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Home My WebLink About10/02/2008 B A K E R S F I E L D axol� 2-1" „ Zack Scrivner, Chair Rhonda Smiley, AssistimIlt 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, October 2, 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 1:10:30 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 Rhonda Smiley, Asst. to the City Manager Steve Teglia, Administrative Analyst Raul Rojas, Public Works Director Marian Shaw, Civil Engineer IV Ginny Gennaro, City Attorney Nelson Smith, Finance Director Bob Sherfy, Deputy City Attorney Ryan Starburck, Engineer III Garth Milam, Fire Captain Brad Underwood, Asst. Public Works Director Georgina Lorenzi, Asst. to the Public Works Director Others present: Jim Scott, KGET Cathy Williams, McMillin Land Development Tonya Short, HBA of Kern County Corrine Coats, Bakersfield Assoc. of Realtors Donna Carpenter, Sikand Engineering Mike Turnipseed, KERNTAX James Geluso, Bakersfield Californian David Cates, Lennox Homes Nick Ortiz, Greater Bakersfield Chamber of Commerce 2. ADOPT THE SEPTEMBER 4, 2008 AGENDA SUMMARY Adopted as submitted. Planning and Development Committee October 2, 2008 Page 2 3. PUBLIC STATEMENTS None 4. NEW BUSINESS The following four items were referred to the Planning and Development Committee at the City Council meeting of September 17, 2008 A. Citizen's Advisory Task Force — Scrivner During public statements at the September 17, 2008 City Council meeting, members of KERNTAX, the Greater Bakersfield Chamber of Commerce and The Home Builders Association (HBA) requested a citizen's advisory group be established to periodically review the Traffic Impact Fee Program. Nick Ortiz, of the Greater Bakersfield Chamber of Commerce, provided copies of an outline of a proposal which is endorsed by the Chamber and KERNTAX. The proposal outlines a structure for a taskforce that would consist of three municipal representatives, an appointee of the City Council, an appointee of the Kern County Board of Supervisors, an appointee of the Mayor, and representatives from various community groups. City Manager Alan Tandy stated that the Planning and Development Committee already serves this role and suggested that representatives of these groups could attend meetings with the Committee twice annually, where the desired information will be presented. The meetings will consist of updates on the status of Traffic Impact Fee revenues and project expenses, updates on the TRIP program and the related financial plan. Mike Turnipseed of KERNTAX added that the proposed plan is modeled after the structure of the Bond Oversight Committee contained in Proposition 39 (2002). Turnipseed further stated that the plan will be presented to the Board of Supervisors for their review. Committee chair Zack Scrivner requested that this item be tabled until the next Committee meeting so that staff, HBA, and the Board of Realtors will have a chance to review the proposal. Committee member Ken Weir suggested that staff meet with some of the representatives before the next meeting to lay out a plan that works for staff and the groups involved. B. Contingency Plans for Funds Related to TRIP —Tandy At the January 30, 2008 Council meeting, Council made a commitment to generate the estimated $400 million match for TRIP by issuing a bond offering at the appropriate time. These bonds will be backed by several funding streams including, a portion of gas tax proceeds, TIF fees and increases in PG&E franchise fees. In addition, the TRIP team will continue to pursue all possible grant and funding opportunities as they are available. As a review, City Manager Alan Tandy provided a video presentation of the TRIP Finance Plan presented by Doug Houston of George K. Baum & Company, which discusses the methodology and process that will be used over the next several years to develop a bond offering. Mr. Tandy added that there are approximately nine projects in the environmental or design phase and as each one develops, more clarity is provided with respect to the timing of the project, the cost, and the time in which cash will be needed. Project costs that exceed reasonable expectations have to be right- sized, as a cost control measure. This on-going process of evolving these projects and Planning and Development Committee October 2, 2008 Page 3 developing more precise construction schedules, along with the financing plan, is essential to the overall TRIP program. Nick Ortiz of the Greater Bakersfield Chamber of Commerce asked if the City had a contingency plan and will there be a general fund contribution to cover debt service of any bonds that are issued. Mr. Tandy responded that a contingency plan detailing the impacts to the General Fund was included for illustration purposes. This was developed on the assumption of a $10 million annual obligation from the City's General Fund. C. Sources of Revenue to Offset the Funding Need —Tandy A question was asked during the September 17, 2008 Council meeting that if the City found new revenue sources, will they have a positive impact somewhere in the future on the transportation impact fee program. Mr. Tandy responded that it is possible, but explained that there are numerous changes to project costs as time goes by. The City's estimated contribution of $400 million will change every year based on a number of differing variables and it is not constant. If costs escalate and new revenue is added, there won't be a credit back. Many projects are undergoing alternative review and each alternative carries a different cost. The Construction cost index can go up or down from year to year as well until all costs are not known until all environmental studies are completed. Committee chair Scrivner asked for the timeframe for re-evaluating the financial plan. Mr. Tandy responded that the information has evolved from last year, including greater clarity on project costs, revenue alterations and timing of projects. This will all be built into the current update of the financial plan. Committee chair Scrivner requested that each time a financial plan is resubmitted and presented to the committee, that the respective interest groups be invited to review. D. Audit of TIF Process - Tandy Staff was asked to provide a comparison between Bakersfield and other communities regarding the process and structure of traffic impact fees. Civil Engineer Marian Shaw provided comparisons from the City of Rancho Cordova and San Benito County. Staff compared development points, programs, traffic models and base year versus horizon year information. Staff found that the methods used in these two jurisdictions mirror what the City currently uses. San Benito County's development fees have withstood two legal challenges to date and according to the contact person for San Benito County, Bakersfield's system for calculating fees is even more detailed than San Benito County. Committee member Ken Weir stated that he would like staff to look into how the City can have an independent review of its process and come back to the next meeting with some ideas. Committee member Weir also requested that staff follow up on what they have done thus far with other jurisdictions and if it they utilize independent consultants to audit their overall process as well. 5. COMMITTEE COMMENTS None 6. ADJOURNMENT Planning and Development Committee October 2, 2008 Page 4 The meeting adjourned at 1:53:32 PM. cc: Honorable Mayor and City Council members