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HomeMy WebLinkAbout4/03/2009 B A K E R S F I E L D CITY MANAGER'S OFFICE MEMORANDUM April 3, 2009 TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager SUBJECT: General Information GOOD NEWS!!!!!!!!! • A sincere "thank you" to the supervisory and management employees for giving up their 4% COLA salary increase for 2010. They recognize that the City is in the midst of very difficult and unprecedented financial circumstances. Both groups are to be commended for making a personal sacrifice to lessen the damage to City operations and the services we provide the taxpayers. • KernCOG voted this week to support the scenario which will give the City of Bakersfield an additional $6 million for a total of $12.1 million to resurface arterial streets. The list of streets is attached. • It has been a longstanding Council goal to locate a federal courthouse downtown, and with the award of $31 million in federal stimulus funds to the General Services Administration this week, we are one step closer to its construction. This removes the conflict with the lack of funding available from the U.S. Marshals Service to build its part of the courthouse. The stimulus funding will require the construction contract to be awarded by 2010 and completed by 2015. Major thanks to Congressman McCarthy for his efforts to move this project forward! MORE ON THE BUDGET AND THE ECONOMY 1. Enclosed are more articles from various newspapers that highlight the difficult times public agencies are facing and how they are adjusting their budgets. MERCED, CA — The City of Merced is looking to layoff 52 employees in the coming months to balance a $10.2 million budget shortfall. Tentative lists of vulnerable positions, including 13 police officers and 7 firefighters, were given to employee unions last week. Other affected departments include finance, engineering, public works and inspections departments. The city has not had to make massive cutbacks since 1993. Honorable Mayor and City Council April 3, 2009 Page 2 MODESTO, CA — The Modesto Confidential and Management Association rejected the city's proposal to require its members to take 32 hours of unpaid furlough time by June 30. Three Modesto unions have accepted the furlough proposal and two have rejected it. SAN LUIS OBISPO, CA — San Luis Obispo County is facing a $30 million shortfall, and the supervisors have made it known that `nobody's untouchable'. So far the County Administrative Officer has identified 150 positions that may be eliminated, mostly through attrition. One idea that has surfaced is a "two-tier" wage and benefits system, under which new employees would receive lesser benefits than current employees. The unions are open to compromise but feel that the pain must be shared with public safety. PIERCE COUNTY, WA — The Pierce County Council voted to reduce the 2009 budget by $8 million. The cuts are designed to be surgical so that the county can continue to spend 76 cents out of every dollar on public safety. Reduced revenues have forced the county to focus on its core mission, which is to ensure the safety of its citizens. 2. A memo is enclosed from Public Works on the proposed FY 2009-10 refuse and sewer rates. No refuse rate increase is proposed for next year. Finance and Public Works have determined that the fee needed to cover costs and to service the debt payments on the bonds issued for the upgrade projects at Wastewater Treatment Plants 2 and 3 will need to be increased. Unfortunately, as a result of declining development activity and a commensurate drop in sewer connection fee revenue, more of the debt service payments must be covered through the sewer user fee. For a single family dwelling this translates to a 9.6% increase in the annual residential user rate from $178 to $195. 3. When the economic cycle was normal, Bakersfield had three RV dealerships and three boat sales stores. Now we have one each. Department store closings include two Mervyns, Harris, two Gottschalks, Circuit City, Stockdale Music, and others. Our sales tax generation has to continue to fall under these circumstances. 4. On March 26t", Moody's Investors Service issued a rating update that has affirmed the A2 rating on the City of Bakersfield Arena Certificates of Participation debt. As this is the only significant debt obligation of the City (excluding enterprise debt), it serves as a baseline City rating as Moody's continues to review and update ratings on our Wastewater Revenue Bonds and the pending Redevelopment Debt that is planned to be issued in the next few weeks. MISCELLANEOUS CITY NEWS California Water Service Co. will begin the task of converting its flat rate services to metered services in its Bakersfield district. The conversions are required by state law and are to be completed by 2025. Since 1994, all new connections are metered and Honorable Mayor and City Council April 3, 2009 Page 3 customers have been able to voluntarily convert, however, there are still many thousands of flat rate services to change out. A letter to each affected customer will be sent in advance of the conversion along with a "Frequently Asked Questions" sheet. As the conversion crews approach the neighborhood, a door hanger will be delivered a day or two before the work is started. Cal Water indicates it will make every effort to minimize the time the service is down and impacts on its customer's property, including landscaping, driveways, and walkways. A special webpage and a telephone hotline is being setup for customers to check the neighborhood construction schedule or answer questions. The majority of the work will occur in Wards 1, 2, 3 and 7. -� The results from yesterday's weigh-in for the City's Biggest Loser Contest are in. All teams are still participating and have lost 853 pounds, or 4%, to date. There is one more weigh-in left. This has been lots of fun and rewarding to all that are participating. The Streets Division work schedule for the week of April 6`" is enclosed. AT:rs:rk cc: Department Heads Pamela McCarthy, City Clerk Roberta Gafford, Assistant City Clerk APR 0 2 2009 /xw'� • B A K E R S F I E L D Public Works Department Memorandum DATE: March 27, 2009 TO: Alan Tandy, City Manager FROM: Raul Rojas, Public Works Director SUBJECT: Federally Funded Pavement Rehabilitation Projects The following lists are the anticipated Federally Funded Pavement Rehabilitation Projects. These lists include funding from the Regional Surface Transportation Program (RSTP) and the American Recovery and Reinvestment Act (ARRA): ARRA ($6 million) Ashe Road from White Lane to Ming Avenue Wible Road from Pacheco Road to White Lane Wilson Road from White Lane to Planz Road Hughes Lane from White Lane to Planz Road Mount Vernon Avenue from State Route 178 to University Avenue ARRA ($6 million subject to approval at KernCOG Board meeting on March 31, 2009) Ming Avenue from Ashe Road to New Stine Ming Avenue from Gosford Road to Ashe Road Coffee Road from Friant-Kern Canal to Riverlakes Drive/Meany Avenue RSTP Federal Fiscal Year 2009/10 (S4.2 million backfill to the RSTP Program) Old River Road from Ming Avenue to Stockdale Highway Stine Road from Panama Lane to Harris Road Stine Road from Harris Road to Pacheco Road (this segment subject to available funding) c: Brad Underwood Arnold Ramming Georgina Lorenzi Nick Fidler Reading File G:l eng\S HARE DIPROJECTS\2008-20091ESB Pavement ProjectsWEMO 032709.doc The Modesto Bee I Managers reject city proposal Page 1 of 1 The Modesto Bee modbee.com P Print This Article Posted on Fri,Apr.03,2009 Managers reject city proposal last updated:April 02,2009 11:07:16 PM The Modesto Confidential and Management Association has rejected the city's proposal to require its members to take 32 hours of unpaid furlough time by June 30.That means Modesto officials will have to look elsewhere to make up the $302,700 they had hoped to save by requiring furloughs in the MCMA.Kim Gillingham,MCMA's labor representative, said the union is encouraging its members to take voluntary furlough time. "We'll maintain our commitment to and our partnership with the city,"she said.Three Modesto unions have accepted the furlough proposal and two have rejected it. One more is scheduled to vote next week. This article is protected by copyright and should not be printed or distributed for anything except personal use. Copyright©2009,The Modesto Bee,1325 H St.,Modesto,CA 95354 Phone:(209)578-2000. httn://www.modbee.com/local/v-Drint/storv/652237.html 4/3/2009 City of Merced considers layoffs, buyout plan-- MercedSunStar.com :: Merced News, Real Estate, Jobs... Page 1 of 1 I II II Friday,Apr.03,2009 City of Merced considers layoffs, buyout plan Budget gap of $10 million may claim cops, firefighters By SCOTT JASON sjason @mercedsun-star.com Merced city government is looking to shed up to 52 employees in the coming months to balance a $10.2 million budget shortfall. Tentative lists of vulnerable positions, including 13 police officers and seven firefighters, were given to employee unions last week. Other affected departments include finance, engineering, public works and inspections departments. Nothing yet is finalized. Layoffs, while likely, are the last option. The city is evaluating buyouts, golden handshakes and a list of employee suggestions to save money. Officials are also hopeful federal economic stimulus money could keep some law enforcement and fire officers on the streets. "The idea is that everything is still changing," city spokesman Mike Conway said. The move marks the first time since 1993 that the city's been forced into massive cutbacks. As other cities around the state felt budget woes last year, Merced was able to tap $4 million in rainy-day money to cover the decline in revenue. It began an aggressive effort to freeze and eliminate vacant positions, which left about 50 positions unfilled. The budget gap grew larger this year, with 2008's final quarter showing an 18.96 percent decline in the city's sales tax compared with the 2007 fourth quarter. The city was left with no choice but to pare down its work force. Merced leaders must make the cuts by July 1, when a balanced budget must be approved. A memo went to all city employees in mid-March asking who would be interested in a buyout program. A full-time employee could get a week's pay for every year of service. Ten people said they're interested, though the city hasn't decided whether to move forward with such a plan. During its Monday meeting, the City Council will look at offering a golden handshake program to hasten the retirement of some longtime workers. Thirty-two city employees, including nine within the police and fire departments, have expressed interest in that. The plan, recommended by staff, would cost$1.5 million, but ultimately save the city about$2.6 million in salary and benefit costs this year. Employees asked about adopting a furlough program. While it's a viable way to save money, it's not a panacea for revenue shortfalls. Employees would have to take 100 days off, Conway said. "We are trying to be sensitive to the employees, but we also have to be sensitive to the public," Conway said. The city is planning to apply for economic stimulus funds meant to keep officers in the ranks. The federal government set aside $1 billion. The program funds an officer's base pay and benefits for three years. The city would cover the difference if the officer is paid more than the starting wage. The goal is for the city to bear the rest of the cost again by 2013. Reporter Scott Jason can be reached at(209) 385-2453 or sjason @mercedsun-star.corn. httn://www.mercedsunstar.com/167/v-print/story/771734.htm1 4/3/2009 San Luis Obispo County's website 04/01/2009 SLO County government work force gets a hard look ... Pagel of 3 7hurs(iay,Apr 2,200p Posted on Wed.Apr 01.2009 SLO County government work force gets a hard look at supervisor's meeting Bob Cuddy Times are tough and getting tougher, and county employees are going to have to adapt to that fact, a solemn Board of Supervisors said this week. In a two-hour discussion prosaically billed as a budget work session, supervisors sent the message to the county's 2,600 workers that"we are in the land of new truths," as Supervisor Adam Hill put it. "There's popular resentment out there." "To have a job is good news, and to hold on to your job is better news," Supervisor Katcho Achadjian said. The session evolved from a stultifying discussion laced with numbers and revenue projections into a sharp look at the county work force and the salaries and benefits the employees receive. Along the way participants floated the idea of reopening existing employee contracts, called into question the use of"comparable counties"to set salaries, and hinted that the prevailing wage ordinance could end up on a ballot. The discussion also revealed an apparent rift between public safety unions and other county unions, with the head of the county's employee association calling the union that represents sheriff's deputies the "rich Beverly Hills cousins" of county labor. County Administrative Officer David Edge told the board that it faced a $30 million deficit for the 2009-10 budget year, caused by a confluence of factors, including plunging property tax revenues and uncertainty from state and federal governments. He noted that 150 positions might be eliminated -- many by attrition— although that number remains fluid. "You don't get to increase the size of the pizza," Edge told supervisors; they must instead decide "how to slice it." Assistant County Administrator Gail Wilcox outlined possible cures for budget problems, including a so-called "two-tier"wage and benefits system, under which new employees would receive lesser benefits than current employees. Benefits and pensions are eating a large slice of Edge's metaphorical pizza. Wilcox added, however, that the employee unions are "pretty solid"against a second tier. Wilcox told supervisors that the average salary and benefits for a county employee come to$103,000. That is the result of contracts negotiated under several assumptions, the chief of which is that would-be employees will not come to San Luis Obispo County unless it offers salaries and benefits as good as other entities. That, in turn, evolves from a county law passed by voters in 1984 known as the prevailing wage ordinance. The language reads, in part, that county employees should be paid "at least equal to the prevailing wages for the same work for services in government and business." "Most counties make adjustments based on the financial situation,"Wilcox said, but San Luis Obispo County does not have that luxury because of the ordinance. Instead, in recent years San Luis Obispo County has used Napa, Marin, Santa Barbara, Monterey and Santa Cruz as its chief basis for comparison. However, the ordinance "doesn't say we have to compare ourselves to other counties,"Wilcox said Tuesday. Edge said the county had tried to compare itself to the private sector years ago, but the private sector was secretive about what it paid its employees. Wilcox said she believes that if the private sector were used for comparison, compensation for county employees"would drop httn://www.sanluisobisDo.com/news/local/v-print/story/671045.html 4/2/2009 San Luis Obispo County's website 104/01/2009 1 SLO County government work force gets a hard look ... Page 2 of 3 considerably." Supervisors Jim Patterson and Bruce Gibson said the board is relatively shackled because of union contracts. "We don't have many options," Patterson said. The exception is the so-called "Big Unit," an amalgamation of several unions covering 1,485 workers represented by the San Luis Obispo County Employees Association. The contract with the association expires June 30, and the county administration and union leaders are negotiating now. However, other unions could voluntarily open their contracts and renegotiate, supervisors noted. "We're extending a hand to our employee associations to work with us," Gibson said. Kimm Daniels, general manager for SLOCEA, noted that the trades and crafts union has done that, and said other unions under SLOCEA's umbrella are open to compromise. "We are at the table." But, she added, the pain must be shared, and the public safety unions have refused any givebacks. Supervisors have said public safety is their first priority when it comes to the budget. "They think you won't touch them," an angry Daniels told supervisors Tuesday. "We are really sick of the public safety folks believing they are the rich Beverly Hills cousins" of county labor, she said. "Nobody's untouchable," Hill replied. Dale Strobridge of the Deputy Sheriffs Association said he had not yet seen the tape of Daniels' remarks, but said that"it's bad form (to)criticize another union. But things are crazy right now." Supervisor Frank Mecham pleaded with unions to work with management lest voters take the question to the ballot. "There's a lot of discussion out there about a voter initiative that would take it out of our hands," he said. Supervisor Hill noted that the county had the "big stick"— layoffs—but did not want to use that. Achadjian said he had doubts about the notion that job seekers won't come here without increases. Other employers are in bad shape as well, he said. "The circumstances have to come into the picture. We have to deal with the bottom line. We can all bite the bullet," he said. March 31 BOS Gail Version Used I I I • I i Publish at Scribd or explore others: http://www.sanluisobispo.com/news/local/v-print/story/671045.html 4/2/2009 BCNG Portals Page (R) Page 1 of 2 Story Archives Keyword Search: I�J Ind6x 0 BACK SEND TO A FRIEND io FEEDBACK Advanced Search TDI-- Features Pierce County Council approves Archive 07.03.07--Status budget amendment Seekers: In Tacoma, benefits and Apr 01 2009 challenges to creating historic districts 06.01'07--Building The Pierce County Council voted March 31 to revise the 2009 History: A father-and- son team puts heritage budget to reflect lower-than-expected tax revenues as a result of trolleys back on city the economic recession. streets 05.31.07--Tacoma Streetcar: End of the The new budget reduces General Fund spending this year by $8 line, 130 miles north million -- from $289 million to $281 million. As is the case with 05.09.07 Ind x State award Pierce Count families and businesses virtual) ever for Index's historic Y � Y Y preservation coverage department in county government will have to make do with 04.19.07--BIA Bike less. Patrol: All eyes(and wheels)on the street 03.21.07--Mightier Council Chairman Roger Bush noted that the cuts are designed Than swords: to be surgical so that the count continues to spend 76 cents out Tacoma's political 9 Y P cartoonists of every dollar on public safety. 01.17.07--Streetcar Desires 12.27.06- The Dead "We have been forced to focus on the core mission of county Zone: Critics say two government, which is to ensure the safety of our citizens," Bush crumbling downtown said. "This budget does not take one single deputy garages kill the city's 9 9 P Y off our roads energy or one single corrections officer from our jail." 12.12.06--Putting History in the City's Future: An interview Executive Pat McCarthy gave department directors a variety of with Reuben McKnight means to reduce spending. For example, the Planning and Land 11.21.06--History Makers:Tacoma's Services Department expects to implement a nine-day furlough historic preservation for some workers pending agreement by a labor union, the Parks scene and Recreation Department is cutting back on facilities 0 group --Citizens maintenance and staff hours on various programs, the group turns its P 9 attention toward Port Department of Human Resources is reducing positions, and the of Tacoma Sheriff's Department may reduce marine patrols on Lake Tapps, 10.05. - Hall Monitors: A growing P anawa S Lake, Alder Lake and Puget Sound. Y online community focuses its attention on Community groups that receive government rants will feel the the city Y 9 P 9 9 10.02.06--Former pinch as well, with many getting cut by one third and some even Tacoma broadcaster more. However, the Executive and Council made it a priority to tunes into Winthrop's reserve funding for senior centers which provide social future P 9 � P 07.20.06--One activities, exercise venues and warm meals for one of the Downtown,Two community's most vulnerable populations. Different Pictures Tacoma Blogs BIA The Executive and the Council Members warned that more Exit 133 spending reductions might be necessary. They will closely Feed Tacoma monitor economic conditions and could consider revising the Flickr Tacoma 2009 budget again later this year if tax collections continue to Forward Tacoma Kevin Freitas decline. And the 2010 budget is likely to require more belt New Takhoman tightening. When In Tacoma... Beautiful Angle Blackwater Coffee Buzzard's Discs Capers(Downtown) Corina Bakery http://www.tacomadailvindex.com/i)ortals-code/list.cal?paper=88&cat=23&id=1520730&more=0 4/2/2009 3 12000 S A K E R S F I E L D CITY OF BAKERSFIELD PUBLIC WORKS DEPARTMENT MEMORANDUM TO: Alan Tandy, City Manager FROM: Raul Rojas, Public Works Director DATE: March 31, 2009 SUBJECT: Fiscal Year 2009/10 Proposed Refuse and Sewer Rates Starting with the good news, staff proposes no refuse rate increase for FY 2009/10. We were able to balance the FY 2009/10 proposed operating budget for the Refuse Fund based upon existing rates. Unfortunately, this will not be the case for the sewer fee. Both Finance and Public Works staff reviewed sewer rates for 2009/10 to determine the fee needed to cover costs and to service the debt payments on the bonds issued for the Plant 2 upgrade and the Plant 3 upgrade and expansion projects. A combination of connection fees and user fees are planned to fund this debt service. With the recent decline in development activity, there has been a commensurate drop in sewer connection fee revenue. Therefore, more of the debt service payments must be covered through the sewer user fee. Both the Finance and Public Works Departments recommend adjusting the annual residential user rate for a single family dwelling from $178 to $195. This translates to a 9.6% increase or a monthly increase of $1.42. Since all other sewer fees are based upon this single family rate, those rates will also increase by the same percentage. In order to meet the proposition 218 noticing requirements for residential accounts, staff must start the noticing process at the end of March. The residential rate adjustment hearing is scheduled for the June 10t" Council meeting. We will wait for your approval before commencing with the Prop 218 noticing. Industrial and commercial sewer service surcharge rates are exempt from Prop 218. Because of the complexity involved in computing these fees, this hearing is scheduled for the April 22 d Council meeting. This will provide staff enough lead time to make the revised surcharge rates effective at the beginning of the fiscal year. cc: John Stinson, Nelson Smith, Pam McCarthy, Kevin Barnes, Art Chianello, Luda Fishman, Rosanne Murdock, Georgina Lorenzi O� BAKE n �CORPORA,B U MEMORANDUM IF OR TO: Alan Tandy, City Manager FROM: Nelson K. Smith, Finance Director 4r 6 DATE: April 3, 2009 SUBJECT: Moody's Investors Service Affirms City Bond Rating on Arena Debt On March 26, 2009 Moody's Investors Service issued a rating update that has affirmed the A2 rating on the City of Bakersfield Arena Certificates of Participation debt. As this is the only significant debt obligation of the City (excluding enterprise debt), it serves as a baseline city rating as Moody's continues to review and update ratings on our Wastewater Revenue Bonds and the pending Redevelopment Debt that is planned to be issued in the next few weeks. The following excerpts are some of the key points in their recent rating release bulletin: The City's continued stable financial operations are a key credit strength, although Moody's notes that the coming years will bring significant challenges; to the extent that the city is unable to maintain its financial position in the face of these challenges, the rating could come under pressure. Declining residential real estate market expected to lead to decreased assessed values. Historically stable finances expected to come under pressure. Conservative management has enabled the city to increase its reserves in recent years, which will stand it in good stead as it faces current and coming challenges. Fiscal 2009 is proving difficult as well, with general fund revenues underperforming budget as a result of slowing sales taxes. Moody's believes the city is managing its financial position well, both as it reacts to current developments and as it prepares for the coming year. However, the circumstances within which it finds itself are extremely difficult, and events could well overtake its ability to make adjustments. Should the city find itself facing substantial drawdowns of its fund balances, either planned or unplanned, the current rating could come under pressure. While this rating update is pretty good news, it also confirms the fact that the rating agencies are extremely concerned with the financial condition of cities in general; especially California cities and those cities that experienced significant growth during the real estate boom a few years ago. The unprecedented decline in historically stable revenue streams such as property taxes and sales taxes are of specific concern and it is clear that credit monitoring will continue for the foreseeable future. Page 1 of 2 STREETS DIVISION — WORK SCHEDULE WEEK OF APRIL 6, 2009 — APRIL 10, 2009 Resurfacing/Reconstructing streets in the following areas: Preparing streets for reconstruction in the area between So. Laurelglen Boulevard & No. Laurelglen Boulevard, east of Gosford Road. Miscellaneous Streets Division protects: Working on the Mill Creek project. Working on the Aera Park project. Crack sealing on Ming Avenue between Buena Vista Road & Old River Road and on Calloway Drive between Meacham Road & Hageman Road. THIS SPACE INTENTIONALLY LEFT BLANK Week of Apd?6 2009-Work Schedule Page 2 of 2 STREETS SWEEPING SCHEDULE Monday, April 6, 2009 Between Golden State & 16th St. - "F" St. & Oak St. / Kern River Boundary; Between 34th St. & 30th St. - Chester Ave. & San Dimas St.; Between San Dimas St. & Beale Ave. — 34th/Bernard St. & Niles St.; Between Olive Dr. & Riverlakes Dr. (ext.) — Riverlakes Dr. & Coffee Rd. Tuesday, April 7, 2009 Between California Ave. & Brundage Ln. — Oak St. & Union Ave.; Between Renfro Rd. & Jenkins Rd. — Stockdale Hwy. & Kern River Bounda ry. Wednesday, April 8, 2009 City areas between Brundage Ln. & Ming Ave. — So. "H" St. & Union Ave.; City areas between Wilson Rd. & Pacheco Rd. — So. "H" St. & Union Ave.; Between Casa Loma Dr. & Planz Rd. — Madison Ave. & Cottonwood Dr.; Between Planz Rd. & Brook St. — Madison Ave. & Hale St. Thursday, April 9, 2009 Between Carr St. & California Ave. — Mohawk St. & Stockdale Hwy.; Between Stockdale Hwy. & Marella Way— California Ave. & Montclair St.; Between La Mirada Dr. & Chester Ln. — Montclair St. & No. Stine Rd.; Between California Ave. (ext.) & Stockdale Hwy. — N. Stine Rd. & 99 Hwy.; Between Stockdale Hwy. & Ming Ave. — New Stine Rd. & Ashe Rd.; Between Mountain Ridge Dr. & Ashe Rd. — Taft Hwy. & Berkshire Rd. Friday, April 10 2009 Between Ming Ave. & White Ln. — Buena Vista Rd & Old River Rd.; Between Stine Rd. & 99 Hwy. — Ming Avenue & Adidas; Between Panama Ln. & Birkshire Rd. — Gosford Rd. & Stine Rd. 1Neek of April 8_20D9 Work Schedule