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HomeMy WebLinkAboutJULY - SEPT 1981Bakersfield, California, July l, 1981 Minutes of a regular meeting of the Council of the City of Baker§field, California, held in the Council Chambers of City Hall at 8:00 P.M., July l, 1981. The meeting was called to order by Mayor Shell, followed by the Pledge of Allegiance and Invocation in the form of a prayer submitted by Reverend David Newquist, Pastor of the First Presby- terian Church. The City Clerk called the roll as Present: Mayor Shell. Councilmen Rockoff, follows: Strong, Barton, Christensen, Means, Payne Absent: Councilman Ratty Minutes of the recessed special meeting and regular meeting of June 17, 1981, were approved as presented. PRESENTATION OF RETIREMENT PLAQUE Mayor Shell presented a retirement plaque to Max L. Anderson, Fire Captain, who completed 29 years of service with the Fire Department of the City of Bakersfield, effective August 1, 1981. SCHEDULED PUBLIC STATEMENTS Mr. Paul Butler stated he was present tonight at the request of Mayor Shell to sing a song he wrote in rebuttal to Johnny Carson's degrading remarks about Bakersfield and it may be recorded by Buck Owens. CORRESPONDENCE Upon a motion by Councilman Rockoff, communication from the Greater Bakersfield Chamber of Commerce, dated June 25, 1981, requesting $30,000 to conduct industrial and promotional activities during fiscal year 1981-82, was received and referred to the Budget. Review and Finance Committee for study and recommendation. Upon a motion by Councilman Means, communication from Moreland Engineering, Inc., on behalf of Covington Technologies, dated June 30, 1981, requesting an amendment to the General Plan for commercial use of property located on the south side of Pachece Road and east of South "H" Street, was received and referred to the Planning Commission for study and recommendation. Bakersfield, California, July 1, 1981 - Page 2 4. '9 Upon a motion by Councilman Christensen, communication from John Pannick, President of The Kern Wheelman, 1011 Baker Street, dated June 25, 1981, regarding a policy decision concerning the organization of bicycle events on City streets, was received and referred to the Auditorium-Recreation Committee. COUNCIL STATEMENTS Councilman Rockoff stated, in regards to the many Police Officers and their families present tonight, that he was pleased to see them attend the Council Meeting. Councilman Rockoff read the following letter from Thomas Kelly Associates, dated June 24, 1981: Gentleman: Gentleman enclosed is a copy of the Resolution that was prepared prior to the last "Boat Drags." The owners of Cattle King Estates comment your organization for the smooth and orderly manner of these "Boat Drags." By your elimination of parking on Lake Ming Road, you helped minimize trespassing problems which had previously been experienced. One suggestion is that there is one traffic control officer assigned at the intersection of Rio Bravo Tennis Club and Cattle King Estates at Lake Ming Road to allow ingress and egress to these areas. Respectfully yours, Thomas S. Kelly Business Manager Cattle King Estates Councilman Rockoff expressed the gratification of the 3rd Ward residents for the work City and County officials did to prevent Drags. problems that have been experienced throughout the Boat Councilman Payne referred to an article that appeared in the Bakersfield Californian last week entitled something like "Payne Recalls He Was Ready To Kill A Man," which did not really reflect the contents of the article. The article did refer to an incident that occurred 53 years ago, when he was a member of the Police Department. It was a very one sided and biased article that related to a Police Brutality charge. Today a jury found the City of Bakersfield and himself totally innocent of all eleven charges. 46O Bakersfield, California, July l, 1981 - Page 3 REPORTS Councilman Christensen, Chairman of the Auditorium- Recreation Committee, read Report No. 11-81 regarding Kern Phil- harmonic Request for Financial Support, as follows: At the City Council meeting of June 17, 1981, communication from Kern Philharmonic was received and referred to the Auditorium-Recreation Com- mittee for study and recommendation. The communications from Kern Philharmonic addressed two separate issues requiring funding from the City of Bakersfield. The first matter was a request to the City of Bakersfield to increase its financial support to Kern Phil- harmonic from $3,500 to $5,000 per year. The second correspondence was to advise the City that a program of four Summer Pops Concerts in the City parks would cost from $11,000 to $12,500. This committee recognizes the cultural contri- bution made to the community by Kern Philharmonic, however, in light of the financial constraints the City of Bakersfield must face during the 1981-82 fiscal year, this committee feels the City is unable to increase its financial support to the Kern Philharmonic for its 1981-82 season, nor is the City able to consider providing financial support or funding for new programs such as the Summer Pops Concerts. Once again, this committee recognizes the cultural contribution made to the community by Kern Philharmonic and hopes that in future years the City will be in a more favorable position to consider such requests. Upon a motion by Councilman Christensen, Auditorium- Recreation Committee Report No. ll-81 regarding Kern Philharmonic Request for Financial Support, was accepted; and recommendations as outlined in the report, were approved. Councilman Rockoff, Chairman of the Budget Review and Finance Committee, read Report No. 10-81 regarding City Partici- paring with County of Kern in Study of Interchange at State Highways 178 and 99, as follows: The Rosedale general plan, recently adopted by the County, includes an alignment for a freeway west of State Highway 99. The freeway would extend into an area within the City of Bakers- field with an interchange at State Highway 99 and a connection to State Highway 178 east of State Highway 99. Bakersfield, California, July l, 1981 - Page 4 Due to the complexity of the interchange, the County Board of Supervisors approved the recom- mendation of the County Public Works Director requesting authorization to negotiate a 50/50 participation with the City of Bakersfield to arrange for the engagement of a consultant for the purposes of studying the interchange. The County Public Works Director has estimated the total cost of the consultant to be $25,000. The City's Public Works Director has reviewed the proposal and requests of the County Depart- ment of Public Works and recommends that the City participate on a 50/50 basis with the County of Kern as requested. Although the freeway in question is not within the City limits, this committee recognizes the freeway will serve both County and City residents as well. Further, the interchange to be studied is within the City and would be of benefit to the City of Bakersfield. This committee concurs with the recommendation of the City's Public Works Director and further recognizes the need for the City and County to jointly participate in such projects so as to minimize cost where possible. Sufficient funds are available in the Public Works budget account 11-242-4100, therefore, this committee recommends the City Council adopt this report and authorize the expenditure of the funds in an amount not to exceed $12,500. Upon a motion by Councilman Rockoff, Budget Review and Finance Committee Report No. 10-81 regarding City Participating with County of Kern in Study of Interchange at State Highways 178 and 99, was accepted; City's participation on a 50/50 basis, was approved; and expenditure of an amount not to exceed $12,500, from Public Works Acocunt No. 11-242-4100, was approved. Councilman Rockoff, Chairman of the Budget Review and Finance Committee, read Report No. ll-81 regarding No-Smoking Resolution, as follows: On June 17, 1981, Ms. Judi Wallrath, representing Smoking Ordinance Society of Kern (SOS), addressed the City Council and requested that the Council adopt a "Non-Smoking Ordinance." The City Council recognized and supports the request of Ms. Wallrath for a voluntary non-smoking program, consequently, the Council felt a resolution to be more appropriate than an ordinance. The request was referred to the Budget Review and Finance Committee for study and recommendation. Bakersfield, California, July 1, 1981 - Page 5 Pursuant to the belief that the rights of non- smokers can best be protected by voluntary recognition of the rights of non-smokers, this committee recommends that the City Council adopt a resolution encouraging voluntary com- pliance with the guidelines outlined in the attached resolution. Upon a motion by Councilman Rockoff, Budget Review and Finance Committee Report No. 11-81 regarding No-Smoking Resolution, was accepted. Adoption of Resolution No. 46-81 of the Council of the City of Bakers- field requesting a voluntary recog- nition of Non-Smokers' rights. Upon a motion by Councilman Christensen, Resolution No. 46-81 of the Council o£ the City of Bakers£ield requesting a voluntary recognition of Non-Smokers' rights, was adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne Noes Absent: None Councilman Ratty Councilman Payne recognized all the members of the Police Department and their families who were present in the audience in support of their bargaining units on salary negotiations. Detective Tony Ennis requested a brief recess in order to clear the Council Chambers. Mayor Shell introduced Police Officers Robert McDougal and Jess Molinar, two of the three officers who were recently hurt in the line of duty. Mayor Shell declared a brief recess at 8:25 P.M. and reconvened the Council Meeting at 8:30 P.M. CONSENT CALENDAR The following items were listed on the Consent Calendar: (a) Allowance of Claims Nos. 7325 to 7572, inclusive, in the amount of $1,194,911.00. (b) Claim for Damages from Bunkie W. Ash, 10716 Santa Clara, Lamont, California. (Refer to City Attorney) Bakersfield, California, July l, 1981 - Page 6 (c) Claim for Damages from Michael Segine, 2830 Alder Street, Bakersfield. (Refer to City Attorney) (d) Road Easement from Tenneco Realty Develop- ment Corporation providing access for construction of a bridge at the Arvin- Edison Canal and extension of Ming Avenue. (e) Street Right-of-Way Easement from Cora Tauchen providing additional right-of- way for public street as required by the Planning Commission for Parcel Map No. 6023, located on south side of Planz Road, east of Union Avenue. (f) Street Right-of-Way Deed from Ray J. Fanucchi required for proposed widening of Wilson Road between Hughes Lane and South "H" Street. (g) Map of Tract No. 4188 and Improvement Agreement with John Friis Jacobsen Living Trust for construction of improvements therein, located on south side of Stock- dale Highway at Jenkins Road. (h) Map of Tract No. 4302, located on east side of Columbus Street, at the inter- section of Oswell Street. The subdivision is being developed by Deeter Construction, Inc. (i) Improvement Agreement for Parcel Map No. 6023 with Industrial Venture, located on the south side of Planz Road, east of Union Avenue. (J) Notice of Completion and Acceptance of Work on construction of Alum Street Storm Drain, Contract No. 81-8 with J. L. Denio, Inc. Upon a motion by Councilman Means, Items (a), (b), (c), (d), (e), (f), (g), (h), (i) and (j) of the Consent Calendar, were adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne Noes: None Absent: Councilman Ratty ACTION ON BIDS Upon a motion by Councilman Payne, low bid of P. R. Field, Inc., in the amount of $177,880, for construction of the Ming Avenue Bridge at the Arvin-Edison Canal, was accepted, all other bids rejected and the Mayor was authorized to execute the contract. 464 Bakersfield, California, July 1, 1981 - Page 7 Upon a motion by Councilman Means, low bid for the Base and Alternate A of Steve Richey Company, in the amount of $128,340, for Storm Drains in Kern Street, south o£ 19th Street, and "V" Street at the Atchison Topeka and Santa Fe Railway, was accepted, all other bids rejected and the Mayor was authorized to execute the contract. Equipment Compactor bid rejected. Upon a motion by Councilman Payne, low bid of Mid-Cal Ford, in the amount of $20,776.00, for One Ton Truck with Aerial Device, was accepted and all other bids rejected. DEFERRED BUSINESS Report No. 3-81 from Water and City Growth Committee regarding Anheuser- Busch Proposal and approval of One Year Notice of Termination on Lease Agreement No. 75-134 with Lewis & Falletti Farms for farmland at Treatment Plant No. 3. Action on Report No. 3-81 from Water and City Growth Committee regarding Anheuser-Busch Proposal was held over from the Council Meeting of June 17, 1981, to allow the Cify Attorney time to review the provisions of the lease agrrement with Lewis & Falletti Farms regarding the renewal of their lease for the farm- land near Wastewater Plant No. 3. City Attorney Oberholzer stated the committee met with Mr. Lewis' attorney and reviewed the lease agreement. There is a specific termination provision in the lease, whereby the City can terminate it. Pursuant to Report No. 3-81 from the Water and City Growth Committee it was recommended that the staff enter into negotiations with Anheuser-Busch for the disposal of effluent. One of the concerns was, what would happen to the present lease with Lewis & Falletti Farms for use of that land at Treatment Plant Upon a motion by Councilman Means, low bid of Kern County Company, in the amount of $34,947.14, for Twelve Ton for Public Works Department, was accepted and the other Bakersfield, California, July 1, 1981 - Page 8 No. 3. Lewis & Falletti's attorney requested that the staff attempt to work with Anheuser-Busch in order to try and accommodate their farming operation at that location. It is the Committee's recom- mendation that the City proceed with the termination notice to Lewis & Falletti Farms, pursuant to paragraph 13 of the lease agree- ment, which is a one year termination notice. The lease expires in December, 1982, and if the Council takes action tonight to terminate it in one year, it would run out on July 1, 1982. After discussion, upon a motion by Councilman Barton, termination of Lease Agreement No. 75-134 with Lewis & Falletti Farms with appropriate one year Notice of Termination, pursuant to Article 13 of the agreement, was approved. Adoption of Ordinance No. 2649 New Series of the Council of the City of Bakersfield amending Section 5.38.010 of the Municipal Code to provide for participation on the Pension Board of the Fire Department Relief and Pension Fund by members of that fund. Upon a motion by Councilman Barton, Ordinance No. 2649 New Series of the Council of the City of Bakersfield amending Section 5.38.010 of the Municipal Code to provide for participation on the Pension Board of the Fire Department Relief and Pension Fund by members of that fund, was adopted by the following roll call vote: Ayes: Noes: Absent: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne None Councilman Ratty Acceptance of Report No. 3-81 from the Water and City Growth Committee regarding Anheuser-Busch Proposal and approval of recommendations as outlined in the report. Upon a motion by Councilman Barton, Water and City Growth Committee Report No. 3-81 regarding Anheuser-Busch Proposal, was accepted; and staff was authorized to notify Anheuser-Busch of the City's agreement in concept, negotiate the financial terms and 466 Bakersfield, California, July l, 1981 - Page 9 report back to the Water and City Growth Committee, and work with Lewis & Falletti Farms and Anheuser-Busch to assist Lewis & Falletti Farms to come out of this as financially whole as possible. Adoption of Ordinance No. 2650 New Series of the Council of the City of Bakersfield amending the Uniform Sales and Use Tax Ordinance of the City of Bakersfield, Chapter 6.08 of Title 6 of the Bakersfield Municipal Code, to increase the Sales and Use Tax imposed thereby from .951 of one percent to one full percent. Upon a motion by Councilman Strong, Ordinance No. 2650 New Series of the Council of the City of Bakersfield amending the Uniform Sales and Use Tax Ordinance of the City of Bakersfield, Chapter 6.08 of Title 6 of the Municipal Code, to increase the Sales and Use Tax imposed thereby from .951 of one percent to one full percent, was adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne Noes: None Absent: Councilman Ratty Adoption of Ordinance No. 2651 New Series of the Council of the City of Bakersfield amending Section 7.12.140 of, and adding Section 7.12.150 to, Chapter 7.12 of the Bakersfield Muni- cipal Code relative to Bingo Games. Upon a motion by Councilman Rockoff, Ordinance No. 2651 New Series of the Council of the City of Bakersfield amending Section 7.12.140 of, and adding Section 7.12.150 to, Chapter 7.12 of the Bakersfield Municipal Code relative to Bingo Games, was adopted by the following roll call vote: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne Ayes: Noes: Absent: None Councilman Ratty NEW BUSINESS First reading of an Ordinance of the Council of the City of Bakersfield amending Section 13.28.120 (b) of Chapter 13.28 of the Municipal Code of the City of Bakersfield relative to Mobilehomes in R-1 Zones (Appeal Process). Bakersfield, California, July l, 1981 - Page 10 467 This ordinance amends Section 13.28.120 (b) of the Muni- cipal Code enacted by the Council on June 17, 1981, to provide that appeals from the Building Director's denial of a permit for a mobilehome in an R-1 zone be heard by the Council, not the Planning Commission, as requested by Councilman Rockoff. First reading was considered given an Ordinance of the Council of the City of Bakersfield amending Section 13.28.120 (b) of Chapter 13.28 of the Municipal Code of the City of Bakersfield relative to Mobilehomes in R-1 Zones (Appeal Process). First reading of an Ordinance amend- ing Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 5341 Mohawk Street, and a parcel of land northwest of California Avenue and northeast of Mohawk Street. The application for this amendment was made by Tenneco Realty Development Corporation and would change subject properties from an R-1-HOSP. (One Family Dwelling - Hospital) Zone to a C-O (Commercial and Professional Office), or more restrictive Zone; and from an "A" (Agricultural), R-1 (One Family Dwelling), R-3-D (Limited Multiple Family Dwelling - Architectural Design) and C-2-D (Commercial Architectural Design) Zones to a C-O (Commercial and Professional Office), or more restrictive Zone. The Planning Commission recommended approval of this amendment. First reading was considered given an Ordinance amending ~Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 5341 Mohawk Street, and a parcel of land northwest of California Avenue and northeast of Mohawk Street. 468 Bakersfield, California, July 1, 1981 - Page First reading of an Ordinance of the Council of the City of Bakersfield amending Section 17.12.020 of Title 17 of the Municipal Code changing the Land Use Zoning of those certain properties in the City of Bakersfield located on the east side of Stine Road, and south of Harris Road; and making findings in connection with a P.U.D. Zone. The application Management Services, Inc., for this amendment was made by Developer's and would change subject properties from a P.U.D. (Planned Unit Development) to a Revised P.U.D. (Planned Unit Development) Zone. The Planning Commission recommended approval of this amendment. First reading was considered given an Ordinance of the Council of the City of Bakersfield amending Section 17.12.020 of Title 17 of the Municipal Code changing the Land Use Zoning of those certain properties in the City of Bakersfield located on the east side of Stine Road, and south of Harris Road; and making findings in connection with a P.U.D. Zone. Mr. James Patterson, Attorney at Law, representing Developer's Management Services, Inc., requested that the ordinance be amended to delete the reference to Tract No. 3827 Unit "D", which has been withdrawn. City Attorney Oberholzer stated the ordinance would be amended accordingly. Adoption of Resolution No. 47-81 of the Council of the City of Bakers- field approving the destruction of certain obsolete City records, docu- ments, instruments, books and papers, pursuant to Section 34090 et seq. of the Government Code of the State of California. Periodically the Finance Department destroys certain records, documents, etc., pursuant to California law. These documents have to be at least five years old and require a resolution approving the destruction by the City Council and approval by the City Attorney. The City Attorney has approved the destruction of these records. A resolution of the City Council completes the action necessary prior to destruction. Bakersfield, California, July 1, 1981 - Page 12 469 Upon a motion by Councilman Rockoff, Resolution No. 47-81 of the Council of the City of Bakersfield approving the destruction of certain obsolete City records, documents, instruments, books and papers, pursuant to Section 34090 et seq. of the Government Code of the State of California, was adopted by the following roll call vote: Ayes: Noes: Absent: 48-81 of Meeting in roll call vote: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne None Councilman Ratty Adoption of Resolution No. 48-81 of the Council of the City of Bakers- field deleting a Council Meeting in the month of July, 1981. Upon a motion by Councilman Christensen, Resolution No. the Council of the City of Bakersfield deleting a Council the month of July, 1981, was adopted by the following Councilmen Rockoff, Payne Strong, Barton, Christensen, Means, None Councilman Ratty Adoption of Resolution No. 49-81 of the Council of the City of Bakers- field setting Friday, July 3rd, 1981 as the day of observance for Independence Day July 4, 1981. Ayes: Noes: Absent: Upon a motion by Councilman Christensen, Resolution No. 49-81 of the Council of the City of Bakersfield setting Friday, July 3rd, 1981 as the day of observance for Independence Day July 4, 1981, was adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne None Councilman Ratty Adoption of Resolution No. 50-81 of Intention of the Council of the City Of Bakersfield to establish Maintenance District No. 1. Noes: Absent: 470 Bakersfield, California, July l, 1981 - Page 13 This proposal is to establish a Maintenance District to provide for the payment of the costs and expenses of maintaining and operating a planted median divider strip along Gosford Road between Stockdale Highway and Ming Avenue. The formation of this District has been requested by Tenneco. Upon a motion by Councilman Payne, Resolution No. 50-81 of Intention of the Council of the City of Bakersfield to establish Maintenance District No. l, was adopted by the following roll call Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne Noes: None Absent: Councilman Ratty. Adoption of Resolution No. 51-81 of the Council of the City of Bakers- field preliminarily adopting, con- firming and approving Public Works Director's Report; appointing time and place for hearing protests to the proposed District; the boundaries thereof; the fairness of the benefit formula; the amount of assessment to be levied against each parcel and the reservation of right to perform work by City forces. The Director's report includes the proposed 1981-82 budget and assessment upon all parcels of property within the proposed District. The maintenance cost to be assessed is $9,900. August 5, 1981 is the date scheduled to hear protests on the proposed District. Upon a motion by Councilman Payne, Resolution No. 51-81 of the Council of the City of Bakersfield preliminarily adopting, confirming and approving Public Works Director's Report; appointing time and place for hearing protests to the proposed District; the boundaries thereof; the fairness of the benefit formula; the amount of assessment to be levied against each parcel and the reservation of right to perform work by City forces, was adopted by the vote: Ayes: Bakersfield, California, July l, 1981 - Page ~4 47! following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne Noes: None Absent: Councilman Ratty Adoption of Resolution No. 52-81 of the Council of the City of Bakers- field establishing the City of Bakersfield appropriation limit for Fiscal Year 1981-82. The following is a memorandum from W. D. Higginbotham, Assistant City Manager-Finance, dated June 26, 1981, regarding Appropriations Limitation Resolution: On November 6, 1979, the voters of California approved Proposition 4 (Gann Initiative) which amended the State of California's Constitution to include Article XIIIB. The amendment and attendant legislation, Senate Bill 1352, requires each local government to establish an appropriations limit by resolution each year. This legislation allows the annual appropriations limit to be adjusted annually by the lesser of the cost o£ living or the per capita increase in California plus real growth (population increases or decreases). The appropriations limit for the City of Bakersfield is computed to be $32,732,614 for fiscal year 1981-82. However, the City's actual appropriations subject to limitation are $28,452,315 for fiscal year 1981-82. As you will note, the appropriations subject to limitations are $4,280,299 below our mandatory limit. Any challenge to the appropriations limit must be brought within 45 days of the effective date of this resolution. Further, the City must and has made available to the public the documen- tation used in determining the appropriations limit. The City of Bakersfield's documentation of the appropriations limitation is on file in the Finance Department at City Hall. The attached schedule sumarizes the documentation and the steps taken in determining the appro- priations limit. Upon a motion by Councilman Rockoff, Resolution No. 52-8~ of the Council of the City of Bakersfield establishing the City of Bakersfield appropriation limit for Fiscal Year 1981-82, was adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Means Noes: None Absent: Councilmen Payne, Ratty 472 Bakersfield, California, July 1, 1981 - Page 15 Approval of Lease Agreement between the City of Bakersfield and American Home Industries Corporation for City- owned property located at 1611 and 1612 "S" Street. Pursuant to authorization o£ the City Council, the staff has negotiated a lease agreement with American Home Industries Corporation at the rental rate of $2,500 per month. Mayor Shell announced that due to a real or imaginary conflict of interest, Councilman Payne would not participate in this matter. Upon a motion by Councilman Christensen, Lease Agreement between the City of Bakersfield and American Home Industries Corporation for City-owned property located at 1611 and 1612 "S" Street, was approved and the Mayor was authorized to execute same. Approval of Contract between the City of Bakersfield and Chris A. Addington and Associates, 9339 Rosedale Highway, Bakersfield, for Architectural Services for construction of new crew quarters at Fire Station No. l, 2101 "H" Street. Upon a motion by Councilman Means, Contract between the City of Bakersfield and Chris A. Addington and Associates, 9339 Rosedale Highway, Bakersfield, for Architectural Services. for construction of new crew quarters at Fire Station No. l, 21~H" Street, was approved and the Mayor was authorized to execute Approval of submission of applications to HUD from Kern County Housing Authority for 35 and 31 Moderate Rehabilitation Units. The Kern County Housing Authority proposes to submit an application to the Department of Housing and Urban Development for 35 Moderate Rehabilitation Housing Units, which requires the con- currence of the City and County of Kern. Community Development staff has reviewed the application and finds it to be in conformance with the Housing Assistance Plan. Community Development Coordinator Gilchrist stated that in addition to the 35 units listed on the agenda, Hud has notified Bakersfield, California, July 1, 1981 - Page 16 473 the Kern County Housing Authority that there is another 31 units available that can be applied for and authorization is being requested for approval of both applications. Upon a motion by Councilman Payne, submission of appli- cations to HUD from Kern County Housing Authority for 35 and 31 Moderate Rehabilitation Units, were approved and the Mayor was authorized to execute same. HEARINGS This is the time set for public hearing before the Council of the City of Bakersfield for the purpose of receiving written and oral testimony regarding transit needs in the City of Bakersfield. This hearing has been duly advertised in the local news- paper and posted. Mayor Shell declared the hearing open for public partici- pation. No one in the audience indicated a wish to speak and Mayor Shell closed the public portion of the hearing for Council delibera- tion and action. Upon a motion by Councilman Means, Resolution No. 53-81 of the Council of the City of Bakersfield finding there are no unmet public transportation needs which could be reasonably met, was adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne Noes: None Absent: Councilman Ratty ADJOURNMENT There being no further business to come before the Council, upon a motion by Cou~lman Christensen, the meeting was adjourned at 9:15 P.M. ~~ j~ MAYOR of ~ ~ty of Bakersfield, Calif. ATTEST: ~ CITY CLERK a~ Ex~fficio Clerk of th Council of the City of BaKersfield, California ma 474 Bakersfield, California, July 8, 1981 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., July 8, 1981. The meeting was called to order by Mayor Shell, followed by the Pledge of Allegiance and Invocation in the form of a prayer submitted by Pastor I. H. Terry, First Pentecostal Church of Jesus Christ. The City Clerk called the roll as follows: Present: Mayor Shell. Councilmen Strong, Barton, Christensen, Means, Rockoff Absent: Councilmen Payne, Ratty Minutes of the regular meeting of June 24, 1981 were approved as presented. CORRESPONDENCE Upon a motion by Councilman Barton, communication from Senator Alan Cranston, dated June 26, 1981, regarding budget cuts for AMT~AK, was received and ordered placed on file. Upon a motion by Councilman Rockoff, communication from Kaiser Realty Corporation, dated July 3, 1981, requesting rein- statement of their request for annexation of property located on the southeast corner of Fraser Road and Buena Vista Road, containing 87 acres of land, was received and referred to the Planning Com- mission for study and recommendation. Upon a motion by Councilman Barton, communication from the Bakersfield Art Commission, dated July 6, 1981, informing the Council of a vacancy on the Art Commission due to the death of W. Francis Parsons and recommending a person to fill that vacancy, was received, ordered placed on file and Mrs. Genell Swan, 1805 Doolittle Avenue, was appointed to fill the vacancy. COUNCIL STATEMENTS Councilman Means stated last week he attended a Public Utilities Commission hearing to testify against Pacific Gas and Electric Company's latest rate increase request, however, since two Councilmen are absent tonight he will make a report at the next m~eting. Bakersfield, California, July 8, 1981 - Page 2 47. REPORTS Director of Fire & Development Services Needham reported that during the 4th of July Fireworks at the Bakersfield College Stadium there were more fireworks outside the stadium than inside, and a lot of them were illegal. The cause of most of the damage in the Bakersfield area was from illegal fireworks. One of the major problems is that legal fireworks are being altered into illegal fireworks. In the City of Bakersfield, from June 27th through July 5th, there were seven dwelling structure, 53 grass and 10 miscellaneous fires, all caused by fireworks. The total loss from the seven structure fires was $89,900. The County, from July 3rd through July 5th, experienced 220 emergency fire calls; ll0 were caused by fireworks and 12 structure fires, at a total loss of $161,000. The County, including the City of Bakersfield, has a fire loss of about a quarter million dollars caused by fireworks this year. There were 21 injuries related to legal and illegal fireworks reported by local hospitals. The more serious injuries were: 3rd degree burns to the hand on one person; 2 badly lacerated foot injuries; and 2 eye injuries. The purpose of this report is to inform the community and Council of the problems this and other communities are having with fireworks. Fireworks in relation to the celebration of the Independence of this Country no longer go together. It is becoming too much of a problem and the Country is going to have to learn, evenutally, to celebrate in another manner. Councilman Strong stated the distributors of the fireworks are as concerned with this problem as the Council and Fire Depart- ment and they have some very worthwhile suggestions as to how to minimize some of the accidents. Councilman Strong encouraged the staff and Council to contact the distributors. CONSENT CALENDAR The following items were listed on (a) Allowance of Claims Nos. 7573 inclusive, in the amount of the Consent to 7692, $995,396.97. Calendar: 476 Bakersfield, California, July 8, 1981 - Page 3 (b) Claim for Damages from Evelyn J. Hunt, Jwynet's Liquors, 520 Union Avenue, Bakers- field. (Refer to City Attorney) (c) Alley Easement from Tenneco Realty Develop- ment Corporation providing public access as required by the Planning Commission for Parcel Map No. 5967, located at southeast corner of Ashe Road and White Lane. (d) Application for Encroachment Permit from Henry Curameng, 2913 Foxboro Court, for construction of the siding of a building extending 4" maximum into the right-of-way on Tulare Street at southeast corner of Tulare and East 21st Streets. (e) Plans and Specifications for construction and modification of Traffic Signals at the intersections of New Stine and Wilson Roads, Coffee Road and Truxtun Avenue and Ming Avenue and Castro Lane. (f) Plans and Specifications for construction and replacement of the First Point Measuring Structure on the Kern River. Upon a motion by Councilman Means, Items (a), (b), (c), (d), (e) and (f) of the Consent Calendar, were adopted by the following roll call vote: Ayes: Councilmen Strong, Barton, Christensen, Means, Rockoff Noes: None Absent: Councilmen Payne, Ratty DEFERRED BUSINESS Adoption of Ordinance No. 2652 New Series of the Council of the City of Bakersfield amending Section 13.28.120 (b) of Chapter 13.28 of the Municipal Code of the City of Bakersfield relative to Mobilehomes in R-1 Zones (Appeal Process). Upon a motion by Councilman Rockoff, Ordinance No. 2652 New Series of the Council of the City of Bakersfield amending Section 13.28.120 (b) of Chapter 13.28 of the Municipal Code of the City of Bakersfield relative to Mobilehomes in R-1 Zones (Appeal Profess), was adopted by the following roll call vote: Ayes: Councilmen Strong, Barton, Christensen, Means, Rockoff Noes: None Absent: Councilmen Payne, Ratty Bakersfield, California, July 8, 1981 - Page 4 477 Adoption of Ordinance No. 2653 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 5341 Mohawk Street, and a parcel of land northwest of California Avenue and northeast of Mohawk Street. The application for this amendment was made by Tenneco Realty Development Corporation and would change subject properties from an R-1-HOSP. (One Family Dwelling - Hospital) Zone to a C-O (Commercial and Professional Office) Zone; and from an "A" (Agricultural), R-1 (One Family Dwelling), R-3-D (Limited Multiple Family Dwelling - Architectural Design) and C-2-D (Commercial Architectural Design) Zones to a C-O (Commercial and Professional Office) Zone. Upon a motion by Councilman Means, Negative Declaration and Ordinance No. 2653 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 5341 Mohawk Street, and a parcel of land north- west of California Avenue and northeast of Mohawk Street, finding said zonings consistent with the General Plan, were adopted by the following roll call vote: Ayes: Councilmen Strong, Barton, Christensen, Means, Rockoff Noes: None Absent: Councilmen Payne, Ratty Adoption of Ordinance No. 2654 New Series of the Council o£ the City of Bakersfield amending Section 17.12.020 of Title 17 of the Municipal Code changing the Land Use Zoning of those certain properties in the City of Bakersfield located on the east side of Stine Road, and south o~ Harris Road; and making £indings in connection with a P.U.D. Zone. The application for this amendment was made by Developer's Management Services, Inc., and would change subject properties from a P.U.D. (Planned Unit Development) Zone to a revised P.U.D. (Planned Unit Development) Zone. 478 Bakersfield, California, July 8, 1981 - Page 5 Upon a motion by Councilman Barton, Negative Declaration and Ordinance No. 2654 New Series of the Council of the City of Bakersfield amending Section 17.12.020 of Title 17 of the Municipal Code changing the Land Use Zoning of those certain properties in the City of Bakersfield located on the east side of Stine Road, and south of Harris Road; and making findings in connection with a P.U.D. Zone, finding said zoning consistent with the General Plan, were adopted by the following roll call vote: Ayes: Noes: None Absent: Councilmen Strong, Barton, Christensen, Means, Rockoff Councilmen Payne, Ratty NEW BUSINESS First reading of an Ordinance amend- ing Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield located south of California State College, north of Sunset Railroad, west of the Arvin-Edison Canal and Gosford Road, and east of Old River Road. The application for this amendment was made by Tenneco Realty Development Corporation and would change subject properties from an "A" (Agricultural) Zone to an R-1 (One Family Dwelling), R-2 (Limited Multiple Family Dwelling), R-3 (Limited Multiple Family Dwelling), C-O (Commercial and Professional Office) and C-2 (Commercial), or more restrictive Zones. amendment. The Planning Commission recommended approval of this First reading was considered given an Ordinance amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield located south of California State College, north of Sunset Railroad, west of the Arvin-Edison Canal and Gosford Road, and east of Old River Road. Bakersfield, California, July 8, 1981 - Page 6 479 Adoption of Resolution No. 54-81 of the Council of the City of Bakers- field authorizing the filing of an Application with the Kern County Council of Governments for allocation of Transportation Development Act Funds £or Fiscal Year 1981-82. Each year the City is required to file a claim with Kern COG for Transportation Development Act Funds. This resolution authorizes the Public Works Director to file a claim for an allo- cation from the Kern County Council of Governments. Projects to be included in the application are shown in the draft 1981-82 Capital Improvement Program. The claim can be modified if changes are made during the budget hearings. The amount of the claim is $1,200,000. Upon a motion by Councilman Rockoff, Resolution No. 54-81 of the Council of the City of Bakersfield authorizing the filing of an Application with the Kern County Council of Governments for allocation of Transportation Development Act Funds for Fiscal Year 1981-82, was adopted by the following roll call vote: Ayes: Councilmen Strong, Barton, Christensen, Means, Rockoff Noes: None Absent: Councilmen Payne, Ratty Approval of request to join the Department of Rehabilitation in voluntary compliance with State Side- walk Accessibility Laws. Several years ago the Postal Department required mailboxes to be placed curbside and a short time thereafter this was determined to be in violation of State law relating to accessibility of side- walks to handicapped persons. For several years the Attorney General has attempted to find a resolution to this problem in Bakersfield. The latest proposal requests the City Council join the Department of Rehabilitation in requesting voluntary compliance with State Sidewalk Accessibility Laws. Upon a motion by Councilman Christensen, request to join the Department of Rehabilitation in voluntary compliance with State Sidewalk Accessibility Laws, was approved. Bakersfield, California, July 8, 1981 - Page 7 Acceptance of Sergeant Patrick Don Vegas Memorial Film Library to be housed at the Police Department. The Kern County Insurance Adjusters Association wishes to establish a public safety film library for use by various schools, civic groups, etc., and has requested that this library be housed at the Police Department for film distribution. The films will relate to public safety, crime prevention, etc. They have agreed to perform the time-consuming activities with regard to the library, leaving the Police Department only to act as librarian. Upon a motion by Councilman Means, Sergeant Patrick Don Vegas Memorial Film Library to be housed at the Police Department, was accepted. Councilman Strong stated he received a letter from the Chateau Basque Restaurant, 101 Union Avenue, dated July l, 1981, regarding charges for sewer service and requested that the staff them and work out something regarding the contents of the contact letter. Approval of Grant Agreement with the Department of Housing and Urban Development for Community Develop- ment Block Grant Program for Fiscal Year 1981-82 and acceptance of provisions. On July 2, 1981 the Department of Housing and Urban Development approved the City's 1981-82 Community Development Blcok Grant Program in the amount of $1,434,000 plus $83,500 carried over from the previous year. This application was previously approved by the Council and submitted to HUD on April 15, 1981. Upon execution of the Grant Agreement the City's existing letter of credit for the program will be increased by the 1981-82 entitle- ment amount of $1,434,000. It is anticipated that the City will draw on this letter of credit for the Senior Center and administration costs prior to the next scheduled Council Meeting of July 29, 1981, necessitating action on this item at this time. Bakersfield, California, July 8, 1981 - Page 8 Upon a motion by Councilman Christensen, Grant Agreement with the Department of Housing and Urban Development for Community Development Block Grant Program for Fiscal Year 1981-82, was approved, provisions accepted and the Mayor was authorized to execute same. EXECUTIVE SESSION Upon a motion by Councilman Barton, the Council recessed to an Executive Session for consultation with Nicholas Counter, City's Labor Negotiator, regarding Labor Negotiations. The regular meeting was reconvened at 9:49 P.M. ADJOURNMENT There being no further business to come before the Council, upon a motion by Councilman Barton, the meeting was adjourned at 9:50 P.M. MAYOR of t~Ci~ty'of r aker~ Calif. ATTEST: CITY CLERK~ and ~x Officio Clerk of of ma the Council the City of Bakersfield, California Bakersfield, California, July 20, 1981 Minutes of a budget session of the Council of the City of Bakersfield, California, held in the Council Chambers of City Hall at 7:00 P.M., July 20, 1981. The meeting was called to order by Mayor Shell followed by the Pledge of Allegiance. The City Clerk called the roll as follows: Present: Mayor Shell. Councilmen Barton, Christensen, Means, Payne (seated at 7:20 P.M.), Ratty, Rockoff, Strong Absent: None Councilman Christensen, Chairman of the Auditorium- Recreation Committee, read Report No. 12-81 regarding California Avenue Park Neighborhood Facility Budget for 1981-82, as follows: Each year, the Recreation Budget is submitted prior to the regular budget hearings in order that recruitment of personnel for the summer programs may begin immediately. On April 22, 1981, this committee recommended the adoption of the 1981-82 Recreation Budget for Aquatics, Sports, and Parks and Playgrounds. Action on the budget for the California Avenue Park Neighborhood Facility was deferred pending the recommendation forthcoming from a study being conducted by a special committee appointed by the City Manager. The committee report and recommendations were submitted to the City Manager on June 15, 1981 (Attachment A). The proposed budget for the California Avenue Park Neighborhood Facility incorporates the recommendations contained in the committee report and where appropriate, the recommenda- tions have been addressed in the 1981-82 objectives. The total 1981-82 budget for the facility is $235,185, which reflects an increase of $14,530. As the committee recommended, that figure includes the transfer of one Building Maintainer, and related costs from General Services. Capital expenditures include major items such as the replacement of an'old type- writer on loan from the Civic Auditorium, mats and rubber matting related to the Men's Body- Conditioning Programs and Women's Exercise Programs, and games which will increase the use and participation of the recreation and game room area. Additionally, so as to assist in measuring the attainment of the 1981-82 objectives, this committee has requested the staff incorporate attendance figures and percentages into the appropriate objectives and would recommend that the budget should include an objective which reflects the total current attendance and pro- posed increases for the 1981-82 fiscal year. Bakersfield, California, July 20, 1981 - Page 2 483 In conclusion, this committee recommends that the City Council adopt the 1981-82 Proposed Budget for the California Avenue Park Neighbor- hood Facility (Attachment B). Auditorium-Recreation Manager Graviss stated the recom- mendations in the City Manager's Study are adequate and can be incorporated this year. It is hoped that when it is time to come before the Council for next year's appropriations that there will be more new innovative measures taken in the Cali£ornia Avenue Park Neighborhood Facility. It is also planned to rename this facility in order to enhance the area and try to get the park used to its ultimate. City Manager Kelmar stated that there are a lot of activities at this facility that most of the Council may not be aware of. They have started a Track Program and some participants have qualified for the national championship. There is a Basket- ball Program, sponsored by the Police Athletic Benefit Association~ that possibly may qualify for a national tournament in Las Vegas, Nevada. There are a number of activities, also, that demonstrate a very positive note for that facility. With the items being recom- mended the program should move ahead considerably. Upon a motion by Councilman Christensen, Auditorium- Recreation Committee Report No. 12-81 regarding California Avenue Park Neighborhood Facility Budget for 1981-82, was accepted; recommendations as outlined in the report, were approved; and Proposed Budget for the California Avenue Park Neighborhood Facility for Fiscal Year 1981-82, was adopted. Councilman Rockoff, Chairman of the Budget Review and Finance Committee, read Report No. 12-81 regarding Communications Study, as follows: On October 29, 1980, the City Council authorized Stanford Research Institute (SRI) to conduct a study of the current communication system within the City, and make recommendations for the future needs of the system. This study was necessitated due to serious problems being experienced with 4S4 Bakersfield, California, July 20, 1981 - Page 3 the present system. At the Council Meeting of June 3, 1981, Wrex Beaman of SRI presented a final report to the Council, with recommendations. The report was received by the City Council and referred to the Budget Review and Finance Committee for study and recommendation. The report indicated that part of the communi- cation system and equipment was sound, but at the present time there exist deficiencies, which include blank spoteast and north of the bluff area, including a major portion of Rio Bravo. Also, there is no central planning or person to oversee the maintenance of the system and to plan for future needs as the City grows, as well as to consider the system as a single system rather than several individual systems as it now operates. SRI made recommendations regarding staffing, recommendations regarding changes in operations, recommendations for technical changes, and they recommend that these changes be made in six steps over a period of five years. This committee, with the assistance of staff, has reviewed these proposals and, while the staff is not in agreement with the full findings of the report, there is substantial agreement on Steps 1 and 2, which would institute a high altitude site to take care of the immediate needs of deficient radio coverage in the emergency radio system and start the City on a program of unifying the communications system so that Public Works, Building and the Water Departments will also have adequate coverage in the future. In order to accomplish Step l, additional staffing will be required. In discussing SRI's proposals with City staff, it is believed the substantial increase in staffing recommended by SRI could be phased over a longer period of time than SRI recommended, if the City so chooses to follow their complete program. During the initial implementation of Step l, the committee and staff will continue to review the plan to determine the extent to which the City intends to implement the ultimate completion of all of SRI's recommendations. This committee referred to and recommended that the Governmental Efficiency and Personnel Committee review and approve an immediate change in the staffing in the Communications Section of the Police Department to upgrade one of the existing positions of Electronics Technician to a Communications Coordinator, who will act as Manager and Planner; change the title of the other Electronics Technician position to Com- munications Technician II; and authorize an additional position of Communications Technician I. It is felt that this is the minimum staffing necessary to handle the immediate maintenance Bakersfield, California, July 20, 1981 - Page 4 485 needs of the system as it now exists and start moving the communications system to better serve the City in future years. On July 13, 1981, the Governmental Efficiency and Personnel Committee met and reviewed the proposed staffing changes, concurred with the Budget Review and Finance Committee, and has recommended approval of the positions and specifications, which are included and attached to this report. These personnel changes will cost approximately $40,000 annually. The total estimated cost of the high altitude site is $128,000, including land, road con- struction, tower, and building. There is $41,000 remaining from prior years' Revenue Sharing Funds budgeted for communications. Consequently, it will be necessary to set aside additional Revenue Sharing Funds in the amount of $87,000. In conclusion, this committee recommends that the Council, as part of its budget action, initiate Step 1, which is the institution of the high altitude site and set aside Revenue Sharing Funds, in the amount of $87,000, and approve the attached Salary Resolution and Job Specifications as recommended by the Governmental Efficiency and Personnel Committee. Also, this committee recommends the Council authorize the initiation of Step l, as outlined above and direct staff to report back to the Budget Review and Finance Committee within six months as to the status of the action taken. Police Chief Price answered questions of Councilman Barton regarding consolidation with the County communications system and the 911 County-Wide Plan. Chief Price stated consolidation with the County was discussed in the SRI Report and not recommended. Presently there is a great deal of cooperation between the two communication centers, through direct lines, etc. The Fire Study is tied into this, which has some bearing on the communication center. The 911 County-Wide Plan has been considered and accepted by both the City and County. The Enhance System, which means the telephone company, through the State, will be installing a computerized system that will locate the caller and direct them to the correct facility. Whatever the City does will not effect that, so long as we have the proper facilities available when it is ready for installation in approximately two years. 486 Bakersfield, California, July 20, 1981 - Page 5 In answer to a question by Councilman Christensen, Chief Price stated that two sites are being considered for the high altitude site. One is located on Mount Adelaide and the other on the east side of Kern Canyon Road. The cost figures given are on the Mount Adelaide site, because it appears to be the best location, however, staff is not locked into this site. If something better comes along, prior to the time land is purchased, that site would also be considered. Upon a motion by Councilman Rockoff, Budget Review and Finance Committee Report No. 12-81 regarding Communications was accepted; approved. and recommendations as outlined in the report, Adoption of Resolution No. 55-81 of the Council of the City of Bakers- Upon of the Council 42-80, setting Study, were field amending Resolution No. 42-80, setting salaries and related benefits for Officers and Employees of the City of Bakersfield. a motion by Councilman Rockoff, Resolution No. 55-81 of the City of Bakersfield amending Resolution No. salaries and related benefits for Officers and Councilmen Rockoff, Means, and Ratty, members of the Review and Finance Committee, read Report No. 13-81 regarding Budget for Fiscal Year 1981-82, as follows: It is the responsibility of the Budget Review and Finance Committee to review and make recom- mendations on the Proposed Annual Operating Budget. It was this committee's desire to approach this Operating Budget review differently than was done in the past so as to obtain a greater insight into the City's operations and a better understanding of service levels. In order to obtain this greater insight, this committee met with each of the department heads Budget Operating roll call vote: Ayes: Noes: None Absent: Councilmen Payne, Ratty Councilmen Barton, Christensen, Means, Rockoff, Strong Employees of the City of Bakersfield, was adopted by the following Bakersfield, California, July 20, 1981 - Page 6 487 and discussed at great length the various pro- grams, program objectives, and service levels under their administration. The budget format is similar to that of last year. The proposed budget is divided into six major service areas; Management Services, Environmental Services, Development and Transportation Services, Public Safety Services, Recreation and Cultural Services, and Support Services. In turn, these service areas are further broken down into the various programs and subprograms that make up each major service area. Major specific annual objectives to be achieved during the fiscal year are also listed for each subprogram. The Operating Budget discussed in this report consists of the operating expenses and fixed asset purchases proposed for the General Tax Rate Category and operating type expenditures within the Community Development Block Grant and Gas Ta~ which are included in the Restricted Agency Category. Operating expenses consist basically of materials, supplies, utilities, etc. Fixed assets consist of Departmental Capital Outlay Items such as office equipment, automotive equipment, communication equipment, etc. The Operating Budget does not include Salaries and Supplemental Benefits nor Capital Improvment Projects. The Governmental Efficiency and Personnel Committee will make recommendations on all salary matters. The entire City Council will review the Proposed Capital Improvement Program, which has been evaluated by the Planning Commission. As in prior years, the Departmental Operating Budgets have been prepared in a manner to reflect the total costs of providing a particular program, which includes such items as Data Processing, Legal, Finance, Personnel, etc. This is accomplished by including in the budgets, where applicable, such items as: (1) Custodial Services Cost Allocation, Object Number 5300; (2) Administrative Cost Allocation, Object Number 5400; and (3) Rental Internal Organiza- tions, Object Number 6200. The Custodial Service Cost Allocation is re- flected in those programs which receive custodial services. In the case of programs located in City Hall, each program is charged for their proportionate share of the maintenance cost of City Hall based on their total square footage of office space. Programs operating outside of City Hall are charged based on the cost of employees and materials involved in per£orming the services. The Administrative Cost Allocation entails an allocation of the cost of staff programs (i.e., City Manager's Office, City Clerk City Attorney, and Finance) to the various line programs (i.e., Bakersfield, California, July 20, 1981 - Page 7 Police, Fire, Public Works, etc.) based on the percentage that the cost of each line program bears to the total cost of all line programs; the theory being that staff programs are designed to provide services to the line pro- grams. The allocations are deducted from the budgets of the staff programs as "Cost Applied," Object Number 0001, so that the total City budget remains unchanged. The Equipment Maintenance Division of the Public Works Department provides a central equipment pool for all departments. This rental charge is reflected in each using department's budget under the account entitled, "Rental Internal Organizations," Object Number 6200. These rental rates are adjusted annually to reflect the cost of operating the applicable equipment. When considering the Operating Budget, it is important for both the City Council and the public to understand the effect of growth and development on City operations, more specifi- cally, the demand for services. The following statistics illustrate this point and indicate the increases the City has experienced over the last year: Population - 109,000, up Street Miles - 460, up 15% Park Acreage - 232, up 7% Police Calls for Service 85,000, up 14% (projected for 1981-82 89,600) Police Patrol Miles - 1,800,000 miles, up 20% The following is a summary of the Operating Budget indicating the amount, pior to allocations as described above, for each City program. Also included are pertinent comments concerning the items included in this specific budget and a page number reference to the applicable budget in the Preliminary Budget document: MANAGEMENT SERVICES Mayor - (Page 18-19) - $6,865 The Proposed Operating Budget is the same as last year. City Council - (Page 20-21) - $597,900 The budget for the City Council for the 1981- 82 fiscal year provides $25,000, if necessary, to assist in the administration costs of the Senior Citizens' Center. Bakersfield, California, July 20, 1981 - Page 8 489 City Manager - (Page 25-29) - $240,350 This committee reviewed the specific annual objectives within each subprogram in the City Manager's Budget. It was noted that, in an effort to keep this committee and the City Council apprised of the attainment of all objectives throughout the budget, the City Manager's Office will be providing quarterly reports to this committee with respect to the objectives and performance of each department within the City. Also, the City Manager proposes to conduct an educational program for all management personnel on "Management by Objectives" so staff will be able to improve on the preparation and reporting of objectives in future years. In addition, this committee requested a December 31, 1981 status report of Objective Number l, the establishment of written procedures for Fire and Police entry level recruiting and testing. Presently, the "Index System" for the City records and Council proceedings are unmanage- able. The committee agrees with the recom- mendation of the Assistant City Clerk to pursue the feasibility of establishing the "Index System" on the City's computer. Community Promotion (Page 30-31) - $21,000 Although an increase was requested by the Chamber of Commerce, this committee does not recommend a proposed change in the contract with the Chamber of Commerce for industrial promotion. While this committee recognizes the request of the Chamber of Commerce for additional funding for 1981-82, the financial constraints the City faces for the next fiscal year dictate that the City not increase its support and contribution to the Chamber of Commerce at this time. Also, this committee would request that the Chamber continue to make a report to the Council on their activities related to industrial promotion and discuss the effectiveness related to those activities. Hopefully, in future years, the Council can consider such requests with more favorable results. Insurance (Property and Liability) (Page 34-35) - As a result of favorable experience in our Self- Insurance Fund, it is not necessary to fund any monies this year for the liability and property insurance coverage. Additionally, while this program does not include Workers' Compensation or Unemployment Compensation, this committee feels it important to point out at this time, that throughout the Operating Budgets, no pro- vision or charges have been made to fund monies 490 Bakersfield, California, July 20, 1981 - Page 9 for Workers' Compensation or Unemployment Compensation protection and insurance for the 1981-82 fiscal year. Although the referred to favorable experience has resulted in this decision as well, it is improtant that the City Council recognize that the Self-Insurance Fund will be unable to sustain itself without additional funding from the operating depart- ments beyond the 1981-82 fiscal year. ENVIRONMENTAL SERVICES Waste Water Services - (Page 45-49) - $1,559,585 As done with the other programs, this committee reviewed in considerable detail the specific annual objectives for the Waste Water Services and in addition to those recommended, this committee recommends that there be an objective to analyze the Waste Water Treatment needs for the City of Bakersfield for the next 5, l0 and 15 years. Refuse Management Services $2,499,895 (Page 51-53) - In recent Council action, the City Council, from its Contingency Fund, funded the purchase of 1,000 additional 300 gallon containers for the automatic loading refuse collection system. In light of that recent decision by the City Council, this committee noted and recommends that Objective Number 1 under Municipal Services be changed to reflect the distribution of "1,500" containers rather than "500." Also, this committee recommends that Municipal Services, as in Contract Services, contain an objective addressing the issue of "negative complaints" in an effort to identify and reduce the total negative complaints. In discussions with staff, it was noted that there are approximately 500 refuse collection locations within the City that do not have refuse containers placed in a location as re- quired by City ordinance. More specifically, these locations have containers located in areas that exceed the 50 foot maximum, are in areas requiring the collector to walk through buildings such as garages and carports, and in some extreme cases the collectors are required to climb ladders to reach the refuse containers. This committee recommends that the staff notify the appropriate property owners or businesses advising them of their violation of City ordinance and the situation must be corrected within 90 days. In the event the situation is not corrected this committee recommends that staff return to this committee with recommended appropriate fees and charges to be imposed upon those businesses and residences which do not comply with City ordinance. In the case of the elderly and handicapped, these charges and requirements would not be imposed. Bakersfield, California, July 20, 1981 - Page l0 49l At the present time, the staff is reviewing a rate increase request of the contractors pro- viding contract refuse service. The staff comments will be forthcoming to this committee, so this committee can evaluate the request and make a recommendation to the entire Council. DEVELOPMENT AND TRANSPORTATION SERVICES Development Services Administration (Page 62- 66) - $422,155 This program consists of the Development Services Administration within the general fund and the Community Development Administration within the Community Development Block Grant. This com- mittee noted that Development Services Adminis- tration, Objective Number 3, to analyze non- emergency tasks and functions of the Fire Department that may be more appropriately and economically carried out by the Building and Planning Sections, could possibly result in the shifting of some responsibility, which would relieve the necessity of staff increases in Fire Safety Control for sometime in the near future. In this committee's discussions with staff, it was also noted that in cooperation with the City Manager's Office, Development Services Administration will be implementing the "Cost- Revenue Model." Planning - (Page 69-72) - $122,395 In discussion with staff, it was noted that the Planning subprogram, since 1963, has only in- creased from 12 positions to 13.2 positions proposed for the 1981-82 budget, even in light of the tremendous growth the City has experienced during this period. One major reason the City has been able to maintain a smaller staff is due to the fact the City policy is one of working with developers to "improve" project design rather than to "redesign" proposed projects and subdivision plans. Also, the 1981-82 budget proposes to have consultants conduct noise "contours" (noise measurements) conducted on main thoroughfares so as to update the "Noise Element." In reviewing the objectives with staff, this committee recommends that Advance Planning, Objective Number 4, (provide environmental determination on major City initiated projects; prepare EIR's as needed) should not include the phrase "prepare EIR's as needed" since this objective could result in unanticipated and unbudgeted funds necessary for overtime and additional personnel as might be needed for the preparation of such EIR's. Additionally, this committee recommends that staff develop and include an objective which will deal with the "Open Space Element" of the City of Bakers- field. 492 Bakersfield, California, July 20, 1981 - Page 11 Public Works Administration - (Page 75-77) - $71,860 In addition to the objectives proposed, this committee recommends that an additional objective be added to study the future sanitary landfill requirements of the City for future needs. Engineering Services - (Page 79-82) - $196,460 After a complete review and discussion of the proposed specific annual objectives, this committee noted it is City policy to recover costs through fees for inspecting subdivision permits and miscellaneous surveying. Streets - (Page 85-87) - $1,205,165 While discussing the objectives, it was noted that the Street Maintenance Division has not added personnel in approximately 15 years. Although street miles have increased tremen- dously over this period of time, the City's policy of acquiring and using modern and up- to-date equipment has been a major reason for increased productivity. It was also noted that, when necessary, the Street ~aintenance personnel have been very willing to schedule their 40 hour work week to include early mornings, evenings, weekends, and holidays to avoid problems with traffic. Although the Street Maintenance Division has not made up the "ground" lost during the 1973- 74 fiscal year, we are currently keeping Up with the street maintenance and repairs throughout the City. In light of this, this committee recommends that the goal statement for Street Maintenance be modified to include a statement whereby it will be City policy for the Street Maintenance Program to not "fal~ behind" the current level of service. While discussing the objectives for the Street Cleaning Program, it was noted that objectives to sweep residential and major collector streets, "once every three weeks" may slip to "once every four weeks" by the end of the 1981-82 budget year. This situation, of course, is the result of additional street miles within the City Limits brought about by development and annexa- tions. Staff advised this committee that delivery of street cleaning equipment takes approximately one year after the order has been placed. Although this budget does not include funds for additional equipment to permit street sweeping from slipping to a frequency beyond four weeks, this committee will be analyzing the quarterly reports on objectives so as to anticipate the need to order equipment to maintain this level of service. Bakersfield, California, July 20, 1981 - Page 12 Traffic Control - (Page 89-92) - $532,735 After reviewing, at length, the proposed specific annual objectives for the Traffic Control Program, this committee recommends that the Traffic Engineering Division include an objective to analyze intersections with high accident fre- quency. PUBLIC SAFETY SERVICES Police Services - (Page 108-116) $2,042,300 Prior to meeting with the Police Chief and his staff, the Police Chief furnished this committee with a comprehensive report describing the four major divisions (Administration, Technical Services, Vice and Operations) and the service level within each of these divisions. A copy of the report is attached for review by the entire Council. This committee reviewed the report and all of the specific annual objectives in great detail and offered several suggestions and recommendations. First, since this budget document does not include additional personnel (although requests have been submitted to the Governmental Efficiency and Personnel Committee), objectives requiring additional personnel should not be shown at this time. For example, Objectives Number 4 and 5 under Operations. Secondly, this committee recommends that, where appropriate, response times, priority, ratings, percentages, and other elements which may assist in evaluating the attainment of objectives be included in the specific objectives. Additionally, this committee recommends that objectives be included to address the issue of police vehicle accident prevention and to evaluate the feasibility of a Career Criminal Program. On June 3, 1981, the Council referred to this committee the matter of alcoholic beverages, noise, rowdiness, obscenities, and curfew in City parks. The matter was referred to this committee so that in the course of discussions regarding the Police Budget, this committee could examine recommended alternatives, propose additional alternatives, and determine any financial impact on the Police Budget, which would result from these alternatives. This committee requested that the Police Chief examine and report back to this committee on how this matter is being handled in other cities as well as requesting the Police Chief to make suggestions and recommendations on how the matter could be dealt with in the City of Bakers- field. In the meantime, this committee recommended that the Police Department use existing funds appropriated for overtime to provide police protection and police manpower in the parks where the problems exist. At the Council Meeting of July 29, 1981, this committee will return to the City Council with complete recommendations. 494 Bakersfield, Calffornia, July 20, 1981 - Page 13 Fire Services - (Page 122-128) $1,096,655 During the course of the discussions on the specific annual objectives for each of the divisions, it was noted that the level of productivity is high in relation to past years in such areas as fire hydrant maintenance and fire prevention inspections. It was noted, as Fire Fighters, they perform these activities while on regular duty. It was also noted that the level of service has been and will be maintained over the next fiscal year without any proposals for additional personnel. In order to measure the level of service and determine the attainment of objectives, the committee recommended that response times, number of fires, fire loss per 1,000 buildings, and fire loss per 1,000 persons from year to year be added to the appropriate objectives. Building Services - (Page 131-134) - $388,525 In reviewing the specific annual objectives, this committee recommends that staff be directed to modify its objectives to include an objective whereby staff will examine the Sign Ordinance and return to the City Council with a recom- mendation to amend the Sign Ordinance to, in effect, eliminate Special Sign Permits. It was also noted that Objectives Number 2 and 4 under the Conservation Division should be modified to read "Enforce Housing Code for a minimum of 25 substandard buildings" and "Demolition of a minimum of 10 buildings not in compliance with the Dangerous Building Code." This committee also recommends that the Building Services personnel evaluate and recommend a new schedule of fees for those types of Building Permits which impose a minimum fee (i.e., a $5.00 fee) for which the cost of services exceed the fee. In addition, the committee recommends that staff examine and report back to the Council the possibility of recovering costs related to administration, enforcement, etc., of the repair and followup on burned buildings. This committee also noted that with present staffing, the City is unable to satisfactorily enforce zoning violations and the City is unable to followup on all related complaints. In light of what this committee considers to be a less than desirable level of service, this committee would recommend that the City Council consider increasing personnel to improve the service level in Building Services when funds are available. Repair and Demolition - (Page 136-137) - $10,000 This budget provides for the demolition of dangerous buildings. The City funded costs are Bakersfield, California, July 20, 1981 - Page 14 '495 ultimately assessed against affected property and collected through the tax rolls. Street Lighting - (Page 138-139) - $960,880 At the present time, the City has approximately 5,500 street lights within the City Limits, of which the City owns 1,300. Recently, the City Council approved a program whereby the City would be replacing its street lights with energy efficient high pressure sodium vapor lights. Pacific Gas & Electric has completed approximately 50% of their three year program to convert their 4,200 street lights to more efficient sodium vapor fixtures. The long- range effect of this conversion will minimize increases in the Street Lighting Program. RECREATION AND CULTURAL SERVICES Recreation - (Page 147-151' As the Council will recall the budgets for Aquatics, Sports, and Parks and Playgrounds were adopted in April to enable the Recreation Department to begin their hiring for summer programs. Additionally, the budget for the California Avenue Park Neighborhood Facility, which was not acted on in April, was recom- mended to this Council earlier this evening. Parks - (Page 153-156) $853,415 In discussing the specific annual objectives for the Parks Program, it was noted that the Proposed Maintenance Districts will be 100% self-supporting. Additionally, this committee recommends that the City Council approve a policy whereby median island landscaping and maintenance be included in the Maintenance Districts. Auditorium - (Page 159-162) - $368,435 After reviewing the specific annual objectives for the Auditorium Program, this committee had several recommendations. First, this committee would recommend that the City ordinance be changed to reduce the rental discount to schools to 20% for fiscal year 1981-82 and 0% for 1982- 83 and subsequent years. The current discount for schools is 40%. Secondly, this committee recommends that an objective be established which will reflect the status of all promotional activities of the Auditorium Manager. This committee has evaluated the request of the Convention Bureau of Greater Bakersfield for an increased contribution from $60,000 to $75,000 for the 1981-82 fiscal year. Over the past couple of months, the City has received similar requests from other agencies and organi- zations and due to financial constraints the Bakersfield, California, July 20, 1981 - Page 15 City is facing for the 1981-82 fiscal year, the City has had to deny all requests. However, since the Convention Bureau is responsible for bringing business to the City, this committee recommends the Council agree to match a maximum of $7,500 fees the Convention Bureau would generate by soliciting new membership. If the Convention Bureau is successful in generating new membership and relat~ed fees in that amount, and the City matches that amount, the Convention Bureau will have realized the $15,000 increase they have requested. Additionally, this com- mittee recommends that the £easibility of com- bining the Chamber of Commerce with the Board of Trade be analyzed. In order to proceed with this study, this committee recommends that this matter be referred to the Intergovernmental Relations Committee for study and recommendation. Cunningham Art Gallery $5,495 (Page 164-165) - The budget for the Cunningham Art Gallery pro- vides for utilities and custodial services and is consistent with prior years. SUPPORT SERVICES Finance - (Page 173-178) - $90,310 While reviewing the specific annual objectives for the Finance Program, this committee recog- nized how the Cash Management Division is maximizing the utilization of all idle funds to the City's best advantage and encourage this policy continue. In an effort to minimize expenditures, this committee supports the City further expanding its practice of cooperative purchasing through the State contract. Data Processing - (Page 181-183) - $182,935 It was noted that by December 31, 1981, the Data Processing Program will be operating with three less positions than it had in the 1979-80 fiscal year. In addition to that fact, this committee would recommend that in the quarterly reports for the period ending December 31, 1981, the staff prepare a report to this committee indicating the overall cost effectiveness of the City's new computer system through that point and time. City Attorney - (Page 185-187) - $48,865 As a result of Council action in the 1980-81 fiscal year, the Insurance Coordinator and Steno- Clerk, formerly under the City Manager's Program, has been transferred to the City Attorney's Program. It was also noted that the additional Deputy City Attorney approved during the 1980- 81 fiscal year is devoting approximately 75% of his time to the Self-Insurance Program. In Bakersfield, California, July 20, 1981 - Page 16 497 addition to the Self-Insurance Program, the City Attorney's Office is spending considerably more time on Water and Redevelopment Agency matters, which will reduce consulting fees. This committee recommends that the objectives be amended, where appropriate, to include such numbers as total claims processed, total resolutions and ordinances prepared, etc., which will reflect department activity. General Services - (Page 189-193) $553,690 In this committee's discussion with staff regarding objectives for the General Services Program, it was noted that as City personnel attend training sessions and receive certifi- cates related to heating and air conditioning, the City will be able to utilize City personnel rather than outside specialists to conduct appropriate inspections throughout the City. Additionally, the budget for the California Avenue Park Neighborhood Facility was presented earlier this evening and if adopted, the appropriate objectives and related costs and positions will be removed from the Custodial Services Division as presented in this document. CONCLUSION As a result of our meetings with all the depart- ment heads, we are satisfied with the level of service presently being provided and feel it represents the desires of the residents of the City of Bakersfield and we do not desire to make any reductions. This committee feels that all service areas within the City are performing effectively and efficiently even in light of development and growth within the City. This committee recommends the City Council consider the proposed level of service, as set forth in the budget document recommended by the City Manager and modified by this committee to be satisfactory. In conclusion, this committee recommends the approval of this report and adoption of the Operating Budget as modified in this report. Mr. George Moran, Vice-Chairman of the Convention Bureau of Greater Bakersfield, read a letter, dated June 16, 1981, that was submitted to the Council requesting that the City increase the Convention Bureau's Budget from $60,000 to $75,000, beginning with Fiscal Year 1981-82. Mr. Moran requested that the Council reconsider the recommendation in the report and increase their budget by $15,000. -49a Bakersfield, California, July 20, 1981 - Page Councilman Rockoff stated, unfortunately, in City Govern- ment today there are extreme fiscal constraints and many worthy organizations have requested new and increased help. As much as the Council would like, it was felt under these constraints the City would have to be extremely conservative to maintain the level of service required by the citizens of this community. The Council realizes that the Convention Bureau can bring additional money into the City Treasury and that is one reason the method of increasing their funds was suggested. Upon a motion by Councilman Rockoff, Budget Review and Finance Committee Report No. 13-81 regarding Operating Budget for Fiscal Year 1981-82, was accepted; and Operating Budget for Fiscal Year 1981-82, was approved. RECESS Upon a motion by Councilman Christensen, the Council recessed its budget session at 8:05 P.M., until Tuesday, July 21, 1981 at 7:00 P.M. YOR of y City of ~Bakersfield, ATTEST: CITY C Officio Clerk of the Council of the City of Bakersfield, California ma Calif. Bakersfield, California, July 21, 1981 499 Minutes of a budget session of the Council of the City of Bakersfield, California, held in the Council Chambers of City Hall at 7:00 P.M., July 21, 1981. The meeting was called to order by Mayor Shell followed by the Pledge of Allegiance. The City Clerk called the roll as follows: Present: Mayor Shell. Councilmen Barton, Christensen, Means (seated at 7:05 P.M.), Payne, Ratty, Rockoff, Strong (seated at 7:05 P.M.) Absent: None Councilman Payne, Chairman of the Governmental Efficiency and Personnel Committee, read Report No. 10-81 regarding Salary and Supplemental Benefits, as follows: In compliance with the State of California's Meyers-Milias-Brown Act, the City has concluded its annual meet and confer sessions with the International Brotherhood of Police Officers (IBPO), the Services Employees International Union (SEIU), the California State Fire Fighters Association and the Teamsters. Consulting sessions were also held with representatives of the General Employees Supervisory Unit, Police Supervisory Unit, the Confidential Employees Unit and Management. We are pleased to report that Memorandums of Understanding have been reached with the various unions. The City's negotiating team headed by Nick Counter has been able to negotiate within the guidelines as established by the City Council in their last executive session. The cost to the City for all of the units fall within 10% total compensation at a total cost of approxi- mately $2.3 million. We would like to compliment the City's Manage- ment negotiating team as well as the various union representatives for conducting themselves in a professional manner at the bargaining table. The intent of the law has been met and both sides seem to be equally satisfied. An area of major concern to the Governmental Efficiency and Personnel Committee is Manage- ment salaries. We have met with a group of Management employees and they have pointed out some discrepancies in the City's salary plan which in some cases results in subordinates making more money than Management personnel. Also, there are comparable positions in County Government that pay in excess of $20,000 a year than department heads with the City. The Council 5OO Bakersfield, California, July 21, 1981 - Page 2 addressed this issue last year by hiring Ralph Andersen and Associates to study Management salaries. This study should be completed by next month, and it is our intention to immediately start reviewing the results and recommend Management salary adjustments in September. Based on all available information, the Govern- mental Efficiency and Personnel Committee is making the following recommendations for the Council's approval: BLUE AND WHITE COLLAR UNITS The employees' portion of 7% contribution to the Public Employees Retirement System (PERS) be paid by the City, effective June 29, 1981. 2. A 5% salary increase, effective December 28, 1981. Medical insurance paid at the rate of 80% of the family premium by the City, 20% by the employee. 4. Shift differential increased from 35~ per hour to 50~ per hour. Uniform allowance for Police Department non-safety employees increased from $10.00 per month to $12.50 per month. 6. City will allow employees in this unit to participate in a Deferred Compensation Program at no cost to the City. The City and union agree to discuss possible salary inequities beginning September, 1981. FIRE UNIT 1. A 6% salary adjustment, effective June 29, 1981. A 4% salary increase, effective March 22, 1982. 2. The employees' portion of 5% contribution to PERS be paid by the City, effective September 21, 1981. A 5% salary increase for those employees that do not receive education incentive pay and have 15 years or more of service with the department. 4. An increase of $15 per month towards medical insurance. 5. Uniform allowance increased from $225 to $300 per year. City will allow employees in this unit participate in a Deferred Compensation Program at no cost to the City. to Bakersfield, California, July 21, 1981 - Page 3 o o FIRE SUPERVISORY UNIT A 6% salary adjustment, effective June 29, 1981. A 4% salary increase, effective March 22, 1982. The employees' portion of 5% contribution to PERS be paid by the City, effective September 21, 1981. Medical insurance paid at the rate of 80% of the family premium by the City, 20% by the employee. Uniform allowance increased from $225 to $300 per year. Effective January 1, 1982, Fire Supervisory Unit employees with maximum 56 shifts of sick leave, will revert back to vacation conversion of 75% of their unused sick leave if they use any part of their allowable sick leave during the calendar year. POLICE UNIT The employees' portion of 7% contribution to PERS be paid by the City, effective June 29, 1981. A 6% salary increase, effective December 28, 1981. Medical insurance paid at the rate of 80% of the family premium by the City, 20% by the employee. Uniform allowance increased from $225 per year to $500 per year. Stand-by pay increased from $5 per shift to $15 per shift. Effective December 28, 1981, employees in the Police Unit with l0 years service shall receive longevity pay of 3%; an additional 3% after 15 years; and an additional 3% after 20 years. Employees in the Police Unit may participate in the City's Deferred Compensation Plan at no cost to the City. One day per year of sick leave may be used for personal necessity leave. The same number of holidays as other City employees will be observed or compensated. 5O2 Bakersfield, California, July 21, 1981 - Page 4 o POLICE SUPERVISORY UNIT A 2% salary increase, effective June 29, 1981. A 4% salary increase, effective March 22, 1982. The employees' portion of 7% contribution to PERS be paid by the City, effective June 29, 1981. An additional 2½% salary increase for those employees holding a Supervisory Certificate from the Police Officers Standards and Training (POST), effective December 28, 1981. Uniform allowance increased from $225 per year to $500 per year. Medical insurance paid at the rate of 80% of the family premium by the City, 20% by the employee. Stand-by pay increased from $5 per shift to $15 per shift. The same number of holidays as other City employees will be observed or compensated. GENERAL SUPERVISORY UNIT The employees' portion of 7% contribution to PERS be paid by the City, effective June 29, 1981. A 6% salary increase, effective December 28, 1981. Medical insurance paid at the rate of 80% of the family premium by the City, 20% by the employee. CONFIDENTIAL UNIT The employees' portion of 7% contribution to PERS be paid by the City, effective June 29, 1981. A 5% salary increase, effective December 28, 1981. Medical insurance paid at the rate of 80% of the family premium by the City, 20% by the employee. City will allow employees in this unit to participate in a Deferred Compensation Program at no cost to the City. 503 Bakersfield, California, July 21, 1981 - Page 5 Confidential Unit to be abolished and all employee classifications affected placed into the White Collar Unit. Employees hired prior to July 1, 1981 designated as Confidential shall continue to receive Administrative Leave and a Life Insurance Program. Those hired after July 1, 1981 will be designated as Confidential, however, will not receive extra benefits. This is in accordance with a recommendation of Ralph Andersen and Associates. MANAGEMENT UNIT The employees' portion of 7% contribution to PERS be paid by the City, effective June 29, 1981. Medical insurance paid at the rate of 80% of the family premium by the City, 20% by the employee. Uniform allowance for Police Management increased from $225 to $500 per year and an increase of $225 to $300 for Fire Management. o Salary adjustments upon completion of Ralph Andersen and Associates Management Salary Study. NOTE: The City Manager's salary is not tied to other Management positions as his salary is negotiated separately by the Council. RETIRED EMPLOYEES The City will pick up the increase in Blue Cross Insurance Premium for all retired employees. Cost is approximately $7,000. TEMPORARY EMPLOYEES In order to recruit and retain competent temporary employees, we are recommending salary increases of 15~ to 30~ per hour for all temporary employees. Attached to this report is a copy of the proposed changes. The cost will be approximately $13,000 for 1981-82. In order to implement these changes, the Govern- mental Efficiency and Personnel Committee is recommending Council approval of this report, the attached Salary Resolution and Ordinance changes. Councilman Barton stated that the public should be made aware that the Police Unit made a commitment during labor negotiations that they would not strike, thereby giving up a large negotiating tool. Bakersfield, California, July 21, 1981 - Page 6 Councilman Christensen made the following statement and requested that it be spread in full in the minutes: Your honor and members of the Council I'd like, very much, to make a correction which is so misleading to the taxpayers of this City that I can't refrain from not making it. According to the article in this morning's paper, Councilman Don Ratty said, after the meeting, it was ridiculous that City Management employees are paid less than those in Kern County Govern- ment. For example, City Manager Phil Kelmar makes $50,892, compared with $66,744, for County Administrative Officer Ron Holden. Though the County budget is ten times larger than the City's, Ratty said the responsibilities are just as great. I think it's infantile. I think it's demeaning, in my opinion, in my opinion, to make a statement and have it published in the newspaper like that for the taxpayers to have to drink. I~m very proud of our City Manager. I think we have a fine man. He's been on board just a few months and I'm sure he's going to get a raise and I'm sure he's going to get a good one. I'm sure other ones we've hired in the last few months are going to get a raise, and a good one. So, I'm not making any statement against their raise. I'm making a statement as to the ridiculousness .... in the first place the Management Unit's salary has not even been settled, because the salary adjustments upon completion of Ralph Andersen and Associates Management Salary Study will be made. I'd like to point out, to show the equal- ness of these two positions .... and there again I'm not demeaning at all, because being City Manager is a job 24 hours a day, around the clock, 7 days a week and the same way with other staff members of our City .... but when they make a statement to the effect the .... Ron Holden, the County Administrator .... I checked very carefully, he has well over 5,000 employees. I believe we have around 820, according to our Personnel Director. So 5,000 plus, versus 820. Our budget is a budget of roughly $43,000,000 and the County budget is $300,000,000. Now any man in his right mind that tries to say that the two jobs are equal and that it's ridiculous that the City Manage- ment employees are paid less than those of the Kern County Government, in my opinion, should not hold office. I'd like to have this presented in the record so that the taxpayers can see the ridiculousness of it. Thank you. Upon a motion by Councilman Payne, Governmental Efficiency and Personnel Committee Report No. 10-81 regarding Salary and Supplemental Benefits, was accepted; and recommendations as out- lined in the report, were approved. Bakersfield, California, July 21, 1981 - Page 7 Adoption of Resolution No. 56-81 of the Council of the City of Bakers- field setting salaries and related benefits for Officers and Employees of the City of Bakersfield. Upon a motion by Councilman Payne, Resolution No. 56-81 of the Council of the City of Bakersfield setting salaries and related benefits for Officers and Employees of the City of Bakers-. field, was adopted by the following roll call vote: Ayes: Councilmen Barton, Christensen, Means, Payne, Rockoff, Strong Noes: None Ratty, Absent: None Adoption of Emergency Ordinance No. 2655 New Series of the Council of the City of Bakersfield amending Chapter 3.18 of the Municipal Code by rescinding and amending certain Sections, all in relation to Compen- sation for Officers and Employees of the City of Bakersfield. Upon a motion by Councilman Payne, Emergency Ordinance No. 2655 New Series of the Council of the City of Bakersfield amending Chapter 3.18 of the Municipal Code by rescinding and amending certain Sections, all in relation to Compensation for Officers and Employees of the City of Bakersfield, was adopted by the following roll call vote: Ayes: Noes: Councilmen Barton, Christensen, Means, Rockoff, Strong None Payne, Ratty, Absent: None RECESS Upon a motion by Councilman Christensen, the Council recessed its budget session at 7:20 P.M., until immediately following the regular Council M~ing of Wednesday, August 12, 1981. of th~~It~of ~er~ MAYOR Calif. CITY CLERK an4d Ex~fficio Clerk of the Council of the City of Bakersfield, California ma Bakersfield, California, July 29, 1981 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., July 29, 1981. The meeting was called to order by Mayor Shell, followed by the Pledge of Allegiance and Invocation in the form of a prayer submitted by Reverend David Newquist, Pastor of the First Presbyterian Church. The City Clerk called the roll as follows: Mayor Shell. Councilmen Christensen, Means, Payne, Ratty, Present: Rockoff, Strong, Barton Absent: None Minutes of the recessed regular meeting and regular meeting of July 1, 1981, regular meeting of July 8, 1981, and budget sessions of July 20 and 21, 1981, were approved as presented. SCHEDULED PUBLIC STATEMENTS Mr. Tom Beasley, Brown Brothers Adjusters, expressed regret that the City will not be renewing their contract and requested that the Council give it further consideration prior to making a decision. CORRESPONDENCE Upon a motion by Councilman Strong, communication from Kern County Y.M.C.A., 900 22nd Street, dated July 8, 1981, regarding relocating their facilities to Beach Park, was received and referred to the Auditorium-Recreation Committee for study and recommendation. Upon a motion by Councilman Christensen, communication from Bakersfield Checker Cab Company, Inc., giving notice of the establishment of rates pursuant to Section 7.52.190 of the Munici- pal Code of the City of Bakersfield, was received and ordered placed on file. Upon a motion by Councilman Ratty, communication from Olga B. Scott, 6113 Cypress Point Drive, dated July 21, 1981, submitting petitions containing 552 signatures opposing the present Bakersfield, California, July 29, 1981 - Page 2 plan for an intersection at the northern foot of the Oak Street Overpass at Truxtun Avenue, was received and ordered placed on file. Upon a motion by Councilman Rockoff, communication from Ralph Boyd Real Estate, Route 1, Box 635, Bakersfield, dated July 20, 1981, advising the Council of the fine professional service they received from Troy's Towing Service, was received and referred to the Police Department. Upon a motion by Councilman Payne, communication from Martin-Mcintosh, Licensed Land Surveyors, 230 South Chester Avenue, dated July 20, 1981, regarding an amendment to the State Map Act allowing the local agency to create a lien on property to be sub- divided, was received and referred to the City Attorney. Upon a motion by Councilman Ratty, communication from J. Stanley Antongiovanni, Route 3, Box 1211, Bakersfield, dated July 22, 1981, requesting reinstatement of his request for annexa- tion of property located along Panama Lane between Gosford Road and Stine Road, was received and referred to the Planning Com- mission for study and recommendation. Upon a motion by Councilman Payne, communication from Kern Children's Service Center, Inc., 2005 Ridge Road, dated July 21, 1981, requesting an endorsement for the Kern Children's Service Center Concept, was received, ordered placed on file and referred to staff. Upon a motion by Councilman Rockoff, communication from Clement, Milazzo, Walters, Elliott, Architects, dated July 23, 1981, requesting the abandonment of a portion of a Sanitary Sewer and Public Utilities Easement located between "H" and "F" Streets, north of 30th Street, was received and referred to the Planning Commission for study and recommendation. Councilman Christensen read the following communication from Roland S. Woodruff, Attorney for the Greater Bakersfield Separation of Grade District, into the record: Bakersfield, California, July 29, 1981 - Page 3 July 23, 1981 Honorable Members Bakersfield City Council 1501 Truxtun Avenue Bakersfield, California Gentlemen: The 1981-82 priority list for allocation of State Funds to local agencies for the con- struction of grade separation projects has been completed and publicly announced, and it appears that two projects nominated for this area are high enough on the list to warrant our study of the ability to provide the funding of the local agencies' share. The Commissioners of the Greater Bakersfield Separation of Grade District have asked me to write your board and invite the members of your appropriate committee to meet with our commissioners and an appropriate committee from the County of Kern, to jointly discuss this opportunity. If you will authorize such a meeting, the time and place thereof will be arranged through staff. We would like to have such a meeting within the next thirty days. Please advise. Yours truly, Roland S. Woodruff, Attorney for Greater Bakersfield Separation of Grade District Upon a motion by Councilman Christensen, communication from Roland S. Woodruff, Attorney for the Greater Bakersfield Separation of Grade District, was received and referred to the Intergovernmental Relations Committee. COUNCIL STATEMENTS Councilman Rockoff commended the staff for their co- operation and help regarding the traffic study on the intersection of Panorama Drive and Columbus Street, which does not warrant signals at this time. Councilman Rockoff requested that the traffic continue to be monitored at this intersection because of the heavy traffic. He also thanked the Traffic Engineer for working with CalTrans to get reflectorized signs on Highway 178. 4 Bakersfield, California, July 29, 1981 - Page 4 Councilman Rockoff asked City Manager Kelmar several questions about a proposed newsletter for the citizens of Bakers- field and indicated he thought it was a very good idea. REPORTS Councilman Barton, Chairman of the Business Development and Parking Committee, read Report No. 3-81 regarding Downtown Improvement District - 1981-82 Proposed Budget, as follows: At the request of businesses located within the downtown area, a Business Improvement District was established in July, 1968, and is defined in Chapter 6.50 of the Municipal Code of the City of Bakersfield. The "purpose and intent" of the businesses wishing to establish the Business Improvement District was to impose a tax upon those businesses within the District and to use the proceeds for promotional activities within the District. Also, the collection of the additional tax shall be made at the same time and in the same manner as any other business license tax. In addition, the City code provides that the City Council shall have sole discretion as to how the monies derived from this tax are to be used within the scope of the purposes defined in the City Code. Based upon projected revenues, a budget for the use of the projected revenues is prepared annually and submitted to the City Council for approval. On June 17, 1981 the Downtown Business Associa- tion submitted the 1981-82 proposed budget for the Downtown Improvement District. The matter was referred to the Business Development and Parking Committee. This committee met with Mr. Jim Trainor of the Downtown Business Association to review the proposed budget. After reviewing the proposed budget, this committee concludes the budget is consistent with the purpose and intent as set forth in the Municipal Code, however, the committee requests additional clarification and explanation with regards to estimated payroll taxes. Therefore, this committee recommends the City Council accept this report and approve the 1981-82 proposed budget for the Downtown Improvement District, subject to satisfactory explanation of estimated payroll taxes being furnished to the City's Finance Department by the Downtown Business Association. Upon a motion by Councilman Barton, Business Development and Parking Committee Report No. 3-81 regarding Downtown Improvement District - 1981-82 Proposed Budget, was accepted; and 1981-82 Bakersfield, Cali£ornia, July 29, 1981 - Page 5 Proposed Budget for the Downtown Improvement District, subject to satisfactory explanation of estimated payroll taxes being furnished to the City's Finance Department by the Downtown Business Associa- tion, was approved. Councilman Barton, Chairman of the Business Development and Parking Committee, read Report No. 4-81 regarding Ride Sharing Program, as follows: This committee has met with City staff members, representatives from GET and representatives from Cal Trans to discuss the feasibility of establishing a "Ride Sharing" Program for the Bakersfield Metropolitan Area. While this committee recognizes that a Ride Sharing Program for the "Metropolitan Area" would extend beyond the City limits of the City of Bakersfield, the City itself would initially benefit from a reduced number of vehicles into the downtown area. Consequently, relieving the current downtown parking problem. In addition to the reduced demand for parking, the consumption of fuel would reduce, the air quality would improve, and the reduction of traffic would extend the life of the City streets. At length, this committee discussed with all those present, the various aspects of a "Ride Sharing" Program. Among items discussed were park and ride lots, a downtown terminal, development of data banks on the State of California computers, recruitment of major employers in the downtown area to promote the program, as well as a joint effort with the County of Kern. It should be noted that at the present time, there are six major employers in the downtown area. A major employer, for the Ride Sharing Program, is one with 100 or more employees. The estimated cost of implementing and estab- lishing such a program for the first year would be $100,000 and approximately $75,000 to $80,000 for the second and subsequent years. It is anticipated that approximately 75% of the cost of the program will be funded by the State. Also, Federal Aid Urban funds can be used to finance a Ride Sharing Program provided these funds are not committed for other projects. In conclusion, this committee supports the idea of a "Ride Sharing" Program and would recommend that the Council authorize the Business Develop- ment and Parking Committee to work with GET, downtown employers, and the County of Kern through its Intergovernmental Relations Committee. Bakersfield, California, July 29, 1981 - Page 6 Mr. Joe Leal, Chief of Mass Transportation Branch of CalTrans, District 6, Fresno, California, stated he hopes the City of Bakersfield joins CalTrans in a Ride Sharing Program. Upon a motion by Councilman Barton, Business Development and Parking Committee Report No. 4-81 regarding Ride Sharing Program, was accepted; and the Business Development and Parking Committee was authorized to work with GET, downtown employers and the County of Kern through its Intergovernmental Relations Committee in support of the Ride Sharing Program. Councilman Christensen, Chairman of the Auditorium- Recreation Committee, read Report No. 13-81 regarding Park Standards, Guidelines and Fees, as follows: On March l, 1976, the City Council adopted Resolution No. 10-76 whereby park standards and guidelines, requirements, fees and deposits pursuant to and supplementing the Park Ordinance was established. The staff is requesting the resolution be up- dated to reflect various changes and additions such as new parks, new and additional facilities at existing parks, reservation requirements, and fee adjustments. The referred to changes and additions are identified as the items and locations circled on the attached Exhibits A, B, and C. It is important to note that the recommended changes reflect the facilities currently available and the fees represent the current costs fo the City. This committee concurs with the proposed changes and recommends the City Council accept this report and adopt the proposed resolution re- flecting the changes enumerated therein. Upon a motion by Councilman Christensen, Auditorium- Recreation Committee Report No. 13-81 regarding Park Standards, Guidelines, and Fees, was accepted. Adoption of Resolution No. 57-81 of the Council of the City of Bakers- field adopting Park Standards and Guidelines, Requirements, Fees and Deposits pursuant to and supple- menting the Park Ordinance. Upon a motion by Councilman Christensen, Resolution No. 57-81 of the Council of the City of Bakersfield adopting Park Bakersfield, California, July 29, 1981 - Page 7 Standards and Guidelines, Requirements, Fees and Deposits pursuant to and supplementing the Park Ordinance, was adopted by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None Councilman Rockoff, Chairman of the Budget Review and Finance Committee, read Report No. 14-81 regarding City Parks - Alcoholic Beverage Consumption and Noise Ordinance, as follows: On June 3, 1981, the City Council referred to this committee the matter of alcoholic beverages, noise, rowdiness, obscenities, and curfew in the City parks. The matter was referred to this committee so that in the course of discussions regarding the Police budget, this committee could examine recommended alternatives, propose additional alternatives, and determine any financial impact on the Police budget which would result from those alternatives. While reviewing the Police budget, this committee requested that the Police Chief examine and report back to this committee on how this matter is being handled in other cities as well as requesting the Police Chief to make suggestions and recommendations on how the matter could be dealt with in the City of Bakersfield. In the interim, this committee recommended that the Police Department use existing funds appropriated for overtime to provide Police protection and Police manpower in the parks where the problems exist. Pursuant to the direction from this committee, the Police Department provided additional Police patrols in the City parks and in a memorandum dated July 17, 1981, to the City Manager, the Police Chief summarized the results. In addition to this memorandum, this committee was furnished copies of "alcoholic beverage and noise ordinances" currently in effect in the Cities of Fresno, Los Angeles, Stockton, Simi Valley, Santa Clara and Sacramento. After a lengthy discussion, reviewing the Chief's memorandum and the various ordinances with members of the staff, this committee concludes that an ordinance for the City of Bakersfield is desirable. The Chief indicated the Cities of Fresno and Los Angeles experienced no diffi- culty in enforcing their ordinances. Also, it was noted that prior to 1975, the City of Bakersfield had an ordinance "prohibiting" alcoholic beverages in City Parks. Bakersfield, California, July 29, 1981 - Page 8 It is the opinion and recommendation of the majority of this committee that the City Council direct the City Attorney's Office to prepare an ordinance to prohibit the possesssion and drinking of alcoholic beverages in not only City parks, but upon any street, sidewalk or parkway, park, playground, or in any place open to the patronage of the public, which premises are not licensed for the consumption of such liquor on the premises. In addition, the majority of this committee recommends that the ordinance contain a provision whereby "noise" created by car stereos, etc., will be confined to an area not to exceed 50 feet from the vehicle or other source. While the majority of this committee recommends an ordinance contain the above provisions, one member of this committee, Councilman Means, prefers that an ordinance not be "all inclusive" as defined above and would recommend that an ordinance be established to limit alcoholic beverages in the parks by placing a curfew on the consumption of alcoholic beverages in the parks. Councilman Means concurs that the ordinance must contain a provision whereby noise created by car stereos, etc., would be confined within a 50 foot area. The Police Chief advised this committee that an ordinance "prohibiting" or "limiting" could initially be handled by the Police Department through the use of authorized overtime. Addi- tionally, the Police Chief felt that the existence of an ordinance, in time, could possibly reduce the cost of manpower currently being expended in the City parks. This com- mittee concurs with the opinion of the Police Chief that the existence of an ordinance, with proper notice and posting in the parks, will not only assist, but perhaps in time reduce the problem and relieve the Police Department of the concentrated efforts and Police controls currently in force in the City parks. In conclusion, this committee recommends that the City Council instruct the City Attorney to prepare an ordinance dealing with the matter of alcoholic beverages and noise in City parks and public places in such a way as to either "prohibit" or "limit" alcoholic beverages as the Council desires. This committee further recommends that the referred to ordinance take effect January l, 1982, so as to allow sufficient time to properly notice and post parks and affected areas. Councilman Rockoff made a motion that Budget Review and Finance Committee Report No. 14-81 regarding City Parks - Alcoholic Beverage Consumption and Noise Ordinance, be accepted; and recom- mendations as outlined in the report, be approved. Bakersfield, California, July 29, 1981 - Page 9 9 Councilman Means, as a member of the Budget Review and Finance Committee and clarifying his position, stated that an ordinance placing a curfew on the consumption of alcoholic beverages in City parks would give the Police Department a tool to effectively enforce the laws. Whatever ordinance is passed the main key will be giving the Police Department the manpower or overtime allocation to enforce it. Placing a ban on drinking in parks and public places is unreasonable at this point. If the curfew does not work~ and the Police Department feels a total ban on drinking is needed, then they can come back to the Council. The problem exists right now and the ordinance should become effective as soon as possible, not in January, 1982. Councilman Payne indicated he agrees with Councilman Means' position on adopting an ordinance placing a curfew rather than a ban on drinking alcoholic beverages in City parks, to become effective as soon as possible, and the Committee's recommendation regarding noise. Councilman Barton stated he agrees with the Committee's recommendation on noise and it should be enacted immediately. Councilman Barton also felt the curfew concept should be tried, and if that does not solve the problem then other alternatives should be considered. When the motion is made for enactment of the curfew concept it should include a provision that the Committee, in cooperation with the Police Department, continue studying the problem, between enactment of the ordinance and January l, 1982, to find out how effective it has been. Councilman Christensen stated he concurred with every- thing that has been said, but he would like the motion to contain a statement to the effect that the Police Department pick up drunks in the parks during the daytime. Councilman Rockoff stated he felt the Council should take a very simplistic approach and prohibit drinking in public parks. 10 Bakersfield, California, July 29, 1981 - Page l0 not alcoholic beverages should be banned. Councilman Rockoff stated he wanted to man Christensen's interpretation of what he said: said "I believe we should pick up every drunk in Councilman Ratty stated that prior to 1974 drinking was allowed in parks and he feels parks are for family use and correct Council- He stated he every park." Councilman Strong reading from the report stated; "It is the opinion and recommendation of the majority of this committee that the City Council direct the City Attorney's Office to prepare an ordinance to prohibit the possession and drinking of alcoholic beverages in not only City parks, but upon any street, sidewalk or parkway, park, playground, or in any place open to the patronage of the public, which premises are not licensed for the consumption of such liquor on the premises." Anyone walking out of a super- market with a six-pack is in possession and if the letter of this ordinance was enforced that person would be law. Mr. people, plays in violation of the Alan Stramler stated his wife, like hundreds of on a softball team in the City parks. The players and spectators like to drink a beer, wine or mixed drinks. He sympathizes with people living near parks and having problems with certain individuals. These individuals do it over and over and over again, it is the nature of their character. Those are the people who have to be dealt with to solve the problems. Banning alcoholic beverages entirely would hurt a majority of the people. In 1974, when liquor was banned, people could afford to do other things, like drive places because gas was much cheaper. People cannot do what they use to. Parks are a necessity for people who cannot afford another type of entertainment. He felt the 10:00 P.M. curfew for noise, disorderly conduct and alcoholic beverages would be reasonable (with the exception of where baseball, etc., is being played until ll:00 P.M.). An ordinance banning alcoholic beverages would hurt 50 people for every person helped. Bakersfield, California, July 29, 1981 - Page 11 Mr. Ray Trichell, involved in the alcoholic beverage industry, stated they feel the Council should give this item more thought before making a decision. The decision that is made should be one that the majority can live with. Mr. Phil Auer, 238 "B" Street, stated he enjoys taking his children to the park and it upsets him to see people drunk. Some type of regulation is needed and banning alcohol in parks is an easy rule to live with. It is nice to have a beer, etc., when playing softball, etc., but it is not necessary. People go there to play, not drink. People can have a lot of fun in the parks without alcohol. City Attorney Oberholzer stated Councilman Strong was correct, the possession of alcoholic beverages cannot be prohibited and the ordinance would be designed the same way as the one on open containers on public streets and sidewalks. Councilman Strong stated he would support a motion that the Police Department vigorously enforce curfew laws, or if the Council sees fit to change the curfew law have the Police Depart- ment monitor the situation and report back to the Council the first of 1982, especially since the parks are not used as much during the fall and winter months as they are at the present time. There is time to gather the kind of information needed for the Council to make an effective recommendation to the City Attorney regarding an ordinance. The City needs an ordinance that will be enforced. If it is not going to be enforced it should not be on the books. Councilman Strong also stated he hoped the Council would see fit, if it decides to pass an all inclusive ordinance such as this, to give the public and Police Department the grace period necessary in order to pinpoint problem areas and give the Council the opportunity to make whatever recommendations necessary to take care of it. Councilman Strong offered a substitute motion that the existing ordinance of a 12 midnight curfew for closing of four Bakersfield, California, July 29, 1981 - Page 12 community parks remain in effect, a 10:00 P.M. curfew be imposed at the other parks during the interim period and that this matter be reconsidered by the Council sometime in January, 1982. Councilman Christensen requested that any ordinance that is adopted state that drunks are to be picked up and the minutes reflect the conversation where Councilman Rockoff stated, speci- fically, it would be an undo burden on the Police Department to pick up drunks. Councilman Barton stated Councilman Strong's substitute motion did not address the issue of noise, and requested that the motion be amended to accept the Budget Review and Finance Committee's recommendation on noise. Councilman Barton also requested that the motion include a provision that the Committee, in conjunction with the Police Department, continue to review this matter on a monthly basis, in all parks, to see if this is getting a handle on the problem. Councilman Strong stated he would amend his substitute motion to include the Budget Review and Finance Committee's recom- mendation on noise and that Police Department, continue basis, in all parks, to see problem. the Committee, in conjunction with the reviewing this matter on a monthly if this is getting a handle on the City Manager Kelmar stated Planz and Wayside Parks have softball leagues that go until 11:00 P.M., however, by the time the ordinance becomes effective that program would be over. This is an item that would have to be considered for next year. Councilman Payne requested that this matter be returned to the Budget Review and Finance Committee and request them to work in close liaison with the Police Department to see if they can effectively enforce the recommendations the Committee might bring back to the Council. Bakersfield, California, July 29, 1981 - Page 13 Councilman Christensen made a motion that the problem of alcohol and noise in City parks be tabled until August 12, 1981. This motion failed to carry by the following roll call vote: Ayes: Councilmen Christensen, Strong Noes: Councilmen Means, Payne, Ratty, Rockoff, Barton Absent: None matter. Councilman Rockoff made a motion to close debate on this This motion failed to carry. Councilman Christensen stated he wanted to make sure that carry by the following roll call Ayes: Councilmen Christensen, Noes: Councilmen Means, Payne, Absent: None vote: Strong, Barton Ratty, Rockoff Councilman Rockoff amended his motion that Budget Review and Finance Committee Report No. 14-81 regarding City Parks - Alcoholic Beverage Consumption and Noise Ordinance be accepted; and the City Attorney be directed to prepare an ordinance to pro- hibit consumption of alcoholic beverages in public parks and on public streets. This motion failed to carry by the following the substitute motion included picking up daytime drunks. Councilman Strong indicated the motion includes picking up drunks. Councilman Strong's amended substitute motion that the existing ordinance of a 12 midnight curfew for closing four com- munity parks remain in effect; a 10:00 P.M. curfew be imposed at the other parks during the interim period; this matter be recon- sidered by the Council sometime in January, 1982; the recommendation on noise, as addressed in the report, be accepted; and the Budget Review and Finance Committee, in conjunction with the Police Depart- ment, continue to review this matter on a monthly basis in all the parks to see if this is getting a handle on the problem; failed to 14 Bakersfield, California, July 29, 1981 - Page 14 roll call Ayes: Noes: Absent: vote: Councilmen Christensen, Ratty, Rockoff Councilmen Means, Payne, Strong, Barton None Councilman Means made a motion that the Budget Review and Finance Committee, with input from the City Attorney and Police Department, draft an ordinance that places a curfew of approximately 8:00 P.M. on drinking in neighborhood parks and approximately 12 midnight in community parks, taking into con- sideration the exemptions for organized sports; the recommendation on noise in Budget Review and Finance Committee's Report No. 14-81, be incorporated; the ordinance be presented to the Council at the meeting of August 12, 1981, for consideration; and the Budget Review and Finance Committee periodically review it to determine roll call Ayes: Noes: Absent: Abstaining: its effectiveness. This motion failed to vote: Councilmen Means, Councilmen Ratty, None carry by the following Payne Rockoff, Strong, Barton Councilman Christensen Councilman Ratty made a motion that the matter o£ City Parks - Alcoholic Beverage Consumption and Noise Ordinance, be referred back to the Budget Review and Finance Committee for further study and recommendation back to the Council at the meeting of August vote: Ayes: Noes: Absent: 12, 1981. This motion carried by the following roll call reconvened the meeting at Councilmen Christensen, Payne, Ratty, Rockoff, Strong Councilmen Means, Barton None Mayor Shell declared a brief recess at 10:00 P.M. and 10:05 P.M. Bakersfield, California, July 29, 1981 - Page 15 City Attorney Oberholzer read a report regarding Recom- mendation for Claims Adjusting Contract with Carl Warren & Company, dated July 29, 1981, as follows: Last year, the City entered into an agreement with Brown Brothers Adjusters to provide claims adjusting services for the City of Bakersfield under its self-insured liability program. The agreement expired on June 30, 1981. The City has contracted with Brown Brothers for liability adjusting services for the last three years. In May, 1981, the City Attorney's Office and the Assistant City Manager/Finance prepared a request for proposals for claims adjusting services for the City of Bakersfield for fiscal year 1981-1982. Eight adjusting firms responded with qualifying proposals. In order to thoroughly evaluate the firms which responded with proposals, a committee composed of representatives from the City Attorney's Of£ice, the Finance Department and a represen- tative from the City's broker for excess coverage met with representatives of each of the firms on June 30, 1981. In evaluating the eight firms appearing before the committee, the following criteria was used experience with public entities, experience of claims adjuster assigned to account, reporting systems, extent and method of claims investigation, settlement authority and practices, legal co- ordination, ability to work closely with City's legal department, proposed contract provisions, fee for service, proposal presentation and references. The fee schedule submitted by each of the pro- posing firms makes it difficult to rank the firms solely on the basis of the cost of the contract. It is estimated that the annual cost to the City for claims adjusting, as contained in the various proposals, is in the area of $22,000.00 to something in excess of $30,000.00. The fees proposed by the eight firms are attached to this report. Although all of the firms interviewed exemplified professional abilities, it was the unanimous opinion of the committee that Carl Warren & Company possessed the best qualified staff and the greatest experience in handling claims against municipalities. The City Attorney's Office therefore recommends that the City Council contract with Carl Warren & Company for claims adjusting services. The recommendation that the contract for claims adjusting services be awarded to Carl Warren & Company was based on the following qualifica- tions: Bakersfield, California, July 29, 1981 - Page 16 1. Currently provide services to 80 self- insured municipalities in California. 2. Personnel are experienced and well-trained in all phases of claims administration. City's investigator will be trained to handle matters for which the City currently pays to have handled on contractual basis. 4. Cases will be reviewed monthly with the City Attorney's Office. Other cities with whom Carl Warren & Company contract give excellent ratings to the service provided. 6. A strong desire to provide claims adjusting services in Bakersfield. 7. Claims prevention assistance will be pro- vided. Unlike some of the other firms responding to the request for proposal, Carl Warren & Company does not have an office in Bakersfield. After considerable deliberation and assurances from Carl Warren & Company, the committee believed that the expertise of Carl Warren & Company and their performance record far outweighs any potential inconveniences due to the lack of a local office. Carl Warren & Company has agreed to have personnel in Bakersfield at least weekly and on call as needed. In addition, they have agreed to provide training, to be included in the $400.00 monthly fee, for the City Attorney Investigator so that he will be able to handle matters for which the City now pays an adjuster. This should result in a decrease in hourly adjuster charges and can be handled by the City without an increase in City personnel. Finally, you will find attached to this report the results of the ratings as prepared by the representative from the City's broker for excess coverage (Kindler & Laucci). It is recommended that the City Council authorize the Mayor to execute the contract, a copy of which is attached, with Carl Warren & Company. Councilman Rockoff asked who pays for travel to and expenses while in Bakersfield and if it is in the agreement. City Attorney Oberholzer stated expenses will not be charged to the City as a result of their having to come from out of town. The 30~ per mile will be determined from City Hall out to the location they must go to for the claims adjusting. The 30~ per mile is in the agreement, but it is not clear from where and that will be added. Bakersfield, California, July 29, 1981 - Page ¸17 Upon a motion by Councilman Rockoff, report from the City Attorney regarding Recommendation for Claims Adjusting Contract with Carl Warren & Company, was accepted; and agreement with Carl Warren & Company providing claims adjusting services to the City of Bakersfield under its Self-Insured Liability Program, with the amendment as discussed, was approved and the Mayor was authorized to execute same. Director of Public Works Hawley read a report from the P~anning Commission regarding Subdivision and Development Improve- ment Policy and Standards, as follows: The Planning Commission has evaluated the City's present policy for funding of major street improve- ments, street lighting, and street signing in new developments or subdivisions. Under present policy the City pays for approxi- mately 40% of the cost for major collector and arterial streets and pays all costs for street signing. The policy for street lighting requires the developer to furnish and install the street light poles with P. G. & E. furnishing and installing the wire, conduit & luminaire for all lights. Under this policy, the City maintains the street light pole and P. G. & E. maintains the conduit wiring and luminaires. Due to rapid increase in street miles, street lights & street signs each year and the limited funds available to maintain the street system and street lighting, the Planning Commission recommends that the City Council adopt the following policy and standard: The developer or subdivider shall pay all costs for furnishing & installing street lights which bound or are within any sub- division or development proposal submitted to the City for approval, including conduit, wiring, poles and luminaires. The City shall maintain all new street lights under this policy. The City's costs (using P. G. & E.'s present rate schedule) for a typical 70 watt street light would be reduced from $5.19/pole to $1.57/pole per month. The developer or subdivider shall pay all costs in constructing all local and major streets which bound or are within any sub- division or development proposals submitted to the City for approval. The developer or subdivider shall pay all costs for furnishing all traffic control signs and sign posts which are necessary Bakersfield, California, July 29, 1981 - Page 18 'for present or future traffic control needs in or adjacent to any subdivision or develop- ment proposal submitted to the City for approval. The attached report from the Planning Commission committee provides additional detail to support the recommendation from the Commission. Upon a motion by Councilman Means, report from the Planning Commission regarding Subdivision and Development Improve- ment Policy and Standards, was accepted; and recommendations as outlined in the report, were approved. P~anning Director Sceales read a report from Fire and Development Services Department, dated July 29, 1981, regarding Kern River Open Space Policy, as follows: At their regularly scheduled meeting on June 24, 1981, the City Council ordered the staff to report back by September 1, 1981 with an open space policy of the Kern River for their consideration. County Planning staff has expressed an interest in assisting with this project to the degree of requesting the Board of Supervisors to commit same staff time and limited funds for a project consultant. City and County Planning staffs both agree that with the limited in- house manpower resources of both entities it would be wise to consider hiring a qualified consultant firm for research, data gathering, and preliminary policy recommendations with close coordination and supervision by both staffs. Kern County Council of Governments staff has also agreed to request its board to commit funds for this project due to their interest in this potential combined City-County project. Their participation would mainly be a funding source for the project with minor technical assistance. Through discussion with the County and Kern COG staffs' it was determined that the City's portion of funds to hire a consulting firm would be $5,0o0. The Council's goal should be sufficiently met through the utilization of this combined effort. Staff recommends this matter be referred to the appropriate Council Committee. Upon a motion by Councilman Ratty, the matter of the Kern River Open Space Policy, was referred to the Budget Review and Finance Committee for study and recommendation. Bakersfield, California, July 29, 1981 - Page 19 19 The (a) (b) (c) (d) (e) (f) (g) (h) (i) (J) (k) (1) (m) CONSENT CALENDAR following items were listed on the Consent Calendar: Allowance of Claims Nos. 7693 to 7992 and 1 to 102, inclusive, in the amount of $1,938,967.35. Claim for Damages from Cleta Rose Bird and Stephanie Jan Hobbs, 242 "H" Street, Bakers- field. (Refer to City Attorney) Claim for Personal Injuries from Harry G. Walker and Maria I. Walker, 612 McDonald Way, Bakersfield. (Refer to City Attorney) Claim for Damages from Dorothy L. Belk, James Alex Belk, Lenna Belk and James Belk, Jr., 25 Augusta Street, Bakersfield. (Refer to City Attorney) Claim for Damages and Personal Injuries from Frank Demetrius Bailey, Jr., 1213 Dolores Street, Bakersfield. (Refer to City Attorney) Claim for Damages and Personal Injuries from Demetrius Frank Bailey, L. J. Goulsby, Frederick Bailey, Darryl Ford, Bruce Dwayne Jennings and Andrew James Wandick, c/o Michael Millman/Wayne Marshall, Law Offices, P.O. Box 25924, West Los Angeles, California. (Refer to City Attorney) Claim for Personal Injury from Robert D. "Elmo" Shepherd, P.O. Box 5231, Bakers- field. (Refer to City Attorney) Claim for Personal Injury from Barbara Lee Shepherd, P.O. Box 5231, Bakersfield. (Refer to City Attorney) Claim for Damages and Personal Injuries from Earl L. Cartwright, 636 Beverly Drive, Bakersfield. (Refer to City Attorney) Claim for Damages from Luis Estrada, #179, Bakersfield. and Personal Injuries 5101 Marsha Street, (Refer to City Attorney) Claim for Damages and Personal Injuries from John E. Chilton, P.O. Box 1265, Bakersfield. (Refer to City Attorney) Claim for Damages from D. E. Niles Street, Bakersfield. Attorney) Rockwood, ll10 (Refer to City Claim for Damages from Betty J. Peterson, 7039 Olive Drive, Bakersfield. (Refer to City Attorney) 2O Bakersfield, California, July 29, 1981 - Page 20 (n) (o) (p) (q) (r) (s) (t) 60-Day Leave of Absence Without Pay for Cathy L. DeMarah, Telecommunicator in the Police Department. This request is due to complications from pregnancy. This request will extend the leave through October 6, 1981. Maps of Tract No. 4321, Units E-K, M-Q and Improvement Agreement with Auburn Venture for construction o£ improvements therein, located north of Auburn Street, east of Fairfax Road. Improvement Agreement for Parcel Map No. 6288 with Frank A. Collins and Francis Marion Collins for construction of improve- ments required by the Planning Commission, located south of Highway 178 and west of Kern Canyon Road. Application for Encroachment Permit from the County of Kern, 1600 Norris Road, Bakersfield, for installation of a sign in the sidewalk area stating "Rubbish must be covered." Said sign is 24" x 48" in size and would be located on Alfred Harrell Highway down ramp north of Panama Drive, near the curb return. Notices of Completion and Acceptance of Work for: Construction of Farm Road at Plant No. Contract No. 81-86 with M Construction Company. A. C. Pavement on Planz Road between South "H" Street and Chester Avenue, F.A.U. Project No. M-F 245(1), Contract No. 81-64 with Granite Construction Company. Tract No. 4343, Contract No. 80-156 with Waston Division, U. S. Homes Corporation, located on the northeast corner of Barrington Street and Nottingham Lane. Contract Change Order No. i to Contract No. 81-79 with James G. Francis for re- constructing a portion of Eye Street. This Change Order is necessary to haul, grade and compact C1. II aggregate base to fill low areas in the subgrade and will increase the contract cost $1,047.30. Sufficient funds are available within the project budget for this change. Contract Change Order No. i to Contract No. 80-199 with Kaweah Construction Co. for Ashe Water System's Two Million Gallon Domestic Water Storage System. This Change Order modifies existing piping system and deletes grating around the engine. This Change Order reduces the contract cost $2,000 and provides for an extension of 37 calendar days due to delay of material deliveries. Bakersfield, California, July 29, 1981 - Page 21 (u) (v) (w) Request from Great Northern Construction Company for extension of time to complete improvements in Tract No. 4161, Agreement No. 80-58 with Kuve Associates. The Public Works Department recommends a six month extension. Completion date for this Tract was April 9, 1981 and the revised date will be October 9, 1981. Request from Parkhill Development Associates for extension of time to complete improve- ments in Parcel Map No. 5615, Agreement No. 80-16 with A-M Company. The Public Works Department recommends a six month extension. Completion date for this Parcel Map was January 30, 1981 and the revised date will be August 30, 1981. Utilities Agreement No. 9790011 between the State of California and City of Bakers- field providing for the State to extend the City's Box Culvert Irrigation Facility at Highway 178 and Oak Street within the State highway right-of-way. All cost to be borne by the State. Upon a motion by Councilman Means, Items (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (1), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v) and (w) of the Consent Calendar, were adopted by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None ACTION ON BIDS Upon a motion by Councilman Christensen, low bid of Associated Automatic Fire Protection, in the amount of $5,280, for Fire Sprinkler System Yard Facilities for the South Wing Addition to City Hall, was accepted, the other bid rejected and the Mayor was authorized to execute the contract. Upon a motion by Councilman Means, low bid of Hollowform, Inc., in the amount of $100,700.00, for Refuse Containers, was accepted and all other bids rejected. Upon a motion by Councilman Christensen, bids of Abate- A-Weed for 3 items, in the amount of $181.38, Target 1 item, in the amount of $795.00, and L. A. Chemical Chemical for for 1 item. in the amount of $3,450.00, for Miscellaneous Chemicals for the Parks Department, were accepted and all other bide rejected. Upon a motion by Councilman Christensen, bids of Kern Electric Distributors for 2 items, in the amount of $2,862.00, and Stewart Electric for 4 items, in the amount of $1,281.54, for Poles, Fixtures and Lamps for the Parks Department, were accepted and all other bids rejected. Upon a motion by Councilman Ratty, low bid of Western Electric, in the amount of $31,195, for construction of Security Lighting at Beach Park, was accepted, all other bids rejected and the Mayor was authorized to execute the contract. Upon a motion by Councilman Payne, low bid of Micon, in the amount of $25,301, for construction of Kroll Park Sump Under- drain System Modifications, was accepted, the other bid rejected and the May was authorized to execute the contract. Upon a motion by Councilman Rockoff, low bid of James G. Francis for Alternate B, in the amount of $99,690, for resurfacing "F" Street Pavement, 21st Street to Golden State Avenue, was accepted, all other bids rejected and the Mayor was authorized to execute the contract. Upon a motion by Councilman Rockoff, low bid of Granite Construction Company, in the amount of $42.271, for construction of Asphalt Concrete Pavement on Panama Lane west of Akers Road, was accepted, the other bid rejected and the Mayor was authorized to execute the contract. Upon a motion by Councilman Strong, low bid of Madonna Construction Company, in the amount of $260,580, for construction of curb and gutter in the Lowell Addition Area, was accepted, all other bids rejected and the Mayor was authorized to execute the contract. Bakersfield, California, July 29, 1981 - Page 23 DEFERRED BUSINESS Adoption of Ordinance No. 2656 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield located south of California State College, north of Sunset Railroad, west of the Arvin-Edison Canal and Gosford Road, and east of Old River Road. The application for this amendment was made by Tenneco Realty Development Corporation and would change subject properties from an "A" (Agricultural) Zone to an R-1 (One Family Dwelling), R-2 (Limited Multiple Family Dwelling), R-3 (Limited Multiple Family Dwelling), C-O (Commercial and Pro£essional Office) and C-2 (Commercial) Zones. Upon a motion by Councilman Payne, Negative Declaration and Ordinance No. 2656 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield located south of California State College, north of Sunset Railroad, west of the Arvin-Edison Canal and Gosford Road, and east of Old River Road, finding said zonings consistent with the General Plan, were adopted by the following roll call vote: Ayes: Councilmen Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: Councilman Christensen NEW BUSINESS First reading of an Ordinance of the Council of the City of Bakersfield adding Chapter 1.48 to the Municipal Code establishing and adopting rules for the operation of the City's Water System in the Fairhaven Water Service Area, amending Chapter 1.46 by adding Section 1.48.020 D, and amending Sections 1.46.120, 1.46.150 A (2) a., and 1.46.150 B., relative to Operational Rules for Ashe Water Service Area. This ordinance provides the standards of operation for Fairhaven Water System as acquired in Agreement No. 80-36, dated 24 Bakersfield, California, July 29, 1981 - Page 24 March 12, 1980, between the City, Fairhaven Industrial Fire Pro- tection District and Fairhaven Mutual Water Company. The Fair- haven Water System will operate in a similar manner as the Ashe Water System. The Water Board recommended adoption of this ordinance. First reading was considered given an Ordinance of the Council of the City of Bakersfield adding Chapter 1.48 to the Municipal Code establishing and adopting Rules for the Operation of the City's Water System in the Fairhaven Water Service Area, amending Chapter 1.46 by adding Section 1.46.020 D, and amending Sections 1.46.120, 1.46.150 A (2) a., and 1.46.150 B., relative to Operational Rules for Ashe Water Service Area. First reading of an Ordinance of the Council of the City of Bakersfield amending Section 12.32.020 (a) of the Bakersfield Municipal Code relative to License Agreement in lieu of Encroachment Permit for pipelines conveying petroleum products. This ordinance provides that a License Agreement may be substituted for an Encroachment Permit for encroachments by pipe- lines conveying petroleum products to or from refineries. The License Agreement permits the City to be compensated for allowing pipelines to traverse its property. First reading was considered given an Ordinance of the Council of the City of Bakersfield amending Section 12.32.020 (a) of the Bakersfield Municipal Code relative to License Agreement in lieu of Encroachment Permit for pipelines conveying petroleum products. First reading of an Ordinance of the Council of the City of Bakersfield amending Section 16.24.124 (d) of the Bakersfield Municipal Code relative to fees for construction of Planned Drainage and Sanitary Sewer Facilities pursuant to adopted plans, and referring to plans adopted for parti- cular drainage and sanitary sewer areas. Bakersfield, California, Ju~y 29, 1981 - Page 25 This ordinance specifies that the requirement that sub- dividers pay a fee for construction of Planned Drainage Facilities applies, pursuant to the plans adopted for such area, to the Pioneer and Fairview Planned Drainage Areas. First reading was considered given an Ordinance of the Council of the City of Bakersfield amending Section 16.24.124 (d) of the Bakersfield Municipal Code relative to fees for construction of Planned Drainage and Sanitary Sewer Facilities pursuant to adopted plans, and referring to plans adopted for particular drainage and sanitary sewer areas. First reading of an Ordinance amend- ing Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield located in the proposed Rio Bravo Golf Course, south of Highway 178 and east of Miramonte Drive. The application for this amendment was made by La Hacienda, Inc., and would change subject properties from an Zone to an R-2 (Limited Multiple Family Dwelling), Zone. The Planning Commission approved the amendment and recom- mended same to the City Council. First reading was considered given an Ordinance amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield located in the proposed Rio Bravo Golf Course, south of Highway 178 and east of Miramonte Drive. Adoption of Resolution No. 58-81 of the Council of the City of Bakers- field adopting Drainage Plans for Pioneer and Fairview Planned Drainage Areas and making findings thereto. The Pioneer will serve an area of 600 acres in the vicinity of Morning Drive and College Avenue. Fees of $2,100 per acre for Residential and $3,200 per acre of Commercial will be assessed at the time of development. "A" (Agricultural[) or more restrictive 9.6 Bakersfield, California, July 29, 1981 - Page 26 The Fairview will serve 669 acres in an area bounded by South "H" Street, Pacheco Road, Union Avenue and the Arvin-Edison Canal. Fees of $1,700 per acre will be assessed at the time of development. Upon a motion by Councilman Payne, Resolution No. 58-81 of the Council of the City of Bakersfield adopting Drainage Plans for Pioneer and Fairview Planned Drainage Areas and making findings thereto, was adopted by the following roll call vote: Ayes Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes None Absent: None Adoption of Resolution No. 59-81 of the Council of the City of Bakers- field providing for the adjustment of Property Tax Revenues upon Local Agency jurisdictional change resulting from Annexation No. 282, LAFCO Pro- ceeding No. 736 (Panama Lane No. 3). Panama Lane No. 3 Annexation cannot be processed until there is a negotiated exchange of Property Tax Revenues between the County and City. The County has agreed, by resolution, to the exchange of Property Tax Revenues and after the City's acceptance of the exchange the annexation can continue to be pro- cessed. Upon a motion by Councilman Ratty, Resolution No. 59-81 of the Council of the City of Bakersfield providing for the adjust-- ment of Property Tax Revenues upon Local Agency jurisdictional change resulting from Annexation No. 282, LAFCO Proceeding No. 736 (Panama Lane No. 3), was adopted by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None Bakersfield, California, July 29, 1981 - Page 27 Adoption of Resolution No. 60-81 of the Council of the City of Bakers- field making findings and certifying the Final Environmental Impact Report for the Truxtun Avenue Improvement Project. The EIR discusses and describes the project's environ- mental considerations and mitigation measures and various alter- natives to the project, including "no project." A public hearing on the Environmental Impact Report was held before the Planning Commission on June 4, 1981. The review period for written comments was extended by the Commission for an additional two weeks to June 18, 1981. The City has responded to all significant points raised by the public in the review and hearing process. On June 18, 1981, the Planning Commission adopted and recommended to the City Council that the Final EIR be certified as complete. In answer to questions by the Council, Director of Public Works Hawley stated the next step would be for the Public Works Department to complete the Plans and Specifications for the Truxtun Avenue Alternative for presentation to the Council for approval and authorization to advertise for bids. The project is Truxtun Avenue with a traffic signal at the intersection of Oak Street and Truxtun Avenue. Alternate No. 1 would be a grade separation at the inter- section of Truxtun Avenue and Oak Street. Alternate No. 2 would be the 16th Street Alternative at an estimated cost of $2,965,000. Councilman Christensen stated it bothers him that instead of paying $4,200,000 now, for an underpass or overpass at Oak Street, it is going to be postponed 10-15 years when the cost will be $12,000,000-$15,000,000. City Manager Kelmar stated he does not see how l0 years from now, unless things for government improve, the City will ever be able to afford a grade separation of that magnitude on its own volition. It is felt by the staff this is the best alternative. Bakersfield, California, July 29, 1981 - Page 28 If problems develop then 16th Street will be looked at as an alternate. The staff shares the Council's concerns and frustrations, but at this point in time there is no other choice. Upon a motion by Councilman Rockoff, Resolution No. 60-81 of the Council of the City of Bakersfield making findings and certifying the Final Environmental Impact Report for the Truxtun Avenue Improvement Project, was adopted by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None Councilman Rockoff made a motion that the staff not pro- ceed with the expenditure of any funds on the Truxtun Avenue Improvement Project and the matter be referred to the Business Development and Parking Committee for study and recommendation. Councilman Means, speaking against the motion, stated there are a number of problems with the current project, primarily at the intersection of Truxtun Avenue Extension and Oak Street. They exist because of a lack of adequate planning, due to lack of staff. The current plan is the best the City has and it should proceed with it. Councilman Ratty offered a substitute motion that Alternative No. l, grade crossing at Truxtun Avenue with a signal, be accepted. After further discussion this motion carried by the following roll call vote: Ayes: Noes: Absent: stated according to Councilmen Means, Payne, Ratty, Strong, Barton Councilmen Christensen, Rockoff None Councilman Christensen, in clarifying his negative vote, the danger involved he cannot accept it. Bakersfield, California, July 29, 1981 - Page 29 2¸9 Adoption of Resolution No. 61-81 of the Council of the City of Bakers- field authorizing the filing of an Application with the Kern County Council of Governments for Claim of Transportation Development Act Funds for exclusive use of pedestrians and bicycles. A portion of the Transportation Development Act Fund is designated for development of facilities for the exclusive use of pedestrians and bicyclists. Plans are nearly complete for con- struction of the project. Sufficient funds have been claimed to complete Phase I, between Cal-State and Mohawk Street. The proposed claim, in the amount of $150,000, is required to construct Phase II, between Mohawk Street and Beach Park. Upon a motion by Councilman Means, Resolution No. 61-81 of the Council of the City of Bakersfield authorizing the filing of an Application with the Kern County Council of Governments for Claim Of Transportation Development Act Funds for exclusive use of pedestrians and bicycles, was adopted by the following roll call Councilmen Means, Payne, Ratty, Rockoff, Strong, Barton None None Councilman Christensen Adoption of Resolution No. 62-81 of the Council of the City of Bakers- field approving entering into a Contract with the State Personnel Board for the performance of tech- nical services and authorizing the City Manager to sign the Contract. This is a renewal of a Three-Year Contract with Cooperative Personnel Services. City Personnel Division uses this service, when necessary, for written examinations in order to assure that our tests are job related. Upon a motion by Councilman Rockoff, Resolution No. 62-81 of the Council of the City of Bakersfield approving entering into a Contract with the State Personnel Board for the performance of vote: Ayes: Noes: Absent: Abstaining: Bakersfield, California, July 29, 1981 - Page 30 Ayes: Noes: Absent: Councilmen Christensen, Means, Strong, Barton technical services and authorizing the City Manager to sign the Contract, was~adopted by the following roll call vote: Payne, Ratty, Rockoff, None None Approval of Pipeline License Agreement between the City of Bakersfield and Independent Valley Energy Company ("IVEC") for a petroleum products pipeline to convey oil across City- owned property and across and within street right-of-ways. The agreement specifies IVEC's responsibilities, and acceptance of liabilities relating to the pipeline, and provides for payment to the City of $12,370.00 for the 35-year License. Upon a motion by Councilman Barton, Pipeline License Agreement between the City of Bakersfield and Independent Valley Energy Company ("IVEC") for a petroleum products piepline to convey oil across City-owned property and across and within street right- of-ways, was approved and the Mayor was authorized to execute same. Approval of Agreement of Sale between the City and California Water Service Company for acquisition by the City of the Company's Water Distribution Facilities within the Fairhaven Service Area. The City proposes to purchase the Company's Water Distribu- tion Facilities, which are located west of Highway 99 and within the Fairhaven Water District. The purchase price is $220,000. This sale fulfills a portion of the City's agreement with Fairhaven Mutual and Fairhaven Industrial Fire Protection District. Sufficient funds are available in the Domestic Water Enterprise Account. Upon a motion by Councilman Ratty, Agreement of Sale between the City and California Water Service Company for acquisition by the City of the Company's Water Distribution Facilities within the Fairhaven Service Area, was approved and the Mayor was authorized to execute same. Bakersfield, California, July 29, 1981 - Page 31 Approval of Agreement with Kern County Probation Department for Adult Diversion Program. This agreement, if approved, will continue for the second year a process of handling young adult first offenders of certain minor offenses without the necessity of being processed in the normal manner through the Criminal Justice System. The County provides a Deputy Probation Officer III at no cost to the City, on a full time basis, to function as a Diversion Of£icer within the Police Department. The City provides a Clerk Typist II at a cost to the City of $15,039 per year to handle clerical work for the Diversion Officer. These costs will be totally reimbursed to the City by the County of Kern. Upon a motion by Councilman Payne, Agreement with the Kern County Probation Department £or Adult Diversion Program, was approved and the Mayor was authorized to execute same. Approval of Addendum to Agreement No. 80-85 between the City, John Carollo Engineers and Quad Consultants pro- viding terms and conditions for preparation o£ a Step I Facilities Plan for the City's Wastewater Treatment Plant No. 3. On March 19, 1981, the City Planning Commission conducted a public hearing on an Environmental Impact Report for the waste- water effluent disposal alternatives and the expansion of Waste- water Treatment Plant No. 3. After considerable public testimony and discussion, the Planning Commission recommended a continuation of the hearing to permit the staff sufficient time to evaluate additional wastewater disposal alternatives. This Addendum directs the City's consultant to proceed with an Environmental Impact Report, Financial Plan and Revenue Program for four additional wastewater disposal alternatives. The cost £or this report will be $16,000. Sufficient funds are avail- able in the Southwest Sewer Bond Account to fund this report and program. Bakersfield, Cali£ornia, July 29, 1981 - Page 32 Upon a motion by Councilman Payne, Addendum to Agreement No. 80-85 between the City, John Carollo Engineers and Quad Consultants providing terms and conditions for preparation of a Step I Facilities Plan for the City's Wastewater Treatment Plant No. 3, was approved and the Mayor was authorized to execute same. Approval of New Construction Incentives Program Agreement with Presidio Con- struction, Inc., for purchase of five lots in Census Tract 22 for a total price of $30,000. On June 3, 1981, the City Council approved Budget Review and Finance Committee Report No. 8-81 establishing the New Con- struction Incentives Program and authorizing Community Development staff to administer it. The Department of Housing and Urban Development (HUD) has also approved the program. Under this program, the City purchases lots at a maximum of $6,000 and makes them available to developers to build low cost housing. These funds will be recaptured by the City at the time the property is sold. Councilman Payne stated that due to a real or imaginary conflict of interest he would not participate in this matter. Upon a motion by Councilman Rockoff, New Construction Incentive Program Agreement with Presidio Construction, Inc., for purchase of five lots in Census Tract 22 for a total price of $30,000, was approved and the Mayor was authorized to execute same. Councilman Payne abstained from voting on this matter. Approval of New Construction Incentives Program Agreement with Tommie Townsend, dba Calico Construction for purchase of ten lots in Census Tract 22 for a total price of $60,000. On June 3, 1981, the City Council approved Budget Review and Finance Committee Report No. 8-81 establishing the New Con- struction Incentives Program and authorizing Community Development staff to administer it. The Department of Housing and Urban Development (HUD) has also approved the program. Bakersfield, California, July 29, 1981 - Page 33 Under this program, the City purchases lots at a maximum of $6,000 and makes them available to developers to build low cost housing. These funds will be recaptured by the City at the time the property is sold. Upon a motion by Councilman Christensen, New Construction Incentives Program Agreement with Tommie Townsend, dba Calico Construction for purchase of ten lots in Census Tract 22 for a total price of $60,000, was approved and the Mayor was authorized to execute same. Approval of Water Service Agreement with Tenneco Realty Development Corporation for Parcel Map No. 5726, located north of Rosedale Highway and west o£ Fairhaven Drive. The agreement reserves excess well and storage capacity for use in Parcel Map No. 5726. Water for domestic, industrial, and fire protection uses would be provided to the developer at a fee of $1,500 per acre. This fee pays for the cost of capital improvements (well, storage and booster systems), however, the developer will be responsible for constructing all water mains within the subdivision. Upon a motion by Councilman Ratty, Water Service Agreement with Tenneco Realty Development Corporation for Parcel Map No. 5726, located north of Rosedale Highway and west of Fairhaven Drive, was approved and the Mayor was authorized to execute same. Approval of Water Service Agreement with Lunn Production Service Company reserving excess well and storage capacity for use within twenty-nine acres located at the southwest corner of Burr and Gibson Streets. Water for domestic, industrial and fire protection uses would be provided to the developer at a fee of $1,500 per acre. This fee pays for the cost of capital improvements (wells, storage and booster systems), however, the developer will be responsible for constructing all water mains within the subdivisions. Bakersfield, Cali£ornia, July 29, 1981 - Page 34 Upon a motion by Councilman Means, Water Service Agree- ment with Lunn Production Service Company reserving excess well and storage capacity £or use within twenty-nine acres located at the southwest corner of Burr and Gibson Streets, was approved and the Mayor was authorized to execute same. Adoption of 1981-82 Domestic Water Enterprise Operation and Capital Outlay Budget. This budget was approved and recommended to the Council for adoption by the Water Board on July 22, 1981. Upon a motion by Councilman Barton, 1981-82 Domestic Water Enterprise Operation and Capital Outlay Budget, was approved. Approval of request to retain surplus equipment (Vehicle No. 4172). The City presently has two trucks equipped with sewer cleaning equipment. Due to growth of the City's collection system, and in order to maintain an adequate Sewer Cleaning Program, it has become necessary to occasionally use a third truck. The Public Works to retain a truck equipped been designated as surplus would adequately serve the for several years, if used Upon a motion by surplus equipment (Vehicle Approval of the City of Department is requesting Council approw~l - with sewer cleaning equipment, which has · The vehicle is ten years old, but needs of the Sewer Cleaning Sections on an occasional or stand-by basis. Councilman Barton, request to retain No. 4172), was approved. Lease Agreement between Bakersfield and the Bakersfield Association for Retarded Citizens leasing to B.A.R.C. the eastern portion of the Senior Citizens' Center Site. This Lease Agreement leases to B.A.R.C. the eastern portion of the Senior Citizens' Center Site from the close of escrow of the City's purchase from B.A.R.C. to December l, 1981, at $5,000 per month, and the balance of the site for a one-year period from the close of escrow, at $2,000 per month, from and after December 1, 1981. Escrow is scheduled to close July 31, 1981. Bakersfield, California, July 29, 1981 - Page 35 Upon a motion by Councilman Rockoff, Lease Agreement between the City of Bakersfield and the Bakersfield Association of Retarded Citizens leasing to B.A.R.C. the eastern portion of the Senior Citizens' Center Site, was approved and the Mayor was authorized to execute same. HEARINGS This is the time set for public hearing regarding Negative Declaration on First Point of Measurement Metering Facility. This hearing was duly advertised. This hearing is for the purpose of hearing any comment for or against the City's proposal to grant a Negative Declaration for construction of the First Point of Measurement Metering structure, which wil~ provide for the accurate measurement and the proper distribution of the Kern River Diversion Rights. The City of Bakersfield has been designated as the lead agency in this con- struction project by the Kern River interests. Mayor Shell declared the hearing open for public partici- pation and no one in the audience indicated a wish to speak on this matter. Upon a motion by Councilman Barton, Negative Declaration on First Point of Measurement Metering Facility, was adopted by the following roll call vote: Ayes Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes None Absent: None This is the time set for hearing before the Council on the revocation of a Secondhand Dealer's Permit held by William Oscar Bridges, 27 Chester Avenue and 1822 "G" Street. The owner, Mr. William Oscar Bridges, has been notified of this hearing, pursuant to provisions of the Municipal Code, in order to allow him an opportunity to appear before the Council to rebut evidence presented by the Police Department for revocation of his Secondhand Dealer's Permit. Bakers£ield, California, July 29, 1981 - Page 36 Deputy City Attorney Dean Rice, representing the Police Department, stated they are seeking revocation of two Business Permits issued to William Bridges to conduct business as a Second- hand Dealer at 27 Chester Avenue and 1822 "G" Street, under the name of "The Refinery." Section 7.18.080 of the Municipal Code gives the Council the right to revoke such a permit if it is found the business is conducting their transactions in an irregular or illegal manner. The evidence to be presented to the Council this evening shows numerous violations of both State law and the Muni- cipal Code, particularly with respect to the Business and Professions Code, which requires daily reports from Secondhand Dealers showing the persons property is bought from, the identity and address of sellers, description of the property and certification by seller that this information is true. Essentially the legislative intent behind that statute is to discourage fencing operations. The City of Bakersfield has a Municipal Code Section patterned after the State law. Additionally, there is a Business and Professions Code Section which prohibits these types of businesses from buying property from minors. Bakersfield has a similar ordinance. Lastly, evidence will be introduced showing violations of the Penal Code in receiving stolen property at this business. After being sworn in by the Assistant City Clerk, Detective Harry Taylor Scott, Bakersfield Police Department, was questioned by Deputy City Attorney Rice about the details of two interviews he conducted at the Bakersfield Police Department with two juveniles on June 22, 1981 and July 10, 1981, regarding the selling of stolen property to an establishment called "The Refinery," located on "G" Street in the City of Bakersfield. Detective Scott stated the juveniles identified the individual they dealt with, at The Refiner~ as Dennis Lee Foster. Deputy City Attorney Rice filed copies, for the record, of two Police Reports, identified as Case #81-16968 dated 7-8-81 and Case #81-15903 dated 7-10-81, with the City Council. Bakersfield, California, July 29, 1981 - Page 37 After being sworn in by Assistant City Clerk, Police Officer William Bernard Prins, Bakersfield Police Department, was questioned by Deputy City Attorney Rice about an undercover operation that took place at "The Refinery" on "G" Street on July l, 1981, where he was assigned to conduct sales transactions with that business. Officer Prins identified the person he dealt with at "The Refinery" as a person sitting in the audience with a blue shirt and long blonde hair. He stated that at no time during the undercover operation was he asked to produce identification or sign a receipt for the property he sold to "The Refinery." Deputy City Attorney Rice filed copies, for the record, of a taped conversation at "The Refinery" on 7/1/81 between Officer Prins and Dennis Foster at 1030 hours, and Police Report identified as Case #81-16986 dated 7-8-81, with the City Council. Dr. Jimmie H. Bridges, father of William Bridges, stated his son Billy was arrested in April for narcotics. Six officers from the Police Department searched his home and found about a quarter of a pound of Marijuana. He was never convicted. He is on probation at the present time. He has paid society for his errors and he has said he is not touching it any more. Dr. Bridges stated he financed Billy into this business on "G" Street and asked the City Attorney if he could question Dennis Foster. City Attorney Oberholzer stated the procedure is open to the City Council. Mr. Foster can be sworn in, however, he must understand that there are criminal charges pending against him. Anything he says here can and may be used, and probably will be used, against him in the criminal proceedings. He has the right to remain silent and he cannot be compelled to testify before this body. City Attorney Oberholzer advised Dennis Foster of his constitutional rights as a criminal charge is currently pending against him. Mr. Jimmie H. Bridges, Jr., brother of William Bridges, operator of the business at 27 Chester Avenue, questioned Detective Bakersfield, California, July 29, 1981 - Page 38 Scott regarding fencing operations, the store located at 27 Chester Avenue involvement in this matter and the two juveniles that were questioned on June 22 & July 10, 1981. Mr. Bridges questioned Officer Prins about the undercover operation he worked on July 1, 1981, at "The Refinery" on "G" Street, the recording device he had on his person and the transcript made from that tape. Mr. Bridges stated these businesses are a family corporation, his brother has the Business Licenses in his name, their father supplies the money and they handle the buying of gold through the two stores. For ease, his father, brother and himself are on the road a lot, his brother William was in town at the time the license was applied for and he put it in his name, Mr. William Bridges questioned Detective Scott about the two juveniles that were questioned by the Police Department, the undercover operation that took place at "The Refinery" on "G" Street and the day he was arrested at his home. After being sworn in by the Assistant City Clerk, Dennis Foster was asked by the City Attorney if he recalled the rights he was advised of a few minutes ago? Dennis Foster replied he did. City Attorney Oberholzer asked if he was going to waive those rights and allow himself to be cross-examined, except on such matters as he wished to exert the Fifth Amendment rights against self-incrimination. Dennis Foster replied yes. Dennis Foster questioned Officer Prins about the transcript of the tape made on the undercover operation at "The Refinery" on "G" Street on July 1, 1981. Deputy City Attorney Rice questioned Dennis Foster about the transaction he made with Officer Prins in "The Refinery" on "G" Street, the report of such transaction and the sale of drugs. Police Captain Patterson stated in this type of business it is the responsibility of the operator to assure that business is Bakersfield, California, July 29, 1981 - Page 39 carried on in a legitimate manner. They have not taken on this responsibility. It is State and City law. In this type of operation continuances can go on for a year in court business is open and still operating. Word gets out responsible for the burglaries in town know where to that word spreads quick. The Police Department had information this operation was going on, an officer was put in and it was found to be true without a doubt. The Police Department is trying to protect the legitimate businesses. The Police Department's concern is that they will continue to operate pending a court trial that can continue for one year. If their license is revoked at this time they cannot continue to operate. They are responsible for the people that sell over the counter. Deputy City Attorney Rice stated they have not complied with record keeping requirements, bought from a minor and received stolen property. Councilman Ratty made a motion that the Secondhand Dealer's Permit held by William Oscar Bridges, 27 Chester Avenue and 1822 "G" Street, be revoked. After further discussion this motion carried by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None Actions of the Council regarding Reapportionment of City Ward Boundaries and alleged violation of the Brown Act. and the fast. People take the stuff, Map of the Seven Wards furnished to the Council tonight and was there some indication from staff that this needed to be done. Councilman Barton stated he authored the map, with the aid of staff, and input from Councilmen Rockof£, Ratty and Payne in certain areas. Councilman Strong asked who authorized the Reapportionment 4O Bakersfield, Cali£ornia, July 29, 1981 - Page 40 City Attorney Oberholzer stated pursuant to the Charter Amendment, that was adopted, the City is mandated to reapportion the ward boundaries, by ordinance, every l0 years after the Federal Census. It is not mandated, but the boundaries may be altered every 5 years. Councilman Strong asked if there was any formal notifi- cation to the Council as a body. City Manager Kelmar stated a number of months ago a memo was placed in the packets indicating that this needed to be done. The County Clerk has indicated this has to be submitted to his office sometime in August. A map was placed in the Caucus Room with all the necessary information. Councilman Strong asked Councilman Barton, if, what he is saying, is that, four Councilmen got together and decided. Councilman Barton stated no, four Councilmen did not get together and decide. The memo stated this had to be done by August or the Council would be in nonconformance. No one seemed to be doing anything with it, so he did. Councilman Means asked if this represents a consensus of the Councilmen who had input. Councilman Barton stated yes, in some areas. Councilman Means stated the four Councilmen did not meet together and he asked Councilman Barton if he talked to each one individually, along with staff. Councilman Barton stated yes and Planning. Councilman Means asked if they then arrived at some con- sensus, which is the plan before the Council. City Attorney Oberholzer stated he does not know that they arrived at a consensus or what they did. He does not know that there was a violation of the Brown Act. He does not know that any decision has been made. Something has been submitted for the Council's consideration and he does not know exactly what has been done with that map. Bakersfield, California, July 29, 1981 - Page 41 4i During discussion, Councilman Means stated the Council is at a point where it would be very difficult for the City Attorney to represent what, essentially, is both sides o£ the issue and it is very conceivable that he will have to get his own attorney to file a suit. Councilman Means stated he believes there has been a serious violation of the Brown Act and it is very clear. Councilman Barton stated there is a memorandum with this packet that says "Suggested Council Ward Reapportionment Plan Ordinance." The document given to the Council was drawn by staff, not me. The original lines were drawn, after consulting with people in Planning, because of a court decision that the population balance in wards has to be nearly perfect. The map was drawn, with staff assistance, using Census Tract Maps. The other four members, that were consulted, are also seeing this document for the first time. Councilman Christensen stated that Councilman Barton told him, the other day, that the meeting of the Water Committee was an absolute violation of the Brown Act. Councilman Christensen requested, as an elected official, that the Council have an analysis from staff that deals with the personality of George Nickel, because he would like the public to know what was said about him. Councilman Christensen made a motion, as an elected official, that a report of the Water Board be given to the Council as to the personality of George Nickel, because the details of the Water Board are supposed to come beck to the Council for approval or disapproval. Councilman Barton stated he has never told Councilman Christensen the Water Board was a violation of the Brown Act. City Attorney Oberholzer stated the factual situation which Councilman Christensen stated is, in fact, a violation of the Brown Act. When he said three Council members get together and called a fourth to get a consensus on a matter, that is a violation of the Brown Act. Bakersfield, California, July 29, 1981 - Page 42 Councilman Strong asked if injunctive action was sought, and Councilman Barton was defended by the City Attorney, would the other Councilmen have the right to employ Counsel at City expense. City Attorney Oberholzer stated in doing something of that nature the Council would probably have to employ all outside Counsel for both sides, because the City Attorney would be put in a conflicting position, unless he could establish there was a violation of the Brown Act. Mayor Shell declared a brief recess at 12:45 A.M. in order to change the tape of the Council Meeting. The meeting was reconvened at 12:50 A.M. Councilman Strong requested that this portion of the minutes be spread across the minutes and the tapes be preserved until this matter is cleared up. In answer to questions by Councilman Strong, Councilman Barton stated no other Councilman worked on the map. It was drafted with the help of two staff members from the Planning Department, because the population has to be as equal as possible. Population was the only criteria used in drawing the ward boundaries. The City does not have much time left to comply with the County's August deadline on this matter. No other member of the Council did anything with the map on the wall in the Caucus Room, so he took it upon himself to make the suggestions for reapportionment. Those suggestions were presented to the Council tonight. The Council has from tonight to August 26, 1981, to make some kind of decision on the ward boundaries. Councilman Barton also stated he had the only copy of a map last Friday, that Payne, but it was not exact and because it was out of balance. was shown to Councilmen Strong and a lot more work was done on it, City Attorney Oberholzer stated there cannot be a specific percentage deviation in the population o£ wards. The courts have ruled that equal population means equal population. It is his Bakersfield, California, July 29, 1981 - Page 43 ¸4.3 interpretation, of that particular section, that if the City has an area that is rapidly growing it can be slightly below equal population levels, in anticipation that it is growing at such a rate that by the time of election it will be equal or possibly exceed the equal population requirement. In answer to a question by Councilman Strong, City Attorney Oberholzer stated a deviation is allowed provided it can be de£ended. During discussion, Councilman Strong asked if in making a determination if a violation of the Brown Act occurred, will the four Councilmen have the City Attorney's assistance, at taxpayers expense, as opposed to the other three Councilmen having to go outside this body in order to get some assistance in making that determination. City Attorney Oberholzer stated he thinks he should be able to make that determination regardless of who the Council members are. The City Attorney does not have the authority to bring action for misconduct. The Council would have to go to some- one else. The appropriate action would be to request the City Attorney's Office to make an investigation and report back to the Council as to whether or not there was a violation of the Brown Act. Councilman Means made a motion that in order to make some determination, not assuming there was or was not a violation, the Council ask the City Attorney to give any members, or any side of the Council, appropriate, legal, unbiased representation other than by the City Attorney's Office. Mayor Shell stated there is another motion on the floor by Councilman Christensen. Councilman Christensen stated it was not a motion. It was a personal request, as an elected official, to receive from the staff a critical analysis as to the personality of Mr. Nickels, as revealed by the Water Board. 44 Bakers£ield, California, July 29, 1981 - Page 44 Councilman Means repeated his motion as follows: There needs to be some objective public scrutiny of the actions that have gone on with the other four Councilmen regarding the Reapportion- ment Plan up until now, and that the Council authorize legal advice from someone other than the City Attorney to any member of the Council, or any group of members of the Council, to advise them on whether there has or has not been a violation of the Brown Act, since it is obviously difficult for our City Attorney to be unbiased. During discussion Councilman Means stated the City Attorney volunteered to do an assessment of whether there was or was not a violation of the Brown Act and he would accept his judgment, be- cause he is a very fair and honest person. Aside from that particular issue, however, he still felt as a respresentative of the 5th Ward, and the other two members also, that they need legal representation and they should be allowed to have that person to give them advice. Councilman Means amended his motion to state that legal advice for any member of the Council be allowed, to make some recommendation about whether or not there was a violation of the Brown Act and the City Attorney make a determination about whether or not there was a violation of the Brown Act. After further discussion, Councilman Means stated he would include in his amended motion that a limit of $1,000 total. Councilman Ratty offered a substitute motion that the City Attorney be authorized to make an investigation into whether or not a violation of the Brown Act occurred. by the following roll call vote: Ayes: Noes: Absent: for outside legal This motion carried Councilmen Christensen, Payne, Ratty, Rockoff, Barton Councilmen Means, Strong None Councilman Means made a motion to authorize an expenditure advice from an Attorney for those Councilmen who Bakersfield, California, July 29, t981 - Page 45 45 feel they need legal advice about whether or not there has been a violation of the Brown Act, in this case, or how to proceed. Councilman Rockoff stated he will oppose the motion because there is no limit to the amount of money that will be spent. call Ayes: Councilman Means' motion carried by the following roll vote: Councilmen Christensen, Means, Payne, Strong Noes: Councilmen Ratty, Rockoff, Barton Absent: None Councilman Rockoff made a motion that the last vote on Councilman Means' motion be reconsidered. This motion carried by the following roll call vote: Ayes: Councilmen Means, Payne, Ratty, Rockoff, Barton Noes: Councilmen Christensen, Strong Absent: None Councilman Means' motion to outside legal advice from an Attorney feel they need legal advice about whether or not there has been a violation of the Brown Act, in this case, or how to proceed, failed to carry by the following roll call vote: Ayes: Councilmen Christensen, Means, Strong Ratty, Rockoff, Barton Noes: Councilmen Payne, Absent: None authorize an expenditure for for those Councilmen who ADJOURNMENT further business to come before the by Councilman Christensen, the meeting was ZOR 0f~e ~ity of Bakersfield, Calif. ATTEST:? ~ ~ v~'~6~-- of the Council of the City of Bakersfield, California There being no Council, upon a motion adjourned at 1:50 A.M. ma 46 Bakersfield, California, August 5, 1981 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., August 5, 1981. The meeting was called to order by Mayor Shell, followed by the Pledge of Allegiance and Invocation in the form of a prayer submitted by Yolonda Augusto, Pastor of the Deliverance Center. The City Clerk called the roll as follows: Present: Mayor Shell. Councilmen Means, Payne, Ratty, Rockoff, Strong, Christensen Absent: Councilman Barton SCHEDULED PUBLIC STATEMENTS Mr. Jimmy Sanchez, representing Greater Bakersfield Crime Commission and California Coalition to End Barrio Warfare, stated they are planning a rally in Beach Park on August 30, 1981, and requested that the park fees be waived. Mr. Sanchez stated the purpose of this request is to get the City of Bakersfield involved in programs such as this by cosponsoring it. After discussion, Mayor Shell stated she and Mr. Sanchez would meet during the week and come up with an official request to present to the Council at the meeting of August 12, 1981. CORRESPONDENCE Upon a motion by Councilman Christensen, communication from Gary R. Madsen, Chairman of Muscular Dystrophy Softball Tournament, dated August 3, 1981, requesting that rental fees for the softball diamonds at Patriots Park be waived on September 5 and 6, 1981, was received and referred to the Auditorium-Recreation Committee for study and recommendation. Upon a motion by Councilman Ratty, communication from Mac D. Culver, 3709 River Boulevard, dated July 30, 1981, submitting his resignation from the Miscellaneous Department Civil Service Board, was received, resignation accepted and the Mayor was requested to send a letter of appreciation for his years of service to the City. Bakersfield, California, August 5, 1981 - Page 2 47 COUNCIL STATEMENTS Councilman Christensen stated the Sign Ordinance, as presently written, is a farce, significantly inequitable and lacking in purpose. He felt it is totally unenforceable. Far too many special permits and deviations have been granted. The majority of the City's Planning Commission and most businessmen are opposed to the current ordinance. Newspaper ads have skyrocketed, as well as increases in other medias. Signs are the cheapest and best form of advertising and in these troubled economic times businessmen are trying to cut costs. The Council has hummed and hawed about the Sign Ordinance and has not begun to achieve the purpose for which it was written. It is totally inequitable for the older areas of this City and is not being enforced in the newer areas. If the enforcement of the present ordinance, as written, were to be carried out the City Attorney would be in litigation around the clock. Councilman Christensen made a motion to repeal the Sign Ordinance and assign the revamping to the ZORAC Committee for intensive review and study; and requested that the repeal of the Sign Ordinance be voted on first. Councilman Rockoff stated he thought this matter had been referred to the Business Development and Parking Committee or some other Council Committee. Councilman Christensen stated he would withdraw his motion until just prior to adjournment and following the last hearing on the agenda. Councilman Means thanked the City Attorney for completing his investigation on preparation of the Ward Reapportionment Map and stated he hoped the whole Council would be able to work to- gether better. Upon a motion by Councilman Rockoff, memorandum from the City Attorney, dated August 4, 1981, regarding Investigation of Preparation of Ward Reapportionment, was received, ordered placed 48 Bakersfield, California, August 5, 1981 - Page 3 on file and spread across the minutes, as follows: On Wednesday, July 29, 1981, Vice-Mayor Barton distributed to all Council members a copy of his "Suggested Council Ward Reapportionment Plan and Ordinance." See copy of subject REPORT, attached hereto. The "report" referred to a revised ward boundary ordinance to be included as an agenda item at the regular City Council meeting of August 12, 1981. At the City Council meeting of July 29, 1981, Vice-Mayor Barton stated that he received "in- put" from other Council members. An issue was raised as to whether this constitutes a violation of the Brown Act. Council members Barton, Christensen, Payne, Ratty and Rockoff directed that the City Attorney's Office investigate to determine if the action of Vice-Mayor Barton constitutes a violation of the Brown Act. After interviewing all seven Council members, this office concludes that based upon statements given by the Council members, there was no violation of public notice and public meeting requirements of the Brown Act. ANALYSIS The Ralph M. Brown Act, Government Code Section 54950 et seq., requires that legislative bodies of local agencies hold their meetings open to the public, and conduct their deliberations and actions in public unless expressly exempted. Excluded from the public notice and public meeting requirements are committees composed solely of less than a quorum of Council members. A determination of the propriety of Vice-Mayor Barton's action requires an application of the facts to legal interpretations of the Brown Act. A meeting held in violation of the Brown Act does not void the action taken. The only remedy to a meeting in violation of the Brown Act in which action is taken is to charge the partici- pating legislative members with a misdemeanor. The participating members must have had knowl- edge that the meeting was in violation of the Act in order to be guilty of committing a mis- demeanor. Another, perhaps less effective remedy is an action enjoining the members from participating in any meeting in violation of the Act, whether or not action was taken, and even if there was only "deliberation." Such injunctive action would only serve to protect against future violations. If, with respect to Vice-Mayor Barton's proposed Ward Map, either action was taken by a majority of Council members or a majority of Council members deliberated over a matter which would be the basis of a later decision, then a vio- lation of the Brown Act occurred. Bakersfield, California, August 5, 1981 - Page 4 49 WAS ACTION TAKEN? "Action taken" is defined as a "collective decision made by a majority of the members of a legislative body, a collective commitment or promise by a majority . "Government Code Section 54952.6. "Action taken" can include a series of meetings or sessions which when combined result in a consensus from a number of members sufficient to constitute a quorum of the legislative body. Attorney General Op. 80-713. This office believes that based upon the state- ments given by each Council member that no action was taken in any form, whether by con- sensus, agreement, or commitment. Vice-Mayor Barton received some verbal input on reapportion- ment from at least three other Council members (Payne, Ratty and Rockoff), and a comment from one other Council member (Strong). Mr. Barton apparently did not share with others the specific comments he received from a Council member. None of the Council members appeared to have known what each had supplied as an input. Neither meetings nor discussions regarding re- apportionment took place when there was more than one Council member present with Mr. Barton. The map presented to the members by Vice-Mayor Barton was prepared by himself with assistance from staff. No Council member saw the map prior to its delivery to all Council members on July 29, 1981, for discussion at the August 12, 1981, City Council meeting. A commitment of support was neither sought nor obtained from any Council member. None believed they were committed to support any map presented by Vice-Mayor Barton. DID A MAJORITY DELIBERATE? The issue now turns to whether there was "de- liberation" of public business upon which official action would result. In Sacramento Newspaper Guild vs. Sacramento County Board of Supervisors, 263 CA2d 41, the court said: "To 'deliberate' is to examine, weigh, and reflect upon the reasons for or against the choice . . Deliberation thus connotes not only collective discussion, but the collective acquisition and exchange of facts preliminary to the ultimate decision." While a number of members sufficient to constitute a quorum violate the Brown Act if, in a series of meetings, whether formal or informal, they have had the opportunity to be informed and deliberate on particular public business, it is not possible to construe such a violation from the action of Vice-Mayor Barton. The key words in the court's definition of "deliberation" are the "collective discussion, Bakersfield, California, August 5, 1981 - Page 5 collective acquisition and exchange of facts preliminary to the ultimate decision." Although "collectivism" can be achieved through a series of meetings or informal sessions, the word itself connotes a unity of thought, data, facts or reasoning considered by all members of a group or series of groups (if not held at one time) that constitute a majority of the legislative body. In the matter under consideration, Vice-Mayor Barton singularly acquired the input for his proposed map. The data, thought, facts, or reasoning were never available for consideration or discussion by a group constituting a quorum either at a single session, conference or dis- cussion, or at a series of individual sessions, conferences or discussions. There was never an "exchange" of facts, data, ideas or reasoning until Councilman Barton presented his "Suggested Council Ward Reapportionment Plan and Ordinance" to all Council members on July 29, 1981, for consideration at the regular meeting of August 22, 1981. The acts of Vice-Mayor Barton did not circumvent either the purpose or itent of the Brown Act. The object of the Act is to assure that full public deliberation will take place. Since none of the Council members examined the proposed map, viewed or considered the input from other Council members, or exchanged any ideas, comments or facts, it seems apparent that when an ordinance is proposed it will be exposed to full public deliberation. GUIDELINES FOR COMt)LIANCE WITH BROWN ACT The interviews conducted by this office with the seven Council members indicated a need to reiterate general criteria for compliance with the Brown Act. The following general principles are provided for your information and guidance: Except as provided in the Government Code or except for legally recognized executive sessions, the public has a right to be present at all meetings of the City Council. "Meetings" include all gatherings consisting of a quorum or more where the public's business is to be discussed. Thus, no action need be taken to have a "meeting" either in the sense of final action or the broader concept of "action taken" as defined in this report. The public has a right to be present where only "delibera- tions," as defined in this report, occur regarding the pub~ic's business. The public notice and public meeting requirements cannot be circumvented by having a series of groups of less than quorum, which groups when considered together, have been pro- vided the same information and constitute a quorum. Bakersfield, California, August 5, 1981 - Page 6 3. Committee meetings consisting solely of less than a quorum of the City Council are exempted from the public notice and public meeting requirements. 4. The Brown Act does not preclude attendance by a quorum or more at social events where no public business is discussed. 5. Attendance at professional conferences by a quorum or more is permissible. However, care must be taken to avoid discussing matters which are before the City Council or may potentially come before the City Council. Respectfully submitted, Richard J. Oberholzer City Attorney Mr. Gonzalo Rameriz, member of the Mexican-American Political Association, stated they feel the community should have some input into the redistricting of Bakersfield. Dr. Jess Nieto, member of the Mexican-American Political Association and Chairman of Kern County Group of Californios' for Fair Representation, stated they feel redistricting is crucially important to everyone in the community and it is very important that the minority community be taken into consideration. Councilman Strong stated he appreciates Dr. Nieto and Mr. Ramirez for expressing their dissatisfaction in the way the redistricting has taken place in the past. There is no doubt it is very political and has, for the most past, ignored the minority concerns. There has been some indication by some Council members that they are willing to look at that and consider it. The boundaries that have been drawn up are not final and he will do everything he can to notify them when the plan will be reconsidered, so they can add their input. HEARINGS This is the time set for public hearing for proposed Maintenance District No. l, which provides the basis for the benefit assessment for maintaining street landscaping and irrigation systems to be borne by all parcels or property within proposed Bakersfield, California, August 5, 1981 - Page 7 Maintenance District No. 1, generally extending west from the east curb line of the median strip of Gosford Road to the eastern boundary of the Arvin-Edison Canal and the area extending south from the south curb line of Stockdale Highway to the center line of Ming Avenue. This hearing has been duly advertised, posted and the property owner notified as required by law. Mayor Shell declared the hearing open for public partici-- pation. No protests or objections being received, and no one wishing to speak in favor, the public portion of the hearing was closed for Council deliberation and action. Upon a motion by Councilman Christensen, Resolution No. 63-81 establishing Maintenance District No. 1 and confirming the Assessment, was adopted by the following roll call vote: Ayes: Councilmen Means, Payne, Ratty, Rockoff, Strong, Christensen Noes: None Absent: Councilman Barton This is the time set for continued public hearing before the Council on an Appeal by Marc Penner to the decision of the Board of Zoning Adjustment approving his application for a Condi- tional Use Permit to allow a bail bond office in a C-O-D (Commercial and Professional Office - Architectural Design) Zone, subject to conditions, on that certain property in the City of Bakersfield commonly known as 1324 "K" Street. This hearing has been duly advertised and the property owners notified as required by law. The conditions of approval required by the Board of Zoning Adjustment are as follows: (a) Applicant shall obtain a Special Inspection Permit and comply with all Building Depart- ment requirements. (b) Applicant shall provide two off-street parking spaces instead of one space as proposed in the application. Bakersfield, California, August 5, 1981 - Page 8 1981, at pation. (c) No more floor area shall be converted prior to providing the required off-street parking spaces. This hearing was continued from the meeting of June 24, the request of Mr. Penner's Attorney, Rex Mull. Mayor Shell declared the hearing open for public partici- Mr. Rex Mull, representing Marc Penner, stated the only thing they are appealing is whether or not there should be one or no parking spaces. Mr. Mull stated he cannot understand the logic of the Board of Zoning Adjustment requiring two parking spaces when the staff report states that only one is required. He stated one space is ample and requested that no parking spaces be required. Planning Director Sceales stated there are two residences at that localion (one in the same building and one in the building behind it), that require parking. The Conditional Use Permit was approved for the bail bond use, but the Board of Zoning Adjustment stipulated they wanted off-street parking spaces provided as required by ordinance. Mary Wallace, neighbor living across the street, stated there are several bail bond offices in the area and indicated she felt adequate parking should be provided. No further protests or objections being received and no one else wishing to speak in favor, Mayor Shell closed the public portion of the hearing for Council deliberation and action. Upon a motion by Councilman Ratty, Zoning Resolution No. 282 denying Appeal of condition attached to grant of Conditional Use Permit to allow a Bail Bond Office on that certain property commonly known as 1324 "K" Street, was adopted by the following roll call vote: Ayes: Councilmen Means, Payne, Ratty, Rockoff, Strong, Christensen Noes: None Absent: Councilman Barton Bakersfield, California, August 5, 1981 - Page 9 This is the time set for hearing before the Council on an Appeal by the Kern Karate Federation to the decision of the Planning Commission denying their request for a Special Sign Permit for a 6.9 square foot, double-faced, interior illuminated, pro- jecting roof sign in a C-2 (Commercial) Zone on that certain property commonly known as 210 Chester Avenue. Subject nonconforming projecting roof sign was installed without a Building Permit. The applicant is of the opinion there is no other location he could place the sign. Mayor Shell declared the hearing open for public partici- pation. Theresa Moody, student at Kern Karate Federation, requested that the Council grant the Special Sign Permit. Councilman Strong stated the applicant has requested that no action be taken on this Appeal tonight, pending a Council decision on the Sign Ordinance or that the matter be continued for 30 days. City Attorney Oberholzer stated the sign is in place now, which is in violation of the Sign Ordinance. The Council cannot waive the Sign Ordinance without amending it. The only alternative open to the Council is to grant the Special Sign Permit for 60 days, after which time it will expire. No protests or objections being received, and no one else wishing to speak in favor, Mayor Shell closed the public portion of the hearing for Council deliberation and action. Upon a motion by Councilman Ratty, request of Kern Karate Federation for a Special Sign Permit for a 6.9 square foot, double-faced, interior illuminated, projecting roof sign in a C-2 (Commercial) Zone on that certain property commonly known as 210 Chester Avenue, was granted for a 60 day period by the following roll call vote: Ayes: Councilmen Means, Payne, Christensen Noes: None Ratty, Rockoff, Strong, Absent: Councilman Barton Bakersfield, California, August 5, 1981 - Page l0 This is the time set for public hearing before the Council on an Appeal by Beacon Oil Company to the decision of the Planning Commission regarding a request for approval of plans and elevations for a neighborhood shopping center site in a C-2-D (Commercial - Architectural Design) Zone on that certain property located on the southwest corner of Ming Avenue and Ashe Road. This hearing has been duly advertised and the property owners notified as required by law. The Planning Commission approved the plans and elevations for a proposed shopping center subject to several conditions. The appeal concerns one condition required by the Planning Commission to eliminate the most easterly driveway on Ming Avenue, in front of a proposed service station site. Mayor Shell declared the hearing open for public partici- pation. Gary Rosa, representing Beacon Oil Company and Project Manager for the Laurelglen Plaza Project, stated he was present to answer questions of the Council and their reasons for the appeal are stated in the letter presented to the Council. No protests or objections being received and no one else wishing to speak in favor, Mayor Shell closed the public portion of the hearing for Council deliberation and action. In answer to a question by Councilman Means, Director of Public Works Hawley stated in a policy determined by the Planning Commission it states "the minimum intersection spacing on major arterial streets shall be 1/3 mile." It also states "driveway access on major arterial streets shall be kept to a minimum." Mr. Hawley stated this is the only policy he is aware of, adopted by the Planning Commission. When the plan for this development was first received five driveways were shown and after several meetings, with the developer, it was reduced to three, which was acceptable by staff. .56 Bakersfield, California, August 5, 1981 - Page 11 Councilman Means requested an informational memorandum from the Traffic Engineer regarding his idea of the appropriate number of entrances and exits that should be allowed along major arterials, regardless of whether it is a shopping center, etc. Upon a motion by Councilman Ratty, Appeal of Beacon Oil Company regarding decision of the Planning Commission that most easterly driveway be eliminated in front service station site on that certain property west corner of Ming Avenue and Ashe Road, was the decision of the Planning Commission, vote: Ayes: Noes: Councilmen Means, Payne, Ratty, Christensen Absent: the of a proposed located on the south-- granted, overturning by the following roll call Rockoff, Strong, None Councilman Barton Councilman Christensen stated he is really serious about revamping the Sign Ordinance to make it a workable tool or it should be repealed. He requested that the other Councilmen consider this matter and he will bring it up again at the meeting of August 26, 1981. EXECUTIVE SESSION Upon a motion by Councilman Christensen, the Council recessed to an Executive Session at 9:35 P.M. to consider Base Compensation Section of City Manager's Contract and Step Adjustment for City Attorney. The regular meeting was reconvened at ll:40 P.M. Councilman Strong made a motion that a 5% step increase in salary, retroactive to July 1, 1981, and fringe benefits granted to other Management Group employees, be granted to City Manager Philip Kelmar; his position be considered during any equity pay adjustments; and his salary be reviewed again on July l, 1982. Bakersfield, California, August 5, 1981 - Page 12 This motion carried by the following roll Ayes: Noes: Absent: Councilmen Means, Payne, Ratty, Rockoff, Christensen call vote: Strong, None Councilman Barton Councilman Strong made a motion that a step increase in Salary from Step 2 to 4, retroactive to July 1, 1981, and fringe benefits granted to other Management Group employees, be granted to City Attorney Richard Oberholzer; his position be considered during any equity adjustments; and his salary be reviewed again on July vote: Ayes: Noes: Absent: 1, 1982. This motion carried by the following roll ca21 Council, upon a motion by Councilman Christensen, adjourned at 11:43 P.M. Councilmen Means, Payne, Ratty, Rockoff, Strong, Christensen None Councilman Barton ADJOURNMENT There being no further business to come before the the meeting was MAYOR o~f e Cit~o~f~ Bakersfield, ATTEST: CITY CLERK and' Ex'Officio Clerk of the Council of the City of Bakersfield, California ma Calif. .68 Bakersfield, California, August 12, 1981 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., August 12, 1981. The meeting was called to order by Mayor Shell, followed by the Pledge of Allegiance and Invocation in the form of a prayer submitted by Monsignor Maurice Lahey of St. Church. Present: Absent: Francis Catholic The City Clerk called the roll as follows: Mayor Shell. Councilmen Payne, Ratty, Rockoff, Christensen, Means Councilman Strong SCHEDULED PUBLIC STATEMENTS Mr. Leo Whitecotton, ll5 Quincy Street, Barton, stated something has to be done about animals that their owners turn loose during the late afternoon and very early morning hours. Mr. Whitecotton requested that the contract with the S.P.C.A., for animal control, not be renewed until stricter regulations are placed on them for patrolling neighborhoods on a staggered or nonroutine basis. Mr. Jimmy Sanchez, 909 - llth Street, Wasco, member of the Greater Bakersfield Crime Commission and California Coalition to End Barrio Warfare, stated they have changed the date of their Rally to Septemb~r 20, 1981, in B~O~'~rk between the hours of 4:00 P.M. and 8:00 P.M., and requested that the park fees be waived or a donation of approximately $150.00 be made or the City Council endorse the event. Ms. Janet End Barrio Warfare, Flores, member of the California Coalition to explained the program for the Rally. Councilman Ratty suggested that the Council's endorsement of the Rally be used to request donations from local businessmen. Upon a motion by Councilman Christensen, Rally sponsored by the California Coalition to End Barrio Warfare, September 20, 1981, between the hours of 4:00 P.M. and 8:00 P.M., in Beach Park, was completely endorsed and supported by the City Council. Bakersfield, California, August 12, 1981 - Page 2 59 COUNCIL STATEMENTS Councilman Ratty, referring to a memorandum from City Manager Kelmar regarding Council Election Dates, requested that the Council review it during the next two weeks because he plans to bring this matter up at the meeting o£ August 26, 1981. REPORTS Councilman Barton, Chairman and Parking Committee, read Report No. Sales Ordinance, as follows: of the Business Development 5-81 regarding Sidewalk Chapter 10.24 of the Municipal Code provides that permits for "sidewalk sales" shall not be issued in excess of three per year and no such permit shall be valid for a period of time in excess of 24 hours. At the Council Meeting of June l?, 1981, the City Council referred to the Business Development and Parking Committee, a request from the Downtown Business Association, requesting the ordinance be changed so that "no more than three permits per year will be issued and no such permit shall be valid for a period of time in excess of 72 hours." The Public Works Director pointed out that it was important to plan construction projects in the downtown area at such time that the projects would not conflict with anticipated sidewalk sales. This committee recommended that construction projects, sales dates and permits be coordinated between the Public Works Department and the Downtown Business Association. Mr. Trainor (representing the Downtown Business Association) stated he would work with the Public Works Department on behalf of the Down- town Business Association so as not to have the sale dates conflicting with capital improvement construction projects in the downtown area. Therefore, this committee concurs with the request of the Downtown Business Association and recommends that the Sidewalk Sales Ordinance be changed as requested and this be considered first reading. Upon a motion by Councilman Barton, Business Development and Parking Committee Report No. 5-81 regarding Sidewalk Sales Ordinance, was accepted. First reading of an Ordinance of the Council of the City of Bakersfield amending Section 10.24.025 relating to Displaying Merchandise on Side- walks, changing the validity of the Permit from 24 hours to 72 hours. Bakersfield, California, August 12, 1981 - Page 3 First reading was considered given an Ordinance of the Council of the City of Bakersfield amending Section 10.24.025 relating to Displaying Merchandise on Sidewalks, changing the validity of the Permit from 24 hours to 72 hours. Councilman Rockoff, Chairman of the Budget Review and Finance Committee, read Report No. 15-81 regarding Refuse Collection Agreement and Rate Increase, as follows: On March 20, 1967, the City of Bakersfield entered into an agreement with Kern Refuse Disposal, Inc., to provide refuse collection service to those portions of the City not being served by the City itself. The referred to contract terminates on August 31, 1981. As provided in the contract, the contractor (Kern Refuse Disposal, Inc.), submitted a request to the Council to increase their charges to the City by 14% across-the-board effective July l, 1981. The City Council referred the request to the Budget Review and Finance Com- mittee for study and recommendation. The Public Works Department has analyzed, in great detail, the basis for the contractor requesting an increase of 14%. In addition, the Public Works Director has made a complete analysis of cost increases experienced by the City for refuse collection services. The analysis of the City's costs by the Public Works Director reflect an increase of 7.2%. In addition to reviewing all figures and cal- culations with City staff, this committee has met with representatives of the contractor to discuss the results of the cost analysis and accept any input and discussion the independent contractors had to offer. The representatives of the contractor presented a formula they had established as the basis for the requested rate increase, however, this committee feels it must rely on the operations and records of the City as a basis for determining the cost of providing refuse collection services. Of course, this committee recognizes that the City's figures must be adjusted to re£1ect differences in the cost of operations such as additional distance necessary to travel to the landfill site. In light of this consideration, this committee feels an increase of 8% for the months of July and August, 1981 (while negotiating a new contract) would be appropriate and justified. This committee suggested the contractor or representatives analyze the records which the Public Works Director used to arrive at the cost of providing refuse service by the City of Bakersfield and point out any areas of Bakersfield, California, August 12, 1981 - Page 4 expense the private sector may have over and above the City costs. Such analyses would then be taken into consideration in negotiating a new contract for the period commencing September 1, 1981. In conclusion, this committee recommends that the City Council: l) approve and grant a rate increase of 8% to the independent contractors for the period of July l, 1981 through August 31, 1981; and 2) authorize this committee to negotiate and recommend to the Council a con- tract between the City of Bakersfield and Kern Refuse Disposal, Inc., for refuse collection services for the period commencing September 1, 1981. Upon a motion by Councilman Rockoff, Budget Review and Finance Committee Report No. 15-81 regarding Refuse Collection Agreement and Rate Increase, was accepted; rate increase of 8% to the independent contractors for the period July 1, 1981 through August 31, 1981, was approved; and the Budget Review and Finance Committee was authorized to negotiate and recommend to the Council a contract between the City and Kern Refuse Disposal, Inc., for refuse collection services for the period commencing September l, 1981. Councilman Rockoff, Chairman of the Budget Review and Finance Committee, read Report No. 16-81 regarding City Parks - Alcoholic Beverage Consumption and Noise Ordinance, as follows On June 3, 1981, the City Council referred the matter of alcoholic beverages, noise, rowdiness and obscenities to this committee so that in the course of discussions regarding the Police Department budget, this committee could examine and recommend alternatives, propose additional alternatives, and determine any financial impact on the Police budget, which would result from those alternatives. While reviewing the Police budget, this committee recommended the use of existing funds appropriated for overtime to provide Police protection and Police manpower in the parks where the problems exist. Additionally, this committee requested the Police Department return to this committee with information on how this matter is being handled in other cities as well as requesting the Police Chief to make suggestions and recom- mendations on how the matter could be dealt with in the City of Bakersfield. Bakersfield, California, August 12, 1981 - Page 5 A subsequent meeting was held and after a lengthy discussion, reviewing several alter- natives and various ordinances from other cities, this committee concluded that an ordinance for the City of Bakersfield was desirable. The committee unanimously concurred that an ordinance should deal with the "noise" problem, however, the majority of the committee preferred to "prohibit" alcoholic beverages ~n City parks while one member, Councilman Means, preferred to "limit" alcoholic beverages by placing a curfew on alcoholic beverages in the parks. This committee reported to the City Council on July 29, 1981, however, the Council referred the matter back to the committee for further study and recommendation. This committee met with members of the staff, including field supervising officers from the Police Department. Numerous alternatives and problems were discussed at great length. The Police Officers pointed out that problems primarily exist on the weekends during evening hours. It was also noted the potential for an officer to be injured was considerably higher at night versus daylight hours. Such is the case, since an individual or individuals in a crowd are more likely to throw objects such as bottles, cans and rocks if they are less likely to be seen due to darkness. It was also pointed out, and this committee concurs, that multiple or split curfews, depending on the parks, would be difficult to enforce and most likely be confusing to the public. This committee was also advised that the matter o£ dealing with "drunks" was not a difficult matter to handle since these individuals do not generally congregate as a crowd and become rowdy. Most often they are intoxicated to the point of being unconscious or in no condition to resist arrest and are easily identifiable. While this matter is not necessarily a problem of difficulty or danger to the officer, it is a problem of available manpower. This committee thoroughly discussed the numerous possibilities and alternatives including the pros and cons of each. Pursuant to those dis- cussions, this committee has concluded and recom- mends that the City Council direct the City Attorney's Office to prepare an ordinance to: l) "prohibit" the possession of open containers and drinking of alcoholic beverages in not only City parks but upon any parkway, play- ground, or in any place open to the patronage of the public which premises are not licensed for the consumption of such liquor on the premises or 2) an ordinance which will "limit" the possession of open containers and drinking of alcoholic Bakersfield, California, August 12, 1981 - Page 6 beverages in City parks by establishing a curfew which will not allow the drinking of alcoholic beverages in the City parks before 10:00 a.m. nor after 6:00 p.m. As noted above, this committee concurs with the Police Department in that Alternate Number 1 or Alternate Number 2 would be manageable and en- forceable within the 1981-82 adopted budget. Additionally, this committee recommends that either ordinance selected by the City Council must contain a provision whereby "noise" created by car stereos, etc., will be confined to an area not to exceed 50 feet from the vehicle or other source. This committee further recommends that the referred to ordinance take effect January l, 1982, so as to allow sufficient time to inform the public. Upon a motion by Councilman Rockoff, Budget Review and Finance Committee Report No. 16-81 regarding City Parks - Alcoholic Beverage Consumption and Noise Ordinance, was accepted; and action on the report was deferred until the Council Meeting of August 26, 1981. CONSENT CALENDAR The following items were listed on the Consent Calendar: (a) Allowance of Claims Nos. 103 to 675, inclusive, in the amount of $433,038.05. (b) Claim for Damages from Angela Tashina Robinson, 920 - 10th Street, Bakersfield. (Refer to City Attorney) (c) Grant Deed from Orange Coast Developers Corporation providing a drainage basin for Parcel Map No. 5793, located on east side of South Union Avenue, on north side of Watts Drive. (d) Street Right-of-Way Deed from Church of God of Prophecy Holding Association pro- viding additional dedication on Latham Street for Tract No. 4049, located south of College Avenue, north of Morning Drive. (e) Street Right-of-Way Deed from Paul A. and Mary Galpin providing 15 feet of addi- tional dedication on Planz Road for Ranchef's Auto & Tractor Parks, located at northeast corner of Planz Road and Union Avenue. (f) Street Dedication from Frank A. and Virginia Collins and Francis Marion and Shirley J. Collins providing 5 feet of additional dedication along Highway 178 for Parcel Map No. 6288, located on south side of Highway 178 at Kern Canyon Road. f14 Bakersfield, California, August 12, 1981 - Page 7 (g) (h) (i) (J) (k) (1) (m) (n) Street Right-of-Way Deed from Orange Coast Developers Corporation for Parcel Map No. 5793, located on east side of South Union Avenue, on north side of Watts Drive. Quitclaim Deed from the City of Bakers- field to Parkhill Townhomes, Ltd., providing for relocation of Storm Drain Easement between Columbus Street and Freeway 178. Storm Drain Easement for new location has been accepted and recorded. Licenses to encroach on right-of-way belonging to the Arvin-Edison Water Storage District for construction of domestic water mains across the Arvin- Edison Canal at its intersections with Ming Avenue, White Lane and Gosford Road. These crossings will convey water to the developing areas within the Ashe Water Service Area, south of the State College. Map of Tract No. 4395 A and Improvement Agreement with U. S. Home Corporation for construction of improvements therein, located on east side of Dunsmuir Road, north of Business Center Drive. Improvement Agreement for Parcel Map No. 5793 with Orange Coast Developers for construction of improvements therein, located on east side of South Union Avenue, on north side of Watts Drive. Notices of Completion and Acceptance of Work for Tract No 4417, Contract No. 81-17 with Lencioni, Altergott and Yates Investments, located at Dunsmuir Road and East Commer- center Drive. Tract No. 4343, Contract No. 80-156 with Watson Division - U. S. Home Corporation, located at Barrington Street and Notting- ham Lane. Application for Encroachment Permit from Booth's T.V. & Appliance Company, 1931 "H" Street, for construction of an electrical service box, 14" deep x 30" wide x 72" high, to be attached to the wall of an existing building and encroaching 14" into the alley right-of-way at 1931 "H" Street. Application for Encroachment Permit from Rosa Diaz, 1317 Niles Street, for con- struction of a single stair-step, 4" high x 5' wide, 13 feet behind curb and gutter at 1317 Niles Street, which will encroach approximately 1 foot into the right-of-way. Bakersfield, California, August 12, 1981 - Page 8 '65 (o) Application for Encroachment Permit from Audrey Irene Fornas, 531 Beech Street, for construction of a four foot high maximum wood fence and posts to be located adjacent and behind sidewalk area at 531 Beech Street. (P) Contract Change Order No. 2 to Contract No. 81-79 with James G. Francis for re- surfacing portions of Truxtun and Chester Avenues and reconstructing a portion of Eye Street. This Change Order is necessary to excavate and pave a thin section of pavement to stabilize the base on the west side of Chester Avenue between 13th Street and California Avenue and to delete Item (4) Asphalt Rejuvenating and Item (6) Restore Inductive Loop Vehicle Detectors. This Change Order decreases the contract $3,O50.00. Upon a motion by Councilman Means, Items (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (1), (m), (n), (o) and (p) of the Consent Calendar, were adopted by the following roll call vote: Ayes: Councilmen Payne, Ratty, Rockoff, Barton, Christensen, Means Noes: None Absent: Councilman Strong ACTION ON BIDS Upon a motion by Councilman Rockoff, bid of Kern Turf Supply, in the amount of $12,562.64, for Annual Contract for Pipe and Sprinklers, was accepted and the Mayor was authorized to execute the contract. Upon a motion by Councilman Payne, usual bidding require- ments were dispensed with, in accordance with Section 5.20.060 of the Municipal Code, and the Finance Operations Manager was authorized to negotiate a price with Motorola Communications, not to exceed tile amount budgeted, for twenty-six portable radios for the Police Department. Upon a motion by Councilman Barton, low bid of P. R. Field, Inc., in the amount of $234,884, for Kern River First Point Metering Facility, was accepted, all other bids rejected and Bakersfield, California, August 12, 1981 - Page 9 the Mayor was authorized to execute the contract. The City's financial participation in the project is 1/6 of the project cost, or $39,147, with the balance being paid by other Kern River Interests. DEFERRED BUSINESS Adoption of Ordinance No. 2657 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield located in the proposed Rio Bravo Golf Course, south of Highway 178 and east of Mira- monte Drive. The application for this amendment was made by La Hacienda, Inc., and would change subject properties from an "A" (Agricultural) Zone to an R-2 (Limited Multiple Family Dwelling) Zone. Upon a motion by Councilman Rockoff, Negative Declaration and Ordinance No. 2657 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield located in the proposed Rio Bravo Golf Course, south of Highway 178 and east of Miramonte Drive, finding said zoning boundaries consistent with the General Plan, were adopted by the following roll call vote: Ayes: Councilmen Payne, Ratty, Rockoff, Barton, Christensen, Means Noes: None Absent: Councilman Strong Adoption of Ordinance No. 2658 New Series of the Counci~ of the City of Bakersfield amending Section 16.24.124 (d) of the Bakersfield Municipal Code relative to fees for construction of Planned Drainage and Sanitary Sewer Facilities pursuant to adopted plans, and referring to plans adopted for particular drainage and sanitary sewer areas. Upon a motion by Councilman Christensen, Ordinance No. 2658 New Series of the Council of the City of Bakersfield amending Section 16.24.124 (d) of the Bakersfield Municipal Code relative to fees for construction of Planned Drainage and Sanitary Sewer Bakersfield, California, August 12, 1981 - Page 10 Facilities pursuant to adopted plans, and referring to plans adopted for particular drainage and sanitary sewer areas, was adopted by the following roll call vote: Ayes: Councilmen Payne, Ratty, Rockoff, Barton, Christensen, Means Noes: None Absent: Councilman Strong Adoption of Ordinance No. 2659 New Series of the Council of the City of Bakersfield amending Section 12.32.020 (a) of the Bakersfield Municipal Code relative to License Agreement in lieu of Encroachment Permit for pipelines conveying petroleum products. Upon a motion by Councilman Payne, Ordinance No. 2659 New Series of the Council of the City o£ Bakersfield amending Section 12.32.020 (a) of the Bakersfield Municipal Code relative to License Agreement in lieu of Encroachment Permit for pipelines conveying petroleum products, was adopted by the following roll call vote: Ayes: Councilmen Payne, Ratty, Rockoff, Barton, Christensen, Means Noes: None Absent: Councilman Strong Adoption of Ordinance No. 2660 New Series of the Council of the City of Bakersfield adding Chapter 1.48 to the Municipal Code establishing and adopting rules for the operation of the City's Water System in the Fair- haven Water Service Area, amending Chapter 1.46 by adding Section 1.46.020 D, and amending Sections 1.46.120, 1.46.150 A (2) a., and 1.46.150 B., relative to Operational Rules for Ashe Water Service Area. Upon a motion by Councilman Barton, Ordinance No. 2660 New Series of the Council of the City of Bakersfield adding Chapter 1.48 to the Municipal Code establishing and adopting rules for the operation of the City's Water System in the Fairhaven Water Service Area, amending Chapter 1.46 by adding Section 1.46.020 D, and amending Sections 1.46.120, 1.46.150 A (2) a., and 1.46.150 B., Bakersfield, California, August 12, 1981 - Page ll relative to Operational Rules adopted by the following roll call vote: Ayes: for Ashe Water Service Area, was Councilmen Payne, Ratty, Rockoff, Means Barton, Christensen, Noes: None Absent: Councilman Strong NEW BUSINESS First reading of an Ordinance amend- ing Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of that certain property in the City of Bakersfield located on the west side of Fairfax Road, approximately .6 mile north of Panorama Drive, subject to the specified condition precedent. The application for this amendment was made by Michael J. Callagy and would change subject property from an R-1 (One Family Dwelling) Zone to an R-2 (Limited Multiple Family Dwelling), or more restrictive Zone. The Planning Commission approved the amendment and recom- mended same to the City Council, pursuant to Section 17.52.200 (Conditional Zoning), subject to the following condition: There shall be a recorded waiver of access from all lots adjacent to Fairfax Road. First reading was considered given to an Ordinance amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of that certain property in the City of Bakersfield located on the west side of Fairfax Road, approxi- mately .6 mile north of Panorama Drive, subject to the specified condition precedent. Deferral of action on Agreement between the City of Bakersfield and the Bakersfield S.P.C.A. for Animal Control. Councilman Ratty requested that staff ask the S.P.C.A. to consider Mr. Whitecotton's comments regarding patrolling for loose animals other than 8:00 A.M. to 5:00 P.M. Bakersfield, California, August 12, 1981 - Page 12 Councilman Ratty made a motion that action on agreement between the City of Bakersfield and the Bakersfield S.P.C.A. for Animal Control be deferred until the Council Meeting of August 26, 1981, in order to allow time for the staff to discuss patrol hours with the S.P.C.A. Councilman Christensen requested that staff secure from the S.P.C.A. the number of estimated dogs in the City and number of licenses issued. Councilman Means stated he hopes the Council will be supportive of this matter if the S.P.C.A. comes back and indicates that in order to patrol the additional hours it will mean an in- crease in cost. Councilman Ratty's motion that action on agreement between the City of Bakersfield and the Bakersfield S.P.C.A. for Animal Control be deferred until the Council Meeting of August 26, 1981, in order to allow time for the staff to discuss patrol hours with the S.P.C.A., was unanimously approved. Approval of Agreement with the Housing Authority of Kern County for recon- struction of a sewerline for Adelante Vista Housing Project, located on the southeast corner of Lakeview and California Avenues The complex was built in 1941 and the existing infra- structure is in need of repair. The project was part of the 1980-81 Community Development Block Grant Program. The Housing Authority estimates this activity at $50,000, which is within the amount budgeted for the project. Upon a motion by Councilman Rockoff, Agreement with the Housing Authority of Kern County for reconstruction of a sewerline for Adelante Vista Housing Project, located on the southeast corner of Lakeview and California Avenues, was approved and the Mayor was authorized to execute same. 7O Bakersfield, California, August 12, 1981 - Page 13 Adoption of Resolution No. 64-81 of the Council of the City of Bakers- field establishing Sewer Service User Charges and Fees for Fiscal Year 1981-82. This resolution sets fees and charges for sewer services provided by the City during the 1981-82 fiscal year. Upon a motion by Councilman Ratty, Resolution No. 64-81 of the Council of the City of Bakersfield establishing Sewer Service User Charges and Fees for Fiscal Year 1981-82, was adopted by the following roll call vote: Ayes: Noes: Absent: Councilmen Payne, Ratty, Rockoff, Barton, Christensen Councilman Means Councilman Strong Adoption of Resolution No. 65-81 of the Council of the City of Bakers- field providing for the collection of Sewer Charges by the County Tax Collector. This resolution authorizes the County Tax Collector to collect the Sewer User Charges, which are to be billed by the County at the time of billing for Property Taxes. Upon a motion by Councilman Ratty, Resolution No. 65-81 of the Council of the City of Bakersfield providing for the collection of Sewer User Charges by the County Tax Collector, was adopted by the following roll call vote: Ayes: Councilmen Payne, Ratty, Rockoff, Barton, Christensen Noes: Councilman Means Absent: Councilman Strong Deferral of action on suggested Council Ward Reapportionment Plan and Ordinance. Each Council Ward must be of equal population according to the latest Decennial Census. A suggested plan, including map and population totals by existing precincts was provided to the Council earlier for review. This suggested ordinance is being placed on the agenda at Councilman Barton's request. Bakersfield, California, August 12, 1981 - Page 14 Upon a motion by Councilman Barton, action on suggested Council Ward Reapportionment Plan and Ordinance, was deferred until the Council Meeting of August 26, 1981. Councilman Ratty stated he hopes the Council will be ready to make a decision on August 26th, and not opt for further delays. ADJOURNMENT There being no further business to come before the Council, upon a motion by Councilman Christensen, the meeting was adjourned at 8:55 P.M. MAYOR Bakersfield, ATTEST: CITY CLE~~an~x~O~ficio Clerk of the Council of the City of Bakersfield, California ma Calif. Bakersfield, California, August 12, 1981 Minutes of a budget session of the Council of the City of Bakersfield, California, held in the Council Chambers of City Hall at 8:55 P.M., August 12, 1981. The meeting was called to order by Mayor Shell, by the Pledge of Allegiance. followed The City Clerk called the roll as follows: Present: ~ayor Shell. Councilmen Barton, Means, Payne, Ratty, Rockoff Absent: Councilmen Christensen, Strong PUBLIC HEARING ON FEDERAL REVENUE SHARING. Mayor Shell declared the meeting open for public hearing on Revenue Sharing Funds. Sandra Bartlett/~-~er Seal Society, stated Kern County has the highest percentage ~f people (14%), with disabilities in the State. They have already open a Recreation/Rehabilitation Center for the Handicapped at 928 - 17th Street, that will help disabled persons socialize and will be functionally adaptable to whatever their needs are. Ms. Bartlett requested Revenue Sharing Funds, in the amount of $49,309, to help buy the equipment needed for this facility. Councilman Ratty made a motion that the request for Revenue Sharing Funds for equipment needed for the Recreation/ Rehabilitation Center for the Handicapped, be referred to the Intergovernmental Relations Committee or Budget Review and Finance Committee for study and recommendation. City Manager Kelmar stated the amount placed in the Capital Improvement Program budget was an estimate. Staff is in the process of closing the books and there is a possibility there might be additional funds, beyond those presently in the budget. The Council might want to authorize staff, if there are additional funds in the Revenue Sharing upon closing of the books, to appro- priate those in a Contingency Account within the Revenue Sharing, Bakersfield, California, August 12, 1981 - Page 2 so that priated. during the year approved projected could have funds appro- Councilman Barton requested that Councilman Ratty's motion include that this matter be referred to the Budget Review and Finance Committee for some recommendations regarding a policy for spending Revenue Sharing Funds for social organizations for a one time only expense to help get their projects started. Councilman Ratty amended his motion to refer all the requests tonight to the Budget Review and Finance Committee for study and recommendation, policy suggestions for spending Revenue Sharing Funds for social organization projects and funds be appropriated to a Contingency Account within the Revenue Sharing Funds. Councilman Ratty requested that his motion be held until everyone has been heard from. Mr. Bob Ashbeck, President of the Kern Chapter of the California Association of the Physically Handicapped, stated they fully endorse the Easter Seal concept and requested that the Council grant their request for Revenue Sharing Funds. Mr. Lou Lopez, representing the Bakersfield Chapter for Independent Living, introduced Tracy Kinset, Deaf Interpreter, who will be interpreting for Judy McMahon. Judy McMahon, Counselor & Case Manager for Bakersfield Center for Independent Living, outlined the purpose and intent of their organization and stated the Title 7 Grant they have requires that matching funds be secured. Mr. Tom Jarvis, Senior Senator of the newly formed California Senior Legislature, stated they received a $25,000 grant from the Levi Strauss Foundation, $24,000 from the State Departmen~ on Aging and $7,000 from private donations to help finance and defray costs of the 120 senior citizens who were elected to be Assemblymen and Senators. The California Commission on Aging is authorized to accept donations and he is present tonight to request Revenue Sharing Funds to help get this project started. This is a one time donation. 74 Bakersfield, California, August 12, 1981 - Page 3 Mr. Joe Quigley, a disabled person, requested that the Council appropriate Revenue Sharing Funds so they will have a place to go to. Irma Carson, Bakersfield resident representing the youth of this community and a group of concerned citizens and also a Sergeant in the Bakersfield Police Department, stated they are concerned with the problem of youths involvement in serious crime in this community, because we are not adequately meeting their needs in today's society. Mrs. Carson stated this need can be met by providing a place between the home, police and probation. Mrs. Carson requested that Revenue Sharing Funds, in the amount of $150,000, for a Youth Service Center, be set aside until a plan can be presented to the Council. Alice Stiles, Director of Opportunity for Industriali- zation Center of Kern County, addressed the Council regarding some of the problems youth is having with schools and education. Ms. Stiles requested Revenue Sharing Funds for a Youth Training Center. Mr. Bill Williamson, President of Kern Children's Service Center, spoke in support of the request made by Irma Carson and asked that the Council grant the Revenue Sharing Funds for the Youth Service Center. May Nix, worked with children for years, spoke in supporL of the concept presented by Irma Carson and Bill Williamson, be- cause it is the only answer to getting in and helping youth. Janet Luttrell, Easter Society's Development Center, Counselor and Teacher of Independent Living Skills to the Blind, requested Revenue Sharing Funds for the Braille Audio Library, which features books and music in braille and tapes that are rotated periodically to keep current. Mr. Rick Lewis, President of the Local Chapter of the National Federation of the Blind, requested Revenue Sharing Funds for the Braille Audio Library. Bakersfield, California, August 12, 1981 - Page 4 Councilman Ratty's amended motion to refer all the requests for Revenue Sharing Funds to the Budget Review and Finance Committee for study and recommendation and the Committee also make suggestions regarding policy for spending Revenue Sharing Funds for social organization projects, was unanimously approved. No one else in the audience indicated a wish to speak and Mayor Shell closed the public hearing. Mayor Shell declared a brief recess at 10:05 P.M. and reconvened the meeting at 10:10 P.M. CAPITAL IMPROVEMENT PROGRAM 1981-82 Assistant City Manager-Finance Higginbotham briefly out- lined the steps taken by the staff and Planning Commission which culminated in the preparation of the 10-Year Capital Improvement Program. regarding The following is a letter from the Planning Commission the Preliminary Capital Improvement Program 1981-82 Honorable Mayor Mary K. City Council City Hall 1501Truxtun Avenue Bakersfield, California Shell Honorable Mayor and Gentlemen: The Planning Commission herewith submits the Capital Improvement Program for the years 1981- 1991, inclusive, pursuant to Sections 64501 and 65402 of the State Planning and Zoning Laws. The Commission recommends approval of the 10- Year Capital Improvement Program, as submitted with the added recommendation: That the City Council consider capital expenditures in the downtown area for additional parking and better circu- lation. Respectfully submitted, PLANNING COMMISSION OF THE CITY OF BAKERSFIELD GERALD VAN HORN, CHAIRMAN Dated: May 21, 1981 Bakersfield, California, August 12, 1981 - Page 5 The Council and staff reviewed the Capital Improvement Program for Fiscal Year 1981-82 by categories, as follows: ENVIRONMENTAL SERVICES A total of $28,460,800 is proposed for improve- ments related to storm drains, sewers and waste- water treatment for the next ten years. Storm drains in the amount of $1,842,800, are being proposed. Two projects being requested for next year are of particular interest. The "M" Street storm drain between 21st and 23rd Streets is necessary to correct a serious drainage problem existing in the City, as portions of the street are totally under water during heavy rains. Modifications at the Landfair/Sundale Pump Station will eliminate the need for the two pumps since the modifications will provide drainage by gravity flow. Sewer projects total $6,060,000, the most signi- ficant being the East Niles-Morning Drive Intercepter sewers which amount to $4,900,000. These main trunk lines will serve the growing Northeast areas. It is intended that as developers connect to these lines, the City will be reim- bursed through connection charges. Wastewater treatment projects amount to $20,558,000, the major one totaling $20,000,000 for the expansion of Wastewater Treatment Plant #3, which serves the southwest area. Director of Public Works Hawley stated six storm drain projects have been recommended for the 1981-82 fiscal year. As noted in the City Manager's transmittal letter it was necessary to eliminate two projects, Fairview Road Drainage and Kingsland Avenue Storm Drain, due to lack of General Tax Revenue funds. RECREATION AND CULTURAL SERVICES A total of $8,072,550 is proposed for improve- ments related to parks and the Civic Auditorium. In addition to various improvements to the existing parks throughout the City, the City contemplates new park sites totaling $6,550,000. Anticipated financing will be through the use of $1,900,000 of State and Federal funds and $4,650,000 of Improvement and Maintenance District Funds. Civic Auditorium improvements consist of property acquisition for future needs of additional parking. Director of Public Works Hawley stated as noted in the City Manager's transmittal letter due to lack of funds, General Bakersfield, California, August 12, 1981 - Page 6 ¸77 Tax Revenue projects for parks have been deleted, except those which are tied in with State Park Bond Act funds. Councilman Rockoff expressed his objections to the University Avenue Park Improvements being deleted, because it was his understanding it would be completed by September 15, 1981. Councilman Rockoff stated he would like the $17,500.00 funded to complete that park. City Manager Kelmar stated this item was deleted at this point in time and will be reviewed next year if adequate funds are available. It is the Council's prerogative to complete this park in place of some other project. PUBLIC SAFETY SERVICES A total of $1,759,300 is proposed for improve- ments related to the Public Safety Services of the Police and Fire Departments over the next ten years. The Police Department requests include improve- ments at the Police Pistol Range for safety and noise purposes now that the surrounding area is beginning to be utilized and the replacement of lost parking due to the construction of the Truxtun Avenue extension. The staff examined the alternatives of using the facilities of the Kern County Sheriff's Department and the Cali- fornia Highway Patrol as well as relocating our own facility, however, found the existing Pistol Range, with the proposed improvements, to be the most economically and operationally feasible solution. Also, additional parking for police vehicles will be needed in the future behind the Police Building. Fire Department improvements include the re- maining two phases at Station #1. The construc- tion of squad room and cooking facilities was budgeted in 1979-80, however, as some of these funds were utilized in order to meet the bid for the construction of the new station in the Southwest and due to the rise in construction costs, an additional $91,000 is being requested for completion in 1981-82. Community Development funds are being utilized to make necessary improvements to the fire main system in the Southeast to improve fire protection. A future fire station in the Rio Bravo area is another significant request. Assistant City Manager-Finance Higginbotham stated the $260,000 has been recommended for enclosing the Police Pistol Range due to noise and safety reasons. Nothing will be done with that Bakersfield, California, August 12, 1981 - Page project until the Kern River Land Use Study has been completed, as the City has received an offer to purchase the Police Pistol Range, which would involve relocation. City Manager Kelmar stated the staff is evaluating the moving of this facility, if economically feasible, to the area north of the City Corporation Yard, which is within the Kern River Land Use Area. Director of Fire & Development Services Needham explained the three phases involved in remodeling and upgrading the main Fire Station located at 21st and "H" Streets. DEVELOPMENT AND TRANSPORTATION SERVICES A total of $24,135,260 is proposed for improve- ments related to street, street lighting, traffic signals, and parking for the next ten years. The street related projects total $22,900,260. Of that amount, proposed financing will include $3,279,760 of Revenue Sharing Funds. Also, $129,760 has been included to convert existing street lights to energy efficient high pressure sodium vapor lights. A total of $575,000 is included to acquire property as it becomes available to complete the Civic Center Plan. Director of Public Works Hawley stated at the time the Preliminary Draft of the 10-Year Capital Improvement Program was developed the Public Works Department recommended to the Planning Commission that the City adopt a policy which would require developers to pay 100% of the cost of major arterials. The policy was adopted by the Council on July 29, 1981. Mr. Hawley presented each Council- man with the following copy of the results of that policy: DEVELOPMENT & TRANSPORTATION SERVICES STREET AND TRAFFIC IMPROVEMENTS FISCAL YEAR 1981-82 The following projects are recommended for deletion from the 1981-82 Fiscal Year Budget, as a result of the change in City policy re- garding funding of major streets in new developments. 1. Fairview Road Construction $ 50,000 (Hughes Lane to South "H" Street) - Transportation Funds - SB 325 Bakersfield, California, August 12, 1981 - Page 8 79 2. Ming Avenue Construction $201,000 (Gosford Road to Old River Road) - Transportation Funds SB 325. 3. La Costa Street Construction 19,000 (San Miguel to University Avenue) - Transportation Funds - SB 325. 4. University Avenue Construction 16,000 (La Costa to Panorama Drive) - Transportation Funds - SB 325. 5. Gosford Road Construction 100,000 (Ming Avenue to Pacheco Road) Revenue Sharing Funds. $386,000 The following projects are recommended for addi- tion to the 1981-82 Fiscal Year Budget, in lieu of the above deleted projects: 1. Panorama Drive Resurfacing $ 92,000 (Mt. Vernon Avenue to Wenatchee Avenue) - Revenue Sharing Funds. Union Avenue Resurfacing (SPRR to Golden State Avenue) - Transportation Funds - SB 325 Revenue Sharing Funds. 28,000 8,000 3. Wilson Road Reconstruction 112,000 (Hughes Lane to Castro Lane) Transportation Funds SB 325. 4. Auburn Street Reconstruction 72,000 (Oswell Street to Highland Court) - Transportation Funds - SB 325. 5. South Chester Avenue Resurfacing 74,000 (Sunset Spur RR to Planz Road) - Transportation Funds - SB 325. $386,000 Additional funds are available for street improve- ments in Fiscal Year 1981-82 because actual revenue received in Fund 35 (Transportation Fund) was greater than earlier estimates and there were some savings from prior year projects in Fund 33 (Gas Tax). These funds should be placed in the Council Contingency Fund for Capital Improvements. The following is a recommended priority listing of projects for these additional funds. Bakersfield, California, August 12, 1981 - Page 9 NA~ AND LOCATION OF PROJECT South Real Road Resurfacing (Wilson Road to Planz Road). Sundale Avenue Reconstruction (Bermuda Street to New Stine Road). White Lane Construction (Arvin-Edison Canal to Gosford Road). Auburn Street Reconstruction (Oswell Street to Highland Court). South Chester Avenue Resurfacing (Planz Road to South City Limits). 21st Street/Carrier Canal Reconstruction. South "H" Street Resurfacing (Planz Road to 200' south of White Lane). Auburn Street/Oswell Street Signal Modification. "H" Street Mast Arm Signal Modificaton. Columbus Street/Oswell Street Signal Modification. Mt. Vernon Avenue/Columbus Street Signal Modi- fication. Stine Road Resurfacing (Park Circle to Ming Avenue). Beech Street Resurfacing (24th Street to "F" Street). 30th Street Reconstruction (Union Avenue to "Q" Street). Loma Linda Drive Resurfacing (Union Avenue to Thelma Drive). Fjord Street Resurfacing (New Stine Road to Valhalla Drive). Flower Street Resurfacing (Baker Street to Owens Street). South "H" Street Resurfacing (Ming Avenue to Planz Road). City Manager Kelmar stated rather than not utilizing these additional funds until the following fiscal year, staff proposed that they be placed in a Council Contingency Account with the appropriate funds and during the year, as projects are ready, Council could authorize withdrawal. This money could be used this year to do another $700,000 or $800,000 worth of street projects. Bakersfield, California, August 12, 1981 - Page 10 Councilman Ro~ko~f pointed out that the Auburn Street reconstruction, betwee'~?.0swell Street and Highland Court ($72,000), has been listed two times. Director of Public Works Hawley stated it should not have been listed the second time. Upon a motion by Councilman Means the priority list is to include channelization at each end of E1Prado Drive, between South "H" Street and South Chester Avenue. SUPPORT SERVICES A total of $1,160,000 is proposed for improve- ments to City Hall and the Corporation Yard for the next ten years. City Hall improvements include a new cooling tower to replace the original cooling tower which is over 25 years old. Also included are needed improvements to the parking lot in the rear of City Hall to the railroad tracks. Requests for the Corporation Yard include the construction of women's restroom facilities in the equipment and lunch room buildings. Storage mezzanines in the equipment and crafts building will provide needed storage space. Councilman Rockoff indicated that he intends to request the Budget Review and Finance Committee to consider recommending the completion of University Avenue Park if Revenue Sharing Funds are available after the books are closed. Councilman Rockoff stated staff had told him this park would be completed in September and he, in turn, told this to constituents. Now he finds himself with egg on his face and expressed his public disapproval of this situation. Adoption of Resolution No. 66-81 of the Council of the City of Bakers- field approving and adopting the Operating and Capital Improvement Budgets for Fiscal Year 1981-82, as modified. Upon a motion by Councilman Ratty, Resolution No. 66-81 of the Council of the City of Bakersfield approving and adopting the Operating and Capital Improvement Budgets for Fiscal Year 1981- 82, as modified, was adopted by the following roll call vote: Ayes: Noes: Absent: Councilmen Barton, Means, Payne, Ratty, None Councilmen Christensen, Strong Rockoff Bakersfield, California, August 12, 1981 - Page ll ADJOURNMENT There being no further business to come before the Council, upon a motion by Councilman Barton, the budget sessions were adjourned at 10:55 P.M. MAYOR of f Bakersfield, Calif. ATTEST: CLER~ x Of~ CITY lerk of the Council of the City of Bakersfield, California ma Bakersfield, California, August 26, 1981 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., August 26, 1981. The meeting was called to order by Mayor Shell, by the Pledge of Allegiance and Invocation by Mayor Shell. The City Clerk called the roll as follows: Present: Mayor Shell. Councilmen Ratty, Rockoff, Strong, Absent: None followed Barton, Christensen, Means, Payne The minutes of the regular meetings of July 29, 1981, August 5, 1981, and August 12, 1981, and budget session of August 12, 1981, were approved as presented. SCHEDULED PUBLIC STATEMENTS Erika Harris and Yogi Bear of the Ice Capades extended invitations to the Mayor and Council members to attend the 1981 edition of the Ice Capades at Civic Auditorium. Linda Pesi, Manager of the Sands Inn, 701 Union Avenue, addressed the Council regarding the prostitution problem on Union Avenue, Chief Price stated he would be glad to meet with any of the business people and motel owners regarding this problem. CORRESPONDENCE Upon a motion by Councilman Means, communication from Merle A. Harthorn, et al, filing a complaint regarding the sweeping of the Oak Lane Shopping Center Parking Lot, located at the corner of Oak Street and Chester Lane at 3:00 A.M., creating excessive noise and dust, was received and referred to staff for appropriate action. Upon a motion by Councilman Christensen, communication from Cal Haggard, Retired Fire Chief, dated August 14, 1981, thanking the Council for assuming the increased cost of retired employees Blue Cross premiums, effective July 1, 1981, was received and placed on file. Upon a motion by Councilman Payne, communication from Cornerstone Engineering, Inc., dated August 17, 1981, withdrawing Bakersfield, California, August 26, 1981 - Page 2 their request for abandonment of Fortune Street (Tract No. 4060) from Panama Lane to Tomlinson Street, was received and referred to the Planning Commission. Upon a motion by Councilman Payne, communication from Rod Harman, Chairman of the Parking and Traffic Committee of Westwind Condominiums, 1335 Aquarius Court, dated August 14, 1981, regarding lack of traffic signs and curb markings within the Westwind Condominiums complex, was received and referred to the Public Works Department. Upon a motion by Councilman Rockoff, communication from Bakersfield Association for Retarded Citizens (B.A.R.C.) dated August 18, 1981, thanking the Council and staff for their support of B.A.R.C. and its programs through consideration of purchasing the property at 430 - 4th Street, was received and placed on file. Upon a motion by Councilman Ratty, communication from Klassen Corporation, dated August 24, 1981, regarding expansion of the office building on the southeast corner of 21st and Oak Streets and reconstruction of the existing 21st Street crossing was received and referred to the Water and City Growth Committee. Upon a motion by Councilman Christensen, communication from the League of California Cities, dated August 21, 1981, regarding the designation of voting delegate for the League's annual conference, was received. Upon a motion by Councilman Means, Councilman Barton was designated as voting delegate and Councilman Christensen was designated as voting alternate for the League of California Cities Conference in San Francisco, October 17-20, 1981. Upon a motion by Councilman Payne, communication from Assemblyman Don Rogers, dated August 24, 1981, expressing his support to the Bakersfield Center for Independent Living, Inc. in its application to the Bakersfield City Council for Federal Revenue Sharing Funds, was received and referred to the Budget Review and Finance Committee. Bakersfield, California, August 26, 1981 - Page 3 Sgt. Irma Carson, member of the Bakersfield Police Department and member of the Board of Education, Bakersfield City School District, presented for the Council's perusal a brochure, "Proposal - The Turning Point," on behalf of the youth of Bakers- field for a proposed Youth Service Center. On July 29, 1981 the City Council approved an agreement with Tommy Townsend, dba Calico Construction, for the purchase of ten lots as a part of the New Construction Incentives Program. Tommy Townsend stated three of the lots have already been sold and requested the Council to approve the substitution of an addi- tional three lots. Upon a motion by Councilman Payne, the Council approved substituting three lots for the three that are no longer available, subject to the approval of those lots by HUD. COUNCIL STATEMENTS Councilman Ratty brought up the matter of Councilmanic election dates, referring to the City Manager's memorandum to the Mayor and Council dated August 7, 1981, and made a motion that the Council instruct the City Attorney to draw up a Charter amend- ment and bring it back for Council approval. Councilman Means stated there are a number of issues that have not been worked out and made a substitute motion that the matter of Councilmanic election dates be referred to the Budget Review and Finance Committee. This motion passed unanimously. Councilman Barton nominated William Jing, 2730 - 3rd Street, to fill the vacancy on the Miscellaneous Departments Civil Service Board, due to the resignation of Mac D. Culver, and would ask for the Council's vote at the next meeting. Councilman Ratty announced his intention to reappoint Clarence Westra, 4200 Boise Appeals Board and would ask meeting. Street, No. 12a, to the Business Tax for the Council's vote at the next REPORTS Councilman Rockoff, Chairman of the Budget Review and Finance Committee, read Report No. 17-81 regarding Council Policy for the Use of Revenue Sharing Funds, as follows: 86 Bakersfield, California, August 26, 1981 - Page 4 At the Public Hearing before the City Council on August 12, 1981, the Council received various requests for Revenue Sharing Funds. After hearing all those who wished to speak, the City Council referred the requests to the Budget Review and Finance Committee for study and recommendation. This committee met to discuss the requests, how- ever, feels the Council has been to use Revenue Sharing Funds for capital projects which serve all City residents. This City Council has pur- posely avoided the use of Revenue Sharing Funds for ongoing operations so as to avoid the continued dependency on Revenue Sharing Funds in the event the Revenue Sharing program was discontinued. It was further noted by this committee that the City Council had established a similar policy with the use of Community Development Block Grant Funds. That is, the Council has authorized the use of CD funds for "one time" requests. As this committee further discussed the matter, we feel the City Council may wish to expand the use of available Revenue Sharing Funds. However, this committee feels it is important the Council establish policy on how Revenue Sharing Funds are to be used in the future. This committee has several suggestions on the policy the City should follow and would request input from the entire City Council with regards to establishment of policy. First, as noted above, it has been the policy of the City to use Revenue Sharing Funds for capital projects that serve all of the residents of the City of Bakersfield. Such having been the policy, this committee feels that the continuance of this practice be given the "highest priority." This committee feels an expansion of this concept would allow, as Revenue Sharing Funds are available, for the Council to provide funding to organizations requesting Revenue Sharing Funds for "one time" requests. That is, this committee recommends the Council not approve the use of Revenue Sharing Funds to finance ongoing operations. In addition, when such projects will be providing services to County as well as City residents, this committee recom- mends the Council approve funding providing the County provides funding in a proportionate and significant amount. Further, this committee feels it is important the City Council thoroughly review all requests and make certain any funding approved will be adequate to assure the projects of being "viable" projects. Depending on the availability of Revenue Sharing Funds, this could possibly result in some requests not being funded. In conclusion, this committee recommends that prior to reviewing individual requests for Revenue Sharing Funds, the City Council establish a policy for the use of Revenue Sharing Funds and the Council policy incorporate the above suggestions. Upon a motion by Councilman Rockoff, Budget Review and Finance Committee Report 17-81 regarding Council Policy for the Use of Revenue Sharing Funds was accepted. Bakersfield, California, August 26, 1981 - Page 5 Councilman Strong moved that the contents of the report be established as Council policy. Joe Lewis, 4000 Dana Street, addressed the Council sug- gesting that Revenue Sharing Funds be used to expand the Police Department for more personal protection of lives and property. Councilman Strong's motion that the contents of the report be established as Council policy was unanimously approved. Councilman Rockoff, Chairman of the Budget Review and Finance Committee, read Report No. 18-81 regarding the Kern River Component of the Open Space Element, as follows: The City Council recently directed staff to present Council with a draft of a Kern River Component of the Open Space Element, covering all lands within the River corridor from the mouth of the Kern Canyon to Interstate 5. This committee has thoroughly reviewed the points brought forth from the meetings between City, Kern County Planning, and Kern County Council of Governments staffs. The points discussed included: 1) The Kern River corridor consists of bo.th City and County lands, which lends itself to the concept of a combined effort in formu- lating the Open Space policy along the River. 2) Kern Cog is vitally interested and would be a funding source in light of the multi- jurisdictional facet for this project. 3) Existing staffs are not able to completely facilitate a study. As such, a qualified consultant firm is needed to assist in the data collection, field work, and basic prelimi- nary formulation of the text in conjunction with close supervision by staff personnel of both City and County Planning Departments. The land use policy recommendations of the study of the Kern River corridor would include mainly those lands within the flood plain primary and secondary. Presently, a study is underway as commissioned by the Water Board to study their recently adopted deve- lopment plan for ground water recharging. The Water Board's report covers the area from Chester Avenue to Interstate 5 on the uses of City owned property only. The pro- posed study being review by this committee would include only those lands not considered in the study presently underway for the Water Board. In fact, the Water Board's study would be attached to the Council's study to form a document which will completely cover the Kern River corridor as directed by the City Council. This plan will assure that there will be no duplicated effort in this study. Bakersfield, California, August 26, 1981 - Page 6 The cost of the study is estimated to be $25,000. The City's portion would be $5,000 with the County and Kern Cog funding the balance. In conclusion, the Budget Review and Finance Com- mittee recommends the City Council authorize the appropriation of $5,000 from the Council Contin- gency Account for the study and direct staff to proceed with a draft Request for Proposal to be returned to the City Council for approval prior to proceeding further. After considerable discussion, Councilman Rockoff made a motion, including additions to the motion requested by Council- man Means, to accept the report and authorize the appropriation of $5,000 from the Council Contingency Fund for the study, direct the staff to proceed with a draft Request for Proposal to be returned to the City Council for approval prior to proceeding further, and request the consultant who is hired to advise the Council of the expected time line and continue to keep the Council abreast on their progress so the Council could assist in expe- diting the matter. This motion passed unanimously. Councilman Rockoff, member of the Auditorium-Recreation Committee, read Report No. 14-81 regarding a Request to Waive Rental Fee on Softball Diamonds, as follows: On August 5, 1951, the City Council referred to the Auditorium-Recreation Committee a request from Gary R. Madsen, Chairman of Muscular Dystrophy Softball Tournament, requesting that rental fees for the softball diamonds at Patriots Park be waived on September 5 and 6, 1981. This committee has reviewed Mr. Madsen's request and recognizes the contribution of the softball tournament on behalf of Muscular Dystrophy, however, as with similar requests from other organizations and agencies, it has been the policy of the Council not to waive fees for the use of City facilities. It was noted a large number of nonprofit, community, charitable, and public agencies rent City facilities on a year round basis for a variety of functions. This committee also noted the rental fees merely cover the costs of the related facility. Pursuant to this policy, this committee would recommend the City Council deny the request of Mr. Madsen. Upon ~. motion by Councilman Rockoff, Auditorium- Recreation Committee Report No. 14-81 was accepted and the recom- mendations approved. City Manager Kelmar reported on the current status of the downtown shopping center. Bakersfield, California, August 26, 1981 - Page 7 In the middle of June the Council approved a recommenda- tion of the Redevelopment Agency to enter a 60-day implementation agreement for the purposes of negotiating a new Joint Development Agreement with John S. Griffith Company in connection with the downtown shopping center. On August 11 an agreement was reached on the economic terms of the Joint Development Agreement. A special meeting of the Agency was held on August 14 for the purpose of requesting a45-day extension in order to allow the Attorney sufficient time to prepare a Joint Development Agreement. The City Manager said the reason he recommended that extension was the fact that the economic terms had been agreed upon. He further stated there would be a special meeting of the Redevelopment Agency and the City Council on September 30 for a formal presentation of that Joint Development Agreement, and the Council would have an opportunity to review that Agreement prior to the date of the meeting. Sometime between October 15 and October 30 another special meeting will be called for the purpose of formally acting on that agreement. Further, the Agency approved up-dating the Environmental Impact Report on the downtown shopping Center, and it will be com- pleted sometime in the middle of October. Councilman Means expressed his concern regarding the financial ability of the shopping center itself and prior to the September 30 meeting he would like to meet with the city's finan- cial consultants, along with any of the Council members who might have any questions personally. CONSENT CALENDAR The following items were listed on the Consent Calendar: (a) Allowance of Claims Nos. 676 to 944, inclusive, in the amount of $480,666.55. (b) Claim for Personal Injuries from Mitzi Jo Armstrong, 1300 Miller Street, Bakers- field. (Refer to City Attorney) (c) Claim for Damages from Otto James Perry, 302 "E" Street, Bakersfield. (Refer to City Attorney. 9O Bakersfield, California, August 26, 1981 - Page 8 (d) (e) (f) (g) (h) (i) (J) (k) Claim for Damages and Personal Injuries from Floyd De Zarn, 1000 West Columbus Street, Space 135 A, Bakersfield. (Refer to City Attorney) Claim for Damages and Personal Injuries from Nora De Zarn, 1000 West Columbus Street, Space 135 A, Bakersfield. (Refer to City Attorney) Claim for Damages and Personal Injuries from Lee Bernie Stallings, 824 "P" Street, Bakersfield. (Refer to City Attorney) Street Right-of-Way Deed from Tenneco Realty Development Corporation to the City of Bakersfield, and Quitclaim Deed from the City of Bakersfield to Tenneco Realty Development Corporation. Street Right-of-Way Deed from Tenneco West, Inc., providing additional dedi- cation at the southeast corner of Coffee Road and Truxtun Avenue. Map of Tract No. 4344, consisting of 7 lots on .22 acres of land, located on the northeast corner of 18th and "B" Streets. The subdivision is being developed by Adolf W. Schwart. Application for Encroachment Permit from Park West, a Limited Partnership, The Penstar Group, General Partner, 1991 North Gateway Boulevard, Fresno, Cali- fornia. Application for Encroachment Permit from Adrian and Steve Ochoa, 1412 E1 Toro Drive, Bakersfield. Notices of Completion and Acceptance of Work on the following: (i) Tract No. 3892 (A), Contract No. 77-185 with Cutbirth-Sill Develop- ment Company, located at Bernard Street and Sill Place on East Hills Drive. (2) Tract No. 3892 (B), Contract No. 78-30 with Cutbirth-Sill Develop- ment Company, located at Bernard Street and Sill Place on East Hills Drive. (3) Tract No. 3892 (F), Contract No. 78-30 with Cutbirth-Sill Develop- ment Company, located at Bernard Street and Sill Place on East Hills Drive. (4) Tract No. 4277 (3), Contract No. 81-20 with Tenneco Realty Develop- ment Corporation, located at White Lane and Lilly Drive. Bakersfield, California, August 26, 1981 - Page 9 (d), (q), vote: (e), (r), (m) (n (P) (q) (r) (s) (t) (u) Upon (f), (s), (5) Tract No. 4277 (4), Contract No. 81-21 with Tenneco Realty Develop- ment Company, located at Olympia Drive and Gallup Drive. (6) Construction of Beach Park Irrigation System, Contract No. 81-92 with Black Oak Nursery, Inc. (7) Resurface portions of Truxtun Avenue and Chester Avenue and reconstruct a portion of Eye Street, Contract No. 81-79 with James G. Francis. (8) A. C. Pavement on portions of South "H" Street, Fairview Road and White Lane, Contract No. 81-78 with James G. Francis Contractor, Inc. Plans and Specifications for Curb and Gutter Construction in the Lowell Addition Area, Phase II, Community Development Project, consisting of construction of curbs, gutters, cross gutters and wheelchair ramps in the area bounded by California Avenue, 4th Street, "N" Street and "T" Street. Plans and Specifications for resurfacing White Lane, between Hughes Lane and the City Limits. Plans and Specifications for resurfacing portions of California Avenue, New Stine Road and Ming Avenue. Plans and Specifications for resurfacing portions of Ming Avenue, Wilson Road, Real Road and Stine Road. Plans and Specifications for construction of Traffic Signals at Stockdale Highway and Gosford Road. Request from Davis Loustalot for annexation of property located on the southeast corner of Stine Road and Hosking Road extension, con- taining approximately 160 acres of land. License to Encroach on right-of-way belonging to the Arvin-Edison Water Storage District. Request from Lawton Powers, Inc., for extension of time to complete improvements in Parcel Map No. 5365, located between 40th Street and West Columbus Street, east of Chester Avenue. Resolution of Intention No. 949 of the Council of the City of Bakersfield declaring its intention to order the vacation of a 33 foot Alley in Block 351 between "L" Street and "M" Street, north of 14th Street, and setting the date of hearing for September 16, 1981. a motion by Councilman Means, Items (a), (b), (c), (g), (h), (i), (j), (k), (1), (m), (n), (o), (p), (t), and (u) were adopted by the following roll Bakersfield, California, August 26, 1981 - Page 10 Ayes: Councilmen Ratty, Rockoff, Strong, Barton, Christensen. Means, Payne Noes: None Absent: None ACTION ON BIDS Upon a motion by Councilman Ratty, low bid of The Suppliers, Inc., in the amount of $6,168.14, for Barricades and Flashers was accepted and all other bids rejected. Upon a motion by Councilman Christensen, low bid of Western Electric and Engineering, in the amount of $4,234.44, for Transmitters, Receivers and Indicators was accepted and the other bid rejected. Upon a motion by Councilman Payne, usual bidding pro- cedures and requirements were dispensed with, in accordance with Section 5.20.060 of the Municipal Code, and the Finance Operations Manager was authorized to negotiate a price not to exceed the budgeted amount of $7,900 for One Used Car for Police Department Undercover Work. Upon a motion by Councilman Ratty, bid of B.C. Chemical for Annual Contract Water Treatment Chemicals, in the amount of $9,168.62, was accepted and the Mayor was authorized to execute the contract. Following discussion, upon a motion by Councilman Rockoff, low bid of Hollowform, Inc., for 500 Refuse Containers, in the amount of $50,350, was accepted and all other bids rejected. DEFERRED BUSINESS Agreement between the City of Bakers- field and the Bakersfield S.P.C.A. for Animal Control. Action on this item was deferred from the Council Meeting of August 12, 1981, to allow staff time to discuss patrol hours with the S.P.C.A. Sue Hoy, Director of the Society for Prevention of Cruelty to Animals, stated that night patrol for dogs was totally unreal- istic, as the dogs cannot be seen in the dark and the S.P.C.A. does not have the right to remove a dog from anyone's property Bakersfield, California, August 26, 1981 - Page 11 without the property owner's permission. Further, an animal control agency in the United States that service. there isn't provides this Councilman Means suggested having someone on duty from 6:30 to 8:30 A.M. and also between 4:30 and 8:30 P.M. Ms. Hoy suggested people telephone the S.P.C.A. if there is a problem with dogs during the night and they will go out. Extending the patrol hours would require a 3/4 or full-time animal control officer and a dispatcher, and more staff means more money. the S.P.C.A. cannot agree to patrolling the streets after However, dark. Councilman Barton moved that this matter be referred to the Budget Review and Finance Committee for a report at the next Council Meeting, September 9, and the previous contract be extended until that date. Councilman Christensen stated he thought he had asked staff to determine from the S.P.C.A. the number of dogs that are licensed~ compared to the number that are unlicensed. Ms. Hoy indicated there is one dog per person in the City of Bakersfield, or 109,010, and of these approximately 8,000 are licensed. The problem is that the vaccination clinics that come to town twice a year will run 300 to 400 dogs through in one day and do not require them to buy a license. Councilman Christensen requested that staff and the Budget Review and Finance Committee discuss the matter of unlicen- sed dogs and include their findings in the report. Councilman Barton's motion to refer the matter of the S.P.C.A. contract to the Budget Review and Finance Committee for a report back at the next Council Meeting, September 9, the previous contract be extended until that date, and the report from the Committee to include findings regarding the matter of unlicensed dogs passed unanimously. Report No. 16-81 from the Budget Review and Finance Committee regarding City Parks - Alcoholic Beverage Con- sumption and Noise Ordinance, and first reading of Ordinance. 94 Bakersfield, California, August 26, 1981 - Page 12 This report was read and accepted at the meeting of August 12, 1981 and action on the recommendations contained in the report was deferred until tonight's meeting. Councilman Rockoff made a motion that the City Attorney be directed to prepare an Ordinance to prohibit the possession of open containers and drinking of alcoholic beverages, not only in City parks, but on any parkway, playground, or any place open to the patronage of the public which premises are not licensed for the consumption of such alcoholic beverages on the premises, and to include in that Ordinance a provision whereby noise created by car stereos, etc. be confined to an area not to exceed fifty feet from the vehicle or other source. Councilman Strong expressed his appreciation to Coun- cilman Rockoff for giving him the opportunity to express his views on this Ordinance, inasmuch as it was necessary for him to be out of the City at the time the report was read. He stated he recognized the problem probably as well or better than anyone in the City inasmuch as he has operated across the street from one of the problem parks for the last fourteen years. Councilman Strong continued to say that in his experience over the years there has been no problem in the park he mentioned prior to 11:00 P.M. and proposed that the Council pass an Ordinance imposing a curfew on all parks at that hour. This should take care of 90% of the problem, with the exception of one park, and, hope- fully, we can get together with some of the people who frequent that park and see if we can work out a solution. If after that it appears the Police Department is still experiencing some problems, Councilman Strong said he would support the recommendations in the report. Councilman Strong offered a motion that the Council impose a curfew in all nineteen City parks from 11:00 P.M. to 7:00 A.M., defer action on implementing the recommendations of the Budget Review and Finance Committee Report 16-81 until February 1, 1981, and incorporate the recommendations of the Committee as stated in their report regarding noise limits. Bakersfield, California, August 26, 1981 - Page 13 95 City Attorney Oberholzer, in response to a question posed by Councilman Rockoff, stated that the present curfew in all parks is midnight to 5:00 A.M. Joe Lewis, 4000 Dana Street, complained to the Council regarding the littering of beverage bottles in the parks and on private property. Bernice Munoz addressed the Council, stating not all people could afford to go to some of the more expensive places of business nor do they have a nice backyard where they can have a beer, and she feels the matter of prohibiting drinking in the parks is a bit discriminatory. Councilman Strong stated if what he has suggested tonight doesn't help correct the problem, then this Council is empowered to pass the no-drinking ordinance. He stated the problem of rowdiness emanates from crowds, as he has observed over the last fourteen years. The problem that exists in passing this kind of all-inclusive measure. an 11:00 P.M. curfew have been assessed and one park doesn't warrant After the effects of the Police Department still feels an Ordinance prohibiting drinking in parks is warranted, he would support that action. J. Michael Baker, a Bakersfield resident and taxpayer, objected to the non-drinking Ordinance, as it would deprive him and his friends of the use of the parks as they wish. Councilman Means said he would support Councilman Strong's motion as an Ordinance to ban the drinking of all alcoholic beverages in parks is overboard. Councilman Payne stated he would support Councilman Rockoff's motion. In response to a question from Councilman Christensen as to the response time from the Police Department when they receive a telephone call that there are drunks in a park in the daytime, Police Chief Price indicated this would depend upon the workload and the priority the call is given, anywhere from fifteen to forty minutes. However, if there were officers patrolling and they observed drunks in a park, they would take action without a call. 96 Bakersfield, California, August 26, 1981 - Page 14 Councilman Christensen asked how many additional police- men it would take in order to clean up the park and littering problems and establish law and order in the City and requested Chief Price to report to the Council at the next meeting regarding how many police officers would be needed to enforce the Ordinance and laws now on the books. Councilman Christensen further stated that if the present laws are not going to be enforced he intends to make a motion at the next meeting that they be taken off the books. Chief Price stated that in order to maintain complete law and order in the parks it would require the stationing of officers in the nineteen City parks for a major'part of the day. Alan Stramler stated he has followed the matter of drinking in public and not many people disagreed with the restric- tion of drinking on streets, alleys, and sidewalks, but by pro- hibiting alcoholic beverages in parks and all other public places not licensed, the citizens of Bakersfield are deprived of their rights. Councilman Strong said all he is asking, through his motion, is to give the curfew a chance and give the Police Depart- ment an effective tool to solve the problem. He pointed out that the Police Department itself says that crowds form just around 11:00 P.M. in California Avenue Park. The Police Department has also indicated that dealing with drunks is not a difficult matter to handle as these individuals do not generally congregate as a crowd. He went on to say that he feels his proposal will do more to dissipate crowds than anything else, and it would be effective in eighteen of the nineteen parks in Bakersfield. In response to a question by Councilman Christensen, City Attorney Oberholzer stated that public drunkenness is covered by the Penal Code. Councilman Strong's motion that the Council impose a curfew in all nineteen City parks from 11:00 P.M. to 7:00 A.M., defer action on implementing the recommendations of the Budget Review and Finance Committee Report 16-81 until February 1, 1982, and incorporate the recommendations of the Committee as stated in 97 Bakersfield, California, August 26, 1981 - Page 15 their report regarding noise limits passed by the following roll call vote: Ayes: Noes: Absent: Councilmen Strong, Barton, Christensen, Means Councilmen Ratty, Rockoff, Payne None First reading was considered given an Ordinance to impose a curfew in all nineteen City parks from 11:00 P.M. to 7:00 A.M., defer action on implementing the recommendations in the Budget Review and Finance Committee Report 16-81 until February 1, 1981, and incorporate the recommendations of the Committee as stated in their report regarding noise limits. Councilman Christensen said he would like to see the Ordinance carried out to the exact detail between its adoption and the end of January so that the Council will have a true evaluation of whether the curfew will be effective, and if it is not effective then the Council will have to take sterner action. First reading of an Ordinance of the Council of the City of Bakersfield Amending Ward Boundaries. Each Council Ward must be of equal population according to the latest Decennial Census. A suggested plan including map and population totals by existing precincts was provided to the Council earlier for review. This suggested Ordinance has been placed on the Agenda at Councilman Barton's request. Action on this item was deferred from the Council Meeting of August 12, 1981. Councilman Barton stated at the Council Meeting of July 29 he submitted a suggested plan for reapportionment of ward boundaries. Since then he has had input from other Councilmen and he is submitting a second proposed map. Mayor Shell called a recess at 9:55 P.M. to give the Councilmen an opportunity to study the map. The Council Meeting reconvened at 10:05 P.M. Councilman Means presented another proposed ward boundary map for Council consideration. In response to a question by Councilman Strong, City Attorney Oberholzer explained that the Charter requires that the 98 Bakersfield, California, August 26, 1981 - Page 16 wards be reapportioned after the Federal Decennial Census to get as nearly as possible equal population. The situation the Council is faced with is that the County of Kern is requesting reappor- tionment before the June 1980 election so they can redesignate ~. the precincts. The County originally requested the City's reap- portionment in the month of August, but as of today they indicated they would need the new boundaries by September 15. If the City does not reapportion, a lawsuit could be instituted to force the reapportionment. After further questions by Councilman ~trong, City Attorney Oberholzer stated that under the Equal Population Rule reapportionment is based on the Federal Decennial Census. The City does have the prerogative to do it on its own volition after the five-year census. Councilman Strong questioned whether the Council can reapportion the wards of its own volition if it was felt it was necessary. City Attorney Oberholzer said he believes the Council's powers are limited by the Charter and would not allow the Council to redistrict the wards; however, he would have to research the matter. Referring to possible annexations in the future, City Attorney Oberholzer said there were no guidelines in the Charter; however, the areas would have to be contiguous to the present wards. The population in the annexed area would have to be allo- cated as closely as possible to the surrounding wards to achieve equality. Councilman Strong questioned whether there was any legislation that the ward boundaries shall take on a certain shape or appear to be reasonable. City Attorney Oberholzer stated our Charter does not provide that; our Charter provides that the boundaries be estab- lished to be as equal in population as is reasonable. State law says topography, contiguity, geography, and areas of interest should be considered in drawing ward boundaries. The courts have said a controlling factor is equal population. Bakersfield, California, August 26, 1981 - Page 17 99 Councilman Strong mentioned gerrymandering, and City Attorney Oberholzer said he would have to look at all kinds of issues with respect to gerrymandering. Councilman Barton moved that the ward map he presented this evening be accepted by the Council. Councilman Means questioned whether the Supreme Court defines "reasonable." Also would the symmetry in the design of the wards be considered? City Attorney Oberholzer stated he has never seen a deciation of the Supreme Court addressing symmetry. The Court might consider wards that are split by topography and geography to be unreasonable. Responding to Councilman Means, City Attorney Oberholzer stated what the courts have ruled so far. With respect to ethnic minorities, a map which eliminates the ability of the people to participate in the political process would be susceptible to challenge. There is no requirement to maximize the vote of any particular special interest or minority group. Councilman Means pointed out that his map leaves the ward boundaries about the same as they are now; there are minor changes. Under Councilman Barton's proposal over 30,000 people would be moved from their current wards to other wards, he said, and in his proposal there would be about 16,000. He claimed that Councilman Barton's changes were purely political. Councilman Christensen questioned the contiguity of Ward One where two sections are joined by Brundage Lane. City Attorney Oberholzer stated contiguity is a suggested consideration in ward reapportionment. The courts look to equal population; if contiguity is not possible, then you don't have contiguity. The area of the sewer farm in Ward One could not be a separate ward as the popula- tion there is not large enough. Councilman Means stated he would vote against Councilman Barton's proposal and his motion as it was obvious under Councilmall Barton's proposed map he is designing wards that will allow for strong Republican representation. IO0 Bakersfield, California, August 26, 1981 - Page 18 Councilman Barton's motion that the ward map he presen- ted this evening be accepted by the Council passed by the following roll call vote: Ayes: Noes: Councilmen Ratty, Rockoff, Barton, Payne Councilmen Strong, Christensen, Means First reading was considered given an Ordinance amending the ward boundaries. Upon a motion by Councilman Strong, the Council agreed unanimously that all three ward maps presented to the Council would be made part of the permanent record. Councilman Means stated he specific map ready tomorrow, but the less than one-tenth of one per cent. intends to have a final, figures would probably change Adoption of Ordinance No. 2661 New Series of the Council of the City of Bakersfield Amending Section 10.24.025 Relating to Displaying Merchandise on Sidewalks, Changing the Validity of the Permit from 24 Hours to 72 Hours. This Ordinance was given first reading at the Council Meeting of August 12, 1981. Upon a motion by Councilman Barton, Ordinance No. 2661 New Series of the Council of the City of Bakersfield Amending Section 10.24.025 Relating to Displaying Merchandise on Sidewalks, Changing the Validity of the Permit from 24 Hours to 72 Hours was adopted by the following roll call vote: Ayes: Councilmen Ratty, Rockoff, Strong, Barton, Christensen, Means, Payne Noes: None Absent: None Adoption of Ordinance No. 2662 New Series Amending Title Seventeen of the Municipal Code of the City of Bakersfield by Changing the Land Use Zoning of that certain property in the City of Bakersfield located on the west side of Fairfax Road, approximately .6 mile north of Panorama Drive, subject to the Specified Condition Precedent. Bakersfield, California, August 26, 1981 - Page 19 The application for this amendment was made by Michael J. Callagy and would change the subject property from an R-1 (One Family Dwelling) Zone to an R-3 (Limited Multiple Family Dwelling) Zone. The Planning Commission approved the amendment and recommended same to the City Council, pursuant to Section 17.52.200 (Conditional Zoning), subject to the following condition: There shall be a recorded waiver of access from all lots adjacent to Fairfax Road. Upon a motion by Councilman Rockoff, Negative Declaration and Ordinance No. 2662 New Series Amending Title Seventeen of the Municipal Code of the City of Bakersfield by Changing the Land Use Zoning of that certain property in the City of Bakersfield located on the west side of Fairfax Road, approximately .6 mile north of Panorama Drive, subject to the Specified Condition Precedent, and find said zoning consistent with the General Plan, were adopted by the following roll call vote: Councilmen Ratty, Rockoff, Strong, Barton, Christensen, Means, Payne None None Ayes Noes Absent: NEW BUSINESS First reading of an Ordinance Amending Title Seventeen of the Municipal Code of the City of Bakersfield commonly known as 4701 through 4711 (odd only) La Mirada Drive, 200 through 313 Pauma Court, 100 through 222 Durham Court, and 4900 through 4912 Durham Avenue. Application for this amendment was made by Tenneco Realty Development Corporation and would change the subject properties from an "A" (Agricultural) Zone to an R-1 (One Family Dwelling) Zone. The Planning Commission recommended approval of this amendment by the City Council. First reading was considered given an Ordinance Amending Title Seventeen of the Municipal Code of the City of Bakersfield commonly known as 4701 through 4711 (odd only) La Mirada Drive, Bakersfield, California, August 26, 1981 - Page 20 200 through 313 Pauma Court, 100 through 222 Durham Court, and 4900 through 4912 Durham Avenue. First reading of an Ordinance of the Council of the City of Bakers- field amending Section 17.12.020 of Title 17 of the Municipal Code changing the Land Use Zoning of that certain property located on the northwest corner of Wilson Road and Real Road, approving the Preliminary Development Plan and making findings in connection with P.C.D. Zone (Conditional) The application for this amendment was made by Vons Realty Company and would change the subject property from an R-1 (One Family Dwelling) Zone to a P.C.D. (Planned Commercial Deve- lopment) Zone, consisting of 69,731 sqare feet of commercial lease space. The Planning Commission recommends, and this Ordinance will impose, a condition that installation of curb, gutter and paving on Real Road be completed within ninety days of first reading of the Ordinance. Pursuant to Municipal Code Section 17.52.200, only if such improvements are installed within such 90 day period will the Ordinance return to the Counci~ Agenda for adoption. City Attorney Oberholzer mentioned that the Planning Commission had recommended, when they sent this to the Council, that there be a condition on the Preliminary Development Plan that speed bumps be located at 100 foot intervals behind all of the shops. Speed bumps are a real liability and he recommends that the City not impose speed bumps on a property owner because that might put the liability back on the City. He would recommend that when this Ordinance comes back to the Council for second reading that a condition be included that vehicular speed behind the shops shall be limited to ten miles per hour instead of requiring speed bumps. First reading was considered given an Ordinance of the Council of the City o£ Bakers£ield amending Section 17.12.020 of Title 17 of the Municipal Code changing the Land Use Zoning of that certain property located on the northwest corner of Bakersfield, California, August 26, 1981 - Page 21 10:5 Wilson Road and Real Road, Plan and making findings in connection with P.C.D. tional). approving the Preliminary Development Zone (Condi- Community Development Block Grant Grantee Performance Report 1980-81 to be submitted to HUD for review. Pursuant to Section 104 (d) of the Housing and Community Development Act of 1974, each jurisdiction receiving Community Development Block Grant funds must report to HUD on the progress of activities funded for the past program year. This report must be submitted to HUD by August 31, 1981. Upon a motion by Councilman Christensen, Community Deve- lopment staff was authorized to submit Community Development Block Grant Grantee Performance Report for HUD review. Agreements between American Sign and Indicator Corporation, The Bakersfield Californian, American National Bank and City of Bakersfield. These agreements provide for the acceptance of the dona- tion by The Bakersfield Californian and American National Bank of the marquee at the Civic Auditorium and for the responsibilities of each party to the agreement. Under the terms of the agreement, The Bakersfield Californian and American National Bank will donate the marquee to the City and will provide maintenance and insurance for ten years. During the ten year period the City will allow The Bakersfield Californian and American National Bank each one advertising panel and six 15-minute advertisements each day. Upon a motion by Councilman Christensen, the agreements were approved and the Mayor was authorized to execute. City Manager Kelmar stated that the members of the Citizens Advisory Committee for the California Avenue Neighborhood Park Facility are desirous of obtaining a sign to advertise the activities at the center. He requested that the Council allow, upon installation of the new marquee at the Civic Auditorium, the transfer of the present sign to the California Avenue Neighborhood Park Facility. Upon a motion by Councilman Strong, the Council unanimously approved the transfer of the sign. 104 Bakersfield, California, August 26, 1981 - Page 22 Adoption of Ordinance No. 2663 New Series, levying upon the full taxable value o£ the taxable property in the City of Bakersfield, except that area known as the Rio Bravo Annexation, a percentage rate of taxation upon each dollar of valuation for the Fiscal Year beginning July 1, 1981 and ending June 30, 1982. This Ordinance represents the Property Tax levies for the 1981-82 Fiscal Year for the outstanding general obligation bond issues of the City of Bakersfield (1966 Municipal Improvement Bonds, Series A and Series B). Upon a motion by Councilman Payne, Ordinance No. 2663 New Series, levying upon the full taxable value of the taxable property in the City of Bakersfield, except that area known as the Rio Bravo Annexation, a percentage rate o£ taxation upon each dollar of valuation for the Fiscal Year beginning July 1, 1981 and ending June 30, 1982, was adopted by the following roll call vote: Ayes: Councilmen Ratty, Rockoff, Means, Payne Noes: None Absent: None Strong, Barton, Christensen, Authorization to dispose of Surplus Property at 2215 East Brundage Lane. The City of Bakersfield owns a residence located adjacent to the Old Dog Pound site, which does not meet building and health regulations and cannot be occupied without substantial improvements being made. The Public Works Department recommends this building be declared surplus and authorization be given to the Purchasing Officer to dispose by sale or by demolition. Upon a motion by Councilman Strong, the building at 2215 East Brundage Lane was declared Surplus Property and the Purchasing O£ficer was authorized to dispose. Bakersfield, California, August 26, 1981 - Page 23 ADJOURNMENT There being no further business to come before the Council, upon a motion by Councilman Christensen, the meeting was adjourned at 10:50 P.M. ATTEST: of the City of Bakersfield, California mp Bakersfield, California, September 9, 1981 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., September 9, 1981. The meeting was called to order by Mayor Shell, followed by the Pledge of Allegiance and Invocation in the form of a prayer submitted by David Newquist, Pastor of the First Presbyterian Church. The City Clerk called the roll as follows: Present: Mayor Shell. Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne, Ratty Absent: None Minutes of the regular meeting of August 26, 1981 were approved as presented. SCHEDULED PUBLIC STATEMENTS Mr. Joe Ducato, Chairman of the Greater Bakersfield Crime Commission, introduced several members of that Commission and stated it was formed on May 1, 1981, by Mayor Shell and Kern County Supervisor Tackett; and also requested that the Council submit ideas on how to prevent crime. Mr. Ducato announced that the Rally to help prevent Barrio Warfare will be held in Beach Park on Sunday, September 20, 1981, from 4:00 P.M. to 8:00 P.M., and invited the Mayor and Council to attend. Mr. Jimmy Sanchez thanked the Council for their positive response to the Rally on prevention of Barrio Warfare. Mrs. Paula Freeborn addressed the Council about out of control dogs and requested that an ordinance be adopted that pro- vides for citing and fining owners. fines be as follows: First Offense Second Offense Third Offense The offender should be given after that time, if it is not paid, it Mrs. Freeborn suggested that $ 10. oo 50.00 500.00 30 days to pay the fine and should be made a lien against Bakersfield, California, September 9, 1981 - Page 2 107 their property taxes. If a renter is cited the fine should be collectible against their wages or source of income. Once the fine is collected it should be forwarded to whatever governing agency is handling the dog problem. It would be unfair to raise the cost of licenses, vaccinations or other assessments on dog owners who obey the laws. The owners of any dog found outside their yard during a quarantine period should be fined no less than $1,000.00. Dogs who have attacked someone and need to be quarantined should be picked up during this period and the owners fined $10.00 per day for their care, until the animal's health is determined. This animal is apparently out of control, never have the right to reclaim it. or dealt with accordingly. therefore, the owner should The dog should be adopted out Councilman Christensen stated there are enough laws and licensing procedures on the books, that, if enforced, would cure the problem. Councilman Rockoff reported that the Budget Review and Finance Committee met with staff and Mrs. Hoy, representing the S.P.C.A., to reach an agreement or understanding that in the new contract with the S.P.C.A. problems brought before the Council would be solved. There are various problems, one of which is financial. The cost of evening patrol cannot be met without some additional funding. If the Licensing Law could be enforced, more than sufficient money would be available to provide night patrol. However,' there is more than money involved. How do you knock on someones door in the middle of the night and ask if it is their dog. Someone with a gun might be trying to defend their property and if the patrol went onto private property serious injuries could occur. There are various problems that do not obviously meet the eye when the Council tries to solve the problem of roving dogs. The contract with the S.P.C.A. can be extended on a month to month basis, and that is the way it is being handled at this point. The Council has requested staff to bring ordinances and Bakersfield, California, September 9, 1981 - Page 3 ideas from other cities that can be used to either enforce existing laws or adopt additional ordinances in order to solve the problem. The Budget Review and Finance Committee will continue to hear this to, hopefully, come up with a solution. The problems that have to be addressed are the mechanics of patrolling in the nighttime hours when most of the offenses occur. Councilman Rockoff requested that Mrs. Freeborn furnish the Council with a copy of her suggestions, so they can be used by the Budget Review and Finance Committee as input. Mrs. Jessie Tappy read a prepared statement regarding the problem with unleashed dogs. Mrs. Tappy also submitted a statement from Gerald J. and Margaret A. Haberman regarding an experience they had with a roving dog in their neighborhood. Councilman Means read a statement from Ella M. Wheeler who was attacked by two dogs and required hospitalization. CORRESPONDENCE Upon a motion by Councilman Rockoff, communication from Mr. Don Winlack, Secretary of the Bakersfield Host Lions Club, dated August 20, 1981, supporting the Bakersfield Center for Independent Living, Inc., was received and referred to the Budget Review and Finance Committee. Upon a motion by Councilman Rockoff, communication from Hr. Victor Salcido, Manager State of California Employment Develop- ment Department, dated August 25, 1981, expressing the Agency's ongoing support for the program and activities of the Bakersfield Center for Independent Living, Inc., was received and referred to the Budget Review and Finance Committee. Upon a motion by Councilman Ratty, communication from Mr. Thomas S. Kelly, Management Agent for the Stonepine Condominium Association, dated August 25, 1981, requesting City's consideration for the construction of a facility to allow southbound vehicles on Ashe Road to make a left turn into the 1700 Ashe Road address portion of Stonepine Condominiums, was received and referred to the Public Works Department. IO0 Bakersfield, California, September 9, 1981 - Page 4 Upon a motion by Councilman Rockoff, communication from Mr. Charles W. Thompson, City Administrator, City of Huntington Beach, California, dated August 28, 1981, regarding participation in the Municipal Homeowners Insurance Program, was received and referred to the Budget Review and Finance Committee. Upon a motion by Councilman Payne, communication from Leonard T. Harris, 7904 Calle Espada, dated September 3, 1981, requesting a General Plan Amendment for commercial use of property bounded on the south by proposed Paladino Drive and approximately ~ mile east of Fairfax Road (under construction), was received and referred to the Planning Commission for study and recommendation. Upon a motion by Councilman Christensen, communication from Marguerite Arnold, 625 Arvin Street, Bakersfield, dated September 5, 1981, requesting that owners of unleashed dogs be fined, was received and referred to the Budget Review and Finance Committee. COUNCIL STATEMENTS Upon a motion by Councilman Ratty, Clarence Westra, 4200 Boise Street, No. 12a, was reappointed as a member of the Business Tax Appeals Board, term expiring July l, 1984. Upon a motion by Councilman Barton, 3rd Street, was appointed to fill the vacancy, William Jing, 2730 - created by the resignation of Mac D. Culver, on the Miscellaneous Departments Civil Service Board, term expiring December 31, 1982. REPORTS Director of Fire and Development Services Needham read a report regarding Appeals Board for Access Requirements for Physically Handicapped, as follows: On March 25, 1981, the City Council received a letter from Mr. Brad Henderson at the local chapter of the American Institute of Architects which addresses the need for an Appeals Board regarding access requirements for the handi- capped. As stated in Mr. Henderson's letter, it would be beneficial to establish a review committee "to hear written appeals brought by any persons regarding action taken by the Building Depart- ment in enforcement of the requirements" of the Health and Safety Code regarding "access 1 if) Bakersfield, California, September 9, 1981 - Page 5 to public accommodations by physically handi- capped persons." In the attachment headed "Privately Funded Accommodations, Health and Safety Code," it suggests a five-member appeals board consisting of two physically handicapped persons, two persons experienced in construction, and one public member. This option is allowable under State law and staff concurs with this process. The attached resolution is constructed to facilitate such an appeals board. Staff recommends this matter be taken under submission by the Council and referred to the appropriate City Council committee for study and recommendation. Upon a motion by Councilman Means, the matter of an Appeals Board for Access Requirements for Physically Handicapped, was referred to the Budget Review and Finance Committee for study and recommendation. Director of Fire and Development Services Needham read a report regarding Request for Proposal for a Kern River Component to the Open Space Element, as follows: The Mayor and Council members received a draft copy of a request for proposal to prepare a Kern River component to the Bakersfield Metropolitan Area General Plan - Open Space Element in this week's Council Meeting information packet. This document was drafted in conjunction with County Planning and Kern COG staffs. City staff requests each Council member review the Draft R.F.P. by Wednesday, September 16th. After the 16th, staff will contact each Council member for their comments and suggested changes. The document will then be redrafted and presented at the following Council Meeting for consideration. Staff requests the Council authorize this pro- cedure in this matter. Upon a motion by Councilman Strong, report from Staff regarding Request for Proposal for a Kern River Component to the Open Space Element, was accepted; and the procedure as outlined in the report, was authorized. CONSENT CALENDAR The following items were listed on the Consent Calendar: (a) Allowance of Claims Nos. 945 to 1197, inclusive, in the amount of $615,683.74. (b) Claim for Personal Injuries from R. B. Vandernoor, 1430 Truxtun Avenue, Suite 777, Bakersfield, on behalf of Carroll Edward Griggs. (Refer to City Attorney) Bakersfield, California, September 9, 1981 - Page 6 11'l (c) Claim for Damages from Helen Jean Mahler, 4817 Stockdale Highway, Bakersfield. (Refer to City Attorney) (d) Claim for Personal Injuries from Eric Criswell, by and through his Guardian, ad Litem, Sharon K. Criswell, 1713 MeMay Street, Bakersfield. (Refer to City Attorney) (e) Notice of Completion and Acceptance of Work on upgrading Fire System on South Owens Street, between East 9th and East 10th Streets, Contract No. 81-13 with California Water Service Company. (f) Notice of Completion and Acceptance of Work on fencing north bank of the Carrier Canal, between Kern High School Farm and Saddleback Drive, Contract No. 81-85 with Alcord Fence Company. (g) Notice o£ Completion and Acceptance of Work on Tract No. 4265, Contract No. 81-28 with Tenneco Realty Development Corporation, located at Truxtun Avenue and Quailridge Drive. (h) Notice of Completion and Acceptance of Work on the Kern River Canal Spreading Ground Turnout Structure, Contract No. 81-36 with Genkev Construction. (i) Quitclaim Deed from Tenneco Realty Develop- ment Corporation providing fee title for an existing canal easement southeast of the intersection of 21st Street and Oak Street. (J) Plans and Specifications for 2nd Floor millwork and moveable walls (partitions) for 1st and 2nd Floors, South Wing Addition to City Hall. (k) Contract Change Order No. i to Contract No. 81-82 with Safety Electric Corporation for the California Avenue Traffic Signal at Mervyn's. This Change Order is necessary to correct problems with curb alignment and pavement grade on the median that were created by the project. The Change Order increases the contract $802.00, and the total contract price as a result of this increase is $95,665.00. Per Agreement No. 81-5, Mervyn's has agreed to pay the additional cost upon final accounting of the project. Upon a motion by Councilman Means, Items (a), (b), (c), (d), (e), (f), (g), (h), (i), (j) and (k) of the Consent Calendar, were adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Means, Payne, Ratty Noes: None Absent: None 112 Bakersfield, California, September 9, 1981 - Page 7 ACTION ON BIDS Upon a motion by Councilman Barton, low bid of Boise Cascade, in the amount of $8,868,45, for Annual Contract #10583 for Office Supplies, was accepted, the other bid rejected and the Mayor was authorized to execute the contract. Upon a motion by Councilman Ratty, all bids for construction and modification of Traffic Signal Systems at the intersections of Coffee Road and Truxtun Avenue, Wilson and New Stine Roads, and Ming Avenue and Castro Lane, were rejected and the staff was authorized to re-evaluate and readvertise the project. Upon a motion by Councilman Christensen, low bid of Valley Tree and Construction, in the amount of $10,550, for demolition of various structures, was accepted and all other bids rejected. Upon a motion by Councilman Ratty, low bid of Cal-Police Equipment Company, in the amount of $6,919.68, for Aero Dynic Light Bar Systems, was accepted and all other bids rejected. Upon a motion by Councilman Payne, usual bidding require- ments were dispensed with, in accordance with Section 5.20.060 of the Municipal Code, and the Finance Operations Manager was authorized to negotiate a price with Motorola Communications, not to exceed the amount budgeted, for portable radios, charges and power boosters for the Fire Department. Upon a motion by Councilman Payne, bid of Downs Grading and Excavating, in the amount of $70.00 per hour, for Annual Contract for Operated Crawler Hoe for the Agricultural Water Department, was accepted and the Mayor was authorized to execute the contract. DEFERRED BUSINESS Adoption of Ordinance No. 2664 New Series of the Council of the City of Bakersfield amending Ward Boundaries. Councilman Ratty made a motion to adopt the ordinance amending Ward Boundaries. Councilman Means offered a substitute motion that the adoption of the ordinance amending Ward Boundaries be deferred for Bakersfield, California, September 9, 1981 - Page 8 11a two weeks to see if some consensus of the Council can be reached, because he feels the proposed boundaries change the shapes of the wards more than necessary. It also makes it difficult, if looking at future annexations, to determine where precincts will go. Councilman Strong stated Councilman Means' point is very important and asked some questions of the staff regarding annexations. City Manager Kelmar stated there was a letter in the Council's packets from Quad Consultants indicating that the Cost- Revenue Model will soon be finalized. Councilman Barton stated there has been a lot of discussion over the past few weeks regarding the plan he submitted and the one submitted by Councilman Means, and questions have been ask regarding certain statistics. Councilman Barton then read "Population and Racial Composition of Ward 1," which was prepared by Advance Planning on August 31, 1981, and "Persons of Spanish Origin in Ward 2," which was prepared by Advance Planning on September 8, 1981. Councilman Barton also read the Kern County Democratic Central Committee's "City Council Ward Demographics for the Current Plan, Barton's Plan and Democratic Plan." After discussion, Councilman Means' substitute motion that the adoption of the ordinance amending Ward Boundaries be deferred for two weeks, failed to carry by the following roll call vote: Ayes: Noes: Absent: Councilmen Strong, Christensen, Means Councilmen Rockoff, Barton, Payne, Ratty None Upon a motion by Councilman Ratty, of the Ward Boundaries was cutoff, by the following roll debate on the amending call vote: Ayes: Councilmen Rockoff, Barton, Payne, Ratty Noes: Councilmen Strong, Christensen, Means Absent: None 114 Bakersfield, California, September 9, 1981 - Page Ayes: Noes: Absent: Upon a motion by Councilman Ratty, Ordinance No. 2664 New Series of the Council of the City of Bakersfield amending Ward Boundaries, was adopted by the £ollowing roll call vote: Councilmen Rockoff, Barton, Payne, Ratty Councilmen Strong, Christensen, Means No action taken on Agreement between the City of Bakersfield and the Bakersfield S.P.C.A. for Animal Control. Councilman Rockoff stated this agreement was the basis for a verbal report made earlier tonight and the City is presently operating on a month to month contract with the S.P.C.A. City Attorney Oberholzer stated there is no need to take action tonight because the existing contract will continue to be in force on a month to month basis. Adoption of Ordinance No. 2665 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 4701 through 4711 (odd only) La Mirada Drive, 200 through 313 Pauma Court, 100 through 222 Durham Court and 4900 through 4912 Durham Avenue. The application for this amendment was made by Tenneco Realty Development Corporation and would change subject properties from an "A" (Agricultural) Zone to an R-1 (One Family Dwelling) Zone. The Planning Commission recommended approval of this amend- ment by the City Council. Upon a motion by Councilman Means, Negative Declaration and Ordinance No. 2665 New Series amending Title Seventeen of the Municipal Code by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known 4701 through 4711 (odd only) La Mirada Drive, 200 through 313 Pauma Court, 100 through 222 Durham Court and 4900 through 4912 Durham Avenue, finding None Bakersfield, California, September 9, 1981 - Page 10 said zoning consistent with the General Plan, were adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Means, Payne, Ratty Noes: None Absent: Councilman Christensen NEW BUSINESS Approval of Amendment to Agreement No. 79-121 with John Gordon for administration of School Crossing Guard Program. Upon a motion by Councilman Barton, Amendment to Agreement No. 79-121 with John Gordon for School Crossing Guard Program, was approved and the Mayor was authorized to execute same. Adoption of Resolution No. 67-81 of the Council of the City of Bakers- field establishing a Records-Retention Schedule for the Police Department and approving destruction of records in accordance therewith. This resolution adopts a procedure for the annual destruction of certain records pursuant to Government Code Section 34090 et seq. The City Attorney has given his written consent for the destruction of the records. Upon a motion by Councilman Payne, Resolution No. 67-81 of the Council of the City of Bakersfield establishing a Records- Retention Schedule for the Police Department and approving destruction of records in accordance therewith, was adopted by the following roll call vote: Ayes: Councilmen Rockoff, Strong, Barton, Christensen, Payne, Ratty Noes: None Absent: Councilman Means Approval of Agreement with Donald Renfro & Associates, AIA Architects, for preparation of necessary plans to remodel the BARC facilities for a Senior Citizens Center. Nine proposals were received from architects wishing to prepare the necessary plans for the remodeling of the BARC facility 116 Bakersfield, California, September 9, 1981 - Page located at 530 - 4th Street. The total cost of the remodeling project is estimated to be $250,000, including architectural fees, which is within the amount allocated as part of the Community Development Block Grant Program for this project. Councilman Ratty requested that the staff investigate the possibility of opening large architectural contracts to competitive bidding, rather than judging them on qualifications. Upon a motion by Councilman Strong, Agreement with Donald Renfro & Associates, AIA Architects, for preparation of necessary plans to remodel the BARC facilities for a Senior Citizens Center, was approved and the Mayor was authorized to execute same. First reading of an Ordinance of the Council of the City of Bakersfield amending Section 5.40.050 (j) of the Bakersfield Municipal Code, relative to Park Curfew, and adding Section 5.40.050 (1) to the Bakersfield Municipal Code, relative to Unlawful Noise. This ordinance incorporates the decision of the City Council to amend the Park Curfew Ordinance to provide that all City parks be closed between the hours of ll:00 P.M. and 7:00 A.M., except by permit, and to adopt a Noise Ordinance for amplified sound on streets and parking lots surrounding parks. Councilman Barton suggested that if this ordinance is adopted that staff place notices to the public in the parks of these new laws. Councilman Rockoff requested that staff place this matter on the agenda for review by the Council again next February. First reading was considered given an Ordinance of the Council of the City of Bakersfield amending Section 5.40.050 (j) of the Bakersfield Municipal Code, relative to Park Curfew, and adding Section 5.40.050 (1) to the Bakersfield Municipal Code, relative to Unlawful Noise. Bakersfield, California, September 9, 1981 - Page 12 117 First reading of an Ordinance amend- ing Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 3910 South Chester Avenue and 2309 South Union Avenue. The application for this amendment was made by John B. Antonino and would change subject properties from a C-2-D (Commercial Architectural Design) Zone to an M-1 (Light Manufacturing), or more restrictive Zone. The Planning Commission recommended approval of this amendment by the City Council. First reading was considered given an Ordinance amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 3910 South Chester Avenue and 2309 South Union Avenue. ADJOURNMENT There being no further business to come before the Council, upon a motion by Councilman Christensen, the meeting was adjourned at 9:40 P.M. MAYO o ~ ~ ~YOR~ofe City of Bakersfield, Calif. ATTEST: CITY CLE K x ~ffie±o Clerk of the Council of the City of Bal~ersfield, California ma 118 Bakersfield, California, September 16, 1981 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., September 16, 1981. The meeting was called to order by Mayor Shell, by the Pledge of Allegiance and Invocation by Mayor Shell. Present: Absent: followed The City Clerk called the roll as follows: Mayor Shell. Councilmen Barton, Christensen, Means, Payne, Ratty, Rockoff Councilman Strong CORRESPONDENCE dated September 10, 1981, Sunday Night Summer Band and ordered placed on file. Upon a motion by Councilman Christensen, communication from Tenneco Realty Development Corporation, dated September ll, Charles P. Michel, 410 Lansing Drive, thanking the City for sponsoring the Concerts in Beale Park, was received Upon a motion by Councilman Rockoff, communication from Bill J. Jackson, Auditor-Controller of Kern County, dated August 13, 1981, regarding Estimated Contingent Tax Liability at June 30, 1981, was received and referred to the Budget Review and Finance Committee. Upon a motion by Councilman Payne, communication from Anheuser-Busch Companies, dated August 13, 1981, regarding Busch Industrial Products Corporation, Bakersfield Yeast Plant, was received and referred to the Water and City Growth Committee. Upon a motion by Councilman Christensen, communication from State Department of Transportation, dated August 26, 1981, inviting the City of Bakersfield to submit an updated application for a State grant for funding of a transportation terminal, was received and referred to staff. Upon a motion by Councilman Means, communication from U. S. Department of Commerce, Bureau of the Census, regarding Census Data User Workshops, was received and ordered placed on tile. Upon a motion by Councilman Rockoff, communication from Bakersfield, California, September 16, 1981 - Page 2 119 1981, requesting a change in their application of approximately two years ago for an amendment to the General Plan for property located on the southeast corner of Coffee Road and Truxtun Avenue and southeast corner of future Camino Media and future Old River Road, was received and referred to the Planning Commission for study and recommendation. COUNCIL STATEMENTS Councilman Rockoff stated that for the safety of school children crossing major streets he would request that the Traffic Authority investigate the possibility of placing a stop sign at the intersection of Wenatchee Avenue and Renegade Avenue, and also placing a School Crossing Guard on Auburn Street to help children who live on the south side cross the street and attend Eissler School. Assistant Public Works Director Schulz stated an investi-- gation would be made and a report made to the Council at the next meeting. REPORTS Councilman Payne, Chairman of the Governmental Efficiency and Personnel Committee, read Report No. ll-81 regarding New Position and Reclassification, as follows: The Governmental Efficiency and Personnel Com- mittee (GEP) met recently with the staff to discuss a new position in the Police Department and reclassifications in the City Clerk's Office and the Fire Department. Attached to this report are detailed background requests regarding each of these matters. The Police Department request for an additional Clerk Typist is based on a contract with the County of Kern for an Adult Diversion Program. This agreement was approved last year, however, this position was inadvertently left out. Funds for the position and office equipment are reim- bursed by the County. If this program is eliminated in the future, this position would be abolished. The City Manager's request is to upgrade a Clerk Steno II position to Deputy City Clerk. A complete study has been conducted on the position in the Clerk's Office, and it is felt that in 120 Bakersfield, California, September 16, 1981 - Page 3 order for the City to have the necessary backup for the City Clerk, a classification of Deputy City Clerk should be created. The total annual cost for this reclassification would be $2,907. The Director of Fire and Development Services has requested a reclassification of one Fire Captain position to Business Manager. The Captain position recently became vacant due to a retirement and had been used in the past as Equipment Mechanic Supervisor. Since the Equipment Maintenance has been transferred to Public Works, this position is no longer needed. An overall savings of $8,915 will result if this reclassification is authorized. The GEP Committee, after reviewing all the attached and after discussion with the staff, is recommending Council approval of the following: One new position - Clerk Typist I Police Department. Cost to be reimbursed by County and continued authorization pending reimbursement. 2. Reclassification of one Clerk Steno II to Deputy City Clerk. 3. Reclassification of one Fire Captain position to Business Manager (Fire Department). In order to effectuate this report, we further recommend Council approval of the attached changes in the Salary Resolution and attached job specifications. Upon a motion by Councilman Payne, Governmental Efficiency and Personnel Committee Report No. ll-81 regarding New Position and Reclassifications, was accepted; and recommendations as outlined in the report, were approved. Adoption of Resolution No. 68-81 of the Council of the City of Bakers- field amending Resolution No. 56-81, setting salaries and related benefits for Officers and Employees of the City of Bakersfield. Upon a motion by Councilman Payne, Resolution No. 68-81 of the Council of the City of Bakersfield amending Resolution No. 56-81, setting salaries and related benefits for Officers and Employees of the City of Bakersfield, was adopted by the following roll call vote: Ayes: Councilmen Barton, Christensen, Means, Payne, Ratty, Rockoff Noes: None Absent: Councilman Strong Bakersfield, California, September 16, 1981 - Page 4 Police Chief Price reported that for the first time in a few years there is some good news on crime statistics, however, he hesitates to make a report this early in the year. It appears that for the first six months of 1981 there will be an overall crime decrease of 12% and a 8% crime decrease in those areas reported by the F.B.I. The Council is cautioned not to get excited about this, because during the early months of winter (November and December), some very different trends usually occur. The case clearance rate is up from 27% last year to 37%. This is attributed to the four additional Detectives, which were given to the Police Department in last year's budget, plus the fact Patrol Officers have been able to effectuate approximately 30% to 50% more felony arrests in the field. Two people arrested were responsible for over 60 and 90 residential burglaries each. Hopefully, if the courts do their part, that will be over 150 crimes not committed next year. Most of the decrease is in property crimes, burglaries and thefts. The violent crimes are still on the increase, but not as heavy as last year. Call for services are up by 5% this year. Chief Price also commented on the Career Criminal Program being planned by the District Attorney's Office. HEARINGS This is the time set for public hearing before the Council on Resolution of Intention No. 949 of the Council of the City of Bakersfield declaring its intention to order the vacation of a 33 foot Alley in Block 351 between "L" Street and "M" Street north of 14th Street, in the City of Bakersfield. This hearing has been duly advertised. Mayor Shell declared the hearing open for public partici- pation. No protests or objections being received, the public portion of the hearing was closed for Council deliberation and action. Upon a motion 69-81 of the Council of by Councilman Christensen, Resolution No. the City of Bakersfield ordering the vacation ]22 Bakersfield, California, September 16, 1981 - Page 5 of a 33 foot Alley in Block 351 between "L" Street and "M" Street north of 14th Street, in the City of Bakersfield, was adopted by the following roll call vote: Ayes: Councilmen Barton, Christensen, Means, Payne, Rockoff Noes: Absent: Ratty, None Councilman Strong This is the time set for public hearing before the Council on an Appeal by Carl R. Moreland to the decision of the Planning Commission denying his application to change the zoning boundaries from an R-2-D (Limited Multiple Family Dwelling - Architectural Design) Zone to a C-1 (Limited Commercial) Zone, affecting that certain property in the City of Bakersfield commonly known as 1441 Pacheco Road. This hearing has been duly advertised and the property owners notified as required by law. The Planning Commission was of the opinion the requested C-1 (Limited Commercial) zoning would not be compatible with the surrounding residential area. The Commission recommended that an Environmental Impact Report be prepared if applicant wishes to pursue the C-1 zoning. Mayor Shell declared the hearing open for public partici- pation. Mr. Frank Slaghuis, representing Covington Technologies, spoke in favor of the zone change and stated they own the property to the west, which is being developed with approximately 157 homes and they also are in the process of requesting a General Plan Amendment and Zone Change. No protests or objections being received and no one else wishing to speak in favor, Mayor Shell closed the public portion of the hearing for Council deliberation and action. In answer to a question by Councilman Christensen, Planning Director Sceales stated the Planning Commission felt that the planned Bakersfield, California, September 16, 1981 - Page 6 use of a 7-11 or Circle "K" Store, which are open late at night, on this small corner lot, right next door and across the street from homes, would not be compatible. An Environmental Impact Report on this parcel of property would cost approximately $3,000-$4,000 to prepare. Mr. Carl Moreland, applicant, stated the Planning staff recommended approval of this application and a Negative Declaration. The zoning must conform to the change made in the General Plan and that is what they are trying to do at this point. Upon a motion by Councilman Ratty, Negative Declaration and Ordinance No. 2666 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of that certain property in the City of Bakersfield commonly known as 1441Pacheco Road, finding said zoning consistent with the General Plan, were adopted by the following roll call vote: Ayes: Councilmen Barton, Christensen, Means, Payne, Ratty, Rockoff Noes: None Absent: Councilman Strong This is the time set for public hearing before the Council on an Appeal by Dallis I. Higdon to the decision of the Board of Zoning Adjustment denying his application for a Modification of a C-O (Commercial and Professional Office) Zone, to permit the elimina- tion of the required three off-street parking spaces on that certain property in the City of Bakersfield commonly known as 819 "H" Street. This hearing has been duly advertised and the property owners notified as required by law. Mayor Shell declared the hearing open for public partici- pation. Mr. Dallis Higdon, applicant, grant the Modification because it will not Mr. Higdon outlined the background on this that is zoned commercial. He stated there requested that the Council create a parking problem. single family residence is not enough space 124 Bakersfield, California, September 16, 1981 - Page 7 between the back improvements and the property line to turn a car around, therefore, it is impossible to use the parcel for commercial purposes. Also because of the size, the parcel map that was granted makes it illegal for residential use. It is difficult to find a use for the property now and will probably put him out of business. Mr. Higdon also stated he would not be backing a vehicle out onto "H" Street, which would be unsafe, but onto Forrest Street, which is not a busy street. No protests or objections being received and no one else wishing to speak in favor, Mayor Shell closed the public portion of the hearing for Council deliberation and action, City Attorney Oberholzer stated for the past several years many complaints have been received regarding parking problems on "H" Street. "H" Street use to be primarily residential and changed to commercial when it was widened. As a consequence of the parking problems on "H" Street, between California Avenue and Brundage Lane, about 6 or 8 months ago a program was launched to clean up that problem. The City went so far as to go to court to obtain in- junctions to close down some businesses, because they did not comply with the order issued with respect to the Parking Ordinance. Councilman Christensen asked Mr. Higdon if this was deferred for two weeks would it give him time to solve the problem with the former property owner. Mr. Higdon replied he did not think it would and requested that the Council make a decision tonight. Upon a motion by Councilman Ratty, Zoning Resolution No. 283 denying Appeal from the Board of Zoning Adjustment's denial of Modification to permit the elimination of the required three off- street parking spaces on that property commonly known as 819 "H" Street, Ayes: Noes: Absent: was adopted by the following roll call vote: Councilmen Barton, Christensen, Means, Payne, Rockoff None Councilman Strong Ratty, Bakersfield, California, September 16, 1981 - Page 8 125 ADJOURNMENT There being no further business to come before the Council, upon a motion by Councilman Christensen, the meeting was adjourned at 8:55 P.~. 'OR o~it~ of Bakersfield, MAYO o ~'~ ~~ Calif. ATTEST: CITY O the Council of the City of Bakersfield, California ma Bakersfield, California, September 23, 1981 Minutes of a regular meeting of the Council of of Bakersfield, California, held in the Council Chambers Hall at 8:00 P.M., September 23, 1981. The meeting was called to order by ~ayor Shell, by the Pledge of Allegiance and Invocation by Mayor Shell. Present: The City Clerk called the roll as follows: the City of City followed Mayor Shell. Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton (seated at 8:10 P.M.) Absent: None Minutes of the regular meeting of September 9, approved as presented. PRESENTATION OF RETIREMENT PLAQUE 1981 were Mayor Shell presented a retirement plaque to Edward E. Miller, Police Captain, who completed 25 years of service with the Police Department of the City of Bakersfield, effective August l, 1981. SCHEDULED PUBLIC STATEMENTS Mr. Fred McKenna, Marketing Director of Airport Bus of Bakersfield, requested that the Council authorize the Mayor to write a letter to the Public Utilities Commission endorsing the Airport Bus of Bakersfield, which is owned and operated by local businessmen in the best interest of the City and also fulfilling a transportation need. Adoption of Resolution No. 70-81 o£ the Council o~ the City of Bakers- field commending and supporting Air- port Bus of Bakersfield. Upon a motion by Councilman Means, Resolution No. 70-81 of the Council of the City of Bakersfield commending and supporting Airport Bus of Bakersfield, was adopted, and the Mayor was requested to forward a copy to the Public Utilities Commission, by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None Bakersfield, California, September 23, 1981 - Page 2 127 CORRESPONDENCE Upon a motion by Councilman Payne, communication from the Downtown Business Association, dated September 22, 1981, requesting that the Loitering and Littering Ordinances be enforced at 19th Street and Chester Avenue and GET's transfer point be changed to help clean up that intersection, was received and referred to the Business Development and Parking Committee for study and recommendation. COUNCIL STATEMENTS Councilman Barton reported he attended a meeting this afternoon at the Chamber of Commerce regarding air service being proposed for the Bakersfield area. Golden West Airlines will be serving this area with flights to Los Angeles on an emergency basis, subsidized by the government, for 60 days starting October 1, 1981. After the 60 day period they anticipate remaining as a permanent commuter service in this area, with expanded service to other areas in California. CONSENT CALENDAR The following items were listed on (a) (b) (c) (d) the Consent Calendar: (e) Allowance of Claims Nos. 1198 to 1569, inclusive, in the amount of $643,460.94. Voucher No. 1214 to Ralph Andersen & Associates, in the amount of $10,696.00, for Management Compensation Study. Claim for Damages from Michael David Komaromi, 5900 Hesketh Drive, Bakersfield. (Refer to City Attorney) Claim for Damages from Robert C. Route l, Box 167, Bakers£ield. City Attorney) Thompson, (Refer to Claim for Personal Injuries from Willie Leo Harris, a minor, by and through his Guardian at Litem, Jerlene Harris, 819 South Haley Street, Bakersfield. (Refer to City Attorney) Claim for Damages from R. Middleworth on behalf of Pacific Telephone Company, 1917 "N" Street, Room 211, Bakersfield. (Refer to City Attorney) Bakersfield, California, September 23, 1981 - Page 3 (f) Improvement Agreement for Tract No. 3972, Units C & D, with Coleman T. and Rebecca G. Proctor for construction of sidewalks and survey monuments required by the Planning Commission, located south of Pacheco Road and west of Akers Road. (g) Notice of Completion and Acceptance of Work on Tract No. 3972, Units C & D, Contract No. 80-103 with Coleman T. and Rebecca G. Proctor, located south of Pacheco Road and west of Akers Road. (h) Application for Encroachment Permit from Electrical Pension Fund, 2020 Westwind Drive, for construction of a 24" high retaining wall along back of sidewalk on 21st Street and Westwind Drive. (i) Resolution of Intention No. 950 of the Council of the City of Bakersfield, declaring its intention to order the vacation of a portion of "O" Street between 38th Street and 40th Street, adjacent to Block 664, in the City of Bakersfield, and setting Wednesday, October 14, 1981, for hearing on the matter before the Council. (J) Resolution of Intention No. 951 of the Council of the City of Bakersfield, declaring its intention to order the vacation of a portion of Oak Street at Truxtun Avenue, in the City of Bakers- field, and setting Wednesday, October 14, 1981, for hearing on the matter before the Council. (k) Resolution No. 71-81 of the Council of the City of Bakersfield initiating pro- ceedings for annexation of territory to the City of Bakersfield identified as Proceeding No. 736, Annexation No. 282 (Panama No. 3), in accordance with LAFCO Resolution making determination. This resolution sets the date of hearing for Wednesday, October 28, 1981. (i) Agreement between Southern Pacific Transportation Company and the City of Bakersfield providing for construction of a 36" Sanitary Sewer Main in Gosford Road at its intersection with the Southern Pacific Railroad tracks. Upon a motion by Councilman Means, Items (a), (b), (d), (e), (f), (g), (h), (i), (j), (k) and (1) of the Consent Calendar, were adopted by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff Strong, Barton Noes: None c), Absent: None Bakersfield, California, September 23, 1981 - Page 4 129 Francis, Ming Avenue, Wilson Road, accepted, all other bids execute the contract. ACTION ON BIDS Upon a motion by Councilman Payne, low bid of James G. in the amount of $211,126.25, for resurfacing portions of South Real Road and Stine Road, was rejected and the Mayor was authorized to Upon a motion by Councilman Payne, low Base Bid, plus Additions A and B, of Granite Construction Company, in the amount of $242,514, for resurfacing portions of California Avenue, New Stine Road and Ming Avenue, was accepted, all other bids rejected and the Mayor was authorized to execute the contract. Upon a motion by Councilman Barton, bid of Jim Alfter Construction, in the amount of $21,022.50, for Annual Contract for Canal Liner Repair, was accepted and the Mayor was authorized to execute the contract. Upon a motion by Councilman Christensen, low bid of Motorcycle Supplies, in the amount of $4,828.83, for Motorcycle Tires, was accepted and all other bids rejected. Upon a motion by Councilman Payne, low bid of L. N. Curtis, in the amount of $5,215.20, for helmets and turnout coats and pants for the Fire Department, was accepted and all other bids rejected. DEFERRED BUSINESS Adoption of Ordinance No. 2667 New Series of the Council of the City of Bakersfield amending Section 5.40.050 (j) of the Bakersfield Municipal Code, relative to Park Curfew, and adding Section 5.40.050 (1) to the Bakers- field Municipal Code, relative to Unlawful Noise. Upon a motion by Councilman Barton, Ordinance No. 2667 New Series of the Council of the City of Bakersfield amending Section 5.40.050 (j) of the Bakersfield Municipal Code, relative to Park Curfew, and adding Section 5.40.050 (1) to the Bakersfield Municipal Code, relative to Unlawful Noise, was adopted by the Bakersfield, California, September 23, 1981 - Page 5 following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None Adoption of Ordinance No. 2668 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 3910 South Chester Avenue and 2309 South Union Avenue. The application for this amendment was made by John B. Antonino and would change subject properties from a C-2-D (Commercial - Architectural Design) Zone to an M-1 (Light Manu- facturing) Zone. Upon a motion by Councilman Barton, Negative Declaration and Ordinance No. 2668 New Series amending Title Seventeen of the Municipal Code of the City of Bakersfield by changing the Land Use Zoning of those certain properties in the City of Bakersfield commonly known as 3910 South Chester Avenue and 2309 South Union Avenue, finding said zoning consistent with the General Plan, were adopted by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None NEW BUSINESS Adoption of Resolution No. 72-81 of the Council of the City of Bakers- field making certain assurances to the California Department of Trans- portation, designating a Lead Agency for construction of an Inter-City Terminal, and agreeing to act as conduit for disbursement of Local Funds. In October, 1980, an application was submitted to the State Department of Transportation jointly by Golden Empire District and Bakersfield Redevelopment Agency for funding to construct an Bakersfield, California, September 23, 1981 - Page 6 1.ql Inter-City Terminal. The terminal would be utilized by AMTRAK and the major bus carriers. The application was not accepted by the State. The State has now requested that the City indicate its support for the project as they are now very interested in it. Local funding will be provided by KERNCOG. In answer to a question by Councilman Payne, City Attorney Oberholzer stated that Councilman Payne could participate in the voting on this matter because the site selected is located outside the boundaries of the Downtown Redevelopment Project Area. Mr. Joe Leal, Chief of Mass Transportation for Caltrans, District 06, Fresno, stated the State highly endorses the Inter-City Terminal and hopes the Council will act as Caltrans' conduit for local funds. State funds will finance up to 75% of the total cost of this project. Site acquisition for the project will probably begin sometime in 1982 and the total completion of the terminal will probably take approximately three years. Upon a motion by Councilman Rockoff, Resolution No. 72-81 of the Council of the City of Bakersfield making certain assurances to the California Department of Transportation, designating a Lead Agency for construction of an Inter-City Terminal, and agreeing to act as conduit for disbursement of Local Funds, was adopted by the following roll call vote: Ayes: Councilmen Christensen, Means, Payne, Ratty, Rockoff, Strong, Barton Noes: None Absent: None Approval of Agreement with Security Transport for air transportation of prisoners for the Police Department. The cost of transportation is 45~ per mile, which repre- sents a 7~ per mile increase from the prior contract with Security Transport. However, even with the increase, it is still requested to utilize Security Transport, in that it is cost effective and would relieve one or possibly two Detectives from this duty. It Bakersfield, California, September 23, 1981 - Page also should be noted this transport service will only be utilized occasionally, and when transporting individuals in excess of approximately 150 miles. Upon a motion by Councilman Christensen, Agreement with Security Transport for air transportation of prisoners for the Police Department, was approved and the Mayor was authorized to execute same. Approval of Contract Change Order No. 12 to Contract No. 80-48 with Granite Construction Company for the Truxtun Avenue Extension, Phase II, FAU Project No. M-F 252(1). This Change Order is necessary to remove two existing 1200 GPM pumps and replace with two 2500 GPM pumps, including related electrical wiring and service, piping and testing. This change was required by Caltrans based on additional pump capacity needed during heavy Kern River flow and storm water runoff. The Change Order increases the contract $50,000. The total contract price as a result of this increase is approximately $3,067,308.19. This change will be funded with State Grade Separation Funds. Upon a motion by Councilman Ratty, Contract Change Order No. 12 to Contract No. 80-48 with Granite Construction Company for the Truxtun Avenue Extension, Phase II, FAU Project No. M-F 252(1), was approved and the Mayor was authorized to execute same. First reading of an Ordinance of the Council of the City of Bakersfield amending Sections 7.18.010 and 7.18.020 and repealing Sections 7.18.030 through 7.18.220 of the Bakersfield Municipal Code, relative to Secondhand Dealers, Pawn Brokers and Junk Dealers. This ordinance conforms Chapter 7.18 of the Municipal Code to State law, adopting the State law definition of "Second- hand Dealer" and requiring compliance with the State regulations governing Secondhand Dealers. Sections of Chapter 7.18 which are inconsistent with State law are repealed by this ordinance. Bakersfield, California, September 23, 1981 - Page 8 First reading was considered given an Ordinance of the Council of the City of Bakersfield amending Sections 7.18.010 and 7.18.020 and repealing Sections 7.18.030 through 7.18.220 of the Bakersfield Municipal Code, relative to Secondhand Dealers, Pawn Brokers and Junk Dealers. Adoption of Resolution No. 73-81 of the Council of the City of Bakers- field fixing the time of Meetings of the Council during the months of October, November and December, 1981, and January and February, 1982. Councilman Christensen stated he is opposed to the Council meeting every other week, because he feels the taxpayers are being shorted. Upon a motion by Councilman Ratty, Resolution No. 73-81 of the Council of the City of Bakersfield fixing the time of Meetings of the Council during the months of October, November and None December, 1981, and January and February, following roll call vote: Ayes: Councilmen Payne, Ratty, Rockoff, Barton Noes: Councilmen Christensen, Means, Strong Absent: 1982, was adopted by the Approval of Contract with Panama School District for Community Recreation Program. Upon a motion by Councilman Strong, Contract with Panama School District for Community Recreation Program, was approved and the Mayor was authorized to execute same. Approval of Contract between the City of Bakersfield and the Greater Bakers- £ield Chamber of Commerce for the service of advertising the City and promoting the Industrial Development of the City. Upon a motion by Councilman Ratty, Contract between the City of Bakersfield and the Greater Bakersfield Chamber of Commerce for the service of advertising the City and promoting the Industrial Development of the City, was approved and the Mayor was authorized to execute same. Councilman Rockoff abstained from voting on this matter because he is an officer in the Chamber of Commerce. Bakersfield, California, September 23, 1981 - Page 9 Approval of Contract between the City of Bakersfield and the Greater Bakers- field Chamber of Commerce providing for the operation of a Convention Bureau. This contract incorporates the same provisions as last year's contract, except that it adds a provision for paying the Chamber matching dollars generated from fees assessed for new memberships, up to $7,500. Upon a motion by Councilman Ratty, Contract between the City of Bakersfield and the Greater Bakersfield Chamber of Commerce providing for the operation of a Convention Bureau, was approved and the Mayor was authorized to execute same. Councilman Rockoff abstained from voting on this matter because he is an officer in the Chamber of Commerce. ADJOURNMENT There being no further business to come before the Council, upon a motion by Councilman Christensen, the meeting was adjourned at 8:45 P.M. Calif. ATTEST: CITY CLERK a~d Ex Officio Clerk of the Council of the City of Bakersfield, California ma Bakersfield, California, September 30, 1981 Minutes of a Special Joint Meeting of the Council of the City of Bakersfield and the Bakersfield Redevelopment Agency, held in the Council Chambers of City Hall at 8:00 P.M., September 30, 1981. Chairman by Mayor Shell. Present: Absent: Present: Absent: The meeting was called to order by Mayor Shell and Agency Casper, followed by the Pledge of Allegiance and Invocation The City Clerk called the Mayor Shell. Councilmen Means, Barton, Councilman Payne The City Clerk called the roll of the Agency, Agency Members Casper, Foth, Mooneyham, Puder, Winer Agency Members Bilas, Lewis Presentation of Proposed Amended Joint Development Agreement between the Bakers- field Redevelopment Agency and Bakersfield Associates for the Downtown Shopping Center. roll of the Council, as follows;: Ratty, Rockoff, Strong, Christensen as follows: it was necessary for the Agency and the a UDAG Grant, an Urban Development Action to finance a part of the public's responsi-- bility that time, which was for the construction of the parking and the parking garage. The City applied on three occasions, I believe, for that grant and never received the grant. In June of this year the because of the financing, Council to try to obtain Grant, from HUD in order (The following is a transcript of the Special Joint Meeting) CITY MANAGER KELMAR: Mayor Shell and members of the Council and Chairman Casper and members of the Bakersfield Redevelop- ment Agency, this evening we're here to present to you an Amended Joint Development Agreement for the Downtown Bakersfield Retail Center. That is the sole purpose of the meeting this evening. There will be no action that will be required on the part of either body. Just basically to go back a little bit in time and so to bring you up to date as to what's transpired over the last couple of years .... as both bodies will recall in December of 1979, both the City Council and the Agency voted to approve the Joint Development Agreement for the Downtown Center. Subsequent to the approval of that agreement, Bakersfield, California, September 30, 1981 - Page 2 developer came to the Agency and the City Council and indicated that he had obtained financing to support not only the share that he was proposing previously, but his financing to also pick up the $7,500,000.00 for the parking and parking garage. At that point in time the Agency, with the concurrence of the City Council, entered into a 60-day Implementation Agreement. The developer, at that time, put up a $500,000 good faith deposit. The agreement was for the purposes of negotiating another Joint Development Agreement under the new circumstances. In early August I came to the Agency and indicated that we had reached agreement on the economic terms, however, it was not possible to put together a formal agreement in the remaining few days. At that time I asked the Agency for a 45-day period, extension period, for the sole purpose of preparing the document that you have before you. That is where we are at this point in time. You have before you a Proposed Agreement that has been signed by the developer. This evening we have a number of the Consultants that have worked on the agreement that are here. The developer is here, Mr. Donahue. What I would like to do is basic- ally to have each of them speak concerning their respective areas and make a presentation. After all the presentations are completed the .... anyone may ask, obviously any questions that they so desire. Mr. Murray Kane from the law firm, is sitting on the end here, will basically describe the document and the process that will be before you. Mr. Botti, he's sitting behind me, is the representative from Keyset Marston, whose ba§ic purpose was to analyze the private side or what the developer was proposing. Mr. Hollis, who is sitting next to me, is the Financial Consultant for the Redevelopment Agency and he will explain some of the economics this evening, sitting in the audience, Bond Consultant for the Redevelopment Mr. Donahne. of the agreement. Also present is Mr. Jim Rafferty who is the Agency. If we may begin with Bakersfield, California, September 30, 1981 - Page 3 DAN DONAHUE: My name is Daniel W. Donahue. I am President of John S. Griffith and Co. We are headquartered in Costa Mesa, California and we are the 50-50 Joint Venture with Daon Corporation of Vancouver, British Columbia, Canada, in a partnership known as Bakers£ield Associates. It is tonight that we deliver to you the Amended Joint Development Agreement between Bakersfield Associates and the City of Bakersfield. The document has been executed on behalf of our company and on behalf of Daon. Since we were last here some month and a half has gone by and I would like to just personally say, publicly, that the last month and a half has been a very difficult one for, not only our company and Daon, but also for the City staff and for its consultants. We have spent many hours negotiating, revising, redrafting this document. I hope that all of you will take a good hard look at it, will understand exactly the terms of it and that we can have some very good dialogue so that the City, the public, and the private side or the private development side will all understand exactly what the contract says and what each of us is expected to perform. We will be, provided that you'll agree to this document, in a position to provide the financing as called for and specified in the document, which I believe is in the next 30 to 45 days, whenever you execute same. On a personal note, I've spent a great deal of time, also, in the last few weeks traveling around the country. It is amazing the amount of vitality and the amount of interest that people have in other cities of this country into what's going into Bakers- field. Some of your efforts, Madam Mayor, have been paying off. I was recently in Washington, as a matter of fact last Wednesday and Thursday, and it's very interesting the reaction to Bakersfield. We had a meeting of the Trustees of the International Council of Shopping Centers and during that meeting we spoke of Bakersfield, as one of the Trustees has recently acquired an interest in the center down at the Valley Plaza. So it's an interesting subject. A lot of national interest has now focused on Bakersfield and I can assure you this evening that we will be providing you a fantastic, excellent downtown Bakersfield, California, September 30, 1981 - Page 4 shopping center. Thank you. MURRAY KANE: the Agency. Our task MAYOR SHELL: Be happy to answer any questions as we go on here. Mayor and Councilmen, Chairman and members of in .... Excuse me Mr. Kane, for our record would you identify yourself and who you represent again? MURRAY KANE: Thank you. Murray Kane from the law firm of Weiser, Kane, Ballmet & Berkman. Special Counsel to the Agency. Our task in negotiating and preparing the Amended Joint Development Agreement and bringing it before you, for your consideration, was to find a method of financing the responsibilities of the Agency and of the developer under the agreement so as the project; at the same time making up funds that were previously applied for. to assure the feasibility of for the loss of any grant Basically the Amended Joint Development Agreement is a specification of each of the responsibili- ties of the Agency in assembling the site and limiting and defining which funds of the Agency are to be expended and how the various costs of the Agency are to be met and outlines the responsibilities of the developer in participating in most of those methods of financing, accepting the lease of the public parking facility site and accepting conveyance of the retail parcel and fee and developing the shopping center, pursuant to plans to be approved by the Agency and the City in accordance with the schedule that would be agreed to in the docu- ment. I'd like Mr. Cal Hollis, from the fiscal consultants of the Agency, and Mr. Dick Botti, who is seated behind me, who is the economic analyst that the Agency has hired in this matter, to speak to the specifics of these fiscal and economic matters. First I would like to just outline where we go from here and what legal procedures and what legal framework there is in front of us in the consideration of this agreement. As Mr. Kelmar mentioned, the developer has signed the agreement, that is before you. Before the Agency and the City Council may consider that agreement, the Agency must complete the environmental review process, which we anticipate completing in the Bakersfield, California, September 30, 1981 - Page 5 in the next 30 days, 30 to 35 days. We must also prepare a Summary Report of the transaction listing the costs to the Agency and which items of cost; the acquisition cost, the demolition cost, the public improvement costs and so on, relocation payments, and where that money is coming from. The explanation of the value of this property and the economic details that Mr. Botti and the fiscal details Mr. Hollis will be speaking to shortly. We anticipate, therefore, that sometime early in November, after the environmental processes are complete after the necessary report that I've just mentioned has been prepared and after the necessary notices have been published and mailed to the property owners and published in the newspaper (as required by State law), that we would be able to come before you for a formal Joint Public Hearing of the City Council and Redevelop- ment Agency, at which time testimony could be taken from any inter- ested person and formal consideration of the agreement could take place. In between this time and that moment, of course, any questions and issues that arise can be considered by the Agency and the Council and that's one of the purposes of tonight's meeting. In the event that hearing takes place and the Amended Joint Development Agreement is approved, the developer would immediately deposit with the Agency, concurrently with the Agency's execution of that agreement, a letter of credit in the amount of $3,350,000.00. The $3,000,000.00 represents three of the $4,000,000.00, that is the purchase price for the convey- ance of the fee portion of the site. The Agency would immediately draw down those $3,000,000.00,in funds and invest these mo~ies and earn the interest as its property. Once--the next step would be for the Agency consultants and staff to finish the details of the financ- ing package, the various tax exempt bonds that have to be prepared and marketed and sold, and bring those tax exempt issuances back to you. I should emphasize that the agreement before you is a far more restrictive agreement in the sense of far more limited Agency or City tax exempt issues than in the Joint Development Agreement that was previously approved. The major difference is that the parking, 140 Bakers£ield, California, September 30, 1981 - Page 6 the structured parking and the surface parking, is solely the obligation of the developer and is to be solely financed by the developer. The only portion of that that would be proposed to be financed in the agreement before you would be the acquisition and assembly of the property that would be the public parking facility site and that would be leased to the developer in accordance with the details in the agreement. I would like to, at this time, call on Mr. Dick Botti of Keyser Marston and Associates to present to you a summary o£ the economic analysis that is behind the purchase price that you see in the Joint Development Agreement Amendment and also the lease payments that the developer will be obligated to pay if that agreement is approved. MAYOR SHELL: Mr. Botti. man Means, did you have a question? speaks I front of Excuse me just a moment, Council- COUNCILMAN MEANS: Just a comment. Before each person would hope that they have something in writing to have in us while you're talking. I refer to your comments in terms of a time line. I'd like to see that and anyone else that is going to speak I hope we have something in front of us that outlines what you're talking abut. MURRAY KANE: The time line could be found in the Schedule of Performance, which is attached to the agreement. COUNCILMAN MEANS: If they could refer to that when they're talking I'm sure we .... I'm sure that somewhere in all the stuff we have .... I'd like them to point it out and I'd like to look at it as they're ~oing along. MAYOR SHELL: Yes, if you would point to the pages of the documents that have been submitted to us .... I understand what you mean, Councilman Means. Mr. Botti is there any .... would you like to draw our attention tc your tether? DICK BOTTI: We have submitted to the City and Agency a document called the Re-Use Analysis - Bakersfield Regional Shopping Center prepared by Keyser Marston Associates, September 1981. Bakersfield, CAlifornia, September 30, 1981 - Page 7 MAYOR SHELL: I think this is the document that you received yesterday, dated September 28th .... isn't that correct? I want to be sure everyone has it before you begin, just a moment. Mr. Botti, you've already been identified; very well, so please continue. DICK BOTTI: Okay. The role of Keyser Marston Associates in the analysis of the Bakersfield Regional Shopping Center was to determine what constitutes fair compensation for the development opportunity that the developer is asking for. In determining what constitutes the fair compensation, we have looked at both the economics and the proposed development in terms of the potential cost, revenues, developer's profit and the whole set of economics pertaining to that development, as well as other regional shopping center transactions within the State of California. I should say that fair compensation in these complicated real estate developmeni;s include both the purchase price of the land, plus any lease payments that the developer would agree to make, plus any participation income that the Agency or City would receive, plus any sort of other guarantees that the developer would take upon himself in terms of cost overruns or any other cost, potential cost to the developer. Our analysis indicates that the proposed transaction as outlined in the Disposition and Development Agreement, at least the economic terms of that agreement, in terms of both the direct compensation and in terms of the other guarantees that the developer is provid- ing, exceed our estimate of the fair compensation for the site. Let me say right here that what our, again, our role is to identify what the minimum compensation should be, and in this instance the developer, for a number of reasons, pertaining primarily to the fiscal status of the Agency has agreed, perhaps reluctantly, but has agreed to provide additional compensation in order project together. As indicated in our Re-Use Analysis, developer had .... that the cost to the developer of the plus to put the what the land, the parking, plus the present value of the parking payments, 142 Bakersfield, CAlifornia, September 30, 1981 - Page 8 is in excess of all but a few other unique regional shopping centers in the State of California. It is, therefore, our opinion that the developer has met our requirements for the fair compensation for the shopping center and is of itself taking a fair amount of risk in putting this project together. I'd be happy to answer any questions you may have. COUNCILMAN MEANS: Yes, I'd ask him why he says that. What do you base the statement that the developers paying higher than anyone else in the State? On what figures? DICK BOTTI: We have presented a Table .... Table i in our document presents an analysis of five recent regional shopping center transactions within the State of California. I should say five transactions of .... I indicated in this Table the Modesto Regional Shopping Center transaction, which is somewhat of an old transaction, was in the Spring of 1977, and we have not used that. I simply presented that as an indication of comparison of where the developer is today as compared to the Modesto transaction. But you'll see at the bottom of that Table .... we have indicated there, at the second line from the bottom of the Table, a total cost of Land and Parking per square foot of gross leasable area, and the various transactions show a range from $20.19 a square foot to $26.15 a square foot. The developer has agreed, in Bakersfield, to insure a cost approaching $30.00 a square foot, if we simply assume a three department store center, and $25.00 to $26.00 a square foot if we assume that he is successful in attracting a fourth department store. Based upon the cost of money that the developer is facing, as compared to these other transactions, plus adjusting for inflation, it's our conclusion that the developer has, in terms of this cost of land and parking per square foot of GLA, is at the upper end. We do know of certain other transactions, again in the State, that are unique in terms of their location within the highly dense urban areas in which the developer, for a number of reasons, has included office space or hotels in which he's exceeded that. But essentially for the type of shopping center that we're talking about here, the range of $25.00 to $26.00 a square foot is at the upper end. Bakersfield, California, September 30, 1981 - Page 9 COUNCILMAN ROCKOFF: Yes, in Table l, I tried to put the Bakersfield development with four department stores or three department stores on a comparable basis with the others, and I'm not sure that I picked up the proper figures in each category. I was wondering whether you could check me or if you had done the same thing so you could fill in a column for Bakersfield that would be comparable to Fairfield, Santa Rosa, Modesto, Burbank, Escondido. DICK BOTTI: All right. We are .... the land value for Bakersfield would be $4,000,000.00. The on and off site costs, which is essentially the cost of the parking, is $7,500,000.00. The present value of the parking payments is $7,000,000.00, leading to a total compensation for land and parking of $18,500,000.00. If we divide that by the square footage of the three department store center being 617,000 square feet, we come back to a cost per square foot of gross building area of $29.97. If we divide that by the area of a four department store center, and I've assumed the fourth department store at a 100,000 square feet, we would come back to a value of $25.79. COUNCILMAN ROCKOFF: Then I think my next computation ..... I'm not 100% sure of .... less the department store contribution I used $1,750,000.00 and I'm not sure that's right, per store. DICK BO?TI: That is incorrect .... COUNCILMAN ROCKOFF: That is incorrect, okay .... . DICK BOTTI: We have assumed that to the developer that compensation coming from the fourth department store will be $1,750,000.00, which would be a combination of the land payment plus his pro rata share of parking payments. The total compensation coming from the initial three department stores, as we outlined in our report, is, at the best, zero, which means that the developer will neither lose money nor make money on the initial three depart- ment stores. You may want to ask the developer about that, but we're finding today that in order to attract initially, the three initial department stores to the transactions, that the developer is normally incurring a loss on those department store transactions. We have assumed, however, that he would not incur a loss on the fourth department store. Bakers£ield, California, September 30, 1981 - Page l0 COUNCILMAN ROCKOFF: I guess I don't understand how you consider that a loss. In other words, wouldn't they be making some contribution when they purchase the land that they're going to build their store on? DICK BOTTI: Well, in the case of this transaction that's right, one of the department stores will be purchasing land. They will all be making contribution toward the parking payment; however, the developer has to build some of the department stores and the capitalized value of that rental payment, coming from the department store, is substantially less than the cost of building that store. As yqu know, the department stores are driving very hard bargains with respect to the rents they are willing to pay. The rent from that department store is less than the cost .... less .... the capital- ized rent is less than the cost. ?aken together it turns out to be zero. COUNCILMAN ROCKOFF: Could we be given a copy of that computation sometime .... DICK BOTTI: I will prepare that for .... COUNCILMAN ROCKOFF: I would appreciate that .... DICK BOTTI: Thank you. CAL HOLLIS: My name is Cal Hollis from the firm of Katz, Hollis, Coren & Associates in Los Angeles. Madam Mayor, members of the Council, Mr. Kelmar and members of the Agency, what I'd like to do at this point is to go over the proposed financing for the shopping center. The financing has gotten somehwat more complicated than the last agreement that the Agency approved. In this final round of negotiations we took it as our goal, meaning the Agency staff's goal, to try to accomplish several things with the overriding goal of putting together a plan that worked. The first goal was to maximize the private expenditure. We felt in this project that it was the Agency's and City's goal that every~ thing that could possibly be paid for privately should be and so that was an overriding goal in the last round of negotiations, and Bakersfield, california, September 30, 1981 - Page in doing so we would, o£ course, minimize the public expenditure. The other goal that we took in this round, is we saw an opportunity to minimize any exposure to the City of Bakersfield, to, as much as possible, reduce risks down to risks that were borne by the Agency and risks that would, therefore, be related to tax increment genera- tion and to, as much as possible in this transaction, reduce the risks to the City. You recall, the last financing plan, when the Agency was responsible for the parking, there was a lease revenue issue of approximately $20,000,000.00. Under that type of financing the City would have signed a lease with the Agency to lease the parking facilities, would agree to make annual payments equal to debt service on the $20,000,000.00 worth of bonds. The City would then look to the Agency to reimburse them for their annual cost out of tax increment and look to the developer's sublease payments to the City to additionally reimburse the City. The financing plan that was brought to you at that time the identified revenues, those coming from the Agency and those coming from the developer, were equal to the amount of the debt service, so that to the extent those monies continue to be there the City felt no impact from the project. We saw an opportunity here, with the developer assuming construction of the parking, to reduce any possible risks to the City under a lease revenue financing scenario. The current financing continues to include lease revenue financing. We couldn't find another way to do it, but we reduced the value of those bonds, or the amount of those bonds, from $20,000,000.00 down to approximately $9,500,000.00. So I think we've come a long way towards reducing any potential exposure to the City under a lease revenue scenario. The financing, and I would refer you to something that was distributed to you, I believe, at the beginning of the meeting or just prior to the meeting. This is a two page set of tables that were prepared by our office. I believe the top sheet is titled "Bakersfield Redevelopment Agency Retail Center Financing Parking Area Financing," the second page Bakersfield, California, September 30, 1981 - Page 12 being "Retail Center Financing Pad Area Parking." What I'm refer- ring to when I refer to the parking area versus the pad area, the pad area is the part that will be owned by the developer in fee on which the retail center stores and mall will be constructed. The parking area is the property that would be leased to the developer on which he would build the parking. We have, in the tables you have in front of you, divided the costs for each of the areas. That's something that we had to go through when we developed the financing plan. I direct you to the sources section of the first Table, which is the lower portion of the Table, and these are the sources of funds available to meet the costs for the parking area. You see, the first amount are lease revenue bonds. The proceeds from lease revenue bonds would be used primarily to acquire the property on which the parking will ultimately be constructed. You see an assessment bond item. The developer has agreed to an annual assessment. The proceeds from these assessment bonds will be used to cover the off site improvements. Those items include what street work needs to be done, off site utilities, traffic signalization, those things that can properly be financed through a pure assessment district. The developer has agreed to, in effect, loan the money to the Agency to make these assessment payments. The developer's property will be subject to an assessment, he will make an annual payment of $200,000.00 per year. The Agency, through this agreement, would agree to reimburse him for the cost of that $200,000.00 to the extent there is tax increment money available to do so. Our current projections show that in the near term, meaning from the time the retail center is completed, out of five, six, seven years, absent new construction within the Redevelopment Project Area, increment will not be sufficient to reimburse the developer, so this is a cost he will be forced to ~bsorb. The Agency, through this agree- ment, will be obligated to repay, to reimburse him, for these assessments at such times as it had increment available. The only obligation to the Agency would be to reimburse him to the extent it had tax increment and there would no liability to the City, whatso- ever, to make those payments. Bakersfield, California, September 30, 1981 - Page 13 147 The last item we're using as a source of funds for the parking costs are interest earnings and these are interest earnings on the lease revenue bonds and the assessment bonds during the acquisition process. We've, I believe, conservately estimated what interest .... interest that would be earned by the Agency during the acquisition program. Mr. Kelmar reminds me that in the agreement the Daon Corporation, as a corporate entity, is guaranteeing for a three year period, guaranteeing that the lease payments .... the sublease payments will be made by the shopping center. So during this initial start up period, the period of time when if there's a shortfall from the shopping center's point of view, during the initial leasing period and so forth, if there's a shortfall and for some unknown reason the shopping center was unable to make its lease payments, the Daon Corporation is providing a corporate guarantee to the Agency to make those payments. So you have additional security during the early lease up period of the shopping center that these lease payments will be made. The second page identifies the sources of funds the property on which the retail center buildings will be We're suggesting that a tax increment, or tax allocation bond, tax increment bond, be sold. The amount that you see there is the amount that would be supported by tax increment that's currently being generated within the Redevelopment Project. That's why it's in that amount. We've taken what was generated last year in tax increment and we've determined how much in bond proceeds we think could be acquired through the use of that increment and that amount of bonds would be sold. Again, the only obligation, the only security the Agency or City would be offering for payment on these bonds is tax increment itself and there's absolutely no exposure to the City. They have no obligation for a debt service on these tax allocation bonds. for acquiring constructed. Bakersfield, California, September 30, 1981 Page 14 Additional sources of funds: The developer's first payment $3,000,000.00, which, as has been explained, will be available upon execution of the agreement by the Agency. An additional payment to occur approximately June of '82 - $1,000,000.00, which is an additional payment by the developer. Agency cash - the Agency in the previous agreement had committed this amount, $1,160,000.00, of cash that the Agency currently has on hand, to this development. That amount has stayed the same as from the earlier financing plan. City property is this - The Council and Agency knows the City owns certain parcels within the development site. What's being asked in this financing plan is that the City defer being paid by the Agency for these properties. We've shown it .... it's included in the acquisition budget as a cost and now we identify it here as a source of revenue and that the City would not request being paid by the Agency at this point in time. The Agency would incur an obligation to repay the City at such time as monies would be available. Real- istically, this would be sometime in the future and repayment would depend upon additional development within the Redevelopment Project, so that additional increment would be generated. So this .... this is the one area where it's .... City funds or City property, if you will, is being committed to the project. This was also included in the last financing plan, so there has not been a change in this item. As an additional item where we said cumulative net tax increment required, this was sort of a balancing number. There was .... as we added up all the sources of funds and added up the costs we were short, in this case $155,000.00. What we're saying is tax increment generated during the construction, or during the acquisition program beginning from this year forward .... of all the increment that would be generated during this three year time period, $155,000.00 would be required. As an alternative to using this money the developer has agreed to make available to the Agency in the form of a Letter of Credit, additional Letfer of Credit, which the Agency may borrow Bakersfield, California, September 30, 1981 - Page 15 :149 from the developer. So you have as an alternative to using this tax increment, the $350,000.00 that the developer is offering as a loan to the extent that it is required. Finally, we have an interest earnings item .... again this is interest earned on Agency funds during the acquisition program and this is interest earnings on all funds, bond issues, the money that's been advanced by the developer and so forth. This, very quickly, is the financing plan that has been proposed to you. There are, in recap, three bond issues, a lease revenue bond issue and a tax allocation bond issue, which would .... both of which would be sold early, as soon as possible. after the City Agency execute the agree- ment. A third bond issue .... an assessment bond issue would be sold after the property was conveyed to the developer and a lien could be placed on the property that he would be owning. This would occur sometime in .... between late summer and December o£ next year and, again, these proceeds of the assessment bonds would be used for, off-site improvements that the Agency is agreeing to pro- Additional sources include Agency cash, deferral of paying the City for its property, interest earnings and the $4,000,000.00 the developer is paying for his property. The agreement further provides a participation formula and under this formula, to the extent revenues are generated above certain minimum specified amounts that are explained in the Disposition and Development Agreement, the Agency would participate in those revenues and this would be additional .... this would be paid in the form of additional sublease payments from the developer to the City. We have not included any of those revenues. We have not included them primarily because we believe it's going to be several years before those are generated. We are looking at those as extras to the City and the Agency and we didn't want to include .... to be counting on those funds as a financing vehicle. basically, vide. Bakersfield, California, September 30, 1981 - Page 16 One final note on the financing plan as it's been presented, the .... during the last 60 days we've seen a bad market, bond market, get worse. In the last week we've seen some--call it strengthening of the bond market. 'The financing plan, as it Sits now, we beiieve, is a feasible plan, however, the bond market is going to have to recover somewhat more from where it is now. We have time, based on the physical number of things that have to occur, before the Agency ..... we would go to the bond market that from .... where we have some time for that bond market to come back around. We will be meeting shortly with the Bank of America, who has agreed to assist the Agency in providing some additional financial structuring to explore some short-term financing, which would be more attracted to the bond market than long-term financing. Short-term financing would be for the amounts that you see with the provision to issue longer-term financing at such time as when the bond market improved. We're looking at a situation now, where, as you are probably well aware, the bond market, whole financial market, is just terrible. We believe we've structured this agreement in such a way that it is as feasible an agreement as we could possibly put together and Mr. Rafferty, the Agency's Bond Consultants, can speak to his thoughts on the financing structure as we've laid it out to you and its ultimate marketability. Be happy at the conclusion of the presenta- tions to answer any questions that the Agency Council may have. COUNCILMAN CHRISTENSEN: I have a question, sir. What kind of additional financing structure will be provided by Bank of America? CAL HOLLIS: What we're looking through, for the bank, is to assist in designing, if you will, these bond issues so that they are most attractive to the investor. The assumptions that we have used all along, up to the last 60 days, would all be traditional long-term financing, Because of the uncertainty in the market now, would be that these 25 year bonds. 25 year bonds are not very attractive. We believe that with the Bank of America's exper- tise they can assist the Agency in restructuring these bonds in terms of the length of the bond issue (whether they be serial bonds or term bonds), the amounts of the bonds (whether you use one or two Bakersfield, California, September 30, 1981 - Page 17 series as a whole), list of technical design items in making the bonds the most attractive to the bond market. We believe that some-- one like the Bank of America, who is very active in the bond under- writing field, can provide up-to-date assistance to the structuring these bonds. They have the Agency to structure a bond that market in a very bad market. COUNCILMAN CHRISTENSEN: In other words, they're really not going to give any additional financial outlay. They're merely going to develop a sales package. CAL HOLLIS: Initially that's what we will be requesting of them. We are not asking them, obviously, to make commitments to purchase bonds or those kind of things, although they have, again, they have indicated a great interest in the project and a great interest in the City of Bakersfield. COUNCILMAN ROCKOFF: Mr. Hollis, the original $500,000, that the developer paid, is that in any way part of this cash that we have on hand or is it any part of the cash on hand? CAL HOLLIS: It is not included in the $1,160,000.00, Councilman, it is included within the $3,350,000.00 that will be initially made available to the Agency. That $500,000, of the $3,350,000.00, $500,000 will continue to act as good faith security deposit and is subject to forfeiture under terms of the agreement. COUNCILMAN ROCKOFF: Okay. In figuring the value of $635,000 of City property that is going to be put into the project, does that include value of the streets that are going to be deeded into the retail parcel? CAL HOLLIS: No sir, it does not. That's the appraised value of the parking .... I'm sorry .... I believe there are parking facilities, properties within the project areas, that does not include the value of the streets that would be vacated. Agency in indicated a willingness to assist is the most attractive to the Bakersfield, California, September 30, 1981 - Page COUNCILMAN ROCKOFF: Should there be a value given to the City for the dedication of those streets to the project? CAL HOLLIS: Yes sir. I would suggest that a value be determined for those. That they be included in the amount which the Agency will be owing to the City and would be an additional liability of the Agency and would be paid, again, at such time as increment is being generated. The payment, again, will be sometime in the future and I didn't want to give the impression that these monies would be available to the City in the near term. COUNCILMAN ROCKOFF: In line with that, is the developer being charged for the street dedication? CAL ttOLLIS: The developer .... the amount the developer is being paid takes into account the entire area that he will be (1) owning; or (2) leasing. So the entire development site has been considered in determining the fair value of the property. COUNCILMAN ROCKOFF: I have one more question. In going through the annual debt service, if I've added it correctly, it's 1,785,000. We've discussed .... oh no, we haven't discussed, but I know the agreement calls for 700,000 being received on rental of the parking lot land and 200,000 from the assessment bonds, that's 900,000, where does the balance come from? CAL HOLLIS: The balance is being paid from tax increments generated by the development and by the project. COUNCILMAN ROCKOFF: Has that been computed to make, as certain as humanly possible, that there will be at least that much available? CAL HOLLIS: It has been part of our office's role in this project to project revenue that would be available to the City-- --to the Agency, I'm sorry, tax increment revenue that would be available. Our projections for revenue include only increment being generated currently and increase of 2% on currently existing property within the project area per year and the value of the retail center itself. So the basic assumption here, is that, nothing else Bakersfield, California, September 30, 1981 - Page 19 occurs within the entire Redevelopment Project, method of calculating increment we have arrived feel will be available to service the bonds. COUNCILMAN ROCKOFF: 1,785,000, am I .... so zero, zero, zero, and based on that at the amount we from the tax increment future? CAL HOLLIS: CAL HOLLIS: Yes, that's correct .... COUNCILMAN ROCKOFF: Correct. 885,000 and it is your opinion that there's no reasonable doubt that tax increment will, at least, bring in $885,000 a year? CAL HOLLIS: Currently Councilman Rockoff our last year .... let's go back to 1980, I believe the increment generated in the Redevelopment Project was approximately $500,000. This additional development will generate, I believe, an additional $600,000. The Agency has some current obligations. The obligation which will continue .... which be in place at the time that the debt service begins on these bonds, is reimbursing the City for the debt service on the "K" Street Garage, which is 130. So if you take the total that I've given you and subtract 130, that's the amount that is remaining and available to the Agency for the additional financing. COUNCILMAN ROCKOFF: Thank you. COUNCILMAN MEANS: Councilman Rockoff had some of the similar questions I did. One small part of that had to do with .... again when you were talking about the City property and that in some point in the far future there will be enough money available to repay the City for that, how far in the Madam Mayor, Councilman Means, I was trying to be very careful not to say that there would be money available to repay the City. The impression I meant to give, is that it would shown as a debt, by the Agency, to the City, and in the event tax increment, maybe that's the proper word to use, in the event tax increment rose to the point where there was money available to repay the City. I would ask you, again, to consider the method we used So that's, let's see, 900,000 from eighty-five .... that's what, 885,000 154 Bakersfield, California, September 30, 1981 Page 20 in projecting property tax revenue, that being that nothing occurs in the entire Redevelopment Project other than the retail center. So I am quite confident that there will be additional tax increment generated. I didn't want to try to estimate how much that was going to be, try to guess how many office buildings or other development would occur within the downtown area. So, I cannot tell you when that money would be available to you for repayment. I would look at it as an amount that the City was putting into the project, a noncash amount the City was getting to put into the project, with the good likelihood of getting return on that money, but not necessarily counting on that money for budgetary purposes. COUNCILMAN MEANS: Yes, you did say .... that was what you said previously, when it gets to a tax increment, when it gets to a certain point. What would that point be though? CAL HOLLIS: The obligations that this agreement puts on the Agency, on tax increment, is the debt service that Councilman Rockoff spoke of and that approximately 830,000 of tax increment would be required to meet the debt service under this agreement. The 830,000, plus the 130,000 in the "K" Street garage, is $960,000. Additional amounts that the Agency is agreeing, to the extent it's available, is to reimburse the developer for his annual assess- ment of $200,000. So that is $1,160,000, if my numbers are correct, of tax increment that will have to be .... is really prepledged, if you will. When revenue gets above that amount then the Agency will have funds for'its other purposes, including repaying the uity, doing other developments, whatever the Council and the Agency decide they want to do with that tax increment. So that's approximately the level I would certainly expect that this kind of development, as it goes forward, will attract additional development around it as other regional centers have and it will be a relatively short period of time for additional increment to be generated, but you know your community much better than I and I think you can make better esti- mates as to when development is going to occur within the community. Bakersfield, California, September 30, 1981 - Page 21 But roughly there are times the Agency has a $1,200,00 in annual tax increment, it can start looking to additional increment being available for its other developments or for repaying the City. COUNCILMAN MEANS: Madam Mayor, I .... Mr. Hollis, I concur with your conservative method of discussing the tax increment. On the other hand I would .... I want the agreement to establish a point above which that money would then be paid back to the City, and I would expect of the agreement that we assign would include a point at which the tax increment gets to that level that you mentioned, that the first priority after that would be the repay- ment of this $635,000. CAL HOLLIS: Madam Mayor, Councilman Means, what I would suggest that that be a pleasure that in the agreement, not this agreement, but the agreement by which the City conveys title to the Agency, that you specify whatever payment terms you would like to do, and therefore, it's not within this agreement, it's a direct relationship between the City and the Agency. In that agreement you can place whatever terms, whatever interest terms, that you would like to place on it. So, I think that's between you and the Agency to work out. COUNCILMAN MEANS: Good. Thank you. I think that's a good suggestion. Another question I have is .... before we get to Mr. Rafferty .... would be the .... what effect does 'the use Of the short- term bonds have on the amount of interest that would be available to the Agency? That you calculated in here. CAL HOLLIS: It shouldn't have any effect. The only interest that we've assumed is a short-term interest period. So that we've assumed interest only during the time in which the Agency would be assemblying the property and putting in the public improve- ments in the term .... in term of the short-term notes would be through completion of the development. So it should have no effect on the amount of interest earned. Bakersfield, California, September 30, 1981 Page 22 COUNCILMAN MEANS: Thank you. COUNCILMAN Christensen: The obligation of tax increments would be 600,000, wouldn't it, per year for 25 years? CAL ttOLLIS: I believe, Madam Mayor, Councilman, it's $830,000 total increment that would be used by the Agency to set aside its obligations under this agreement. COUNCILMAN CHRISTENSEN: How many years? CAL ttOLLIS: Probably 25 years. COUNCILMAN CHRISTENSEN: That's what I thought, thank you. COUNCILMAN BARTON: Yes, this question is of our staff and it goes back to Mr. Mean~' question regarding City property. In the Council-Agency Agreement, didn't we have provisions in there for the reimbursement processes that .... in the event, like Mr. Means is talking about, under the Agency-Council Agreement? CITY MANAGER KELMAR: Mayor Shell, Councilman Barton, I think the only reimbursement agreement in that is specifically for the time that the City staff provides as staff to the Agency. One of the provisos, when the Redevelopment Agency was formed, there were actually two provisos, one being that any eminent domain action that would be involved would require the approval of the Council and the other being that the Agency would not have its own staff, that City staff would be utilized for the Agency and the Agency would reimburse the City for that. So, I believe under that particular agreement that would be the sole reimbursement. Now, there is another agreement, I believe, in connection with that "K" Street Parking Garage, that provides for reimbursement for that particular project. COUNCILMAN BARTON: Okay, thank you. MAYOR SHELL: Do any members of the Agency have questions? I have some questions. Your figure of $600,000 in tax increment, now you expect the regional shopping center to generate that much a year? Mr. Hollis. Bakersfield, California, September 30, 1981 - Page 23 157 CAL HOLLIS: Madam Mayor, I'm trying to recollect, excuse me a minute .... when we did our increment projections, we, o£ course, did them on a project wide basis, including the develop-. ment. We did it in annual amounts so I trying to reconstruct in my mind the amount of the retail center. As I recall .... MAYOR SHELL: .... it would be 1% of the cost of .... CAL HOLLIS: .... roughly 1% of the market value of the property, including personal properties. So it's the construction cost, plus the value of the land, plus the value of the parking, plus the utilities, approximately, as I recall it, $635,000 is what we have estimated would be generated by the development in total. MAYOR SHELL: I see, that's just the center. In other words you that doesn't .... CAL HOLLIS: Just the center itself .... MAYOR SHELL: You are not counting on any development around the shopping center? CAL HOLLIS: No, again, we have only .... now we are assuming because it takes an annual, roughly $835,000 in tax increment, to fund the bonds being issued for this project, $635,000 would be coming from the retail center itself. The balance would be coming from properties within the project area. MAYOR SHELL: And you've already deducted the obligation that's .... CAL HOLLIS: On the "K" Street Garage, yes mam. MAYOR SHELL: Now there's a guarantee of the parent corp- Daon, to guarantee the lease payments to the City of a default after three oration, $700,000 for three years. What if there's years? What is the position of the City? CAL HOLLIS: I'd like your legal counsel to provide that for you. MAYOR SHELL: All right, Mr. Kane. 158 Bakersfield, California, September 30, 1981 - Page 24 MURRAY KANE: Thank you. The Agency and the City will be parties to another document, which is to be brought back to you in the near future, called a Reciprocal Easement Agreement. That doc- ument, which is scheduled to be completed and signed 6 months after this agreement is executed by the Agency, establishes all of the rights and remedies of the parties in the event of default under this arrangement. If the lease payment is not paid, the Agency would have a variety of remedies, including security interest, the normal remedies of obtaining judgments and filing liens against the developments .... developer's assets. There would be remedies oi' simply terminating the lease and closing down the parking. There'd be basically real property security interests that would protect the Agency, in addition to those remedies. Each of these remedies would be set out in the Reciprocal Easement Agreement, which must be brought back to the City and the Agency prior to execution. MAYOR SHELL: Thank you. One other question, why is the parking lease a three way transaction? Why isn't it just between the developer and the Agency? Why is the City involved in that? CAL HOLLIS: Madam ~ayor, this is a marketing considera- tion. In order to issue a bond like this the bond holder will be looking at security for the lease. Security for the lease in this arrangement would be the City itself. That makes a public bond like this marketable, so that, again, its .... in the event that the developer didn't pay his lease payment, the bond holders could look to the City for payment under those bonds. Now for the developer not to make his payment it would also mean that the department stores, the major department stores, did not make their payments. So that .... and .... it would mean that the department stores have not made their payments. So we believe that by lowering the amount of the bond issue, we've lowered the risk to the City and there is a risk and I've tried each time we've talked about lease revenue bonds to explain this, this risk. That there is a risk to the City in the event that, for some unknown reason, the lease payment wasn't made the Agency could look to the City. Technically, Bakersfield, California, September 30, 1981 - Page 25 159 the Agency could look to bond holders City to make revenue bond, the City for payment of its lease. The could sue the Agency to force the Agency to force the its lease payment. So that is the risk of a lease is that the City looks .... the City is the lessee. We think we have minimized that risk by reducing the size of the bond issue such that much of those annual lease payments coming to the City is coming £rom major department stores, which we feel have a pretty good credit rating, the department stores that are being con- sidered for this project. COUNCILMAN ROCKOFF: Yes, one £urther question on the tax increment on the center itself. Did I understand that that was going to be roughly 600,000, based on the current land values and construction values. CAL HOLLIS: I'm sorry Councilman, I missed the first part of your question. COUNCILMAN ROCKOFF: All right. The tax increment on the center itself would be 600,000, based on the land value and the con- struction value? CALL HOLLIS: Land construction and the private property of the department store, that's roughly a $60,000,000 center. COUNCILMAN ROCKOFF: Okay, now does that mean that there is no tax revenue from that area at the present time, because I understand tax increment is only the addition? CAL HOLLIS: Yes, what we have done, again, when we did the increment projection we did it for the project as a whole and we subtracted from the .... our projected total value of the project as a whole the entire base year value for the project, so that if we look .... if we look at this as a segment, look at only the retail center site, total property tax would be about 630,000. Current year taxes are approximately 40 .... well, I don't want to guess .... I have it somewhere, but I don't have it with me, so I don't want to guess what it is. But you're right, it will incremental will be something less than 630. 630,000 in taxes a portion of that, and it's be something less, If the center will pay a very minor portion, lf;O Bakersfield, California, September 30, 1981 - Page 26 will go to the taxing entities. The balance will go to the Agency. COUNCILMAN MEANS: Yes, on the figures that Mr. Hollis .... that you gave us for the tax increment .... I realize that you're only projecting the tax increment based on the current Redevelopment Agency structure and with the addition of the shopping mall, but I would like to get those projections. Do I have those someplace, the projections? CAL HOLLIS: No sir, you do not. I can make my projec- tions available to you. To the Council and Agency members, be happy to do so. COUNCILMAN MEANS: I would like that and in addition, I'm not sure a .... you're aware of the lease the a .... what is it .... the a .... the option that the a .... the developer has on the land in the immediate vicinity of the shopping center to use for office structures? CAL HOLLIS: Yes, the agreement provides .... are you speak- ing of the option that granted in this particular .... in this agree- ment, Councilman Means? COUNCILMAN MEANS: Yes. CAL HOLLIS: Fine. The developer does has a one year option, in the agreement, to negotiate with the Agency for that property. It doesn't give them a right the property, merely a first right to negotiate for that property. And he has a one year from the execution of this agreement to enter into a separate agreement with the Agency for development of that property. We have not included as incremental revenue any revenue generated from develop- ment of that property. COUNCILMAN MEANS: Right. CAL HOLLIS: Similarly we've not included development for anything else that the Council may be aware of, construction or developments that are proposed for the downtown area. Bakersfield, California, September 30, 1981 - Page 27 COUNCILMAN MEANS: Do you .... my question .... right .... that's correct .... my question is, do you .... do you feel that those discussions of the .... of what might happen with the prop- erty immediately adjacent to the shopping mall are anywhere close to being at a point where you could estimate the tax increment from those properties? CAL HOLLIS: Not those specific discussions. The developer is .... a major negotiating point in the agreement was the right to negotiate on those properties. I think Mr. Donahue could express his interest in those properties. He would like very much to develop those properties and knows he has a limited amount of time in which to negotiate with the City for development. So in all likelihood the developer will come back to you within a year with an agreement for your approval for development of those prop- erties. Because if he doesn't he knows there's going to be several people standing in line as soon as first shovel is turned out there for rights to develop around that site. COUNCILMAN MEANS: I realize that your primary considera- tion in assessing the amount of tax increment is to take care of this particular obligation, but in addition, certainly one of the things that we've talked about .... obviously the mall is the central theme for downtown in order to have the retail downtown to keep it alive, bring people down there, but we also anticipate, with the mall and perhaps the hotel, that the process of revitalizing downtown would include a number of other developments downtown, a number of office buildings, office buildings that would be, perhaps, even in connection with some housing, any number of things that we anticipate for downtown. It seems to me that it is .... would be shortsighted to at least on that .... on perhaps the City's part, City staff or the Agency staff, not to have some general ideas of development over the next five or ten years and the estimated tax increment that would be generated from any number of projects. Recognize that's not as ..... that would not be as specific as you have done or anywhere even close to the excellent job you've done, but it seems to me it's very critical Bakersfield, California, September 30, 1981 - Page 28 in discussing, if in fact one of the selling points that we're buying into this mall, if it would happen to pass, is what else would happen in the downtown area. It seems to me ...... I would like some kind of a projection of what's going to happen in the next five years, in ten years, because I would like somebody to bet their expertise on it. CAL HOLLIS: Madam Mayor, an approach to that, Council- man Means, would be for the staff to, based upon the zoning, based upon what they feel the goals of the Agency are and perhaps, with some input from Mr. Botti perhaps, getting some idea of what might occur, if you will, based on what first .... what you allow for your zoning, what your interests are, what the Redevelopment Plan allows, and then some offhand estimate as to what kind of development potential there is over a five, say a five to ten year period, and then generate an increment projection based upon that. That certainly can be done and I think it's the proper thing to do to give the Agency some idea of what potentials there are. We have tried very hard not to do that in this instance so that .... so that we weren't clouding the issue and we like to approach these things in, what if this is all that happens, what position is the Agency and City in. But I think those other types of pro- jections for planning purposes can be helpful. MAYOR SHELL: Did he answer it? Are you finished? COUNCILMAN MEANS: No, I believe MAYOR SHELL: Yeah, Mr. Kelmar .... CITY MANAGER KELMAR: I might add something to that, for Councilman Means' information. You know the .... there are a number of projects that are presently being, you know, additional projects that are presently being considered in the downtown area. For example, Streets. National home office. the project over the City's parking lot at 18th and "K" There been, apparently, some discussion about American Bank constructing a very large office building for their The proposed G.E.T. facility, if it materializes. Bakersfield, California, September 30, 1981 - Page 29 Probably will have with it a office complex. So there are some things, I think some tangible things, that we can talk about. We know that that church property is being .... in the process of being completed .... that will add increment. The offices of Chain-Younger are being expanded. The old Bank of America Building, on Chester Avenue, is being remodeled. So there are a number of things, you know, that are being discussed that will add to the increment. I think it would be possible to come up with some half way, you know, some projections that might be meaningful in that regard. MAYOR SHELL: Chairman Casper wanted to .... CHAIRMAN CASPER: COUNCILMAN MEANS: MAYOR SHELL: Oh, COUNCILMAN MEANS: Mayor, I've got .... Madam Mayor, I wasn't you're not finished. No .... finished. MAYOR SHELL: I'm sorry .... CHAIRMAN CASPER: Oh, I'm not on, okay, thank you. COUNCILMAN MEANS: Just one more quick question and that was the .... don't you also have some ideas of projections for those areas that .... those specific areas within the downtown area where there isn't currently a request or discussion around a proposal for what you would like to see happen down in that area, and I would like those kinds of projections to be included in that plan and estimated increments. CITY MANAGER KELMAR: If I might add to that. Part of, you know, this, I don't know what you want to call it, specific plan or whatever, you know, the City has been pursuing. We are in the process, now, with the citizen participation program where we hope to become involved in commercial, some type of commercial rehabilitation, you know, involved with existing properties in the downtown area. We do have, you know, some Community Development Funds that have been, you know, earmarked for that purpose and for any other type of bond issues that we might, you know, be able to become involved with, involving, you know, rehab for commercial properties that would also add .... sure, we could include that, too. 164 Bakersfield, California, September 30, 1981 - Page 30 COUNCILMAN MEANS: CITY MANAGER KELMAR: We could have that you prior .... at least over the next few weeks. At any consideration of this agreement. COUNCILMAN MEANS: Thank you. Thank you, When might we get that? information for least prior to Mr. Casper. that has been made. available to all the it? CHAIRMAN CASPER: I just want to make a comment on some- thing that hasn't been mentioned tonight and it doesn't have any- thing to do with the agreement that we're discussing, but it does have to do with the revenue the City Council is interested in. I think that if this shopping center goes forward the estimated sales for the first twelve months is 86,000,000 and that would return to the City for its own use $860,000.00 in sales tax. It's true that it wouldn't all be new because Penney's is in business now, but all the rest of the businesses are new so the majority of it would be new revenue to the City. You're talking about $860,000 each year from the beginning, should they make their estimated sales. Am I right, Dan, in the estimate? DAN DONAtIUE: Yes. CHAIRMAN CASPER: For the first year. Thank you. CHAIRMAN CHRISTENSEN: I would like to know if we would be given a copy of the transcript tonight. The legal transcript To all the Councilmen. Would that be made Councilmen, so we could reread it and analyze CITY MANAGER KELMAR: Certainly, Councilman Christensen. MAYOR SHELL: Councilman Christensen asked for a copy of the transcript of tonight's proceedings. Councilman Means. COUNCILMAN MEANS: Yes, that reminds me of just a small question I had. Why are we having a Legal Secretary .... I mean a Court Reporter taking notes? UNKNOWN: I don't know, why? COUNCILMAN MEANS: Pardon me! Bakersfield, California, September 30, 1981 - Page 31 ASSISTANT CITY CLERK ANDERSON: She is the new Secretary to the Redevelopment Agency and she is training tonight. COUNCILMAN MEANS: I'm sorry, say that again. ASSISTANT CITY CLERK ANDERSON: She is the new Secretary to the Redevelopment Agency and she is training tonight. COUNCILMAN MEANS: I didn't know the Redevelopment Agency had any staff .... CITY MANAGER KELMAR: No, I .... for the Redevelopment staJ!f the Community Development Department assists .... a Secretary employed by the City in the area of Community Development and apparently doesn't take shorthand. COUNCILMAN MEANS: But is a Court Reporter? No .... that ..... MAYOR SHELL: Speedwriter .... COUNCILMAN MEANS: Thank you. COUNCILMAN CHRISTENSEN: Is it paid out of tax increments? CITY MANAGER KELMAR: Yes, sir. MAYOR SHELL: Are there any other questions by the members of the Redevelopment Agency? AGENCY MEMBER FOTH: I have a question. Yes, I .... my question has to do with the deeding of the property or handing the parcel to the department store owners. Doesn't that put the Agency or the City in somewhat of an awkward position in the event of default if that should happen? Would property owners being the department store owners? MURRAY KANE: Murray Kane again. it's our position that that puts the Agency because that gives us a direct contractural relationship with each department store. Part of the Grant Deed .... the Grant Deed does not merely convey title to each department store, but it will also impose the covenants and obligations on each department store in terms of use and all of the obligations that are going into the Receiprocal Easement Agreement. We are much better off having a direct contract- ural relationship to enforce against each department store rather To the contrary, we .... in an advantageous posit4~, Bakersfield, California, September 30, 1981 - Page 32 than relying on our only remedy being to proceed against the developer and relying on him proceeding against each department store. AGENCY MEMBER FOTH: But isn't that also a part of this agreement? Someplace I read, I thought I read, that there will be no recourse against. MURRAY KANE: that indicates that in the event of .... a portion of the site is to be conveyed to the developer. Other portions of the site will probably be conveyed to each individual department store. The pro- vision that you're referring to indicates that, if a particular department store is accomplishing all of their obligations, and they are not in default, then we do not have the right to take title back or proceed against that department store, because of a default of the developer may have or another department store may have on their particular parcel. The language .... MAYOR SHELL OR AGENCY ME~ER FOTH?: I'm looking for the page and I .... toward the end of the agreement. MURRAY KANE: But that .... that is the basis of that language and that's going to be included, also, in the Reciprocal Easement Agreement. AGENCY MEMBER FOTH: The other concern I have that I mentioned, I believe, to you earlier, Murray, was the fact that the City in a few years can, or the department store can, negotiate with the City to buy their portion o£ the parking. What happens in that case? Is that going to be spelled out? MURRAY KANE: Yes, that particular provision is in Attachment 2 and provides that after the lease revenue bonds are fully paid, which we anticipate to be 20, approximately 27 years after their issuance. The developer may purchase from the Agency their proportionate portion of the public parking site and each department store may purchase, at fair market value, their propor- tionate portion o£ the public parking site. There would have to be No, no, there is a provision, to be speci£ic, Bakersfield, California, September 30, 1981 - Page 33 appraisals made and a method of establishing what is the then fair market value of that property and those funds would be paid to the Agency. That is spelled out in Attachment 2 and will be £urther set forth in detail in the Reciprocal Easement Agreement. I have a question. There will be no direct between the Agency and the department stores. MAYOR SHELL: contractural agreement Is that correct? MURRAY KANE: Not in the Amended Joint Development Agreement, but each Department store will be a party to the Reciprocal Easement Agreement and that would be the basis of a direct contractural agreement between the Agency and each department store. MAYOR SHELL: Is there some .... do we have some assurance that the .... that agreement will be with the parent corporation, instead of a holding company? MURRAY KANE: Well that .... that is .... that would be the only acceptable .... we haveiindicated in this Amended Joint Development Agreement that it is with the department stores. We have not specified, but we have not permitted an agreement merely with a shell company and we would not permit it in the negotiation of the Reciprocal Easement Agreement. This is an issue that has come up in other Reciprocal Easement Agreements on these kinds of transactions and we would insist on the department store proper being a party to that agreement. COUNCILMAN ROCKOFF: We've been discussing the communications from Katz, Hollis, Coren & Associates and Keyser Marston, when is it time to discuss the actual agreement or is this the time? MAYOR SHELL: This is the time, isn't it, Mr. Kelmar? Mr. Donahue is here. COUNCILMAN ROCKOFF: With the possibility of keeping us longer I hoped we'd be here I do have several questions I would like to direct to the staff, to our consultants and possibly Mr. Donahue. Some may be trite and some I consider extremely important. I'm going to be thumbing through, because I have notes on the margin of the agreement to indicate that I have a question. Bakersfield, California, September 30, 1981 - Page 34 On page 12, on top of the page I have a question since this is a Redevelopment Project, having to do with the Redevelop- ment Agency, do all the requirements of the Building Department, the Planning Department, Planning Commission, as would be required of any other developer, do those prevail in this particular, in this particular project? MURRAY KANE: Yes, the developer is required to meet all City requirements the same as any other person or entity developing in the City of Bakersfield. In addition to that, as spelled out in the agreement before you, the Redevelopment Agency has additional architectural review and control of the plans, which would be in addition to the normal City requirements. COUNCILMAN ROCKOFF: Then skipping down to the last para- graph of Item 4, there is an indication that there's a 10-day period for determining whether a proposed change is in conformity or some-- thing. Might I ask first who determines if the proposed changes con- form to the requirements of Section 304 in the scope of development and then I question, is 10 days sufficient time for the Agency or the governmental body to approve or object. The reason I say that, is that, if they don't object, within 10 days and I'm curious the .... I gather, it indicates approval whether l0 days is sufficient for MURRAY KANE: To answer the first question, the Redevelop- ment Agency and its staff, based upon staff recommendation but independent review, would have to agree to each proposed change. So, if this is not .... this decision on whether or not the change conforms to the requirements here is not something that the developer can unilaterally demonstrate. It must be agreed to by the Agency. The second issue as to the 10 days, to put this in perspective, these are changes in final working drawings, which would really follow some .... the best part of one year in terms of the developer and the Agency going through, starting with conceptual plans and going to preliminary plans, going into working plans and so on. Bakersfield, California, September 30, 1981 - Page 35 So it's not anticipated after all that time that is spent on these that anything of any major substance would come up at that point. Occasionally a lender would have a particular requirement and so on, but we have not had a problem with the l0 day provision in the past. I should ask Mr. Kelmar whether or not he thinks that l0 days is sufficient time for his staff to review changes in the working drawings. CITY MANAGER KELMAR: Maybe Mr. Needham who is responsible for the Building Department could answer that. DIRECTOR OF FIRE & DEVELOPMENT SERVICES NEEDHAM: Dennis Needham. In most cases perspective changes or proposed changes in projects such as this probably could be reviewed and determinations made by staff unless, of course, they were very extensive. Some- thing on a extensive basis that maybe would change the structural content or whatever, the main structure, may take more time. But I would say, in general or probably, might make that aren't significant, period of time. COUNCILMAN ROCKOFF: So you feel we are adequately pro- tected in the 10 day period? DIRECTOR OF FIRE & DEVELOPMENT SERVICES NEEDHAM: Yes, like I say, unless it is tremendously significant change then it may take a little longer, but I would think that would not happen in this instance. MURRAY KANE: No, and if it did, I should point out and add to what I said previously, these refer to merely to changes in the final working drawings. If the change is a significant or sub- stantial enough changes to be a change to the architectural plans and the plans that have been previously approved by the Agency they would not cover the .... come under this particular provision. This is just changes to the final working drawings. proposed changes that the developer l0 days would be a appropriate 170 Bakersfield, California, September 30, 1981 - Page 36 COUNCILMAN ROCKOFF: Now then go to the first paragraph of page 14 and I should say that some of these would be trite and this is trite. You require that the developer's person accompany the staff's person in an inspection and I would just ask that the accompaniment should not be unreasonably denied. I don't think that anybody's going to argue that. MURRAY KANE: That's fine. COUNCILMAN ROCKOFF; Then in the first paragraph of page 15, we're talking about easements and I don't know whether the para- graph specifically is talking about easements, but since they .... since the developer does not have title to the parking structure parcel, are we protected against any easements being placed on that property voluntarily or involuntarily? MURRAY KANE: Yes, we are. First the fee title to the public parking facility will be held by the Agency and it is not possible under California law for a public entity to be made subject to a Prescriptive Easement. Even if it were, in this particular case the use of that facility by the developer and the major department stores and the people parking, is solely pursuant to the Reciprocal Easement Agreement and the rights contained in that agreement. And so, yes, we do feel we are protected. COUNCILMAN ROCKOFF: My next question is in Attachment Number 2 - the parking sublease payment on page 2 of Attachment 2, paragraph b. It states developer shall guarantee to pay the Agency and parking sublease payment the sum of 700,000 per year in quarterly installments in advance for each year of the sublease term, commenc- ing upon the date established in the Schedule of Performance for the opening of the retail center. Now, when is that specifically .... I personally believe the rent should begin when the property is made available to the developer. Now, am I correct or is it at some such other time? Bakersfield, California, September 30, 1981 - Page 37 171 MURRAY KANE: No, it's important that an absolute date for the commencement of developer payments be included in the agreement, because we would be selling the lease revenue bonds and the lease revenue bonds would have approximately 2 years funded interest. But after those 2 years funded interest we would need the developer's rental to make the next .... a portion of the 3rd years debt service. So we can't make a contingent liability on It must be an absolute liability on a date COUNCILMAN ROCKOFF: And what is the part of the developer. certain. that date, sir? MURRAY KANE: That date would be the date set forth in the Schedule of Performance of the opening of the shopping center, which would be Attachment No. 3, Item 25, on Page 3, two years after the date scheduled for commencement of construction. COUNCILMAN ROCKOFF: So, therefore, he has use of the prop- erty for 2 years without a rental payment? Is that the way I under- stand that? MURRAY KANE: Well no, the use during those 2 years would be solely for construction of a garage for which there would be no revenue or any use in a real sense, other than just to build a garage at their expense or their financing. COUNCILMAN ROCKOFF: Then I'll continue in that paragraph .... and let's see .... and the payment shall continue so long as there's outstanding indebtedness of the Agency associated with this develop- ment, thereafter the annual sublease payment shall be 350, which I gather has been changed to 300, where the fair rental value of the public parking facility parcel at such time, whichever is less. My question is, how can we in all good conscience accept less than fair market value? MURRAY KANE: No, there is that it should be is less. COUNCILMAN ROCKOFF: what I'm saying. that's .... we can't. What is intended $300,000 or the fair rental, whichever Whichever is less, that's exactly 172 Bakersfield, California, September 30, 1981 - Page 38 MURRAY KANE: Actually what you're saying is there's a chance that the 300,000 may be less than the fair market value. COUNCILMAN ROCKOFF: Yeah. See my personal opinion is the $700,000 is fair value, based on what I've read right now, and it seems to me that after 25 years, if we have inflation, fair market value may be quite in excess of the ~700,000. MURRAY KANE: Right. I think that focusing just on this particular sentence, that's absolutely true. In the context of the entire package of payments and debts and expenses and risks, that the developer is obligated to .... and I'd like to refer this to Mr. Botti, the Economic Analyst. We feel that, taken as a whole, the developer is paying a fair value for this economic opportunity, with this provision. Mr. Botti DICK BOTTI: This issue that's before us now is the .... was the last issue raised by the developer in negotiations late last week. I don't mean to speak for Mr. Donahue, but let me see if I can explain their position with respect to the reduction of that lease payment. They are saying that they're paying more than the estab- lished minimum fair compensation for this transaction in order to put the package together. They are guaranteeing to buy the fourth department store pad, prior to their knowledge that they can secure a fourth department store, because the Agency needs the additional million dollars to close the transaction. They've agreed to loan to the Agency $350,000, if the Agency needs the money. They have agreed to give the Agency, on an annual basis, up to $200,000 if the tax increment projections are insufficient to cover the debt service, to be repaid back at some point in time with no interest on that $200,000. Their position is that since they're doing all of this above what we've established as a minimum compensation, they are, in fact, prepaying that lease in the future, and they would like the right that when the lease .... there's no more obligations to pay that $700,000 to be reduced to some number. That's a philosophical point Bakersfield, California, September 30, 1981 - Page 39 '173 of view. The number of $300,000 was arrived by our firm on the basis of what that value of that land would be today if were just for regional shopping center valued at between $4.00 & $5 00 a square foot and that payment would have been between $280 000 and $330,000 per year and the number came back at $300,000. COUNCILMAN ROCKOFF: Could I ask for a computation o£ that given to us, along with other computations that you're going to make so that we can a .... DICK BOTTI: Sure, I will do that. COUNCILMAN ROCKOFF: Okay .... DICK BOTTI: And there are a number of ways we could have handled that .... we could have addressed all the compensation that they would have made over time in addition to the $200,000 or $330,000, carry that forward with interest and, you know, the book- keeping becomes horrendous. That's their position and we tried to try to recognize the fact that they pay our having some contin- gent liabilities on their part in order to close the financial gaps and that's our recommendation. CAL HOLLIS: Madam Mayor and Councilman Rockoff, in addition draw your attention to the language there that says that that lease payment is reduced after the indebtedness to the Agency, for this development, is paid. And that's different than when the bonds are paid. As an example, if, by the point in time that the bonds are paid the Agency has not paid the City for its property, that is an indebtedness incurred to finance this development. The amount, this $700,000 payment, would continue until the City had been reimbursed for the cost of this property. So if we .... it was specifically written so that no reduction would take place until this development .... the books on this development, if you were, were cleared as far as the Agency's debts were concerned. COUNCILMAN ROCKOFF: Are you telling me that if we don't ever pay the City the $635,000, we, therefore, can continue to collect the $700,000 a year? Bakersfield, California, September 30, 1981 - Page 40 CAL HOLLIS: Well, the $700,000 would be applied to the Agency's debt, so that if .... let's say by the year .... let's say that the debt for this property cannot be repaid, the $635,000, plus whatever interest the Agency and Council had agreed upon, were not paid by that point in time .... the increment had not risen to that point or for whatever reason .... this payment at this level would continue applying that lease payment to the debt owed to the City. We wanted to be sure that this development paid for all of its debts before there was any agreement now provides for. COUNCILMAN ROCKOFF: rent reduction and that's what this Okay, I don't think we'll belabor it, but we will get the computations so that we can determine whether or not the rationale is fair. The next paragraph deals with the option of the developer or the department stores to purchase the proximate parking facility and I question how practical it is where you give an option to either the developer or the .... any department store to purchase a part of the parking facility, where the City or the Redevelopment Agency is still operating the other part. It just seems very impractical to me and I can see potential problems and it just seems that somewhere along line it has to be either/or. MURRAY KANE: We should clarify that the Agency does not own the parking structure and that the developer will be oper- ating the entire parking structure. All we are talking about in this particular case is the land, the ownership of the land under- lying the parking structure. So I don't think there would be any practical impact in terms of the ownership of that land. It would still be subject to the Reciprocal Easement Agreement and still be maintained and operated and paid for and supported along the .... exactly the same .... do it as before. It would just be---it would basically be a title transaction on the underlying land. Bakersfield, California, September 30, 1981 - Page 41 COUNCILMAN ROCKOFF: Okay, now I'd like to skip down to Paragraph C. It .... I guess is based, if, somehow Prop. 13 would be rescinded and property taxes were increased on the piece of property. That the developer and/or the department stores, whoever owned the physical property, could deduct from the amount that they pay as lease payment the additional property taxes that they would be assessed under a new property tax law. I have a problem with that in all honesty, because it gives them an advantage, I feel, over anybody else who going to be subjected to higher property taxes, whether it be somebody who is in the Redevelopment Agency and doesn't have that in his agreement or somebody who is not in the Redevelop- ment Agency and just has to take the new State law as it comes. find that I have a little problem with that type of rationale. MURRAY KANE: Madam Mayor and Councilman Rockoff, the Paragraph C on page 2 does indeed commit the developer to receive a credit in the event tax rates are increased and the Agency receives the additional tax increment thereby. However, at the top of the next page, Paragraph D, likewise gives the developer an additional obligation, above the $700,000 lease payment, in the event there are tax rate changes and changes in the tax law which diminish the Agency's tax increments. Clearly the agreement could be written one of two ways. Clearly the Agency could take back from the developer the right to receive the windfall of the new tax increment in the event tax rates were .... taxes .... tax rates were increased. However, if we did that we would also lose the protection of Paragraph B on the next page, in the event the tax rates were reduced. It seems to us that our primary purpose here is to present a fiscal package to the Agency, which contains maximum assurances that we're going to have the funds to pay off the debt that is established to bring about this project and finance this project. Therefore, we have considered it an advantage to the Agency to give up the windfall in return for the insurance policy, if you will, 0f additional lease payments in the event of reduction in tax increments, so that we 176 Bakersfield, California, September 30, 1981 - Page 42 can be assured that we would not suffer and would not be in default on our obligations in the event o£ these events. Clearly the agree- ment could be written either way and this is still an issue that is certainly appropriate for the Council and the Agency to consider. COUNCILMAN ROCKOFF: You know, I can only give my personal opinions since basically it's a gamble. I would certainly gamble on property taxes going up rather than down at this point. So that's only my personal opinion. CAL HOLLIS: Madam Mayor and Councilman Rockoff. The history behind this provision is Proposition 13. There are a number of Redevelopment Agencies that sold tax increment bonds, based upon agreements that did not have this provision, and those increment bonds are now suf£ering some difficulty. We didn't want to guess what was going to happen, say, 15 years from now, where we might have a whole new tax system. Crazier things have happened. So that that's why this is being suggested to you. We are looking at the long-term, not being able to forecast what's going to happen with the tax system and so we wanted to make sure that the credit rating of the Agency was protected here over the long-term. That's why this is being recommended to you and I personally am recommend- ing this provision. COUNCILMAN ROCKOFF: So since it could go either way the Council could make a decision as to which way we wanted to gamble. In paragraph F of page 3, I think they're dealing with the Daon Corporation's guarantee of the $700,000 lease payment and my question is should the center be sold before the three year period, does that guarantee still continue or does that then disappear? CAL HOLLIS: MURRAY KANE: It would disappear. It would continue only so developer owns the center. long as the Bakersfield, California, September 30, 1981 - Page 43 177 COUNCILMAN ROCKOFF: And the developer has the right to sell the center at any time, I assume. MURRAY KANE: Only upon the completion of the entire facility as agreed upon. COUNCILMAN ROCKOFF: MURRAY KANE: Yeah, Page 4. COUNCILMAN ROCKOFF: Do all Does that mean .... once it's finished. Okay. Going to the next page, of the provisions of Paragraph H continue with a new Owner, in other words participation in the cash flow and subsequent sales. MURRAY KANE: In the event of a sale, on Page 5, there is a provision for the formula to stop, however, only upon payment, by the developer, of 20% of the net profits realized in that sale. So that the participation formula, in the event of a sale, would not continue. However, the Agency would receive a one time payment equal to 20% of the net profits realized by the developer on resale. CITY MANAGER KELMAR: Just one other comment. I think what's important here is if the .... you know, we have to look at as well, as if the center is sold, that it would be sold at a substan- tially higher price, which would also, then, increase the tax incre- ment that would be coming to the Agency, because of the, you know, new market value. COUNCILMAN ROCKOFF: Believe it or not, I'm through, and I thank you very much. You've been very informative. COUNCILMAN MEANS: I think the discussion has been good in terms of the City getting a good deal on the specific agreement, but I think a number of things have been overlooked that haven't been talked about yet that I think present some problems, that I don't know if we can overcome. One of them, not to pre-empt your show, has to do with our ability to sell bonds, and I would like some discussion, from Mr. Rafferty, about our attempts to try and sell bonds in the near future, short-term bonds, and then what are we going to do and what are our chances of doing that. 17P, Bakersfield, California, September 30, 1981 - Page 44 JAMES RAFFERTY: My name is James Rafferty and my firm is Rafferty, Guerin and Company. We've had the privilege of work- ing for the City of Bakersfield on bond issues over a period of many years and we're under contract at the present time to work on the proposed issue here as a representative of the Redevelopment Agency. As recently as January this year, and possibly as recently as March of this year, the Redevelopment Agency, in my opinion, could have sold 10% bonds, which was a maximum rate of interest most of them could bear. Since that time there's been a serious deterioration in the bond market. Now there had been some adjustments. The Legislature has recently passed a bill permit- ting interest rates as high as 12% to be used. I don't know whether that bill has been signed by the Governor or not. But I don't know how germane that is to the present situation, inasmuch as the financing plan, that Mr. Hollis has discussed with you, in my under- standing is geared to a 10% rate and it also contemplates bonds being issued with a maximum maturity of something like 27 or 28 years. The interest rates have gone up dramatically between approximately July 1 and September l; high grade tax exempt bonds, the interest rate went up from 11½ to 14%. Now, obviously, this is a long ways from the 10% rate based on .... which this deal might hopefully be done. Within the last few weeks that shrunk to about 13½, but we're still a long way away. But the interest rates pattern is only part of the story. In effect there has been no market for long-term bonds. Investors are so afraid of the ultimate purchas- ing power of the dollar, that comes back to them in principal at maturity, that they are reluctant to lend. And I think that's matched in the real estate field by the reluctance of people to make long-term mortgages. As a result we have a problem of trying to find a way to do this at a rate of interest below the current market. Now this deal is a complicated deal, but in the years I've been in the business I've seen lots of complicated deals and most of them, Bakersfield, California, September 30, 1981 - Page 45 179 if there's a genuine need for the project, somehow get financed, and I think the way this deal has proceeded, that is likely to happen. The problems may be solved. Frankly, I didn't want to be in the position where everybody else there solved his share of the problem and then I was working to write a prospectus and offer the bonds for sale, there were no bidders for those bonds. And so I was the one that initiated the conversations with the Bank of America. Why did I do that? They are virtually the only bank, in the State, which is in the municipal consulting business. Many of the other banks are dealers in tax exempt bonds, they buy and sell them, some go into their own investment account, but they deal and sell others to insurance companies and other banks around the Country. The Bank of America, in my opinion, is the only one which you might call as a Financial Consultant, who is at one and the same time an investor or a consumer. There are large investment firms that are in the consulting business, and if they were to buy bonds they, of course, would try to resell them, but they wouldn't bid for the bonds unless they were reasonably certain that those orders were going to be there to provide the money. So, after some dis- cussion with your City Manager I decided that even though I have a contract to represent you that I would much rather be in a situa- tion where every means was exhausted to make this thing financially feasible and I wanted to talk to the Bank of America to see whether they would joint venture with us in the capacity as Financing Consul- tants. I have had preliminary discussions with them. They are interested in the situation, but I cannot represent to you, at the moment, that they are going to do this. The inhibiting problem is that they have recently taken on the job of becoming Financial Consultants to both New York City and the State of New York, and the Senior Vice-President of this department has just moved back to New York with the view of living there for a year to get this thing off the ground. The Manager of the department, another Bakersfield, California, September 30, 1981 - Page 46 Vice-President with whom I've been talking, is in New York at the present time. He has a date to visit with us, Mr. Hollis has alluded to this and Mr. Kelmar too. We're trying to meet in Los Angeles sometime next week. The purpose of that would be to give them a better understanding of this type of financing or these three types of financing, which are contemplated here. They are well aware of the general credit position of the City of Bakersfield and the Redevelopment Agency. They are well aware too, I think, through their Branch Manager here, the need for this project. But, .they want to go into it in some detail so that they can generate a type of Municipal Bond issue in which they would be willing to be an investor. They have a policy to bid on every ~unicipal Bond' issue, which they legally can bid on in the State of California. About the only ones they can't legally, bid on, I think, are, in some instances special assessments, but more specifically Revenue Bonds. Hopefully, then we would have a situation where they will meet with us and they will tell us that they not only will joint venture on the consulting end of this business, but that they will, on that issue in all probability, provide a buying bid. The bonds we contemplate would still be sold at competitive bidding. Somebody might bid a lower interest rate than they did. But, this business of short-term notes is a relatively recent development, because projects can only get off the ground in this way. As I said there is practically no long-term money. There was an issue that sold about two weeks ago with a Triple A rating in the State of Washington. It was $500,000,000.00, so it took all the underwriting capacity in the nation. Those bonds, with a Triple A rating, sold at a 15% interest rate, which for a bank in the, roughly, 50% bracket is the equivalent of a 30% yield. And that's the only basis on which long-term money was available. The Bank of America tell me that they have recently done a short-term note deal, on a one-year maturity. Now I don't know that one year maturity might be what they're talking about here or something longer than that, but the Bakersfield, California, September 30, 1981 - Page 47 interest rate was in the neighborhood 8%. If a note is used the object is to continue to refinance it at maturity, until such a t~me as the market accepts the paper at something like the 10% rate, based on which Mr. Hollis's feasibility study is done. I cannot tell you that the Bank of America is going to join me in this. It is possible that as they get deeper into the investigation they may find problems, but, frankly, it was the only recourse that I could see. I didn't want to be in a position where we offered the bonds for sale and no bid was received. I've been trying, with consider- able encouragement from your City Manager, to do everything we could to develop, what I call, a consumer-investor proposal. I hope that can be done. MAYOR SHELL: Thank you, Mr. Rafferty. Are there questions? Councilman Rockoff. COUNCILMAN ROCKOFF: In the case of the short-term financing, if for some reason we can't get a refinance at the end of a year, where are we? JAMES RAFFERTY: I think that the .... again I hesitate to even discuss this aspect since I don't want to put any words in the mouth of the representative of the Bank of America. But, I think in general the implication is that they would, again, invest and roll the bonds over, if necessary, to keep the project solvent. CITY MANAGER KELMAR: I would just like to comment on my personal feelings. I'm not sure that even a one year note would be acceptable as far as I was concerned. I think it would have to be of, you know, enough duration that we know we could at least get the project completed. MAYOR SHELL: Yes, Councilman Christensen you've wanted to be recognized. Did you want to speak on this? COUNCILMAN CHRISTENSEN: Well, I want to know whether all the rest of us were going through all our questions, and if we were, I would like to take about a 10 minute recess. Bakers£ield, California, September 30, 1981 - Page 48 MAYOR SHELL: All right, COUNCILMAN CHRISTENSEN: that we adjourn. MAYOR SHELL: Oh, question here. just one .... If not I would like to move just a moment, Councilman Means has a Yes. We'll recess for l0 minutes. 10:00 P.M. and reconvened at MAYOR SHELL: l0 minute recess. me that Councilman correct? It is l0 minutes after 10. We have had a Would you please take your seats. It seems to Christensen .... you had some questions, is that COUNCILMAN CHRISTENSEN: No, I'm .... MAYOR SHELL: You're finished .... Councilman Means, you had questions? COUNCILMAN MEANS: Yes, I have several different areas. Just to finish up with Mr. Rafferty. It seems that .... a major concern that I have is that, yes, we have reduced the City's liability, if you will, say maybe down to the $9,000,000.00 bonds, but with the extreme problems that we're having with bond market right now and any sort of deal we can put together with .... and working together with Bank of America .... in fact makes it more risky than ever before, is .... JAMES RAFFERTY: I wouldn't concur in that although I may be taking an optimistic view. I just interest particularly, assume when rates are twice what they've ever been before that someday COUNCILMAN CHRISTENSEN: MAYOR SHELL: l0 minutes. (The Joint Meeting was recessed at 10:10 P.M.) COUNCILMAN MEANS: I still have a number of questions. I want to know, is Mr. Christensen asking for a recess? MAYOR SHELL: All right, all right .... You'd like a recess? COUNCILMAN CHRISTENSEN: Yes. MAYOR SHELL: l0 minutes? Bakers£ield, California, September 30, 1981 - Page 49 we might get back to a more normal position. If the project can be financed on a short-term basis and can be rolled over until such a time as a lower interest rate than is now available can be obtained, I think that the~pr~ject could very easily be more ~cceptable than it was a year ago, when we talking of a 10% rate. COUNCILMAN MEANS: But, what do you estimate the number of times we are going to have to roll those over? JAMES RAFFERTY: Pure conjecture. That again depends on what the maturity is. But, I gather that most people expect the interest rates might go higher before this year is over, but most people I talk to do expect lower interest rates before 1982 is past. How much lower I don't know. I've been in this business 48 years. I thought I'd seen everything up until about 1970 and they've rewritten the book. COUNCILMAN MEANS: But, wouldn't you say that .... at least it appears to me, and I'm purely an amateur compared to your experience, probably anyone's experience, but it seems to me that because of having to deal with this short-term bond issue and any potential number of times we have to roll those over, that that increases the complexity of the deal and just by nature would then have to increase the riskiness. JAMES RAFFERTY: There's some favorable aspects to this type of financing. For example, the one deal the Bank of America has done, and I don't even know for sure what City, but I understand the rate was around the 8% rate. So that was to .... in this case it would be to provide the money to get the project under way, essentially to acquire the land. But that money would not all be paid out at one time and once the money is received, on bond delivery, until it's expended to acquire these parcels it's invested and you can invest it in government bonds for up to, I think, a three year period of time without running into some arbitrage restrictions and at the present time you could be making 6 to 7% on that money; it'd be a very sizable amount of money. Bakersfield, California, September 30, 1981 - Page 50 COUNCILMAN MEANS: If there are some advantages, there must be some disadvantages, otherwise, previously, we wouldn't have been considering the long-term bonds. JAMES RAFFERTY: Well, the disadvantages are, the Municipal Bond business has always been structured to finance something for a long period of time, so that the costs were known. For example, a great number of bonds are revenue bonds. They're sold with a contract with a bond holder that whatever utility rates are nec- essary to service those bonds will be charged the people. Now, if the interest rates are going up, it means you have a building situation where sometime along the line the Council has to bite the bullet and raise the utility rates. Under those circumstances it's much better if you have a lon~-term rate and you know in advance what the money costs is going to be for the life, useful life, of the improvement you're contemplating financing. So, it is possible, certainly it would be possible that you could finance this on a short-term basis and you might roll it over, I don't know, and find that we were in a period of perpetually high rates. Never been that way, but, as I say, we've got a brand new book. COUNCILMAN MEANS: So what are the risks? JAMES RAFFERTY: Well, I don't know all the risks. I haven't thought about the risks. COUNCILMAN MEANS: What are some .... JAMES RAFFERTY: But I think that, if for example, the rates went to 20% and hung there, you'd be in a position where you still, by rolling the bonds over, would almost certainly get lower interest rates for short maturities than for long maturities. As I've discussed with you, there is really no market for 25 to 30 year bonds. But there's still people that want to buy tax exempt bonds, but they want to buy short maturities. So, there is a strong market for short maturities at the present time and presumably there would continue to be a strong market for short maturities, until people felt that the uncertainties had been resolved and they Bakersfield, California, September 30, 1981 - Page 51 could afford to buy long maturities with reasonable expecta- tion that the dollars they receive back at maturity would still have good purchasing power. The problem is, at the present time, they don't know the degree of inflation and so they don't want to buy bonds, in many cases at 10% let's say, which is historically an enormous rate of return, because nobody knows what the inflation rate is and they suspect it would be quite high and that they would be a loser buying long-term bonds, even at a generous 10%. I don't profess to be an expert in the trend of money rates. That's another facility that the Bank of America, if they will join with us, will provide. They are loaded with economists, whose job it is to advise the bank on the trend of interest rates, so, they, in turn, can make their judgments when they're lending. As to the period for which they want to lend, in anticipation that the money would be coming back and conceivably be lent at a higher rate, where they might make longer loans, if they anticipated rates were going to go down, because they would like to freeze the present high pattern of interest rates for a long period in the future. CAL HOLLIS: Madam Mayor, Councilman Means,the question of risk, when you look at these bond issues, I think you have to look at what these bond issues are, what the structure of them is and what the security for each of the issues are. Let's say that an issue was sold, say a four year note was issued and take the tax increment note, what would happen in the event that you couldn't refund. You sell a four year note. The time comes to refund. You've pledged, when you sold the note, that you would use your best efforts to refund at the time that the bonds were then due. You have increments sufficient to pay the current inter- est on the notes, say at 10%, and you go to refund and'its at ~0% and you don't have enough increment to cover 14%. Ultimately, bottom line, the worst case position to the Agency is the Agency goes to the current holders of the bonds and say we cannot refund. Bakersfield, California, September 30, 1981 - Page 52 It's impossible. We don't have enough revenue. Can the bond holders look to the City to make those payments? No. Can the bond holders foreclose against Agency owned property? No. All you are pledging is property tax revenue that comes to the Agency. That's all you have to pledge and that's all that you're guarantee- ing that the bond holders that you will give them. So, then the bond holder is in the position .... the bond holder took the risk at the time he purchased the bonds. You will fully disclose everything to the bond holder, believe me, at the time when you go to issue whatever financing you go to issue. The bond holder will then weight that risk and he will decide, for himself as an investor, yes I'm willing to take the risk that the money will be there and no I'm not willing to take the risk. He takes the risk and the Agency issues the bonds to him. The time comes to refund the note. You go back to the bond holder and say, we can't refund the note, but we're perfectly happy to continue our obligation to you under this .... under these bonds. We will roll those bonds over, continue paying you the interest that we can afford to pay you and we will give you another covenant that we will refund this bond issue at such time as we are able to. Again, it's a bond holder's risk. That's why the bond holder is being paid interest, because he's taking a certain amount of risk and you're relying upon a bond holder with proper knowledge to determine what risks he's willing to take. To look at the lease revenue bonds, you're in primarily .... practically the same position. You have pledged lease revenue. The City has obligated itself to a specific amount of lease paymenu, and that lease payment is equal to the debt service on the notes that were sold. The City is not saying at the point in time when these notes are to be refunded we will pay whatever we need to pay to allow the Agency to refund. That's not what you're promising to do. You're promising to make a specific payment, which is a debt service on the notes. Time comes to refund those notes, if Bakersfield, California, September 30, 1981 - Page 53 187 the City .... if the Agency, again these are Agency bonds, is unable to refund those notes they go back to the bond holder again and say we can't refund these notes. We will be happy to roll them over, continue to pay what we have in the past and promise to use our best efforts to refund in the future. Again, those are risks that the bond holder takes, just as you as a private investor looks to various alternatives you have to invest your funds and you decide what risks you are willing to take. The third bond issue, the assessment issued bond, again, the City has absolutely no risk. Under those bonds you are not obligating the City to pay one dime on those bonds. The property owner, in that case, is at risk. The property owner has pledged a security for those bonds, his property. So, that a decision that's .... one point where the property owner, in this case the retail center, is at risk. Again, you as an Agency have no funds committed to those bond holders. You, as a City, have no funds committed to those bond holders. So, when you say, what are the risks, there are risks that the Agency would default on those bond issues and that's a risk that you're asking the bond market to take and that's their prerogative. Your decision is, do you want to allow them to take that risk or will you prefer not to allow them to take that risk, if it comes to issuing short-term notes. JAMES RAFFERTY: There's another aspect to this, which would be considered. There are insurance companies insure prin- cipal and interest on Municipal Bonds. If the default occurs the bond holder gets paid. He turns over his defaulted coupons or his defaulted bond at maturity and the insurance company takes the risk. The premium for this insurance is relatively moderate, assum- ing that they think that the bond is a sound security and many of the largest insurance companies have grown .... have come together in two particular groups and this type of insurance is offered. It will be, at least, discussed here when a decision is made as to what the security instrument will be, because it does indemnify the Bakersfield, California, September 30, 1981 - Page 54 actual purchaser against not getting punctually paid. But, some- body bears the risk, but it will be an insurance company who is attuned to the risk pattern. COUNCILMAN ~EANS: Is there a risk that .... say we get a short-term note, for whatever length of time .... say 8%, is there not a risk at the end of that 2, 3, or 4 year period that it would be difficult to get a .... to sell a bond issue for under 10%, assuming the interest rates continue to rise? JAMES RAFFERTY: Well, I think that will always be a prob- lem, if interest rates continue to rise, as to what degree you would get accepted. But, by and large, short maturities, with rare exceptions, always sell at substantially longer yields than long maturities. As I illustrated in the "K" Street .... which the Bank of America has recently done .... the rate is 8% and I don't think that long maturities could be sold below, let's say, 13%, just to pick a number out of the air. COUNCILMAN MEANS: But again, it is conceivable, if interest rates in general continue to rise, that we could be in a position, assuming a 3 year note where short-term interest .... our interest for short-term bonds, could be above 10%. JAMES RAFFERTY: COUNCILMAN MEANS: JAMES RAFFERTY: I think that is possibly true, yes. And our deal is based on .... There is no .... I don't think anybody can give you assurances that the market will not be in such catastrophic condition that there won't be problems in the future. COUNCILMAN MEANS: My point is, Mayor, that that's one of the risks and one of the disadvantages of the short-term bond issue rather than a long-term bond issue. JAMES RAFFERTY: I think if the Bank of America gets interested in this project and coincides with the security that's to be issued that they, in effect, can be depended on to bid for the bonds. Now, they are not going to normally pay an interest rate below the market rate. So, the future pattern of interest Bakersfield, California, September 30, 1981 - Page 55 rates is something that nobody can be protected against. That's why so many bond issues have been withdrawn and projects are not going forward, because there is no long-term availability of money, and the idea of possibly talking to a short-term loan here is to fund a project, if the City and the Redevelopment Agency and your citizens think it's essential, it is a way to get the project done. COUNCILMAN MEANS: Thank you. I have another question on the land acquisition. What are our most recent .... I might say you .... I think it was Mr. Hollis had mentioned .... somebody mentioned the discussions of the land acquisition costs as broken down here and those were based on an appraisal that was done .... when? .... now at this point. CAL HOLLIS: Madam Mayor, Councilman Means, those appraisals were completed, I believe, in July and we escalated those an additional three months. So, they are as current as they could possibly be at this point in time. Those are based on appraisals by appraisers commissioned by the Agency as recently as, I believe, July of this year. COUNCILMAN MEANS: And then you .... excuse me then you extrapolated, did you perhaps .... CAL HOLLIS: Yes, yes we did. We escalated them based on the escalation in property .... the escalation rate in property in Downtown Bakersfield in the last six months as provided by the appraisers. COUNCILMAN MEANS: So, what you did is you took from January to July and then .... CAL HOLLIS: No, we took, firm, took the appraisals that were excuse me, we, meaning our done in July, which were .... which gave us July values, escalated those at the rate the property increased from January through July. COUNCILMAN MEANS: Correct. CAL HOLLIS: Those represent what we think to be current values, if you will. Bakersfield, California, September 30, 1981 - Page 56 COUNCILMAN MEANS: But, isn't it true that there's at least a pretty decent chance that as .... after the UDAG Grant was turned down and then the Council went ahead and proceeded when it looked like we were putting together a deal that didn't require public financing or the UDAG Grant. and at least in the public's mind as it became more apparent that, in fact, the deal might go through, that the land costs would escalate much much faster than they had prior to that time. So, in fact, the land values have continued to go up more as it gets closer to us putting together a deal? CAL HOLLIS: Madam Mayor, Councilman Means, appraisal hasn't been done, as of today, I can't give answer on that. I have been told that there's property offered in the downtown area which is somewhat less than what fhe appraisers were estimating. That's all I can tell you. I couldn't tell you how fast they escalated since July, because we don't have any data that supports that. COUNCILMAN MEANS: You .... I would appraisal values of the property. It seems potential area that we're looking at in acquiring the land and squabbles over what the land is worth, and certainly a lot of our confidence that the whole process is going to go through is based on how close those appraisals are to actually being able to settle. CAL HOLLIS: Madam Mayor, staff has received appraisal reports by the appraisers that were selected by the Agency. All these appraisers were local appraising companies that the City has .... as I understand the City has relied upon in the past in its acquisition. So, those reports are available, I assume, with the City staff or Agency staff. COUNCILMAN MEANS: I would like that information avail- able to us, so that we have a pretty good idea of, in fact, that process and what's going on. because an you a definitive like information on the like that is another Bakersfield, California, September 30, 1981 - Page 57 1'91 CITY MANAGER KELMAR: Exactly what are you talking Councilman Means? apprised through, about , COUNCILMAN MEANS: I'm talking about, I want to be of .... during that process, assuming that this would go of the negotiations that goes on with the City, how much the City is going to pay for that land down there on each particular property owner. Each particular property is going to be trying to get as much money for their property as they can. Isn't that correct? CITY MANAGER KELMAR: You're saying, if this goes through? COUNCILMAN MEANS: Yes. If we decide to proceed with this, with the agreement, then we begin to acquiring the .... acquire the land we're going to have to deal with each particular .... individual property owner, correct? CITY MANAGER KELMAR: That's correct .... COUNCILMAN MEANS: and we're going to have to arrive at some mutual agreed amount of money that that property is worth .... CITY MANAGER KELMAR: That's correct .... COUNCILMAN MEANS: then what happens? MURRAY KANE: In and if we don't arrive at some agreement, the event that we cannot acquire the a public to acquire done by a property through negotiation, the Agency would then conduct hearing and consider the filing of an Eminent Domain action the property at its fair market value and this would be trial through either a Judge or a Jury. UNKNOWN: All right, that's correct. COUNCILMAN MEANS: That's as I understand it. And if, in fact, our appraisals were off some considerable amount, for whatever particular reason, of course we assume that they are not and that's why we have had .... hired the three appraisers that we did, and we were off substantially with a number of property owners; in fact, we could be tied up for quite sometime in acquiring that property, isn't that correct? Bakersfield, California, September 30, 1981 - Page 58 MURRAY KANE: No, in terms of the time it would take, the Agency would deposit the amount of its appraisal into court and obtain an Order of Immediate Possession. The amended Joint Development Agreement provides for the transfer, by the Agency, of that pretrial Order of Immediate Possession to the developer and that is financeable and the title insurance companies will insure it and they can begin construction, allow the Eminent Domain action to proceed. COUNCILMAN MEANS: Right, thank you for correcting that. But, in fact. the risk has to do with the amount of money that we .... MURRAY KANE: The dollar risk is there .... COUNCILMAN MEANS: That the risk is that we could incur higher payments for those properties than MURRAY KANE: Yes. COUNCILMAN MEANS: And, in fact, in cur. we have appraised. that's the risk that we MURRAY KANE: That's correct. COUNCILMAN MEANS: Thank you. MAYOR SHELL: Do you have any more questions, Councilman Means? I have a couple of questions. On this provision, Mr. Kane, on Attachment 2, page 2, on the credits against lease revenue payments in the event that the taxes will .... increments would be substantially higher, et cetera, et cetera, couldn't any property owner .... isn't that unequal treatment, tax treatment, which .... wouldn't there be a constitutional question there, of unequal tax treatment? MURRAY KANE: No, in our opinion there would not. Basically, we are trying to put together an economic transaction and the different treatment of this developer as opposed to other developers revolves around the different risks and obligations that this developer is assuming and obligating himself to in order to carry out the development. And basically, many of the provisions in this agreement have been negotiated solely to give the Agency the Bakersfield, California, September 30, 1981 - Page 59 financial basis it needs to pay off its debts. In the event we don't need, you know, certain funds to pay off our debts, it's within our purview to forego receipt of those funds. So here, we're not just talking about the payment of property taxes under the prop- erty tax system. We're talking about the allocation of risks and the allocation of cost between the Agency and developer, which is permissible under the Redevelopment law. MAYOR SHELL: I don't know who could answer this. It's about relocation of people who are .... their businesses are in this area. Say they have a property that is clear or they have a property on which their loan is like 8% or a low percentage and in the process of relocating these people, if they, in an equal, I presume and equal building of equal size, etc., comparing costs today, construction costs, etc., if .... does the Agency pay them for extra interest that they might incur, interest rates? MURRAY KANE: In this particular development the answer is yes. There are .... at the time the last amendment to the Redevelop- ment Plan was brought before the Agency and the City Council, in the Agency's report to Council there were a number of provisions that were added regarding the relocation of businesses that went beyond the minimal requirements in the State law. specifically address itself to that problem, a real problem faced by people displaced by The State law does not but it is, nevertheless, the project, as is the question of extra property taxes, because if they stayed in place you know, they would be limited to a 2% per year increase. But, if they're displaced they would be, you know, they would be paying the full fair value, based on the fair value of the new facility. Both of those, which are real concerns to displacees, have been addressed and we have provided funds and budgeted funds and put provisions in this particular development to pay those particular extra costs, which might be incurred by displacees. MAYOR SHELL: That's included in the relocation figures? 194 Bakersfield, California, September 30, 1981 - Page 60 MURRAY KANE: Yes, that's in presented to the Council by the Agency Plan. the relocation plan that was in the last amendments to the that additional increase in property taxes. I assume there's some sort of a settlement that's made on some sort of an assessment that's made of the additional property incurred for the life of the building of a settlement on that estimate? tax that are going to be and then you make some sort CAL HOLLIS: Madam Mayor, Councilman ~eans, yes, typically you agree with the property owner on a capitalized an~ upfront pay~ent, which settles that obligation. The Agency has made the use of the firm Port & Flor, who provide .... who they .... relocation experts do a great deal of redevelopment relocation work and other public agency relocation work throughout the State. They were the ones that have prepared the relocation budget that are includ- ed in our analysis. They had originally .... the original budget, they budgeted a certain amount originally, prior to the time that the amendment took place and those extra relocation provisions were added. We then showed them the extra relocation provisions that the Council added to the plan and they substantially increased the relocation budget to select that. I can't into the specifics of how they made their calculations, but they did take those additional requirements that the Council adopted into account in preparing this relocation budget. COUNCILMAN MEANS: Yes, I would like to know how that calculation was made as to the differential on the property tax. I mean his increase in property taxes are going to go on for the entire life of the building and .... MURRAY KANE: Councilman Means, if I may, as I recall there is a formula in that plan, which had a cutoff after a partic- ular period of years, which I think was either 10 or 15 years, but MAYOR SHELL: I see. Thank you. Councilman ~eans. COUNCILMAN MEANS: I had a question on how you estimate Bakersfield, California, September 30, 1981 - Page 61 let us get that information to you and refresh our memory on the exact formula. MAYOR SHELL: Any more questions from members of the Council, members of the Agency .... AGENCY MEMBER FOTH: I have .... MAYOR SHELL: Yes, Mrs. Foth .... AGENCY MEMBER FOTH: Yes, my question is to Mr. Donahue. What is the amount that the other department stores are paying to you the developer for their pad sites? DAN DONAHUE: Well, each one of them is different. First of all the negotiations with the Penney Company .... first of all in no case are the negotiations completed. We have letters of under- standing with them, but the Penney Company would be a build-to-suit, where we will build for them. May Company will be building its own building on land that it buys from us, and Gottschalk's currently is doing the same thing. Now Gottschalk's has asked to take a look, in the future, at us building the building for them. It depends on the market rate of interest at the time that we actually go into construction. AGENCY MEMBER FOTH: What amQunts are they paying for this property? DAN DONAHUE: Excuse me, I couldn't hear you. AGENCY MEMBER FOTH: What is the dollar amount that they're paying for this property? DAN DONAHUE: I can't recall specifically. I believe it is in the City's breakdown of costs. AGENCY MEMBER FOTH: I see. It wasn't in any of the infor- mation that I have, that I saw at least. Does someone have that? UNKNOWN: Do we have that price .... AGENCY MEMBER FOTH: In other words that is where some of from, from the stores for their pad your upfront money is coming site. DAN DONAHUE: Yes, yes. 1.96 Bakers£ield, California, September 30, 1981 - Page 62 know and I about AGENCY MEMBER FOTH: who this question would be directed to, but, think probably Cal Hollis could answer this. the developer being generous and paying more, What is the amount .... and I don't Madam Mayor, We've talked I only notice .... I thought it was only 500,000, which isn't an only a number, of course, but nonetheless more than what was deemed to be the value of the property. Yeah, I'm thinking in terms of this amount that we said that the reason we're going .... falling back from 700,000 to 300,000 at the expiration of the bond issue, when it's paid off. We're saying well they've paid all this money and they've paid extra at the front-end of the project. How much extra at the front- end? MURRAY KANE: of .... we should include While they are checking into those specifics in that figure of the extra $350,000 for the developer has made available to the Agency at our sole discretion to use as a loan. The extra obligation of the $200,000 a year assess- ment district and the big one is the assumption by the developer of the complete financing of the parking structure, which is a big difference from the previous agreement. All these, of course, have to be added, you know, taken into account. AGENCY MEMBER FOTH: Is it possible that we could come up with some kind of a figure that would be, may be, more in the realm of realism for that number? A percentage of the fair market value rather than to say $300,000 or the fair market value, which- ever is less. CAL HOLLIS: MAYOR SHELL: CAL HOLLIS: Madam Mayor .... Yes Mr. Hollis. If this .... this is acceptable because it is a rather complicated answer. How much more are they paying than what we feel is the minimum they should be paying. What we would like to do is to provide you with the detail of calculations and come down with the bottom .... a bottom line number. We can make that available to you at the same time in which we make available Bakersfield, California, September 30, 1981 - Page 63 the other information that's been asked by the Council and Agency members, i£ that's acceptable. AGENCY MEMBER FOTH: Sure, that's £ine. MAYOR SHELL: Do you have another? AGENCY MEMBER FOTH: I have one last question and this was, like Art said a while ago, this may be one of the little small things, but I felt was important and I did ask about it earlier. I felt that the Certificate of Insurance, required by the Agency, of the developer is really inadequate. I think it's a million dollars and I thought---I've been involved in projects that have been $400,000 projects for road work and have had to have more than that, so far as insurance coverage is concerned. MURRAY KANE: Yes, we would be happy, that's a good point which is well taken, and we would be happy to look into the feasi- bility of extracting a higher amount of insurance. This is insurance while the builder is building the developer's buildings. Just in case anyone would name the Agency and the City as codefendants in such a lawsuit, even though we're not constructing and it's not an Agency construction contract But we would .... we are going to look into increasing that amount. AGENCY MEMBER FOTH The Certificate of Insurance would be important to have. MURRAY KANE: Yes. AGENCY MEMBER FOTH I have no further questions. COUNCILMAN MEANS: Yes, I had a question of Mr. Donahue. I've heard that the City got such a good deal on negotiations that you're going to make little or no money, is that correct? DAN DONAHUE: Let's rephrase the question, Mr. Means, or rephrase the statement. A lot of the fun's gone. To say that we're going to make little or no money, I don't think that we're a charitable organization. I have not worked eight years to not make a profit and I think we're entitled to make a profit. I think that that profit will be made, though, upon the ultimate sale of the shopping center and will not be made out of the cash flow of the Bakersfield, California, September 30, 1981 - Page 64 center, but I think that's the difference. Whereas, in the past other opportunities in other communities would result in much larger annual cash flows of .... predicated upon the financing market as it exists today, diminished. COUNCILMAN MEANS: DAN DONAHUE: In COUNCILMAN MEANS: the annual cash flow is considerably Thank you, I .... other words it's a lot less. I like the way you got right to the heart of the matter of going to make some money out of the deal is by ing .... ultimately selling the center. I think point out, because I think that .... points out, that .... it seems that the best way you're selling the .... sell- that's important to at least where some of my concerns ment Agency not only come out ahead of mall that we're proud of and continues purchasers of the bonds are assured of the City is not stuck with something. are, in that the City not only .... and the Redevelop- the deal, but also have a to make money so that the getting their investment and DAN DONAHUE: I think there's two ways to look at it, if I might take just a few more minutes. The financing markets, as has been alluded to in the bonds, are in chaos; whether their financing market is for a single family home or whether they're for a shopping center or whether they're for bonds for General Motors. We are obviously going to have to use new techniques, techniques that have heretofore, maybe, never been used in this Country. Daon has been successful in Canada in public syndication. There is now on the street public syndication issues here in this Country. When I say that I mean that the large underwriters sell shares to individuals like yourself and like myself who may have 5, 10 or $15,000 to invest and in return for that they get .... they own a percentage of the shopping center, if you will. That is one viable opportunity. Certainly the rumors, the gross, the sugges- tions that the pension funds are going to be the savior of develop-- ment in the United States is another opportunity. The ability to Bakersfield, California, September 30, 1981 - Page 65 199 attract offshore funds might yet be the third opportunity. It's going to be .... maybe a combination of those three that is going to ultimately provide the total debt. As we see it right now, none of us has a crystal ball. 1966, making residential a lady one time and tell 6% and that st~ loan was, I recall starting in this business in loans and the rate was 5½% I had to call her that the rate had bumped from 5½ to therefore, going to go up and she claimed that it would going to create all kinds of economic chaos in her family. Her family survived, her home escalated and she ultimately bought that loan from the company that I was representing. We have all found a way to survive in unusual economic times. I can assure you that there's going to be new techniques and the ways of getting insurance company monies, in the past, are long gone and that we're going to have to change our ways and we are taking that into account in this transaction. CAL HOLLIS: Madam Mayor .... COUNCILMAN MEANS: Only in rebut would I like to point out that also this year, I believe, we have the highest bankruptcy rate among small businesses then we've had in quite some time. In addition people are unable to buy homes like never before, because of high interest rates. I'm sure that the immediate period in front of us offers us a unlimited opportunity. I think, in fact, it warrants a certain amount of common sense in making investments. MURRAY KANE: Absolutely, I would concur 100%. MAYOR SHELL: Mr. Botti, do you have some .... DICK BOTTI: Yes, I would like to just make a couple comments that I think are appropriate. I think that we have to be very careful when we talk about the connotation of a sale and that many people think that if developer, in this case, sells the center there's something wrong with the center. What we're really seeing in the money market is a two-tiered system, by which, if he as an owner goes out and tries to secure some sort of long-term debt today, he will be faced with the long-term of 13 or 14%. There are, however, 2OO Bakersfield, California, September 30, 1981 - Page 66 a whole series of buyers out there, which will buy the project, based upon a 9½ or 10% rate of money and these are offshore funds, pension funds. There are legitimate buyers who will buy the property on a long-term basis, but will simply accept a lower rate of return than the traditional lenders, because they have property appreciation. There's certainly nothing wrong with these buyers. The discussions I had with Mr. Donahue and other developers in Southern California is that given the current money market conditions and given that you are not willing to accept a 9½% rate of return, which no developer should, you effectively will have to become merchant builders that sell your product upon completion or nothing will get built. So, I think some of the implications that Mr. Rafferty talked which will affect the financing of the municipals is also affecting the financing of real estate. It is a different market, but the need to sell the project is just a potential need if he cannot find long-term debt in the l0 to 12% range is something that I think all development is going to take sooner or later. MAYOR SHELL: I'd just like to say that we ask a lot of questions, but I think that the .... I can't speak for anyone else, I can only speak for myself, but I'm very concerned that the City and the Agency can meet its financial obligations with- out going to the taxpayer. We have to have confidence in our own economic growth in this area and I think that people here do have confidence, but we have to be pretty well sure that we're going to be able to meet those obligations on the annual basis and that's why we're asking a lot of questions. the advisors to the City to look in in a conservative manner, because I We're relying, very much, on that direction and to advise us don't think anyone on this Council would like to be in the position of having to go to the taxpayers of the City of Bakersfield saying "we can't meet this and so we're going to have to somehow get it from you," so that's why .... one of the reasons we're asking a lot of guestions. I have just one more. If, in the event we could not sell the bonds, how Bakersfield, California, September 30, 1981 - Page 67 many months would the developer wait? Say .... is there a time there .... how long would you wait for the City to sell those bonds or the Agency, I beg your pardon? DAN DONAHUE: I don't know what's called for in the contract off the top of my head. MAYOR SHELL: It's in there, I guess. DAN DONAHUE: Yes, it is. MAYOR SHELL: Yeah, okay. DAN DONAHUE: If you cannot .... but I think that we would have to take a look at where we are .... if the markets were moving downward and it were a matter of 30 to 60 to 90 days, I think all of us would be well advised to extend the contract. In other words, if I have the right, at that point in time, to extend it, we would probably do that. If, for example, the markets were moving the other way though, it might be in our best interests to say "it doesn't appear at in the foreseeable future that the markets are going to be any better and there is, in fact, no way to finance it." So it's really a question that we're going to have to answer when, in fact, that day happens and I really can't give you a specific 90, 30, 60 day period of time. I really think it depends on where the markets are going when we're faced with that decision. MURRAY KANE: Yes, I just wanted to mention that the schedule of performance calls for a 90 day period for the Agency to sell the bonds, so there'd be no way for the developer to term- inate prior to that period. CITY MANAGER KELMAR: Well, I'd just like to comment that from my perspective I would have some, you know, serious concerns if this time period went for, you know,----I can't say offhand how long, but I think we would need to take a serious look at re-evalua- ting the appraisals and the relocation costs and all of our costs to see, you know, if it went over any extended period of time, because, you know, there is speculation going on and everyone is aware of it. It could affect, you know, the economics of ~he project 202 Bakersfield, California, September 30, 1981 - Page 68 and I think any period of time that would be significant I think we need to take a real hard look at, you know, the economics of it. MAYOR SHELL: Anymore? I will entertain a motion to adjourn the Council and then Chairman Casper would entertain a motion to adjourn the .... COUNCILMAN CHRISTENSEN: I so move. AGENCY MEMBER UNKNOWN: I so move. MAYOR SHELL: Councilman Christensen has moved that the Council adjourn, all those in favor please say Aye. (All the Council stated Aye). Opposed (no response). So ordered. AGENCY CHAIRMAN CASPER: The Redevelopment Agency stands adjourned. We don't need a motion. ADJOURN~ENT The Special Joint Meeting of the Council and the Bakers- field Redevelopment Agency adjourned at 10:55 P.M. MAYOR o~Ci~f Bak~ Calif. ATTEST: ~CLER~ ffic~ CITY Ex of the Council of the City of Bakersfield, California ma/cw