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HomeMy WebLinkAbout1999 ADMINIST TIVE REPORT I MEETING DATE: June 30, 1999 AGENDA SECTION: New Business ITEM: 12.c. TO: Honorable Mayor and City Councilmembers APPROVED FROM: Bart J. Thiltgen, City Attorney DEPARTMENT HEAD ~ DATE: June 22, 1999 CITY ATTORNEY ~ CITY MANAGER SUBJECT: Ordinance amending Chapter 5.56, sections 5.56.010 et seq., of the Bakersfield Municipal Code relating to Transient Outdoor Businesses RECOMMENDATION: Staff recommends first reading of the ordinance. BACKGROUND: Recently a local businessman, who was subject to the Transient Business Ordinance, requested a review of the Ordinance. The request was referred to the Budget and Finance Committee. Staff has revised the Ordinance to lengthen the time for seasonal outdoor businesses to hold a · permit, clarified and improved the specificity of the process for obtaining a transient outdoor permit and improved the specificity of the regulations applicable to outdoor businesses. Staff also substantially reorganized the existing Ordinance to improve continuity and facilitate research. The Budget and Finance Committee approved by a 2-0 vote submission of the Ordinance to the Council with a recommendation for adoption. This is the first reading of the Ordinance. AMS;alj S:\COUNClL~Admins\Transient Outdoor Business.wpd JN3OCA.NB June 22, 1999, 12:54PM ADMINISTRATIVE REPORT MEETING DATE: June 30, 1999 AGENDA SECTION: Consent Calendar ITEM: 8.h. TO: Honorable Mayor and City Council FROM: Jake Wager, Economic Development Director DEPARTMENT HEAD DATE: June 17, 1999 CITY ATTORNEY ~/Z~ ,~r.,.,- CITY MANAGER SUBJECT: 1. A Resolution of the City Council of the City of Bakersfield Regarding the Use of Housing Set Aside Monies Outside the Downtown Redevelopment Project Area. 2. Appropriation of $800,000 from fund balance in the CDDA Operating Budget in the Redevelopment Housing Set-Aside Fund. 3. Agreement with Golden Empire Affordable Housing, Inc. for Home Investment Partnership Program funds for a 80-unit Senior Project north of Central Park. (WARD 2) RECOMMENDATION: 1. Staff recommends adoption of the resolution. 2. Staff recommends appropriation of $800,000 from fund balance in the CDDA Operating Budget in the Redevelopment Housing Set-Aside Fund. 3. Staff recommends approval of the agreement. BACKGROUND: The Golden Empire Affordable Housing, Inc. (GEAHI) a non-profit housing developer has requested financial assistance to construct 80 senior housing units on 3 acres located at the northeast corner of 21st and "R" streets (north of Central Park). The proposed complex, the Park Place Apartments is being developed by GEAHI and will house Iow and very-low income seniors with income no more than 60% of the City's median income. The Housing Authority of the County of Kern (HACK) will manage the units for GEAHI. One by- product of the ownership and management structure is that the project will be exempt from property taxes. The total project cost is estimated at $6.18 million. GEAHI will be submitting this project to the State of California Tax Credit Allocation Committee (TCAC) for 9% Iow income housing tax credits. If approved by TCAC, the equity generated by the sale of the tax credits will provide $4.6 million for the balance of the financing for this project. With respect to the City of Bakersfield and Central District Development Agency (CDDA) participation, GEAHI is requesting $550,000 of Home Investment Partnership Program (HOME) to assist in the acquisition of the property (as well as other project costs) and $800,000 of redevelopment housing set-aside funds. Due to the somewhat peculiar scoring system used by the State of California, the CDDA's portion of assistance is proposed to be made available in the form of a 55 year loan at 11/2%, deferred for the first 10 years with an amortized annual payment made for 45 years thereafter, as opposed DIk:P:~ADMINS\GEAHI HACK Admin.wpd June 23, 1999, 11:25AM / DMINISTRATIVE REPORT Page 2 to the HOME funds which are proposed as a grant. The table that follows breaks down the sources and amounts of funds needed for the project: City of Bakersfield Home Funds $550,000 Central District Development Agency $800,000 9% Low-Income Housing Tax Credit $4,620,784 Developer's equity $208,972 Total $6,179,756 In considering the use of redevelopment housing set-aside funds, the law does permit a redevelopment agency to expend housing set-aside monies outside of the project area only if a finding by the agency and the City Council is made that such expenditure will benefit the project-area. It is staff's conclusion that the development of this senior housing project will be of benefit to the existing downtown project area. The construction of this project will constitute the first new housing development in this area in well over two decades. In addition to finding benefit to the existing project area, funds must also be appropriated from fund balance subject to any CDDA action on this item at their meeting on July 12, 1999. On March 12, 1999, an analysis of GEAHI's request was completed by the City's housing consultant, GRC Associates. GRC's analysis determined that the financial information presented by the developer accurately reflects the developed cost for the type of project proposed. In addition GRC has made some additional recommendations including the following: · Require the developer to offer documentation on the value and sale of tax credits. · Structure the transaction to return Agency funds prior to payment of deferred developer fees. · In addition to the annual compliance report, require the Developer to submit annual operating reports on the project to .the City/Agency setting forth the level of revenues, reserves, occupancy rates and operating and debt service costs. · Authorize the City/Agency to require replacement of project management if sustained management problems persist in the future. At the May 17, 1999 Budget and Finance Committee meeting, the project and the recommendations proposed by GRC was reviewed. The Committee unanimously approved recommending sending the request to the full Council. A specific request was made that the project be constructed under the State of California's Prevailing Wage Law. A CDDA Ad-hoc Committee also reviewed the proposed funding request by GEAHI. The Committee unanimously recommended sending the request to the full Agency of housing set-aside to be committed to this project. This item will be considered at the CDDA meeting July 12, 1999. Due to a severe time restraint staff was unable to provide Council with a signed copy of the agreement. A copy of the agreement has been provided for Council's review. An executed agreement will be signed prior to Council action tonight. DIk:P:~ADMINS\GEAHI HACK Admin.wpd June 23, 1999, 11:26AM ADMINISTRATIVE REPORT I MEETING DATE: March 17, 1999 I AGENDA SECTION: Consent Calendar ITEM: 8. f. TO: Honorable Mayor and City Council APPROVED FROM: John W. Stinson, Assistant City Manager DEPARTMENT HEAD ~.~ v DATE: March 5, 1999 CITY ATTORNEY ~ CITY MANAGER SUBJECT: Resolution Establishing Ambulance Service Charges. RECOMMENDATION: Staff recommends-adoption. BACKGROUND: On February 10, 1999, the City Council conducted a public headng regarding the proposed increase in ambulance rates. There were no public comments in opposition to the proposed rate schedule. Council directed staff to prepare the resolution to implement the proposed rates. Pursuant to the Ambulance Ordinance, the new rates are to take effect on Apdl 1, 1999 upon adoption by the City Council of a resolution setting the rates. The following is the proposed rate schedule: Basic Life Support ("BLS") $342.00 (Includes Prescheduled non-emergency responses when ALS procedures are not requested or provided) Advanced Life SUpport ("ALS") $575.00 (Includes all 911 responses, responses not pre-arranged within two hours of ambulance dispatch time and non-emergency responses when ALS services are specifically requested or provided) March 5, 1999, 11:12AM ADMINISTRATIVE REPORT Page 2 Mileage $ 15.00 - (Per mile from pick-up point to delivery point) Night Charge $ 67.00 (7:00 p.m. to 7:00 a.m.) Emergency Response $ 50.00 (911 responses and code 3 use dudng response or transport for private emergency calls) Oxygen $ 57.00 (Per cylinder or portion thereof used) The ambulance providers have also requested an additional rate adjustment for increased costs due to the elimination of medical and drug supplies restocked by hospital emergency rooms. This item has been referred to the Budget and Finance Committee, which is reviewing the request. Staff recommends adoption of the resolution. ' JWS:jp S:~JOHN~AMB~,mbulance Rate Admin March 5, 1999, 11:53AM RESOLUTION NO. 2 ~' - 9 9 A RESOLUTION. ESTABLISHING AMBULANCE SERVICE CHARGES WHEREAS, Section 5.10.120 of the Bakersfield Municipal Code sets forth the procedure for certificate holders to request rate schedule increases, and for the City Council to review and modify the rate schedule; and WHEREAS, the City Council has considered changes proposed by the ambulance operators in the City of Bakersfield; and WHEREAS, the City Council has determined that some change is necessary to provide for an appropriate medical response by ambulance operators. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield that the charges for ambulance service are hereby set as follows: Basic Life Support ("BLS") .............................. $ 342.00 (Includes prescheduled non-emergency responses when ALS procedures are not requested or performed) Advanced Life Support ("ALS") .......................... $ 575.00 (Includes all 911 responses, responses not pre-arranged within two hours of ambulance dispatch time and non-emergency responses when ALS services are specifically requested or provided) Mileage ............................................ $ 15.00 (Per mile from pick-up point to delivery point) Night charge ........................................ $ 67.00 (7:00 p.m. to 7:00 a.m.) " Emergency Response ................................. $ 50.00 (911 responses and Code 3 use during response or transport for private emergency calls) Oxygen ............................................ $ 57.00 (Per cylinder or portion thereof used) The above rates are all-inclusive rates and additional service charges shall not be added thereto. The above rates shall take effect on April 1, 1999. ...... O00 ...... --Page 1 of 2 Pages I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on MAP, 1_? ~999 by the following vote: AYES: COUNCILMEMBER CARSON, DeMOND, MAGGARD, COUCH, ROWLES, SULLIVAN, SALVAGGIO NOES: COUNClLMEMBER ABSTAIN: COUNCILMEMBER ABSENT: COUNCILMEMBER )V'O n ~. Assistant CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED MAR 1 7 1999 BOB PRICE ;' MAYOR of the City of Bakersfield APPROVED as to form' BA RT~. TH~ '~ CITY ATTORNEY of the City of Bakersfield JWS:jp S~JOHNV~MB~Ambulance Rate Resolution March 5, 1999 February 4, 1999 Bob Miller Pres., Kern County Soccer Found. 12340 Backdrop Ct. Bakersfield, CA 93306 Hm. 805-872-4567 Wk. 805-861-2861 Fax 805-746-2045 Mrs. Pat Demond Councilwoman, Ward 2 1104 Radcliffe Avenue Bakersfield~ CA 93305 .................... Re: Kern County Soccer Park Paving, Curbs, and Gutters Dear Mrs. Demond: The Kern County Soccer Park Board is hoping to improve the Soccer Park by overlaying.our interior roads with asphalt and the addition of curbs and gutters. This is a pressing need as the oil sand covering is crumbling. Environmental and health concerns, and aesthetics, are primary needs. In addition, since we host very large school tourna- ments, and have sand/dirt deliveries, as well as concession products, we need a stronger road to support buses and trucks. The parking lots will remain oil sand. The total cost of our project, from the estimate from Granite Construction, is $97,000. The Board is requesting funding from many sources and it is our hope that the County would consider participation. The Park is located on County land, as you know. During our regular season, we have club leagues and AYSO that include over 2,000 local players each Saturday. The largest user, AYSO Region 181, is based in your neighborhood, east and northeast Bakersfield. The Soccer Park is a safe and secure facility that is fully serviced ~with concession,~parking areas,_and staff, including paid emplgyees, volunteers, and court mandated community service workers. Over the last few years we have constructed lights on four fields ($170,000), and have lighted the roads from the entry gate to the illuminated fields(S27,000). We have also built a tournament building(S13,000) and very impressive shade structures(S27,000) for patrons, officials, and the various merchandisers that attend our events. Our previous grant from the City, from Destec funds in 1996, resulted in our field lights installed in a few short months. We have hosted hundreds of games under those lights these last three seasons. This past weekend our facility hosted State Cup play. Ninety teams played all weekend, with sixty of them traveling from as far as San Diego. Approximately 900 families visited our area from Friday afternoon thru Sunday. The Convention and Visitor's Bureau estimates the economic impact to the county from this one event is $410,00. We will host five similar events from now until the end of April. The United States Youth Soccer Association Western Regionals will return to our facility in .lune. This is week long tournament in which the champions from the 13 western states, in the various age groups, play to qualify for the Nationals. This event was here in 1990 and 1994, and the economic impact to the county is estimated to be $2,736,000,with 4,000 participants. Approximately $50,000, will be collected in room taxes to the City. We are suggesting participation from the city in the amount of $30,000, half from a loan over two years, the remaining $15, 000, from grant funding. I would be happy to arrange a personal visit with you to discuss our complete proposal. Any additional information that you may require will be furnished at once. MEMORANDUM February 4, 1999 TO: BUDGET & FINANCE COMMITTEE COUNCIL MEMBER PATRICIA DEMOND -- CHAIR COUNCIL MEMBER MIKE MAGGARD COUNCIL MEMBER MARK SALVAGGIO FROM: BART J. THILTGEN, CITY ATTORN,I~/j~,~ ' SUBJECT: BAKERSFIELD ART MUSEUM ~/ ~ Chairperson Pat DeMond requested a I sting be'prepared describing legally pe~issible alternatives ~i~ may be considered by the Committee when discussing the issue of the proposed elimination of the "reversiona~ clause" in the contract of sale of properly.from the City of Bakersfield to the Bakersfield A~ Museum. The proposed elimination of the "reversiona~ clause" is associated with problems en~untered during the museum's attempt to obtain financing for a building expansion. The following listing is provided, with ~mments included for ea~ alternative to point out potential ramifi~tions for the CommiRee to consider. Each alternative was developed with the view of either a) protecting the City with the reversiona~ clause removed or b) protecting the financing institution with the retention of the reversiona~ clause. The alternatives explored are based on the promise that the Bakersfield ~ Museum o~s, develops, and is responsible for the museum, its operation, its expansion, and any debt retirement. Fu~her, it is assumed that the mvemiona~ clause exists 1 ) to protein the Cites original investment and 2) to protect the City from, under a worst ~se scenario, having the museum prope~y develop as an in~mpatible use that would detract from Central Park and its historic uses. 1) It has been suggested the City consider the issuance of a bond for the financing of the improvements. -- While this type of bond-issuance may be legally permissible, in order for the City to be able to legally issue such a bond, the in.me stream needed to repay su~ a bond must be established. Based upon available information, it appears the current stable income stream of the museum would not be able to meet debt se~ice, and the issuance of a bond by the City on behalf of the museum would not b~ financially responsible nor legally feasible. THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK-PRODUCT PRIVILEGES. S:~COUNClL~MEMOS~Museum. RevisionaryClause.wpd BUDGET & FINANCE COMMITTEE COUNCIL MEMBER PATRICIA DEMOND -- CHAIR COUNCIL MEMBER MIKE MAGGARD COUNCIL MEMBER MARK SALVAGGIO February 4, 1999 Page 2 2) Retain the reversionary clause while facilitating acquisition of other funding sources (i.e., grants (Federal/State, if available)and/or encourage private donations to the museum to enhance the museum's financial capability in order to avoid the need for involvement of a financial institution as a source of funding for the new building. -- This alternative would maintain the status quo and would have no impact on either the City or any financial institution. The immediate availability of such grant funding and/or the interest of the public, or lack thereof, in providing such donations could defer any new building for a period of time which may or may not be acceptable to either the museum or the City. 3) Modify the reversionary clause to provide that if the museum sells the property, the City would receive from the sale proceeds an amount equivalent to the market value of the underlying property and the building as it exists prior to expansion less the $5,000 the museum paid for it (The July 1999 Appraisal stated the market value of the land and building was $309,000). -- This alternative does not address the issue of the ramifications which may occur if the museum ceases operation. While it would protect the City in a sale, and presumably would protect the financing institution by having the building be the unburdened security for the note, both the City and the financing institution would be at risk if the museum ceased operations. It is also unknown whether this alternative would be acceptable to the lender. 4) Eliminate the clause in consideration of a payment to the City of the fair market value of the underlying land and building as it now exists, less the $5,000 already paid to the City. -- This alternative presents the least risk to the City as the City would no longer have any interest in the property, the operation of the museum, or the relationship with the financing institution. Conversely, the Council's stated policy for the Continuation of a relationship with .the museum and the promotion of culture in the City were the original goals to be accomplished with the reversionary clause. Also, this alternative does not provide the City with any guarantee against the potential for incompatible uses under a worst case scenario. THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK-PRODUCT'PRIVILEGES. · S :~7-~UNCILWIE MOSWluseu m-RevisionaryClause.wpd BUDGET & FINANCE COMMITTEE COUNCIL MEMBER PATRICIA DEMOND -- CHAIR COUNCIL MEMBER MIKE MAGGARD COUNCIL MEMBER MARK SALVAGGIO February 4, 1999 Page 3 5) Restructure the documents so that if, or when, the expansion of the museum occurs, the reversionary clause is replaced with a second deed of trust and a right of first refusal in the event of a default or proposed sale in an amount approximately equal to the market value of the land and building as it now exists less the $5,000 already paid. -- This alternative should be acceptable to a financing institution. Under a worst case scenario (the museum fails or wishes to sell the property), this alternative provides the City an option to step in and pay for the improvements to be financed by the loan and resume ownership and control or to decide that the circumstances are such that it release the second deed of trust and allow the proposed disposition of the property to take place. While this alternative has the potential that the City would have to pay off the first deed of trust to secure control of the property, it also provides the discretion to the City Council based upon the circumstances in effect at the time. 6) Eliminate the reversionary clause while contemporaneously rezoning the property to prohibit any other use than as a museum. -- This alternative would protect the City's interest in maintaining the cultural use of the property and protect against future incompatible uses. Whether this alternative would be acceptable to the museum is unknown, as it would restrict the museum's ability to pursue any property disposition in the future. Concurrently, the financing institution would also be restricted in its ability to dispose of the property in the future in the event the museum defaulted on its loan. 7) Eliminate the reversionary clause in its entirety and establish that the City will no longer have any interest in the property. --This alternative, while satisfying the financial institution and the museum, would be counter to the original goals of the Council. Further, this alternative may expose the City to possible litigation from other currently disinterested parties which could relate back to the basis and criteria for the original sale transaction. The above listing may not be all-inclusive, and an evaluation of legality and potential ramifications can be provided for other suggested alternatives. BJT:laa cc: Honorable Mayor and City. Council members THIS MEMORANDUM IS EXEMPT FROM DISCLOSURE AND IS PROTECTED BY THE ATTORNEY-CLIENT AND ATTORNEY WORK-PRODUCT PRIVILEGES. S:~COU NCIL~MEMOS~IVluseu m-RevisionaryClause.wpd PUBLIC STATEMENTS SPEAKER'S CARD Budget and Finance Committee of the City Council Committee Meeting Date You are invited to address the Committee under Public Statements on any subject that is listed on the Committee Agenda. Public statements are limited to three (3) minutes per speaker with a maximum of fifteen (15) minutes, per side, for any one subject. The Committee may, by simple majority vote, waive the time limit. No action will be taken; this Committee gathers information and reports back to the City Council. Please fill out a Speaker's Card and present it to the Committee Chair: Pat DeMond Name: Company/ Organization: Address: PUBLIC STATEMENTS SPEAKER'S CARD Bud(jet .and Finance Committee of the City Council Committee Meeting Date You are invited to address the Committee under Public Statements on any subject that is listed on the Committee Agenda. Public statements are limited to three (3) minutes per speaker with a maximum of fifteen (15) minutes, per side, for any one subject. The Committee may, by simple majority vote, waive the time limit. No action will be taken; this Committee gathers information and reports back to the City Council. Please fill out a Speaker's Card and present it to the Committee Chair: pat DeMond Organization: _ Address: '~ 0 '~"~2 L~._~-- ?(.~'O ~ ~,."~ ] C I~ ~ ('/ ~ Zl/-'~ 'or PUBLIC STATEMENTS SPEAKER'S CARD Budget and Finance Committee of the City Council Committee Meeting Date You are invited to address the Committee under Public Statements on any subject that is listed on the Committee Agenda. Public statements are limited to three (3) minutes per speaker with a maximum of fifteen (15) minutes, per side, for any one subject. The Committee may, by simple majority vote, waive the time limit. No action will be taken; this Committee gathers information and reports back to the City Council. Please fill out a Speaker's Card and present it to the Committee Chair: Pat DeMond Name: -~-~Z~'~ D y Company/ Organization: Address: Subject: