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HomeMy WebLinkAbout02/26/2007• B A K E R S F I E L D Ken Weir, Chair Sue Benham Irma Carson Staff: John W. Stinson MEETING NOTICE BUDGET AND FINANCE COMMITTEE of the City Council -City of Bakersfield Monday, February 26, 2007 -12:00 p.m. City Manager's Conference Room, Suite 201 Second Floor -City Hall, 1501 Truxtun Avenue, Bakersfield, CA A G E N D A 1. ROLL CALL 2. ADOPT NOVEMBER 6, 2006 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. NEW BUSINESS A. Discussion and Committee recommendation regarding amending and adopting the 2007 Committee meeting schedule -Stinson B. Discussion regarding recycling programs and potential incentives. C. Discussion regarding audit reports for fiscal year ending June 30, 2006. 5. COMMITTEE COMMENTS 6. ADJOURNMENT B A K E R S F I E L D -~ ~ 1 ~ ~~~ ~,,, Mike Maggard, Chair John Stinson, Assistant City Manager Irma Carson For: Alan Tandy, City Manager Harold Hanson AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Monday, November 6, 2006 -10:00 a.m. City Manager's Conference Room -Suite 201 City Hall, 1501 Truxtun Avenue, Bakersfield, CA ROLL CALL The meeting was Called to Order at 10:05 a.m. Present: Councilmembers Mike Maggard, Chair; and Harold Hanson Councilmember Irma Carson arrived at 10:15 a.m. 2. ADOPT OCTOBER 2, 2006 AGENDA SUMMARY REPORT Adopted as submitted. (Committee Member Carson absent) 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Discussion and Committee recommendation regarding WiFi (wireless Internet service) (This item heard last) Mr. Chuck Haas, CEO and Co-Founder of MetroFi, gave a presentation. MetroFi is a four-year old company located in Mountain View between San Jose and San Francisco. Their business model for 2007 will be offering more of a multi-use network and not just wireless Internet service and, therefore, the proposal they presented to the City earlier no longer fits their business model. MetroFi is still proposing to use City light poles in order to provide wireless Internet service throughout Bakersfield to local residents/businesses at no cost. The service would be supported by advertising. For a fee of $19.95 the service would be available without the banner advertisements. However, MetroFi is now proposing for the capital improvements they put in the City to provide free "WiFi" service, the City of Bakersfield pay them $50,000 per AGENDA SUMMARY REPORT Page 2 BUDGET AND FINANCE COMMITTEE MEETING ~, r ~' ~'~`~" Monday, November 6, 2006 i.1 _ r. ~ ~ ~ `~`~~~ month, provide mounting access on City light poles, streamline the permitting construction process, and use their network band for public safety. MetroFi is proposing to also dedicate a portion of the WiFi to the City. WiFi does not reach very far so their proposal includes installation of approximately 30 access points per square mile in high-density areas, but only minimal access points in sparsely populated areas of the City. IT Director Bob Trammell reported the City is currently spending approximately $6,000 per month on telecommunication costs. This includes wireless service through Verizon and AT&T. Public Works Director Raul Rojas explained the City currently uses a microwave system. The microwave towers and radio system used by Public Safety and Public Works is paid for and owned by the City. The City's radio coverage using microwave towers is very good. The mobile radios in the vehicles operate almost to the Grapevine area. It is an old system and the microwaves are on a replacement schedule. Radios are replaced as needed. Upgrading City equipment from the current microwave system would require a major investment for the City. The Committee had several questions: • If access points are not provided in sparsely populated areas, such as the northeast, how would that affect emergency vehicles operating in the area? • How would a change to MetroFi affect the City's current wireless vendors, Verizon and AT&T? • What would the economic impacts be on local vendors now providing Internet service to residents, if the City were to enter a contract that, would provide free Internet service? • As MetroFi originally proposed leasing the light poles and putting their system in the City at no charge, what benefit is there to the City for $50,000 per month? • If we move forward with WiFi, should the City put this out for bids? Mr. David Rogers, Electronic Towne Crier, spoke regarding support services for the free users other than the webpage information. Mr. Marvin Dean, Southeast Bakersfield Computer Center, spoke about the growth of the City, access to County pockets, and spreading the cost. As this MetroFi proposal was different from the proposal previously reviewed by the Committee, City Manager Alan Tandy recommended the Committee refer the proposal to staff for an economic analysis. The Committee unanimously agreed and referred the MetroFi proposal to staff. AGENDA SUMMARY REPORT Page 3 BUDGET AND FINANCE COMMITTEE MEETING Monday, November 6, 2006 ~~ E I `~ ~~' 5. NEW BUSINESS A. Staff report and Committee recommendation on the Independent Auditor's Report on Transportation Development Act Funds for Fiscal Years Ended June 30, 2005 and 2004 (New Business Items A and 8 were heard first) Public Works Director Raul Rojas reported this is the annual independent audit on the Transportation Development Act Funds received from Kern COG for the Bikeway and Pedestrian Special Revenue Fund and the Amtrak Operations Special Revenue Fund. The audit had no special findings or exceptions. Committee Member Harold Hanson made a motion to accept the Auditor's Report and to recommend acceptance by the City Council. The Committee unanimously approved the motion. (Committee Member Carson absent) B. Staff report and Committee recommendation on the Independent Auditor's Report of Rabobank Arena, Theater, Convention Center and The Bakersfield Ice Sports Center for fiscal year ending June 30, 2006 Finance Director Nelson Smith reported this is the annual audit for the operations of the Rabobank Arena, Theater, Convention Center and The Bakersfield Ice Sports Center. The audit had no special findings or exceptions. General Manager Steve Womack provided a brief overview. The 2005-06 year was a very good year and the 2006-07 year is looking even better. Committee Member Harold Hanson made a motion to accept the Auditor's Report and to recommend acceptance by the City Council. The Committee unanimously approved the motion. (Committee Member Carson absent) 6. COMMITTEE COMMENTS 7. ADJOURNMENT The meeting adjourned at 11:15 a.m. Attendance: Staff: City Manager Alan Tandy; Assistant City Manager John W. Stinson; City Attorney Ginny Gennaro; Finance Director Nelson Smith; Public Works Director Raul Rojas; Assistant City Attorney Janice Scanlan; General Services Superintendent Steve Hollingsworth; IT Director Bob Trammell; Assistant IT Director Eddie Chavez; Public Works Business .Manager Georgina Lorenzi; and Rabobank Arena General Manager Steve Womack AGENDA SUMMARY REPORT Page 4 BUDGET AND FINANCE COMMITTEE MEETING Monday, November 6, 2006 ~`~ y ~~ ~~G Attendance others: David Rogers, Electric Towne Crier; Joe Schoenstein, Bright House Networks; Chuck Haas, MetroFi, Inc.; Marvin Dean; Mark Howell, KUZZ; and other news media/cameras cc: Honorable Mayor and City Council S:WOHN\Council Committees\06 Budget&Finance\bf06 nov 06summary.doc APPROVED FEBRUARY 26,2007 Budget and Finance Committee JANUARY 2007 THROUGH DECEMBER 2007 All meetings will be held in the City Manager's Conference Room Approved February 26, 2007 Committee Meetings - 12:00 p.m. Council Meetings Budget Meetings and Presentations Monday's @ Noon, Wednesday's @ 5:15pm Holidays - City Hall Closed ~ Joint City/County Meeting JANUARY S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 FEBRUARY S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 M ARCH S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 APRIL S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 JULY S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 OCTOBER S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 MAY S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 AUGU ST S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NOVEM BER S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 JUN E S M T W TH F S 1 2 3 ~4 5 © 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SEPTEMBER S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 DECEM BER S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Last Update: March 1, 2007 CITY OF BAKERSFIELD PUBLIC WORKS DEPARTMENT MEMORANDUM TO: Alan Tandy, City Manager ~ ~~~ ~~ FROM: Raul Rojas, Public Works Director DATE: February 22, 2007 SUBJECT: Budget and Finance Committee Recommendation Regarding Curbside Recycling Incentive Plan and Extra Refuse Cart Fees This is to recap the curbside recycling (blue cart) situation, and to provide recommendations requested by the Budget and Finance Committee for increasing blue cart recycling. Bakersfield does not currently have a mandatory blue cart recycling program. Rather, it has a voluntary blue cart recycling program with a monthly fee of $6.67. This arrangement resulted from a City Council decision to offer a voluntary program. However, there is increasing public interest in blue cart recycling. This plan is to provide additional incentives for blue cart recycling. Current Services Bakersfield has a successful citywide program for refuse and greenwaste recycling carts. The basic level of service includes one tan refuse cart and one greenwaste cart for a monthly fee of $14.09. Extra tan refuse carts are available for a monthly fee of $4.53.. This is a subsidized fee, with the actual City cost being $7.15 per month. The extra carts were subsidized for the sake of larger households back when the tan refuse cart program began, before the blue cart was considered. Also, free extra tan refuse carts were issued to a small number of homes in lieu of greenwaste carts, under the assumption that gardeners would remove all of the greenwaste. These two subsidies place the blue cart program, which is self-supporting at $6.67 per month, at a higher cost than extra tan refuse carts, which discourages recycling. Many residents have indicated they would like to recycle if the fee was lower. If the subsidy from the extra tan refuse carts were switched to support blue cart recycling instead, there would be a greater incentive to recycle. The extra tan refuse cart fee would then be $7.15, and the blue cart recycling fee would be $4.00 per month. This should result in greater participation, because residents would be attracted to the lower recycling fee. S:\Council Committees\2007\07 Budget&Finance\Budget & Finance Curbside Memo 2-23-07.doc Recommendation 1: Eliminate the outdated subsidy for extra tan refuse carts and transfer that subsidy to the blue cart recycling program to reduce the monthly rate as noted above. Staff would communicate with the 3,375 households which pay for extra tan refuse carts and offer to exchange tan for blue as the accounts come up for annual renewal throughout the year. This would spread the workload and ease customer concern. Recommendation 2: Cease the practice of issuing free extra tan refuse carts for homes that request an extra tan cart in lieu of a green cart, and gradually phase out existing ones. Currently, 4,937 homes with gardeners have free extra tan refuse carts in lieu of their former green carts. Staff is recommending that no new extra tan carts be issued and that those who currently have this option be educated about the need to recycle and encouraged to participate in the recycling program. This would phase out the exchange of these carts over time. Recommendation 3: Implement a slight refuse fee adjustment to fund increased participation in the curbside recycling program. The refuse fee would increase approximately one-tenth of one percent per year, for residential users based on current costs. This increase would be necessary to cover the increased cost of subsidizing new recycling program participants over the existing 3,500. This amount would be reviewed annually and adjusted depending on changes to the participation levels and program costs. An increase in participation would help ease the transition to mandatory curbside blue cart recycling in the event it is needed for compliance with state recycling mandates. Recommendation 4: Explore additional ways to reduce the cost of the blue cart recycling program. Staff would like to proceed with a request for proposals (RFP) to identify organizations to operate curbside recycling processing equipment to be purchased utilizing the City's new one-time $1.5 million state beverage container deposit grant. This has the potential to further offset recycling program costs for the City. S:\Council Committees\2007\07 Budget&Finance\Budget & Finance Curbside Memo 2-23-07.doc 2 O~ BA4 DMINISTRATIVE REPORT .~ A c `~,.~ LIFO MEETING DATE: January 17, 2007 AGENDA SECTION: Consent Calendar ITEM: ~ a, , -~-4-. TO: Honorable Mayor and City Council APP- FROM: Nelson K. Smith, Finance Director DEPARTMENT HEAD DATE: January 9, 2007 CITY ATTORNEY CITY MANAGER SUBJECT: Audit Reports to be Referred to Budget and Finance Committee: 1. Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2006 2. Independent Auditors Report -Single Audit Report -Schedule of Federal Expenditures for the City of Bakersfield for the fiscal year ended June 30, 2006. 3. Independent Auditors Report -Compliance with Contractual Requirements relative to the Bakersfield Subregional Wastewater Management Plan for the year ended June 30, 2006. 4. Independent Auditors Report on Appropriations Limit Worksheet (GANN Limit) of the City of Bakersfield for the fiscal year ended June 30, 2006. RECOMMENDATION: Staff recommends referral to the Budget and Finance Committee. BACKGROUND: 1. Attached is the City's Comprehensive Annual Financial Report (CAFR), commonly referred to as the City's Annual Audit Report, for the fiscal year ended June 30, 2006. The CAFR represents the City's financial statements as of June 30, 2006, which are audited by the accounting firm of M. Green & Company LLC. The current compliance report issued by the outside auditors indicates that the City complied, in all material respects, with accounting principals generally accepted in the United States of America. 2. Attached is the City's Single Audit Report for the fiscal year ended June 30, 2006. The Single Audit Report pertains to federal program monies expended by the City during the specified fiscal year. An Independent Audit is performed annually to review internal control procedures and compliance with federal guidelines in accordance with Office of Management & Budget (OMB) Circular A-133. This annual audit was performed by M. Green & Company LLC as part of their contract to provide auditing services to the City of Bakersfield. The current compliance report issued by the outside auditors indicates that the City complied, in all material respects, with federal program guidelines. 1 of 2 S:\AdminWdmin Reports\CAFR refer to lwd.doc January 9, 2007, 6:38AM g BA ~ J ~ U C7 c ~, LIFO ADMINISTRATIVE REPORT 3. Contract requirements contained in City of Bakersfield Agreement 76-153 as amended by Agreements 76-153(5), 76-153(4), 77-44, 85-197 and 92-106 apply to operations of the Bakersfield Subregional Wastewater management Plan. The City's compliance with contract requirements is audited on an annual basis. The current Compliance Report, issued by the outside auditors, indicates that the City had no audit findings. 4. Attached is a letter from the City's independent auditors M. Green & Company LLC indicating they have completed their annual review of the Appropriations Limit Worksheet prepared by the City in accordance with Section 1.5 of Article XIIIB of the California Constitution (GANN Limit). This annual review is performed by the auditors as part of their contract to provide auditing services to the City of Bakersfield. The agreed upon review procedures are substantially less in scope than an audit and therefore no audit opinion is expressed regarding the calculation. 2 of 2 S:WdminWdmin Reports~CAFR refer to twd.doc January 9, 2007, 8:33AM CITY OF BAKERSFIELD SINGLE AUDIT REPORTS FOR THE YEAR ENDED JUNE 30, 2006 M. Green and Company, LLP Certified Public Accountants Visalia, California CITY OF BAKERSFIELD FOR THE YEAR ENDED JUNE 30, 2006 TABLE OF CONTENTS Page No. Independent Auditors' Report on Schedule of Expenditures of Federal Awards ........................................................................................................ 1 Schedule of Expenditures of Federal Awards ....................................................................... 2 Notes to Schedule of Expenditures of Federal Awards ...................................................... 3-5 Schedule of Findings and Questioned Costs ........................................................................ 6 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements performed In Accordance with Governmental Auditing Standards ................................................................................................... 7 Independent Auditor's Report on Compliance with Requirements Applicable To Each Major Program and Internal Control over Compliance In Accordance with OMB Circular A-133 .....................................:.......:................... 8-9 M. Green and Company LLP CERTIFIED PUBLICACCOUNTANTS LARRY W. AYERS, C.P.A. MARLA D. BORGES, C.P.A. KEVBV M. GREEN, C.P.A. WM. KENT JENSEN, C.P.A. KATHLEEN M. LAMPS, C.P.A. LYNN M. LAMPS, C.P.A. ALAN S. MOORS, C.P.A. JUSTIN MORALES, JR., C.P.A. KENNETH B. NUNES, C.P.A. GIUSEPPE SCALIA, C.P.A. KENNETH W. WHITE, JR., C.P.A. REBECCA AGREDANO, C.P.A. LYNDA S. ANDERSON, C.P.A. ELAINE D. REULE, C.P.A. NATALIE H. SIEGEL, C.P.A. NANCY R. TUTSCHULTE, C.P.A. ROBERT L. BANDY, C.P.A. ConsuUam LAMES G. DWYER, C.P.A. Consultant DONALD G. GORDON Consukam FOREST A. MCQUEEN, C.P.A. Consultant CHARLES L. SOUTHARD, C.P.A. Consutram KENT A. WOOLLEY, C.P.A. Consukant INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The Honorable Mayor and Members of the City Council City of Bakersfield, California We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Bakersfield, California (the City), as of and for the fiscal year ended June 30, 2006, which collectively .comprise the City's basic financial statements. These basic financial statements are the responsibility of the City of Bakersfield's management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and pen`orm the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A-133, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Tulare Visalia Hanford Dinuba December 1, 2006 Visalia, California 3900 West Caldwell • Post Office Box 3330 . Visalia, California 93278-3330 • Telephone (559) 627-3900 • FAX (559) 625-1606 E-mail: visalia@mgreencpas. com • Web Site: www. mgreencpas. com Q a J Q W ~ W J LL W W LL tC W W N ~ O ~ M ~ ~ W LL Z 0 Z ~. 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'>U v °~ vi~wU ~ D F°- ~ H W ~i ~ ~ Fo- N O N N N O M O N d4 O O N_ fR ~' O O> N r r rn r n r d9 c ca m N CITY OF BAKERSFIELD NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS JUNE 30, 2006 NOTE 1 - GENERAL The accompanying Schedule of Expenditures of Federal Awards presents the activity of all Federal Financial Assistance programs of the City of Bakersfield, California (the City). As defined in Note 1 of the Notes to the City's Financial Statements, those financial statements and the accompanying Schedule of Expenditures of Federal Awards presents the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, pan`. of the government's operations and data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize that they are legally separate from the Government. Each blended and discretely presented component unit has a June 30 year end. Blended and discretely presented component units are: 1. Discretely Presented Component Unit: The Bakersfield Redevelopment Agency (the Agency) is responsible for the development and financing of projects within (1) the Southeast Bakersfield Project Area, (2) the Old Town Kern-Pioneer Project Area, and (3) the Downtown Bakersfield Project Area. The Agency is governed by a board comprised of members appointed by the City Council. 2. Blended Component Units The Bakersfield Public Financing Authority (the Authority) is a joint exercise of powers authority formed on July 7, 1993 by and between the City and the Bakersfield Redevelopment Agency (the Agency). The Authority was created to assist the City, the Agency and other local public agencies in financing and refinancing, through the issuance of bonds or other instruments of indebtedness, public capital improvements and working capital pursuant to the Marks-Roos Local Bond Pooling Act of 1985. The Authority is authorized to make and enter into Bond Purchase Agreements and to purchase Obligations of any Local Agency. The Authority is governed by a board consisting of the Mayor and the City Council. The Authority is reported as a Governmental Fund Type. Complete financial statements for each of the individual component units may be obtained at the City's Finance Department. Federal financial assistance received directly from Federal agencies as well as Federal financial assistance passed through other government agencies is included on the schedule. NOTE 2 - BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 of the Notes to the City's Basic Financial Statements. NOTE 3 - OTHER REVENUE Amounts reported as other revenue relate primarily to interest income and reimbursements for the year ended June 30, 2006. NOTE 4 - RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Amounts reported in the accompanying schedule agree with the amounts reported in the related periodic Federal financial reports. 3 D Q Q J Q W W LL Q W ~ ~ ~ co 0 W H-N (Z M maz LL Owe } tL F Q UW J D W •_ V f" W i Z 1 W 0 Z 1 ~ ~ N O O? ~O f0 N O ° C O O O O L ~ U n n I~ n N N EfT fq d3 fA !R fA ~ ~ n~ c o n m n m n r n m S~ ° ~ ~ m ~ n v ~ v ~ v n v v o o H~ E C a M M M M M M ~ 3 ~ LL c ° W ~ p fa en v3 u s fa u~ c d m ~ d m m or°i n v n v n v E ~ J y ~ N M 47 tf) ~O ` r J W m ~ ~ fR to to fR f9 N , m°~ ., a c c ~ o o ao ~ ao rn ao rn ao rn r a~ m •c o a`Ai C7 °'° ~E r O` E d ~p d _ ~ d U N ~ ~ ~ N ~ ~ v~ ~ ea v} us ~» ° y `~ ° ~ ~ E E ~ ~ v v - Q 11 Q C d O E Q ~ a u~ us w u3 v- ~ w c ~ r ~ ~ n E~'j Ca W C C ~ N N N N N ~p C N N ~p Q C~ 00 ~ °c~ d Q ~ W ~ u9 to is trf to (A _ c O p C~ Q co ~~ n (°+7 n M n M rn r rn ~ `~ f0 _ ~ ° o ° ~ o rn v °O °D OD ~ ~ ~ ~ ~ ~ ' N 9 o i r i r i ~c h co ~ H ~ c ic t0 f0 f0 [ M d ° o.W ~ ~ ~ IA fR d9 fA fR if? C M M 0 f0 O) M ao ~ -aD 00 O anO O N C E a E O ~ N C N N ~ ~ O ~ ~1 7 E~ N C C7 ~ ~ ~ 47 N N N o_.y> EcC7 v~ ~ v v O o ~ E ~7 cyS ~~m ~ °-e ~ v3 v3 as fss v- va a~i N ~ ~ C O ~p d `1 ~p °~ C a ° ~' E ~ E n M E Q d N ~ ~ N E a~ m c ~ y ~ m ~ ~ > a~i C ~ ~ h ~ LL LL j ~ O ~ N ~ i0 o d E i0 o ~ N ` LL .o L ~ ~ ¢ ° ii O ~ ~ Q Q Q W W Ll. Q W y ~~<o O WI_N i Z M maz W Ow' ~O UW J W 2 V H W Z I W 0 Z ~ e W N T 7 0 W O o. c o O O O o•-L U ~ n r ~ N us vs vs 'A ~ ~ U T ~ ~ r ~ r n r r 7 'D N C O , a M M M ~ m m o ~ ~ ~ c W vi ~' vt u- a~ E m r r ~ W ~~ m o~ v v n m '"7 N Vr N f7 ~ 1 ~ ~ ~ U O r ~ j '~ W m ~i vi fN 1A O O N N N r w C O r 0 r D O O ~ ..~ O. C C O a a0 ~- aD O a 01 _ N lC ~- p m (~ ~ E ~ ° ~ m a i a = N a~ c~ in p ~ y N fA f9 iR ~ c 'o c+~ c+~ _ o c m `0O`~ oE~ N v v v d ~' y ~ ~ ~ y j C O O ~a~ aka Q - vs v, u, ~ c 9 c o c o Q m ~ ~ ~ E U c ~'j c~ N N N ~ ooomaoC9 . Q ca V ~ W O v, d, d, «~ O° m<< Q rn v rr~i m ~ o ~ c NEoE °~ v o rnv ui r°0i .n r~i d ~ ~ N m V i0 ~ In lO (O n ~ c 'C o ~ F !A O. W w to Vl ~ c d c rNi can v ~n ~ m rNi co a icE E N ~` N C N N h ~ i ~ OV r rn~ c E W r~~ v n rn rn ,~ ~ E o Y v •- u~ v ~ 'o ~ o > o m U j ° ~ ~ ~ ~ r~ en ~ v m N C O) U ~ 01 ~ Y ~ N C ~ N O U m V N N m N X W °~ w ~ EO •y .7 L N C U C Q O C X E ^, U N N O ~ c ~ ~ ~ a ii ~ ~ ~ o ii ~ d m m c y m ~ _ v t F H m 0 ~ V o li O > fn ~-- CITY OF BAKERSFIELD SCHEDULE OF FINDINGS AND QUESTIONED COSTS JUNE 30.2006 1. Summary of Audit Results 1. The auditor's report expresses an unqualified opinion on the financial statements of the City of Bakersfield, California. 2. No reportable conditions were disclosed during the audit of the financial statements. 3. No instances of non-compliance material to the financial statements of the City of Bakersfield, California were disclosed during the audit. 4. No reportable conditions were disclosed during the audit of the major federal award programs. 5. The auditor's report on compliance for the major federal award program for the City of Bakersfield, California expresses an unqualified opinion on the major federal program. 6. The audit disclosed no findings relative to the major federal awards program. 7. The programs tested as a major programs were: (1) U.S. Department of Housing and Urban Development (CFDA Number 14.218) (2) U.S. Department of Housing and Urban Development (CFDA Number 14.239) (3) U.S. Department of Justice (CFDA Number 16.710) 8. The threshold for distinguishing Types A and B programs was $360,931. 9. The City of Bakersfield, California was determined to be a low-risk auditee. 2. Findings Relating to Financial Statements Required under GAGAS. None. 3. Findings and Questioned Costs - Maior Federal Award Programs Audit None. 6 CITY OF BAKERSFIELD Independent Accountant's Report on Applying Agreed-Upon Procedures For the Fiscal Year Ended June 30, 2006 M. GREEN AND COMPANY LLP Certified Public Accountants Visalia, California M. Green and Company LLP CERTIFIED PUBLICACCOUNTANTS LARRY W. AYERS, C. P.A. INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES MARLA D. BORGES, C.P.A. KEVIN M. GREEN, c.P.A. To the Technical Advisory Committee WM. KENT JENSEN, C. P.A. Of the Bakersfield Subregional Wastewater Management Plan, the City of Bakersfield, KATHLEEN M. LAMPS, c.P.A. California, the Kern Sanitation Authority, LYNN M. LAMPS, c.P.A. and the East Niles Community Services District ALAN S. MOORS, C.P.A. IUSTIN MORALES, Ht., C.P.A. We have performed the procedures enumerated below to determine the City of Bakersfield's KENNETH B. NUKES, C.P.A. (the City) compliance with certain provisions of contractual requirements as specified in GIUSEPPE SCALIA, C.P.A. Agreement 76-153, as amended by Agreements 76-153(6), 76-153(5), 76-153(4), 77-44, 85- 197, and 92-106, regarding the Bakersfield Subregional Wastewater Management P-an. KENNETHW.WHITE,IR.,C.P.A. These procedures, which were agreed to by the Technical Advisory Committee (TAC), were performed solely to assist you in meeting the requirements of Agreement 76-153, as REBECCA AGREDAND, C. P.A. amended by Agreements 76-153(6), 76-153(5), 76-153(4), 77-44, 85-197, and 92-106. The Clty'S management is responsible for the Bakersfield Subregional Wastewater Management LYNDA S. ANDERSON, C.P.A. Plan. This agreed-upon procedures engagement was conducted in accordance with ELAINE D. REULE, C.P.A. attestation standards established by the American Institute of Certified Public Accountants. NATALIE H. SIEGEL, c.P.A. The sufficiency of these procedures is solely the responsibility of the parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures NANCY R. TUTSCHULTE, C.P.A. described below, either for the purpose for which this report has been requested or for any other purpose. ROBERT L. BANDY, C.P.A. ~"S""°"` We reviewed and tested the City's compliance with certain provisions of contractual 1AME5 G. DWYER, C.P.A. requirements as specified in Agreement 76-153, as amended by Agreements 76-153(6), 76- c~"a``~t 153(5), 76-153(4), 77-44, 85-197, and 92-106. DONALD G. CORDON Consulmm Current Year Findings: No exceptions were noted as a result of our procedures. FOREST A. MCQUEEN, C.P.A. Consultau CHARLES L. SOUTHARD, c.P.A. Consultam Status of Prior Year Finding #1 -Agreement Number 76-153. Section 23 -Records and Accounts XENT A. WOOLLEY, c.P.A. consultant The agreement requires the City to send ten copies of the annual financial reports to its User Agencies. We found no evidence of compliance with this provision as to the annual financial reports for the period ending June 30, 2004. Recommendation We recommend that the City send ten copies of the annual financial reports to its User Agencies or modify Agreement 76-153 to provide for an alternative provision. Such annual reporting should include a copy of the report of the independent auditors. Response In the future, the City will send ten copies of the annual financial reports to its User Agencies Tulare which includes a copy of the report of the independent auditors. Visalia Hanford Current Year Status Dinuba The City sent ten copies of the annual financial report to its User Agencies which included a copy of the report of the independent auditors, therefore the City was in compliance for the current year. 3900 West Caldwell • Post OJjice Box 3330 . Visalia, California 93278-3330 • Telephone (559) 627-3900 . FAX (559) 625-1606 E-mail: visalia~mgreencpas. com • Web Site.• www. mgreencpas. com Technical Advisory Committee Page 2 Status of Prior Year Finding #2 -Agreement Number 76-153 Section 12 -Estimate and Payment of Costs The agreement requires the City to conduct a public meeting to consider the TAC proposed budget "at which meeting the User Agencies shall be given an opportunity to present information and representation for consideration." The same paragraph requires the City to "notify each User Agency of the budget and ~~ allocated costs thereof on or before July 1. We were presented with no evidence that the User Agencies were given specific notice of the City Council public meeting or that they were expressly notified of the Council approved allocated costs before July 1. Recommendation We recommend that the City send notification, and preserve evidence of such notification, of the public meeting and the approved budget to the User Agencies, as specified in Agreement 76-153 or modify the Agreement to provide for alternative procedures. We note that several of these procedures were adopted many years ago, prior to the City and the User Agencies developing the policies and procedures now used for communication and audit control. Perhaps a general review of the relational controls would be in order. Response In the future, the City will send notification, and preserve evidence of such notification, of the public meeting and the approved budget to the User Agencies, as specified in Agreement 76-153. Current Year Status The City sent notification and preserved evidence of such notification, of the public meeting and the approved budget to the User Agencies, therefore the City was in compliance for the current year. We were not engaged to, and did not; conduct an audit, the objective of which would be the expression of an opinion, on the City's compliance with certain provisions of contractual requirements as specified in Agreement 76-153, as amended by Agreements 76-153(6), 76-153(5), 76-153(4), 77-44, 85-197, and 92-106, regarding the Bakersfield Subregional Wastewater Management Plan. Accordingly, we do not express such an opinion. Had we preformed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended for the information of the Technical Advisory Committee of the Bakersfield Subregional Wastewater Management Plan, the City's management, appropriate regulatory agencies, and the City Council and is not intended to be used and should not be used by anyone other than those specified parties. November 27, 2006 /~ Visalia, California CITY OF BAKERSFIELD Independent Accountant's Report on Applying Agreed-Upon Procedures Related to Article XIIIB Appropriations Limit Calculation For the Fiscal Year Ended June 30, 2006 M. GREEN AND COMPANY LLP Certified Public Accountants Visalia, California 1V~. Green and Company LLP CERTIFIED PUBLIC ACCOUNTANTS LARRY W. AYERS, C.P.A. MARLA D. BORGES, C.P.A. KEVIN M. GREEN, C.P.A. WM. KENT IENSEN, C.P.A. KATHLEEN M. LAMPS, C.P.A. LYNN M. LAMPS, C.P.A. ALAN S. MOORS, C.P.A. JUSIIN MORALES, JR., C.P.A. KENNETH B. NUNES, C.P.A. GIUSEPPE SCALUI, C.P.A. KENNETH W. WHITE, IR., C.P.A. REBECCA AGREDANO, C.P.A. LYNDA S. ANDERSON, C.P.A. ELADiE D. REULE, C.P.A. _ NATALIE H. SIEGEL, C.P.A. NANCY R. TUTSCHULTE, C.P.A. ROBERT L. HANDY, C.P.A. Consukanl LAMES G. DWYER, C.P.A. CORSWIaat DONALD G. GORDON ConsWtaal FOREST A. MCQUEEN, C.P.A. ConsWlau CHARLES L. SOUTHARD, C.P.A. ConsWlant KENT A. WOOLLEY, C.P.A. ConsWra~a INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES RELATED TO THE ARTICLE XIIIB APPROPRIATIONS LIMIT CALCULATION To the Honorable Mayor and Members of the City Council City of Bakersfield, California We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Bakersfield, California, (the City) for the year ended June 30, 2006. These procedures, which were agreed to by the City and the League of California Cities and presented in their Article XIIIB Appropriation Limitation Uniform Guidelines, were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City's management is responsible for the accompanying Appropriations Limit Worksheet. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained the City's completed worksheets required to determine that the correct annual adjustment factors were adopted by resolution of the City Council. Current Year Findings: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Worksheet, we added line A, last year's limit, to line E, total adjustments, and agreed the resulting amount to line F, this year's limit. Current Year Findings: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriation Limit Worksheet to the other worksheets described in #1 above. Current Year Findings: No exceptions were noted as a result of our procedures. 4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year. Current Year Findings: No exceptions were noted as a result of our procedures. Tulare Visalia Hanford Dinuba 3900 West Caldwell • Post Office Box 3330 • Visalia, California 93278-3330 • Telephone (559) 627-3900 • FAX (559) 625-1606 E-mail: visaliaQmgreencpas.tom • Web Site: www. mgreencpas. com We were not engaged to, and did not; conduct an audit, the objective of which would be the expression of an opinion, on the Appropriation Limits Worksheet. Accordingly, we do not express such an opinion. Had we preformed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than those specified parties. October 12, 2006 Visalia, California CITY OF BAKERSFIELD APPROPRIATIONS LIMIT -WORKSHEET FOR THE FISCAL YEAR ENDED JUNE 30. 2006 A. Last year's limit $ 189,173,478 B. Adjustment factors: 1. Population % 104.68% 2. Inflation % 105.26% Total adjustment C. Annual adjustment 10.186168% 19,269,529 ~D. Other adjustments: Booking fees Property tax administration fees 913,787 590,000 E. Total adjustments 20,773,316 F. This years limit $ 209,946,794 rile F~c .Gist jook 'tlelp f=: ~ Fax IBAKERSFIELDImmun¢J i `t '- -(,;~ Main _. ~ /rash y Gl a~ Budget and Fineries Cornnattee. t - r"j Community Services ' t :. -~ Leg and Lit -(,;J Planning and Development Cannatb t ~ DNe/Tlme ~To/Ficm/File Fax Number/6m__ ~PagesiEytas ~Stelus 1NOTUSED 2/23/200710:17... r I II David Burger•Ba... I 3957519 1 pgs ~ ®OK 2/23/200110:17.., News Director ~ K... 327-0797 1 pgs Q OK 2/23/200710:17... Editor~El Mexicalo 323-6951 1 pgs ®OK 2/23/200710:17... Beale Library 6319439 1 pgs ~ OK 2/23/200710:17... News Director ~ K... 2632963 1 pgs ®OK 2/23/200710:17 _. Eddor ~ EI Popular 3251351 1 pgs ~ OK 2/23/200710:17... News Director ~ K... 326-0380 1 pgs 4 OK 2/231200710:17... News Directs ~ K... 861 9810 1 pgs ®OK 2/23/200710:17._ News Dlrecta-U... 3342667 /pgs ®OK 2/23/200710:17... News Director G.. 3342665 1 pgs ~ OK 2/23/200710:17... Clea ChannelRa_ 2838963 /pgs ®OK 2/23/200710:17... Gavemmant Allau... 6352317 1 pgs ®OK 2/231200710.17._ BIA 6334317 1 pgs ~ OK 2/23/200710:17... Eddor ~ Bakeisliel.., 324982 1 pgs ®OK 2/23/200710:17.. . Charles G. Waide 325-7814 1 pgs ®OK 2/23/20071017 _ . News Diector ~ K... 393-1915 1 pgs ®OK 2/23/200710:17.. . News Directs ~ C... 327~W51 1 pgs ®OK 2/23/200710.17.. . Kathy Eddy ~ Cou_. 866-3190 1 pqs ~ OK 2/23/200710,17.. . News Directs-K... 3267537 1 pqs ®OK 2/23!200710:17.. . The Minordy Cons._ 3239287 /pgs ®OK 2/23/200710'17 _ . News Director ~ K._ 2631843 1 pqs WOK 2/23/200710:17.. . News Dvecta ~ K... 3235538 1 pgs ®OK 2/23/200710:17.. . News Edits Bak... 3957519 1 pgs WOK 2/23/200710:17.. . Opinion ~ Bakeisii.,. 395-7360 1 pqs WOK ~J ~ J (J i,[5 Faxes Jsted