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HomeMy WebLinkAbout10/05/2012 OFFICE OF THE CITY MANAGER October 5, 2012 TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager AT SUBJECT: General Information Unfortunate News • This week we received notification the State Department of Finance denied $27.9 million in enforceable obligations of the former redevelopment agency. In short, without a successful appeal, some of these obligations would fall to the City. This comes after some of the same obligations were approved during the Department of Finance’s previous review! The largest of the denied obligations would result in a $1.7 million annual impact to the City’s General Fund for the Arena debt. We are in the process of preparing the appeal – however, a combination of legislation language and Department of Finance protocol has made the appeals process blatantly unfavorable to appellant cities. A memo with further details is enclosed. Good News • The Final Environmental Document for the Highway 58 Gap Closure Project was signed this week. This is a significant benchmark for the TRIP program and we expect construction bidding will take place in January 2013! • A ceremony took place this week at the Friendship House to celebrate the opening of the new sports field. The City provided the financing from Park Development Fees. The Community Action Partnership of Kern constructed the facility and is responsible for the operation and maintenance. The residents of the southeast are very appreciative of the new asset to the area! Miscellaneous News • You may have read the enclosed article this past week, which outlines a $4.6 million agreement between the City of Fresno and the High Speed Rail Authority to fund a Local High-Speed Rail Business Support Services Program. The program includes funding to pay for City of Fresno employees to handle the multitude of issues affecting local business impacted by the High Speed Rail Project. In response to this news, we sent the enclosed letter to the High Speed Rail Authority requesting a similar plan be considered for the City of Bakersfield, as local businesses will likely experience the same issues. General Information October 5, 2012 Page 2 • Each quarter the Employee Incentive Team compiles a list of High Five Award winners. The enclosed documents highlight the individuals who were recognized for their exceptional work and/or customer service! Congratulations to each recipient! • Beginning October 8, traffic will be reduced down to one lane in each direction during construction of a project that will reconstruct Harris Road between Ashe Road and Summer Springs Drive. Access to side streets and driveways will be temporarily closed when adjacent reconstruction is occurring. Detours and alternate access points will be available during these closure periods. Drivers are urged to use alternate routes and avoid the project area if possible. The estimated date of completion is November 28, 2012. A news release is enclosed. Event Information  The Poco concert this weekend at the Bright House Networks Amphitheater marks the last show of the year in the Park at River Walk 2012 Concert Series. We look forward to ending the 2012 Series on a high note – and look forward to the continued success of the series next year!  The Park At River Walk 2012 Concert Series featuring Poco Oct. 6th at 8 p.m. Bright House Networks Amphitheatre Tickets: $10 Council Referrals  Councilmember Sullivan: o Street Resurfacing: Ming Avenue from Wible to Stine Report For your information, we enclose the following information:  The Streets Division work schedule for the week of October 8, 2012.  A letter from Bright House Networks regarding changes to its programming. AT:rs:ch cc: Department Heads Roberta Gafford, City Clerk OFFICE OF THE CITY MANAGER MEMORANDUM October 5, 2012 TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager AT SUBJECT: Post Redevelopment Update _____________________________________________________________________________________ As you are aware, in 2011, redevelopment was killed and AB 26 was enacted. AB 26 contained conflicts and lack of clarity, but was intended to allow for the collection of tax increment to pay off enforceable obligations, or valid debt, of the former redevelopment agency. Later, AB 1484 was passed to further clarify issues surrounding the enforceable obligations. Last week, the League of California Cities filed suit against the State over AB 1484 and the actions of the State Department of Finance (DOF) in that regard. Cities around the State believe that the DOF is fulfilling a State government assignment to collect monies for the State at the expense of former redevelopment agencies , with little or no regard for the validity of the debt. Attached is a list of excerpts from some past “General Information” memos which expressed concerns and provided information about DOF behaviors. Last July, we brought to your attention that, in our view, the DOF made errors totaling a value of about $8 million on our enforceable obligation list. They disallowed collecting tax increment on valid debt, in our opinion. We filed an appeal. DOF refused to hear the appeal (a Statewide decision) until the next ROPS (Recognized Obligation Payment Schedule) was submitted. We have just received feedback from DOF on the next ROPS. I regret to inform you that they did not honor our appeal on the $8 million and, worse, they reversed their opinion on a series of items they had previously approved , in an aggregate amount over the life of the debt that would total $27.9 million. Despite the fact that AB-26 specifically allowed for the collection of the tax increment for bond repayment, $17 million of the new “findings” are on the Arena debt, which was bonded in 1997! Honorable Mayor and City Council Post Redevelopment Update Page 2 Please note that the above numbers are based on the aggregate total of the debt over the remaining repayment schedule. The immediate loss of the project funding is $4.2 million, with debt service funding being rejected by $2.7 million annually. There is an appeal process, which we will pursue. Many would say it is not a very sincere appeal process. We note that the various findings, should our appeal not be honored, have impacts, as follows:  Arena Debt o $1.7 million per year for 10 years ($17 million) o Would be transferred to the General Fund  Section 108 Loans o $3.2 million o Would be removed from the Block Grant program over a period of years, significantly damaging that program and its benefits to low and moderate income individuals  20th Street Veterans Housing o $3.0 million o Project would be lost or delayed long term  Loan repayment to the Motor Pool and Risk Management Funds o $3.5 million o Would eventually be written off. In the long term , rate increases to City departments, including General Fund, would need to occur.  Millcreek Courtyard and Senior Residences o Could only proceed if $1.2 million in substitute funding could be found Summary At the end of the DOF letter, it states, “All items listed on a future ROPS are subject to a subsequent review. An item included on a future ROPS may be denied even if it was not questioned from the preceding ROPS.” Editorial comment is withheld. cc: Department Heads Attachment 1 Excerpts from “General Information” December 30, 2011 Redevelopment News  The State Supreme Court decision this week on redevelopment represents the worst possible outcome for our agency. The basic issue was whether the state legislature could charge us $5 billion in spite of proposition 22 being approved by voters in November 2010. Rather than deciding on that specific issue, the Court determined the action the legislature took to kill all agencies was valid – and that future action by the legislature could include recreating the agencies, but charging a fee to exist. The Court’s decision not only devastates us, it creates larger deficit for the State going into next year’s budget process. Where they make up for this additional shortfall, no one can say for sure. Redevelopment funds have been used to positively impact the community through projects such as: Rabobank Arena, Chester Avenue Streetscapes, Amtrak Station, Mill Creek, McMurtrey Aquatic Center, Bakersfield Ice Sports Center, Maya Cinemas and many affordable and senior housing projects. As a result of the Court’s decision, the source of these funds no longer exists. The Court’s decision totals 83 pages and is currently being analyzed by EDCD and legal staff for clarification related to current and planned projects. Staff will be providing more information to you once we receive clarification on multiple items. Additionally, editorial comment on the legislature, Court and lawsuit brought about by the League of California Cities and California Redevelopment Association would be warranted, however we will refrain for now. May 18, 2012 Miscellaneous News  As I have indicated previously, AB 26 (the redevelopment killer bill) is a poorly written law with multiple hurdles and potential obstacles. Every time we believe that we are on top of it, a new ruling comes out from the State Department of Finance or the League of Cities comes out with a revised legal analysis – things are literally changing daily! Most recently, the Governor has come out with a very unfriendly proposed revision to the law which would make decisions of the Department of Finance not subject to appeal and would capture all housing cash among other short sighted changes. On what will hopefully be a more positive note the Oversight Board meets for the second time next week and we look forward to building upon the cooperative effort of the first meeting! 2 Excerpts from “General Information” June 1, 2012 Miscellaneous News  The State Department of Finance continues to be a source of frustration to Bakersfield as well as many other cities around the state that once had Redevelopment Agencies. We appealed the DOF’s initial decision to invalidate $13 million in legitimate financial obligations. We did get one more loan approved for slightly over $5 million but they disallowed our appeal on $8 million. Oddly we had three section 108 loans - one was allowed and two disallowed when the circumstances were nearly identical. The Oversight Board, on two occasions, approved all of the loans and acknowledged their validity. We will now have to amend the block grant financial plan to cover the debt disallowed. This time we can cover it from personnel savings (our downsizing) and program income. If this continues it will take valued programs. We read stories from across the State of others who believe the Department of Finance is functioning outside the parameters of AB 26 - some have already filed suit. Some believe it is to meet the administration’s budget objectives. We will go through the stages of appeal process painstakingly trying to educate them. More to follow! July 13, 2012 Unfortunate News  As the successor agency for the former redevelopment agency, the City (and all others statewide) received the enclosed message from the Department of Finance this week, stating “This email serves as notice that Finance is no longer accepting revised ROPS or requests to reconsider denied items nor making any revisions to existing requests. Requests to reconsider denied or disputed ROPS items will be addressed in our January through June 2013 ROPS review.” Transl ation for us - we have $8 million in valid debt which has been improperly denied by the Department of Finance and now they will not even consider our appeal or look at the details which would contradict their previous decision. Apparently the State is feel ing empowered - with fairness, due process and equity seemingly secondary to the quest to take money from successor agencies. They say we can submit these items for review at a later time - no doubt with a follow up letter of blanket denial and refusal to consider the merits or weigh the facts. Additionally, the County Auditor Controller is being instructed to interpret the law in a manner that does not authorize them to release enough money to pay us the amount for the ROPS items which were approved by the Oversight Board and the 3 Excerpts from “General Information” Department of Finance. The County Auditor says we should amend the ROPS - on the same day of that advice by the County, the State Department of Finance came out with the ruling that they will not accept amended ROPS. This overall situation is going from bad to worse. I will spare the great deal of editorial comment that comes to mind as it seems unnecessary! July 27, 2012 Miscellaneous News  We have regularly relayed to you our concern about the State’s heavy-handiness related to the dissolution of redevelopment agencies. The enclosed article depicts what other cities around the State have experienced and what some are doing to challenge the State in regards to amounts the State believe cities owe. City staff continues to exhaust all avenues to protect those obligations which are related to redevelopment and allowed under state law. As always, we will keep you informed. August 10, 2012 Miscellaneous News  The State of California continues to pose a significant threat to City finances. The State Department of Finance, which is acting as the Governor’s strong arm in the dissolution of redevelopment, has come out with newly developed reporting guidelines which are designed to further restrict the cash flow needed by agencies to pay its bills. Staff continues to work diligently to meet the new reporting requirements, which seem to change daily with little or no communication from the State. The threat to former RDA debt service funding and project completion is very real. We are doing our best to communicate our true needs to the State, but we expect an uphill battle to obtain the cash needed to pay our bills in a timely manner. By George Hostetter - The Fresno Bee Thursday, Sep. 27, 2012 | 10:34 PM The Fresno City Council on Thursday morning agreed to accept $4.6 million from the state High-Speed Rail Authority to fund a Local High-Speed Rail Business Support Services Program. The deal is for three years and will, among other things, pay for extra city employees to handle the multitude of issues affecting local business when the super-train line is built across Fresno. About $3.4 million will go for staffing in four city departments: planning, public works, fire and public utilities. The remaining $1.2 million will go to the Economic Development Corporation Serving Fresno County for outreach to local businesses. City Hall and the EDC have a partnership to keep businesses affected by high-speed rail in Fresno and successfully competing. The council also placed four properties on the Local Register of Historic Resources: The C. Jarman Home at 385 N. San Pablo Ave. The J.R. Turner Residence at 815 E. Dudley Ave. The Pilibos Building at 830 Van Ness Ave. The Levinson Home, minus the 1991 sunroom, at 1636 Broadway. The family of former Fresno County Supervisor Doug Vagim used to live in the Levinson Home. - High Speed Railhttp://www.fresnobee.com/2012/09/27/v-print/3008995/fresno-accepts-... 1 of 1 10/4/2012 1:17 PM OFFICE OF THE CITY MANAGER MEMORANDUM DATE: October 4, 2012 TO: Honorable Mayor and City Council FROM: Caryn Claiborne, Administrator Employee Incentive Team SUBJECT: Employee Incentive Program The Employee Incentive Team is happy to provide you the list of High Five Award recipients for the third quarter of 2012. The winners of the random drawing are noted in bold. All of these individuals were recognized by their peers, supervisors, or members of the public for exceptional work and/or customer service. Each recipient is automatically inducted into the "High Five Club" for the fiscal year, and is also recognized monthly on each department’s communication board and on the City’s intranet page. We applaud these individuals for a job well done! Attachments This month, 16 employees were recognized for a job well done by their peers, supervisors, or members of the public. Congratulations are extended to ev eryone listed, as well as those who took the time to acknowledge the extra special efforts of City employees. Those highlighted with an asterisk are the recipients of a gift certificate, by random drawing. Award Recipient Department Submitted By: Tony Duckworth* Development Services Wanda Neal df Reginald Gardner* Development Services Wanda Neal Joe Gonzales* Recreation & Parks Sylvia Newland Raul Gurrola* Bakersfield Police Department Melissa Roark April Hares* Bakersfield Police Department Mark Davis Anthony Hernandez* Recreation & Parks Terri Elison Freddy Hernandez Recreation & Parks Terri Elison Ramiro Leon Jr.* Recreation & Parks Terri Elison Terry McCormick Daniel Maldonado Recreation & Parks Sylvia Newland Ignacio Morales* Development Services Wanda Neal Tanya Nousch Bakersfield Police Department Debbie Ogle Debra Ogle* Bakersfield Police Department Mark Davis Patricia Pacheco Recreation & Parks Coleen Blair Valerie Rodriguez* Recreation & Parks Terri Elison Stephanie Salmon CMO-IT Greg Cronk Mark Turk Development Services Wanda Neal High Five Award Recipients for July 2012 This month, 23 employees were recognized for a job well done by their peers, supervisors, or members of the public. Congratulations are extended to ev eryone listed, as well as those who took the time to acknowledge the extra special efforts of City employees. Those highlighted with an asterisk are the recipients of a gift certificate, by random drawing. Award Recipient Department Submitted By: Lisa Agerton Bakersfield Police Department Edwina Tripp Robin Bice CMO – City Clerk’s Office Roberta Gafford Ryan Bland EDCD Tricia Richter Jim Brown* PW – General Services Jena Covey Manuel Calvin Recreation & Parks Terri Elison Sam Chernabaeff* CMO – Human Resources Brittany Wearing Adrian Flores* Recreation & Parks Frank Hinojosa Roberta Gafford* CMO – City Clerk’s Office Amber Lawrence Gary Geise CMO – Information Technology Susan Alexander Raymond Gutierrez PW – Fleet Services Terri Elison Cindy Iger CMO – Human Resources Brittany Wearing Amber Lawrence City Manager’s Office Roberta Gafford Pedro Mancia* Recreation & Parks Greg Cronk Jerry Martinez* Recreation & Parks Greg Cronk Alberto Michel PW – Fleet Services Terri Elison Lisa Najera CMO – City Clerk Cindy Iger Miguel Raya* PW – Fleet Services Terri Elison Joshua Rudnick City Attorney’s Office Tessa Andrews Adrian Santana* Recreation & Parks Frank Hinojosa Debbie Scanlan EDCD Donna Barnes David Vanbrunt* Recreation & Parks Terri Elison Abrina Wade* Bakersfield Police Department Tessa Andrews Natalie Welty CMO – City Clerk’s Office Lorraine Reza/Roberta Gafford High Five Award Recipients for August 2012 This month, 19 employees were recognized for a job well done by their peers, supervisors, or members of the public. Congratulations are extended to ev eryone listed, as well as those who took the time to acknowledge the extra special efforts of City employees. Those highlighted with an asterisk are the recipients of a gift certificate, by random drawing. Award Recipient Department Submitted By: TJ Bernard PW- Wastewater Patricia Banducci Robin Bice CMO – City Clerk’s Office Jennifer Obert Bonnie Bradshaw* Bakersfield Fire Department Toni Crosby Jose Diaz PW- Streets Janet Tucker Robert Hamer PW- Streets Gilbert Alemao Tyler Kinney* Bakersfield Police Department Kim Stanifer Steve Looney* PW- Wastewater Patricia Banducci Ignacio Morales Development Services Mark Turk Jennifer Obert* CMO- City Clerk’s Office Roberta Gafford Jerry Pina* PW-Solid Waste Daniel Maldonado Andrew Puetz Bakersfield Fire Department Matthew Moore Lorraine Reza* CMO-City Clerk’s Office Roberta Gafford/Maria Mojica Jack Rice* Bakersfield Fire Department Matthew Moore Eloy Romero PW-General Services Sean Cacal Brian Schramm* Bakersfield Fire Department Matthew Moore Edwina Tripp* Bakersfield Police Department Cindy London Ben Van Etten PW – General Services Sean Cacal Brittany Wearing CMO-Human Resources Sandra Forsythe Natalie Welty* CMO-City Clerk’s Office Amber Lawrence High Five Award Recipients for September 2012 Public Works Department Raul Rojas – Public Works Director PRESS RELEASE FOR IMMEDIATE RELEASE Contact: Rick Millwee Thursday, October 4, 2012 Construction Superintendent (661) 326-3049 The City of Bakersfield has started a project that will reconstruct Harris Road between Ashe Road and Summer Springs Drive. Beginning on Monday October 8, 2012, traffic will be reduced down to one lane in each direction during construction. In addition, access to side streets and driveways will be closed only for the period of time that reconstruction is occurring at that intersection. Detours and alternate access points will be provided during these closure periods. This will result in traffic delays, so drivers are urged to use alternate routes. The estimated date of completion of this project is November 28, 2012. The City thanks the public for their patience during this period. For more information, please contact Rick Millwee, Public Works Construction Superintendent, at (661) 326-3049. # # # City of Bakersfield • Public Works Department • 1501 Truxtun Avenue Bakersfield, California • 93301 (661) 326-3724 • Fax (661) 852-2120 Week of October 8_2012_Work Schedule Page 1 of 2 STREETS DIVISION – WORK SCHEDULE Week of Oct. 8, 2012 – Oct. 12, 2012 Resurfacing/Reconstructing streets in the following areas: Reconstructing streets in the area Manley Ct & Angela Way Sealing streets in the area between Fairfax and Mt. Vernon Ave north of College Ave Resurfacing streets with oilsand in the area between Niles and Bernard from Union to Alta Vista Grinding & Resurfacing on Harris Rd between Buena Vista & Old River Rd, White Ln between Old River Rd & Gosford and on Old River Rd from White Ln to Ming Ave Miscellaneous Streets Division projects: Video inspection of City owned Sewer & Storm lines to evaluate condition of pipes Paving base top lift of asphalt on Bedford Green between 184 & 178 Miscellaneous concrete repairs throughout the city Paving Trailer Mart access road and clearing debris from the old Trailer Mart site Installing handicap ramps at Columbus St & Bucknell St, Columbus St & Berkeley St and Columbus St & Dartmouth St THIS SPACE INTENTIONALLY LEFT BLANK Week of October 8_2012_Work Schedule Page 2 of 2 STREETS SWEEPING SCHEDULE Monday, October 8, 2012 Between So. “H” St. & Union Avenue – Pacheco Rd. & Hosking Rd. Between Stockdale Hwy. & Truxtun Ave. (ext.) – Coffee Rd & Partridge Ave. Tuesday, October 9, 2012 Between 99 Hwy. & So. “H” St. – Ming Ave. & Panama Ln. Cul-De-Sacs on the north side of Magdelena Ave., west of So. “H” St. Wednesday, October 10, 2012 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, October 11, 2012 Between Carr St. & California Ave. – Mohawk St. & Stockdale Hwy. Between Stockdale Hwy. & Marella Wy. – California Ave. & Montclair St. Between La Mirada Dr. & Chester Ln. – Montclair St. & No. Stine Rd. Between California Ave. (ext.) & Stockdale Hwy. – No. 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, October 12, 2012 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. NOTE: If raining, there will be no street sweeping service and all street cleaning personnel will be assigned to cleaning plugged drains and part circle culverts. This also applies when a large number of street sweeper are in Fleet for repairs which is the current case. Areas that have been missed during this time will be swept at the end of the month.