Loading...
HomeMy WebLinkAbout07/18/2002 B A K E R S F I E L D Mike Maggard, Chair Harold Hanson Mark Salvaggio Staff: Darnell Haynes MEETING NOTICE BUDGET AND FINANCE COMMrI'rEE of the City Council - City of _Bakersfield Thursday, July 18, 2002 4:00 p.m. City Manager's Conference Room, Suite 201 Second Floor - City Hall, 1501 Truxtun Avenue, Bakersfield, CA AGENDA 1. ROLL CALL 2. ADOPT JUNE 20, 2002 AGENDA SUMMARY REPORT 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Discussion and Committee recommendation regarding request from Kern County for the City of Bakersfield to provide sewer services to the Rexland Acres neighborhood - Tandy 5. NEW BUSINESS A. Discussion and Committee recommendation regarding Kern Economic '. Development Corporation (KernEDC) funding request - Tandy 6. COMMITTEE COMMENTS 7. ADJOURNMENT S:',Darnel~002Bud&FinanceCom mittee~bf02jull 8agen.doc B A K E R S F I E L D . t..--- Mike Maggard, Chair Alan Tandy, City Manager Harold Hanson Staff: John W. Stinson Mark Salvaggio A~ENDA SUMMARY REPORT 'BUDGET AND FINANCE COMMI'n'EE MEETING Thursday, June 20, 2002, 4:00 p.m. City Manager's Conference Room, Suite 201 Second Floor, City Hall, 1501 Truxtun Avenue, Bakersfield, CA 1. ROLL CALL Called to Order at 4:05 p.m. Present: Councilmembers Mike Maggard, Chair; Harold Hanson and Mark Salvaggio 2. ADOPT MAY 16, 2002 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS 1. Discussion and Committee recommendation regarding application of the business license ordinance to commercial and residential rental property businesses (Committee Chair Maggard acquired a new client and may have a conflict of interest, so he excused himself and requested Committee Member Salvaggio to chair in his absence on this-item.) Greg Hanvey, Bakersfield Board of Realtors, stated the Board is in agreement with the City on the proposal presented to them regarding the business license issue and the reference to the definition of Section 469 on the .exemption form. DRAFT Budget and Finance Commi~ee Meeting Thursday, June 20,2002 Page -'2 - Chandler Wonderly, representing Bakersfield and Kern County Apartment Associations, stated they are also in agreement, but would like to make one clarification on the form. Where it reads, "Considered a passive investment in the rental of Real Property under Internal Revenue Code Section 469" add the wording: or, under California Revenue and Taxation Code Section 17551 or 17561. The Committee adjourned this issue at 4:15 p.m. to allow the City Attorney to research .this section of the California Taxation Code. The Committee reopened 'this item at 5:18 p,m., with Committee Member Salvaggio as Chair in Committee Chair Maggard's absence on this item. City Attorney Thiltgen stated he reviewed Sections 17551 through 17561. His ' opinion was that Section 17561 was the only one applicable, but the intent of this section referring to hours of work/passive investment does not have the same intent as that of .the Committee and he did not recommend changing the form. City Manager Alan Tandy explained the amendment to the ordinance and this form, if adopted, will allow those owners of rental properties considered to have a passive investment to be excluded from. the business-I cense tax. If the Committee does not take this action to amend the current ordinance, every owner of lease or rental units will pay the business license tax without exception. It was discussed this is nOt a new tax. It is being viewed as a new tax because the City did not enforce it due to the small license fee not being cost effective. New computer technOlogy now provides the information and staff is aware of those owning rental and lease properties and subject to the tax under the current ordinance, which has been in place for years. The Committee unanimously voted to recommend to the City Council adoption of the amendment to the business license ordinance (which allows those who claim their real estate investment as a passive activity under Section 469 of the Internal Revenue code to fill out a form and be exempt from business license tax). The amended ordinance along with the form to file for the exemption will be forwarded to the City Council for adoption on July 10th. (Committee-Chair Maggard absent). 5. NEW BUSINESS A. Discussion and Committee recommendation regarding request from Kern County for .the City of Bakersfield to provide sewer services to the Rexland Acres neighborhood City Manager Alan Tandy explained the background for this request. Staff was working with another Council Committee to put together a program to rehabilitate two of the City's older, pools (Jefferson Park and Martin Luther King, Jr. Center) and build a new aquatic center. As a part of putting together the budget estimates, it was DRAFT ~udget and Financo Oommi~ee Meeting Thursdag, duno 20,2002 Page -3 - discussed that Jefferson Park pool is surrounded on three sides by the County. It is a Block Grant eligible neighborhood and at that Council Committee's direction, a letter was sent. to the County asking for. $300,000 financial assistance from the County's Community Development Block Grant funds for rehabilitation of Jefferson Park pool. The City-has taken several past actions to assist County projects: $1.5 million for the Airport; $450,000 for Lake Ming Bike Path; budgeted $250,000, whiCh is under design, but not yet constructed the streetscape in front of the Kern County Museum; and a.pending budget application for $80,000 for Stramler Park. The City received a response from 'Kern County (included in the packet). Their position is they would like to help but would only be able to help if some of their block grant money now committed to pay the cost to get sewer service from Rexland Acres ~to their treatment plant were freed up. In essence, if they did not have to spend their block grant money-for the Rexland sewer system, they could help us with the Jefferson Park pool project. The City has an ordinance that we will not provide sewer service outside the City limits unless there is annexation. The City Council has the power through an intergovernmental agreement to make an exception to that ordinance. We have one in the northwest called CSA 71. Staff outlined the set of circumstances if the Council were to make an exception and provided service to Rexland Acres, and it applies all normal and customary City fees and requires the County to obligate itself to the connection fees, trunk line'fees, and to the annual operation and maintenance fees. County Administrative Officer Scott Jones had replied by letter the terms are acceptable to the County. There is a downside to taking this action. Even though the County agreed to the language, it establishes a precedent. It could be interpreted as being a potential trend and one that would make it less likely for other neighborhoods to annex in the future. County trunk lines and City trunks lines are somewhat different and, consequently, you reserve capacity for trunk lines and never get the revenue streams to reimburse the Oity for the reserve capacity. Many subdivisions in the County are going to have a saturation problem and this action would set a precedent. On the positive side, it would provide sewer service to a Iow-income neighborhood with severe sewer problems with saturation of the groundwater table. The County has been trying to do something for many years. They have grants committed to alleviate it. It is less expensive to tie in to the City plant.than the County plant. If the City accommodates the-County, out of their savings they would help the City with the Jefferson Pool rehabilitation. Dave Price, County of Kern, stated Mr. Tandy had explained the situation very clearly. There's a considerable amount of savings by going with the City's sewer service. When the County was first contacted about Jefferson Park pool, the Fifth District allocation for Community Development Block Grant funds was already obligated with a number of active projects. It will be 30 days before the County receives confirmation, but expects USDA assistance of grant money as well as some loan money. If the area would annex, that funding would be lost as cities are not eligible. ORAFT Budget and Finance Committee Meeting '- Thursday, June 20, 2002 Page --4 - David Strong, County of Kern, spoke about public meetings that were held with the residents in the area who are very supportive about getting sewer service in Rexland Acres. Committee Member Hanson spoke regarding' County islands and not wanting to set a precedent of providing services to unannexed areas adjacent or within the City limits but he noted, however, the City has assisted with other projects and there is danger to the groundwater table and health concerns for the residents of Rexland Acres. Committee Member Salvaggio provided examples of County islands needing sewer systems: Castro, which is the-largest island in ~the City; Kern; and Old Stockdale. City Manager Alan Tandy stated the residents in Re~xland Acres have sewage at ground level in their back yards, which is very compelling. Ideally, the Board of Supervisors would take the lesson learned from Re×land Acres and require sewer service (not dry lines) in all County subdivisions, so this does not reoc~cur. If this were done, the City would be more comfortable in helping. CSA 71 is a test area, but it is a small area. It is problematic to the City that this is going to happen again and again, until the County routinely requires installation of sewer service in all its subdivisions, not just dry lines, with trunk lines to connect the dry lines to treatment facilities. Committee Member Salvaggio requested staff to provide a complete paper trail of the letters between the City Manager and the County on the Rexland sewer service/JefferSon Park issue. He also requested copies of the administrative reports and; if possible, a copy of a past memo outlining the reasons the Council adopted the ordinance, which provides that the City nbt provide sewer service to unincorporated areas. He felt without further study, he would not want to make a recommendation different from the current ordinance. Committee Chair Maggard stated that if there is no cost to the City to provide this 'service to Rexland Acres; if we are not using capacity that will have to be replaced and the cost passed on to City taxpayers; and if the County is paying for the capacity to be replaced, it is a somewhat compelling argument that the City should do this to improve the quality of life for residents of Rexland Acres. However, he would like further information from the City Manager whether this will create a scenario where we are doing a series of these in unincorporated areas. The Committee decided to discuss the issue further after staff has .provided the paper trail documents requested by Committee Member Salvaggio. 6. COMMITTEE COMMENTS Committee Member Salvaggio spoke about a letter received from Vernon Strong regarding the Bakersfield Senior Center/Senior Housing Project on 4th Street. There was also a letter from HUD to the developer, Richard Washington, approving an extension for the project to November 30, 2002, with the requirement the proiect start within this time frame or will be subject to cancellation, or further-extensions will require approval by HUD and progress on the project should be shown. The City DRAFT Budget and Finance Committee Meeting Thursday, June 20, 2002 Page - 5- received a letter from Dr. Lark, Bakersfield Senior Center, regarding funding to close the .purchase of needed properties. Committee Member Salvaggio requested the status of the project and if there were any concerns the Committee should address. The City Manager stated the City's part of the project is to buy the needed properties for the site through the federal grant process. Most of the other transactions are between the Senior Center and the developer. The City is negotiating for the properties and making acceptable progress. The final acquisitions will require movement of money between Federal grant categories New Home Funds Construction to. this project due to adjustments to appraisals and relocation assistance not originally included for one property. This will be handled administratively and brought to the City Council for approval 'on the Consent Calendar. 7, ADJOURNMENT The mbeting adjourned at 5:55 p.m. Staff present: City Manager Alan Tandy, City Attorney Bart Thiltgen; Assistant City Manager John Stinson; Assistant to the City Manager Darnell Haynes; Public Works Director Raul Rojas; Finance 'Director Gregory Klimko; Public Works Civil Engineer Derrill Whitten; and City Treasurer Bill Descary. Others present: County Administrative Officer Scott Jones; Esther Torres, David Strong, Dave Price and Charles Lackey from .County of Kern; Chandler Wonderly, Bakersfield Apartment Association; Greg Hanvey, Board of Realtors; Cassie Daniel, Bakersfield Board of Realtors; Michael Freedman, Kern County Apartment Association; Stephanie Campbell, Cornerstone; and James Burger, reporter, The Bakersfield Californian. S:~)arnell~2002Budand Fin\~bf02jun20sum mary,doc B A K E R S F I E L D OFFICE OF THE CITY MANAGER MEMORANDUM July 8, 2002 TO: Budget and Finance Committe~ FROM: Alan Tandy, City Manager SUBJECT: City Services to County Areas In response to our request to provide financial assistance for the Jefferson Pool rehabilitation, Kern County countered with a request to provide sewer services for the Rexland Acres area. I have attached copies of the correspondence between Scoff Jones and myself on this subject. I have also attached copies of Administrative Reports which indicate that if any such request is made, City policy requires the property owners to record a covenant binding current and future owners to take steps toward annexation prior to a connection to City services. This information is provided to you for review in preparation of the regularly scheduled meeting of July 18, 2002. Attachments BAKERSFIELD Alan Tandy · City Manager May 21,2002 Mr. Scott Jones County Administrative Officer County of Kem 1115 Truxtun Avenue Bakersfield, CA 93301 Dear Scott: We are in receipt of your letter of May 2"d concerning Jefferson Pool and the Rexland Acres subdivision. We also thank you and your staff members for visiting us on this subject on May 13th. ' To recap, the City asked the County, after we funded the County Airport ($1.5 millien), the Lake Ming bike path ($450,000), the streetscape in front of the Kern County Museum ($250,000), and a budget alloCation for Stramler park ($80,000 - not yet approved by City CoL~ncil) for $300,000 for the Jefferson Pool from County block grant funds. You have responded by saying the County might be able to do that if the City provides sewer services to Rexland Acres. In an ideal-world, the four unilateral actions of good faith might be enough to prompt the County to respond positively to a pool.to serve lower income County residents without further conditions. Nonetheless, we want to cooperate on what now becomes a faidy complex issue. The City of Bakersfield has an ordinance in place which directs that we do not provide sewer service to areas that are not annexed. We have sent a delegation to Rexland Acres in the past and offered sewer service with annexation, which we would continue to offer. There are several reasons for the ordinance: 1) One-is the failure of previous efforts to make these types of agreements work. In CSA 71, the City reserved plant capacity and agreed to.serve a County area. With the exception of one test area, the County has not adopted, standards' that result in the construction of sewer trunk lines, so there have been almost no connections. The plant capacity that is reserved is being paid for by the City but without reimbursement from users. Homes are built on septic tanks', and down the road, the contamination that exists in Rexland Acres will exist in CSA ?~ also. The City therefore believes CSA 71 is a failure. City of Bakersfield · City Managers Office · 1501 Truxtun Avenue Bakersfield · California · 93301 Scott Jones May 21, 2002 Page 2 2) There is the issue of precedent. The County of Kern, through today, continues to allow urban density subdivisions.on septic tanks - a future time 'bomb exactly like Rexland Acres. The only difference is how long it takes for the ground to become saturated, the septic tanks to fail and the groundwater to become contaminated. If the City bails out the error made .by the County in Rexland Acres, where does it stop? There have been 30 years of County subdivisions built since Rexland, many of which will eventually have Rexland's problems. If we bail you out here, the likelihood is we will be asked to bail out the many others .when saturation problems become severe. We would prefer to See the County deal with the long-term problem by requiring sewer service. 3) The-City has found that giving specific services away is a deterrent to annexation. It allows ~groups to take what they most strongly desire, but not to annex for efficiency and consistency of services. The City Council could 'make an exception to its ordinance for Rexland Acres through an intergovemm'enta! .a~jreement. The above issues would be the negative concerns. The offsetting argument,, of course, is that Rexland 'is a Iow-income area, and our Council does wish to cooperate with the County. Staff cannot predict how the Council would ~decide given those competing interests. Nonetheless,· it seems beneficial to format the general terms of an intergovernmental agreement with you so the .parties would know the conditions they were voting on at the time the decision is reached on varying from the policy. Based on our discussion of May 13~, the following would be the general terms: 1) The City would allow for the 688-homes in Rexland Acres to flow to Treatment Plant #3 under our intergovernmental agreement. 2) The County would obligate itself to pay the full amount of the connection fees within nine months.after the physical connection, and 25% of the total should be paid at the time of the connection. Those fees are $2,400 per residence in 2003 and $2,500 in 2004. 688 homes x $2,400 = $1,651,200 or 688 x $2,500 = $1,720,000, depending on time of connection. 3) The County would also pay the City the trunk sewer fee for that area of '$400 per acre x 150 acres, or $60,000. 4) The CoUnty would obligate itself to paying the annual costs for the 688 homes'for our operation and maintenance charges at the out of City rate as it wo~ld be Scott Jones May 21, 2002 Page 3 established for each year. It-is currently $146.25 x 688, or $1'00,620 annually. In most years, there is an inflationary increase added. This amount to be adjusted per Item 5), below. - The County would own and maintain the lift station and the lines serving Rexland Acres. To offset the costs associated with that service, the rates billed Would be at 79% of-the above rates (2t % in our system is normally allocated to the costs for services you are providing) or $119.85 x 688 - $82,456.80, plus future increases. 6) Only the 688 homes in Rexland would be served. There-would be no additional connections to the system, and ~both .parties would agree in the document that this is a one-time action for special circumsta:r~ces. This does net establish a precedent for future cases. If these are a correct summa~j of the terms, ptease let m'e know and we will ask the Budget and Finance Committee of the City Council to start deliberations on the policy issues. - We respectfully ask that the Jefferson Park funding move forward based on our four past actions of funding County projects and because the .project has the medt to stand on its own. Sincerely~...__._ Alan Tan City Manager cc: Honorable Mayor and ,City .Council Dave Price, Kern County Resource :Management Agency Chuck Lackey, Kern County Director of Engineering and Survey Services Bart Thiltgen, City Attorney Stan Ford, City of-Bakersfield Recreation and Parks Donna Kunz, City of Bakersfield Economic and Community Development Dept. 05r02/02 T~IU 16:11 F~_I 661 868 31g0 Kern CA0 ~]001 Kern County Administrative Office County Administrative (:enter 1115 Truxtun Avenue, Fikh Floor · Bakersfield, CA 93301-4639 SCOTT E. JONES Telephone 661-868-3198 ' FAX 661~868-3190-' TTY Relay 800-735-2929 County Adminis~ive Officer May 2, 2002 Alan Tandy, City Manager City of Bakersfield 1501 Truxtun Avenue Bakersfie~Id, CA 93301 RE: Proposed City/County Cooperative Projects Dear Alan: This responds to your letter of April 24 recessing consideration of a $300,000 financial contribution from the County to cover 50% of the cost for rehabilitating the :lefferson Park swknming pool located in Southeast Bakersfield. We are very appreciative of the City's past participation in joint, cooperative projects that have benefitted our citizens. County staff is p~pared to recommend Board of Supervisors' approval of your proposal, using Community Development Block grant funds allocated to the Fifth Supcrvisorial District, in conjunction with your considcratibn and approval of another City/County cooperative project which has previously been discussed with your staff. Supendsor Pete Parrs is supportive of this reciprocal coop¢i'ation proposal. The concurrent City/County cooperative project for which-we are requesting City approval, at no cost to the City, entails the connection of the Rex.land Acres area of Southeast Metropolitan B',ukersfield to the City's existing sewer system. Residents of the Rcxland Acres area would pay sewer connection fees to.reimburse the City for the cost of constructing treatment plant capacity, and sewer service charges would pay for.the r~lated operational costs. Another option for reimbursing the City is the possibility of exchan~ng sewer flows between the Kern Sanitation District sewer system (to accept more sewage from City residents) and the City sewer system. As you know, the two systems already share a common trunk line and sewage diversion structure. We hope that you and the Council will consider the following compelling circumstances: 1. A grant application to' the U.S. Department of Agriculture (Rural Development Loan and Grant Pro.am) for the construction of Sewer infrastructure for the Rexland Acres area is currently pending. If approved, this grant is expected to provide $4.8 million in grant funding and $1.5 million in loans for sewer system construction.. In order to qualify for these Federal grant and loan funds, the .area must be unincorporated (thus-precluding immediate · 05.70~/02 T~.U 16:12 FAX 661 868 3190 Kern CAO ~002 Alan Tandy,.City Manager Ma)' 2, 2002 Proposed City/County Cooperative Projects Page 2 annexation). Further, there is no means of.financing the project absent these grant/loan funds. 2. Approval of.the City to connect to your sewer system would save approx}_mately of the total.pro, ct cost, and would reduce the project cost to a level that likely can be funded within the expected grant amount. In addition to directly benefiv, ing the public, this will also improve the chances for grant approval. 3. If the Rexland Acres ~ea is ever annexed to the Cie/, the sewer infrastructure will already- be constructed and funded. 4. Providing the necessary sewer infrastructut~ will prevent further deterioration of groundwater quality in the area, and will improve the general appearance of an area immediately adjacent to .City boundaries. 5. We can see no disadvantages or costs to the City related to the sewer connection proposal. I hope you will favorably consider this proposal, in concert with our favorable consideration of your funding participation request for Jefferson Park. This appears to be a rare win-win-win opportunity for the City, the County, and the citizens we serve. I am available at your convenience to meet with you and discuss these proposals in greater detail. Sincerely, Scott E. lones County Administrative Officer SE J/randy9 cc: Members, Board of Su~rvisors Harvey Hall, Mayor, City of Bakersfield Bakersfield City Council Dave Price, Director, R~source Management Agency Charles Lackey, Director, Engineering & Survey Services ..- BAKERSFIELD Alan Tandy · City Manager APdl 24, 2002 Mr. Scott Jones County Administrative Officer County of Kem 1115 Truxtun Avenue Bakersfield, CA 93301 Dinar Scott: In a letter to the County-of Kern Board of Supervisors dated February 5, 2002, the -Community Services Cbmmittee of the Bakersfield City Council requested financial assistance with the rehabilitation of Jefferson Pool. That particular facility is block grant eligible, as it serves a Iow income neighborhood. It is also surrounded on three sides by un_annexed portions of Kern County. A copy of the letter is enclosed. I am writing this letter at the request of the Committee. We have not yet received a response to the letter, and .they asked that I call several things to the attention of County officials. In the spidt of intergovemmental cooperation, the City of Bakersfield has done the following for Kern County projects in recent years: 1) Given $100,000 for lighting improvements to the Kem County soccer complex outside the City limits; 2) Pledged $250,000 for the streetscape in front of the Kern County Museum; 3) Pledged $1,500,000 for the new terminal at the Kern County airport; 4) Committed $ 450,000 to building a bicycle path around .Lake Ming.outside of the City limits; 5) Tentatively placed, in our draft budget, $80,000 to purchase playground structures in the County owned Stramler Park. City of Bakersfield · City Manager's Office · 1501 Truxtun Avenue Bakersfield · California · 93301 .. " Scott Jones April 24, 2002 Page '~ The Jefferson Park project is a perfect candidate for continuing this Pattern of cooperation, given its direct service to County residents and its eligibility for federal funds. We hope it is given favorable consideration. Sincer y, /-- J Alan Tandy City Manager cc: Honorable Mayor and City Council Dave Price, Kern County Resource Management Agency Stan Ford, City of Bakersfield Recreation and Parks Donna Kurtz, City of Bakersfield Economic and Community Development Dept. BAKERSFIELD C AL I~FO RN IA February 5, 2002 CITY COUNCIL The Honorable Peter Parra ~,'~eyI..~,,, Kern County Supervisor ~t, yo,. 1115 Truxtun Avenue Bakersfield, CA 93301 Mark Salvaggio ~u:e-Mayor Irma Carson D ear ~arra; Ward 1 " The Community Services Committee of the Bakersfield City Council met on Susan~B~n~n January 25t" on the issue of City swimming pools and aquatic needs. We are Ward2 seriously exploring, th~ rehabilitation and enhancement of many of the aging Ma~e~ City i~ools using Proposition 12, block grant, and other available sources. ward3 We have identified at least $4.5 million in very real needs in this area - our Proposition 12 allocation is less than half of that. David Couch ward4 The Jefferson Park pool is the most heavily attended among all City facilities ~,~]dw.~nso,, with over 10,000 users per summer. An attendance report is attached for war,ts reference. It is also used by East, .Foothill and Highland High Schools, as well as the Riptides Swim Club. That pool is also unique in that it is JacquieSum~a~ surrounded on three sides by unincorporated areas of Kern County. It is our w~ belief that the attendance at the pool, in all likelihood, has a citizen usage from unincorporated areas at well over ¼ and-probably ~A of its patronage. Jefferson Pool also has the highest repair costs for Code-related items of any pool in our system. A report is attached on the Code-related items only. In addition to the Code-related repairs, we would like to enhance it and make it better by adding a slide, spray areas, and perhaps even more water surface. The combined cost is currently estimated at $600,000. The City and County have made great strides in recent years in the area of intergovernmental cooperation. The City has financially assisted the County on the new airport terminal, and is planning to provide some new play equipment at Stramler Park. The County offered (,when it was active) some assistance to the City regarding the City Center project, and there are numerous other examples. 1501 Truxtun Avenue · Bakersfield, California 93301 · (661) 326-3767 * Fax (66D 323-37110 The Honorable Peter Parra Page 2 We know money is tight and times are difficult for all. We, however, are facing $4.5 million in need. Since Jefferson serves a very large portion of County residents, we respectfully'request, that you consider providing 50% of the. $600,000 repair and enhancement costs. PropOsition 12 monies are eligible and the area is certainly within eligible census tracts foruse of block grant funds. A pool that serves over 10,000 per summer, and three high schools! How perfect a statement it would be to jointly fund. What a wonderful dedication ceremony and statement to the community it would .be about our ability to work .together! Please give this important issue Y?~onsideration. . ' Ja~quie Sullivan, Chair . ~1 .._~a (.;arson Sue Benham Community Services ~ommunity Services Community Services Committee C(~mmittee member Committee member cc: Kern County Board of Supervisors Scott Jones, Kern County Administrative Officer Dave Price, Kern County Resource Management Director Alan Tandy, Bakersfield City Manager Stan Ford, Bakersfield. Recreation and Parks Director Donna Kunz, Bakersfield Economic Development Director ADMINISTRATIVEREPORT TO: Honorable Mayor and City Council APPROVED FROM: Carol Williams, City Clerk DEPARTMENT ttEAD.~~~ DATE: August 27, 1993 CITY AttORNEY N/A CITY MANAGER SUBJECT: Ordinance amending Section 14.04.030 of the Bakersfield Municipal Code relating tO water service to County residents. (Wards 1-7) RECOMMENDATION: Staff recommends adoption of Ordinance. ' BACKGROUND: There are many instances whereby owners of property in the unincorporated area request connection to the City Domestic water system. This Ordinance reinforces City policy requiring property owners of unincorporated areas to record a covenant binding current and future owners to take the necessary steps toward annexation prior to connection to the City system. The Ordinance make City requirement for water sendce consistent with other utility services presently provided by the City. The City Council adopted a similar ordinance for sewer service to County residents on April 28, 1993. The City of Bakersfield Water Board at its August 3, 1993 Special Meeting reviewed this ordinance and covenant and recommends city Council adoption of the Ordinance requiring the recording of a covenant. · This Ordinance was given first reading at .the Council meeting of August 25, 1993. ~z SP_~CCI.DB 1993. 10:.26a m '~' ,~ ~' 93-07 W.B. 3 5 6 0 AN ORDINANCE AMENDING SECTION 14.04.030 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO WATER SERVICE TO COUNTY RESIDENTS. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Section 14.04.030 of the Bakersfield Municipal Code is hereby amended to add the following subsections: 14.04.030 Connection to property in unincorporated areas. E. Whenever an application is made for a water connection to the City-owned system for property in an unincorporated area, the City Director of 'Water Resources is authorized to enter into-an agreement for such connection in accordance with this chapter. F. For such properties which are adjacent-to the City, the property owner must enter into a-nd record a covenant binding him or her and all future property owners to take all necessary steps to immediately annex the property served by City water to the City. G. For such properties which are not adjacent to the City, the property owner must enter into and record a covenant binding him or her and all future property owners to take all necessary steps to annex the property served by City water to the city at such time as the City becomes contiguous' to his or her property, or the law otherwise permits such annexation. SECTION 2. This Ordinance shall be posted in accordance with provisions of the Bakersfield Municipal Code and shall become effective thirty (30) days from and after the date of its passage. ooOoo · I ReCording requested by and for the benefit of the CITY OF BAKERSFIELD When recorded return to: CITY OF BAKERSFIELD Department of Public Works 1501 Truxtun Ave. Bakersfield, CA 93301 Space for Recorder's Use Only CITY OF BAKERSFIELD Bakersfield, California COVENANT REQUIRING ANNEXATION THIS COVENANT is executed on this day of ,199_, by .(hereinafter "Owner/s") in connection with the extension of water service to the h~re-in described property, located in an unincorporated area of the County of Kern. The real property herein described has been granted water service by the City of Bakersfield, even t-hough the property is not located within the incorporated boundaries of the City. As a condition of extension of said. water service to this property, the property shall be annexed into the City of Bakersfield as soon as it may be included in an annexation which is contiguous to City boundaries. The property owners hereby waive their right to protest such annexation and shall take all necessary steps to immediately annex into the City the property served by City water once said property is contiguous to City boundaries. The City reserves the right to discontinue water service if the property does not annex into the City. This covenant may not be amended or modified without the prior approval of the City of Bakersfield. This covenant shall run with the land. Property description: OWNER(S) CITY OF BAKERSFIELD Gene Bogart, Water Resources-Director NOTE: All signatures must be notarized. 14.04.030 extent of the utilizing equipment or operations for which This contract shall at all times be subject to such the city is supplying water service shall immediately give changes or modifications by the City of Bakersfield as the 'city written notice of the extent and nature of the said city may, from time to time, direct in the exercise change, of its jurisdiction. D. Use of Water Without Application for Service B. Bill for Service. On each bill for service there Having Been made. Any person or f'u-m taking possession will be printed substantially the following language: of and using water without having made application to If this bill is not paid within fifteen (15) days after the city for service shall be held liable for the full amount presentation, service may be liable to discontinuance. A of the service rendered, cash deposit and a reconnection fee may be required to E. Whenever an application is made for a water reestablish service. connection to the city-owned system for property in an Should.the amount of this bill be questioned, an expla- unincorporated area, the city director of water resources nation should be requested from the city. If an explana- is authorized to enter into an agreement for such connec- fion satisfactory to the customer is not made by the city tion-in accordance with this chapter, and the bill is still questioned, the customer may deposit F. For such properties which are adjacent to the with the City of Bakersfield, City Treasurer, 1501 city, the property owner must enter into and record a Tmxtun Avenue, Bakersfield, California 93301, the covenant binding him or her and all future property amount.of the bill to avoid discontinuance of service. owners to take all necessary steps to immediately annex Make remittance payable to City of Bakersfield and the property served by city water to the city. attach the bill and a statement setting forth .the basis for G. For such properties which are not adjacent to the the dispute of the amount of the bill. The Water Depart- city, the property owner must enter into and record a ment will review the basis of the billed amount and covenant binding him or her and all future property disburse the deposit in accordance with its findings. owners to take all necessary steps to annex the property C. Customer's Deposit Receipt. Each receipt for served by city water to the city at such time as the city cash deposit to establish or reestablish credit for service becomes contiguous to his or her property, or the law will contain the following statements: otherwise permits such annexation. (Ord. 3560 § 1, 1993: 1. Upon discontinuance of service, the city will Ord. 3504 § 1, 1992: prior code § 1.46.030) refund the customer's deposit or the balance thereof in excess of unpaid bills for that service. 14.04.O40 Contracts. 2. After the customer has, during the period of time A contract, as a condition precedent to receiving the deposit is held or for twelve consecutive months; paid service -from the city, will be required under any of the all bills for service, within fifteen days after presentation, following circumstances: the City will refund the deposit. A. Where required by provisions in a filed rate 3. Should the customer establish credit initially by schedule; deposit and subsequently by other means in accordance B. When a ;main extension to be made under the with Section 14.04.060 and then .request the remm of his provisions of Sections 14.04.140 through 14:04.230 deposit, the city will return the deposit. (Ord. 2585 § 1, requires an advance for construction; 1980: prior code § 1.46.0,50) C. For temporary service supplied under the provi- sions of Section 14.04.130; 14.04.060 Establishment and reestablishment D. For standby service or service requiring the of credit. payment of an availability fee; A. Establishment of Credit. Each applicant for E. For any service to be furnished.at rates or under metered service will be required to establish credit, which conditions other than the rates set by the city; will be deemed established upon qualifying under any F. Under any circumstances where a contract would one of the following: benefit the city and is directed to be prepared by the 1. Applicant is the owner of the premises upon director of water resources. (Ord. 3504 § 2, 1992: prior which service is requested, or of other real estate within code § 1.46.040) the city's service area; 2. Applicant makes a cash deposit to secure pay- 14.04;050 Special information on forms, ment of his water bills as prescribed in subsection A of A. Contracts. Each contract for water service will Section 14.04.070 under "Amount to Establish Credit;" contain substantially the following provisions: 3. Applicant furnishes a guarantor satisfactory to the city to secure payment of his water bills; 471 HONORABLE MAYOR AND CITY COUNCIL September 3, 1993 Page -4- Staff believes that adequate efforts have been made to accommodate the developers and that the decision of the Planning Commission should be upheld. DEFERRED BUSINESS I~em llai' Ordinance relatin~ to ~ater Service to County Residents. lhis Ordinance ~s g~ven Ii,st Read~ng at the Council Meeting of August 25, 1993. T:hts Ordinance reinforces City policy requiring property owners of unincorporate~ areas to record a covenant binding current~ and future owners to take the necessary steps tpward annexation prior to connection to the City system. This requ~rementis consistent with other utility s~rvices presently provided by the City. I -I~em 11b. Ordinance relating to Prezonin9 proper-ty southwest of Calloway Drive andBrimhall Road (.CallowayNo. 6). This is the Ordinan~ewhich provides for the prezoning of Calloway No. 6 annexation. The Ordinance was given First Reading at the August 25th City Council Meeting. Item 11c. Amendment to Land Use Element of the 2010 Plan from LR to HMR on 8.5 I acres at the southwest corner of District 'Boulevard and Gosford Road. At the last meeting, the Council directed the City Manager's Office to ~hold a neighborhood meeting to see if the two parties' interests could be accommodated. That was done on August 1st. While the issues were not resolved, the property owner and neighbors agreed to work together over time to see if common ground could be found. Based on that, staff recommends terminating this proceeding. We will work with the two interests in the hope that a positive solution can.be mm found. Items 11d.~ e.~ f.~ 9. and.h. Formatio.n of Special Assessment District (Stine- I Harris). These items pertain to the formation of a special assessment district. The Stine-Harris portion of the district provides for the design, construction and acquisition of street, stormdrain, sewer and parksite improvements. This portion was deferred from the August 11, 1993 Council Meeting, and is being resubmitted with a letter from the developer, St. Clair Development, accepting responsibility for street improvements on Panama Lane along the Arvin-Edison Canal. In addition, the California Avenue/Oak Street portion of the assessment district is being included to provide for construction of curb, gutter, sidewalk and on additional lane of traffic along the north side of California Avenue west of Oak Street. It also includes a commercial cul-de-sac street with access to California Avenue and modifications to Freeway 99 northbound on-ramps and adjacent t-raffic signals. Item 11i. Draft Letter to the Planning Commission. During Council Statements at m~ the August 25th Council Meeting, the Council asked staff to draft a letter for Council's consideration -which would bring to the Commissioner'S attention Council's concerns and expectations. We have drafteda letter, as requested, for mm your consideration. B A K E.R $ F I E L D ' .... m, ....:. '.. , .' ' .. ~,~:. .,' ...',-. ' ' "~,:.' ' L,'..?..,: '-.. '.'~:~":~: ~,~'i:!!~' :~ ".' ~ :~.'i,~i iii??!i:?!:~!~.-~ :,:::~ :.'.': ;: '~':i.: ':.' ": · ?*,~Jt!~;~i~1993~:';~ " .... TO: ;.DO~,':'NATER AND SANITATION ~AGER "~ ~::.. r:.T' " B~ART' DIRECTOR- Of NATER RESOURCES <'::-" ? FR~: TANDY, CITY ~NAGER '...: . SUBJECT: 'ICE I-SSUES;~, . .~ . ' ,,::;~ ,~'.. . ,:. .'-" '~ ;~.,': . ~?' . -.'.:'~.~, '~ InfOrm ~fch c~e ou~ of:'~he Pecen~ NaCeP Board ~ee~i.n9 was of great -tn~eres~ on ,~o levels. '.... . .. ? .;..~: .:... ~ . . .... First, we::~.Ve recen~l~ enacted an Ordinance which~e_~_ in us ~nl~ P~!~.:': : recor~'~~~eO'~~e~ter understanding of what we are-doing foP.  wa~e? ~er~-~e"aQ.~' ~ether or nO~::We 'shouldn't' follow"a.:similar path for Dro~h-.~~ - re.]aceo i)j~es,.'ln connection with water. . ~-..' '-~'..: : '.' :.~.?":. ..... . ~ ...' .:~{~ ~.:.., :, ,'.'.... ~;'~>:.~?~:. :' .:~ ,.. ':.:.~: ?:. .:. ::':'.:-: ..;..: ':. ::. ,...... ,..???.._ f' '~" . ~:~. ffi If':.yOU:.'have t~:~~~-- to know what our co~iments e in that~:..rega, rd and what flexibil~in. ... :'.your · coope , "-"tnfo~a~i°~'I ~ill ~an~ a ~ee~tn9 wt~h ~he a~oPneys ~o discuss ouP options :'regard';~o~h aPeas mentioned above. . '. '. ~. ~. :. ~/'.: .. ~ ~.:, ~ ': ,, ~. . ';.~:'~',,;~: ':-,,..:. · Y~ ni '":':: ::'::... ~ .'~ ,'~: ~- - ~ ' ".- :' ,: ~' . . . . ' ?T '..." ,...::'~.:, . ' . ~ :;~"':?"' ~ . . · ~":-"~.~:~. :~. ~ . .~.' ....~. .:.:[; ,.": ." .. . '... .... ' . . ~..?~,~..; ., ? . ..... : · .... . .....' . . ~ .' ' ADMINISTI TIVE REPORT AGENI:IA SEC?XC)H: New Business AGENDA TTEMZ TOs Honorable Mayor and City Councileeab~rs KEAD~~ FRC~ Ed schulz, Public Works Director DATg~ ~rch 31, 1993 Cl~ A~~~ CX~ S~CTz O~Lnanco ~end~ng Section 14,16,020. of tho ~korsf~'eld aun~cl~l C~o rola~ing to S~or So,ice to County be. IdahO, :f.~ (Wa~ 1-7) ~TX~t I~ff ~~ first ~.; . ~x~f ~oFo are uny L~ancoo vho:eW ~e~ of pro~y unLnco~Fa~' area r~es~ co~oc~ion ~o CLW 8M:I, .~LI. ~inanco reinforces C~ty ~K~ r~iring ~ro~y ~e~ of ~lnco~rat~ area r~o~ a covenant binding current ~ future ~o~ to take a~exation prior to t~ s~or A co~ of the Coverer is at~ch~, for roforemo, . Apl4~l.n 1~01 Trmm~ CITY OF BAKERSFIELD BakzrsfizM, CO~~ ~~G ~~ON ~S CO~N~ is excited on t~s ~ ~y of ,1~ ~ (hereina~er, ~er/s') in ~e~ion ~th the e~e~ion of sewer se~ to ~e herein- . ~fi~d pro~, l~ted in an u~n~rated ar~ of the Co~ of ~e re~ pro~ herein-de~d h~ ~en ~ant~ s~er ~ ~ ~e CiW of ~e~el~ ~en ~u~ ~e ~~ is not l~ted ~n ~e CiW. ~ a ~n~on of e~e~ion of ~d sewer ~ to pro~ shall ~ ~nexcd into the Ci~ of ~c~Cld ~ ~n ~ it may ~ i~clu~ ~n~ to Ci~ ~un~fi~. ~e pro~ o~e~ herc~y waive their ~t to protest such ~eu~on. ~s ~vcnant may not ~ amended or mo~ed ~thout ~e p~or approv~ of the Ci~ of ~c~cl~ ~s ~en~t shall ~n ~th the lan~ Property c~scription: Bakersfield, California OWNER(S) CITY OF B~ ED W. SCHULZ, Public Works Director NOTE: All signatures must be notarized. ii NORABLE I~¥OR ANO CITY COUNCIL /~rtl 9, 19~3 Page -4- of an Ordinance ~e~at~ng [o m~ne~al ~gh[s and subdivisions, It appea~s to be noncontroversial, as va~ous ~ssues have been worked ou[ w~th ~he co~un~ ~ es. ~ n to E~m~nate "Collector" Oes~anat~on of Berkshire Road. It~ 1lb. Reso~ut'o . - ~m~nate Th~s 3s , the "co]lector street" designation of Berkshire Road be~n 5outh "H" Street and ~ble Road. The Resolution was not in proper fo~ at the :~ the Counctl took th~s vote, so th~s ~s a ?nf~m~ng 'action necessary under State law. N~ ~S!NESS Item. 12a. .. nO ~n ~ ~ ~o go ~hrough O~d~nance which ~ends ou~ Codes so tha~ developers a C.U.P. p~ocedu~e ~n o~de~ to have temporary mode] h~e sales offices. Th~s al]o~s model hom~s by ~ght, unde~ ~m~ed t~me constraints. Th~s ~s an action ~o ma~e ou~ development ~egu] at~ o~s mo~e acceptable ~o ~e deve] opmen~ countrY, and mo~e ~easonable. ~e ben,eve i't has been, and w~]] be we~] ~ece~ved. . ' nce Prezonin- Pro-eft." West of Call.ay Drive _b~ Ros~da)e Item 12b Ord3na y zoning and should be Highway an ,, ~oncontrover s i al. Item 12c. Ordinance relatin~ to Soecial ~ellin Setbacks· This would be a new Ordinance regarding setbacks along fre~ays and railroads. Currently, we have no special requir~ent for those circ~stances and 5-foot setbacks are possible. This has been taken through the BI-A and the Planning Co~ission. It would impose a minimum setback of 30 feet. 'providing s~er service to County residents, tn the past, the C~ty Council approved the provision of sewer services to County residents and later criteria were adopted ~ch allowed the staff to do so. : ·" therefore, there is no obligation on properties to annex to the C~tY ~n' exchange for the sewer service. ~ts Ordtnanie ~,~]d require thm~a~d"civena~t be put on '~i-~ ~h~ 'l'~nd"i~ :r-ecet~O'~'~r 'S'iFv{'~. ~erefore, the P'F°V~'s~n service under this Ord~.nance oecomes an enhanc~nt to future annexation procedures, rather than the detriment tt currently ts. This concept has had very ltt:le discussion at Counctl level, but the s:aff has been ~rk~ng on tt and has c~ up with ~at I believe ts a reasonable solution to a probl~. ~e would like this to be adopted by the City Council so that tt ts clear.to applicants required of th~ to get service. ADMINISTRATIVE REPORT April 28, 1993 AGENDA SECTION: Deferred Business AGENDA ITEM: 11 .d', TO: Honorable Mayor and City Council APPROVED FROM: City Clerk DEPARTMENT B e~r f/i~ld DATE: April 12, 1993 CITY SUBJECT: Ordinance amending Section 14.16.020 of t.he Municipal Code relating to sewer service to county residents. (Wards i - 7) RECOMMENDATION: Staff recommends adoption of Ordinance. BACKGROUNDs There are many instances whereby owners of property in the'unincorporated area request connection to City sewers. This Ordinance reinforces City policy requiring property owners of the unincorpor~ ar~e~t~ko_rgcord a covenant binding current and future owners ~o est ~2'~.O~..' "afllleXa{~o~ prior to the sewer connection. This Ordinance was given first reading at the meeting of April 14, 1993. AP28CC4.DB, 4/16/93 9:09am AN ORDINANCE AMENDINO SECTION 14 . 16 . 020 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO SEWER SERVICE TO COUNTY RESIDENTS. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. -Section 14.16.020 of the Bakersfield Municipal Code is hereby amended to read as follows: 14.16.020 Connec~ion to property in unincorporated areas. A. Whenever an application is made for a sewer connection to the city-owned sewer system for property in an unincorporated area, the city engineer is authorized to enter into an agreement for such sewer connection in accordance with this chapter. B. FOr such properties whic~ are the property owner must enter him or her and all future property owner~'~'6':'take all ~ecess&ry steps to i~,~ediately annex the propert~se~ed~ the city sewer to ~ne city. C. For such properties ci.ty~ the property o~er must ente'r"'"~'~"~nd bi-nding him or her and all future property o~ers to take all necessa~ steps to annex the property se~ed ~ the city sewer to the city at such't~as the city ~co~s ~ti~s.~o his or her property, or' the law'othe~ise pe~its such annexation. SECTION 2. This Ordinance shall be posted in accordance wit.h provisions of the Bakersfield Municipal Code and shall become effective thirty (30) days from and after the date of its passage. o0o .......... I W~.WRRy CERTIFY .that the foregoing Ordinance was passed and adopted by the Council of the Ci~p%% ~ersfield at a regular meeting thereof held on , by the following vote: AYES: C, OUNC~3.~£~,~Sc_RS ~ IEDWARD$, D~I~IO, ~%IITH, ~RUNNI, ROWI. I~I. BALVA~3~ NOES: COUNCILMEIV:~,C-R ABSTAIN: COUNC~L;~E:,.t~ER~ ABSENT: COUNCILM~.MBER$_ cITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED StP 0 BOB PRICE '~ / ~ ' Mayor of the Cit~6f Bakersfield APPROVED AS TO FORM: INI City Attorney of the City of Bakersfield rb\o~\~ater. 812 ORK~I~L~L .' 14.16.010 Chapter 14.16 C. For such properties which are not adjacent to the city, the property owner must enter into and record a SEWER USE BY NONRESIDENTS covenant binding him or her and all future property owners to take all necessary steps to annex the property Sections: served ~by the city sewer to the city at such time as the 14.16.010 Applicability. city becomes contiguous to his or her property, or the law 14.16.020 Connection to property in otherwise permits such annexation. (Ord. 3521 § 1, 1993: ~mlncorporated areas. Ord. 2576 § 1 (part), 1980: prior code § 8.72.010) 14.16.030 Persons paying service charge to sanitation district exempt from 14.16.030 Persons paying service charge to user and capacity charge, sanitation district exempt from user 14.16.040 Disconnection where no and capacity charge.. agreement. Notwithstanding any provisions of this chapter to the 14.16.050 Rates and charges, contrary, whenever any such property mentioned in Sec- 14.16.060 Occupancies .listed .in Section tion 14.16.020 is within a sanitation district, which sanita- 14.16;050---Defined. tion district is paying a fee to the city pursuant to the 14.16.070 Occupancies not listed in Section terms of a contract with the city for ~e use of the city's 14.16.050~Rates charged, sewer line, the owner of the property shall be exempt 14.16.080 Contract--Execution-after from the payment of the annual charge-to the city if the approval for connection, owner pays a service charge to the sanitation district. 14.16.090 Contract--Conditions and (Ord. 2576 § 1 (part), 1980: prior code § 8.72.020) provisions. 14.-16.100 Basis and purpose of-rates and 14.16,040 Disconnection where no agreement. charges. A. All private sewer lines heretofore connected to 14.16.110 Changein occupancy Or use. the out-fall-main sewer system of the city, without the 14.16.120 Agreement--Right to Telnnlnnte. owner of the property having entered into a written agree- 14~16.130 Agreement--May contain ment with the city for the payment of sewer use and ad'clitional provisions not in capacity charge connection, shall be disconnected under conflict with'chapter, the direction of the city engineer upon thirty days' written 14.16.140 Agreement--Failure to comply notice to the property owner of the property, given by the with--Notice--Court action, city engineer, unless within that time the owner of the property executes an agreement for the payment, of charg- 14.16.010 Applicability. es in accordance with the adopted schedule of rates and The terms and conditions specified in this chapter shall charges set forth in Section 14.16.050. apply only to contracts to be entered into from and after B. Notice sent by registered mail to the property the effective date of this chapter, and to all renewals of owner at his last known address, or to the occupant of contracts now in force and effect. (Ord. 2576 § 1 (part), said property, shall be sufficient notice under tiffs chapter. 1980: prior code § 8.72.100) (Ord. 2576 § 1 (part), 1980: prior code § 8.72.030) 14.16.020 Connection to property in 14.16.050 Rates and charges. unincorporated areas. The annual rate and charges for connections to a city A. Whenever an application is made for a sewer sewer outside of the city limits shall be composed of the connection to the city-owned sewer system for property sum of a capacity and use charge, as follows: in an unincorporated area, the city engineer is authorized A. A use charge, which shall reasonably represent to enter into .an agreement for such sewer connection in a measure of the applicant's use of the system. The use accordance with this chapter, charge shall be as per schedule adopted by the city coun- B. For such properties which are adjacent to the ell annually, plus. city, the property owner must enter into and record a B. 'A capacity charge, which shall be for the puxpose covenant binding him or her and all future property of reserving a portion of the city's trunkline and sewage owners to take all necessary steps to immediately annex treatment facilities for the applicant. The capacity charges the property served by the city sewer to the city. shall be as follows: 501 B A K E R S F I E L D OFFICE OF THE CITY MANAGER MEMORANDUM July 11, 2002 To: Budget and Finance Committee Through: Alan Tandy, City Manager ,~~/ From: John W. Stinso~,V~s~star{t ~City Manager Subject: Kern Economic Development Corporation (KEDC) Funding Request A request by Kern Economic Development Corporation (KEDC) for an increase in the City's contribution was referred by the City Council to the Budget and Finance Committee for review. The City was a founding member of KEDC and has provided significant financial support and been an active participant for approximately 15 years. Recently, there has been some concern regarding the level of service provided by KEDC to the City of Bakersfield. The basis of this concern relates to the lack of new job creation through the efforts of KEDC sufficient to justify the payment of incentives available under the City's agreement. There also appears to be a focus on promoting economic development in areas outside of Bakersfield. Bakersfield has contributed $60,000 annually to KEDC, not including incentive payments which can be as much as an additional $40,000 annually. Other Kern County cities contribute approximately $10,000 annually and seem to receive as much benefit from KEDC as the City of Bakersfield. The incentive program has been in place since 1997. Since that time they were eligible to earn up to $160,000 in incentives based on the number of jobs created. During this time period they earned less than half the amount available ($70,000). The incentive payment amounts have declined annually with no incentive paid in FY 01/02 and none to be paid for FY 02-03. We have included materials regarding incentive payment history, KEDC Performance reports and marketing materials for the Committee's information. While we continue to support the concept of KEDC, the amount of the City's contribution and the return on this investment, merit further discussion and consideration by the Council. S:klO~DC Memo.doc From: "Danielle McKinney" <mckinney@kedc.com> To: <kedc@kedc.com> Date: Tuesday, July 02, 2002 9:25:23 AM Subject: New Business Announcement At a groundbreaking ceremony tomorrow, the City of Delano and the Kern EDC will announce that West Coast Packaging, dba California Packaging Materials, has chosen a seven acre parcel in the Delano Airport Industrial Park to locate their 12,000 square foot manufacturing facility. West Coast Packaging will manufacture reusable plastic molded produce baskets and employ 35 people with plans to increase to 100 within three years. This project has been listed on the Kern EDC Update report as project "Red." Please see the enclosed media advisory and news release for additional details on the event and the company. Danielle McKinney, APR Investor Relations Kern EDC 661.862.5162 BAKERSFIELD MEMORANDUM . ... /~,,,y March 7, 2002 TO: Alan Tandy, City Manag FROM: Donna Kunz, Economic and Community Development Director SUBJECT: Information for KEDC Budget Request I have attached two tables for your review of KEDC's increased funding request. Table 1 sh°ws how the City's current funding contribution compares to the County sources and private sources KEDC receives. We were unable to get information from Pat Collins on how much the other cities might be contributing. Table 2 shows how much KEDC has earned and collected of the $40,000 incentive funds in the current City agreement over the past 4 years. As you can see, this year they do not expect to be eligible for any incentive and in two of the past four years they only earned 37.5 %. I have included an amount of $60,000 total in my budget this year for KEDC. I have proposed to Pat Collins, $50,000 flat rate and $10,000 incentive. We also have been co-sponsoring the annual Economic Development Summit at Cai State in the amount of $2,500. I feel this economic outlook summit is worthwhile and plan to continue to participate in the future. Pat Collins has experienced quite a turnover in staff this year.. Most of the staff are real estate sales type individuals and he has them cold calling on industries to see if they are interested in relocating in the near future. The staff is not experienced in economic development deal structuring. On the rare occasions clients have been referred to us this year, my staff has performed the lions share of the work on preparing a development incentive package. I have not seen any serious regional marketing efforts, trade shows, advertising and such where Bakersfield is marketed. My experience in the Inland Empire Regional ED Council was more of a partnership in this area - regional advertising, marketing and referral. I feel the $60,000 is still justified and would like to see more of the regional advertising undertaking with the monies. Pat Collins is a busy individual and traveling extensively. Although I'm not sure if this is for Trade shows or what. It is difficult to get in touch with him. We have had a meeting recently in which he agreed to have a monthly meeting between our staff members. David Lyman is meeting with his staff and they provide us a monthly report sheet on the calls and contacts that have come in. I have included a copy of the last couple of months. As you can see, activity is not exactly robust. Most likely, this is due to the general economic conditions nationally and the energy issues in California. Also, California Trade and Commerce took a huge hit in the governor's budget: The state has less incentives and such for local communities to use in attracting industrial business. Lastly, our focus has been more on Redevelopment this past year and we have many projects in the pipeline. Our own outreach and service to inquiring industrial companies have given us excellent leads, comparable or better than those that have come in throUgh KEDC. I am not suggesting we cancel our agreement with KEDC at this point, but I do not believe any increase is warranted at this time. Table 1. KEDC Proposed Funding Budget Budget FY % of Projected %of % Projected % of % Projected % of % 01/02 total FY 02/03 total increase FY 03/04 total increase 04/05 total increase I Citv $ 60.000 · 6.'- $ 150.000 15 ..150.C $ 100,000 10 · (33.3) $ 50.000 4.8 (50.0]1 County 60,000 -- 6..c 150,000 15 150.I 100,000 10 (33.3) 50,000 4.8 (50.0) Dept. Human Svcs. 400,000 41.~ 0 0 0 0 0 0 0 Private 450,000 46A 550,000 55 22.; 700,000 70 27.3 850,000 81.0 21.4 Grant 0 (: 50,000 5 NA 100,000 10 10(: 100,000 9.5 0 Reserve 0 (: 100,000 10 0 0 0 N/~ 0 0 0 Total $ 970,000¶ 10(: $1,000,000 100 $1,000,000 100 $1,050,000 100.1 wThis does not reflect the pOtential of $40,000 in incentive payments KEDC could qualify for each year. w*This does not accurately reflect the County's contribution. The County's current agreement With KEDC provides for $42,000 cash contribution plus $34,510 in in-kind contributions, for a $76,510 total. ¶This does not reflect contributions from other Kern County cities. Table 2. History of Incentive Payments to KEDC, FY 1998 - 99 to Present Potential Incentive Amount earned Amount forfeited % of total Fiscal Year* (A) (B) % of total earned (A - B) forfeited 98 / 99 $ 40,000 $15,000 37.5% $ 25,000 62.5% 99 / 00 $ 40,000 $ 40,000 100% 0 0% 00 / 01 $ 40,000 $15,000 37.5% $ 25,000 62.5% 01 / 02 $40,000 $ 0 0 % $40,000 100% Total $160,000 $ 70,000 44% $90,000 56% *Incentives were paid in the fiscal year shown but were eamed in the previous fiscal year. KERBEDC · KERN ECONOMIC DEVELOPMENT COI¥~RATION FEB 2 ~ ZOOZ February 21, 2002 Mr. Alan Tandy City Manager City of Bakersfield Bakersfield, CA 93301 Re: Economic Development Dear Mr. Tandy: As you know, CalWORKs has been a key financial supporter for economic development in Kern County for the past several years, but their funding will cease this June. Since taking the leadership role at KernEDC, I have worked 'to reduce the reliance on this funding by increasing private investment and reducing the amount of CalWORKs funding to our effort. We are making progress, but need your assistance in this time of transition. What have we been able to accomplish? · In coordination with yourselves and many partners, we have seen net, new non-farm jobs grow at a rate of 3% annually for the last twelve months, exceeding most states (including California) and the national average · Updated curriculum has been developed in conjunction with a variety of existing businesses to meet their industry needs (including a customer service program to help meet the needs of AFSA's 400 employee expansion) and meet their number one request, better skilled, prospective employees · Recruited major new employers including Pactiv, Target, and IKEA that alone represent over 1600 jobs -According to economic models, and conservative estimates, those employees, in one year, will make auto payments of approximately $7,000,000, spend $5,800,000 in mortgage interest payments, $6,900,000 in grocery stores, $2,500,000 in health care and additional spending in many other arenas · Enhanced our reputation, resulting in the listing of this area as one of the best locations to do business in the count~j, as determined by a national survey of fifty site consultants (only three California area were listed) A Public-Private Partnership Bnn§in§ Ne~ B~siness To Kern County 2.700 "M" Street, Suite ZOO, P.O. Box I Z2.9- Bakersfield, CA 93302..Phone (661 ) 862-5150 · Fax (66 I) 862.-51 $ I · w,~wv, kedc.com Why the increase in your investment now? It is essential to maintain our momentum. We are now developing recognition as a place to consider doing business. For us to maintain that position and expand our scope to include aerospace and high technology industries, we mbst go forward. For the extra investment, what else will we do? We will expand on our success, but more specifically we will: -Develop the high tech and aerospace clusters -Expand involvement and further development of the existing industry clusters at an accelerated pace · -Expand involvement on a state and regional basis to further develop our relationships and build our profile -Implement an expanded effort, with major Board of Directors particij~ation, to grow the private investment and participation -Hold monthly meetings with Bakersfield Economic Development Department (already begun) to better coordinate our pro-active efforts in marketing and recruitment, as well as our activities to support existing businesses -Implement "Joint Stdke" initiatives, with City Economic Development Department, to drive and support economic development and wealth creation, and increase wage rates and incomes What.we need? A three year commitment from the city, that reflects our near term need for the transition, with an annual reduction offset by private investment. 2002/2003 2003/2004 2004/2005 $150,000 $100,000 $50,000 A consolidated financial plan is attached and it reflects a similar plan for the County of Kern. I recognize budgets are tough, but now is the time to strike while our momentum and a recovering economy give us an excellent opportunity to succeed. We will meet with the staff at our earliest convenience to develop specific benchmarks, measurements, and timelines for implementation of the revised plan and strategies. Sincerely, Patrick U. C~llir~ President/CE~C~ KemEDC '"'~ CC: Donna Kunz, City of Bakersfield Economic Development Director Kern Economic Development Corporation Board of Directors Kern EDC Pertbrmance Report November 2001 Tapp Development West Kern TBD X Carol 50-70k sq. ft. 20-25 Zebra/Distribution 116 Acres 450-900 X Boyd 8-10 Acres 5-10 X Reuse/RMDZ client 40 Acres ' 40 Client not returning calls Suede 10-20 Acres 50-100 X ABU DevelopmentJRene Arias 77 Acres N/A sold on foreclosure Tire Rec¥cler Project 102 Acres 36 X British Petroleum N/A 5-15 No more interest Unique Plastics 20,000 sq. ft 20 X Investment Company' 18 Acres N/A Retail development in Rosamond Carrier/Coldwell Banker 26~27 Acres 80-110 )orate bw out Whitehouse Staubach/KPMG 80,000 sq. ft. 1000 in two Rez-Tech 30,000 sq. ft. 30 now, 50 later X Straw 60,000 sq. ft. 75 now, 200 later X Bottle 56,000 sq. ft. 35 now, 75 later X KEFt EDC KERN I~CONOMIC DEVELOPMEN! CORPORAIION Revised 3/7/2002 KEP IWEDC KERN ECONOMIC OEVELOPMENT CORPORATION UPDATE November 2001 SPECIAL PROJECTS. Representatives of Connecting Kern County, a partnership of the County of Kern and local businesses to assess and improve our county's readiness for the networked world, were on hand at the Bakersfield Business and Technology Expo to hand out the recently completed report to the community. The report describes the status of networked places, applications and services in business, education/libraries, government, community-based organizations, health care and real estate. The Connecting Kern County project is an outgrowth of the mayor's e-Development Group and Greater Bakersfield Vision 2020. The Kern EDC has been a major participant in this project because of its. importance to economic development efforts. For a copy of the report please call the Kern EDC at 862-5150. On Tuesday, October 30, Kern EDC, local elected officials and business leaders welcomed the start of construction for a new ChevronTexaco building on Camino Media in Bakersfield. Kern EDC is delighted that ChevronTexaco chose to maintain a significant presence in Kern County and would like to welcome the new company and the many highly skilled careers and opportunities they provide to further support the growth of our economy. BUSINESS RECRUITMENT Ongoing Projects · Fizz- Chemical Manufacturer. 10,000 sq. ft., 12-15 jobs. First contact 9/'01. Status: Ongoing. (cp) · Sparky- Energy Producers (600-1000 mega watts). 100 acres, 250 jobs for first two years, 25- 30 jobs thereafter. First contact 9/01. Status: Short listing. (pjc) · Storgro- Cold Storage. 100,000 sq. ft./20acres, 100 jobs. First contact 8/01. Status: Short listing. (pjc) · America- Pipe manufacturing. 50,000-75,000 sq. ft., 55-75 jobs. First contact 11/01. Status: Ongoing. (cp) · Cool- Refrigeration. 40,000 sq. f./2.5-5 acres, 75-100 jobs. First contact 3/01. Status: Working with brokers on sites. (jm) · Denco - Food Sei'vice. 5,000 sq. ft., 70 jobs. Status: Selected Wasco. Plans in planning department. (pjc) · Eve & Me - Clothing Manufacturer, design to manufacture. 5,000 to 6,000 sq. ft., 25 to 50 jobs. Status: Potentially move into proposed 20,000-sq. ft. building at California City Airport. (tf) · Heat/Cellini Consultant- Food Processing Plant. 80,000 sq. ft., approximately 75 jobs. Concerned with energy issues. Status: Ongoing. (pjc) · JTS Construction- Modular Construction. 9 acres, 20-25 jobs. First contact 9/01. Status: Received land use approval. (cp) ·Mix- Warehouse/Distributor. 800,000-1.2 million sq. ft., 300+ jobs. Status: In process of signing land contract. (pjc) · T- Customer Service Center. 20,000-25,000 sq. ft., 200 jobs. First contact 8/01. Status: Toured 10/15, re-toured week of 10/22. (df) Completed Projects · CB (AKA Target)- DistributiOn center. 1.2 million sq. ft., 120 acres, 1,000 jobs. Located in International Trade and Transportation Center, Shafter. Status: Deal completed. (jm) · Denco - Food Service. 70 jobs. Located in Delano. Status: Closed escrow and breaking ground on site. Project has been coordinated v~ith Career Services Center. (pjc) · Discovery (Fortune Group AKA Project Discovery)- 45,000 sq. ft:, 30+ jobs. Located in unincorporated area of Kern County. Status: Signed lease with option to purchase. (pjc) ·EZ-Trucking Company. 6-10 acres, 100-125jobs. Located in Bakersfield. Status: Deal completed. (jm) · Central Coast Mustang- Distribution for high performance Mustang parts. 10,000 sq. ft., 25 jobs. Tehachapi. Status: Ribbon Cutting and Grand Opening September 9. (tf) · Matrix Glass - Manufacturing company. 83,000 sq. ft., 30-35 jobs. Status: Occupied temporary city owned building space (one year) in California City. Structure moving along, completion in March. (tf) · Mojave Airport Hotel- 32-36 jobs. Status: Career Services Center now recruiting. (tf) · Project Steel - PNA Construction. 12,000-15,000 warehouse on one acre, 15-20 jobs. Located at 311 Mt. Vernon in Bakersfield. Status: Lease has been signed. (cp) Projects on Hold' · Mega Distribution Trade and Commerce/Deloitte Touche- Distribution Center. 2 million sq. ft., 800-1,000 jobs. Status: On hold due to corporate reorganization. (pjc) · Panel- Manufacturing of concrete panels. 10-20 acres, 25-50 jobs. Status: Presented Letter of Intent to Shafter. Client waiting for more bids to justify move here. (cp) · Project Matrix- Tire Recycler. 100 acres, 30 jobs. California City. Status: On hold for one year pending Environmental Impact Report (EIR). (tf) Initials Key cp= Carol Parks df= Darlene Fisher jm= Jesse Mach tf = Tom Freng pjc= Patrick J. Collins KERkEDC KERN ECONOMIC DEVELOPMENT CORPORATION UPDATE November 29, 2001 SPECIAL PROJECTS Work has begun on the Second Annual Kern County Economic Summit. The Summit, presented by California State University, Bakersfield and the Kern EDC, will be held on Tuesday, March 26, 2001 from 7:30 a.m. - 2:00 p.m. in the Dor6 Theater at CSUB. This year's summit will offer a'futuristic look at education, transportation, telecommunications and other important industries. The mid morning session will focus on international trade, featuring experts who can help businesses enter the international marketplace as well as local business representatives who will share their experiences with international trade. Please mark your calendars to join us for this important event. BUSINESS RECRUITMENT Scheduled Tours Dark for December Ongoing Projects · Panel- Manufacturing of concrete panels. 10-20 acres, 25-50 jobs. Status: Met with President 11/28/01 and are now moving forward again. (cp*) · Project Hubb- 20,000-30,000 sq. ft., 10 jobs, toured Nov. 13 - Transportation. . Status: In process of finding building (jm*) · Sparky,Energy Producers (600-1000 mega watts). 100 acres, 250 jobs for first two years, 25- 30 jobs thereafter. First contact 9/01. Status: Short listing. (cp*) · Storgro- Cold Storage. 100,000 sq. ft./20acres, 100 jobs. First contact 8/01. Status: Short listing. (cp*) · America- Pipe manufacturing. 50,000-75,000 sq. ft., 55-75 jobs. First contact 11/00. Status: Ongoing. (cp*) · Cool- Refrigeration. 40,000 sq. ft./2.5-5 acres, 75-100 jobs. First contact 3/01. Status: Working with brokers on sites. (jm*) · Denco - Food Service. 5,000 sq. ft., 70 jobs. Status: Selected Wasco. Did not get signage approved, still working on it. (df*) · Eve & Me - Clothing Manufacturer, design to manufacture. 5,000 to 6,000 sq. ft., 25 to 50 jobs. Status: Potentially move into proposed 20,000-sq. ft. building at California City Airport. (tf*) · Heat/Cellini Consultant- Food Processing Plant. 80,000 sq. ft., approximately 75 jobs. Concerned with energy issues. Status: Ongoing. (pjc*) · JTS Construction- Modular Construction. 9 acres, 20-25 jobs. First contact 9/01. Status: Moving forward. (cp*) ·Mix- Warehouse/Distributor. 800,000-1.2 million sq. ft., 300+ jobs. Status: In process of signing land contract. (jm*) · T- Customer Service Center. 20,000-25,000 sq. ft., 200 jobs. First contact 8/01. Status: Increased size to 50,000 sq. ft., and increased to 400 jobs. Still considering several locations (df*) Completed Projects. · CB (AKA Target)- Distribution center. 1.2 million sq. ft., 120 acres, 1,000 jobs. Located in International Trade and Transportation Center, Shafter. Status: Deal completed. (jm*) · Denco - Food Service. 70 jobs. Located in Delano. - Status: Closed escrow and breaking ground on site. Project has been coordinated with Career Services Center. (pjc*) · Discovery (Fortune Group AKA Project Discovery)- 45,000 sq. ft., 30+ jobs. Located in unincorporated area of Kern County. Status: Signed lease with option to purchase. (pjc*) · EZ (AKA Esparza Trucking)- Trucking Company. 6-10 acres, 100-125 jobs. Located in Bakersfield. Status: Deal completed. (jm*) · Central Coast Mustang- Distribution for high performance Mustang parts. 10,000 sq. ft., 25 jobs. Tehachapi. Status: Ribbon Cutting and Grand Opening September 9. (tf*) · Matrix Glass - Manufacturing company. 83,000 sq. ft., 30-35 jobs. Status: Occupied temporary city owned building space (one year) in California City. Structure moving along, completion in March. (tf*) · Mojave Airport Hotel- 32-36 jobs. Status: Career Services Center now recruiting. (tf*) · Project Steel- PNA Construction. 12,000-15,000 warehouse on one acre, 15-20 jobs. Located at 311 Mt. Vernon in Bakersfield. Status: Lease has been signed. (cp*) Projects on Hold · Fizz- Chemical Manufacturer. 10,000 sq. ft., 12-15 jobs. First contact 9/01. (cp*) · Mega Distribution Trade and Commerce/Deloitte Touche- Distribution Center. 2 million sq. ft., 800-1,000 jobs. Status: On hold due to corporate reorganization. (pjc*) · Project Matrix- Tire Recycler. 100 acres, 30 jobs. California City. Status: On hold for one year pending Environmental Impact Report (EIR). (tf*) *Initials Key cp= Carol Parks, (661) 862-5058 df= Darlene Fisher, (661)862-5056 jm= Jesse Mach, (661) 862-5059 tf = Tom Freng,(661) 862-5157 pjc= Patrick J. Collins, (661) 862-5161 Kern EDC performance Report Dece nber 2001 Pactiv Corporation - Mix 400 Dec-01 Bakersfield Manufacturing $80,000,000.00 TBD PNA Construction - Steel 20 Oct-01 Bakersfield Construction $500,000.00 $200,000.00 Target - CB 1,000 Sep-01 Shafter Distribution $90,000,000.00 $23,612,800.00 Esparza Trucking - EZ 125 Sep-01 Bakersfield Trucking Company $1,100,000.00 $550,000.00 JTS Construction 25 Sep-01 Bakersfield Manufacturing $500,000.00 $245,000.00 Denny's - Denco 70 Jun-01 Delano Food Service $1,200,000.00 $1,680,000.00 Matrix Glass 50 Jan-01 California City Manufacturing $6,000,000.00 $800,000.00 Fortune Group 30 Aug-00 Unincorporated Manufacturing Lease $1,680,000.00 Matrix Motors 30 Jul-00 Ridgecres! Manufacturing $1,120,000.00 $720,000.00 IKEA 200 Apr-00 Tejon Ranch Distribution $50,000,000.00 $7,200,000.00 Auto Parts Wholesale 65 Mar-00 Unincorporated Logistics $8,000,000.00 $1,560,000.00 Project ~'.' '~ * TO'ur Date'``.. Area ~ ~.'.. IndUstry ~.~ /..,~' "~ . ~. None Cool 100 Bakersfield Warehouse/Dist. Denco 70 Wasco Food Service Hubb 10 Kern Transportation Sparky 250 West Kern Energy Production Storgro 100 Bakersfield Warehouse/Dist. KERI EDC · · ·Revised 3/7/2002 ' KEP,,kEDC UPDATE December 20, 2001 SPECIAL PROJECTS Kern EDC has added a new section to its website that will make the site more interactive and provide timely information on activities at the Kern EDC. Log on and check out the new section by going to kedc.com and clicking on the graphic at the bottom center of the screen. The next screen offers a menu including: a listing of current events; a newsmakers section that features announcements from Kern EDC investors; and a list of projects facilitated by Kern EDC. An assessment of business needs, including workforce needs, will begin immediately with employers at the Mojave Airport. Once the aSsessment is completed, the partners in the project, Kern EDC, Employer's Training Resource, Career Services Center, Cerro Coso Community College and others, will determine how to meet the needs of this group of employers and implement a solution. Depending on the response from employers, that solution could include training programs or a business development center. Once a solution is implemented and tracked to see if it is working, this process of assessing employer needs and identifying solutions will be used for other East Kern communities. Call Tom Freng at the Kern EDC at (661)862-5157 for more information on this project. BUSINESS RECRUITMENT Scheduled Tours None Ongoing Projects · X- Extreme Sports Camp. 500-700 jobs. Tehachapi. First contact 12/01. Status: Met with President 12/10/01 and in process of getting permits.(tf*) · Panel- Manufacturing of concrete panels. 10-20 acres, 25-50 jobs. Status: Met with President 11/28/01 and are now moving forward again. (cp*) · Hubb-Transportation. 20,000-30,000 sq. ft., 10 jobs. First contact 11/01 Status: toured Nov. 13. In process of finding building (jm*) · Sparky- Energy Producers (600-1000 mega watts). 100 acres, 250 jobs for first two years, 25- 30 jobs thereafter. First contact 9/01. Status: Short listing. (cp*) · Storgro- Cold Storage. 100,000 sq. ft./20acres, 100 jobs. First contact 8/01. Status: Short listing. (cp*) · America- Pipe manufacturing. 50,000-75,000 sq. ft., 55-75 jobs. First contact 11/00. Status: Ongoing. (cp*) · Cool- Refrigeration. 40,000 sq. ft./2.5-5 acres, 75-100 jobs. First contact 3/01. Status: Working with brokers on sites. (jm*) · Denco - Food Service. 5,000 sq. ft., 70 jobs. Status: Selected Wasco. Did not get signage approved, still working on it. (df*) · Eve & Me - Clothing Manufacturer, design to manufacture. 5,000 to 6,000 sq. ft., 25 to 50 jobs. Status: Potentially move into proposed 20,000-sq. ft. building at California City Airport. (tf*) · Heat/Cellini Consultant- Food Processing Plant. 80,000 sq. ft., approximately 75 jobs. Concerned with energy issues. Status: Ongoing. (pjc*) · T- Customer Service Center. 20,000-25,000 Sq. ft., 200 jobs. First contact 8/01. Status: Increased size to 50,000 sq. ft., and increased to 400 jobs. Still considering several locations (df*) Completed Projects · Pactiv (AKA Mix)- Warehouse/Distributor. 800,000-1.2 million sq. i~., 300+ jobs. - Status: Deal completed. (jm*) · Target (AKA CB)- Distribution center. 1.2 million sq. ft., 120 acres, 1,000 jobs. Located in International Trade and Transportation Center, Shafter. Status: Deal completed. (jm*) · Denny's (AKA Denco) - Food Service. 70 jobs. Located in Delano. Status: Closed escrow and breaking grOund on site. Project has been coordinated with Career Services Center. (pjc*) · Fortune Group (AKA Project Discovery)- 45,000 sq. ft., 30+ jobs. Located in unincorporated area of Kern County. Status: Signed lease with option to purchase. (pjc*) · EZ (AKA Esparza Trucking)- Trucking Company. 6-10 acres, 100-125 jobs. Located in Bakersfield. Status: Deal completed. (jm*) ·JTS Construction- Modular Construction. 9 acres, 20-25 jobs. First contact 9/01. Status: Moving forward. (cp*) · Central Coast Mustang- Distribution for high performance Mustang pads. 10,000 sq. ft., 25 jobs. Tehachapi. Status: Ribbon Cutting and Grand Opening September 9. (tf*) · Matrix Glass - Manufacturing company. 83,000 sq. ft., 30-35 jobs. Status: Occupied temporary city owned building space (one year) in California City. Structure moving along, completion in March. (tf*) · Mojave Airport Hotel- 32-36 jobs. Status: Career Services Center now recruiting. (tf*) · Project Steel - PNA Construction. 12,000-15,000 warehouse on one acre, 15-20 jobs. Located at 311 Mt. Vernon in Bakersfield. Status: Lease has been signed. (cp*) Projects on Hold · Fizz- Chemical Manufacturer. 10,000 sq. ft., 12-15 jobs. First contact 9/01. (cp*) · Mega Distribution Trade and Commerce/Deloitte Touche- Distribution Center. 2 million sq. ft., 800-1,000 jobs. Status: On hold due to corporate reorganization. (pjc*) · Project Matrix- Tire Recycler. 100 acres, 30 jobs. California City. Status: On hold for one year pending Environmental Impact Report (EIR). (tf*) · Initials Key. cp= Carol Parks, (661) 862-5058 df= Darlene Fisher, (661)862-5056 jm= Jesse Mach, (661) 862-5059 tf = Torn Freng,(661) 862-5157 pjc= Patrick J. Collins, (661) 862-5161 Kern EDC Performance Report January 2002 Hall Commercial Vehicle Service, Inc. Jan-02 Watson Realty May-01 Hall Medical Equipment Supply, Inc. Jan-02 Wells Fargo Bank May-01 Stewart Title Jan-02 Bank of the Sierra Feb-01 Superior Construction Jan-02 Doubletree Hotel Feb-01 M.D. Atkinson Co., Inc. Dec-01 Tejon Ranch Feb-01 Sonitrol of Bakersfield Nov-01 Bank of Stockdale Jan-01 HighSpeed of California Nov-01 Colombo Construction Jan-01 Stockdale Property Management, Inc. Nov-01 Master Development Corporation Sep-01 Act I Aug-01 Creative Printing Jul-01 Hillcrest Sheet Metal, Inc. Jul-01 Southwest Ready Mix Concrete Jul-01 Adecco, The Employment People Jun-01 Advance Beverage, Inc. Jun-01 Environmental & Safety Management Services Jun-01 Motor City Auto Center Jun-01 ^&M Products May-01 A T & T May-01 Indian Wells Valley Airport District May-01 Jackson & Perkins May-01 Kaiser Permanente May-01 Klein, DeNatale, Goldner, Cooper, Rosenlieb & Kimball, LLP May-01 KSA Group Architects May-01 Soils Engineering May-01 Automobile Club of Southern California Apr-01 NCR Commercial Brokerage Apr-01 Ordiz Melby Architects Apr-01 The Stockdale Group Apr-01 Arrival Communications Mar-01 BMI Mechanical Mar-01 Branch Warehouse Corp. Mar-01 NAI Capital Commercial Mar-01 Time Warner Telecom Mar-01 , American General Media Feb-01 '. JTS Construction Feb~01 Coldwell Banker Jan-01 Processes Unlimited Jan-01 Trek Imaging Digital Color Jan-01 Revised 3/7/2002 KERI EDC KEi~N ECONOMIC O~V~LOPMEN~ COgPORA~'ION UPDATE January 10, 2001 BUSINESS RECRUITMENT Scheduled Tours None Ongoing Projects ·X- Extreme Sports Camp. 500-700 jobs. Tehachapi. First contact 12/01. Status: Moving Forward. (tf*) · Panel- Manufacturing of concrete panels. 10-20 acres, 25-50 jobs. Status: Met with President 11/28/01 and are now moving forward again. (cp*) ·Hubb- Transportation. 20,000-30,000 sq. ft., 10 jobs. First contact 11/01 Status: Selected Building. Projected to wrap up details by 3/1/02. {jm*) · Sparky- Energy Producers (600-1000 mega watts). 100 acres, 250 jobs for first two years, 25- 30 jobs thereafter. First contact 9/01. Status: Short listing. (cp*) ·Storgro- Cold StOrage. 100,000 sq. ft./20acres, 100 jobs. First contact 8/01. Status: Short listing. (cp*) ·America, Pipe manufacturing. 50,000-75,000 sq. ft., 55-75 jobs. First contact 11/00. Status: Ongoing. (cp*) ·Cool- Refrigeration. 40,000 sq. ft./2.5-5 acres, 75-100 jobs. First contact 3/01. Status: Working with brokers on sites. (jm*) · Eve & Me - Clothing Manufacturer, design to manufacture. 5,000 to 6,000 sq. ft., 25 to 50 jobs. Status: Potentially move into proposed 20,000-sq. ft. building at California City Airport. (tf*) · Heat/Cellini Consultant- Food Processing Plant. 80,000 sq. ft., approximately 75 jobs. Concerned with energy issues. Status: Ongoing. (pjc*) · T- Customer Service Center. 20,000-25,000 sq. ft., 200 jobs. First contact 8/01. Status: Increased size to 50,000 sq. ft., and increased to 400 jobs. Still considering several locations (df*) Completed Projects · Pactiv (AKA Mix)-Warehouse/Distributor. 800,000-1.2 million sq.'ft., 300+ jobs. Status: Deal completed. (jm*) · Target (AKA CB)- Distribution center. 1.2 million sq. ft., 120 acres, 1,000 jobs. Located in International Trade and Transportation Center, Shafter. Status: Deal completed. (jm*) · Denny's (AKA Denco) - Food Service. 70 jobs. Located in Delano. Status: Closed escrow and breaking ground on site. Project has been coordinated with Career Services Center. (pjc*) · Fortune Group (AKA Project DiscoVery)- 45,000 sq. ft., 30+ jobs. Located in unincorporated area of Kern County. Status: Signed lease with option to purchaSe. (pjc*) · EZ (AKA £sparza Trucking)- Trucking Company. 6-10 acres, 100-125 jobs. Located in Bakersfield. Status: Deal completed. (jm*) · JTS Construction- Modular Construction. 9 acres, 20-25 jobs. First contact 9/01. Status: Moving forward. (cp*) · Central Coast Mustang- Distribution for high performance Mustang parts. 10,000 sq. ft., 25 jobs. Tehachapi. Status: Ribbon Cutting and Grand Opening September 9. (tf*) · Matrix Glass - Manufacturing company. 83,000 sq. ft., 30-35 jobs. Status: Occupied temporary city owned building space (one year) in California City. Structure moving along, completion in March. (tf*) · Mojave Airport Hotel- 32-36 jobs. Status: Career Services Center now recruiting. (tf*) · Project Steel - PNA Construction. 12,000-15,000 warehouse on one acre, 15-20 jobs. Located at 311 Mt. Vernon in Bakersfield. Status: Lease has been signed. (cp*) Projects on Hold · Fizz- Chemical Manufacturer. 10,000 sq. ft., 12-15 jobs. First contact 9/01. (cp*) · Mega Distribution Trade and Commerce/Deloitte Touche- Distribution Center. 2 million sq. ft., 800-1,000 jobs. Status: On hold due to corporate reorganization. (pjc*) · Project Matrix- Tire Recycler. 100 acres, 30 jobs. California City. Status: On hold for one year pending Environmental Impact Report (EIR). (tf*) *Initials Key cp= Carol Parks, (661) 862-5058 df= Darlene Fisher, (661) 862-5056 jm= Jesse Mach, (661) 862-5059 t/= Tom Freng,(661) 862-5157 pjc= Patrick J. Collins, (661) 862-5161 KEP,,i DC_ KERN ECONOMIC DEVELOPMENT CORPORATION UPDATE danuary 24, 2002 SPECIAL PROJECTS Promoting Kern County is an important part of the process of recruiting new businesses to Kern County. To that end, Kern EDC has recently placed an ad in Expansion 'Management Magazine touting the large organizations that have chosen Kern County, and created a postcard to entice call centers to the community. More materials will be produced in the coming months to assist the business developers at upcoming tradeshows. Examples of the full-page ad from Expansion Management Magazine and the call center postcard are available on the Kern EDC website in the Investor Log In section. Earlier this week, business developer Carol Parks met with existing businesses in her cluster, plastics and light manufacturing, to discuss their workforce and training needs. Similar meetings have been held with local business in the distribution and logistics and call center clusters. These meetings with ' existing businesses are one way Kern EDC workS to retain business who already call Kern County home. The results of these meetings are used by Kern EDC business developers to work with education partners and others to meet employer's needs. More information will be provided as these programs progress, or you can call the business developers to find out more about what is happening in these cluster meetings. BUSINESS RECRUITMENT Scheduled Tours None Ongoing Projects · Liu- Manufacturing. 30,000-50,000 sq. ft., 20-40 jobs. First Contact 1/02. Status: Met with President 1/23/02 and in process of finding building. (cp*) ·X- Extreme Sports Camp. 500-700 jobs. Tehachapi. First contact 12/01. Status: Moving Forward. (tf*) · Panel- Manufacturing of concrete panels. 10-20 acres, 25-50 jobs. Status: Met with President 11/28/01 and are now moving forward again. (cp*) ·Hubb- Transportation. 20,000-30,000 sq. ft., 10 jobs. First contact 11/01 Status: Selected Building. Projected to wrap up details by 3/1/02. (jm*) · Sparky- Energy Producers (600-1000 mega watts). 100 acres, 250 jobs for first two years, 25- 30 jobs thereafter. First contact 9/01. Status: Short listing. (cp*) ·Storgro- Cold Storage. 100,000 sq. ft./20acres, 100 jobs. First contact 8/01. Status: Short listing. (cp*) ·America- Pipe manufacturing. 50,000-75,000 sq. ft., 55-75 jobs. First contact 11/00. Status: Ongoing. (cp*) ·Cool- Refrigeration. 40,000 sq. ft./2.5-5 acres, 75-100 jobs. First contact 3/01. Status: Working with brokers on sites. (jm*) · Eve & Me - Clothing Manufacturer, design to manufacture. 5,000 to 6,000 sq. ft., 25 to 50 iobs. Status: Potentially move into proposed 20,000-sq. ft. building at California City Airport. (tf*) Completed Projects · Pactiv (AKA Mix) - Warehouse/Distributor.. 800,000-1.2 million sq. ft., 300+jobs. Status: Deal completed. (jm*) · Target (AKA CB)- Distribution center. 1.2 million sq. ft., 120 acres, 1,000 jobs. ·Located in International Trade and Transportation Center, Shafter. - Status: Deal completed. (jm*) · Denny's (AKA Denco) - Food Service. 70 jobs. LOcated in Delano. Status: Closed escrow and breaking ground on site. Project has been coordinated with Career Services Center. (pjc*) · Fortune Group (AKA Project Discovery)- 45,000 sq. ft., 30+ jobs. Located in unincorporated area of Kern County. Status: Signed lease with option to purchase. (pjc*) · EZ (AKA Esparza Trucking)- Trucking Company. 6-10 acres, 100-125 jobs. Located in Bakersfield. Status: Deal completed. (jm*) ·JTS Construction- Modular Construction. 9 acres, 20-25 jobs. First contact 9/01. Status: Moving forward. (cp*) · Central Coast Mustang- Distribution for high'performance Mustang pads. 10,000 sq. ft., 25 jobs. Tehachapi. Status: Ribbon Cutting and Grand Opening September 9. (tf*) · Matrix Glass - Manufacturing company.. 83,000 sq. ft., 30-35-jobs. Status: Occupied temporary city owned building space (one year) in California City. Structure moving along, completion in March. (tf*) · Mojave Airport Hotel- 32-36 jobs. Status: Career Services Center now recruiting. (tf*) · Project Steel- PNA Construction. 12,000-15,000 warehouse on one acre, 15-20 jobs. Located at 311 Mt. Vernon in Bakersfield. Status: Lease has been signed. (cp*) Projects on Hold · T- Customer Service Center. 50,000 sq. ft., 400 jobs. First contact 8/01. Status: On hold until 3/02. (df*) · Heat/Cellini Consultant- Food Processing Plant. 80,000 sq. ft., approximately 75 jobs. Concerned with energy issues. Status: Still Considering; not sure on timing and looking at the current economy. (pjc*) · Fizz- Chemical Manufacturer. 10,000 sq. ft., 12-15 jobs. First contact 9/01. (cp*) · Mega Distribution Trade and Commerce/Deloitte Touche- Distribution Center. 2 million sq. ft., 800-1,000 jobs. Status: On hold due to corporate reorganizatiOn. (pjc*) · Project Matrix- Tire Recycler. 100 acres, 30 jobs. California City. Status: On hold for one year pending Environmental Impact Report (EIR). (tf*) *Initials Key cp= Carol Parks, (661) 862-5058 df= Darlene Fisher, (661) 862-5056 Kern EDC Performance Report June 2002 Daisytek International -Tech Distribution 100 Apr-02 Tejon Ranch Manufacturing $9,000,000.00 $2,300,000.00 Woodward at Stallion Springs - X 200 Mar-02 Tehachapi Sports Camp $7,500,000.00 TBD American Carriage 40 Jan-02 Tehachapi Manufacturing $2,000,000.00 $700,000.00 Pactiv Corporation - Mix 400 Dec-01 Unincorporated Kern Distribution $80,000,000.00 $200,000.00 PNA Construction - Steel 20 Oct-01 Unincorporated Kern Construction $500,000.00 $200,000.00 Esparza Trucking - EZ 125 Sep-01 Bakersfield Trucking Company $1,100,000.00 $550,000.00 JTS Construction 25 Sep-01 Bakersfield Manufacturing $500,000.00 $245,000.00 Target - CB 1,000 Sep-01 Shafter Distribution $90,000,000.00 $23,612,800.00 Denny's - Denco 70 Jun-01 Delano Food Service $1,200,000.00 $1,680,000.00 Matrix Glass 50 Jan-01 California City Manufacturing $6,000,000.00 $800,000.00 Fortune Group 30 Aug-00 Unincorporated Kern Manufacturing Lease $1,680,000.00 Matrix Motors 30 Jul-00 Ridgecrest Manufacturing $1,120,000.00 $720,000.00 IKEA 200 Apr-00 Tejon Ranch Distribution $50,000,000.00 $7,200,000.00 Auto Parts Wholesale 65 Mar-00 Unincorporated Kern Logistics $8,000,000.00 $1,560,000.00 Archer 20-25 May-02 Kern Distribution Silo 40 May-02 Kern Manufacturing Tanker 15 May-02 Kern Transportation Hubb 10 Kern Transportation Sparky 250 West Kern Energy Production Storgro 100 Bakersfield Warehouse/Dist. T 400 Bakersfield Call Center KERIXEDC KERN ECONOMIC DEVELOPMEN'~ CORPORATION 06/20/2002 jm= Jesse MaCh, (661) 862-5059 tf = Tom Freng,(661) 862-5157 pjc= Patrick J. Collins, (661) 862-5161 KER EDC .... . .. . _.~ ~.-: .. KERN ECON(~MIC DEVELOPMENT CORPORATION ..... __' ; ju y 11,2002 I I. j ' Alan 'l'andy City of Bakorsfidd 150~ /ruxtun Avenue Bakersfidd, CA ~330~-520~ -- Dear Alan: I am sorry that you were not able to attend our Chairman's Circle breakfast on June 18, 2002. I wanted to take this opportunity to update you on the projects and actiVities of the Kern EDC that were discussed at the breakfast. Foremost on our agenda with the close of the fiscal year is the budget crisis that has been passed down from the State to the County. As most of you are already aware, a large portion of the Kern EDC's revenue in previous years has come from the Kern County Department of Human Services. DHS no longer receives incentive funding for CalWORKS placements and therefore no longer has funding to support the Kern EDC. In order for us to be able to continue our mission to grow the economy in Kern County, we will be leaning more heavily on our private investments as our primary source of revenue. Although this has caused some challenges in planning the budget for the upcoming year, we are confident that businesses in Kern County will continue to support our organization as the communities grow and prosper. This has been a very Successful year for the Kern EDC and Kern County as far as business recruitment and retention. To give you a snapshot of the successes of the past year, We have produced an annual report which is enclosed. Please take a moment to look through this information, as it will give you a better idea of how the Kern EDC has been shaping the economy. As our founding members, former board members, president's circle investors and partners, we feel that keeping you up to date is important. We plan to hold another Chairman's Circle meeting in six months, and I sincerely hope that you will be able to attend. If you would like t° take a more active role in the Kern EDC and would like to be added to our distribution list for our email updates, newsletters and other special announcements, please call our receptionist, Beth Huggins at (661) 862-5150, and she will be happy to add you to our list. · Once again, thank you for your continued support. We look forward to working with you in the future. Sincerely, Patrick J. Collins ' President/CEO _ : ~ A Public-Private Partnership Bringing New Business To Kern Coun. ty -- 2700 "M" Street, Suite 200, P.O. Box 1229o Bakersfield, CA 93302 .l~h~one (661) 862-5150 · Fax (661) 862-515t · wwW. kedc,com / MAYOR'S OFFICE City of Bakersfield Date ~- / ~'"~ FOR YOUR: [] information [] Note and return [] action [] Note and file [] signature PLEASE: [] approve [] read [] follow up [] forward [] make recommendation [] review [] see me about this July 15, 2002 MEMORANDUM TO: Budget and Finance Committee FROM: Mayor Harvey L. Hall~ SUBJECT: Kern Economic Development Corporation Evaluation As the City of Bakersfield's designated representative since January, 2001, I have found the Kern Economic Development Corporation to be inconsistent in representing the best interests of the City. Initially, I found that the Corporation was actively involved in a management and organizational transition due to the recent hiring of a new President/CEO. The KEDC is a nonprofit, mutual benefit corporation organized for the purpose of attracting new business and industry to all cities and communities in Kern .County and is to impartially serve all of those cities and communities. As articulated within the KEDC By-Laws, KEDC is to maintain a solid and continuing base of support from all cities. By Agreement, the City Council is committed to the development of a diversified economy which ensures the well being of our citizens. As one of the major income contributors to the KEDC, the City of Bakersfield desires to be an active participant, with positive results and as a mutual partner. The parties (KEDC, City of Bakersfield), by Agreement, are to review annually prior to May 1st, the relationship to determine whether it is feasible and beneficial for this joint Agreement to continue. To my knowledge, there have not been any recent assessment meetings held, other than individual informal conferences with the KEDC Chairman and the CEO. The current Agreement with KEDC expired June 30, 2002. 1501 Truxtun Avenue · Bakersfield, California 93301 · (661) 326-3770 · Fax (661) 326-3779 E-mail address: mayor@ci.bakersfield.ca.us Budget and Finance Committee July 15, 2002 Page 2 Within the KEDC business plan for the year 2000-2001, the Corporation analyzed they lacked focus, limited leadership, coordination of activities and a greater need to be more proactive with key partners. It was further identified the Corporation needed to make a concentrated effort to execute its mission, and to understand and support each community. I believe that during my tenure, as a key partner to KEDC, the interests of the City of Bakersfield have been under served. The lack of regular communication with the Mayor's Office and our Economic Development Department has resulted in both offices having to take the time necessary to secure updated written and verbal information. I have requested, and offered to assist KEDC in any way possible, to enhance the business and job creation opportunities for our city, and have yet to be called upon. As a key partner with KEDC and if the City Council desires to continue this agreed relationship, KEDC must evaluate, examine and assess their commitment and prioritize how they intend to serve the City of Bakersfield and by what enhanced means. All recent direct economic benefits offered by KEDC involving NEW business opportunities and jobs creation have been very minimal during the past several years and, as a result, KEDC has not qualified for our City incentive job creation bonus. It would appear to me that KEDC needs to clearly identify an action plan, with established time lines and measurable objectives to improve communications, which will bring positive economic development outcomes for the City of Bakersfield. With this memorandum, I have attempted to document for the Budget and Finance Committee my personal assessment of the performance by KEDC involving the City of Bakersfield. As a recommendation, I would approve and sustain only the current $60,000 annual contribution, with the stipulation that immediately a review session be scheduled to determine the expectation of the City as it applies to KEDC performance, and that there will not be any further automatic renewals of the Agreement until said time as a report on the assessment of those expectations has been reviewed. HLH/ndw cc: Alan Tandy, City Manager