HomeMy WebLinkAbout12/20/1976 MINUTES CCBakersfield, California, December 20, 1976
373
Minutes of a regular meeting of the Council of the City
of Bakersfield, California, held in the Council Chambers of City
Hall at 8:00 P.M., December 20, 1976.
The meeting was called to order by Vice-Mayor Bleecker
followed by the Pledge of Allegiance and Invocation by Reverend
Juan Aguila of the First Baptist Church.
The City Clerk called the roll as follows:
Present:
Absent:
Councilmen Bleecker,
Sceales,
Mayor Hart
Christensen, Medders,
Strong, Barton
Minutes of the regular meeting of December 13,
approved as presented.
Rogers,
1976 were
Correspondence.
Upon a motion by Councilman Barton, communication from
State Department of Transportation, dated December 7, 1976,
the
regarding proposed California Highway Commission relinquishment
resolution covering superseded State Route 58, between State Route
204 and the east City Limits of Bakersfield at Washington Street,
was received and ordered placed on file.
Upon a motion by Councilman Rogers, communication from
Tenneco West, Inc. requesting annexation of property generally
located southerly of Stockdale Highway and westerly of Ashe Road,
was received and referred to the Planning Commission for study and
recommendation.
Reports.
Councilman Rogers, Chairman of the Water and City Growth
Committee, read Report No. 15-76 regarding Operation of Ashe Water
Service Area, as follows:
Under the terms of agreement for the acquisition
of the Kern River water rights from Tenneco West,
Inc., the City acquired Ashe Water Service Area
which is a domestic water utility. Ashe Water
currently has approximately 3,300 customers, and
the City has no real expertise in the operation
of a domestic water system.
Bakersfield, California, December 20, 1976 - Page 2
Through negotiations between the City and California
Water Service Company, we have reached tentative
agreement whereby Cal Water will operate Ashe Water
as agent for the City.
Attached to this report is a copy o£ the agreement.
The following is a very brief summary of the
important points of that contract:
The term of the agreement is until
December 31, 1979 with an option to
renew.
The agreement calls for Cal Water to
assume the daily operation of the system,
maintenance, repairs, monthly billing,
and to pay all operating and maintenance
expenses.
The City will pay to Cal Water a manage-
ment fee of one-half of one percent of
system gross plant (system gross plant
is currently estimated to be $3 million).
Cal Water will transmit to the City, on
a daily basis, all revenues received.
Any extraordinary maintenance ($1,500
on mains; $500 for other expenses in
the approved budget) must receive prior
Council approval.
The City reserves the right to establish
all rates in the entire system except
for fire hydrants, and private fire
protection systems will be metered.
Cal Water will submit for City Council
approval an annual budget for all
capital improvements for the system--
such improvements to be paid for by
the City.
Any emergency repairs which affect the
health and safety of people within the
service area will be performed
immediately by Cal Water upon prior
notification to the City.
In order to allow for Cal Water to perform the operation
and maintenance portion of the agreement, it will be
necessary to modify the City's purchasing ordinance.
The reason for this is that the ordinance currently
only permits the City to make purchases. This amend-
ment would permit Cal Water to make capital improve-
ments under $2,500 in accordance with the approved
capital improvement budget. A copy of the ordinance
is attached for your reference.
It is, there£ore, the recommendation of this Committee
that the following three actions be approved:
Bakersfield, California, December 20, 1976 - Page 3
375
1. This report be approved and placed on
file;
That the agreement with Ca1 Water for
the operation and maintenance of Ashe
Water Service Area be approved and the
Mayor be authorized to sign; and
That the ordinance amending the City's
purchasing ordinance be given first
reading.
Upon a motion by Councilman Rogers, Report No. 15-76 of
the Water and City Growth Committee regarding Operation of Ashe
Water Service Area, was accepted, and Agreement with California
Water Service Company for operation and maintenance of Ashe Water
Service Area, was approved and the Mayor was authorized to execute
same.
First reading of an Ordinance amending
Chapter 5.20 of the Municipal Code by
adding Section 5.20.125.
Upon a motion by Councilman Rogers, first reading was
considered given an Ordinance amending Chapter 5.20 of the Municipal
Code by adding Section 5.20.125.
Councilman Rogers, Chairman of the Water and City Growth
Committee, read Report No. 16-76 regarding Money Due City by Water
Enterprise, as follows:
Generally accepted accounting principles
provide for capitalizing costs incurred prior
to the beginning of actual operation of an
enterprise. The City has incurred a con-
siderable amount of such costs relative to
its current acquisition of water assets which
will be placed into operation as a City Water
Enterprise on December 22, 1976. These costs
have been incurred over a period of more than
ten years and consist of engineering fees,
legal £ees for water attorneys, financial
consulting fees, fees of legal bond counseling
firms related to the various types of financing
methods explored, as well as the cost of
services rendered by members of the city
staff and related expenses of travel, supplies,
etc. A major portion of these costs have been
budgeted and paid from the City's General Fund
over the past ten years. Some of the expenses
incurred in the last few months still must be
paid. It is acceptable, however, to accrue
and capitalize both paid and unpaid costs of
this nature regardless of the date of payment.
87(
Bakersfield, California, December 20, 1976 - Page 4
Costs of this nature are also considered to be
"capital expenditures" even though they have
been incurred for consultants' fees, staff
services, travel expenses, etc.
The Committee proposes that the City Council
take two specific actions. First, declare
that all paid and unpaid costs incurred by
the City for the water project prior to
December 22, 1976, be capitalized on the books
o£ the Water Enterprise and recorded on the
City's books as receivable from the Water
Enterprise. Second, immediately establish a
capital budget item for paying the remainder
of such costs, i.e., those costs remaining
unpaid at this date and those which may be
incurred between now and December 22, 1976.
The costs can be qualified as capital expendi-
tures under the revenue-sharing program.
The City's unpaid costs to be capitalized and
included as receivable from Water Enterprise
are presently as follows:
Fees and expenses of
financial consultants
$ 48,433.49
Fees and expenses of
associate legal counsel
retained through the
financial consultants
on behalf of the City
36 770.82
Fees of bond legal counsel
retained by the City
64 746.54
Fees and expenses of
associate bond counsel
retained through City's
legal counsel on behalf
of City
42 056.06
Total
$192,006.91
Other costs for consulting engineering fees,
water attorney fees, and for the services and
expenses of city staff members have been budgeted
in the General Fund. These should be paid from
the General Fund as budgeted, but they should
also be set up as a part of the receivable from
the Water Enterprise. All the City's expenses
related to the water project since its inception
would be determined and included in the receivable.
The Water Enterprise should then be expected to
make annual payments on the receivable from its
operating surpluses over a reasonable period of
years until such time as the obligation has been
fully liquidated.
In order to pay for the remaining expenses, it is
recommended that one of our current revenue-
sharing projected be deferred and rebudgeted in
1977-78 in order to make revenue-sharing funds
immediately available. One such revenue-sharing
Bakersfield, California, December 20, 1976 - Page 5
377
project which lends itself well to this purpose
is the City Hall improvement of the East Wing
which was budgeted for the current year 1976-77.
It appears doubtful that construction on this
project can get underway much before June 1,
1977. The project could, therefore, be delayed
for thirty days and be rebudgeted in 1977-78 and
thus immediately provide as much as $200,000
in revenue-sharing funds.
Should the City Council concur with our recom-
mendations, the City would eventually be reim-
bursed for all of its costs related to the
water project past, present, and future.
Justification will have also been established
for paying operating surpluses of the Water
Enterprise to the City's General Fund, thus
fully reimbursing the city taxpayers for their
costs of acquiring the Kern River water rights.
It is, therefore, recommended that the City
Council take the following action:
Approve the capitalization of all
prior, present, and future acquisi-
tion costs on the books of the
Water Enterprise as a liability
due the City of Bakersfield.
Approve a revenue-sharing project
for and authorizing the paying and
the capitalization of acquisition
costs incurred prior to December 22,
1976 as capital expenditures by the
City on behalf of the Water Enterprise.
3. Approve the delay and rebudgeting
of the City Hall East Wing construction.
Upon a motion by Councilman Rogers, Report No. 16-76 of
the Water and City Growth Committee regarding Money Due City by
Water Enterprise, was accepted; capitalization of all prior, present,
and future acquisition costs on the books of the Water Enterprise
as a liability due the City of Bakersfield, was approved; Revenue-
Sharing Project for and authorizing the paying and capitalization
of acquisition costs incurred prior to December 22, 1976 as capital
expenditures by the City on behalf of the Water Enterprise, was
approved; and delay and rebudgeting of the City Hall East Wing con-
struction, was approved.
Councilman Rogers, Chairman of the Water and City Growth
Committee, read Report No. 17-76 regarding Agreement with East Niles
Community Services District, as follows:
Bakersfield, California, December 20, 1976 - Page 6
In 1960, the City entered into a long-term Joint
Exercise of Powers Agreement with East Niles
Community Services District for the treatment
of sewage from their district.
With the advent of recent federal and state
legislation and the City's application for a
Clean Water Grant to upgrade Sewer Treatment
Plants No. 1 and No. 2, and in order for East
Niles fo enter into a new agreement for the use
of the Bakers£ield Subregional Wastewater Manage-
ment Plan, it is necessary to amend the 1960
agreement.
During the sixteen years that the existing
agreement has been in effect, the voters in East
Niles Community Services District gave authori-
zation for bonds to expand their service area.
The sewage disposal system installed by those
bonds and authorized under the agreement allowed
for a maximum capacity of 3 million gallons per
day. Under the new management plan, East Niles'
total flow has been reduced to 2.14 million
gallons per day.
In negotiations with East Niles, it became quite
clear that for East Niles to enter into the
Wastewater Management Plan, which does require
the imposition of a sewer service charge by them,
it would be necessary to substantially reduce
or eliminate the current bonded indebtedness of
East Niles so that all parties to the agreement
would be paying on a fair and equitable basis.
Under the new Joint Exercise of Powers Agreement,
the City, for a consideration of $510,000, will
acquire the following from East Niles:
The right to discharge into the
Fairbax Road trunk sewer, a peak
daily flow of one-half million
gallons per day.
The right to discharge into the
Brundage Lane trunk sewer, 1.9
million gallons per day.
The City will lease capacity in
the Brundage Lane truck sewer line
in an amount which will meet our
foreseeable needs for many years
to come.
The City is studying requests by landowners to
expand its corporate boundaries east of Highland
High School. The acquisition of these capacity
rights will provide a place for interim sewage
disposal until development within the area
justified the construction of a sewer trunk line
from Plant No. 2 to these areas.
The monies to pay for our increased capacity
rights will be derived from our bond sale and be
included as part of the City's contribution to
the grant award.
Bakersfield, California, December 20, 1976 - Page 7
379
It is, therefore, the recommendation of this
Committee that the Joint Exercise of Powers
Agreement with East Niles Community Services
District be approved.
Upon a motion by Councilman Rogers, Report No. 17-76 of
the Water and City Growth Committee regarding Agreement with East
Niles Communify Services District, was accepted; and Joint Exercise
of Powers Agreement with East Niles Community Services District,
was approved and fhe Mayor was authorized to execute same.
Councilman Rogers reported on two Agreements and three
Supplemental Agreements with Tenneco West, Inc. which apply to
improvements made in the Ashe Water Service Area and pertaining to
the deferred payments to Tenneco since the City agreed to purchase
the Kern River Water Rights from Tenneco three years ago.
Upon a motion by Councilman Rogers, Agreement with Tenneco
West, Inc. for payment of water well in the Ashe Water Service Area,
Agreement with Tenneco West, Inc. for purchase of replacement equipment
and Supplemental Agreements with Tenneco West, Inc. regarding better-
ments to the system and main line extensions, buy outs, were approved,
with the understanding that the figures in the agreements are subject
and the Mayor was authorized to
to change during audit procedures,
execute same.
Consent Calendar.
The following items were listed on the Consent Calendar:
(a) Allowance of Claims Nos. 2194 to 2341,
inclusive, in the amount of $144,430.10.
(b) Claim for Damages from Jack Jost, 5600
Alfred Harrell Highway, Bakersfield.
(Refer to City Attorney)
(c)
(d)
(e)
Sewer Easement from Tenneco Realty Develop-
ment Corporation providing sewer service
for Parcels A, B, C and D of Parcel Map
No. 3780.
Street Right-of-Way Deed from Cecil V.
Banthrall providing additional 15 feet of
street right-of-way along north half of
Planz Road between a portion of South "H"
Street and McCourry Street.
Map of Tract No. 3824 and Improvement
Agreement for construction of improve-
ments therein, located at southwest
corner of Ashe Road and Clubview Drive.
Bakersfield, California, December 20, 1976 - Page 8
Upon a motion by Councilman Christensen, Items (a),
(c), (d) and (e) of the Consent Calendar, were adopted by the
following roll call vote:
Ayes:
Noes:
Absent:
Councilmen Bleecker, Christensen, Medders,
Strong, Barton
None
the City,
District
(b) ,
Rogers, Sceales,
None
New Business.
Approval of Agreement between the
City, Union Avenue Sanitation District,
Alta Verde Sanitation District and
East Niles Community Services District
for the acquisition, construction and
administration of the Bakersfield
Wastewater Management Plan.
Upon a motion by Councilman Rogers, Agreement between
Union Avenue Sanitation District, Alta Verde Sanitation
and East Niles Community Services District for the acquisi-
tion, construction and administration of the Bakersfield Wastewater
Management Plan, was approved and the Mayor was authorized to
execute same.
First reading of an Ordinance of the
Council of the City of Bakersfield
amending Chapters 14.01 and 14.04 of
the Municipal Code concerning Fire
Prevention and adopting the Uniform
Fire Code, 1976 Edition, with amend-
ments as hereinafter provided.
This ordinance would update the Fire Prevention Ordinance
to incorporate the 1976 Edition of the Uniform Fire Code, and
replace the present 1967 Edition, currently in effect.
Upon a motion by Councilman Rogers, first reading was
considered given an Ordinance of the Council of the City of Bakers-
field amending Chapters 14.01 and 14.04 of the Municipal Code
concerning Fire Prevention and adopting the Uniform Fire Code,
1976 Edition, with amendments as hereinafter provided, the City
Clerk was directed to cause Notice of Hearing to be published in
the Bakersfield Californian for two successive weeks and hearing
to consider adoption of said Ordinance was set for 8:00 P.M.,
Monday, January 10, 1977, in the Council Chambers of City Hal2.
Bakersfield, California, December 20, 1976 - Page 9
881
Hearings.
This is the time set for public
by Lamon Carter, et al to the decision of
hearing on an appeal
the Board of Zoning
Adjustment approving a Conditional Use Permit application by Nilda
Muzinich to permit the construction of an additional dwelling unit
on a 10,098 square-foot lot on that certain property commonly known
as 622 E1 Sereno Drive.
This hearing has been duly advertised, the property
posted and the property owners have been notified as required by
law.
On November 9, 1976 the Board of Zoning Adjustment
approved the Conditional Use Permit based on the following findings:
1. Subject lot, along with all the other lots
within the block are long and narrow (51 by
198 feet). Five lots within the block,
including adjacent lots to the north and
south, have additional dwelling units
constructed on the rear portion.
2. No one appeared at the hearing in opposi-
tion to the requested Conditional Use
Permit.
Vice-Mayor Bleecker announced that Nilda Muzinich has
requested that this hearing be deferred as she is ill and unable
to attend the Council Meeting tonight.
Upon a motion by Councilman Sceales, public hearing on an
appeal by Lamon Carter, et al to the decision of the Board of Zoning
Adjustment approving a Conditional Use Permit application by Nilda
Muzinich to permit the construction of an additional dwelling unit
on a 10,098 square-foot lot on that certain property commonly known
as 622 E1 Sereno Drive, was deferred until a later date.
This is the time set for public hearing on an appeal by
Oleta B. Everett to the decision of the Board of Zoning Adjustment
denying her application for a Conditional Use Permit of an R-2
(Limited Multiple Family Dwelling) Zone to permit the operation and
maintenance of a Day Care Nursery for six (6) children on that
certain property commonly known as 420 "A" Street.
882
Bakersfield, California, December 20, 1976 - Page 10
This hearing has been duly advertised, the property
posted and the property owners have been notified as required by
law.
The Board of Zoning Adjustment was of the opinion the
operation of a Day Care Nursery by Mrs. Everett from her residence
would not be desirable to the public welfare and would not be in
harmony with the neighborhood inasmuch as two property owners
within the immediate vicinity, (one of which was the adjacent owner
on the north side) appeared at the public hearing and testified
they were not amenable to the request.
Vice-Mayor Bleecker declared the hearing open for public
participation.
Mrs. Rella McCann, requested that the Council grant Mrs.
Everett the permit to operate a Day Care Nursery as she is a very
capable baby sitter.
Cathy Floyd, requested that the Council grant Mrs.
Everett's Conditional Use Permit to operate a Day Care Nursery
as she is a very capable baby sitter.
Mr. Calvin Everett, husband of the applicant, requested
that the Council grant the Conditional Use Permit to operate the
Day Care Nursery as his wife is a capable person and this type of
service is needed in Bakersfield
No protests or objections being received and no one else
wishing to speak in favor
the public portion of the
action.
of the matter, Vice-Mayor Bleecker closed
hearing for Council deliberation and
After discussion, upon a motion by Councilman Medders,
hearing on an appeal by O~eta B. Everett to the decision of the
Board of Zoning Adjustment denying her application for a Conditional
Use Permit of an R-2 (Limited Multiple Family Dwelling) Zone to
permit the operation and maintenance of a Day Care Nursery for six
(6) children on that certain property commonly known as 420 "A"
Street, was deferred until further investigation is made into the
matter.
Bakersfield, California, December 20, 1976 - Page 11
883
This is the time set for public hearing on a proposed
amendment to the Land Use Element of the Bakersfield Metropolitan
Area General Plan concerning that property commonly known as the
Southeast corner of 24th Street and Oak Street, bounded by the
Carrier Canal on the east side and 21st Street on the south side,
from low-density residential to office.
This hearing has been duly advertised, the property
posted and the property owners have been notified as required by
law.
The Planning Commission held a public hearing on November
17, 1976 on the request of J. R. Smeed to amend the Land Use Element
of the General Plan and recommended approval to the City Council.
A negative declaration was posted on November 5, 1976.
Vice-Mayor Bleecker declared the hearing open for public
participation. No protests or objections being received the public
portion of the hearing was closed for Council deliberation and action.
Mr. Jerry Hahs, Traffic Engineer, stated that this develop-
ment as C-O should result in less traffic during peak hours than as
presently zoned.
Upon a motion by Councilman Rogers, Resolution No. 102-76
of the Council of the City of Bakersfield amending the Land Use
Element of the Bakersfield Metropolitan Area General Plan concerning
that property commonly known as the Southeast corner of 24th Street
and Oak Street, bounded by the Carrier Canal on the east side and
21st Street on the south side, was adopted by the following roll
call vote:
Ayes: Councilmen Bleecker. Christensen, Medders, Rogers, Sceales,
Strong, Barton
Noes: None
Absent: None
This is the time set for public hearing before the
is justified
Council to determine whether or not a rate adjustment
for Warner Cable TV, Inc.
Bakersfield, California, December 20, 1976 - Page 12
This hearing has been duly advertised.
Vice-Mayor Bleecker declared the hearing open for public
participation.
Mr. Charles Smith, Regional Manager of Warner Cable TV,
Inc. stated that they have tried to furnish all the information
that was requested by the Council and requested that the Council
grant the rate increase.
No protests or objections being received, Vice-Mayor
Bleecker closed the public portion of the hearing for Council
deliberation and action.
After a lengthy discussion, upon a motion by Councilman
Christensen, rate increase as requested by Warner Cable TV, Inc.
was denied by the following roll call vote:
Councilmen Bleecker, Christensen, Medders, Rogers,
Strong, Barton
Ayes
Noes
Absent:
None
None
There being no
Adjournment.
further business to come before the
Council, upon a motion by Councilman Christensen, the meeting was
adjourned at 9:40 P.M.
Sceales,
ATTEST:
t'> ' /7'
CITY eEE~K~ and :x-Officio ClerR of the Coun¢±l
of t~e C~ty of BakerSfield, ~al~forn±~
m&