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HomeMy WebLinkAbout10/02/2008 /01 B A K E R S F I E L D Staff: Rhonda Smiley Zack Scrivner, Chair Rick Kirkwood Harold Hanson Ken Weir REGULAR MEETING NOTICE PLANNING AND DEVELOPMENT COMMITTEE of the City Council - City of Bakersfield Thursday, October 2, 2008 1:00 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 SEPTEMBER 4, 2008 AGENDA SUMMARY 3.1 PUBLIC STATEMENTS 4. NEW BUSINESS A. Citizen's Advisory Task Force— Scrivner B. Contingency Plans for Funds Related to TRIP—Tandy C. Sources of Revenue to Offset the Funding Need—Tandy D. Audit of TIF Process - Tandy 5. COMMITTEE COMMENTS 6. ADJOURNMENT SACouncil Committees\2008\08 Planning and DevelopmentlOctober\08 October 2 agenda.doc B A K E R S F I E L D Zack Scrivner, Chair Rhon Smiley, Assikdht to the City Manager/P.I.O. Harold Hanson For: Alan Tandy, City Manager Ken Weir AGENDA SUMMARY REPORT Special Meeting of the PLANNING AND DEVELOPMENT COMMITTEE Thursday, September 4, 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 1:05:02 PM. 1. ROLL CALL Present: Councilmember Zack Scrivner, Chair Councilmembers Harold Hanson and Ken Weir Staff present: Alan Tandy, City Manager Rick Kirkwood, Management Assistant John W. Stinson, Asst. City Manager Raul Rojas, Public Works Director Bob Sherfy, Deputy City Attorney Bruce Deeter, Engineer III Ryan Starburck, Engineer III Brad Underwood, Asst. Public Works Director Others present: Barry Nienke, Kern County Roads Bob Scales, Parsons Cathy Williams, McMillin Land Development Jim Scott, KGET Dave Dmohowski, Premier Planning Group Corrine Coats, Bakersfield Assoc. of Realtors Donna Carpenter, Sikand Engineering Tonya Short, HBA of Kern County Scott Blunck, Castle & Cooke Cal Rossi, McMillian Land Development David Cates, Lennox Homes Warren Maxwell, Kern County Roads Roger McIntosh, McIntosh & Associates Chris Austin, DPFG James Geluso, Bakersfield Californian Nick Ortiz, Greater Bakersfield Chamber of Commerce 2. ADOPT THE AUGUST 19, 2008 AGENDA SUMMARY Adopted as submitted. Planning and Development Committee September 4, 2008 Page 3 In response to Mr. McIntosh's concerns, City Manager Alan Tandy, Public Works Director Raul Rojas, Bob Scales of Parsons and Barry Nienke of Kern County Roads, provided the following responses: Question 1: Staff has identified the errors and corrections were made accordingly. A revised copy will be available to the development community upon request. Question 2: A list of construction project costs versus additional costs were provided to Mr. McIntosh Questions 3 and 9: The variation involves the Thomas money, the logical termini, the statutory match for the Thomas money and gradations of difference. The fee list provided by staff shows the total project costs and what portions are funded. What is being omitted from consideration by the development community is the $630 million in non-development fee related revenue that is plugged into the model as a result of the Thomas Road money. Without the match money gifted by Congressman Thomas, segments would be built into the model without being fully funded. It is important to note that the Thomas money cannot be obtained without building the logical termini. In addition to the $630 million from Thomas, $400 million is logical termini which includes the legal match. The additional cost, which is above the match requirement, is needed to complete the projects that cumulatively cost over a billion dollars. The model, which plugs in future traffic, must have a grid system which carries traffic to a Level Service C. The approach suggested by the development community to have a choice on how funds are allocated or removing projects from the list, would make the model dysfunctional and cause the grid system to fail. Question 4: The model reflects the 2.7% historical growth rate of the City of Bakersfield which accumulates all jobs and all growth. Ideally, new development pays for its impacts. If there is no new development, then there is no need for new government workers. The workers follow the increase in population which is caused by new development. If the new workers purchase a new home, they are paying their fair share of the cost. Question 5: The grade separation projects were approved by the CTC on August 28, 2008. The fee schedule went into effect and the schedule of projects was prepared in advance of that meeting. The State Grant provides for 50%funding for the construction cost of the two bridges excluding right of way, soft cost engineering and engineering during construction. The County must generate the match and the soft cost and seek other sources of funding to prevent the loss of their base grant. Most projects are a two-lane addition to either a two-lane facility or a four-lane facility. If a development causes one lane to be built on a facility, and there are no funds to build that portion, the development would have to build the whole facility in order to mitigate traffic. In addition, single lanes cannot be built as a bridge. Planning and Development Committee September 4, 2008 Page 5 5. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting adjourned at 2:28:30 PM. cc: Honorable Mayor and City Council members Planning and Development Committee September 4, 2008 Page 4 We must build a whole bridge as a project. When new development requires a lane or two to be built, the whole bridge must be built. Challenges based on CEQA are at an unprecedented level in both frequency and number of interveners. Staff has worked over a year to update the traffic model to bring forward an update and a correction in the fee list for City Council and County Board consideration. If the development community intervenes to prevent the fee schedule from going forward, CEQA challenges will prevail. Question 6: Both projects are not duplicated and shall remain on the list. Question 7: This railroad crossing has very long traffic interruptions at peak commute hours. The City receives many complaints about it and it has appeared as a photo in the local paper several times. Question 8: Staff concurs that the need is not immediate. However, as development occurs the right-of-way needs to be dedicated to prevent development on those portions. The fee schedule allocates funds to purchase right-of-ways for future use. Question 10: With respect to construction cost estimates, the City is using current pricing provided by Ruettgers & Schuler Civil Engineers, which is incorporative of recent trends in the industry. Committee chair Zack Scrivner requested that staff provide a breakdown of each project, earmarks, legal match, and the additional cost for logical termini. The TRIP Financial Plan will also be made available to him, with the understanding that it is currently being modified. Nick Ortiz of the Greater Bakersfield Chamber of Commerce thanked staff for their support at GRC. Mr. Ortiz asked to what extent have freeway facilities been included in previous phases of TIF. Public Works Director Raul Rojas replied that little to no inclusion for facilities were made in previous years. There was always the assumption that funding would be provided by the State or federal government. Committee Chair Scrivner added that the City has run out of excess capacity because freeways were never built. To come up with a match for the Thomas money, the City is looking into a surcharge on PG&E bills or possibly bonding against half of the gas tax money. The developer fees are another part of the matching equation. Committee member Ken Weir made an inquiry at the last meeting regarding the core area doing its fair share. He asked if the core was raised or lowered, what effect would it have on the non-core area. Mr. Rojas responded that if the core area is raised, it would lower the non-core area. City Manager Alan Tandy added that Senate Bill 375 may be a long term means of forcing interior development in cities. it will give the State more control over local planning issues, with specific intent of forcing interior development. Committee member Harold Hanson made a motion to forward staff's recommendation to the full Council for adoption. The motion was second by the Committee members. Planning and Development Committee September 4, 2008 3. PUBLIC STATEMENTS Page 2 None 4. DEFERRED BUSINESS A. Update on Traffic Impact Fees —Tandy/ Rojas/Shaw After three additional meetings with stakeholders, Chamber of Commerce and Roger McIntosh of McIntosh and Associates, staff has made minor changes to the list, fee schedule and nexus report. Staff recommends moving the matter forward to the City Council with the development of the Phase IV Traffic Impact Fee (TIF). Roger McIntosh raised several questions and concerns regarding the TIF Program. Those questions and concerns are outlined below. 1. There are problems with the nexus report. Several errors were found and no corrected version was provided. 2. What is the full scope of the construction costs versus additional costs that the fee calculation is based on? 3. What is the philosophical approach to new development funding the matching funds and logical termini? 4. How much growth in traffic is attributed to government jobs and how will it be paid? 5. Two of the grade separation projects are fully funded by the State, therefore the $50 million attributed to those projects should be taken off. According to the facilities list, the remainder of the grade separation projects totaling $200 million, require 100% development funding of six-lane facilities, although the model only requires two-lane or four-lane facilities. This does not meet the nexus requirements for new development. 6. There is one grade separation project that is duplicated. The project is shown as Kratzmeyer and Olive and also as Olive and UPRR. 7 The Rosedale and San Joaquin Valley Railroad Crossing Grade Separation Project is on the project list. According to the Department of Transportation, there are two trains a day at this location. Therefore, this location does not warrant a grade separation. Requesting that other railroad related grade separation projects be revisited by staff. 8. The South Beltway is not in the model, yet acquisition in the amount of $20 million. The there odel does not for show that the beltway is needed in 2035 and therefore, should be taken out 9. TRIP match and logical termini should not be funded by new development. 10. Caltrans has identified a reduction in construction costs since 2006. Are the construction cost estimates used on the list accurate? B A K E R S F I E L D OFFICE OF THE CITY MANAGER MEMORANDUM September 23, 2008 TO: Planning and Development Committee FROM: Alan Tandy, City Manager SUBJECT: Council Referrals Four items were referred to the Planning and Development Committee at the City Council meeting of September 17, 2008, as follows: g 1. Create a Citizens Adviso Panel re ar ling the Traffic lm act Fee TIF ro r relationship to TRIP. am and its Staff recommends that this could be done most effectively by appointing the interest group representatives to attend meetings with the Planning and Development Committee twice annually. At those meetings, the agenda could consist of: a. Updates in TIF revenues and projected expenses; b. Updates on the TRIP program and the related financial plan; and c. Other subjects at the direction of the Planning and Development Committee. 2. DeyelOg contingency glans for funds related to TRIP. A very comprehensive financial plan for TRIP must be prepared each year and submitted to the Federal Highway Administration (FHWA) for approval. The Financial Plan will fluctuate for many reasons, such as refinements in project costs as they develop through environmental and design work, construction cost variances, and changes in federal withholding amounts, among other factors. Therefore, each year the amount of the local match will change. The City Council has approved the following: a. Dedication of TIF fees to this purpose; b. Dedication of Gas Tax to this purpose when a major bond issue occurs; c. Dedication of increased PG&E franchise fees to this purpose (1% surcharge subject to CPUC approval); and d. Pursue all possible grant and funding opportunities. Planning and Development Committee September 23,2008 Page 2 If normal growth patterns resume, these sources will be sufficient for the program as presently identified. Should they prove to be inadequate, the City would have to work with bond underwriters and rating agencies to identfy other acceptable revenues to pledge. A letter prepared for the Chamber of Commerce on the impacts of such a pledge is attached. Going through such an exercise four to five years prior to the bond issue is meaningless as the State tampers with property tax, sales tax, vehicle license fees, and redevelopment funds, among others, and is likely to do so again before a bond issue is timely. Whatever might be pledged, however, the General Fund impacts would be about the same. 3. When new sources of revenue are identified can the Traffic Impact Fee be ad'usted ingl accordy? The total TIF also varies with construction'costs and changes to the Facilities List, among other factors. A new revenue source causing a potential reduction in the TIF is not the only factor impacting the numbers. All of it must be accounted for. Please also bear in mind that there are many factors that adjust the annual Financial Plan, including refinements in project cost estimates as they evolve, changes in the scope of projects, changes in construction pricing and changes in interest rates, among others. The required match for TRIP will vary from year to year. 4. Audit of TIF Funds. TIF funds are audited annually as a part of the overall audit of all City funds and accounts. As part of a Freedom of Information Act request, we also provided a list of all TIF expenditures though 2006 to show they were spent on eligible projects. That list could be updated. Proposal: Citizens'Advisory Taskforce on Metro-Bakersfield Transportation Endorsed by. The Greater Bakersfield Chamber of Commerce and the Kern County Taxpayers Association Structure of the Taskforce Municipal Representatives • One representative appointed by the Bakersfield City Council • One representative appointed by the Kern County Board of Supervisors • One representative appointed by the Mayor of Bakersfield Community Representatives • A representative from the Kern County Taxpayers Association • A representative from the Greater Bakersfield Chamber of Commerce • A representative from the Sierra Club • A representative from the Kern-Mono-Inyo Labor Council • A representative from the Kern County Homebuilders Association • A representative from AAA-Automobile Club of Southern California • A representative from the Bakersfield Association of Realtors • A representative from the Kern County Hispanic Chamber of Commerce Selection Process The City Council and the Kern County Board of Supervisors would have to determine their own selection process, but we would urge that these appointments as well as the Mayor's be a private citizen appointee and not a public official. In fact,we'd stipulate that no representative from the Community Groups would be an elected or appointed official in the County of Kern. Duties of the Citizens'Advisory Taskforce The purpose of the citizens'oversight taskforce would be to inform the public concerning the expenditure of Traffic Impact Fee revenues and monitor the performance of the program in building out the facilities included in the transportation model used to develop the fee. The citizens'oversight taskforce would actively review and report on the proper expenditure of taxpayers' money for road construction. The citizens'oversight taskforce would convene to provide oversight for the following areas: Proposal: Citizens' Advisory Taskforce on Metro-Bakersfield Transportation Endorsed by: The Greater Bakersfield Chamber of Commerce and the Kern County Taxpayers Association Structure of the Taskforce Municipal Representatives • One representative appointed by the Bakersfield City Council • One representative appointed by the Kern County Board of Supervisors • One representative appointed by the Mayor of Bakersfield Community Representatives • A representative from the Kern County Taxpayers Association • A representative from the Greater Bakersfield Chamber of Commerce • A representative from the Sierra Club • A representative from the Kern-Mono-Inyo Labor Council • A representative from the Kern County Homebuilders Association • A representative from AAA-Automobile Club of Southern California • A representative from the Bakersfield Association of Realtors • A representative from the Kern County Hispanic Chamber of Commerce Selection Process The City Council and the Kern County Board of Supervisors would have to determine their own selection process, but we would urge that these appointments as well as the Mayor's be a private citizen appointee and not a public official. In fact,we'd stipulate that no representative from the Community Groups would be an elected or appointed official in the County of Kern. Duties of the Citizens' Adyls:)ry Taskforce The purpose of the citizens' oversight taskforce would be to inform the public concerning the expenditure of Traffic Impact Fee revenues and monitor the performance of the program in building out the facilities included in the transportation model used to develop the fee. The citizens'oversight taskforce would actively review and report on the proper expenditure of taxpayers' money for road construction. The citizens'oversight taskforce would convene to provide oversight for the following areas: • Ensuring that TIF revenues and any bond revenues,where debt is serviced by TIF revenues, are expended only for the purposes of road construction • Ensuring that the TRIP goals are met,and that TIF dollars are properly integrated into the TRIP program • Ensuring that no funds are used for on-going salaries or inappropriate operating or administrative expenses In furtherance of its main purpose,we recommend that the citizens' oversight taskforce be able to engage in any of the following activities: • Ordering the completion of, receiving, and reviewing copies of an annual, independent performance audit • Ordering the completion of, receiving, and reviewing copies of an annual, independent financial audit • Inspecting road facilities and road construction to ensure that funds are expended properly • Reviewing efforts by the City of Bakersfield and County of Kern to maximize revenues by implementing cost-saving measures, including, but not limited to, all of the following: o Mechanisms designed to reduce the costs of professional fees. o Mechanisms designed to reduce the costs of site preparation. o Mechanisms designed to reduce costs by incorporating efficiencies in design. We recommend that the taskforce should be given the appropriate amount of support to complete its goals. Therefore,we believe the City and the County should provide—without use of TIF revenues or bond funds, where debt is serviced by TIF revenues—the taskforce with any necessary technical assistance and would also provide administrative assistance in furtherance of its purpose and sufficient resources to publicize the conclusions of the taskforce. All committee proceedings would be open to the public,governed by the Brown Act, and noticed to the public in the same manner as the proceedings of the City and the County. The citizens' oversight taskforce would issue regular reports on the results of its activities. A report should be required to be issued at least annually. Minutes of the proceedings of the citizens' oversight taskforce and all documents received and reports issued would be a matter of public record and be made available on an Internet website maintained by the City and the County. • Ensuring that TIF revenues and any bond revenues,where debt is serviced by TIF revenues,are expended only for the purposes of road construction • Ensuring that the TRIP goals are met, and that TIF dollars are properly integrated into the TRIP program • Ensuring that no funds are used for on-going salaries or inappropriate operating or administrative expenses In furtherance of its main purpose,we recommend that the citizens'oversight taskforce be able to engage in any of the following activities: • Ordering the completion of, receiving, and reviewing copies of an annual, independent performance audit • Ordering the completion of, receiving,and reviewing copies of an annual, independent financial audit • Inspecting road facilities and road construction to ensure that funds are expended properly • Reviewing efforts by the City of Bakersfield and County of Kern to maximize revenues by implementing cost-saving measures, including, but not limited to, all of the following: • Mechanisms designed to reduce the costs of professional fees. • Mechanisms designed to reduce the costs of site preparation. • Mechanisms designed to reduce costs by incorporating efficiencies in design. We recommend that the taskforce should be given the appropriate amount of support to complete its goals. Therefore, we believe the City and the County should provide—without use of TIF revenues or bond funds, where debt is serviced by TIF revenues—the taskforce with any necessary technical assistance and would also provide administrative assistance in furtherance of its purpose and sufficient resources to publicize the conclusions of the taskforce. All committee proceedings would be open to the public,governed by the Brown Act, and noticed to the public in the same manner as the proceedings of the City and the County. The citizens'oversight taskforce would issue regular reports on the results of its activities. A report should be required to be issued at least annually. Minutes of the proceedings of the citizens'oversight taskforce and all documents received and reports issued would be a matter of public record and be made available on an Internet website maintained by the City and the County. B e000 A K E R S F I E L Ey Alan Tandy • City Manager September 16, 2008 Deborah Moreno, President 1 CEO Greater Bakersfield Chamber of Commerce 1725 Eye Street Bakersfield, CA 93301 Subject: GRC Motion Regarding Traffic Impact Fees Dear Ms. Moreno: Our understanding of the GRC motion on this matter is that they want 50% of the City contribution for the TRIP Program to come from the City's General Fund. There may be a belief by some that such a plan is comparable to what Kern County is proposing. Please be aware of the following: 1. The City Council of Bakersfield has pledged to raise $400 million for the TRIP Program. Kern county has pledged $130 million 2. Kern County and its General Fund is far larger than Bakersfield and its General Fund. The comparison of imposing half of that burden onto the City General Fund would have devastating results on the services we deliver. Please see attachments. 3. A part of the City Council decision to pledge $400 million was that $80 million of it would be gas tax funds —those are revenues of the City taxpayer and are not in any way development related. 4. On the same agenda as the impact fees, September 17", the City Council is considering a gas and electric franchise renewal which can generate up to $60 million (if fully bonded) for our contribution to TRIP. Those funds are also not development related. This is an example of generating revenue to meet the $400 million obligation from an opportunity. In this case, the opportunity is an expired franchise. The City will continue to look for other opportunities like this in the future. City of Bakersfield • City Managers Office • 1501 Truxtun Avenue Bakersfield • California - 93301 (661)326-3751 • Fax(661)324-1850 Deborah Moreno September 16, 2008 Page 2 It should be noted that the current TIF program takes into account concerns expressed by the Development Community throughout the stakeholder meeting process. The current fee provides for an "economic recovery" period in which the fees are reduced during the initial year of the TIF program. The community needs a partnership to put the Thomas Road Projects on the ground along with all the matching requirements and other highway needs we face. The proposed development fee schedule is a fair and reasonable way to assist in the generation of the needed funds, along with the above efforts and others that must be developed in the future through community partnerships. 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"1:q � ::r ma 0 '". 11 C � Q Q Q CA) a 0 o - cn CD CC -a a C L M O 2)' C tQ s. CD W 2) o cD N cQ D =F CA �- = cy cr CD cl C M - -1 C. CL N O CL PLANNING AND DEVELOPMENT COMMITTEE MEETING Thursday,October 2,2008 ATTENDANCE LIST Name Organization Contact: Phone/E-mail ° 3 s CAI O Of K001 � 7 z 1 7 ick Ork� z C .,bv� 6� Coo, all TE L r� 6�s/ Z -7326 Q T W it o S So-r, C M 0 2 - 2?) 3 1' I CAD 37 S (L Z Planning and Development Committee Meeting Agenda for Thursday, October Octo 2, 2008 Media Notification E+• Fix L.r:t FIuok flab t� J QA oil 0- Newyork[B. Z 4 6 . fl ® c Date/Time T./From*le (SAN * 9!26/20688:27 AM Bruce Freeman Fax Nwber/Em.. Pages sft Stairs Accourx _ (.,]Comnxa t �'60� 1 P9s 0 DK Matte 9!26/20088:27 AM Ron Brummett 3248215 J Main t 9/26/20088:27 AM Steve DeBranch 1 Pgs 0 OK []Plarmin4 9/26120088:27 AMR 3234006 1 Pgs O OK oger McIntosh 834.0972 1 p9s OK 9/26/2008 8:27 AM Atin:Kirn/Castle 8 Cooke 664.6199 Trash t 9/26/20088:27 AM S 1 PP 0 OK Torn Caror Barbara Patrick 868.3677 i Pgs 0 OK 9/26/20086:27 AM Tom Carosella 631.2693 0 OK 9/26/20088:27 AM Mark Smith 1 P9s * 662.5444 7 P9s 0 OK 9/2612008827 AM Scott Blunck 6646042 1 pgs O OK * 9/26/20088:27 AM Cathy Butler 3257319 * 9/26/20088:27 AM John Fallgather 324.2323 1 p9s O OK '* 9/26/20088:27AM CarlMoteland 1 pgs 0 OK * 9/2612008 8:27AM Fred Porter 1 Pgs O Phone Line Problem * 9/26/2W88:27AM News Editor-Bakersfield 3957519 1Pgs 0OK * 1 Pgs 0 OK 9/26120088:27 AM Chad"G.Waide i" 9126/20088:27 AM Editor-Bakersfi 1 eld News 324.9472 Pgs 0OK * 9/26/20088:27 AM BIA 1 Pgs 0 OK * 633-1317 1 P9s 0 OK 9/26/20088:27 AM Government Affairs Dir. 635-2317 9/26/20088:27 AM Clear Channel Radio 1pgs 0OK *. 283.2963 1 pgs 0 OK 9/2612008827 AM News Director-Channel 3 3344685 *' 9/26/20086:27 AM Opinion-Bakersfield Cal 395-7380 1Pgs 0OK 9!26/20088:27 AM News Director-Univision 1p9s 0OK * 9/26/20088:27 AM News Director-KBAK TV29 8619810 1 P9s 0 OK * 9126/20088:27 AM News Director-KERN/K... 326.0388 Ipgs 0OK 9/26120088:27 AM Edita-El Popular 325-7351 1pgs 0 O * 9/26/20088:27 AM Beale Libfar 1 Pgs 0 OK * 9/26/20088:27 AM Editor-El Mescal. 323-6951 1 Pgs O OK *' 9/26!20088:27 AM News Director-KWAC Sp...327.0797 11 p9s vOK * 9/26/20088:27 AM News Director KERO TV...323-5538 P9s O OK 9/26.x20088:27 AM News Director-KGET TV... 283.1843 1P9s 0 O 3 9/26/20088:27 AM The Minority Construction 3239287 p9s OK * 9/26/2008 8:27 AM News Director-KUZZ/K...328-7537 1 p9s 4 0 OK * 9/26/2008 8:27 AM Kathy Eddy-County of Kern 868.3190 1 pgs 0 OK ' 0 1 pgs 0 OK �- 137 faxes 6ted F•! Fax List fools it QAtWLU DY; MI0 • • el ••Newyork[B. = 4 8 a 9 ® r Date/Tine ToJFmm/Fb LAO Fax Nrmbx/6gn... Pa9esIB>4es Status L]Commu, :*......................... 9126/20088:27,AM News Director-KLLY F.393.1915 Aocaunt Malley ...............................................................................9.......-.............-....... 9/2612DO88:27AM David Bur er-Bakersfield 395.7 519 .....'.. s................._........-........00K t P9 0 O............._............-..........._ J Main * ...._...................-............_..--........................................................: 9/26!2008 8:27 AM News D4.0.-KIM 283.2963 ( Planrunc t 9./26/20088:27 AM New,Drect--Chamber... 327.8757 i Pgs v OK Pla nax 1 Pgs 0 OK Trash