BUDGET, FINANCE AND ECONOMIC DEVELOPMENT
POST-MEETING AGENDA
REGULAR MEETING
April 22, 2024, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
Members
Andrae Gonzales
Eric Arias
Ken Weir
1. ROLL CALL
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
b. Non-Agenda Item Public Statements
3. STAFF REPORT
4. ADOPTION OF MINUTES
a. Adoption of the March 25, 2024 regular meeting minutes Staff recommends adoption of minutes
5. NEW BUSINESS
a. Bakersfield Sports Village Conceptual Commercial Renderings Staff Recommends Committee receive and file the presentation *1. PowerPoint presentation by ECD
b. Proposed Gate Fee at the Organics Recycling and Composting Facility for Commercial Debris
Staff recommends that the item be referred to full Council at the time the FY24/25 budget is considered.
6. COMMITTEE COMMENTS
7. ADJOURNMENT
ADMINISTRATIVE REPORT
MEETING DATE: April 22, 2024 AGENDA CATEGORY: Minutes TO: Budget, Finance and Economic Development Committee
FROM: Julie Drimakis, City Clerk
DATE: April 10, 2024
SUBJECT: Adoption of March 25, 2024 Regular meeting minutes.
[Document Description]
RECOMMENDATION:
Staff recommends adoption of minutes
BACKGROUND:
FISCAL IMPACT:
COUNCIL GOAL:
Choose an item.
ATTACHMENTS:
March 25, 2024 Minutes.
1 BUDGET, FINANCE AND ECONOMIC DEVELOPMENT
MINUTES
REGULAR MEETING
March 25, 2024, 12:00 p.m.
City Hall North Conference Room A
1600 Truxtun Avenue
Members Present: Andrae Gonzales
Eric Arias
Members Absent: Ken Weir
City Staff Present: Randy McKeegan, Finance Director
Josh Rudnick, Deputy City Attorney II
Jenni Byers, Acting Economic Development Director
Mario Orosco, Budget Officer
Joe Conroy, Public Information Officer
Sara Ortega, Deputy City Clerk
Michelle Cruz, Management Assistant
Gary Hallen, Assistant City Manager
Juan Heredia, Administrative Analyst III
_____________________________________________________________________
1. ROLL CALL
2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
Michael Turnipseed gave comments regarding item 4.a
Roman Matera asked questions regarding item 4.a
Roman Matera gave comments regarding item 4.b
2 b. Non-Agenda Item Public Statements
Roman Matera gave comments on potential Economic Development areas within the City of Bakersfield.
3. ADOPTION OF MINUTES
a. Adoption of the February 26, 2024, regular meeting minutes Moved by: Eric Arias
Staff recommends adoption of minutes
Approved with committee member Weir absent
4. STAFF REPORT
a. 2022 Audit Reports to be referred to the Budget Finance and Economic Development Committee
1. Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022.
2. Agreed Upon Conditions Report for the fiscal year ended June 30, 2022.
3. Auditor Communication with Those Charged with Governance (SAS 114 Letter) for fiscal year ended June 30, 2022.
4. Independent Auditors Report – Compliance with Contractual Requirements relative to the Bakersfield Subregional Wastewater Management Plan for the year ended June 30, 2022.
5. Independent Auditors Report on Appropriations Limit Worksheet (GANN Limit) of the City of Bakersfield for the fiscal year ended June 30, 2022.
6. Independent Auditors Report – Mechanics Bank Arena, Theater, Convention Center, Dignity Health Amphitheatre & Valley Children’s Ice Center for the fiscal year ended June 30, 2022.
7. Agreed Upon Procedures Report (Public Safety and Vital Services) for the fiscal year ended June 30, 2022.
8. Single Audit Report for the fiscal year ended June 30, 2022 Randy McKeegan, Finance director made staff comments and provided a presentation.
Eric Xin, partner at Brown Armstrong made comments.
Moved by: Andrae Gonzales
Staff recommends to accept the annual reports and refer them back to the City Council for final approval.
Approved with committee member Weir absent
3 b. 2023 CalPers Pension and 2022 OPEB Trust Updates
Randy McKeegan, Finance director made staff comments and provided a PowerPoint presentation.
Moved by: Eric Arias
Staff recommends receive and file presentation.
Approved with committee member Weir absent
5. NEW BUSINESS
6. COMMITTEE COMMENTS
Councilmember Arias, are we prepared to make presentation in the upcoming budget meetings talking about the health of each fund.
Randy McKeegan, made comments on the review and projection of all major revenue streams.
Councilmember Arias, made a request to receive more information regarding the general fund and taking a closer look at it for a better understanding of any challenges.
Chair Andrae Gonzales, made a referral regarding the section 108 housing would like to request a plan be developed utilizing section 108 to help with targeted Economic redevelopment projects. He would like to know the process and the timeline to implement a redevelopment plan and fund it through section 108.
7. ADJOURNMENT
Meeting was adjourned at 1:11 p.m.
_________________________
ANDRAE GONZALES, CHAIR
BUDGET, FINANCE AND ECONOMIC DEVELOPMENT COMMITTEE
4 ATTEST:
_________________________
JULIE DRIMAKIS, CITY CLERK
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
ADMINISTRATIVE REPORT
MEETING DATE: April 23, 2024 AGENDA CATEGORY: New Business TO: Budget, Finance and Economic Development Committee
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: March 14, 2024
SUBJECT: Bakersfield Sports Village Conceptual Commercial Renderings Presentation
Informational Item Only
RECOMMENDATION:
Staff Recommends Committee receive and file the presentation
BACKGROUND: On October 14, 2022, Economic and Community Development Staff (“Staff”) issued a Request for Proposals (RFP) for organizations providing urban planning and design services to conduct design concepts and visualizations for t he 40-acre city-owned commercial property located at the Bakersfield Sports Village.
Ordiz-Melby Inc. was selected to provide the professional services requested for the 40-acre commercially zoned site owned by the City of Bakersfield at the northeast corner of Gosford Road and Taft Hwy.
The presentation today is a result of those services.
FISCAL IMPACT: There is no request for funding
COUNCIL GOAL:
Community Character & Quality of Life
ATTACHMENTS: None
Sports Village –
Commercial
Corner
Economic & Community
Development Department
40 acres
Taft Highway and Gosford
Legend:
8Page 15 of 27
4/22/2024 9Page 16 of 27
ADMINISTRATIVE REPORT
MEETING DATE: April 22, 2024 AGENDA CATEGORY: New Business TO: Budget, Finance and Economic Development Committee
FROM: Gregg Strakaluse, Public Works Director
DATE: April 17, 2024
SUBJECT: Proposed Gate Fee at the Organics Recycling and Composting Facility for Commercial Debris (All Wards)
RECOMMENDATION:
Staff recommends that the item be referred to full Council at the time the FY24/25 budget is considered.
BACKGROUND:
The Organics Recycling and Composting Facility, in operation since the late 90s, is situated on 96 acres; 75 acres of which is utilized for the City’s organics recycling and composting operations. Under an agreement with Kern County, it also serves unincorporated areas within metropolitan Bakersfield. The facility’s operation has increased over time due to changes in federal and state rules and regulations as well as growth in population and housing. In 2023, the Organics Recycling and Composting Facility had a traffic flow of 92,500 vehicles and accepted and processed over 220,000 inbound tons of organic waste.
Currently, the fee structure charges an organic composting fee for residential green carts as part of the Single-Family Dwelling Unit ($279 per year per home) and commercial green carts or bins $57.81 per ton.
This fee applies to inbound organic waste brought from contracted haulers and other applicable entities within the state -mandated and city -facilitated curbside organics recycling program . Other commercial landscaping trucks and trailers are not currently charged for the organic waste they bring to the facility.
County facilities and landfills began charging for non-residential inbound organic waste since July 1, 2023, $61.79 per ton (proposed $64.88 per ton for FY24/25) . Since implementing that fee, commercial and landscaping trucks and trailers that were going to those facilities are now coming to City’s facilities to discard their organic waste free of charge. The increase in inbound tonnage has increased the workload for staff and increased the production of compost and mulch.
The increase in the production of compost and mulch has caused a few issues. Compost and mulch used to be sold to local farmers, homeowners, and nurseries at a minimal cost, providing some financial cost recovery since there was no fee being charged to inbound commercial vehicles. With continued statewide efforts for S enate Bill 1383, the market has since been flooded with recycled organic products, such as compost and mulch. Presently, the facility freely gives these products away, and still has difficulty moving the products at an acceptable rate in comparison to producing them. The compound effect of the increase in staffing workload, and inability to move the products has created additional operational costs that are no longer even minimally offset by product sales.
The Solid Waste Division is proposing an addition to the fee structure to go into effect at the beginning of the new FY24/25. The recommendation is to charge 3-axle and 4-axle commercial vehicles a fee of $59.25 (with 2.5% CPI increase) per ton. Over 4,800 of these types of vehicles brought over 35,000 tons of organic
waste to the facility in 2023. The proposed fee will be equivalent to the fee that is charged to curbside commercial customers in FY24-25. Estimated revenue is approximately $2 million dollars that can support the increased operations the facility will continue to undergo. The existing city/county agreement that outlines County’s cost share of 62% of expenses and will share in the anticipated revenue from the proposed addition to the rate fee structure. The County reimbursement will decrease appropriately based on the revenue collected.
FISCAL IMPACT:
This proposal has no impact on the General Fund, it is all related to Refuse Enterprise Fund. If approved, the Refuse Fund will collect additional revenue to support operational costs and ongoing maintenance of the facility.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
Presentation - Proposed Gate Fee at the Organic Facility
Proposed Gate Fee at the Organics Recycling and
Composting Facility for Commercial Debris
City of Bakersfield
Organics
Recycling and
Composting Facility
Organics Recycling and Composting Facility
• Established in the late 90s
• 96 acres (75 acres utilized for City organics
recycling and composting operations)
• 450 tons of daily incoming curbside organic waste
and commercial food waste
➢ In 2023, Mt. Vernon Organics Recycling Facility had
a flow of 92,500 vehicles and accepted/processed
over 220,000 inbound tons organic waste.
• City & County processor
Charges
• Residential:
Single-Family Dwelling Unit @ $279 per year per home.
(FY24/25 proposed $286 with CPI increase)
• Commercial:
Green Carts or Bins: $57.81 per ton
(FY24/25 proposed $59.25 with CPI increase)
• County Reimbursement:
62% of operational expenses
• Commercial landscaping trucks and trailers are not
currently charged for the organic waste they bring in.
Changes
• County Organic Fee Charge as of July 1, 2013
@61.79 per ton (Proposed $64.88 per ton
FY24/25)
• Processing more material due to Senate Bill
1383
➢ Market has since been flooded with recycled organics
products, such as compost and mulch.
• Limited buyers for end products (i.e., mulch and
compost)
➢ Presently, the facility freely gives these products away, and still has difficulty moving the products in comparison to producing them
• With the increase in staffing workload, and
inability to move products, it has created
additional operational costs that are no longer
even minimally offset by product sales.
Proposed Organic Facility
Changes
2 AXLE—NO CHARGE
2 AXLE—NO CHARGE
3 AXLE—CHARGE
4 AXLE—CHARGE
4 AXLE—CHARGEPage 25 of 27
Budget
FY24-25 Additional Revenue for 35,000 Tons = $2,000,000 (Note: due to City/County Agreement the Revenue net will be less to the City) 2023 Inbound Count & Tonnage of 3 & 4 axle vehicles
K - GRASS L - GRASS K - BRUSH L - BRUSH K - WOOD L - WOOD Count Tons Count Tons Count Tons Count Tons Count Tons Count Tons January 7 45.33 27 502.42 360 2279.25 1 8.85 6 22.18 0 0.00 February 0 0.00 25 438.42 373 2281.72 2 30.19 3 9.15 0 0.00 March 2 20.01 30 452.28 358 2094.95 0 0.00 3 11.96 1 7.38 April 5 78.77 36 558.33 266 1385.75 0 0.00 1 2.21 3 6.09 May 0 0.00 84 1794.66 319 1633.39 3 13.84 4 20.82 0 0.00 June 5 63.97 78 1634.70 294 1601.66 3 22.49 4 18.98 0 0.00 July 1 1.37 55 1137.50 257 1325.46 2 5.27 0 0.00 0 0.00 August 4 37.67 48 886.66 351 1995.67 4 16.51 2 9.68 1 3.82 September 0 0.00 73 1315.68 412 2161.84 1 7.38 2 8.14 0 0.00 October 1 11.31 78 1408.07 433 2360.51 6 89.53 1 2.50 3 10.79 November 1 3.04 41 714.40 383 2216.94 12 76.60 4 8.04 0 0.00 December 0 0.00 39 557.23 282 1692.56 1 5.03 3 18.82 1 4.99 Totals 26 261.47 614 11400.35 4088 23029.7 35 275.69 33 132.48 9 33.07 Note: K=3-axle, L=4-axle
Note: L - Grass Count/Tons reflects County Diversion GW.
Questions?