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HomeMy WebLinkAbout08/19/2008 B A K E R S F I E L D Staff: Rhonda Smiley Zack Scrivner, Chair Rick Kirkwood Harold Hanson Ken Weir SPECIAL MEETING NOTICE PLANNING AND DEVELOPMENT COMMITTEE of the City Council - City of Bakersfield Tuesday, August 19, 2008 1:30 p.m. City Manager's Conference Room, Suite 201 Second Floor- City Hall, 1501 Truxtun Avenue, Bakersfield, CA A G E N D A 1. ROLL CALL 2. ADOPT THE JULY 3, 2008 AGENDA SUMMARY 3. PUBLIC STATEMENTS 4. DEFERRED BUSINESS A. Update on.Traffic Impact Fees—Tandy/ Rojas/Shaw 5. COMMITTEE COMMENTS 6. ADJOURNMENT S:\Council Committees\2008V08 Planning and DevelopmentWugust\08 August 19 agenda.doc zoc-- ..... .. ,...,...,,r.. B A K E R S F I E L D Zack Scrivner, Chair Rhonda Srnl11e­yAssisthM to the City Manager/ P.I.O. Harold Hanson For: Alan Tandy, City Manager Ken Weir AGENDA SUMMARY REPORT Regular Meeting of the PLANNING AND DEVELOPMENT COMMITTEE Thursday, July 3, 2008— 1:00 p.m. City Manager's Conference Room — Suite 201 City Hall, 1501 Truxtun Avenue, Bakersfield CA The meeting was called to order at 1:11:23 PM. 1. ROLL CALL Present: Councilmember Zack Scrivner, Chair Councilmembers Harold Hanson and Ken Weir Staff present: Alan Tandy, City Manager Rhonda Smiley, Asst. to the City Manager Rick Kirkwood, Management Assistant Steve Teglia, Administrative Analyst III Raul Rojas, Public Works Director Brad Underwood, Asst. Public Works Director Bob Sherfy, Deputy City Attorney Stanley Grady, Development Services Director Marian Shaw, Civil Engineer IV Others present: Barry Nienke, Kern County Roads Darryl Tucker, Enus Construction Dave Dmohowski, Premier Planning Group Jeff Leggio, Grubb & Ellis/ASU Sandy Bergam, Rick Engineering Donna Carpenter, Sikand Engineering Tonya Short, HBA of Kern County Duane Keathley, CB Richard Ellis Vincent Roche, CB Richard Ellis Nate Meeks, Premier Land Management Mike Trunipseed, KernTax Joe Ham, Cahan Properties Scott Underhill, Grubb & Ellis/ASU Steve Adams, Grubb & Ellis/ASU Larraine Unger, Sierra Club Himanshu Bhakta, BC Student James Burger, Bakersfield Californian Marvin Dean, Kern Minority Construction Cal Rossi, McMillin Land Development Nick Ortiz, Greater Bakersfield Chamber of Commerce Planning and Development Committee July 3, 2008 Page 3 bond issue. In essence, we enter into that five year period in a down cycle, when our revenues are minimal. It is possible that if the economy recovers slowly, the City will have a shortfall. If that were the case, in order to be sure that we match all of the Thomas Roads monies and access the $630 million that he has provided, it would be recommended that City Council look at other revenues to pledge to the bond issue. It would be ill advised at this time to make an unequivocal promise and speculate that five years from now we are going to carve out general fund revenue and pledge it. Commercial developers made staff aware of the difficulties they will face with the fees that Mr. Rojas referred to as "high-end". Staff is researching several areas that have been raised. First, taking the worse case fees and looking at them in light of the vesting map assumption in place. If the vesting map assumption is reduced or eliminated, then there will be a tendency to lower fees in all categories. Second is to look at the core area. The core was established a few years ago and has not been amended. There is a pro and con side to amending the core area. Enlarging the core area would provide more infill lots, with a lower fee to build within the area. However, this would probably increase the fee in the exterior areas. Another issue raised by the commercial developers was that the traffic modeling assumptions for commercial offices were understated and retail commercial was overstated. Staff is looking into modifications in those areas. Finally, there are some identified components of the grid system that are beyond the growth range of this plan, and may not be dramatic in number or magnitude. Staff will be looking into all these areas to discuss at the next meeting. What was discussed here today is a status report. Marvin Dean of Kern Minority Construction, offered his support for a future sales tax or property tax increase, if such an effort includes language or provisions that require the contracts for any future highway development will be equally shared by all members of the community. Mr. Dean requests that the language include local participation and people who are not historically involved in the construction of those projects. 1. Mike Tunipseed of KernTax, provided to the Committee a report from the Kern County Employee's Retirement Association regarding Transportation Infrastructure Investment Opportunities for State Government Pension Plans. The report addresses pension funds investing in transportation projects. Mr. Tandy commented, in regards to the use of pension funds, those have to be paid back. Roads don't generate money. The only question would be, is the potential cost of interest less if you access monies through a municipal bond issue or another source? Joe Ham of Cahan Properties asked if Alan Tandy would explain where the CEQA challenges are coming from. Mr. Ham also asked if the increase in fees is based on timing of Federal monies and if so, could consideration be taken to give developers a longer lead-time warning before increases are implemented. Mr. Tandy stated that the increase in fees is driven in large part by the increase of highway construction costs. Current escalating oil prices have increased the cost for asphalt and oil base products. Planning and Development Committee July 3, 2008 Page 5 and they are not loading the grid, so there is less need for additional highway. Civil Engineer Marian Shaw explained that staff took a look at the regional projects, their affect on the core and non-core area, and distributed them out by the number of trips that originated in the core versus the number of trips. Portions of those numbers were used to get an idea of the effect the core has on regional projects and a dollar amount was obtained based on its current size. Because the regional projects are used by the entire City, the core trips generate approximately 15%. Committee member Weir expressed concerns regarding the allocation of all the cost to the core, and if the core is paying its fair share at this point. In response to Committee member Weir's question, Mr. Rojas stated that staff would look into that matter. As a follow-up to a previous discussion, Committee chair Scrivner asked if TRIP projects were on the regional list. In response, Mr. Rojas stated the TRIP projects are on the list. However, the core area has a different loading on the regional facilities, therefore the cost is less. In order to address Committee member Weir's question regarding the core paying their fair share, staff will go through the facility list to isolate the affect of the core trips on larger projects and provide more background on how the process is done. Committee member Weir asked staff for a timeline when this will be accomplished, and should the fees increase, when will this happen. Mr. Rojas stated it would take three to four weeks to get the final number to the Committee. After which time, it will be presented to Council and to the board, then will go into effect 60 days after adoption. This will not affect the consumer, unless they are developing and don't hold one of the 35,000 vested maps. If a vesting map lapses and gets renewed, they may be affected. Tonya Short stated that her organization is frustrated due to what they see as a lack of discussion regarding a backup plan. In response, City Manager Alan Tandy stated that preliminary concepts were discussed. Due to the current budget climate, staff cannot give a definitive revenue source or a timeline because at any time, the state legislature can capture local revenues. Mr. Tandy explained that if the $630 million of Thomas match funds were in jeopardy, staff will go to the City Council and discuss alternative financing options. This would include working with the bond underwriting firms to identify specific revenue streams within the general fund that could be carved out and pledged as security. Scott Underhill of Grubb & Ellis stated that raising fees would take the situation a step backwards. If looked at in terms of sales tax revenues, monies that would be generated under the old impact fee program would be lost. He also added that given the economic climate of retailers, this just may be enough to convince retailers to pass on Bakersfield. Mr. Rojas explained that staff has tried to identify what makes a system work at a level that is acceptable. Although hard to visualize, this system helps the development community by providing a clearer picture of developing in certain areas. City Manager Tandy concluded that staff is looking into the issues that have been raised and anticipate re-approaching the development community with a lower set of fees. However, there is going to be a fee increase in the numbers staff brings back to the Committee. Planning and Development Committee July 3, 2008 Page 2 2. ADOPT THE MAY 6, 2008 AGENDA SUMMARY Adopted as submitted. 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS A. Update on Traffic Impact Fees —Tandy/ Rojas/Shaw Civil Engineer Marian Shaw provided a brief overview of the preliminary fee schedule and the five stakeholder meetings held so far. Ms. Shaw's overview also included a 7- page oversized print of the facilities list, which identifies over 800 projects, their location and their current cost estimate. The list itself totals just over$2 billion for both core and non-core areas. Staff is currently working on further refinements to the list and to the fee schedule. One element staff will be looking into is the expansion of the core area. Public Works Director Raul Rojas added that staff is still looking at the program, including comments received from the development community. Mr. Rojas characterized the draft fee schedule presented as a "high-end"version at this point. City Manager Alan Tandy stated he understands concerns expressed over the current economic state and the consideration of increased transportation development fees during the downturn of the economy. He asked that those concerned consider two issues that are often overlooked. First, there must be a functioning transportation system in the long term, and the City has devised a plan which allows that. Second, is the increased intervention in development cases based on the California Environmental Quality Act (CEQA). If there are no plans in place for a functioning transportation system, then the CEQA challenges will have greater success. Mr. Tandy also responded to the following questions: 1. Is there any contribution, other those from the development community, to fund transportation needs? There is $630 million in monies generated by Congressman Bill Thomas and the Federal SAFETEA-LU Program. Over the next six months, the City will be in the process of putting in bids for $153 million in STIP funds they have been working on with the CTC and Kern COG for the past 14 to 16 years. A part of the funding prospectus for a future transportation development fee bond issuance is to incorporate gas tax monies, which will cover approximately 20% of the debt service. In addition, the City will continue submit applications to every conceivable state and federal grant program in order to secure additional funding. 2. What if the downturn in the economy remains in place? What if the prospective bond issue that we proposed five years from now, isn't supported by the amount of money we receive? First, the bond underwriting and bond insurance firms use a long-term look at trends for these fees, focusing most on the five years prior to the Planning and Development Committee July 3, 2008 Page 4 Committee members requested staff provide a comparable cost report of communities within the central valley, history of costs to determine if increases were recently implemented and a comparison of all fees within the fee package. Vincent Roche of CB Richard Ellis, asked if the City and County has taken into consideration the loss of revenue to retail land due to fee increases. Mr. Tandy responded that the nature of the fee is to pay for regional improvements, not local improvements. The nature of the use of transportation development fees would be to pick up pieces that were missed by the developer. The following questions were also raised during the discussion and were responded to by City Manager Alan Tandy: 2. is the Thomas match money all that is on the System? No, there is a great deal on the system that goes beyond the Thomas match money. What should be understood is that staff builds a model of the future grid system and projected traffic, and makes the traffic comply with level service C. If the Thomas Road Projects were taken out of the equation and that portion of the carrying capacity on the grid were eliminated in order to reduce the match need, then you would have to build a 12 or 14 lane arterial street. Because you no longer have a freeway system, you are loading all of the other remaining streets unreasonably in a way which would not be feasible to construct. 3. If we went to the level of service D would it have the impact of reducing some of the fee increase? Yes, it could be considered by the elected body. 4. Have we exhausted other ideas and other avenues for funding? We comprehensively attempt to. We have a lobbyist to identify any money available for street and highway projects. Staff is heavily involved in working with the CTC and Kern COG to receive our fair share of the monies which come to us regionally. Staff is also working with senators and congressmen on their renewal of the SAFETEA- LU legislation. We've looked at whether toll roads would work in Bakersfield and, essentially, they do not. Committee chair Zack Scrivner stated that increasing the core area is fair, in theory. However, the building industry, both home builders and commercial, are going to have to bear the burden if that cost is shifted. Committee chair Scrivner asked Tonya Short of Kern HBA to provide feedback from her industry on how people would feel about increasing the core area. In addition, staff was asked to provide more information to determine the pros and cons. Committee member Ken Weir added that there are projects in the non-core area that provide a tremendous benefit to the core area. He asked staff if the cost of those projects are included in the cost of the core area and how are those cost allocated. In response, City Manager Tandy explained that staff runs an internal list within the core of the improvements that are needed, which becomes a smaller version of the whole. If a freeway runs through the core and to an outlining area, that portion which is within the core is counted as benefiting the core. An example of this theory would be the Cottages project where the residents work and shop in the downtown area. Since their net commute time is probably under a mile, Planning and Development Committee July 3, 2008 Page 6 B. Update on Maintenance Assessments for Special Storm Drain Facilities Required in Response to the Clean Water Act— Rojas/Shaw At the request of Committee chair Zack Scrivner, staff was asked to investigate the issue of applying a storm water maintenance fee for Clean Water Act required separators, through sewer user fees. Public Works Director Raul Rojas reported that staff is currently looking into making assessments part of the annual sewer user charge for both new and existing homes and will include the cost to retro-fit the existing sumps to these units. After consulting the City Attorney's Office, staff concluded that modification to the City Maintenance District ordinance will not be required. Staff will work with the City Attorney's Office and the Finance Department to include the maintenance charge in the future sewer user fees and will bring it back to the committee at a later date. Audience members asked if the City to be open to the use of pervious concrete and other cutting edge methodology for disposing of storm water, as opposed to setting aside land and sumps. Mr. Rojas added that the concept is good, however due to the amount of dust in Bakersfield and the maintenance associated with that, an underground system would be more probable. 5. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting adjourned at 3:08:25 PM. cc. Honorable Mayor and City Council members B A K E R S F I E L D CITY OF BAKERSFIELD PUBLIC WORKS DEPARTMENT MEMORANDUM TO: Planning and Development Committee FROM: Raul Rojas, Public Works Director DATE: August 15, 2008 SUBJECT: Transportation Impact Fee Update- Phase IV City and County staff have continued work on refining the Facilities List and costs. Using these numbers, and taking into consideration the comments received on the impact for both residential and commercial projects,staff prepared a new Fee Schedule for Core and Non-Core. This list was presented to a Stakeholders meeting held at the County Public Services Building First Floor Conference Room on August 14. The most notable change from the last version is an "economic recovery fee level" for the first year. Attached are 3 exhibits: 1. The first is the handout to the August 14 meeting—a summary of the changes from the last fee schedule, and the schedule itself for both Core and Non-Core. 2. Building Fee Comparison chart. This is prepared annually by the Building Department, comparing all building fees across various municipalities showing Bakersfield's relative position regarding the level of building fees. 3. A memo from Muni Financial to the City of Visalia comparing Transportation Impact Fees across 10 jurisdictions. Traffic Impact Fees The City and County have been reworking the Traffic Impact Fee schedules after presenting a draft fee schedule, a series of stakeholder meetings and subsequent comments, and initial consideration and comments by the Planning and Development Committee. There are, of course, inherent differences of opinion between public officials and the development community regarding the level of the fees. Public officials have identified a need for revenue to deal with road system demand caused by growth, while development businesses must account for the costs involved in pricing of residential and commercial properties. Despite that difference in perspective, efforts have been made to listen and adjust the fee schedules and, where feasible and prudent, to make some adjustments in response to comments. The revised draft fee schedules for the core and non-core areas are attached. The most persuasive comment made during the review of the previous draft pertained to the state of the economy and the need for a recovery period prior to implementing the ultimate fee schedule. This position was taken by both residential and commercial developers. The argument on the residential side, realistically, has less merit than it does on the commercial side because, under State laws, vested maps carry the old fees that were in place on the vesting date until and unless the map expires. The State legislature just added a mandatory year of life to all vested maps. There are approximately 35,000 such lots in Bakersfield. Commercial properties generally do not have the "vested lot" advantage. Many have been "in process" for a long period of time with budgetary assumptions that could not predict the level of the new fees. The "hardship" claim in these instances is real and could have meaningful consequences. To adjust for these concerns, staff is recommending that the revised full fees be adopted but that, for one year after adoption, an "economic recovery fee" level be put in place with a fee level at 90% of the full amount. * Despite the vested map issue, it is proposed for both residential and commercial schedules. It provides a full year with an incentive to stimulate the economy and bring projects to the building permit issuance stage. It would also be possible for the City Council to add another "recovery" year if, 12 months after adoption, the economy has yet to recover. The full fee schedules will be implemented, and, absent additional Council action, will go into effect in one year. Numbers For single-family homes, the initial number presented was $14,490, for both the City and County. The new full fee is now $13,703. The economic stimulus rate for the first year is $12,325. The fee in the City is currently $9,553, with the interim amount added by City Council, and $12,958 in Kern County. Other Adjustments There have been some other modifications to the schedules as a result of a number of issues. These include refinements in overall costs and estimates for the impacts of vesting maps, and trip generation assumptions on certain types of commercial properties. With these adjustments, and due to the fact that residential development drives commercial development, there has been some net benefit to the commercial schedules. Tables and comparisons are attached. * In order to have an "Economic Recovery Fee", and to comply with nexus requirements, the revenues not collected during the one year have to be recovered over the remaining life of the program. 0f 6 Q Q Q Q Q Q Q < < < < < Z C C C C C C � (VJl W W COJI CWO CD C,)N �a W 0f 0f a' Zr <Ivll n ! ! 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M Q6 kCO @ $2 \ ! 2t co FL v) 2 m . 7 a ~ k OD | MuniFinancial Memorandum To: Eric Frost,City of Visalia From: Jeff Kay,Eric Nickell and Nick Arevalo D VISED:April 29,2008 Re: Transportation Impact Fee Comparison This memorandum summarizes the findings from a survey of transportation impact fees among cities in the San Joaquin Valley. In many cities, fee amounts vary by zone. Additionally, fees are often assessed in different manners, such as per land acre, per building square foot,per daily trip generated or per PM peak-hour trip generated.As needed,we have made assumptions to facilitate an apples-to-apples comparison. Please see the footnotes for further detail. In general, Table 1 indicates that Visalia's fees are near the regional high for most land use categories. The table also shows that development fee burden distribution among residential and nonresidential varies significantly by jurisdiction. For example, Porterville allocates fee burdens heavily toward commercial uses, while in the Bakersfield core zone fees are weighted more heavily toward residential. This type of variation is typical of traffic impact fee programs and reflects the range of reasonable alternatives that are available to public agencies within the confines of a sound and defensible fee program. SCOPE OF IMPROVEMENTS FUNDED BY DEVELOPMENT I M PACT FEES Impact fee amounts do not always reveal the full cost to developers for transportation improvements. In many jurisdictions, developers are required to pay impact fees for selected improvements of regional significance and the inner travel lanes for arterial improvements. In these cases, dedication of the outer lanes, along with curb, gutter, and sidewalk construction for many road segments is typically required as a condition of development of adjacent parcels. The true cost to developers, then,is considerably higher than the amount of the impact fees. Other cities, by contrast, include all major improvements in the fee program, leaving only internal local streets to be constructed and dedicated by developers. To facilitate a useful comparison of fee amounts between jurisdictions, the following list presents the best available data regarding the scope of improvements funded by fees in the surveyed cities. • Visalia: Full curb to curb improvements are funded for all streets and are subject to reimbursement in the event of developer construction and dedication. • Bakersfield: For most segments in the program, the fees fund only the inner travel lane. All other improvements (including right-of-way dedication) are required as a condition of development. 1700 Broadway, 6'Floor Tel. (510) 832-0899 Oakland, California 94612 www.muni.com Fax(510) 832-0898 REVISED.-April 29, 2008 Page 2of4 • Clavis: Full curb;to curb improvements are funded for all streets included in the fee program. The program has separate fees for :the inner lanes, outer lanes, sidewalks, and curb components.' All components, as well as right-of--way dedication, are subject to reimbursement. • Fresno: The fee program funds shoulder to shoulder improvements, excluding curb, gutter, parking lanes, bike lanes, ac dikes, sidewalks, utilities, street lights, sounds walls, and landscaping. The unfunded items are required as a condition of development and are not subject to reimbursement. • Hanford: Full curb to curb improvements are funded for all streets included in the fee program. All improvements and dedications are subject to reimbursement. • Merced: The City requires all frontage improvements, the first 24' of paving, and the first 37' of right-of-way as a developer dedication with no reimbursement. Any improvement or right-of-way dedication inside of these limits is eligible for reimbursement. • Modesto: The City requires all frontage improvements and the first 40' of paving and right-of-way as a developer dedication with no reimbursement. Any improvement or right-of-way dedication inside of these limits is eligible for reimbursement. • Porterville: The fee program funds only the inner travel lane. All other improvements are required as a condition of development and not eligible for reimbursement. • Stockton: Developers are required to dedicate right-of-way and construct roadways for all abutting road segments up to 144' wide. This represents the entirety of most roads in the City. The traffic fee is used for regional roads and improvements to existing roads that would not otherwise be improved through development requirements. • Tulare: The fee program funds only the inner travel lane. City requires substantial dedication for outer lanes and curb/sidewalk improvements. Only the right-of-way and construction costs for the inner lane are eligible for reimbursement. Table 2 provides a summary of these differences across the surveyed cities. REWSEAAprd 29,2008 Page of 4 Table 1:Trans lion Im pact F"COMF grison VlaaIla 8lslos Land Use C Cora Non"Con Fns • Ma I • n• T 1 t0 8atftleO�iLf f9M FamhV S 8,368 S 3,403 $ 6,828 S 6,475 $ 5,430 $ 2,284 $ 6,483 $ 10,231 S 955 $ 14,288 S 1,601 4,314 1,633 3,276 5,398 2,975 1,570 3,904 7,087 647 10,417 1,111 71nduW217 3 10,527 $ 910 $ 1,649 $ 8,849 $ 5,862 $ 9,727 S 12,499 S 18,731 $ 4,678 $ 7,948 S 3,013 5'194 884 1'788 5,728 3,334 1,998 10,418 10,274 2,459 8,198 2,109 1,623 302 610 7.433 1,087 1,302 2,751 3,984 897 2,591 1,182 In addkwn to ao vend tat a11ood"atom above.Vasa hn onoMe fan far osn*wm*m�,mobiw awPPbq amps,ar was aOMa ahem,howw,ahunI mmd cW d4m'gowmmam,e61n Pares, btdualdd,maoomnwdYaa,raidarWal P.U.Q'a,dwaowd"U,heMwn Amu,11al food dtabw. The tea vra anvartad w 1.000 seq.A.uaw6 the Ns%km Corp"Empwyntpd Owok ataraary Ropod eaeWakort Nat oa btuarW art warahorw. Indw"110 am pamndy ohargW Par empwyea. 2 Tw 9akars6ald 110'"ad an for 1M Con and Non.Cen Ana of do •nN•y w• ^t b N7 seq.ti M 132,1163 and 6N,r*"Mbv y brtw wm ems and tab,6126 and St7744 for lim non am t 007.The M tar a Fee w,d bwa,and klduaWal dawwpmOM am vow nko av0mpa d111y Mpa at■par MP eat PK 1.000110 fool Fn was dalerrnined bead a the Napa olp 6pmrwon fae11rs(17E)pw wrt use aMpodaa. 'The Ckwb$kW*ym/p raamwft fa edena11 based on a The of 132,377 par am for&OWS**nskwrtw pt 6N,642 per ape for madwae.It w eaumsd Nan an s elope Mdy harms and 16 Auld f 0.21 formes Wears.Bead on Naas den11Raa,po multl4pNy danwpnpdwouw 1111 tlydarim t ra'ww emW tlaNpmaen.Nonmai#nM fen bow on 00,9"par gas and a Onr ana. raeo(FAR)of 0.21 for opnmpaY,020 M ellwa,and 026 to InduaW.Cbvw was Ow"W"be amn VO fN Iwet w for SwAn Fa Am Ink ha aaan Na moa bwwpam h tlm wet 6v0 yarn. 'Tw Frenoabot0 famly n MInO to*ealbna11 bond on ale of 627,161 par am Aar slow wetly rasidaaa tad 6",621 par a•m for mu*4nnpy makann.An 6 ablpw 11tnly home and 16 rs Umy htarN11 Per spa.Ccmw*rcW 11011 bawd an In of 603,626 W am and a FAR of 021.Me fee based as a In of 613.674 par ape and on FAR d 026.InduW W fee baaad an a M of 611 m par seem and an FAR of 026.A111005 NO based a On Now OnrM Am lea gone(-W a N%of prolaogd IPeaM via be waalad)and vra be VA am a of Juy 1,200.FIm vd1 an bu actin on July 1,ION. spook fee TWOAOCM for Ms N vend na nwppfa Fea•wtwt an for'7bo1a pally,•AWWWnf,^'limWWSMWM y ROW1."Memo OIOa."and NIGne t Indu11bwl."Amounts awvm do not kmkmM a 20% awlgrntamwilAw 6o Central Paddro and Imperannt DINIM EttaWw JWy 16207. rMWPD d bataaan Na liph ur over tlndart Low Tuner 11 ,and Imb fd et_W a and Tra16o 61pww.n bum@MW be band an tw'Rabt4>60.000 a.f.`fin,"whloh noomeMa maphfy tln CommaroW fan band on Vve"Retak eawa11fwa tor amaiar aba �.IndYam 110110aad on ao 14W 0aw6ay. (rtNr bo,000 as Rr oatpay.of6a ease a roeral aiee."Imltoawt based on"lnauada(MwAd a ptr a.. 'E6.wee 711 NOT ' ISP IN"to(RTIa.11 emouma am,sawn 11•=-.V*rWm by go-is mwtlny ff*W VWM h*ft aeNfata 16"tar ON impmwrr OM WW Mft ppnw but do not bowda a rowel MINNOW dm oombwad UM for loaleieeae ffoa wW •w an FAR of 02111r opmomW and 020 far aawa.leduabW fee band on a fa of 612.60 par eon and an FAR of 0.26.Fe Wnma wnd5aPw0.reaoad pate aperNloa,art slat hVeemy pro)nw. Sources:Na11won Company Enpwymwd DwWly&mrm y gaped MY of VMM,C y of aawaafWq Ck/of Cb*;Ck1r of Fmno•Cky of FlaMwd,CRY Of Pp11maa and qy of TuWa 1barlFinerrewf X X x m E c a c X X X °�- d y a� v � 49 x x xxx X m cm c x x x E 2 Q C L m �, 0 o x .� 0 Lo = m N O p m E E E cam, m U LL d. u) !- x a it ix g m N 0 W The following documents were distributed during the Regular Meeting of the Planning and Development Committee Meeting of August 7, 2008 CWBER August 19, 2008 The Honorable Zack Scrivner Chairman, Planning and Development Committee City of Bakersfield 1501 Truxtun Ave. Bakersfield, CA 93301 RE: Regional Traffic Impact Fee Update On behalf of the Greater Bakersfield Chamber of Commerce, which represents over 1,500 businesses, collectively providing over 50,000 jobs, I would like to express our desire for the City of Bakersfield's Planning and Development Committee to approve a continuance nce for all items ms relatin to the Traffic Impact g Regional p ct Fee Update the City of Bakersfield akers y field and the County of Kern are jointly considering. As you know, the Greater Bakersfield Chamber of Commerce has been a strong supporter of enhancing and expanding our transportation infrastructure. We have led or co-led efforts to provide funding for projects, advocate for the approval of projects, and have also participated on many issues as a stakeholder. Though our enthusiasm for the TRIP program has not waned; we do have some questions and general concerns about the fee program's update. Therefore, we respectfully request a continuance so we and our industry partners can have time to review the documents associated with the update project, including the nexus study. Also, the Chamber would like the City and County to present the final proposal to our organization, specifically to our Government Review Council or GRC. This is the start of the Chamber's process for taking an official position. Though we are now in discussions with the staff to have such a presentation, up until now, the Chamber has demurred from taking an official position out of respect for the importance of the TRIP program to our region, and deference to your staff. We would now like the opportunity to consider the program before it is heard by the full council. Thank you for your consideration and continued partnership, we look forward to further discussions on this issue. Sinc- ly, Debra L. Moreno President/CEO Greater Bakersfield Chamber of Commerce cc:Members,Planning and Development Committee,Bakersfield City Council Members,Kern County Board of Supervisors,Districts 1-5 Alan Tandy,City Manager,City of Bakersfield Raul Rojas,Public Works Director,City of Bakersfield Ron Errea,County Administrative Officer,County of Kern Craig Pope,Director,Roads Department,County of Kern Greater Bakersfield Chamber of Commerce Your Partner in Business. 1725 Eye Street•P.O.Box 1947,Bakersfield,CA 93303•Tel 661.327-4421•Fax 661.327-8751•www.bakersfieldchamber.org 1 California State Municipalities Efforts to Increase Economy Stimulus through Cooperative Efforts with Construction Industry The HBA is very concerned that increases in impact fees will stifle any market recovery Kern County may have. Raising fees will have a profound consequence on all entry level housing. Kern County is one of the last counties in California where homeownership opportunity is available (though it's quickly dissipating). We urge you to consider the impacts of our concerns in the process of fee updates. Strategies like flexibility in payment of fees at occupancy and financing mechanisms like public/private partnerships also need consideration. Please take a moment to review the following examples local governments are demonstrating through cooperative efforts with industry: Manteca Allows Payment Deferment Oakland Tribune, February 25, 2008 by Paul Burgarino http://findarticles.com/p/articles/mi gn4176/is 20080225/ai n24349293 On February 19, 2008, the Manteca City Council agreed to extend the life of a project called Villa Ticino West by deferring sewer allocations through 2010 and let the developer defer payment of 80 percent of the developer agreement fees. Supervisors Lower Traffic Impact Fees North County Times, January 31, 2008 by Gig Conaughton http://www.iictimes.com/articles/2008/01/31/news/top stories/1 03 491 30 0$ txt On February 13, 2008, the San Diego County Board of Supervisors voted to slash traffic impact fees by up to 40 percent for commercial development. Fees to build homes could decrease by up to 28 percent, or increase by up to 3.5 percent in some parts of the county. Housing Slow, So Brakes Put On City Fees The Desert Sun, December 16, 2007 by K. Kaufmann http://search.nivdesert.com/sp?skin=100&aff=1117&keywords-1lousin�,1%20Slow %20S o%20Brakes%20Put%200n%20City%20Fees With housing sales in the Coachella Valley down more than 40 percent, Palm Desert has put a six-month hold on an increase in fees the city charges developers. Builders Get Break On Traffic Impact Fees http://www.�:,ilroydispatch.com/news/230449-builders get break on traffic impact 1'ees On November 19, 2007 the Gilroy City Council Voted unanimously to only raise the traffic impact fee by 2.8 percent, instead of raising the traffic impact fee by 13 and then 7 percent, as it did during the past two years. New Home Fees Put on Hold; It Would Help Riverside County Pay for Freeway Projects The Press-Enterprise, December 12, 2007 by Phil Pitchford http://w-vvw.pe.com/localnews/rivcountv/stories/PE News 1 oval B rctcl3 34889c1 html On December 12, 2007 the Riverside County Board of Supervisors postponed traffic fee increases to further review the manner based on the critical housing market. The commission sent the idea to an ad hoc committee for further review, but not before several commissioners said they would have concerns about approving such a fee even if the housing market were stronger. C:Documents and SettingslTonyalMy DocumentslCOK FeeslOptions-other municipalities.doc 2 Cities in Sacramento Area May Delay Fees for Developers to Aid Economy Sacramento Bee, April 8, 2008 by By Loretta Kalb http://www.s,icbee.com/1.01/story/844827.htiliI Several Sacramento-area cities stung by the real estate downturn are considering deferring developer fees as a way to stimulate the local economy. Deferrals on fees charged to builders to help pay for major roads and sewers and address other impacts of development aren't likely to reduce the cost of commercial construction. And they likely won't affect home prices. But they are being tailored to encourage more residential and business construction. Area civic leaders have a common desire, to reinvigorate local economies and create jobs. "It's not just to see if we can get sticks and bricks up," Folsom Vice Mayor Steve Miklos said Monday. "It's to get people back to work." C:(Documents and Settings)TonyaWy DocumentslCOK FeesDptions-other municipalities.doc HBR of Kern County August 15, 2008 Mr. Alan Tandy City Manager City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Mr. Tandy: The HBA appreciates the scheduling of the August 14th Metropolitan TIF Stakeholder meeting. Unfortunately, the timing of this meeting in regards to the August l 9th City of Bakersfield's Planning & Development Committee does not leave representatives ample time to review information that was handed out and is still forthcoming. The following are just a few of the concerns we would like addressed: • This trip generation formula has not taken into account truck traffic (ex: diesel trucks passing through the county from one portion of the state to another). This could potentially reduce the amount of congestion and growth rates indicated by the trip model. This will require more time for the City and County to review and calculate this new assumption. • There are items on the facilities list that conflict with the need indicated in the model. One example is that the facilities list reflects six lanes being needed while the model show a need for only four lanes to reduce congestion. These additional two lanes will incur a dramatic increase in cost. Another example is Mr. Nienke stated there are items on the facilities list that simply need to be constructed but there is no alternative funding solutions to get these projects accomplished other than putting such costs on new development. • The City Council and Board of Supervisors will have the authority to extend the first phase-in fee amount another twelve months if the market does not make a positive trend toward recovery, as they think it will. No threshold or minimum number of units constructed has been decided to gauge the decision for the higher fee to be set in place. • Since the County stated they allow for fee deferral until Certificate of Occupancy, we highly recommend that the City consider this as an alternative to payment at time of permit. This will create a unilateral payment timeline for all builder and PO Box 1848,Bakersfield,CA 93301 Phone(661)633-1316 Fax(661)633-1317 developer project calculations. • City and County both understand traffic has dramatically declined with the price of gas, but Mr. Nienke stated the data used is historical and would take much longer to reconfigure using real time data. When would the next traffic study be complete to indicate how much traffic has increased or decreased once this new fee is set in place? • While City and County are unilaterally using the Kern Council of Governments (KCOG) model, the concern is that Mr. Nienke stated that this proposal is their "best guess"at what the correct fee calculation should be. This is too important of an issue for all involved to be based on a "best guess." • The Nexus Study that is being prepared by Marian Shaw will be completed by the City's Planning & Development Committee meeting, Tuesday, August 19th. This does not allow sufficient time for review and comment to the City and County from representatives. Based on these concerns, we respectfully request that this issue be continued from the August 19th Plarming & Development Committee to provide ample time to thoroughly review the latest infonnation. Thank you for your consideration, and if you have any questions or comments, please feel free to contact me at the HBA office. erely, Darryl Tucker President Cc: Councibnember Zack Scrivner Councilmember Harold Hanson Councilmember Ken Weir Mr. Raul Royas, City of Bakersfield Ms. Marian Shaw, City of Bakersfield Mr. Barry Nienke, County of Kern PO Box 1848,Bakersfield,CA 93301 Phone(661)633-1316 Fax(661)633-1317 PLANNING AND DEVELOPMENT COMMITTEE MEETING Tuesday,August 19,2008 ATTENDANCE LIST Name Organization Contact: Phone/E-mail C�fc• C:�LIJ s w ZI�cC_ .S Gig 0 HCH X 11 - ✓rJ�n w 3 ck r z GrAv j3ak0 CLo.-,�'er I - r Lc- C—C,V1 vr�lun K COUN1-f Y All 6) 3S_qZ_ �C.C&rn '-A/ diAl G\Y- AT-) f 5� con Conn Planning and Development Meeting Agenda For August 19, 2008 — Media Notification file rax w 1006 WRSMWA_IdFxf �a � g dale a ! a• L}- Newyork(a. j "181111111 m c D—i To/Fmm/Fie _.�py Fax2317 /Em... Pages/Bytet Statue Aceorrt Matter Un• 8/75/20083:49 PM Government AOa'xs D'u. 635-2377 1 pgs Q OK -C 1 Commw * 8/15/2008 3:49 PM David Burger N main �. got�Bakersfield 395-7579 1 pgs Q OK MN 8/15/2008 3:49 PM Bruce Freeman 6646030 1 pgs Q OK t 8/15/20083:49 PM Ron Brummett 3248215 7 pgs Q OK MN Plary9 s * 8/15/20083:49 PM Steve DeBranch 3234006 MN --..�Trash t 6/15/20083:49 PM R pgs Q OK MN * oger McIntosh 8340972 1 pgs Q OK 8/15/2008 3:49 PM A11" McIntosh Kim/Castle&Cooke 6646199 MN * 8/1520083:49 PM Supervisor Barbara Patrick 8683677 1 pgs Q OK MN 1 Pgs Q OK MN 8/15/2008 3:49 PM Tom Carose9a 631 2693 1 pgs Q OK * 8/15/20083:49 PM Mark Smith 8625444 1 pgs Q OK MN * 8/1520083:49 PM Scott Blunck MN * 664.6042 1 pg. Q OK MN 8/75/20083:49 PM Cathy Butler 3257319 1 pg. Q OK *" 8115/2008 3:49 PM John Fallgather 3242323 1 pg. Q OK MN * 8/1520083:49 PM Carl Moreland MN * 8/15/2008 3:49 PM Fred Porter 1 pg. Q Phone line Problem MN *. 3277065 1 pgs Q OK MN 8/15/2008 3:49 PM News Editor-Bakersfield 395-7519 1 pg. Q OK * 8/15/20083:49 PM Charles G.Waide 3257814 1 p MN * 8/15/20083:49 PM Editor-Bakersfield News 3249472 1pgs 0OK MN * 8/15/20083:49 PM BIA 6331317 MN * 8/15/2008 3:49 PM News Director-Kl= 283.2963 1 pg. Q OK MN * 8/15/20083:49 PM Gear Channel Radio 2832963 Q OK MN 6/15/20083:49 PM News Director-Channel 3 3342685 1Pgs QOK MN * 8/15/20083:49 PM Opinion-Bakersfield Cal 3957380 1 Pgs Q OK MN * 8/15/20083:49 PM News Director-Univision 3342687 1 pgs Q OK MN * B/15/2006 3:49 PM News Director-KBAK TV29 861 9810 1 pgs Q OK MN *� 8/15/20083:49 PM News Director-KERN/K... 326-0388 legs QOK MN * 8/15/2006 3:49 PM Editor-El P 1 Pgs Q OK MN * opular 631 9451 1 pgs Q OK MN 8!152008 3:49 PM Beale Library 631 9439 1 pgs Q OK * 8/15/20083:49 PM Editor-El Mexicalo 3236951 1 pgs Q OK MN * 8/15/2008 3:49 PM Naws Director-KWAC Sp 7 MN * 8/15/20083:49 PM Naws Director-KERO TV...3235538 Pgs QOK M * 8/15/20083:49 PM News Director-KGET TV... 2831843 /Pits QOK MN *' 8/15/2008 3:49 PM The Minority Consauotion 3239287 1 Pits Q OK MN 1 pgs Q OK MN 3 8/152008 3:49 PM News Director KU72/K...328-7537 1 pgs Q OK ,f Ail fi/7W3.49 PM I(Atu Fddu-F.-nn,N Knn RRR:41M 1nny MN J db nK M 39 faxes Nsted -