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Home My WebLink About03/02/22 CC AGENDA HIGHLIGHTS ��A��K�� HIGHLIGHTS ��~�"..�u~�� UU��UU ��U�� -n�p� """��""~~" " �v =~°==^ ~~~°~="=~~"� """"~~~ " ""=~� 0�v �� ~��0��0 �� ,��0�i��0-��0�� TmsSuVwoOF, �wqtO REGULAR MEETING 3:30 REPORTS Item 3o' Affordable Housing Strateg (All Wards) The [ity's Economic and Community Development Department's Affordable Housing and Neighborhood Vitality Unit has developed an Affordable Housing Strategy to assist in the City in evaluating future policy changes to spur housing development, identify additional funding opportunities streamline the research of existing sources to increase unit production, and provide tools to help spur growth and deliver development information to housing developers.As developed,these tools will serve as foundational components of the City's future efforts to increase financing mechanisms for housing development and pursue policies and programs to spur new growth. Item 3b' Proposed Charter amendments for the November 2022 General Election (AUU Wards)The Stipulated Judgment entered into between the City of Bakersfield and the California Department of Justice (DOJ) in August 2021 requires the Bakersfield City Council to prepare a proposed charter amendment for the November 2022 General Election "which will seek to permit the appointment of a person from an external agency to the position of Chief of Police." 4t the February 2, 2022 City Council meeting,the City Attorney's Office indicated that a proposed amendment to the Charter concerning the Fire Chief would also be prepared for consideration, in the event Council desires both Charter amendments (Fire and Police) to 0u before the voters at the same time. The City Attorney will provide a PovverPuint presentation to the City Council that outlines the current language of the City Charter regarding the selection of the Police and Fire Chiefs,as well as proposed amendment options for Council consideration. CLOSED SESSION /bcrns4, Various Items (AUU Wards) CONSENT CALENDAR-RESOLUTIONS Item 8f. (AUU Wards) The current combined unfunded liability as reported by the most recent actuarial report from CalPERS is over$503 million with a current funded percentage of66Y6. Aseparate irrevocable trust account called the Pension Rate Stabilization Program, could be used to both address the current unfunded liability and also adds budgetary flexibility. This flexibility allows the City to draw from accumulated trust funds to offset pension expenses if required pension contributions spike unexpectedly or if serious budgetary shortfalls occur in subsequent years. Investment options also add flexibility where the City will have complete local control over assets, including contributions, disbursements and the timing, amount, and risk tolerance level of investments.The only restriction is these monies must be used for pension related expenses. In 2007the City selected the firm Public Agency Retirement Services (PARS)to join and administer an Internal Revenue Code Section 11S Irrevocable Trust Account in an effort to comply with accounting standards. Since it's inception, this trust has accumulated annual actuarial determined contributions and related investment income resulting in a balance, as of December 31, 2021, of$95 million. Based on the most recent actuarial report, the OPEB liability is just over $116 million, which means that the plan is over 75% funded in comparison to being just over 4% funded when the Section 115 Trust was established. City staff is pleased with the service and administration of the current OPEB Trust by PARS over the past fifteen years. The fee schedule has a tier structure based on the current portfolio balance we estimate that annual administration costs will be in the range of$123,000 per year. Staff are recommending formation of the Plan and Trust for the City so that deposits into the Fund can begin and approves the updated investment guidelines for the Trust. In addition, the Adoption Agreement designates the City Manager (or his designee) as the Plan Administrator. HEARINGS Item 10a. Fourth Public Hearing Regarding Redistricting Ward Boundaries (AIIII Wards) Under the Bakersfield City Charter Chapter 11.1 and pursuant to the California Elections Code, following each decennial federal census, and using that census as a basis, the City Council is required to adjust the City Council ward boundaries so that the council wards are nearly equal in population. The Bakersfield City Council will be hosting its fourth public hearing on the Ward Redistricting process as an item on the City Council's regular meeting agenda. This hearing has been noticed to begin at 5:30 p.m.The presentation will be given by City staff and includes an overview of the City's ward redistricting process to date. Staff recommends Council comment and to provide staff direction.The public hearing is an opportunity to receive comments from the City Council and the public regarding the ward redistricting process and draft map. Public comments regardingthe ward redistricting process can be submitted at any time outside of a public hearing setting by any of the means available on the City's redistricting website: https://www.bakersfieldcity.us/819/Ward-Redistricting including by e-mail, online survey, mail, phone, or appointment. NEW BUSINESS Item 13a. Fiscal Year 2021-22 Mid-Year Budget Recommendations (All Wards) Each year the City Council adopts a budget, which commits finite resources to accomplish goals and objectives. The purpose of the City's Mid-Year Budget Report is to compare revenues received and expenditures made to budgeted amounts approximately 50 percent through the fiscal year, review available one-time funds, and consider budget adjustments and appropriations consistent with City Council Goals. Although the general outlook related to City finances is better than expected, staff is recommending limited adjustments to the budget that are dependent on ongoing revenues. However, staff is proposing several larger appropriations to projects and reserves from available one-time revenues derived from Fiscal Year 2020-21 general fund balance, Public Safety and Vital City Services Measure fund balance, and American Rescue Plan Act (ARPA) funds. Staff from the City Manager's Office and Finance Department will provide a mid-year budget presentation as part of this report. During the first quarter budget update provided to the City Council, staff noted available General Fund balance, PSVS fund balance, and ARPA fund balances for the most recently completed fiscal year ending June 30, 2021. These balances are comprised of revenues that exceeded revised projection, savings from positions that were vacant for any part of the fiscal year, and appropriations within operating budgets that were not encumbered or expended by the end of the fiscal year. The available General Fund balance is $29 million, the available PSVS fund balance is $20 million, and the available ARPA fund balance is $47.2 million for the first phase of funding. The proposed Fiscal Year 2021-22 Mid- Year Budget Adjustments and Appropriations are as follows: GENERAL FUND: Total $36,365,000 Staff will be recommending the use of these one-time general funds to allocate to several major City Strategic Programs and Capital Improvement Projects (CIP) being proposed - $29,365,000. Strategic Programs- $22,965,000: • $3 million for the next phase of Regional Public Safety Radio System Project • $250,000 allocation for Public Safety Camera Equipment • $250,000 allocation for Public Safety Drones Program • $2.2 million allocation for Self-Contained Breathing Apparatus (SCBA) • $140,000 allocation for Fire Department Safety Equipment • $75,000 allocation for Emergency Operations Plan (EOP) Update • $6 million for partial funding toward upgrading the City's 25 year-old Enterprise Resource Planning (ERP) Software. • $2 million allocation to the Section 115 Pension Trust Fund • $4 million allocation for the COLA Market Compensation Adjustment Set-Aside • $3 million allocation to cover FY 2022-23 Carryovers • $500,000 allocation to the City Facilities Reserve Fund to remain on track to reach 60 days general fund reserve status per adopted City reserve policy • $1 million allocation for Facility Conditions Assessment/City Facility Needs • $75,000 allocation for Grant Writing Assistance • $250,000 allocation for a Classification & Compensation Study • $75,000 allocation for Traffic Calming Study • $150,000 allocation for Transformative Climate Communities (TCC) Plan Grant Application & Project Management Capital Improvement Projects (CIP) -$6,400,000: • $1.4 million allocation for the Bakersfield Police Department Priority Facility Needs • $2 million allocation for the Mesa Marin Sports Complex Project • $500,000 allocation for the Convention Center Lobby Project • $250,000 allocation for the Bicycle/Pedestrian Feasibility Study • $250,000 allocation for the 28th Street Sidewalk Project • $1 million allocation for the Downtown Infrastructure Planning Project • $1 million allocation for the Downtown Streetscape Spruce-Up Project Conservative projections have identified an additional $7,000,000 in ongoing revenues that we anticipate receiving for this fiscal year. Staff recommends appropriating these revenues to fund balance, as opposed to allocating the funds to any programs at this time, as contingency for developing the annual budget for next fiscal year. PUBLIC SAFETY/VITAL CITY SERVICES:Total $23,580,653 Staff will be recommending the use of these one-time funds to allocate to several major City Strategic Programs being proposed -$20 Million. Strategic Programs- $20 Million: • $5 million for the next phase of Regional Public Safety Radio System Project • $10 million for partial funding toward upgrading the City's 25 year-old Enterprise Resource Planning (ERP) Software project. • $2 million allocation to the Section 115 Pension Trust Fund • $1 million allocation to the City Facilities Reserve Fund to remain on track to reach 60 days general fund reserve status per adopted City reserve policy • $2 million towards Economic Development Strategic Plan (EDSP) Implementation Based on revenue trends, staff is conservatively estimating PSVS revenues will exceed current year projections by $22 million. Staff will be recommending the partial use of these funds to allocate to a limited number of strategic ongoing positions, programs and services that directly correlate with City Council goals and PSVS Measure priorities, as outlined below: Strategic Programs- $2,000,000: • $2 million to fund the Downtown Redevelopment Plan Strategic Positions-$1,580,653: • Park Ranger Program (18 Park Ranger I, 1 Park Ranger III, 1 Administrative Analyst 1): $2,399,650 annual cost/$1,281,912 three-months cost including one-time start-up costs and purchasing 10 new PST trucks & equipment • Police Financial Services (Accounting Supervisor): $135,000 annual cost/$48,750three-months cost including one-time start-up costs • Technology Services (Division Manager X2): $296,424 annual cost/$85,706 three-months cost including one-time start-up costs • Clean City& Homeless Clean-up (Field Supervisor 11): $123,500 annual cost/$70,225 three-months cost including one-time start-up costs and a new truck& equipment • General Services Division (Administrative Analyst 1/11): $92,700 annual cost/$27,175 three-months cost including one-time start-up costs • Economic Development (Economic Development Manager): $147,351 annual cost/$38,838 three- months cost including one-time start-up costs • Economic Development (Administrative Analyst 1/11): $104,187 annual cost/$28,047 three-months cost including one-time start-up costs *All the positions listed above will be funded for the remaining 3 months of FY 2021-22. The FY 2021-22 annual cost for the strategic positions outlined above is $1,580,653. Ongoing annual salary/benefits costs for the above positions will be $3,298,812. ARPA FUNDS:Total $36,700,000 Staff will be recommending the partial use of these one-time funds to allocate to several major City Strategic Programs and Projects being proposed -$36.7 Million (Additional detail in Exhibit "A"). • $2 million allocation for California Violence Intervention & Prevention (CaIVIP) Program • $5 million allocation for Affordable Housing • $5 million allocation to the Brundage Lange Navigation Center (BLNC) Expansion Project • $7 million allocation for Direct Staffing Costs • $2.5 million allocation to Purchase Blighted Properties • $500,000 allocation for Home Access Program • $4 million allocation for Tourism Industry Program • $1.2 million allocation to the Food Bank Project • $4 million allocation to the Blue Zones Wellness Initiative • $500,000 allocation for Health Care Industry Funding Program • $2 million allocation for Workforce Development&Job Training • $1 million allocation for Facade Improvements Program • $1 million allocation for Economic Opportunity Area (EOA) Funding • $1 million allocation for Business District Revitalization Public Works Department Mid-Year Adjustments and Appropriations: Public Works Department requests the following new positions and appropriations for consideration at FY 2021- 22 Mid-Year budget. REFUSE &SEWER ENTERPRISE FUNDS: Grand Total $233,500 Staff will be recommending the use of these funds to allocate to several ongoing positions and services that directly correlate with City Council goals, as outlined below, but covered in more detail in Exhibit "A".: Strategic Positions-$233,500: • Solid Waste Division (Compliance Inspector): Refuse Enterprise Funds $101,600 annual cost/$64,400 three-months cost including one-time start-up costs and purchasing a new van & equipment • General Services Division (Electrical Technician I (X2)): Sewer Enterprise Funs $183,000 annual cost/$169,100 three-months cost including one-time start-up costs and purchasing two (2) new trucks & equipment *All the positions listed above will be funded for the remaining 3 months of FY 2021-22. The FY 2021-22 annual cost for the strategic positions outlined above is $233,500. Prepared by:Anthony Valdez, Assistant to the City Manager cc: Department Heads City Manager's File City Clerk's File News Media File