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Home My WebLink About03/27/23 BUDGET AND FINANCE COMMITTEE AGENDAPOSTED ON • 3 zq 3 by City Clerk's Office Cityof BAKERSFIELD 23VUR21, ?r,,innn Bakersfield by THE SOUND OFUmtutkj Staff: Committee Members: Scott Andrews, Assistant City Manager Councilmember, Andrae Gonzales - Chair Mario Orosco, Budget Officer Councilmember, Ken Weir Councilmember. Eric Arias Regular Meeting of the Budget, Finance and Economic Development Committee of the City Council - City of Bakersfield Monday, March 27,2023 12:00 p.m. City Hall North, First Floor, Conference Room A 1600 Truxtun Avenue, Bakersfield CA 93301 AGENDA 1. ROLL CALL 2. PUBLIC STATEMENTS a. Agenda Item Public Statements b. Non -Agenda Item Public Statements 3. ADOPTION OF THE FEBRUARY 27, 2023, AGENDA SUMMARY REPORT 4. NEW BUSINESS a. Discussion and Review of Development Impact Fees and Committee Direction (Various Departments) b. Receive Update on Economic Opportunity Area Program (Saldana) 5. COMMITTEE COMMENTS 6. ADJOURNMENT 3/27/2023 RECEIVE AND PLACE ON FILE ATW, MEETING OF 3 Z 43 "D u BAKERSFIE��L'``�D THE SOUND OFb*b(%fMy 9* Economic Opportunity Area Incentive Program Economic B Community Development Department 1600 Truxtun Avenue, Bakersfield, CA 93301 661-326-3765 w.bakersfieldcity.us/economicdevelopment 1 Economic �}' �If► �� Opportunity Area Plan \ ,� Tm E -�� ► Ll1,� t 1 gins Dill 2 1 3/27/2023 EOA Incentive Program • Provide financial assistant a business within an EOA for: Facade improvements (exterior building); Site Enhancements (non-structural improvements); and Tenant Improvements (interior improvements) i Business Relocation and Expansion Grants • Assist with relocation or business expansion into an EOA, including moving costs, new equipment/furniture and rent reimbursement. This option requires creation of new full- time position based on funding. Development • Reimburses development fees for a business that relocates to an EOA. Fee categories include: transportation impact fee, building permit fee, water and sewer connection fee, and planning/land use fees and may reimburse the costs of public improvement projects. A 3 48 Awarded Grants _ I,ppllunbOwMea E01 Brant snno, unn. OWTw.n $24,09J Amwnt TF,e Gmlkmen LF Oamtaxm S91,= Bh .MddnAe1"I Cam,[wnl S50,Q-O Hone Pefort RMgment dd To-xn $95,= .I t Ud street S19,120 BltrAsslndz k 1123 Oownmxn $50,000 5[mg RelN dd Toxn $f>I,416 c, ttCew Owmtwm R2,014 CaA5tner di W.mlum $99,W9 NMenRld Sen C. SdxM $21,9W 4anF WIM ddT $35100 Y1mtom WuN 0 A T. $W,OW GInmde'i,W'Cat N.xNaxn $111M nw LLC 1019MfO sIM01 Ow,ntam $W.M kvi and on.OuE ddT— WOM .O F.-I I.We Dpmt9wn $N.902 Byryo$end Opmtwm $5510[O S luarm OIdT $24.063 oWe1119.ft. YUMWst $2e.OH An SM Oanntawn $151,M sanj p T. re[lu Mm[cxn S20,OW In Your N' I&d, Orcems loan Osnntmm 52I,093 enpl Nele,de Fernier/0fli Ovmtwm S1W,W] InYw WIWet Orwni lO>< Ocmllumi $55,003 Lid. MMaI I. SauMesst S25,OW r1 C es. LLCI 0am[w.n $23,SM HmryN (ffikp Owmtmm $3.224 Ikda Hdirw'Mt OWTom $99,999 eB4A CarsNctlm 0 W T. 571.311 HMpy Mlae Ru Omnttwm $24,M My W Mma. Gnn 1. Owmtarn, $25,002 BTwmM IN su Suuuient $24,550 WJ.Wn.MIM scut2eef[ 52gW9 ft. N (GM) SOulKast $U,950 Fuentes Ntiv,u OWT— ¢S,MV CMIn ABy paentuwn Max I.WufecWlM M MCW IOkmMer Dsnntmm $S.OM dedT 65 ddm swueev $151" and ft" CO, Snnunn OOmvwm 521,503 Mcw.'.lR4A dd Tun 524,300 SY.W. Owmtam $23,917 F1re0Txo CNf Wnnlam MOM FMaY%m Wxn[wm $55OA Ne ldn Seim Lbnnbm $31,235 sa: aUnt jIMM, lua ml WT RIn, uwVM mtl Dsnn4xm 525.MI0 I'K S0,1ano 0 W T. $211000 Hayed R. Dawn. $4.10) 4 3/27/2023 Current A Fund Balances Downtown $450,804.50 Old Town Kern $344,384.57 Southeast $260,786.72 34th Street $380,880.00 Bakersfield Airport $400,000.00 East Hills $400,000.00 Hwy 58/Mt. Vernon $400,000.00 5 Applications Pending Pacific west Sound OW Town $99,999 TBD Mango Haus Downtown $25,000 Director Approval Jerrys Pizza Downtown $17,DDD Director Approval New Images Dental Southeast $25,000 DirectorAppwal Laboratory Inc Two Goats &The Goose Downtown $25,0D0 Director Approval Narducci/Amestoy Hotel OW Town $99,000 TBD More Than One Dimension Downtown $79,920 TBD Number 46 Downtown $14,000 Director Approval Harm Barbershop and Skate Downtown $11,000 Director Approval CN Signs Downtown 525,000 Director Approval Hex Barbershop Southeast $27,000 TBD Better Bowls Downtown $12,0D0 Director Approval Fur &Feathers Downtown $25,OD0 Director Approval Clerou Tires Old Town $86,325 TBD R 3/27/2023 7 8 Revised y u wtenrbala�an q.uen2x. <.ntu.Emo<at'a.'a`su,a:n•w�w.�l y iz..nas. Ou .cexW� �ky,�wdl=,tw. Mun,�,m atamrm,. ce.��Em nm,�mra L ��Im� n nploremempo�Mirwr womr lend a v.I,� epgratwn, lygnn nepu elgan W aE rtoomrrcMatm��Mol Q EO a �Yn a ve ,w� gre and rn�reme to ElO Mrereor/[nY[o Ole�apyeval vlq� m.r,t mstp �tecnrgneavmn (J nab imnYnoleueee roeamoplebe suEm�t ur�IrTlox, tulhFN Maf YD�eu u m6axee el gldel n � Il n�lmatn Rr�dnmedwlt� �lolgmrcn. p MIIIII mYr lmmammpinuMVNE 3/27/2023 ►Outreach efforts Upcoming ►Boundary review Discussions ►Baseline year TIF East Hills Mall ►Competitive Rour u BAKERSFIELD ECONOMIC & COMMUNITY DEVELOPMENT 10 3/27/2023 V BAKERSFIELD TW SOUND OF 'j?e(d Development Impact Fee Discussion I Outline • Current Fees and Comparisons • Review of Policy Considerations —General Plan — Infrastructure — Economic Development 2 RECEIVE AND PLACE ON FILE, ATttlfsL MEETING OF Z 23 6CD 3/27/2023 3 Parks Impact Fee • s2,0e6 per Independent o-wellmo unit Last updated In June 2018 • Last review In 2021 (defined by pandemic & Master Plan process) Below Sacramento, Anaheim, Oxnard and Stockton are the only Cities with a Pads only Fee (other City listed have open space or Community facilities fie) Park Impact Fee Commons. M. tl 2023 cma."M••„ c cmaa..•". i .. cnaa.b cm"i o.,.a.". `en,,,:,d," cm=,�.�, •mm b.>e n u,mmm arse b.W b fM1IO, heel iV,I 4 3/27/2023 Sewer Connection Fees Single -Family Residential $5,000.00 per dweI ling unit Commercial $227.00 per fixture unit Flow BOD TSS Industrial $1.18 $800.00 $254.00 pergpd per lb/day per lh da Sewer Connection (Impact) Fees 5 Last Updated in July 2017 Currently Planned for a Workshop to City Council in 2023 u=v • $1,869 per Independent Dwelling Unit or $6,543 per Domestic Water acre based on 3.5 dwelling units per acre. Availability Fee Last review in 2006- Currently under review by Consultants with anticipated completion date end of Calendar Year 2023. Domestic Water Avallablllly Fee Companion MeM 3M3 nma ream in. ,�o.m unss a.m ■ r- r''4N N lee Gry NMNsn 4NN�u uvmanert cMaumu cMdummue crymunaemertva cpdnmvn I 3/27/2023 Traffic Impact $12,870 per Independent Dwelling Unit Fee Last updated in 2009 • Last review in 2007 - 2009 Traffic Impact ice Per Dwelling Unit Comparison m.2n IN, s,.ua r�vrp M in Sewon,i Ses•men 3/27/2023 • Policy document. • Establishes a framework/blueprint foy'°'develc RISE growth. • Organizes the City's intentions/priorities for conservation, allocation of r "�, responsibilities of all stakeholder groups into chapters, or elements. • Thus, goals, policies and specific action items can be incorporated. �Mm But the General Plan itself is not an instru Rent for RISE calculation or justification— it's a policy document series of J If the City wishes to explore fee creation, reduction., Ccentive, Waiver or. Then the City can set policy in place and action items to implenTnt policy ... reflective of the priorities of the community. I , commerce, whatever the priority. 10 3/27/2023 Development Builds Expanded Transportation Infrastructure • New development is required to build to current development standards within the ROW fronting their property. • ROW dedications may be required. • Expansion projects identified in the Regional Transportation Plan that are built by developers along the frontage of their property can be reimbursed for construction costs up to the Nexus Study cost estimates (2009) • The city fills gaps on roadways needing expansion using TIF. 11 Considerations for Reducing Vehicle Miles Traveled (VMT) Multimodal Mobility Fees General Plan Update — Circulation Element — Multimodal Transportation Mitigate Greenhouse Gas by reducing Vehicle Miles Traveled 10-Year Master Plan — Nexus Report - Active Transportation Plan - Projects, Cost Estimates 12 3/27/2023 W A 13 c '� M.• Mxn M M fNER nY^F M4M ]l] 1I B111 PbIEEPM N 11] l2 C A 14 3/27/2023 Transportation Impact Fee �M1D USE TYPE ,.,,�,,,,,, „�„ f,,,,,, ,,,�, W a,,,,, „�„ w.,,..y lu..m....r Ic.....i Ilferm�gy Non-residential uses NONAESIDENTLAL PER ADT` MGWM1fOfIl Ng111AlIy Wt Stm $112 flab IIFI12 LOIA6ICIA� YMn1M,wpR f@ On w f1f0 f M.N0.1Y.fNy.R w ftbl w St. .401gRAaw M flBt 31p 6115 WBLXJOOYmXYdi WA WA IGS ftt] RITAIL CMMOICIAL 1M1�14616 N.M1 i% f]0 yll S]! gwrwq.R E66 N10 w 5+10 MOJOMANp,R f)B 6101 S18] IbRWP11AYNMR MYW4I WI WAMIA,I o* AY) f10] 1+)B 110.t00.pR(NgA p+riwrpry bYYMdIW fIT 1]IB E40'iGJO'w q'R R'gW/ue/ h�MMW SII+ SAv xamow.wyR anw+r.p w.+.erre] Stn Qv w.wM.w�6 A. WbNAs 11M M+W.MiYIW i I.w.wg.AAbr�.,, IM +f2 owl AOL• AnnT Wf/TY 15 Impact Fee Opportunities in EOXs Current Programs Reimbursement of Impact Fees Reimbursement of Infrastructure Costs 16 Programs to be Activated • Tax Increment Financing of Impact Fees 3/27/2023 Framework for Development Impact Fee Deferral Program Deferral Options Eligibility Request for Final Inspection/ Industrial projects that create a Certificate of Occupancy minimum of 50 quality jobs. Two Years from date of Occupancy New office projects that create 50,000 (Payment in Full) square within the urban core. Equal Payments over Five Years. Retail projects that generate over $100,000 in new sales tax revenue. Affordable housing projects. 17 Example of Impact Fee Costs for Hypothetical Affordable Housing Project ExhEk FL W�In13 0119ee Pxxlry 18 3/27/2023 19 20 3/27/2023 Recommendation - The Committee may consider direction and policies presented or other areas not discussed to further explore. Committee can direct staff to consider capacity needs and impact fees within the General Plan Update, and/or undertake a formal nexus study required to fully analyze the associated costs and benefits for each policy decision point with options brought back to the committee for further action. 21 V BAKERSFIELD THE SOUND OF500*f '60G Staff: Scott Andrews, Assistant City Manager Mario Orosco, Budget Officer Committee Members: Councilmember, Andrae Gonzales -Chair Councilmember, Ken Weir Councilmember, Eric Arias Special Meeting of the Budget, Finance and Economic Development Committee of the City Council - City of Bakersfield Monday, February 27, 2023 12:00 p.m. City Hall North, First Floor, Conference Room A 1600 Truxtun Avenue, Bakersfield CA 93301 AGENDA SUMMARY REPORT Meeting called to order at 12:01 p.m. 1. ROLL CALL Committee Members Present: Councilmember Andrae Gonzales - Chair Councilmember Eric Arias Councilmember Weir (seated at 12:03 p.m.) City Staff Present: Christian Clegg, City Manager Gary Haller, Assistant City Manager Scott Andrews, Assistant City Manager Brianna Carrier, Assistant to the City Manager Paul Saldana, Economic Development Director Mario Orosco, Budget Officer Sara Ortega, Deputy City Clerk Juan Heredia, Administrative Analyst (CMO) Anthony Valdez, Assistant to the City Manager Misty Eaton, Economic & Community Development Principal Planner Josh Rudnick, Deputy City Attorney Evette Roldan, Wastewater Manager Joe Conroy, Public Information Officer Michelle Cruz, Management Assistant (CMO) Cecilia Griego, Principal Planner (ECD) Greg Strakaluse, Public Works Director Zachary Meyer, Assistant Public Works Director Caryn Claiborne, Wastewater Division Fiscal & Administrative Services Officer I Additional Attendees: Members of the Public and other City Staff 2. PUBLIC STATEMENTS a. Agenda Item Public Statements None b. Non -Agenda Item Public Statements None 3. ADOPTION OF THE January 30, 2023, AGENDA SUMMARY REPORT Motion to adopt the January 30, 2023, Agenda Summary Report by Committee Member Arias. Motion was approved with Councilmember Weir absent. 4. NEW BUSINESS a. Annual CDBG Action Plan Principal Planner Misty Eaton gave a presentation on 2023-24 HUD Budget and Action Plan Motion by Committee Member Arias to forward to Council. Motion unanimously approved. b. Section 108 Loan Program Economic and Community Development Director Paul Saldano and Principal Planner Misty Eaton discussed the Section 108 Loan Program details and action plan. c. Committee Discussion and Recommendations Regarding Sewer Connection Fee Rate Study Results: Proposed Increase in Connection Fees Wastewater Manager Evette Roldon gave a presentation on City of Bakersfield Connection Fee Study. Councilmember Gonzales made comments regarding adding a memo for a cumulative affect regarding fees on new development. After discussion Committee gave direction to forward to council. Budget Finance and Economic Development Committee Regular Meeting February 27, 2023, Agenda Page 2 5. COMMITTEE COMMENTS 6. ADJOURNMENT Meeting was adjourned of 1 :03 p.m. ANDRAE GONZALES, CHAIR BUDGET AND FINANCE COMMITTEE ATTEST: JULIE DRIMAKIS, MMC CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield Budget, Finance and Economic Development Committee Regular Meeting February 27, 2023, Agenda Page 3 BAKERSFIELD THE SOUND OF 5*14ut� 9ei{eY MEMORANDUM March 27, 2023 TO: BUDGET, FINANCE AND ECONOMIC DEVELOPMENT COMMITTEE Andrae Gonzales, Chair Ken Weir Eric Arias FROM: Various Departments, Including City Manager's Office, Development Services, Economic Community Development, Recreation and Parks, Public Works and Water Resources SUBJECT: Development Fee Review and Framework The goal of this action is to provide an overview of various development related Impact Fees and review various policy decision points to be considered within the framework. BACKGROUND Below is an outline of the Development Impact fees overview and several policy questions to be explored during the formal presentation. Overview of the purpose of impact fees Pay for capital needs required to expand city services (widening or improving roads; providing additional water/sewer capacity; or building additional parks) Current city impact fee structure and comparison Parks — Recreation and Parks Sewer Capacity — Public Works Water Demand — Water Resources Traffic Impact- Public Works III. Potential policy considerations related to impact fees Area specific impact fees considerations— Related to zoning and land use i. General Plan Update as a foundation by which Policies and fees can be considered. ii. Call out specific commercial zone for fee loans, discounts, payback strategies, , waivers, or deferrals. P. Include the most dense housing zones for fee loans, discounts, payback strategies, waivers or deferrals. Infrastructure standards and impact fee considerations. i. Build to the ultimate standard vs. paying for the ultimate standard ii. The city proactively builds infrastructure to entice development and potentially reduce impact fee needs in targeted development corridors iii. Impact fees credited to developers for building capacity fronting their project, consistent with the Regional Transportation Plan — Current practice IV. Traffic impact fee policy to review inclusion and expansion of multi -modal facilities including ped/bike projects. Economic Development Impact Fee considerations i. Target Areas such as EOA's for a fee deferral policy I. Tax Increment Funds Financing (TIF) — consider policy for impact fees payment with TIF. iii. Explore Property Tax exemptions in lieu of paying for impact fees. V. Examine the opportunity and cost of business attraction to reimburse development fee only for unique and compelling businesses to enhance the City strategic competitive advantages. RECOMMENDATION Staff recommends that the Committee review information within the presentation and any testimony associated with the Committee meeting and receive and file this informational report. The Committee may consider direction and policies presented for areas to further explore, direct staff to continue to work in a regional capacity with Kern County and the COG, consider capacity needs and impact fees within the General Plan Update, and/or undertake a formal nexus study required to fully analyze the associated costs and benefits for each policy decision point with options brought back to the committee for further action. Attached presentation delivered at the meeting.