HomeMy WebLinkAbout01/28/2008 0
/040400*4
B A K E R S F I E L D
Staff: John W. Stinson Ken Weir, Chair
Sue Benham
Irma Carson
BUDGET AND FINANCE COMMITTEE
of the City Council - City of Bakersfield
Monday, January 28, 2008— 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 OCTOBER 25 2007 AGENDA SUMMARY
3. PUBLIC STATEMENTS
4. NEW BUSINESS
A. Discussion and Committee Recommendation regarding Amending and
Adopting p g the 2008 Committee Meeting Schedule -
Stinson
B. Audit Reports - Stinson
Comprehensive Annual Financial Report (CAFR) for the fiscal ear
ended June 30 2007. y
• Independent Auditors Report — Single Audit Report — Schedule
Expenditures for
p edule of
Federal E
x
p the City of Bakersfield for the fiscal e r
June 30 2007
ended Jun y a
• Independent Auditors Report — Compliance P p ce with Contractual
Requirements relative to the Bakersfield Subregional Wastewater
Management Plan for the year ended June 30, 2007
• Independent endent Auditors
P Report on Appropriations Limit Worksheet
GANN Limit)) of the City of Bakersfield for the Fiscal year ended June
30, 2007.
Independent Auditors Report —
R
p abobank Arena, Theater, Convention
Center, Bakersfield Ice Sorts Center
P & Bri g hthouse
Networks
Amphitheatre for the fiscal year ended June 30 2007.
Budget and Finance Committee Agenda
January 30,2008
Page 2 of 2
C. Acceptance of. 2005-06 Transportation Development Act Funds Financial
Statements— Nelson Smith
5. COMMITTEE COMMENTS
6. ADJOURNMENT
B A K E R S F I E L D
Ken Weir, Chair
John W. Stinson, Assistant City Manager Sue Benham
For: Alan Tandy, City Manager Irma Carson
AGENDA SUMMARY REPORT
SPECIAL MEETING OF THE BUDGET
AND FINANCE COMMITTEE
Thursday, Ocotber 25, 2007— 12:00 p.m.
City Manager's Conference Room —Suite 201
City Hall, 1501 Truxtun Avenue, Bakersfield, CA
The meeting was called to order at 12:04:16 PM
1. ROLL CALL
Committee members present: Councilmember Ken Weir, Chair
Councilmembers Sue Benham and Irma Carson
Staff present: John W. Stinson, Assistant City Manager; Rhonda Smiley,
Assistant to the City Manager; Rick Kirkwood, Management Assistant; Ginny
Gennaro, City Attorney; Raul Rojas, Public Works Director; Sal Moretti, Solid
Waste; Kevin Barnes, Solid Waste; Nelson Smith, Finance Director; Luda
Fishman, Solid Waste; Joshua Rubnick, Deputy City Attorney; Bob Sherfy,
Deputy City Attorney; William Macauley, Bakersfield Fire Department
Others present: Nancy L. Ewert, Kern County Waste Management; Larry
Moxley, Kern Refuse / MRC; Lorraine Unger, Sierra Club; Roland Burkert,
BARC; Greg Sanders, Varner Bros. Inc. / MRC; Bernard Le Beau, Le Beau
Thelen LLP; Bruce Keown, Superior Sanitation; Jon Price, Price Disposal; Jay
Price, Price Disposal; Jacob Panero, Varner Bros. / MRC; Dan Panero, Varner
Bros.; James Geluso, Bakersfield Californian; Carol Ferguson, 29 Eyewitness
News; Bob Ruthledge, Resident; Gene Cooks, 29 Eyewitness News; Tammy
Mills, KGET Channel 17
2. ADOPT APRIL 30, 2007 AGENDA SUMMARY REPORT
Adopted as submitted.
AGENDA SUMMARY REPORT Page 2
BUDGET AND FINANCE COMMITTEE MEETING
Thursday, October 25, 2007
3. PUBLIC STATEMENTS
Roland Burkert of Bakersfield Association for Retarded Citizen (BARC)
announced that the new industrial training facility project is moving forward. A
site plan will be submitted to the City within the next week, and construction
should begin between January and February 2008. Mr. Burkert provided a draft
letter and an overview to the Committee requesting City Council approval of a
resolution in support of BARC's Department of Conservation, Beverage
Container Market Development Grant application.
Committee member Sue Benham moved to place BARC's request on the next
City Council Agenda. Committee members favored the motion with all ayes.
4. NEW BUSINESS
A. Discussion regarding Solid waste Recycling Programs and Grant
Opportunities — Rojas.
Public Works Director Raul Rojas gave an overview of the Curbside
Recycling Report and options for the Committee's consideration. In 2006,
the City received a $1.5 million state grant for equipment to sort blue cart
materials. The City applied for an additional $1.5 million grant in 2007. If
the second grant is awarded, the City would have to present a full
proposal showing its commitment to implementing universal curbside
recycling program.
In response to City Council's request, staff prepared a cost estimate and
implementation plan for universal curbside recycling. Universal curbside
recycling would provide all homes in Bakersfield with blue recycling carts,
in addition to their existing refuse and greenwaste carts. The universal
service would add $3.00 per month or $36.04 per year to basic refuse
fees. Depending on various potential grant funds, along with fluctuating
revenue from the sale of scrap materials, future costs may be slightly
higher or lower than the estimated $3.00 per month. The universal service
would achieve an approximate 3% increase in recycling citywide and raise
the recycling rate from 58% to 61%. The current state legislature
requirement is 50%. However, the state legislature is attempting to
increase the 50% recycling rates. There are two new bills pending which
may require additional recycling beyond what the curbside program can
achieve. The pending bills will require a diversion rate of 60% by 2012
and 75% by 2020.
If approved, the fee increase would begin in the first year of a three year
phase-in to allow time to build up the necessary funds while equipment
AGENDA SUMMARY REPORT Page 3
BUDGET AND FINANCE COMMITTEE MEETING
Thursday, October 25, 2007
and a transfer facility are being built (full implementation of the transfer
station is set for 2020). The new service would provide new blue recycling
carts to the community approximately eighteen months after approval of
the program, and full implementation citywide by the third year.
Lorraine Unger of the Sierra Club and Larry Moxley of Kern Refuse / MRC
spoke in favor of a universal recycling program, but expressed concerns
regarding the long term vision of the program and the cost associated with
implementation. Nancy Ewert of Kern County Waste Management stated
that if the City moves forward with a mandatory program in redefining the
base service, the County will take that same recommendation to the board
of supervisors.
Committee member Sue Benham asked staff how the eventual building of
a transfer station relates to the implementation of the universal program.
Raul Rojas explained that if the City receives the grant, the equipment
purchased would integrate easily into a transfer station without a problem,
and the transfer station need not be in place in order to implement the
universal program. Mr. Rojas also commented that due to technological
advances within the next few years, it would be advantageous for the City
to implement the transfer station in increments.
Committee member Irma Carson expressed concerns regarding the
increased cost to taxpayers once the mandatory recycling program is
implemented. Committee Chair Ken Weir stated that the transfer stations
would benefit the City by reducing operating costs, eliminating emissions,
and placing the City in a position to receive grants from other entities.
Committee Chair Weir would also like to see what other options may be
available through private enterprise or public-private partnerships.
Committee member Benham moved to adopt staff's recommendation to
apply for the grant and implement a universal recycling program.
Committee members agreed with all ayes. Committee member Carson
and Committee Chair Weir requests that staff come back with an
alternate, long term, comprehensive plan with a time line and cost in
conjunction with the County.
5. ADJOURNMENT
The meeting adjourned at 1:13:14 P.M.
cc: Honorable Mayor and City Council
SACouncil Committees\2007\07 Budget&Finance\October 25 Special Meeting\October 25 Agenda Summary.doc
Budget and Finance Committee
JANUARY 2008 THROUGH DECEMBER 2008
All meetings will be held in the City Manager's Conference Room
DRAFT
[:]Committee Meetings - 12:00 p.m.
=Council Meetings BUDGET MEETING & PRESENTATIONS
Monday's @ Noon, Wednesday's @ 5:15pm
Hearing on 6111, Adoption on 6125
Holidays-City Hall Closed F-1 Joint City/County Meeting
_ JANUARY _ FEBRUARY MARCH
S M IT W TH F S S M T W TH F S S M T W TH F S
1 2 1
1 2 3 4 5 3 4 5 6 7 8 9 2 3 4 5 6 7 8
6 7 8 9 10 11 121 10 11 12 13 14 15 16 9 10 11 12 13 14 15
13 14 15 16 17 18 19 17 18 19 20 21 22 23 16 17 18 19 20 21 22
20 21 22 23 24 25 26 24 25 E26 27 28 29 23 24 25 26 27 28 29
27"28 291 30 31 30 31
APRIL MAY _ JUNE
S M T W THI F S S M T W TH F S S M T I W TH F S
1 2 3
1 2 31 4 5 4 5 6 7 8 9 10 1 2 3 4 5 6 7
6 7 8 9 10 11 12 11 12 13 14 15 16 17 8 9 10 11 12 13 14
13 14 15 16 17 18 19 18 19 20 21 22 23 24 15 16 17 18 19 20 21
20 21 22 23 24 25 26 25 26 27 28 29 30 31 22 23 24 25 26 27 28
27 28 29 30 29 30
JULY AUGUST _ SEPTEMBER
S M I T W ITHI F S S M T W TH F S S M T W I TH I F S
1 2 31 4 5 1 2
6 71 8 9 101 11 12 3 4 5 6 7 8 9 1 2 31 4 5 6
13 141 15 16 17 18 19 10 11 12 13 14 15 16 7 8 9 10 11 12 13
20 21 22 23 24 25 26 17 18 19 20 21 22 23 14 15 16 17 18 19 20
27 28 29 30 31 24 25 26 27 28 29 30 21 22 23 24 25 26 27
31 28 29 30
OCTOBER NOVEMBER DECEMBER
S M T W THI F S S M T W TH F S S M T W TH F S
1 2 3 4 1
5 6 7 8 9 10 11 2 3 4 5 6 —7-8 1 2 3 4 5 6
12 13 14 15 16 17 18 9 10 11 12 13 14 15 7 8 9 10 11 12 13
19 20 21 22 23 24 25 16 17 18 19 20 21 22 14 15 16 17 18 19 20
26 27 28 29 30 31 23 24 25 26 27 28 29 21 22 23 24 25 26 27
30 28 29 30 31
1400A40,
B A K E R $ F. I. E L 14.,
OFFICE OF THE CITY MANAGER
MEMORANDUM
January 24, 2008
TO: Budget and Finance Committee
FROM: John W. Stinson-,Assistant City Manager
SUBJECT: Audit Reports
Backup materials for the Committee meeting, including financial reports, were
distributed to the Honorable Mayor and City Council at the January 16, 2008 .Council
meeting. Due to the size of the documents, copies will be available for public review at
the Finance Department and the City Manager's Office. Staff will have copies available
at the meeting as well.
Please call if you have questions or concerns.
BA E
tl ADMINISTRATIVE REPORT
9 IFO
MEETING DATE: January 16, 2008 AGENDA SECTION: Consent Calendar
ITEM: f . Kr,
TO: Honorable Mayor and City Council APPROVED
FROM: Nelson K. Smith, Finance Director DEPARTMENT HEAD
]g!l(DATE: December 18, 2007 CITY ATTORNEY
CITY MANAGER Ps
SUBJECT: Audit Reports to be Referred to Budget and Finance Committee:
1. Comprehensive Annual Financial Report (CAFR)for the fiscal year ended June 30, 2007.
2. Independent Auditors Report — Single Audit Report — Schedule of Federal Expenditures for
the City of Bakersfield for the fiscal year ended June 30, 2007.
3. Independent Auditors Report — Compliance with Contractual Requirements relative to the
Bakersfield Subregional Wastewater Management Plan for the year ended June 30, 2007.
4. Independent Auditors Report on Appropriations Limit Worksheet (GANN Limit) of the City of
Bakersfield for the fiscal year ended June 30, 2007.
5. Independent Auditors Report— Rabobank Arena, Theater, Convention Center, Bakersfield Ice
Sports Center& Brighthouse Networks Amphitheatre for the fiscal year ended June 30, 2007.
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, 2007. The CAFR
represents the City's financial statements as of June 30, 2007, which are audited by the
accounting firm of Brown Armstrong Paulden McCown Starbuck Thornburgh & Keeter,
Accountancy Corporation. 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, 2007. 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 Brown Armstrong Paulden
McCown Starbuck Thornburgh & Keeter, Accountancy Corporation as part of their contract to
provide auditing services to the City of Bakersfield. The current compliance report issued by
1 of 2
SAAdmin\Admin Reports\2007 CAFR refer to bud.doc December 19,2007,3:55PM
BA g
O�amwouh RS
ADMINISTRATIVE REPORT
'LIFO _
the outside auditors indicates that the City complied, in all material respects, with federal
program guidelines.
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 was thirteen days late in submitting a tentative budget
to the Technical Advisory Committee for their review and approval. There were no other audit
findings.
4. Attached is a letter from the City's independent auditors Brown Armstrong Paulden McCown
Starbuck Thornburgh & Keeter, Accountancy Corporation 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.
5. Attached is the independent audit report for the Rabobank Arena, Theater, Convention
Center, Bakersfield Ice Sports Center & Brighthouse Networks Amphitheatre, for the fiscal
year ended June 30, 2007. This audit report presents the financial statements for this
operational unit as of June 30, 2007. The City is under contract with SMG to manage the
Rabobank Arena, Theater, Convention Center, Bakersfield Ice Sports Center & Brighthouse
Networks Amphitheatre facilities. As part of the agreement, SMG is required to submit an
independent audit report to the City after the end of each fiscal year. This audit report was
prepared by the accounting firm of Barbich, Longcrier, Hooper& King.
2 of 2
S:Wdmin\Admin Reports\2007 CAFR refer to bud.doc December 19,2007,3:55PM
B A K E R S F I E L D
CITY OF BAKERSFIELD
MEMORANDUM
TO: Alan Tandy, City Manager
FROM: Raul Rojas, Public Works Director
DATE: January 4, 2008
SUBJECT: Budget and Finance Committee item - .
Transportation Development Act Audit
The Independent Auditor's Reports for the Transportation Development Act Funds
for the fiscal years ending June 30, 2006 and 2005 were referred to the Budget and
Finance Committee at the November 7 2007 Council Meeting.
The attached Auditor's Report was prepared in compliance with the Kern Council of
Governments Rules and Regulations, the .California Public Utilities Code section
99245, and the California Code of Regulations section 6664.
The financial statement summarizes fiscal activity for_ the Bikeway and Pedestrian
Fund, and the.Public Transit Fund. The Bikeway and Pedestrian Fund accounts for
funds used to construct facilities that specifically benefit pedestrians and / or
bicyclists. The Public Transit Fund accounts for funds used for maintenance and
operation costs of the Bakersfield Amtrak Railway Station, The City is the owner of
the station and leases the facility to Amtrak, who operates the transit service. These
resources are used solely for the expenses incurred by the. City as owner of the
facility.
The accuracy and the fairness of the presentation is the responsibility of the City.
The audit firm of Brown Armstrong Paulden McCown Starbuck Thornburgh & Keeter
Accountancy Corporation has issued an unqualified opinion.
In relation to this audit, the Accounting Firm made one Finding and
Recommendation regarding expenditures which is discussed on page 14 of the
financial statement.
The audit process for the Transportation Development Act Funds.for the fiscal year
ending June 30, 2007 is currently underway and will be presented to the Budget and
Finance Committee at a future meeting.
G\GROUPDAT\Gwgina\Fund 145\05-06 TDA Audit~doc
A
ADMINISTRATIVE REPORT
MEETING DATE: November 7, 2007 AGENDA SECTION: Consent Calendar
ITEM:
TO: Honorable Mayor and City Council APPROVED
FROM: Raul Rojas, Public Works Director DEPARTMENT HEAD
DATE: October 19, 2007 CITY ATTORNEY
CITY MANAGER
SUBJECT: Acceptance of 2005-06 Transportation Development Act Funds Financial Statements.
RECOMMENDATION: Staff recommends referral to Budget and Finance Committee.
BACKGROUND: In compliance with the Kern Council of Governments Rules and Regulations, the
California Public Utilities Code section 99245, and the California Code of Regulations section 6664, the
attached financial statements for the Transportation Development Act Funds were prepared for the fiscal
year ending June 30, 2006.
The financial statement summarizes fiscal activity for the Bikeway and Pedestrian Fund, and the Public
Transit Fund.
The accuracy and the fairness of the presentation is the responsibility of the City. The audit firm of Brown
Armstrong Paulden McCown Starbuck Thornburgh & Keeter Accountancy Corporation has issued an
unqualified opinion.
In relation to this audit, the Accounting Firm made one Finding and Recommendation regarding
expenditures which is discussed on page 14 of the financial statement.
COPY
9l
GA GROUPDATWDMINRPT12007\11-07\Transp Dev Act Funds Financial Stm.doc
BUDGET AND FINANCE COMMITTEE
MEETING AGENDA FOR JANUARY 28, 2008
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BUDGET AND FINANCE COMMITTEE MEETING
Monday,January 28,2008
ATTENDANCE LIST
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