ask that I be informed of this at least two days before the Committee's next meeting in order that we may meet the Brown Act's 24-hour requirement for posting of an agenda and may give required notice to the media (special meeting rules). Main Hurdman Report KMG Main Hurdman filed its Management and Operation Audit Final Report with the City almost two years ago (July 1986). That report contained many recommendations, some of which are relevant to reorganization plans yet to be presented to the Council. Those relevant to the matters now being considered by the Committee are as follows: 1. "...the office should consider reclassifying the Legal Secretary II positions to Secretary II, to more adequately reflect the skills necessary" (page 68). Response: Such recommendation fails to take into account the need to recruit and retain experienced and qualified legal and litigation secretaries. (The recommendation was implemented by the prior City Manager.) A copy of Judge Wallace's letter, attached to Litigation Committee Report No. 1-88, is attached for ready reference and contrast to Main Hurdman's recommendation. 2. "Maintain a ratio of attorneys to clerical staff of 2:1" (page viii). Response: With the addition of one litigation attorney and one litigation secretary, the Office will have eight attorneys and four secretaries. A check with defense firms has established a ratio of 1:1 prevailing in the local legal community, with senior litigators each often having their own paralegal in addition to a secretary. Memo to Personnel Committee 'March 21, 1988 Page 4 3. "Attorney staff - future increases contingent upon workload analysis to determine number and area of res- ponsibility'' (page ix). Response: For six months o~ more after submission of the Final Report, each attorney in the Office maintained a dailY log of activities and time. Such logs have not been audited, nor is such action proposed at this time. The fast-track litigation system now in place in our Superior Court, not the workload of staff more than one year ago, should be the determining factor. AJS/meg M.PERS1 Attachment cc: J. Dale Hawley Mary Strenn ~ Sue Whitfield. Don McGillivray CLASS TITLE: LITIGATION SECRETARY CLASS CHARACTERISTICS: Is familiar with and, with minimal supervision by an attorl]ey, drafts complaints, answers, demurrers, pleadings and law and motion documents, and performs other complex clerical and secre- tarial work involving considerable knowledge of legal and court procedures; transcribes dictaphone tapes rapidly and accurately, maintains calendar of filing deadlines and'keeps attorl]eys apprised of same; performs other work as required. EXAMPLES OF DUTIES: Preparation of full range of documents related to litigation]; assists attorneys in less complicated and less technical research, document control and analysis for litigation; remains currently informed on filing and serving time limits; calendars appointments; court appearances and document preparation and filing deadlines for attorneys; keeps attorneys apprised of filing time limits; assists in the maintenance of documents, correspondence and liti- gation files; receives visitors and telephone calls and deals with routine office matters independently; composes letters, reports, memoranda and official documents; files and indexes various stan- dard, legal and litigation records and documents; maintains confidential files; prepares claim and expense vouchers. DESIRABLE MINIMUM QUALIFICATIONS: Training and Ex~_~ience: Graduation from high school or attain- ment of a satisfactory score on a G.E.D. test, including or supplemented by secretarial or business school training, and four years of secretarial experience, including two years experience handling primarily litigation-related secretarial duties in a law office. Knowledge, Abilities and Skills: Considerable knowledge of busi- ness English and legal terminology; considerable knowledge of legal forms, methods and procedures; experience in preparation of all commonly used pleading forms and documents; knowledge of, and recent experience in complying with, statutory deadlines for responding to and/or filing pleading documents; considerable experience in operating word processing equipment; familiarity with typical law office procedures. CLASS TITLE: LITIGATION SECRETARY Page 2 Ability to draft typical pleadings and other legal documents; ability to communicate effectively with attorneys; ability to organize time and adjust priorities in response to external pressures; a high degree of general secretarial aPtitude and intelligence. Salary: $ Approved by the City Council: AJS/meg LITCLA$SI 3/21/88 ~ ,t~.~~.' '' ''''2~' THE SUPERIOR COURT ^nnlun E.W^LL^C£ [~'~ ~"~ ! ~'~'~'t OF THEIN,gTATEAND OFFoRCALIFORNIATHE Judge 7elnl~ho.a {OOGI 0G1-243~ February 17, 1988 Mr. Ken Peterson, Chairman . Bakersfield City Council Litigation Committee 1501Truxtun Avenue Bakersfield, CA 93301 Re: Assembly Bill 3300 Dear Mr. Peterson: Recent legislative changes have mandated that Kern Gounty adopt and implement a program to accelerate civil litigation. Before implementation of AB 3300 on January 1, 1988, civil cases could take five years from complaint filing to trial. The AB 3300 goal Is to try each case In less than one year. The litigation process will be accelerated drastically and will, to a great extent, compact the time within which lawyers and their staff must function. The result of AB 3300 will be to dramatically increase pressure on the courts, trial lawyers and upon the staff of both. A premlum will be placed upon qualified clerical staff members with respect to calendaring, knowledge of trial procedures,and preparation and ability to help the lawyers meet deadlines tn order to prevent mandated monetary sanctions built into the system. Very truly yours, ARTIIUR E. WALLACE Judge of the Superior Court AEW:lm ' ADMINISTRATIVE REPORT Meeting Date: k.~.. March.16, 1988 Agenda Section: RePgrts Agenda Item: 7. ±. TO: HONORABLE MAYOR AND CITY COUNCIL ..Approved FROM: LITIGATION COMMITTEE Department Head DATE: March 8, 1988 City Manager SUBJECT: Report No. 1-88 from the Litigation Committee rega .... Staffing of City Attorney's Office for Litigation. RECOMMENDATION: BACKGROUND: ALL pertinent background material is available in the Clerk's Office and will be available at the Council Meeting. This material should be reviewed. %JS/meg .24 ~,~, ~'. ~ . ~lt~ "' ~',!~' LITIGATION COMMITTEE REPORT NO. 1-88 MARCH 16, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: STAFFING OF CITY ATTORNEY'S OFFICE FOR LITIGATION As of January 1, 1988, the Kern County Superior Court began operating under fast-track procedures (A.B. 3300) intended to bring to trial within 12 months each civil suit filed this year and to bring to trial within the same period as many older cases as the court system can accomodate. These procedures were adopted in large part in response to a syste~ which typically required five years to get civil cases to trial. The AB 3300 procedUres set mandatory time limits which do not allow any flexibility to respond to the complexity of .a particular suit, the workload of counsel, or the convenience of witnesses. Failure to meet deadlines will result in mandatory $150 fines. In addition, the court may dismiss a plaintiff's action or eliminate a defendant's defense. The latter action may allow a plaintiff to win regardless of the merits of a suit. A letter from Superior Court Judge Arthur Wallace, concerning the impact of AB 3300 procedures .on law office opera- tions, is attached. LITIGATION SECRETARY The number of secretary positions in the City Attorney's Office has not increased since 1980. (There are and have been three such positions.) During that time not only has the City's population grown by 53,000, but the City has also elected to defend most lawsuits with in-house staff, without taking steps to staff for such program. The City's personnel system has no job classification of Litigation Secretary. · In the recent past that office has gotten by with hiring from the list for Secretary and making do, despite the fact that no law office or litigation secretarial experience is required for the classification of Secretary and the office has been required to hire from the top three positions on the the Secretary list, regardless of the law office inexperience of the top three candidates. While the City Attorney's Office has managed under such an arrangement in the past, it is clear that the Office now has an immediate need for two qualified litigation secretaries. (One vacant Secretary position in the office has been filed by a tempo- rary employee who is a qualified Litigation Secretary.) ADDITIONAL LITIGATOR The demands of AB 3300 require that the number of in- house litigators be supplemented immediately. The City's three litigators each has significant.responsibilities for non- litigation, municipal law matters. This situation will be par- tially resolved when the Office is able to fill the vacant position in its municipal law section. HOwever, since it's likely that the City Attorney's Office will have more cases set for trial in 1988 (at least 10) than it has tried in the last ten years, reassignment of duties will only partially improve the situation. An additional litigator is needed now. OTHER The City Attorney's Office will be proposing office auto- mation, creation of a Legal Assistant classification, reclassifi- cation of other positions in the City Attorney's Office, and a career position for City Attorney Investigator, the last matter requiring an amendment to existing State law. These matters will be brought to. the Council prior to or during the upcoming budget proceedings. Sufficient salary savings are available in the City Attorney's bUdget to cover the costs of the additional attorney position. These matters call for action of the Council at the ear- liest possible time. Based on the above, it is the recommendation of the Committee that: 1.' The Council refer to the Personnel Committee consid- eration of creation of a Litigation. Secretary classification, and the reclassification of a Secretary II position in the City Attorney's Office to Litigation Secretary, and that the Committee report back on this matter within two weeks; 2. The Council refer to the Budget and Finance Committee approval of an additional staff attorney position (Assistant City Attorney) for the City Attorney's Office, to be dedicated full-time to litigation, and that the Committee report back on this matter within two weeks. Respectfully submitted, Ken Peterson, Chairman Pat DeMond Pat Smith AJS/meg LITIG. 3/9/88 MEMORANDUM March 15, 1988 TO: DALE HAWLEY, INTERIM CITY MANAGER SUBJECT: SB 300 This is an update on legislation that we sought to provide 3 year averaging of SB 300 base year calculations for Bakersfield. The State Senate Committee has met on a bill introduced by Senator Beverly that will allow E1Segundo, and now Bakersfield, to use the three year averaging. The bill was approved and will be forwarded to a series of other committees. Representative HarveY's office is optimistic about final passage of the bill. I will keep ~ou informed of its progress. MLS:jp cc: Ed Schulz Gi 1 Rojas 1524 - 27TH STREET, SUITE 100 BAKERSFIELD, CALIFORNIA 93301 (805) 326-1534 March 15, 1988 City Manager City of Bakersfield 1501 Truxton Avenue Bakersfield, California 93301 Dear Sir: Please be advised that Pacific Health Education Center, Inc., has an equitable interest in the ground floor of the medical office buildin.g located at 1524 27th Street, Bakersfield, CA 93301. Under the terms of an affiliation agreement between San Joaquin Community Hospital and Adventist Health Systems West, the ground floor of this building will be transferred and conveyed, to Pacific Health Education Center under a condominium plan. I understand that an application for condominiumlzation of this building has been filed with the city of Bakersfield pursuant to an application therefor. I recently learned in the news that the city of Bakersfield may be involved in a bond issuance to. or for San Joaquin Community Hospital and/or Adventist Health Systems West. This letter is to inform you of Pacific Health Education Center's equitable interest in the 'ground floor of the office building, "and that this floor' and all. adjacent subsurface areas should not become part of any security interest for the hospital or Adventist Health Systems West indebtedness. Sincerely,/ /~ - Lewis R. Walton President and Chairman of the Board LRW/pw Certified mail cc: City Finance Department '~ ~ .... PAGE 1 LEGISLATIVE COUNSEL'S DIGEST BILL NUMBER: SB 1741 LAST AMENDED DATE: 03/07/88 · SB 1741, as amended, Torres. Vicious dogs. (1) Existing law provides for the regulation and licensing of dogs, including providing for dog tags, the seizure and destruction of dogs, and fees for impounding dogs. It imposes civil liability and fines For specified violations and provides that certain offenses involving dogs are misdemeanors or felonies. This bill would provide for the regulation and licensing of vicious dogs, as specified, and would require a license number or other identification number to be ~a~ed tattooed upon vicious dogs, as specified. It would require the owner or keeper to display a warning sign on his or her premises, and the owner or keeper to sign a statement agreeing to specified conditions. The bill would also require all vicious dogs to be confined in an enclosure, as specified, and would prohibit specified acts with respect to vicious dogs. It would require the destruction of the dog and the payment of a specified Fine for a violation of the llcensure, liability insurance, enclosure, or tattoo requirements. The bill would also provide For ·the destruction of a vicious dog, and would impose fines and civil liability on the owner or keeper of the dog, which, when unprovoked, commits specified attacks on a person or specified animals. It would provide for procedures For the owner or keeper of a vicious dog to challenge the destruction of a dog. It would also provide for procedures for a determination that a dog is'vicious a~d p~ev~e ~ha~ epee~ed breeds e~ ~egs. a~e ~eb~a~y p~es~med ~ be v~e~e~ . The bill would provide for exceptions to speclfled provisions for licensed kennels, shelters, licensed guard dog trainers, police departments, and law enforcement officers, as speclfled. The bill would require the Attorney General to establish a Uniform summons or citation to be used by law enforcement agencies in the enforcement of this act. The bill would not prevent a city or county from adopting or enforctn8 a more restrictive program for the control of vicious ~-~) Existing law provldes that a violation of specified provisions regarding the regulation and licensing of dogs that results in death or serious lnJury to livestock or poultry is a misdemeanor. This bill would add additional provlslons to the above, thereby creating new crimes and infractions. The bill would also increase the fines For violations of'laws relating to registration and licensing of dogs, generally. Thls blll would mandate additional duties on local officials regarding the llcenslng and regulation of dogs, thereby creatlng a state-mandated local program. (3) The California Constltutlon requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons. (4) The bill would declare that it is to take effect immediately as an PAGE 2 LEGISLATIVE COUNSEL'S DIGEST urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. PAGE 1 BILL NUMBER: SB 1741 BILL TEXT AMENDED IN SENATE MARCH 7, 1988 AMENDED IN SENATE FEBRUARY 17, 1988 INTRODUCED BY Senators Torres, Deddeh, Royce, and Russell (Coauthors: Assembly Members Eastin and Roybal-Allard) JANUARY 11, I988 ~ An act to amend Sections 30652 and 31401 of, and to add Chapter 9 (commencing with Section 31510) to Division 14 of. the Food and Agricultural Code, relating to dogs, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1741, as amended, Torres. Vicious dogs. (1) Existing law provides for the regulation and licensing of dogs, including providing for dog tags, the seizure and destruction of dogs, and fees for impounding dogs. It imposes civil liability and fines for specified violations and provides that certain offenses involving dogs are misdemeanors or felonies. This bill would provide for the regulation and licensing of vicious dogs, as specified, and would require a license number or other identification number to be ~a~ee~ tattooed upon vicious dogs, as specified. It would require the owner or keeper to display a warning sign on his or her premises, ~and the owner or keeper to sign a statement agreeing to specified conditions. The bill would also require all vicious dogs to be confined in an enclosure, as specified, and would prohibit specified acts with respect to vicious dogs. It would require the destruction of the dog and the payment of a specified fine for a violation of the licensure, liability insurance, enclosure, or tattoo requirements. The bill would also provide for the destruction of a vicious dog, and would impose fines and civil liability on the owner or keeper of the dog, which, when unprovoked, commits specified attacks on a person or speclfled animals. It would provide for procedures for the owner or keeper of a vicious'dog to challenge the destruction of a dog. It would also provide for procedures for a determination that a dog is vicious a~ pPew~e ~h~ ~pee~e~ b~ee~ The bill would provide for exceptions to specified provisions for licensed kennels, shelters, licensed guard dog trainers, police departments, and law enforcement officers, as specified. The bill would require the Attorney General to establish a uniform ~p~kmonso or citation to be used by law enforcement agencies in the enforcement ~T~hi~ NUMBER: SB 17 4 1 PAGE 3 BILL NUMBER: SB 1741 BILL TEXT' the case may be, and shall be used: (a) First, to pay fees for the issuance of dog license tags. (b) Second, to pay fees, salaries, costs, expenses, or any or all of them for the enforcement of this division and ail ordinances which are made pursuant to this division. (c) Third, to pay damages to owners of livestock which are killed by dogs. (d) Fourth, to pay costs of any hospitalization or emergency care of animals pursuant to Section 597f of the Penal Code. SEC. 2. Section 31401 of the Food and Agricultural Code is amended to read: 31401. Except as provided in Sections 31402 and 31518, violation of any provision of this division is an infraction punishable by a fine of not more than five hundred dollars ($500) for a first offense, and by a fine of not more than one thousand dollars ($1,000) for a second or subsequent offense. SEC. 3. Chapter 9 (commencing with Section 31510) is added to Division 14 of the Food and Agricultural Code, to read: CHAPTER 9. VICIOUS DOGS 31510. The Legislature finds and declares: (a) Vicious dogs have become a serious and widespread threat to the safety and welfare of citizens of this state. In recent years they have assaulted without provocation and seriously injured numerous individuals, particularly children, and have killed numerous dogs. Many of these attacks have occurred in pubIic places. (b) The number and severity of these attacks are attributable to the failure of owners to register, confine, and properly control vicious dogs. (c) The necessity for the regulation and control of vicious dogs is a statewide problem, requiring statewide regulation, and existing laws are inadequate to deal with the threat to public health and safety posed by vicious dogs. (d) The owning, keeping, or harboring of vicious dogs is a nuisance. 31511. As used in this chapter, the following terms shall have the following meanings unless otherwise stated: (a) 'Vicious dog' means: (1) Any dog which when unprovoked approaches any person in a vicious or terrorizing manner, in an apparent attitude of attack, upon the streets, sidewalks, or any public grounds or places. (2) Any dog with a known propensity, tendency, or disposition to attack unprovoked, to cause injury, or to otherwise endanger the safety of persons or domestic animals. (3) Any dog which bites, inflicts injury, assaults, or otherwise attacks a person or domestic animal without provocation on public or private property. (4) Any dog owned or harbored for the purpose of dog fighting or any dog trained for dog fighting. Notwithstanding the definition of vicious dog above, no dog may be declared PAGE 4 BILL NUMBER: SB 1741 BILL TEXT vicious if any injury or damage is sustained by a person who, at the time the injury or damage was sustained, was committing a willful trespass or other tort upon premises occupied by the owner or keeper of the dog, or was teasing, tormenting, abusing, or assaulting the dog, or was committing or attempting to commit a crime. No dog may be declared vicious if the dog was protecting or defending a person within the immediate vicinity of the dog from an unjustified attack or assault. No dog may be declared vicious if an injury or damage was sustained by a domestic animal which at the time the injury or damage was sustained was teasing, tormenting, abusing, or assaulting the dog. (b) 'Enclosure' means a fence or structure at least six feet in height which forms an enclosure suitable to prevent the entry of young children, and which is suitable to confine a vicious dog in conjunction with other measures which may be taken by the owner or keeper, such as tethering of the vicious dog. The enclosure shall be securely locked and designed with secure sides, top, and bottom sufficient to prevent the animal from escaping. (c) 'Animal control department' means the county, city, or city and county animal control department. If the county, city, or city and county does not have an animal control department, it shall mean the city, county, or city and county clerk. (d) 'Impounded' means taken into the custody of the public pound in the county, city, or city and county where the vicious dog is found. (e) 'Person' means a natural person or any legal entity, including, but not limited to, a corporation, association, firm, partnership, or trust. 31512. (a) In the event that an animal control officer or a law enforcement officer has probable cause to believe that a dog is vicious, the chief officer of the animal control department or his or her immediate supervisor or the chief of police, or his or her designee, shall petition the municipal court within the Judicial district wherein the dog is owned or kept z or any other tribunal that may be established pursuant to this chapter b~y the city or county, for a hearing for the purpose of determining whether or not the dog in question should be declared vicious. Any complaint received from a member of the public which serves as the evidentiary basis for the animal control officer or law enforcement officer to find a probable cause shall be sworn to and verified by the complainant. The chief officer of the animal control department or chief of police shall conduct or cause to be conducted an investigation and shall notify the owner or keeper of the dog that a hearing will be held by the municipal court or the tribunal, as the case may be , at which time he or she may have the opportunity to present evidence why the dog should not be declared vicious. The hearing shall be held promptly within no less than five nor more than l0 days after service of notice upon the owner or keeper of the dog. The hearing shall be informal and shall be open to the public. ~ ~½~ AR~ dee ~~E ~he ~e½½ew~aE ~eseP~eR et an Ame~ea~ AM~R~N ~ B~A~ ~ERR~ER PAGE 5 BILL NUMBER: SB 1741 BILL TEXT w~ee~ a~ ~he ea~a~ w~h pPem~Re~ ehee~ ~Pee ~Pem w~n~½e~ Ng~E~, 8~a~e~ w~4e~ ae~ ~ee~ We½~ ~ene~neea ee~er aeee~a~½e? NgSE, W~de e~en nee~r~s~ An~ ee~er aeee~ab~e~ hea~ Free Stem ½eeeeness eS b~a~es~ SE~gh~Ey arched a~ ½eEn~ whEeh sheu½~ ~e 8½~gh~Ey ~ueke~ 8HEg~ Beep~ bu~ ne~ ~oe bread7 w~h w~de sprung R~BS, 8~ose~ We~-~prung~ w~h Seep bae~ F~ne pe~n~ Ne~ earr~e8 e~er ~ae~ reasonab~ s~rong~ Fee~ ~e be e~ medium s~e~ aa~ she~½~ be · ~EaH~ ~eng ~bh mmeeEe8 ~eveEepe~ '~eeke down ~e~eR, Any ee½er er mar~ag pe~m~ss~b½e? WE~e Neb ~ ~he ~e½~e~n~ ~e~ er an~ e~esa-~ree~ bheree~ sba½½ Yankee ~err~e~ 8b~e~sh~re ~err~er~ American B~½½ (b) After the hearing, the o~ner or keeper of the dog shall be notified in ~riting of the determination. If a determination is made that the dog is vicious, the o~ner or keeper shall comply ~ith the provisions of this chapter in accordance ~ith a time schedule established by the chief officer of the animal control department or chief of police, but in no case more than 30 days subsequent to the da~e of the determination. If the o~ner or keeper of the do~ contests the determination, he or she may, ~ithin five days of the determination, appeal the decision of the municipal court to the superior court ~fthin the Judicial district ~herein the dog is o~ned or kept, prayin~ PAGE 6 I BILL NUMBER: SB 1741 BILL TEXT that the court conduct its own hearing on whether or not the dog should be declared vicious. The owner or keeper of the dog shall serve notice of the appeal upon the animal control officer or law enforcement officer involved in the matter. The superior court shall conduct a hearing de novo, without a Jury, and make its own determination as to viciousness. The hearing shall be conducted within seven days of the service of notice upon the animal control officer or law enforcement officer involved in the matter. The issue shall be decided upon the preponderance of the evidence. If the court rules the dog to be vicious, the court may establish a time schedule to ensure compIiance with this chapter, but in no case more than 30 days subsequent to the date of the court's determination. · (c) The court may decide all issues for or against the owner or keeper of the dog even if the owner or keeper fails to appear at the hearing. .~d) The determination of the municipal court shall be final and conclusive upon all parties. However, any animal control officer or law enforcement officer shall have the right to have that dog declared vicious for any subsequent actions of the dog. (d) In the event that the animal control officer or law enforcement officer has probable cause to believe that the dog in question is vicious and may pose a threat of serious harm to persons or other domestic animals, the animal control officer or Iaw enforcement officer may seize and impound the dog pending the hearings to be held pursuant to this section. The owner or keeper of the dog shall be liable to the city, county, or city and county where the dog is impounded for the costs and expenses of keeping the dog. The city, county, or city and county council may establish by ordinance a schedule of those costs and expenses. 31513. (a) No vicious dog shall be licensed by any county, city, or city and county for any licensing period commencing after September 15, 1988, unless the owner or keeper of the vicious dog meets the following requirements: (1) The owner or keeper shall present to the city, county, or city and county animal control department proof that the owner or keeper has procured liability insurance in the amount of at least one hundred thousand dollars ($100,000), covering any damage or injury which may be caused by the vicious dog during the 12-month period for which licensing is sought. The policy shall contain a provision naming the city, county, or city and county where that dog is licensed as an additional insured. The policy shall also contain a provision requiring the insurer to notify the city, county, or city and county of any cancellation, termination, or expiration of the liability insurance policy. (2) The owner or keeper shall, at his or her own expense, have the Iicenslng number assigned to that vicious dog, or any other identification PAGE 7 BILL NUMBER: SB 1741 BILL TEXT number as the animal control department shall determine, tattooed upon that vicious dog by a licensed veterinarian or person trained as a tattooist and authorized to tattoo dogs in accordance with any applicable state, county, city, or city and county law. The tattoo shall be placed either on the upper inner lip or upper left rear thigh of the vicious dog. The animal control department in its discretion may designate the particular location of the tattoo. If the identification number is different from the license number of that vicious dog, the number shall be noted in the city, county, or city and county licensing files for that vicious dog. For the purposes of this subdivision, 'tattoo' means any permanent numbering of a vicious dog with the number designated by the animal control department by means of indelible or permanent ink or any other permanent, acceptable method of tattooing. Each city, county, or city and county shall affix a two-letter prefix to the identification number in order to identify the particular place where the dog was initially licensed. (3) The owner or keeper shall display a sign on his or her premises warning that there is a vicious dog on the premises. The sign shall be visible and capable of being read from the public highway. (4) The owner or keeper shall sign a statement attesting that: (A) The owner or keeper shall maintain and not voluntarily cancel the liability insurance required by this section during the 12-month period for which licensing is sought, unless the owner or keeper shall cease to own or keep the vicious dog prior to expiration of that license. (B) The owner or keeper shall, on or prior to the effective date of the license for which application is being made, have an enclosure for the vicious dog on the property where the vicious dog will be kept or maintained. (C) The owner or keeper shall notify the animal control department within 24 hours if a vicious dog is on the loose, is unconfined, has attacked another animal or has attacked a human being, has died, has been sold, or has been given away. If the vicious dog has been sold or given away, the owner or keeper shall also provide the animal control department with the name, address, and telephone number of the new owner of the vicious dog. (b) The animal control department may make whatever inquiry it deems necessary to ensure compliance with the provisions of this chapter and may seize and impound any vicious dog whose owner or keeper fails to comply with this chapter. In the event that the owner or keeper of the dog refuses to surrender the animal to the animal control department, the animal control department may request a police officer to obtain a search warrant and to seize the dog upon execution of the warrant. 31514. (a) All vicious dogs shall be confined in an enclosure. It is unlawful for any owner or keeper to maintain a vicious dog upon any premises which does not have an enclosure. (b) It is unlawful for any owner or keeper to allow any vicious dog to be PAGE 8 BILL NUMBER: SB 1741 BILL TEXT outside of the enclosure unless it is inside of the dwelling of the owner or keeper or it is necessary for the owner Or keeper to do one of the following: (1) Obtain veterinary care for the vicious dog. (2) Sell or give away the vicious dog. (3) Comply with commands or directions of the animal control department with respect to the vicious dog. (4) Comply with the provisions of subdivision (a) or (b) of Section 31513. (c) In any case where the vicious dog is outside the enclosure, except in cases where it is inside the dwelling of the owner or keeper, the vicious dog shall be securely muzzled and restrained with a chain having a minimum tensile strength of 300 pounds and not exceeding three feet in length, and the vicious dog shall be under the direct control and supervision of its owner or keeper. 31515. No person shall own or harbor any dog for the purpose of dog fi~hting, or train, torment, badger, bait or use any dog for the purpose of causing or encouraging that dog to attack human beings or domestic animals without provocation. 31516. (a) If any.vicious dog shall, when unprovoked, kill or wound, or assist in killing or wounding any sheep, lamb., cattle, horse, hog, swine, fowl, or bther domestic animal, belonging to or in the possession of any person, or shall, when unprovoked, attack, assault, bite, or otherwise injure any person or assist in attacking, assaulting, biting, or otherwise injuring any person while out of or within the enclosure of the owner or keeper of that vicious dog, or while otherwise on or off the property of the owner or keeper, the owner or keeper of that dog shall be liable to the aggrieved person for all damage sustained, to be recovered in a civil action, with costs of suit. The owner or keeper shall be liable regardless of whether or not that vicious dog was on a leash and securely muzzled or whether or not the vicious dog escaped without fault of the owner or keeper. It is rebuttably presumed as a matter of law that the owning, keeping, or harboring of a vicious dog in violation of this chapter is a nuisance. It shall not be necessary, in order to sustain any action arising under this section, to prove that .the owner or keeper of that vicious dog knew that that vicious dog possessed the propensity to cause that damage or that the vicious dog had a vicious nature. (b) Upon an attack or assault described in subdivision (a), the animal control department in the county, city, or city and county where the attack or assault occurred may confiscate and destroy that vicious dog, if the conduct of that vicious dog or its owner or keeper constituted a violation of the provisions of this chapter, punishable by the confiscation and destruction of the animal. 31517. (a) Sections 31513 to 31516, inclusive, e~ ~h~ eha~e~ shall not apply to licensed kennels , humane society shelters, Society for the Prevention of Cruelty to Animals shelters, or licensed trainers of guard dogs . /~--)--Th st~hapter shall not apply to dogs owned by any police department or any law enforcement officer which are used in the performance of police work. 31518. (a) A vicious dog shalI be confiscated by the animal control PAGE 9 BIlL NUMBER: SB 1741 : BILL TEXT department and destroyed in an expeditious and humane manner after the expiration of a five-day waiting period exclusive of Sundays and holidays and the owner or keeper of the dog shall pay a one thousand dollar ($1,000) fine if any of the following occurs: (1) The dog does not have a valid license as required by this chapter. (2) The dog's owner or keeper does not secure the liability insurance coverage required by paragraph (1) of subdivision (a) of Section 31513. (3) The dog is not maintained on property with an enclosure. (4) The dog is not inside either the dwelling of the owner or keeper or an enclosure except as provided in Section 31514. (5) The dog is not tattooed as required by paragraph (2) of subdivision (a) of Section 31513. (b) If any vicious'dog shall, when unprovoked, kill, wound, or worry, or assist in killing or wounding any animal described in Section 31516, the owner or keeper of that dog shall pay a two hundred fifty dollar ($250) fine and the animal control department may confiscate and, after the expiration of a five-day waiting period, exclusive of Sundays and holidays, shall destroy that vicious dog. For each subsequent violation the owner or keeper of that dog shall pay a fine of five hundred dollars ($500). (c) If any vicious dog shall, when unprovoked, attack, assault, wound, bite, or otherwise injure or kill a person, the owner or keeper shall pay a one thousand dollar ($1,000) fine. For each subsequent violation the owner or keeper shall pay a fine of five thousand dollars ($5,000) for owning or keeping a vicious dog which attacks, assaults, wounds, bites, or otherwise injures or kills a person. No person shall be charged under subdivision (a), (b), or (c) above, unless the dog, prior to the offense alleged, has been declared vicious pursuant to this chapter. (d) One-half of all fines paid pursuant to this section shall be paid to the city, county, or city and county in which the violation occurred for the purpose of defraying the cost of the implementation of this chapter. (e) No dog shall be destroyed within five days of being impounded, exclusive of Sundays and holidays. (f) If the owner or keeper of a dog impounded for an alleged violation of Sections 31513 to 31516, inclusive, of this chapter believes that there has not been a violation of those sections, the owner or keeper may petition the municipal court which has Jurisdiction in the county where the dog is impounded praying that the impounded dog not be destroyed. The impounded dog shall not be destroyed pending resolution of the owner's or keeper's petition if the petition is filed within five days of impoundment of that dog and notice has been served within five days of the impoundment of that dog upon the animal control department. The hearing shall be conducted within seven days from serving the notice. The decision of the municipal court may be appealed to the superior court by any aggrieved party within 48 hours of the decision. The dog shall remain impounded pending the appeal. A hearing de novo, without a Jury, shall be conducted within seven days of the appeal. The PAGE l0 BILL NUMBER: SB 1741 BILL TEXT decision of the superior court shall be final and conclusive upon all the parties thereto. However, the animal control department or any law enforcement officer shall have the right to destroy the dog pursuant to this section for any actions of the dog subsequent to the date of the alleged violation. If the codrt finds that there has not been a violation, that dog shall be released to the custody of the owner or keeper upon payment to the poundkeeper or animal control department of the expense of keeping that dog. The city, county, or city and county may establish by ordinance a schedule of those costs. (g) If the owner or keeper of the dogviolates any of the terms and conditions of paragraph (4) of subdivision (a) of Section 31513, that owner or keeper shall be fined one hundred dollars ($100) for the first violation and two hundred fifty dollars ($250) for each subsequent violation. 31519. It shall be the duty of each city, county, or city and county to conduct an annual licensing drive in order to ensure compliance with this chapter. 31520. If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the validity of the remainder of the chapter and its application to other persons and circumstances shall not be affected. 31521. The Attorney General shall establish a uniform summons or citation to be used by law enforcement agencies in the enforcement of this chapter. Fines of one hundred dollars ($100) or less may be paid by mail. All other fines or penalties shall require a court appearance. Any offense hereunder may be prosecuted by complaint. 31522. In the event that the owner or keeper of a vicious dog is a minor, the parent or guardian of the minor shall be liable for all injuries and property damage sustained by any person or domestic animal caused by an unprovoked attack by that vicious dog. 31523. Nothing in this chapter prevents a city or county from adopting or enforcing a more restrictive pro,ram-----for the control of vicious dogs. 'SEC. ~. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for those costs which may be incurred by a local agency or school district because this act creates a new crime or infraction, changes the definition of a crime or infraction, changes the penalty for a crime or infraction, or eliminates a crime or infraction. Moreover, no reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for other Costs mandated by the state pursuant to this act because the local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act. SEC. 5. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: PAGE ll BILL NUMBER: SB 1741 BILL TEXT Because of the danger posed to the public peace, health, and safety by vicious dogs, it is necessary that this bill take effect immediately to provide for the preservation of the public peace, health, and safety. OFFICE OF CITY MANAGER March 2, 1988 Mr. Jitendra R. Patel, President Tandoor India Restaurant 2014 "L" Street Bakersfield, CA 93301 Dear Mr. Patel: In response to your request of December 2, 1987, regarding the extension of Lease Agreement No. 85-138 with the City of Bakersfield,'I have provided the attached Report of the Budget and Finance Committee which was approved by the City Council on February 17, 1988. If you have any questions, please contact Paul Shillcock, Principal Planner, at 326-3718. Si_ncerely, ~ Kenneth R. Pulskamp ~/ Assistant City Manager KRP:jp Attachment 1501 TRUXTUN AVENUE · BAKERSFIELD, CALIFORNIA 93301 · (805) 326-3751 BUDGET AND FINANCE COMMITTEE REPORT NO. 10-88 February 17, 1988 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: REQUEST FOR RENTAL REDUCTION FOR TANDOOR INDIA RESTAURANT The Budget and Finance Committee has met to review a request by Tandoor India restaurant for a reduction in rent. The existing lease was executed 'in November of 1985 for a two year' period with a one year option. During the term, the City has approved one substantial rental rate reduction establishing a rental amount which includes a base rent and a percentage of gross sales. The current request is to further reduce the rent by eliminating the "percentage of gross sales" and charging only the base amount. The current rental is slightly below market rates in the area. A further reduction would place privately owned property at a competitive disadvantage when trying to attract tenants. Further, assisting a start-up business by reducing overhead Costs is a technique that should only be continued for a short period of time. Continuous assistance or increased assistance does not encourage the development of a strong business entity. While it is important to provide some assistance to businesses in the downtown so businesses such as the current operation can continue to contribute to the tax base, the Committee feels a further reduction in rent is not advisable at this time. Therefore, it is the recommendation of this Committee that the rental rate remain as it is currently structured and not be further reduced. Respectfully submitted, Donald K. Ratty, Chair James Henry Childs Kevin McDermott .alb RPT.66 and 66A January 29, 1988 TO: DALE HAWLEY, INTERIM CITY MANAGER FROM: GREGORY J. KLIMKO, FINANCE DIRECTOR/~/~--'~ In December, 1986 the City received it's first allotment of SB 300 (Foran 1985). The legislation, requires these funds be expended for additional street/road maintenance/reconstruction by a certain date. SB 300 was amended by AB 3228 (September, 1986) and again by AB 1798 (September, 1987). We have reCently audited our compliance with SB 300 and request the City Council consider sup- porting an additional change to current legislation in order to allow the City of Bakersfield to qualify for a three year average and selection of an alterna- tive base year for SB 300 compliance'measurement. GJK-S287.1 First Interstate Public Finance Company First 707 Wilshire Blvd. Los Angeles, CA 90017 Interstate 213 614- 3 o Public Finance February 25, 1988 Mr. Dale Hawley Interim City Manager City of Bakersfield 1501 Truxtun Avenue Bakersfield, California 93301 RE $35,000,000* City of Bakersfield, California Health Facilities Revenue Bonds (San Joaquin Community Hospital) Dear Dale: I appreciated the opportunity to meet with the City's Budget and Finance Committee on Wednesday, February 24, 1988. This letter confirms our understanding of the fee the City of Bakersfield will charge for the above-referenced bond issue. The City's fee will equal .40% of the bond issue size. For a resized issue of $22-25 million, the City's fee would equal $88,000 to $100,000. AHS-West, San Joaquin and First Interstate look forward to working with the City on this issue. Sincerely, Edward J. De La Rosa Vice President *Original size. Now subject to change due to tax ruling. cc. Councilmember Donald K. Ratty Councilmember James Henry Childs Councilmember Kevin McDermott Gregory J. Klimko, Finance Director Jeffrey R. Leifer, Senior Vice President, First Interstate Public Finance Co. MEMORANDUM F~hruary ?~. !988 TO Paul Dow~ Community, Services Manager FFIOM Jim Ledoux~ Recreation Superintend~n~/,~ SUBJECT Sports Complex - Lease Aqreement At the last meeting of the Budget and Finance Committee, discussion took place regarding the acquisition of the Empire Sports Complex, either by purchase.or lease. As I understand, staff was directed to attempt to lock in a purchase price for the facility based on a formal, appraisal and also to have put in the agreement that the purchase price would be reduced by the cost of improvements put in by the City. I have discussed the language to be used in the agreement with one of the co-owners of the property on several occasions, and he has agreed to all of the terms placed in the contract with exception of Section 24, "Option to Purchase". Mr. Collins will. grant the City an option to purchase but at his original asking price of $1,250,000, and he will agree not to increase that asking price for a period of five (5) years. As a further concession, he will agree not to sell the property other than to the City for a period of five (5) years, unless the City decides to terminate the agreement. Since it is apparent that the purchase price is the major obstacle in securing an agreement at this time, I would suggest that it be recommended to the Budget and Finance Committee that the City enter a lease only agreement at this time and possibly, in the future if it becomes feasible, consider purchasing the property. Whatever is decided, a decision should be made as soon as possible. It is rapidly approaching the point when field mainte- nance should commence if these diamonds are to be used during the coming softball season. More pressing, however, is the upcoming Police Olympics, which takes place in June and which is relying on the softball complex for the conduction of their softball competition. Attached is the language proposed for Section 24 of the lease agreement dealing with an option to purchase. Exhibit A is the language acceptable to the owner; Exhibit B is that which was proposed but deemed unacceptable. JL:cr Attachments EXHIBIT A 24. OPTION TO PURCHASE Lessor hereby grants to Lessee an option to purchase the real property leased herein. Should the Lessee decide to exercise said option, Lessor agrees asking price to remain fixed at $1,250,000, no increase or decrease, for period of five (5) years. Lessor also agrees not to sell property other than to Lessee for a period of five (5) years, unless agreement ter- minated by Lessee. This option shall be effective immediately upon the execution of this agreement and shall expire at midnight, five (5) years from the date of the commencement of this agreement as set forth in Clause 2. Lessee may exercise this option by delivering a written notice thereof to Lessor before the time set herein for expiration. Any such notice, if sent by registered mail, shall be considered delivered when deposited in the United States mail. EXHIBIT B 24. OPTION TO PURCHASE Lessor hereby grants to Lessee an option to purchase the real property leased herein. Should the Lessee decide to exercise said option, the fair market price shall be established by appraisal; said appraisal to be accomplished by an appraiser chosen by mutual agreement of the parties, the joint appraisal to be paid for by lessor. However, in no event shall the price be more than $1,250,000. Said purchase price shall be reduced by the actual cost of all improvements initiated by the Lessee. Lessor also agrees not to sell said property other than to Lessee for a period of five (5) years. Closing costs and fees shall be paid by Lessee in the event this option is exercised. This option shall be effective immediately upon the execution of this agreement and shall expire at midnight, five (5) years from the date of the commencement of this agreement as set forth in Clause 2. Lessee may exercise this option by delivering a written notice thereof to Lessor before the time set herein for .expiration. Any such notice, if sent by registered mail, shall be considered delivered when deposited in the United States mail. 2-24 -88 TO: ED SCHULZ, ACTING PUBLIC WORKS MANAGER FROM: LARRY C. JAMISON, GENERAL SERVICES SUPERINTENDENT SUBJECT: DISPOSAL OF TWO SURPLUS FIRE STATIONS SINCE THESE TWO VACANT FIRE STATIONS WERE DECLARED SURPLUS PROPERTY, I HAVE BEEN EVALUATING THEM IN REGARDS TO AN ON GOING MAINTENANCE AND VANDALISM PROGRAM, CONVERSION TO CITY USE AND TALKING WITH RISK MANAGEMENT AS TO AN ATTRACTIVE NUISANCE LIABILITY FOR THE CITY. I ALSO HAVE BEEN TOLD, BY OTHER STAFF, THAT PREVIOUS ATTEMPTS HAVE BEEN MADE TO MAKE USE OF THIS PROPERTY, (RENT - TRADE - SELL - OR USE IN-HOUSE), WITHOUT SUCCESS. WITH THIS ADDITIONAL INFORMATION, I' WOULD RECOMMEND THAT THESE TWO PIECES OF PROPERTY BE PUT UP FOR SALE FOR THE BEST MARKET VALUE BASED ON THEIR AS IS CONDITION. PUBLIC ~YE CONTACT WITH THESE TYPES OF DEGRADING BUILDINGS IS NOT GOOD FOR THE CITY AND THE LONGER THEY SIT, THE MORE THEY WILL COST TO MAINTAIN, RESTORE OR LITIGATE. BUDGET AND FINANCE COMMITTEE UPDAT~ GANNON REQUEST FOR CHANGE IN DEED RESTRICTION Submit request to County to remove deed restriction. Meeting with Attorneys to discuss changes to lease agreement. Changes to lease agreement are being drafted by Alan Daniel. Will review with Gannon when complete. PARK ORDINANCE Met with BIA. Need to refine figures and prepare response. Working with Jack Hardisty on this. SMOKING Mary Strenn is working on this item. WARNER CABLE Ed Schultz is monitoring status cf system upgrade. Committee requested that Ed & Art Saafield look into mitigation or removal of boxes. CHARTER REVIEW COMMITTEE Trudy, Art Saafield working on changes to charter BOSELY AND HICKS - FREEDOM ENTERPRIZES (CDBG REQUEST) George Gonzales reviewing proposal. DR. FOX PROPOSAL (CDBG REQUEST) George Gon=ales reviewing proposal. JOINT BUDGET & FINANCE COMMITTEE AND PLANNING COMMISSION MEETING TO REVIEW MAINTENANCE DISTRICTS Working with Ken and Jack Hardisty on this. JOHN COROLLO ENGINEERS - RE. CONNECTION FEES FOR WASTEWATER TREATMENT PLANT NO. 3 1988 EXPANSION. Public Works will be working on this (Ed Schult=). Will be brought back to committee by Ed with additional information. ASSESSMENT DISTRICT TASK FORCE - SURVEY (MSI) Request from Task Force for direction from city council re. possible survey for implementation of city-wide assessment districts for maintenance services. Report to Council 2/17/88. (Action-will be contacting Dr. Mann at CSUB to draft questionnaire. PUBLIC WORKS CONSTRUCTION CONTRACTS 02/03/88 Communication from Wayne Keller, representative of the Electrician's Union, re. Public Works Construction Contracts. (Ed Schult=) On Committee agenda for 3/2. Ed will bring back appropriate language after meeting with Union representatives to Committee on 3/16. March 14~ 1988 Page 1 BUDGET AND FINANCE COMMITTEE - CONTINUED C. DaB~G. LOAN PROPOSAL - CORNELIO AND ROBERT SALAS 03/16/88 Community Development reviewing this, Will be reviewed with their budget. Submitted by Jay Bingham. ~ REQUEST TO ACCEPT THREE SEPARATION OF GRADE PROJECTS INTO THE CITY'S STREET SYSTEM 03/16/88 Communication from James Parker of the law firm of Kuhs and Parker requesting acceptance of three separation of grade projects into the City's street system. On committee agenda for 4/27, STAFFING OF CITY ATTORNEY'S OFFICE 03/16/88 Committee has met with Attorney's office, Recommending reclass of Secretary II position to Legal Secretary (litigation option) and additional Legal Secretary position, Report to Council 4/27. LEGAL SERVICES TO TAFT~ SHAFTER~ AND MARICOPA 03/30/88 This is to review if the City would like to continue to provide legal services to Taft~ Shafter~ and Maricopa. This is on the Committee agenda for April 2?th. STREET LIGHTING REVIEW 04/13/88 This is the review of the possible purchase of street lights from PG&E~ CDBG PROPOSAL FROM BOYS CLUB OF BAKERSFIELD 04/13/88 Community Development reviewing. ~ CITY MANAGER'S CONTRACT 04/13/88 This will be on the Committee agenda on 4/27 and go to the Council on that night, ~ ON AGENDA FOR 4/27 COMMITTEE MEETING March 14~ 1988 Page 2 O MEMOR'ANDUM .' 2-24-88 TO: ED SCHULZ, ACTING PUBLIC WORKS MANAGER FROM: LARRY C. JAMISON, GENERAL SERVICES SUPERINTENDENT SUBJECT: DISPOSAL OF TWO SURPLUS FIRE STATIONS SINCE THESE TWO VACANT FIRE STATIONS WERE DECLARED SURPLUS PROPERTY, I HAVE BEEN EVALUATING THEM IN REGARDS TO AN ON GOING MAINTENANCE AND VANDALISM PROGRAM, CONVERSION TO CITY USE AND TALKING WITH RISK MANAGEMENT AS TO AN ATTRACTIVE NUISANCE LIABILITY FOR THE CITY. I ALSO HAVE BEEN TOLD, BY OTHER STAFF, THAT PREVIOUS ATTEMPTS. HAVE BEEN MADE TO MAKE USE OF THIS PROPERTY, (RENT - TRADE - SELL - OR USE IN-HOUSE), WITHOUT SUCCESS. WITH THIS ADDITIONAL INFORMATION, I WOULD RECOMMEND THAT THESE TWO PIECES OF PROPERTY BE PUT UP FOR SALE FOR THE BEST MARKET VALUE BASED ON THEIR AS IS CONDITION. PUBLIC EYE CONTACT WITH THESE TYPES OF DEGRADING BUILDINGS IS NOT GOOD FOR THE CITY AND THE LONGER THEY SIT, THE MORE THEY WILL COST TO MAINTAIN, RESTORE OR LITIGATE. Bakersfield, California, February 3, ~1988 - Page 6 Councilmember McDermott read Budget and'Finance Committee Report No. 7-88 regardin~ City Brochure as follows: On December 9, 1987 the City Council referred to the Budget and Finance Committee the matter of appropriating funds for the printing of a City Brochure. We have met and discussedthis matter and the. Committee recommends, that due to possible signifi- cant changes in the structure of City government and the Mayoral election in June, it would be best to defe~ the printing and appropriation of funds until the 1988-89 fiscal year. Upon a motion by Councilmember McDermott, Budget and Finance Committee Report No. 7-88 was accepted and recommen- dations implemented. Fire Chief Needham gave an oral report regarding an Agreement to hire a consultant to furnish necessary investigation and recommendations relating to the gasoline leak at the Rio Bravo Fire Station, 12100 Alfred Harreil Highway. Upon a motion by Councilmember Ratty, Contract No. 88-21 with Twining Laboratories was approved; $8,200 in Self Assurance Fund Balance was appropriated; the Mayor was authorized to execute Contract No. 88-21; and staff was directed to keep the Urban Development Committee informed by the following vote: Ayes: Councilmembers Smith, Childs, DeMond, Ratty, Peterson, McDermott, Salvaggio Noes: None ' Absent: Mayor Payne CONSENT CALENDAR The following items were listed on the Consent Calendar: a. Approval of Warrant Nos. 4692 to 5219 inclusive, in the amount of $3,640,015.58. b. Communication from Karl F. Hettinger, Kern County Supervisor, Fourth District, dated January 18, 1988, regarding re-examination of traffic condltions on Ashe Road. (RECEIVE AND REFER TO PUBLIC WORKS DEPARTMENT) c. ' Communication from MSo Erick Fehlberg, 7505 Wide"LOop Road, dated January 25, 1988, com- plaining of the noise caused by leaf blowers at the Town and Country Shopping Center° (Stockdale Highway and Coffee Road). (RECEIVE AND REFER TO THE BUILDING DEPARTMENT) .d. Communication from David H. Williams of Century Title and Guaranty Company, 5404 Stockdale Highway, dated January 26, 1988, regarding rec- ognition of Buck Owens' efforts to publicize Bakersfield. (RECEIVE AND PLACE ON FILE) e. Communication from Wayne Keller, representative of the Electrician's Union, regarding Public Works Construction Contracts. (RECEIVE AND REFER TO BUDGET AND FINANCE COMMITTEE) Bakersfield, California, February 3, 1988 - Page 5 After reviewing response time data (attached), it was obvious that the basic agreed upon standards are being met by both ambulance companies in the metropolitan area with 94.1% within the 8 minute guideline and 99.4% within the 12 minute guideline, leaving .6% longer than the 12 minute maximum. A very small number of response times are over the twelve minute maximum response, but most of these responses have been in the extreme outlying areas of the me%ropolitan area. It was agreed upon by all present that there needs to be further review of the proper format for response time calculations. Further study of all available information will continue for approximately ninety days, and at the end of this period the various impacts of this agreement will be addressed. New technologies which could improve the overall efficiency of ambu- lance service and the dispatch process will also be studied in the near future. The present closest ambulance response agreement is only the beginning of a process designed to reduce ambulance response times in the metropolitan area. Ail those involved in the agreement have maintained a very positive attitude and ambulance service lev- els to the people of the metropolitan area have improved. Further evaluation of this agreement will continue to take place with improvements in the system initiated as solutions to problem issues are identified. The City Ambulance Committee meets once per month to review past experience and per- formance and discuss future improvements. In the opinion of the Intergovernmental Relations Committee, the issue of 'response time' of ambulance services is being dealt with in an appropriate manner. A follow-up report on the issue of ambu- lance response will come before the Council in sixty days. Upon a motion by Councilmember DeMond, Intergovernmental Relations Committee Report No. 2-88 was accepted. Councilmember Childs read Budget and Finance Committee Report No. 6-88 regarding Salary of the Interim City Manager as .follows: On January 20, 1988, the City Council referred to the Budget and Finance Committee the matter of the salary for the Interim City Manager. We have met and discussed this matter and this Committee recom- mends that the Interim City Manager receive a salary equal to step four on the salary range for City Manager. This would be a 7.6% increase from step five of the Public Works Manager salary range and would be consistent with' past practice regarding · compensation for employees in acting status. Upon a motion by Councilmember Childs, Budget and Finance Committee Report No. 6-88 was accepted and recommendations imple- mented. Councilmember Childs clarified his vote, stating his congratulations and thanks to Interim Manager Hawley for his con- tinuous support of the City of Bakersfield. CITY OF BAKERSFIELD Retirees Medical Insurance Retirees ® 3an. 1' City Contribution Retirees Contribution Health Blue Health Blue Health Blue Net Cross Total Net Cross Total Net Cross Total Total 1983 O 199 199 $ 2,327(13 $ 54,473(2) $ 56,800 $ 4,732 $ 107,268 $ 112,000 $ 1Ga,BOO 1984 12 2OB' 220 5,061 80,374 85,435 9,878 144,372(3) . 154,250 239,685 1985 1'6 204 220 18,627 91,013(5) 109,730 31,405 182,745(4) 214,150 323,880 1986 44 187 231 28,740 102, OBO 130,820 41,129 173,331 214,460 345,280 1987 56 192 248 32,675 106,730 139,405 4d4,970 184,630 229,600 369,005 1988 58 197 255 33,730 110,435(A) 144,165 ~4,110 249,700 293,810 437,975 i988 58 197 255 33,730 125,315(B) 159,045 a4,110 234,820 278,930 437,975 1988 58 197 255 33,730 137,578(C) 171,308 44,110 222,557 266,667 437,975 1988 58 197 '255 33,730 169,955(D) 203,685 44,110 190,180 234,290 437,975 N otea: (13 Health Net Initiated 7-1-83 (2) Rate in~rease of 8-1-83 absorbed bY the City (From $34.28 to $43.54 Single Party) (3) Rate increase of 8-1-84 absorbed by the Retirees (From $43.54 to $58.47 Single Party) (4) Rate increase of 2-1-85 absorbed by the Retirees (for 3 months)(From $58.47 to $77.80 Single Party) (5) Rate increase of 2-1-85 absorbed by the City effective 5-1-85 via formula implementation (Single = Years x 2%; Two Party = Years x 1½%) A If Retiree picks up Blue Cross 1/1/88 increase (12 months) (From $77.80 to $93.20 Single Party) [~.~_ . . . . ($155.60 to $186.41 Two-Party) ($233.40 to $279.61 Family) If City picks up Blue Cross 1/1/88 increase thru 3/31/88 (3 months) ~.j I~/~ ~? / ~/~._ B C If City picks up Blue Cross 1/1/88 thru 3/31/88 (3 months) plus City picks Up same percentage of premium increase. D If City Picks up Blue .Cross 1/1/88 increase._ (12 months). KERN COUNTY TRANSF'ORTATION,~S JL'i. I A!'i '$' SALES.TAX EXPENDITURE PLAN °- CITY CLERK Summarv In January 1988, Senate Bill 142 (PUC Section 18000 to 180262) became effective. SB 142 allows for local agencies in each county to create an authority. The authority is required to coordinate its actions to secure funding-with the local agencies and CALTRANS. The Kern County Board of Supervisors in accordance with PUC Section 180050, on May 51, 1988 appointed Kern COG as the local transportation authority. The authority is required to prepare an expenditure plan of the expected revenues. The expenditure plan must address all state, federal and local funds anticipated to be collected during the term of the program. ~,~h,~ authority ~hall not ~pend--mo~e--than---~ pmr~nt~ef-----tq~e ~u~d~ ~,,~r ~L~d in ~ny y~a~---~:~-sa~nd- ~e~e~-i-_'ts of if~ staff~ The law states that the authority shall rely, to the extent possible, on existing transportation planning and programming data and expertise, rather than on a large duplicative staff and set of plans. The authority shall not expend.more than I per~ent of the funds generated in any year for salary and benefits of its staff. The expenditure plan must receive approval of the ~oard of ~upervisors and of the ~ity ~ouncils representing both a majority of the cities in the county and a majority of the population residing in the incorporated areas of the county. The plan then is required to be adopted by the Transportation Authority by a two-thirds vote (2/5) prior to the call of the election. The expenditure plan recommends that a' 1/2 cent sales tax[b~' o~rl~ced'on Lhe baiioz to last--20 yea~. At least $2,000,000 of the tax proceeds are to be available for senior citizens purposes.~~L-T~.. ~t least 30% of the tax proceeds transportation are to be available for local transportation purposes and up to 70% is to be available for state and regional highway purposes. C ¢nds ili be osed to match state and ederai highway fund ' to construct improvements to existing highways and future state and regional highway~]alignments. As part of the ballot measure, authorization is being sought to issue bonds to finance the capital improvements. KERN COUN--Y TRANSPORTAT ION EXPENDITURE PLAN 1. FX~ 1/2 cent sales' tax : be placed on the ~ballot~o ~~~ to finance~eeded~ transportation projects in K~n County. Proceeds of 4tax will be used to~axlmlz~state and federal matching funds. 2. At least $2 million of the tax proceeds are to be available for senior citizens transportation purposes, including public transit. [-That~ll .identified projects listed in the expenditure plan ~--shall~carry a' number 1 priority. Identified projects~hould~ address deficiencies o~ the state and regional highway system. Project: Route 46 Description: This project will widen Route 46 to four lanes from ROute 99 to the San Luis Obispo County line. Project: Crosstown Freeway Description: The Crosstown F_reew_ay (FiQute 178) in downtown I "Southern Alignment." Prodect: Bowman Road Description: Bowman Road would be constructed as a two lane roadway ~rom Route 14 to Richmond Road in Ridgecrest. Project: 'Westside Highway Description: The Westside High~ay~(future Route 58)~~ f~eeway]' along the northside of construct~O the Kern River from Route ~9 to Renfro Road. A transition to Stockdale Highway would be constructed and Stockdale Highway would be upgraded to an expressway. Project: Route '14 and Route 595 Corridor Description: This pro~ect will widen the remaining portions of Route 14 to four lanes. Interchanges at California City Blvd and Inyokern Road are included. Prodect: Delano Interchange Modifications (Route 99) Description: The project is to modify the' existing on and off ramps at Route 155 and Cecil Avenue, and 11th Avenue or County Line Road. Project: Kern River Canyon Descriptioo: This project is to construct a 4- lane expressway from the end of the existing 4 lane road near Democrat Hot Springs to existing Route 178 at Rancheria Road.  . FT'bject: Route 202 Description: Widen'Route 202 to 4 lane from Curry Street to Woodford road F'roject: Route 55 Description: This project will widen to 4 lanes, Route from Cascade Place in the city of Taft to 2.4 miles north of Midway Road. Route 55 from Maricopa to Taft would be widen to a 4 lane expressway. Project: Route 45 Description: Route 45 from Euclid Avenue in the city of Shafter to Seventh Standard Road would be widen to four lanes. Project: Route 99 Description: This project would add lane to Route 99 from the Tulare County line to Route 65. Project: McFarland Interchange Modifications (Route 99) Description: The project is to add ramp to the. existing interchanges at Sherwood Avenue, Perkins Avenue, Elmo Highway and south bound on/off ramps to Kern Avenue. Project: Route 225 Description: Route 223 would be improved to four lanes. A traffic signal would be installed a Comanche Drive. Pro~ect: Route 119 Description: This pro~ect will widen Route 119 to four lanes from Taft to 1-5. Project: Route 155 Description: This project is to widen Route 155 from Route 99 to Browning Road. Project: T_~tu~ Ctmt~ m,-~-Reg~-on~~men.~s~. Description: Construct improvement~ and ~cqui~e right-of- That the County Transportation Authority be a~thorized to bond for the purposes o~ building transportation projects. The bond shall be ~or.the amount of the project only and ~ill. be paid with the tax proceeds. 5. At least -50% of the tax proceeds are to be available for local transportation purposes and up to 70'/. is '~to be available for state and regional highway purposes. 6. After ~e~ pro]ecss ~nas are identified in this expenditure p~'an are funded, at least 55% of any unanticipated fu_n_~ must be used for projects in rural aceas an~p to 6~in the Metropolitan Bakersfield 'area. ~__tn~t~e~-Metropol~tan Bmk~er~i-~iij~r ,eaS----the.__.pr_i.or_i_~y · use of unanticipated funds wi-~t be--u~ed f_~r~t_o~_the_loop-freeway'--system~'"west of Route' Revenue Projections The proceeds of tax from this measure and local revenue projections are based on existing revenues (1987 dollars) plus 2 percent real growth. State .revenues are based on historic 'expenditure identified in the State Transportation Improvement Program. This measure is expected to raise approximately $22.5 million a year beginning in 1989. Twenty Year Fund Estimates Total Existing Local Revenues $ g58.5 million 1/2 cent Sales Tax Revenues 155.0 million Total Local Revenues $1,075.5 million Total Existing Regional Revenues $ 200.0 million 1/2 cent Sales Tax Revenues 516.0 million Total Regional Revenues $ 516.0 million