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Jean Parks - RE: Budget and Finance Committee Heeting
From: "Mark Salvaggio" <msalvaggio@arvin-do.com>
To: "3ean Parks" <.]parks@ci.bakersfield.ca.us>
Date: 11/].6/2004 1:35 PM
Subject: RE: Budget and Finance Committee Meeting
Okay.
..... Original Message .....
From: 3ean Parks [mailto:Jparks@ci.bakersfield.ca.us]
Sent: Tuesday, November 16, 2004 1:27 PM
To: Mark Salvaggio
Subject: Budget and Finance Committee Meeting
Mark,
.lohn asked me to set a Budget and Finance Committee meeting. Mike is available on Monday, November
29th at 4;15 p.m. Would you let me know if that date is okay with your calendar. Harold just called and
it is okay with him.
~://C:~D~cum~nts%2~and%2~Settings\jparks.BAKERSFIELD\L~ca~%2~Settings\T~m~:... 11/16/2004
From: Alan Tandy
To: Jean Parks
Date: 11/1/2004 1:06:46 PM
Subject: Re: question
I will get back to you- thanks
>>> Jean Parks 11/1/04 11:59:26 AM >>>
We do not have one scheduled. Rhonda was going to let me know when they were ready with info.
Would you like to get one scheduled? Any special time frame?
>>> Alan Tandy 11/1/2004 11:41:17 AM >>>
When, if scheduled, is the next budget and finance committee?
I~,~ean Parks - Re' Bud & Fin Date
~ Pa(3e 1 ~
From: Rhonda Smiley
To: Jean Parks
Date: 10/11/2004 8:26:33 AM
Subject: Re: Bud & Fin Date
OK with my calendar, but since AT only wants to hold it as tentative, I'm not sure you should contact Mike
or Mark yet. Do you think we should see how things ge this week with getting the info together?
>>> Jean Parks 10/8/2004 4:26:11 PM >>>
Alan T. is not available for B & F meeting on Monday the 25th according to his calendar. How does the
27th or 28th work for you. AT, AC and JWS are free at this time. Have not called Mike's office or Mark.
From: Rhonda Smiley
To: Jean Parks
Date: 10/8/2004 12:34:20 PM
Subject: Fwd: Re: maintenance district- information
Per our conversation about a date for B&F ......
>>> Alan Tandy 10/8/2004 11:05:44 AM >>>
based on a conversation I just had with Georgina I would say you are a prophet! We could hold it as a
tentative knowing it may slide I guess
>>> Rhonda Smiley 10/8/04 10:04:20 AM >>>
Which reminds me to ask you - Harold won't be back until 10/18; Jean suggested setting the committee
meeting date for 10/25. That would be in about two weeks; are you comfortable that will be enough time
to get the numbers put together and then reviewed by the Task Force? Maybe we should hold off on
setting up the meeting until we see how the info comes together?
>>> Alan Tandy 10/8/2004 9:49:16 AM >>>
how are we doing on tracking down the information shown to be needed at the last meeiing?
O ADMINISTRATIVE REPORT
TO: Honorable Mayor and City Council · AEP-.EOVED
Donna L. Kunz, Economic Development Director DEPARTMENT HEA~ ~)/...j~/--~j-
FROM:
DATE: September 24, 2004 CITYcITY MANAGER '7'/~7ATTORN EY,,,~./~. /
/ /
SUBJECT: Amendment No. 1 to Agreement No. 99-9 between the City of Bakersfield/a/nd Jerry
Randall, a sole proprietor doing business as Noreiga House regarding repaym nt of
economic development loan. (Ward 2)
RECOMMENDATION:
Budget and Finance Committee recommends approval.
BACKGROUND:
On September 20, 2004 the Budget and Finance Committee recommended restructuring the remaining
loan balance of $11,400 which was to be repaid at 0% interest no later than January 13, 2004, to a fully
amortized loan 'to be repaid in four annual installments at 5% interest on the outstanding balance, with the
first annual payment to be made on January 13, 2005.
Agreement 99-9 between the City of Bakersfield and Noriega House provided a $22,800 loan to the
Noriega House. The loan was structured in two tiers. Tier One, $11,400 would be forgiven when the
Noriega House complied with the terms of the agreement, including specific hiring requirements, for each
of the loan's five years. In June of 2004, the Nodega House provided the City with the verification of their
specific hiring accomplishments. Staff determined the Noriega House exceeded the hiring requirements
under Tier One for the loan's five year term and staff initiated a ministerial action to forgive the Tier One
portion of the loan on July 8, 2004.
Tier Two comprised of the remaining $11,400, would be repaid at 0% interest no later than January 13,
2004. In February 2004, the Noriega House requested the Tier Two remaining balance be forgiven due to
.unanticipated expenses incurred in the rehabilitation of the structure and the limited current operating cash
flow of the business to support the refinancing of this loan. The City staff evaluated the request and
recommended to the Budget and Finance Committee an option that will allow for total repayment of the.
remaining debt of $11,400 in four annual installments with interest accruing at 5% per annum on the
outstanding balance. The Budget and Finance Committee unanimously approved staffs'recommendation.
J:~Admins\City Council~NodegaHouseamendment.doc
9/24/2004 11:46 AM
AGREEMENT NO. 99-9(1)
AMENDMENT NO. 1 TO AGREEMENT NO. 99-9
FOR ECONOMIC DEVELOPMENT LOAN
THIS AMENDMENT NO. 1 TO AGREEMENT NO..99-9 is made and'entered into'
on ., by and between the CITY OF BAKERSFIELD, a
California charter city and municipal corporation ("CITY" herein) and JERRY E. RANDALL,
, a sole proprietor of and doing business as NORIEGA HOUSE ("NORIEGA" herein).
RECITALS
' ' WHEREAS, on January 13, 1999, CITY and NORIEGA entered into Agreement No.
99-9 ("the Agreement"); and
WHEREAS, pursuant to the Agreement, CITY loaned NORIEGA TVVENTY-TWO
THOUSAND, EIGHT HUNDRED DOLLARS ($22,800.00)to purchase fixtures and certain
types of equipment for NORIEGA to upgrade and operate a tea room, catering and
hospitality center in Old Town. Kern located at 1325 Baker Street; and
WHEREAS, the term of the loan was five (5) years and shall accrue interest at an
annual rate of zero (0%). The term of the loan shall be a period of 60 months from the date
of the execution of this Agreement; and
WHEREAS, NORIEGA certifies that the project will enable NORIEGA to create six
(6) jobs in theCity of Bakersfield and 51% of such jobs will be available to Bakersfield's Iow
and moderate-income persons as defined in 24 CFR 570.3; and
WHEREAS, for each year that NORIEGA is in compliance with all terms of this
Agreement, fifty percent of the loan ($11,400) will be forgiven twenty percent (20%). If
NORIEGA is in compliance with all terms of this Agreement for the full five-year term,
NORIEGA will owe CITY the balance, or $11,400; and
WHEREAS, If, at anytime during the five-year term of this Agreement, NORI EGA is
not in full compliance with all Of the terms of this Agreement and fails to bring itself into
compliance after being given a reasonable time to do so, NORIEGA shall owe CITY that
balance of the amount loaned which had not already been forgiven; and ..
WHEREAS, as security for repayment of the loan, shall be a personal guaranty from
Jerry Randall; and
WHEREAS, NORIEGA has met the terms and conditions required in the agreement
and qualified to have fifty percent of the loan ($11,400)forgiven and staff initiated a
minJsteria~ action to forgive that portion of the loan on July 8, 2004; and
J:~AGREEMEN'ISnoriega house amend #1 99-09.doc Page 1 of 3 '~
WHEREAS, due to additional unanticipated eXpenses incurred in the
rehabilitation/restoration of the structure and the current operating cash flow of the
business not able to support a refinance of this loan at this time, NORIEGA desires CITY
to restructure the original loan repayment terms to allow more time to pay offthe remaining
loan balance of $11,400; and
WHEREAS, the CITY has also made significant investment in other public street
improvements on Baker Street, with additional improvements Planned in the near future
which will .ultimately benefits all business operations in the area; and
WHEREAS, the restoration of the NORIEGA has brought renewed optimism and
hope to merchants and residents of Old Town Kern by serving as a center of community
activity where an average of 200-600 people per week attend events ranging from
weddings to business meetings; and
WHEREAS, on September 20, 20004, the Budget and Finance Committee of the
City Council .of Bakersfield recommended restructuring the remaining loan balance of
$11,400 which was to be repaid in full at 0% interest no later than January 13, 2004; and
NOw, THEREFORE, incorporating the foregoing recitals herein, CITY and
NORIEGA mutually agree as follows:
paragraph IV. TERMS OF LOAN:
B. Repayment of Loan is amended to read as follOws:
1.. The loan balance of $11,400 is restructured to a fully amortized loan to be rePaid in
four annual installments at 5% interest on the outstanding balance, with the first annual
payment to be made on January 13, 2005; and
2. All other terms and conditions of Agreement No. 99-9 shall remain in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No.' 1 to
Agreement No. 99-9 to be executed the day and year first-above written.
J:'~,GREEMENT~noriega house amend #1 99-09.doc Page 2 of 3
CITY OF BAKERSFIELD NORIEGA HOUSE
By: r
By:
HARVEY L. HALL ' JERRY RANDALL
Mayor Owner
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
By:
ALAN DANIEL
Deputy City Attorney il
APPROVED AS TO CONTENT:
ECONOMIC AND COMMUNITY
DEVELOPMENT DEPARTMENT
By:
DONNA L. KUNZ
Economic Development Director
COUNTERSIGNED:
By:
GREGORY J. KLIMKO
Finance Director
J:~GREEMENT~noriega house amend #1 99-09.doc Page 3 of 3
BA'KE. RSFIEL'D '
Economic and Community Development Department
MEM'ORAN.DUM
August 17, 2004'
TO: Budget and Fina.n,ce Committee'~
FROM: uonna L. Kunz, Economic Development Director
.I
SUBJECT: Noriega House Amendment No. 1 to Agreement 99-9 regarding repayment
of economic development loan. (Ward 2)
The EConomic and Community.Development staff recommends restruCturing the remaining
loan balance of $11,400, which was to be repaid at 0% interest no later than January 13,
2004, to a fully amortized loan to be repaid in four annual installments at 5% interest on the
outstanding balance, with the first annual payment to be made On JanUary 13, 2005.
Agreement 99-9 between the City of Bakersfield and Nodega House provided a $22,800'
loan to the company. The loan is structured in two tiers:
Tier One, $11,400, would be forgiven when Noriega House complied with the terms of the
agreement, including specific hiring requirements, for each of the loan's five years. These
requirements included,
· hiring six workers during the five year term, and
· of those workers hired at least 51% must be Iow- and moderate-inCome individuals.
Exercising forgiveness is a ministerial action and, thus, requires no Council action..
Tier Two, comprised of the remaining $11,400, would be repaid at 0% interest no later than
January 13, 2004.
The company has exceeded the hiring requirements under Tier One for the loan'S five year
term, as shown in the table below:
I Projected Actual % Low-Mod
Year Hires Hires Hires
I 3 2.25 60%
2 1 15.625 77.4%
3 1 3.0 100%
4 I 4.0 100%
5 0 0.0 N/A
Total I 6 24.875 I 82.21%
Therefore, N0dega House has met the terms and conditions required in the agreement and
J:\Noriega house amendmentl.doc
qualifies to have the Tier One portion forgiven. Staff initiated a miniSted'al action to forgive
the Tier One portion of the loan on july 8, 2004.
Regarding theTier Two portion of the loan, Noriega House owner Jerry Randall submitted
a letter dated February 3, 2004 requesting the remaining $11,400 balance of the loan be
forgiven. Staff advised Mr. Randall that any consideration of his request could not begin
until his employment reports for the loan term were submitted and all other compliance
issues met. Due to the busy tax season, Mr. Randall compiled and sUbmitted these reports
to our office on June 16, 2004. At that time, staff began to carefully review his request for
loan forgiveness of the balance at that time.
Staff commends Jerry Randall for investing in the Baker Street area to bdng to fruition One
of the first major construction projects in many years. The project has brought much
needed positive press and media attention to the area. The restoration of Noriega HOuse
also brought renewed optimism and hope to merchants and residents of Old Town Kem by
serving as a center of community activity where an aVerage of 200-600 people per week
attend events' ranging from weddings to business meetings. In addition, this project has
provided an average of two full time jobs and part time employment to over 30 young
people each year the operation continues.
Mr. Randall Submitted a very compelling request, however, staff informed Mr. Randall that
we can not support forgiveness of the loan. Mr. Randall recognizes that this isa very tight
financial time for the City and we must carefully allocate and recycle our limited resources.-
We also agree with Mr. Randall's assessment that any new venture involves unknown
expenses and extraordinary start up costs. We also believe that the value of the Nodega
House Property has significantly increased in value due to the improved general market
conditions and other expected improvements for Baker Street. This is accurately
demonstrated by the increase in the assessed valuation of this property. For example, in
1998, the property was assessed at $107,000 and the most recent assessment at
$215,216. Typically, the assessed valuation reflected is somewhat lower than the actual
market value. Mr. Randall's investment is currently generating about $1,600 net tax
revenue to the Bakersfield Redevelopment Agency annuallY.
The City has also made significant investment in other public street improvements dn
Baker Street, with additional improvements planned in the near future which will ultimately
benefit all business o.perations in the area.
We understand that Mr. Randall has an SBA business loan on the property and the current
operating cash flow of the business will not support a refinance of this loan at this time to
pay off the City. With these issues in mind, staff worked with Mr. Randall to restructure a
new loan term that will allow for total repayment of the remaining debt of $11,400 in four
annual installments. Interest will accrue on the outstanding balance at 5% per annum.
J:~,Noriega house amendmentl.doc
Mortgage LOan Payments
I! .......... Enter ValUes i Loan Summary.
~ ' 'Loan AmountI $ 11,400.00 ! Scheduled Paym(;nt. $ 3,214.93
Annual Interest Rate 5.00 % ~ Scheduled Number of Paymentsi 4
Loan Period in Yearst 4 Actual Number of PaymenlsI 4
Number of Payments Per YearI . 1 Total Eady Payments $
Start Date of Loan" 1/13/2004 Total Interest' $ 1,459.74
Optipnal Extra Paymentsl $
Lender Name:[.
................................
Prat Beginning Scheduled Extra Ending Cumulative
No. Payment Date Balance Payment Payment Total Payment Principal Interest Balance. Interest
"i ................... 1/i3/2~05 $' 1i,400.00'$' 3,214.93 $ $ 3,214.93 $ 2,644.93 $ 570.00 $ 8,755.07 $ 570.00
2 1/13/2006 8,755.07 3,214.93 3,214.93 2,77.7.18 437.75 5,977.88 1,D07.75
3 1/13/2007 5,977.88 3,214.93 3,;714.93 2,916.04 298.89 3,061.84 1,:f06.65
4 1/13/2008 3,061.84 3,214.93 3,061.84 2,908.75 153.09 0.00 1,459.74
PUBLIC STATEMENTS SPEAKER'S CARD
BUDGET AND FINANCE COMMrl-rEE Committee of the City Council
Committee Meeting Date ~'~]~/~
You are invited to address the Committee under Public Statements on any subject that
is listed on .the Committee Agenda.
Public statements are limited to three (3) minutes per speaker with a maximum of fifteen
(15) minutes, per side, for any one subject. The Committee may, by simple majority vote,
waive the time limit. No action will be taken; this Committee gathers information and
reports back to the City Council.
Please fill out a Speaker's Card and present it to the Committee Chair:
Mike Maggard
Name:
Company/
Organization:
Phone: ~ ~.~'~/'~Pf~ Fax/e-mail:
Other deferred item:
Staff report and Committee recommendation regarding Promoting Curbside
Recycling - Rojas/Barnes
B A K E R S F I E L D
PUBLIC WORKS DEPARTMENT
CITY OF BAKERSFIELD
MEMORANDUM
June 16, 2004
TO: ALAN TANDY, CITY MANAGER
FROM: RAUL M. ROJAS, PUBLIC'WORKS DIRECTOR
SUBJECT: PROMOTE CURBSIDE RECYCLING
Council :Referral #805
Councilmember Benham requested staff review the 'suggestions provided by Ms.
Sandy Garrigan to promote curbside recycling and provide a response. Refer to
Budget and Finance Committee for consideration.
Staff is reviewing the suggestions provided by Ms. Garrigan. A report on these and
other current promotional efforts will be ready for the Budget and Finance Committee by
the time a meeting is scheduled.
G:~GROUPOAT~Referrals~004~06-09~805 - Solid Wasle.doc
REC'D & PLACED ON FILE
KeepBakersfleldBeautiful
Ward t- Keith Stoller
Ward 2-. Dana Karcher, Vice Chair
Ward 3- Sherry
June 9, 2004 War~,l- K~vin
Ward 5- David Taylor
Ward ~- John E~iqu~, Chair
To Council Members ~md Alan Tandy, Ward ?- $~dy
The Bakersfield residents take pride in their community and work hard. to keep it
clean. Curbside recycling is a positive step for our community and its environment.
Currently, nearly :2,500 homes have subscribed to do curbside recycling, but the Keep
Bakersfield Beautiful Committee a~d-Recycling Subcommittee would like to se~ more
residents in Bakersfield participate in curbside recycling.
The Keep Bakersfield Beautiful program sponsors boast of having the "best
participation for our Great American Clea~-up" event with over 3,100 people turning
out to cleanup our community. We have students all over the city participating in
recycling efforts at their school sites and in community orgarfizarion, citizens lug tons
of recyclables to drop-off sites and the city and county respond with a variety of
recycling events that collect hazardous and-hard to dispose of items. Everyday we see !
more individuals signing uP for the blue carts but the pace is slow. In order for the
program to be-successful, the numbers of participants need to increase. In order for I
participation rates to iflcrea~e, some important changes need to occur; thc community
can do it if only given a better chance.
We feel that curbside recycling needs a positive boost from you, the City Council, if
we are to remain on track with the state mandate of AB939, which requires landfill
waste to 'be reduced by 50% .by 2000. We identified the following support that would
expand curbside recycling in Bakersfield.
· Increase the publicity surrounding curbside recycling.
· E~tend incentives to the participants in curbside recycling.
· Increase education on recycling a~d also the harmful effect to our
environment of not recycling in our community.
The committee is well awa~ that the economic times are hard and that curbside
recycling is e~.pensive and out of reach for many citizens but we do rea]izo that the
program has to pay for itself. We would like to propose some additional steps that
could be taken that would reduce the cost and increase the usage of the blue carts.
City of Bakersfield. Solid Waste Division
4101 Truxtun Avenue, Bakersfield, CA 93309
Phone: 661-86-CLEAN Faxc 661-852-2114
Email: kbb(~ci.bakersfleld.ca, us
,%
KccpBakers eldBeautiful
· Provide. the community with additional awareness by advertising mom,
and by creating .promotions to foster sign~ups. An example might be to
give a.subscriber a month off their service if they get a neighbor to
sign-up for the service.
· Provide parity .between the cost of a second tan cart and the cost of the
blue cart. Cttrrently it is either free or it costs $47.40 for the second tan
cart compared to $80.00 for a blue cart. (Residents'can keep their green
cart and 'second tan for $47.40 or residents can turn in their green cart
and get the sexondtan free). This encourages excess waste and
discourages recycling. Proposal, have both carts cost the same.
· Provide neighborhoods with high percentages of recyclers at a reduced
rate as the cost of the service in those areas declines. As participation is
the key to reducing cost, reward those neighborhoods where
participation is high with a lower per household charge.
· Increase education of recycling at events and schools. Promote .mini
real cost-recycling programs (such as blue carts at fairs and.concerts)
and encourage the use of Keep Bakersfield Beautiful voluntee~ and ~
staff to spread the KAB "Waste In Place" message to our schools.
1
Thank you so much for your support of Keep Bakersfield Beautiful and for the city's
curbside recycling program. It is making a difference .in our commUnity and the /' 1
environment. Help us to heighten everyone's awareness and participation so we can
all continue to IC~AP BAKERSFIELD BEAUT]YUL.
Sincerely,
Sandy Gar~an, R~)cling ~[~Jbcommittee Chair '
Keep Bakersfield B~autiful Cotnrllittee
Endorsed,
John 1~ riquez, ~fi~~ ·
Keepl ~ersfield Beauti 1'~ ~2~l~tmittee
Cit7 of I~kersfleld. Solid Wasm Division
410[ Trux~un Avenue, B~kersfleld, CA 93309
Phone: 661-86-CLEAN Fax: 661-852-2114
Em~il: kbb<~ci.b~J<ersfleld.c~.u s