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HomeMy WebLinkAbout11/14/2002 B A K E R S F I E L D ~~[~//f~ Mi ke Maggard, Chair Aldn Tandy (~ity Mana~' Harold Hanson Staff: Darnell W. Haynes Mark Salvaggio AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Thursday, November 14, 2002 City Manager's Conference Room - City Hall 1501 Truxtun Avenue, Bakersfield, CA 1.. ROLL CALL Called to Order at 4:00 p.m. Present: Councilmembers Mike Maggard, Chair; Harold Hanson and Mark Salvaggio 2. ADOPT OCTOBER 10, 2002 AGENDA SUMMARY REPORT Adopted as submitted. 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Staff report and Committee recommendation regarding Park Development Fee Georgina Lorenzi, Assistant to the Public Works Director, reported staff met with Brian Todd, Executive Vice President of the BIA, and came to agreement on the Park Development Fee increase. Staff agreed with Mr. Todd's request to use the Construction Cost Index instead of the Consumer Price Index and that the fee adjustment is to be based upon the annual averages for calendar years 2001 and 2000. Based upon this index, staff recommended a 1.95% increase to the Park Development Fee. This would increase the current fee of $635 per new single family unit to $647. ADOPTED AS SUBI~TTED OS DECEIVER 2, 2002. AGENDA SUMMARY REP,O~RT BUDGET AND FINANCE COMMITTEE MEETING Thursday, November 14, 2002 Page - 2 - Brian Todd, Executive Vice President of the BIA of Kern County, spoke regarding agreement on the fee increase. The BIA also agreed to table their issue of applying a credit to the Park Development Fee for what they philosophically believe to be new development's share of the recent Park bond grants. City staff has a fundamentally different view on the use of the Park Bond grants. Recent voter-approved propositions have provided grant funds for local recreation and park projects; however, they are being used for enhancements beyond basic park facilities and are distinct from those provided by the Park Development Fee. The bond grants are one-time funds with special requirements that cannot be relied upon for basic park development. The bond funds are currently being used for recreational facilities (such as the Kern River Parkway new 32-acre park, aquatics and ice complex, etc.) which serve all residents and enhance the livability of the community. Public Works and Recreation and Parks staff will be meeting with Mr. Todd and the BIA board in the future to discuss the issue of what amenities should be included in a basic 10-acre park with a review of costs for those amenities. Committee Member Salvaggio made a motion to approve the 1.95% Park Development Fee increase. The Committee unanimously approved. Staff will forward a resolution approving and adopting an adjusted fee for the development and improvement of parks within the City of Bakersfield to the City Council. 5. NEW BUSINESS A. Staff report and Committee recommendation regarding request for additional funding for the Bakersfield Senior Center/Retirement Housing Inc. senior housing project Economic Development Director Donna Kunz reported on the progress of the Senior Housing project over the last 18 months since the project received its financing award from HUD for a 202 Capital Advance in the amount of $6,670,500. In recent weeks design and engineering work has been completed and a contractor, S.C. Anderson, was selected to construct the project. When the construction estimates were completed, there was a shortfall of funding in the amount of $676,072. A letter was received by the City requesting additional assistance. November 30th is the official deadline given by HUD for the developer to close the escrow on the property required for the project and finalize the 202 advance. If this is not accomplished, HUD has indicated that the 202 funding ($6,670,500) will be canceled. AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE MEETING Thursday, November 14, 2002 Page - 3 - Staff met with the developer, the contractor and the Bakersfield Senior Center to reevaluate costs to try to work out a financing plan in which all parties contributed to eliminate the shortfall. The developer had $153,439 special contingency that was in the line items and because the construction estimates were so fresh and agreed upon, everyone was comfortable with a smaller amount in the HUD 202 requirement for contingency, so the $153,439 can be use to help fill the funding gap. The Bakersfield Senior Center and the developer have agreed on a lower price for the land, which provided $31,000. Construction value engineering costs were reevaluated and $11,633 was identified and Retirement Housing Inc. provided a cash contribution of $120,000. This leaves a net shortfall remaining of $360,000. Economic/Community Development staff aUdited, reconciled and closed out all of the old completed HOME projects resulting in available funds of $215,000. In addition, $145,000 of HOME funds is available from a housing project at Union and 4th, which was a mixed use, multi-family project that is moving along without a request for the HOME funds. They already have a contractor and do not want to go through the HUD requirements. Using these two sources of funds will not impact other City commitments. It was discussed although this project received a HUD 202 capital grant for construction costs, the HUD 202 program does not cover all costs associated with this type of project and it is quite common that other monies are needed. Economic Development Director Donna Kunz expressed this project is too valuable to just stop at this point. It is a $6.7 million capital grant, structured as a 40-year loan, but it is forgiven at the end of the 40 years. Therefore, staff recommended approval of the additional funds of $360,000 to the Bakersfield Senior Center Affordable Housing Project from the identified HOME sources. Richard Washington, Vice President of Business Development for the Retirement Housing Foundation, spoke and answered questions about the project. Committee Member Hanson made a motion to recommend to the City Council approval of additional HOME funds of $360,000 to the Bakersfield Senior Center Affordable Housing Project. The Committee unanimously approved the motion. Staff will forward the amendment to the agreement to the City Council. 6. COMMITTEE COMMENTS 7. ADJOURNMENT The meeting adjourned at 4:49 p.m. AGENDA SUMMARY REP(:~ BUDGET AND FINANCE COMMITTEE MEETING Thursday, November 14, 2002 Page - 4 - Attendance staff: Assistant City Manager John W. Stinson; City Attorney Bart Thiltgen; Assistant City Manager Alan Christensen; Assistant to the City Manager Darnell Haynes; Assistant to the Public Works Director Georgina Lorenzi; Economic Development Director Donna Kunz; Community Development Coordinator George Gonzales; and Recreation and Parks Supervisor Ken Trone Other attendees: Brian Todd, BIA of Kern County; Reporter James Burger, The Bakersfield Californian; Reporter Peter J. Rudy, KUZZ; Brian Jeter, Reba West, Polly Warren, Alvin and Gina McClellan for the Bakersfield Senior Center; Richard Washington and Joanne Yokata from the Retirement Housing Foundation cc: Honorable Mayor and City Council S:\Darnell\O2Budget and Finance\O2nov14summary