HomeMy WebLinkAbout10/29/2010TO:
FROM:
SU BJ ECT:
OFFICE OF THE CITY MANAGER
MEMORANDUM
Octobei
Honorable Mayor and City Coun '
Alan Tandy, City Manager
General Infori�nation
➢ Enclosed you will find copies of letters sent to North Kern Water Storac
and the response we received from them regarding water contr<
expiring in 2012. Even though they were given similar letters in 1994 c
they are feigning surprise and some media coverage will follow s
summary, contract sales that have been going on under a 35-year
expire in 2012, and we have an opportunity to restore seasonal flows to
River at that time, recharge the water table and receive the envir<
benefits of at least having a few months of a real river in average prec
years.
y The 56th annual City of Bakersfield Teen City Government Day will tal
next Wednesday, November 3, 2010. Students from the seventeen c
schools will be partnered with City staff in the morning to gain on-the-jc
into City operations. One representative from each high school will als
the Council meeting that evening, and will experience, first hand, how tf
meeting process works and see policy-level decisions being made.
BUDGET NEWS
! FRESNO: The Mayor presented an idea to the City Council last week th�
off 30 employees and trim departments in an effort to close a$10
budget gap. Much discussion took place, but no decision was reached
! MERCED: The City of Merced has a General Fund deficit of approxin
million. Officials estii�nate that if they cannot find a solution in the next t�
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Honorable Mayor and City Council
October 29, 2010
Page 2
The Wall Street Journal published an article this week regarding the
market. Economic analysts predict that while sales picked up in the SeK
the picture is bleaker than originally thought, and that a recovery will n
until 2012.
The attached article from the Los Angeles Times provides some good
related to the sales tax decline statewide.
A new forecast by University of the Pacific predicts continuing job loss
Valley through 201 1. The two-year outlook is a significant downgrade fr
the Stockton economists predicted just three months ago. The basi
conclusion is that construction, home prices and other factors have not
to expectations.
MISCELLANEOUS NEWS
The following reports are enclosed:
• Activity Report for the period of July 1, 2010 to September 20,
the Economic and Community Development Department; and
• Streets Division's weekly work schedule.
RESPONSE TO COUNCIL REFIERRAL
Councilmember Benham
--a Report from �the Police Department regarding parking enforce
18'h Street.
AT:rs:al
•
��� �t E R S F I E � D
bVA�'Ef� R�S�uRCES DEPAF�T11f1��#T
,'�.,-: k� �l���������I1��, P.E. • b��later R�so�irces �.laE-�ac��r
September 16, 2Q10
VIA U.S. MAiL
Richord Diamond, General Manager David R. Ansola�ehere, Generai Manac
North Kern 1Nater Storqge Districi Cawelo Water District
P.O, Box 8]435 17207 lndustrial Farm Roc�d
Bakersfield, CA 9338Q-1435 8akersfield, CA 433�8
Steven C. Daike, General Manager
Kern-Tuiare Water District &
Rag Gulch Wcrter Districfi
5001 Californio Avenue, Sulte 202
Bakersfield, CA 93309
Re: City of Bakersfield Agreements fot Sale of Kern River 1Nate�
#76-6�, #76-b1(i ), #7`6-62, #76-63, #76-63(l ) & #76-89
Dear Gentiemen:
As you know, the City of Bakersfieid {"City") entered into Agreemen� Nos. 7b-bl
76-61(1 }, 7b-b2, 76-63, 76-63{� ) and 7b-84, ail of which were en�itled "Agreement for fiY�
Sale of Kern River Waier ar�d Canafs," with your dPstricts in 1976, shortly af�er the Cit��
purchased all of the Kern River wo�er rights and related property held by ienneco WE
Inc., and formerly heid by fihe Kern County tand Company.
Pursuant #o those agreements, the City agreed to seil 20,000 acre feet per yea
(afy) of non-uti�ity Kern River water, subject fo various �imitutiors, ta the North Kern 1�'Va
Storage District; 23,OOQ a�fy �f non-utiiity Kern River wai'er fio the Kern-Tulare Water D�stri
and the Rag Gulch 1Nater pistrict; and 27,DOd afy to the Cawelo Wa�er D9strict.
Each of fihe agreements has a"Basic 1'erm" of 35 years, which commenced or
January 1, 1977. At the co�clusion of fhe 35 year Basic Term on December 31, 201 l, t
Ci#y's obligation to defiver v+rater to the disfiricts und�r the 8asic Term o# the agreemer
will terminate, subject to an obligat�on to delEVer any remaining "Basic 6�uantities° of
water to the districts. (5ection 3.3(b).)
City of Bakersfield Agraemen�s for Sate o� Kern River Water Page 2
# 76-b1, � 76-61(1), ## 76-62, � 76-63, # 7b-63(1) &# 76-89
September 16, 2Q10
shows a need to �nd the impiementafiion of a Projec� to divert alE or any porfiion of t�hE
Basic ��antity fo: use within its boundaries or for use on City-o��Nned prope�ty" {Sec�io
3.3(b}.} The c�greemeni�s further state that "alf other water availabfe to Ciiy for its nee�
shail be first appli��i to Cf#y's requiremen#s" ({d.}.
## is apparent from the (anguage of the agreements tha� the City csnd #he dis#ric
ali anticipated fihat the agreements would not survive in per�etuity. They were set up
as "long-term" (3� year} agreerrzents to enable the districts to be assu�ed o€ a water
supply for the near future and to allow the districts ample time to secure aliernative
supplies when the Basic Tera-n of the agreements expired. Tf�e Cifiy, of course, did not
permanen#ly firansfer wtiter or water rights fio the disfricts under the ag►eements.
The City entered inia the agreements because it did nat have an irnmediafe
demand for a3i of the water accruing fio the rights it had just purchased from Tenneco
SEnce the execution o#the 39?b agreements, the Ci#y has been consistent and open ir
its policy that the City's Kern River wate{ is intended for tne use within the existing and
fu#ure inco�porated boundaries of the City.
The agreerner�ts each state, in the preambie:
"WHEREAS. City has determined that under exisiing conditions and for an
�nterim period of time certain of said water and water ri�hts w�f! not be
neecle� by Cifiy for i�s own use." (�mphasis added.}
At the half-way point of the agreements, the districts received letters fror� the
City, dated 1VIay 11, 1994, informing them thc�t the Ciiy`s ability to satisfy its beneficiai
uses woufd ul�imately require the City's fulf utilization of its Kern River water rights. 7he
City warned #he disfiricts that it was highiy !rl�ely fihafi the City would En-fact neec! fio ufiili;
ail Kern River wafier a!locafied under the agreemen#s. The City encouraged the distric
to plan �or substitute water to offset the anticipated loss of Kern River water received
under the agreemenfis.
In a fetfier dated August i0, 2Q06, �he Ci�ty again info�med the districts fihafi" it
c�ppears the Ci#y wili need and use its Kern River water that is presently deiivered unde
the 1976 Agreem�nts," The City also informed #he con#racfors: "As we approach the
final 5 years of the 1976 Rgreements, the districts should be well into the planning and
coordina#ion of a reptacement supply for any of the City Kern River water that may bE
needed by City for its use."
City of Bakersfield Agreements ior Saie of Kern C�iver Water Page 3
# 76-61, # 76-b � (i �, # 7b-b2, # 76-63, # 76-63{i ) & # 76-89
September 1 b, 2010
able to rnake wa#er availc�bfe to the distric#s affer the expirati�n of �he BQSic Term of
the ogreemen#s in Decem�er, 2�11. ihe City, of course, wil! st�ll satisfy its obfigotior►
under the agreernents to cfeliver any remaining quantities af the cumulafiive "Basic
�uanfity" of water fo eac� distr�ct affer December, 20� 1.
The City expects thcrt it wili "shaw a need" and demand for a{! ?0,00� afy ot thE
Basic Qupntily o# water for use within its bo�ndaries affer December, 20l 1. The Ciiy's
current Kern River wa#er supply, in fact, is not sufficieni to rneet alf of the presenfi and
projected demands for water within fihe City,
The City, for exampls, has an increased commitment to provide defined
quantities of wa#er fio wcrter treatment plants operated by the California WUc�ter Servic
Company. The Ciiy �as also identified a demand #or increaseci groundwater
�eplenishment to address and ailev�ate raoidly deciinfng groundwater levefs.
The City has inciicat�d on a number of occasions that it wouid likely need tc p�
the 70,000 afy of 'rCern River water alfocated under �he i 976 agreements to muf#ipEe,
reasonable, and beneficiai uses affer the expiration of fihe Basic Term of the
agreements. �n the 1988 EIR for the Kern River Par�cway, �or example, the City ic�entifie
a need for "more Kern River water fkowing in the river chan�e( for direct groundwater
recharge of underlying aquifers" (p. 17-4.). The ��R indicated #�at the City woufd
eventua(Ey have an average annua! supply of over 200,000 afy of "surface supply"
available to meet the need for increased Kern Rfver flows, but #hat "up unfiil thafi time,
however, in order for �he C�fiy to finance the Kem River acquisi�ion it wos necessary to
contract wifh and sefl water to five local wafier districts over a 35-year per�od" ((d.}.
The City once again encourages each dis#rict to plan for substitute water or
make other appropriate plans or efforfis to offsefi the expected foss of Kern River wa#er
received under fihe 1976 agreements affer �ecember, 2011.
If any district has any ques#ions, disagreements or dispuies with regard to the
1976 agraements an� the matfers stated herein, please le� us know as soon as possibl�
Sincerely,
. j -
� � �� ' t.. i J .. '. ' � :" �
Art Chianello
Water Resource Manager
Citv of Bakersfield
P.O. Box 8l43S
Bakersfield, CA 93380•1435
Administntian
Telaphone: b61-393-2696
Facaimile: b61-393-6884
�
33380 Ca�
Bstersfield, CA
Witer Orders snd
Telephome: 6�
Tel�phone: 66
NC)��'H KER1�T WA.TER STaRAGE DIST�
October 20, 2010
Mr. Art Chianello
Water Resources Manager
City of Bakersfield
1000 Buena Vista Road
Bakersfield, CA 93311
D ��
Q�
�IfiY B� �
W�fi�� �
Subject: September 16, 2010 Letter Regarding Agreements for Sale of Kern River Wate
Dear Mr. Chianello,
North Kem Water Storage District (North Kem or District) is in receipt of the City of
Bakersfield's (City} letter to North Kern, Cawelo Water District and Kern-Tulare Water :
(collectively the "Agricultural Contractors") dated September lb, 2010.
Although your letter recites �xcerpts of previous conespondence from the City to th�
Agricultural Contractors with regard to the availability of water after 2011, we are, frank.
perplexed by the conclusion of the current letter that the City will "`show a need' and de�
for all 70,000 afy of the Basic Quantity of water for use within its boundaries after Decer
2011" since this conclusion is wholly inconsistent with alI of the following:
• Proposals made by the City as a part of our recent Kern River "settlement discuss
• Discussions that the Agricultural Contractors have had with the City since at leas�
regarding proposals to continue deliveries of water to the contractors during the
contract's "extensiorn term" in conjunetion with providing recreational flows in th
River ("wet river program"}; and
• The December 2008 "Evaluation of Agreements for the Sale of Kern River Watei
prepared for the City by Stetson Engineering.
Prior to the September 16`� l�tter, in the above discussions and technical reports the City :
consistentiv indicated that tri.e A�ricultural Contractors wouid continue to reeeive substar
Mr. Art Chianello
City of Bakersfield
October 20, 2010
Page 2
is almost unbelievabie and certainly brings into question the City's intentions with regard
the settlement and Agricultural Contractor discussions. We must assume that the City is i
possession of new technical data and reports establishing significantly different water sup
and demands than previously represented. If that is the case, we request that the City pro
the Agricultural Contractors with all new technical data or reports which substantiate the �
representation that it will need the entire Basic Quantity supply in 2012.
Because the City's proposed abrupt reduction in water supplies available to the Agricultw
Contractors are likely to cause significant adverse environmental and economic effects wi
Agricultural Districts and the region, we must insist that the City provide a complete and �
description of the City's proposed plans for "implementing a project" to divert a1170,000
the "basic quantity" water fcar use within the City so that we can determine whether such
project complies with the tertns of the contracts. Additionally, we request that prior to th�
taking any action on such a�roject that the City prepare, pursuant to the California
Environmentai Quality Act (�ublic Resources Code §§21000, et seq), an Environmental l
Report evaluating all the significant environmental effects of the City's project, including
implementation of ineasures to mitigate or avoid all significant effects caused to the Agri�
Contractors.
Furthermore, as explained in the District's letter to the City dated August 3, 1994, North :
continues to preserve it's previously asserted claims regarding the nature and extent of th�
"rights" transferred to the Ci�y by Tenneco West, Inc.
Finally, recognizing the substantial effort expended by the Agricultural Contractors with
and others over the last several years on the proposed "wet river program", a face-to-face
meeting between the Contractors and the City is essential to fully discuss this matter. Wf
contacting you very soon to schedule this meeting.
Sincerely,
S�_
,� �_
Richard A. Diamond, General Manager
North Kern Water Storage II�istrict
Money in Merced city coffers trickling a`vay -- MercedSunStar.com :: Merced News, Real Estate, :
Thursday, Oct. 28, 2010
Money in Merced city coffers trickiing away
General fund deficit, tapped reserves add up to bleak financia! forecast.
By AMEERA BUTT
abutt@mercedsun-star.com
TP�e city of Merced has a general fund deficit of about $5 million -- and if it doesn't find a solution to the structural imbalance between its
years, the city's coffers will hold "$0" by the end of 2013.
"What lies beyond that is bankruptcy," said Bill Cahill, assistant city manager. "The reserves are being drawn down at such a rate this pa�
two years of time remaining before there would need to be serious consideration of filing bankruptcy."
Moreover, if the city's current trajectory plan of using various taxes -- such as utility-users tax and transaction-and-use taxes -- to increa
the city will have to fall back to a"Plan B."
7�hat plan, hypothetically, would save the city $5 million by a cost reduction in compensation or retirement and benefits, potential I�yoffs
duties to noncity entities, such as mowing p�rks and certain janitorial services carried out in the city.
The general fund is the fund where most of the city's discretionary money is accounted for. In previous meetings, the council unanimousl�
by the staff on utility-users taxes and transaction-and-use taxes. Utility-users taxes are imposed on the consumption of utility services, s�
gas, water and sewage. T�ransaction-and-use taxes are add-on sales taxes and similar to Merced's Measure C, and are sales taxes that ca
services in public safety and transportation,
The taxes could offer a new so�rce of revenue and solve the budget shortfalls in future fiscal ye�rs.
But only if the survey results from the consultants the city hired are positive. The city will begin to poll people next month, accordiny to N
spokesman.
Cahill said the polling results would be available to the city in .7anuary. Then the council has to decide whether to put the measure on the
Finally, voters could vote no to the taxes on the ballot.
"The council has already looked at the idea of revenues. What if it doesn't pass? What if it's not on the ballot?" asked Cahill.
Which is why the city needed a backup plan.
Letting go of about 35 employees would save the most money in the pot -- $3 million -- while contractiny out certain duties woi.ild save tl
reduction in benefits and retirernent would �otentially save $1 million.
Tfie assistant city manager stressed that didn't mean wage or salary cuts for city employees. Cahill said the city woutd look at the potenti
yea r.
If the city were to contract out mowing parks and public spaces, "there would be city employees who would be laid off," Cahill said.
The noncore janitorial services cuts refer to the janitor and custodian services in all the city buildinys, with the exception of City Hall and
said.
The concept of maintaining a balance between revenues and expenditures is not an equation people think about at first, he saicl. "Whene�
staffing or have less money iYs important to also balance those reductions with reduced services and to decide what services we are prov
providing dnymore," he said.
Over the past few years, the city has already reduced city staffing by more than 80 employees, but that created a problem because "we z
deliver the same services we were trying to deliver," he said.
"In the long term, it's not sustainable."
No action is going to be taken now, Cahill said. Next month, the council will decide on wl�at strategy to use.
By then, Cahill will have rep�rted to his new job as city manayer in L.oveland, Coto.
But the city of Merced's problems will stilf be here.
Reporter Ameera Butt can be reached ar (�09) 335-2477 or abutt�ia)merceclsun-sfiar.com.
The Modesto Bee � Stanislaus sheriff proposes cuts
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Posted on Thu, Oct. 28, 2oio
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grstapley�a mr�c�bee.cor�r
last updated: October 28, 2010 01:14:14 AM
Crippling budget cuts could downsize the Stanislaus County Sheriff's
Department by 25 percent since the recession began, if leaders agree Tuesday
to eliminate 52 more jobs.
Faced with orders to reduce expenses by $6.6 million in the coming fiscal
year, Sheriff Adam Christianson said Wednesday that he reluctantly has
developed a plan to lay off 49 workers and erase three vacant positions.
A little more than six months ago, he dismissed 54 employees to achieve
similar savings.
"We will do the very best we can with the resources we have, but these cuts go
too far," the sheriff said. F�e will plead with county supervisors Tuesday to
rethink the county's commitment to public safety, Christianson said.
But one supervisor said Christianson may be jumping the gun, and another
said it's all for political show.
Supervisors on 'I'uesday will review a first-quarter budget report for the fiscal
year that began July 1. It includes layoffs proposed in two unnamed
departments among the county's 2�, other than the sheriff s, Chief Executive
Ufficer Kick Robinson said.
Supervisors must close a$28 million deficit in 2o1i-i2, Robinson said.
�
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�
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(DARRYL. BUSH/dbush@modbee.�
reduce expenses by $6.6 million in
Sheriff Adam Christianson said We
has developed a plan to lay off 49 �
vacant positions. - -
Christianson is the only department head bringing forward drastic layoffs far in advance of anticipated
reductions.
"He's trying to stir the pot," said Supervisor Jim DeMartini, a periodic critic of the sheriff. "He's rushin
Supervisors) for political reasons."
Jeff Grover, chairman of the board, said it might be wiser "to take a more measured approach. My con�
don't prematurely cripple the law enforcement that we do have funded by making drastic cuts right aw
"I'm concerned about an attempt by some to create a groundswell of hysteria," Grover continued, addi:
problems don't result from mismanagement by Christianson or Robinson.
The county is limping along with about $4o million less in discretionary revenue than three years ago,
declining property and sales taxes, and vehicle license fees. The Sheriffs Department uses far more fro
than any other department.
"While public safety is our most important service, it cannot stand on its own," Robinson said.
The Modesto Bee � Stanislaus sheriff proposes cuts
retire Jan. 4, and one of three captains. Christianson said he will not replace Heyne, saving $232,00o i
benefits — preserving about two patrolling deputies.
"I have other goals and ambitions in my life," Heyne said Wednesday. He informed the sheriff in Febru
retirement plans, he said, and stayed on through Christianson's re-election in June.
Heyne, 48, will have spent nearly 26 years at the department since being hired as a jailer in i985. An o�
he will teach more at his church and take on the bulk of responsibility for home schooling four childrer.
Christianson previously eliminated other inanagers and will have lost nearly half of his administrators
goes through, he said. Cuts will have claimed 2�.8 percent of the department's lieutenants, 35•5 Percen
29.4 percent of deputies, he said.
In real terms, the department will have lost 5y sworn deputies to the recession, with 142 remaining fro
mark of 2oi, Christianson said. In jails, where law mandates minimum staffing, custodial deputies' nu�
plunged i1.3 percent, from 203 to i8o, and the department will have shed nearly 83 percent of its com:
officers, down to five from the previous 29.
The sheriff has shut down housing units for 398 inmates, releasing the least violent.
The department also provides courthouse security, staffs the coroner's office and provides police servic
for Riverbank, Patterson, Hughson and Waterford.
The sheriff said he will be compelled to recall officers dedicated to the Central Valley Gang Impact Tas]
terrorism task force, to beef up patrol.
Ryan Killian, president of the Stanislaus Sworn Deputies Association, said reducing efforts to combat g
be devastating. That's a seven-man unit — gone," he said.
Experienced de�uties to c�o
Tom Letras, the union's secretary, said th� department is figuring on losing deputies with nearly four y
experience, as opposed to rookies. Layoffs hit those with least seniority first, but several on the bubble
agencies with many years under their belts, he said.
Christianson declined to specify the number of patrol deputies facing pink slips. But the union is circul
speculating that 24 could go.
"We are asking for your support. Not for higher wages, benefits or perks but for the safety and well-bei
the flier reads, urging people to contact supervisors and listing 'Tuesday's meeting.
A"Friends of the Sheriff' mass e-mail from a group created before Christianson's re-election urged pec
send the sheriff an e-mail. "I'll convey your viewpoint to supervisors," the sheriff wrote.
Wednesday afternoon, a handful of people supporting deputies picketed outside the county administra
downtown Modesto.
It's true that the sheriffs budgeted allocation will be $6.6 million less than this year, Robinson acknow
allowing the county's cost to operate public safety departments to increase slightly, while all other dep<
on the general fund will decrease, some sharply.
For example, the county will spend 25.� percent less on parks and recreation, and 21.i percent less on 1
commissioner. Robinson ordered his own office to chop 18 percent, reducing costs from $6 million to ]
million.
The Modesto Bee � Stanislaus sheriff proposes cuts
Bee staff writer Garth Stapley can be reached at ���t�pl+�g�Cm���i�sc��mec�r� or 578-2390•
This article is protected by copyright and should not be printed or distributed for anything except personal use.
Copyright O 2010, The Modesto Bee, 1325 H St., Modesto, CA 95354
Phone:(209)578-2000.
�-�ome Sales Kise, but So Do Bearish Views - WSJ.com#printMode
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Housing Gloom Deepens
Hornc Scries Rise, hut Economist:s �un't See 1'�•ices B�ttorning Till Late 'rt or '12
�?�•- NICK TEMIRAOS
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Kelly Haemann at the St. Petersburg, Fla., house she can't close on due to foreclosure-documentation issues.
Adding to
the foreclosure crisis. Some banks suspended sales of foreclosed homes late last month to address questions about the integrity of t
a substantial part of the market freezes for some weeks, that could further crimp sales.
On Monday, the National Association of Realtors said sales of previou
Neighborhood Market Watch G�asc,nallv adiusted annual rate of 4.�� million in Sentember. While tl-
Home Sales Rise, but So Do �3earish Views - WSJ.com#printMode
"We'll see some additional price declines," said David Berson, chief ecc
Ine., a mortgage-insurance company in Walnut Creek, Calif. "The gain;
sustained given the current supply situation."
The housing market typically plays a big role as the economy exits fron
rebound in new home building sparking demand for construction wor�
supplies. "We're clearly not getting that this time," said MF Global eco�
It's a major reason, he said, that the recovery that began last year has k
To be sure, the housing market is faring better in several metro areas, �
decent job growth such as parts of Texas and Washington, D.C. And th
Realtors said it believes a housing recovery is already taking place, tho
Lawrence Yun said it would be "choppy at times."
Where Housing Is Neaded
The Wali Street Journal's quarterly survey of 28 major But other economists say any talk of a recovery is premature until pria
metro areas. Realtors' report, the median home price fe112.4 � to $i�i,�oo in Septe�
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The latest data don't reflect the suspensions of some foreclosure sales.
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� "This mess threatens to dampen activity in the one area where we see
,� � �.� � strengthening," said Michael Feder, chief executive of real-estate data
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Although existing home sales rose more than expected in
September, the prospects for an overall housing recovery remain
elusive. Jusiin Lahart and David Weidner discuss. Also, Siabhan
Hughes discusses U.S. government approval on Monday of the
worid's largest solar pfant.
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Editors' C?eep Di�e: Rebuiiding the Mortgage Market
3�::'•� i:..,v ,, ibit✓iti'-..r"��.��(_'. i.._....
Earlier this month, Nina Kachakova was days from closing on a two-b
Fla. But Fannie Mae pulled the listing after Bank of America Corp., wr
on the property, announced it was suspending foreclosures. In a letter
the closing until next Tuesday, but added the "extension does not gua�
defect within this time frame."
Ms. Kachakova, who had been outbid on nearly a dozen other propert
already paid $i,800 for an appraisal, home inspection and loan-origir
fees for the $i35,000 home. "Right now, it's just a waiting game, and :
start all over," said the 24-year-old boolckeeper.
Home Sales Rise, but So Do Bearish Vie��vs - WSJ.com#printMode
"so it doesn't create an overhang of [bank-owned] property."
The recovery could be interrupted most severely in Florida, New Jersey and other ' judicial" states where banks must complete fore�
Listings of bank-owned homes in Florida's Miami-Dade, Broward and Palm Beach counties last week were do��n by ig% from ttivo �
to Condo Vultures, a real-estate research firm.
"I.ong after other parts of the country have burned off their excess foreclosure inventory, we will still be digesting ours, that's for su
president of Otteau Valuation Group, an East Brunswick, N.J., appraisal firm.
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"Joe�
the tE
but they're hearing more and more that the banks are going to be dumping more homes for sale next year, so they're thinking, 'Wh�
said John Burns, an Ir��ine, Calif., housing consultant.
On Tuesday, the S&P/Case-Shiller index �ti�ill report home prices for the three-month period ended in August, offering the first indi
responded to the drop-off in sales earlier this summer. Economists at Goldman Sachs Group Inc. forecast that prices in August and
an estimated o.4% and o.5%, respectively. 'Their estimates are based on reported declines in sellers' aslcing prices over that time pe.
Housing markets could be in far worse shape without mortgage rates that are at their lo�vest rates in nearly 6o years. The average 3
mortgage stood at 4.2i% last week with o.8% in fees, according to a survey by Freddie Mac.
—Justin Lahart contrib�ited to this articie,
Write to Nick Timiraos at nicl:.tin�iraos(a��vs,j.com
Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved
This copy is for your personal, non-commercial use only. Uistribution and use of this material are governed by our Subscriber Agreemerit and by copyright law. For non-pers�
copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit
www.direorints.cam
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�ctC�b�r 21, 2Q 1 C�
Taxable Sales Plummet in State
Consumers stopped spending in California during the Great Recessio
that's had an enormous effect on the sales tax revenue collected by thf
according to a report out Thursday from the La Jolla-based National Ur
System Institute for Policy Research.
Taxable sales in California dropped 18.5% between 2006 and 2009. In (
County, they dropped 20.1 �o, in Los Angeles County, they fell 20.1 �o
Riverside County, they shrank 25.1 �o.
The report focuses on San Diego County, where taxable sales were dowr
and where one out of every seven businesses selling taxable goods and �
closed between 2006 and 2009. About 12,500 outlets closed in the
between 2006 and 2009, the report says.
"It is a brutal situation out there, as any store owners, commercial real
broker, or retail mall owner can attest," wrote W. Erik Bruvold, presideni
National University System Institute for Policy Research, in a letter accom�
the report.
Consumers spent a record $47.8 billion in San Diego County in 200t
declined slightly in 2007 and 2008, and then dropped sharply in 2009 t
billion.
Sales fell to a per capita amount of $12,338 in 2009, down from $15,:
resident in 2006. Adjusted for inflation, those 2009 figures represent the
spending since 1967. Consumers spent the most money at food servic
drinking places and at motor vehicle and parts dealers.
There are some signs that sales are picking up this year. California is proje
show a 1�o gain in year-over-year sales, compared to 0.1 �o in Los f
County and 2.4�o in San Diego County.
t�,tP rryi�Prl thP ��IP� tc�x t� 8_25% in 2009, from 7.25%. A proposition
Fresno Business I Fresno Bee
Slow Valley recovery, job losses forecast
University of the Pacific economists downgrade their outlo�
Posted at 07:39 PM on Thursday, Oct. 21, 2010
By Tim Sheehan / The Fresno Bee
A new forecast issued Thursday by the University of the Pacific predicts widespread economic clouds with a chance of sca
continuing through 2011 in Fresno and the Valley.
"In some measures, Fresno seems to be catching up to areas that sank a little earlier," said Jeffrey Michael, director of the
Forecasting Center at the university's Eberhardfi School of Business.
"The Fresno area had significant job declines this year, a little faster than other areas," he said, "and it looks like that's goir
2012."
The two-year outlook for California and the Valley is a significant downgrade from what the Stockton economists predicted
ago.
"Since early 2009, we have been projecting the private sector would finally show more robust growth in the second half of
report states. "That forecast proved accurate until a disappointing third quarter."
Construction, home prices and other factors haven't lived up to expectations. Because of that, Michael said, "we are now �
unemployment for the Fresno area in 2011 and 2012," compared to prior forecasts of 15% unemployment as the economy
While Michael expects some industries -- professional and business services, health and education -- to add jobs next yea
offset by losses in other sectors for at least the first half of 2011.
"Overall job growth will return in the third quarter ... after 15 straight quarters of job losses," the forecast predicts.
But that growth will remain modest, and the forecast suggests that payroll employment won't rebound to 2007 pre-recessic
2015.
"It is eventually going to pick up, but 2011 and 2012 are going to be especially challenging here in the Valley," Michael sai�
Construction has been the sector hit hardest and suffering the most job losses in the recession.
Because the number of building permits issued in the Fresno area so far in 2010 is below the 2009 pace, Michael said, thE
continue to struggle.
"We're not expecting the construction industry to lift significantly until after 2012," he said.
But as bad as things are in the Valley, Michael said, "if agriculture were to tank, it actually could be worse."
Michael said stabie dairy and crop prices have helped stabilize the Valley's economy.
"It's important and useful," he said, "but I don't think agriculture wiil lead to a major turnaround in the unemployment situati
not a driver of substantial job growth."
�
B A K E R S F I� L D
Economic and Community Development Department
M E M O R A N D U M
October 22, 2010
�
�.._ �
�
TO: Alan Tandy, City Manag�r `��. ��
�, I �.�,
FROM: Donna Kunz, Economic Development Director
SUBJECT; Economic and Community Development Department Activit�
from July 1, 2010 through September 30, 2010.
CAPITAL IMPROVEMENT PRpJECTS
1. Lowell Park Restroorr� Construction Proiect
CDBG funds of $350,000 (F�l 07-08) are available for design and constructic
restroom facilities to replace the existing deteriorated restrooms at Lowell Park
at 4th and "P" streets. Federal environmental review was completed in Octok
The Recreation and Parks Department is the lead department, and is workinc
in preparing the bid package, Recreation and Parks Department began the
process in July 2010. The �roject was awarded and notice to proceed i
September 2010. Project completion is estimated no later than April 2011.
NON-PROFIT/PUBLIC FACILI1fY PUBLIC SERVICE PROJECTS
The following various non-profit organizations are being financially assisted to
the level of service for operating their public facilities.
1. Bakersfield Senior �enter
The City Council amended the 2009-10 City of Bakersfield Action Plan to c
$100,000 in Community Development Block Grant funds for the Bakersfiel
Center, to rehabilitate a deteriorated kitchen and dining areas of the fa
portion of the funding, $19,744.07 was designated for kitchen equipment p�
The remaining $80,255,93 is fior the costs associated with the kitchen remodel
2. Bakersfield Homel�ss Center
Emergency Shelter Grant (ESG) funds are used by this agency for opE
expenses such as staff, postage, telephone, utilities, insurance, equipment re
maintenance costs, The City Council recently approved the agreement
Bakersfield Homeless Center for FY 2010-2011 so the agency can no�
expending these funds.
3. Bakersfield Rescue Mission
ESG funds are used by this agency for essential services and operat
maintenance expenses including staff costs. The City Council recently apprc
agreement with the Bakersfield Rescue Mission for FY 2010-2011 so the age
now begin expending these funds,
4. Alliance Against Family Violence and Sexual Assault
ESG funds are used by this agency for operation and maintenance expen�
City Council recently approved the agreement with the Alliance for FY 201 C
the agency can now begin expending these funds.
HOUSING, ECON4MIC AND NEIGHBORHOOD REVITALIZATION PROJECTS
The following private and non-profit organizations are being assisted by
acquire, develop or improve their housing and neighborhood/commercial �
1. Southeast Bakersfield Infill Housing Pro�ect
The City was awarded a$500,000 CaIHFA loan to build affordable ho�
scattered lots in southeast Bakersfield. The RDA assumed all rights and oblig�
the loan on February 26, 2003. To date, seventeen new homes hav
constructed.
On July 12, 2010, the Redevelopment Agency approved the sale of the horr
East bth Street to Habitat for Humanity. Habitat has a low income family r
complete the home and move in, Due to the current economic climate, con
has been halted at 1213 Murdock by Hybrid. Hybrid will be returning the prc
the Redevelopment Agency to resell. This will be the final action for this proje
loan is due to CaIHFA in March, 2011,
2. Home Accessibilitv (�IA) Grant Pro . rc� am
The program offers grants of up to $3,500 for constructing accessibility impro�
in privately or publicly owned structures for those clients who are pl
challenged. This program aids low income physically challenged people �
was awarded to Bili Muxlow Construction. During the reporting period, abo
physically challenged households have been provided improvements, witr
eight ± applications pending review.
3. West Columbus Affordable Housing Proiect - Residences at West Col
Columbus Haven, L.P., a development arm of the Housing Authority of the C
Kern was unsuccessful i� its bid to receive tax credit funding in the first o
round of 2010 Tax Credit Allocation Committee financing. Columbus HavE
reapplying for low income tax credit financing in the March 2011 rounc
financing. Columbus Haven is requesting the tax credit funds to assist with th
design and project construction for a 56-unit low-income housing projE
located at 500 West Columbus, The project once completed will be hom�
families and emancipated foster youth. The City approved an amendmE
Agreement with GEAHI-II for an additional $255,000 in HOME Investment Pc
Community Housing Development Organization (CHDO) funds to assist in cor
costs.
4. The Parkview Cottag�es Housinq Pro�ect
The Parkview Cottages consists of 74 single-family housing units, ranging fror�
1,820 square feet, Each unit will be two stories and have a two/three car
Staff closed escrow on 3 u�its and 1 unit is currently in escrow. To date a tc
units have been constructed and sold,
Staff has negotiated an amendment to the disposition agreement req�
developer/builder to construct two speculative homes at a time and continu�
out the development as the houses sell. With this revised schedule the proje�
achieve sell out in four years or less, Two units are currently under construc
should be ready for sale by January 2011. The first purchase contract has beE
on one of the two units and staff has received an application for down�
assistance for the unit. Downpayment assistance for this phase of the proje�
provided in an amount not to exceed $35,000.00,
5. Fair Housing
During this quarter, 236 calls were received: thirteen were substantial ser�
dealing with fair housing issues, and two of the complaint forms were returnE
client. Nine of the calls w�re race related complaints, two were dis�abilit�
complaints, and one call involved race and retaliatory discrimination, and
involved discrimination based on sexual harassment related issues,
7. South Mill Creek Commercial
A consuitant has been retained to prepare reuse analyses and summary r
prospective development projects expected to be located in South �
Commercial Viliage, The consulting firm was selected from a Request for
process recently, The first deal is a proposed 83 room hotel,
8. South Millcreek Housing
Chelsea
In September 2008, the City Council and Bakersfield Redevelopment
(Agency) approved a Disposition and Development Agreement (DDA) witr
Investment Corporation for the construction of 70 mid-rise garden style a�
rental apartments. In March 2010, the Agency approved Amendment Nc
DDA for the use of $3.0 million in federal HOME Investment Partnership
construction assistance to constructthe apartments. In June 2010, Chelsea In
Corporation was successful in applying for and securing nine percent state tc
In August 2010, the Agency approved an amendment to the DDA with CI
require Chelsea and its successors to be responsible for maintaining
improvements on 14th street north a private street, and a portion of "S" street
street within the development, and pay for landscaping maintenance and E
costs. The Agency recentl�i approved amendment No. 3 to the DDA to up
project affordability mix, change the Regulatory Agreement, and address sE
the DDA to provide assurance to U.S. Bank an Equity Investor that the proje
continue forward in case of default by the Developer, Escrow is schedu�ed tc
October 18, 2011 and construction is scheduled to begin in November 201(
completed by the fall of 2011.
Creekview & Courtvard
In February and March 2009, the City Council and Bakersfield RedevE
Agency approved two Disposition and Development Agreements with S�
Consulting for the construction of 36 upscale townhomes and 57 mid-rise ap�
Construction on the first fourteen (14) units of the Creekview Villas townhomE
in May 2010 and the Creekview Villas "hard hat" ceremony was held on July
Construction completion is estimated to be March 2011, Staff also requE
Millcreek Courtyard project be deferred up to 36 months to allow additiona
repayment of the cash flow loan from the sales of the Creekview Villas tow
Street Imqrovements
In June 2009, staff received $10,8 million dollars of State of California Prop.
funds to provide infrastructure to support the five affordable housing projec
constructed on both public and private streets and private property, which
unique from a typical public works capital improvement street project. The Bc
Redevelopment Agency approved the construction agreement at the Oc
2010 meeting, When constructed the street infrastructure project will
significant improvements that serve all three of the new residential projec
South Mill Creek Village and will compliment the recently constructed I�
Linear Park improvements. The General Contractor has scheduled an on-si1
in October to encourage subcontractors with employment openings
applications from interested, qualified applicants seeking construction emK
on the project, Construction is anticipated to begin November l, 2010 an
completed in 120 days.
9. South Millcreek Plaza Cinema Complex
South Mill Creek Plaza is a mixed-use lifestyle, ground-up developr
approximately 7 acres. The site is designed to accommodate a total of 89,OC
feet of space, featuring 28,000 sq, feet of entertainment related retail, rE
space and a 61,000 square feet state of the art 16 screen, 2,600 seat i
cinema. Maya Bakersfield Cinemas, the developer, has developed the first
the project south of Rabobank Arena and Convention Center, and sou�
railroad tracks between California Avenue, "M" Street and the Kern Island
The South Mill Creek Plaza is a major factor in reducing blight in the area
provided the Southeast Redevelopment Project Area with an anchor tenan
be a catalyst for additional development along California Avenue, ThE
breaking ceremony was held on July 29, 2008. Construction was complete
Maya Cinema phase of the project in the summer of 2009, with the grand
held on July 15, 2009, Since the opening of the theater, over 1,000,000 tick
been sold to date. In addition, construction on the 28,000 sq, feet of enteri
related retail, restaurant space is on hold until the developers can obtain cor
financing and tenants for this phase of the project,
10. Graffiti Removal Proqram - Citywide
CDBG funds are used to assist in graffiti removal in low- and moderate-incor
throughout the city, primariDy in wards 1, 2, 3, 6, and 7. The program received
in CDBG funds for the current fiscal year and has expended 21 % to date.
11. 19th Street Senior & Parking Structure
On August 18, the Bakersfield Redevelopment Agency approved revisio
agreement with 19th Street Senior Plaza, LLC, to build 66 units of afforda�
of the parking garage. This project will be immediately east of the 19th Stre
Use Project. Design engineering is almost compieted for the garage and a
for Proposals soliciting interested from general contractors is being advertis�
12. 19th Street Mixed Use
Located on 1/3 acre directly adjacent to the east of the Mill Creek Lin
bet�ween 18th and 19th Streets, this project will include approximately 22,50
feet of leasable retail, office, and affordable residential space in a thi
building. It is anticipatec� that the total project cost will be $5,725,000. This wil
$1,400,000 of HUD HOME Investment Partnership Funds to be used to ass
construction of ten affordable rental units, The remaining $4,325,000 will bE
financed by the developer/property owner, Upcoming Redevelopment
actions include (1) an Assignment Agreement between the City c
Redevelopment Agency regarding the use of HOME Funds and (2) ar
Participation Agreement.
13. Acquisition & Relocation - Catholic Charities
The building formerly occupied by Catholic Charities has been demolished,
will be converted into park space in connection with the Mill Creek Lin
Project.
14. E. California Avenue Property
Clinica Sierra Vista recently expressed an interest and willingness to negotiatE
Redevelopment Agency for the development of a portion of the property
Sierra Vista has recently been awarded funds from the American Reco�
Reinvestment Act 2009 (A.R.R.A.) Stimulus funds to construct a 3,863 square foc
office on a portion of the parcel, One of the major requirements of recei
Stimulus funds is the applicant has to demonstrate reasonable site control pr
start of project construction.
On May 10, 2010 the Bakersfield Redevelopment Agency entered into a Di
and Development Agreement (DDA) with Clinica Sierra Vista to develop a 3,�
dental clinic on the property located at 1125 East California Avenue, ir
installation of curb and gutter, handicap access ramp, installation of a right 1
and alley improvements. Construction the dental clinic is anticipated to
November, 2010,
15. Haven Cotta ,c�es
Golden Empire Affordable Housing, Inc„ II (GEAHI-II) has entered into an ag�
The project is located at 2300 S. Union Ave., at the northeast corner of the int
of Union Avenue and White Lane. The project encompasses approximately �
and is located in the Southeast Bakersfield Redevelopment Area. The pr�
gone out to bid and GEAHI-I I has selected a contractor. The developer is aw�
CALHFA Financing which will close on October 22, 2010. Construction is schE
begin in November 2010.
16. Friendship House - Communitv Action Partnership of Kern
Community Action Partnership (CAP) of Kern requested $247,342 for imprc
outdoor sports complex located on the Friendship House Community Center
at 2424 Cottonwood Road while $3,039,000 has been secured from the
California, Department of Parks and Recreation, This project was reconsidE
funding identified from year end closings and savings, This project was inc
Amendment # 3 FY 07/08 Action Plan to allow the use of funds for de;
construction of the Friendship House Center, and sfiaff will also include the K
the upcoming 2010 implementation plan to allow future RDA project financi
funds become available. The NEPA (National Environmental Policy Act) prc
been completed. Late last year the State of California informed CAP of Kerr
State Park funding earmarked for this activity is available for this project and
reimbursing invoices submitted for the project. CAP of Kern is also awaiting s
of the extension document from the Governor, as of now the project ends
2010. The two state grants expired on June 30, 2010. Since the moment 1
originally froze the project funding last year, CAP of Kern has requested, and
has given positive indications, that a one year extension would be grc
compensate for the disruption to the schedule, Affer much discussion and fr�
the state has included a one year extension for the project in the current p
state budget. Unfortunately at this time CAP of Kern are unable to utilize c
funding until such time that the state budget is approved.
The project was put out for public bid in May 2010 and in June, 2010 auth�
granted to award bid to general contractor SC Anderson. A contract was sig
a start date of July l, 2010.
17. Neighborhood Stabilization Pro rc�am
The City of Bakersfield was successful in meeting the September deadline for s
and obligating these federal funds, Down payment assistance efforts expE
significant activity, helping to assist with the purchase of 56 homes over the c
the program. Rehabilitation work has been completed on all 19 units th
acquired; all are now inhabited bv aualified tenants. Rehabilitation �
18. Homelessness Prevention and Rapid Re-Housinq
Bethany Services has ex��erienced high demand for these programs and r
45% of its funds to date. As a point of reference, 60% of the funds must be
September 30, 2011,
19. Santa Fe Apartments
In 2008, the Bakersfieid Redevelopment Agency approved the sale of
purchased tax default properties located at 701 Union Avenue to AmC
Housing, Inc. AmCal with the assistance of HOME Investment Partnersr
approved by City Council in 2008 is constructing 56 units of affordable renta
on the site. The project currently is 83% completed and is expected to be fir
the end of the year also features a community center, swimming pool, sec
fencing, and a commercial site which fronts Union Avenue, A Grand �
Ceremony is tentatively scheduled to take place in January 2011.
20. Bakersfield Communitv House
Work is nearly complete on this project located in Central Park. The imprc
efforts have been focused on a covered walkway/breezeway, replacing
support pillars, replacing the air conditioning unit, and painting the builc
exterior improvements will mafich the Mill Creek Linear Park design compor
Paqe 1 of 2
STREETS DIVISION — WORK SCHEDULE
WEEK OF November 1, 2010 — November 5, 2010
Resurfacinq/Reconstructinq streets in the followinq areas:
Reconstructing streets in the area north of Panama Ln & west of Wible Rd.
Resurfacing Streets in the area North of Columbus and West of Mt. Vernon
Miscellaneous Streets Division proiects:
Installing Handicapped ramps in the Kern City area.
Repairing concrete at various bus stops on Wilson Rd, Hughes Ln, Wible Rd, So. "H
Ashe Rd, Chester Ave and Planz Rd areas
THIS SPACE INTENTIONALLY LEFT BLANK
Paqe 2 of 2
STREETS SWEEPING SCHEDULE
Mondav, November 1, 2010
Between Golden State & 16t St. -- "F" St. & Oak St. /kern River Boundary
Between 34t" St. & 30t" St. — Chester Ave. & San Dimas St.
Between San Dimas St. & Beale Ave. — 34t"/Bernard St. & Niles St.
Between Olive Dr. & Riverlakes Dr. (ext.) — Riverlakes Dr. & Coffee Rd.
Tuesday, November 2, 2010
Between California Ave. & Brundage Ln. — Oak St. & Union Ave.
Between Renfro Rd. & Jenkins Rd. — Stockdale Hwy. & Kern River Boundary.
Wednesday, November 3, 2010
Between Panorama Dr. & Bernard St. -- Union Ave. & Loma Linda Dr.
Between River Blvd. & E. Columbus St. — Panorama Dr. & Columbus St.
Between College Ave. & Azalea Ave. — Mountain Dr. & Raval St.
Between Ming Ave. & White Ln. — Allen Rd. & Buena Vista Rd.
Thursday, November 4, 2010
City areas between Kentucky St. & Quincy St. — Owens St. & Virginia St.
Between Union Ave. & Washington St. — E. Truxtun Ave. & Brundage Ln.
Between Progress Rd. & Old River Rd. — Panama Ln. & Pacheco Rd. (alignment)
City areas between Progress Rd. & Old River Rd. — Meadow Falls Dr. & Rose Creek D
Friday, November 5, 2010
Between Buena Vista Rd. & Allen Rd. — Harris Rd. & Panama Ln.
Between Buena Vista Rd. & Mountain Vista Dr. — Panama Ln. & Birkshire Rd.
Between 178 Hwy. & Paladino Dr. — W. Columbus St. & Morning Dr.
City areas between Sterling Rd. & Morning Dr. — 178 Hwy. & College Ave.
TO:
FROM
DATE:
-� -�,� �AKERSFIELD POLICE
�~ MEMORANDUM
� `�
) �11�i� �
`�LIF OR�' �
ALAN TANDY, CITY MANAGER
GREG WILLIAIWISON, CHIEF OF POLICE
October 26, 2010
SUBJECT: Parking Issues on 18th Street, From O to Q Streets
Council Referral No. 195 (Ward 2)
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'•:
Council Member Benham requested that police staff speak to Mr. Harrer regarding his let
about parking enforcement on 18th Street between O and Q Streets, and that Public Wor4
staff follow-up with a review and possible modification of parking times in front of the
business: Cay Health Foods.
Council Member Benham's re�erral was assigned to the Operations Division/Traffic for foll�
Sgt. Melvin Johnson contacted Mr. Harrer regarding his complaint and provided a direct cc
number for future reference, if needed.
One of the local businesses pirovides a parking lot for their employees, however, it has be�
that vehicles have been burglarized in that lot. We have assigned extra patrol in the area.
Staff has been enforcing over the limit parking violations on a daily basis; a total of 14 cita�
issued between October 13th and October 22�d� Police staff will continue to monitor and er
violations.