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HomeMy WebLinkAbout06/16/2009 z0 B A K E R S F I E L D Rhon �y, A to the City Manager Zack Scrivner, Chair y 9 Harold Hanson For: Alan Tandy, City Manager Ken Weir AGENDA SUMMARY REPORT PLANNING AND DEVELOPMENT COMMITTEE Tuesday, June 16, 2009 - 1 :00 p.m. City Hall North Conference Room A First Floor - City Hall North, 1 600 Truxtun Avenue, Bakersfield, CA The meeting was called to order at 1 :16:00 PM. 1. ROLL CALL Present: Councilmember Zack Scrivner, Chair Councilmember Ken Weir Councilmember Harold Hanson Staff present: Alan Tandy, City Manager John W. Stinson, Asst. City Manager Rhonda Smiley, Asst. to the City Manager Steve Teglia, Administrative Analyst Rick Kirkwood, Management Assistant Ginny Gennaro, City Attorney Robert Sherfy, Deputy City Attorney Joshua Rudnick, Deputy City Attorney Stan Grady, Development Services Director Raul Rojas, Public Works Director Brad Underwood, Asst. Public Works Director Marian Shaw, Civil Engineer IV Arnold Ramming, Civil Engineer IV Ryan Starbuck, Traffic Engineer Ed Murphy, Engineer III Georgina Lorenzi, Asst. to Public Works Dir. Pam McCarthy, City Clerk Rick Millwee, Construction Superintendent Nelson Smith, Finance Director Others present: Doug Hunter, McMillin Homes Gretchen Wenner, Bakersfield Californian Roger McIntosh, McIntosh & Associates David Cates, Lenox Homes Matt Towery, Towery Homes Ron Bummett, KernCog John Schuler, R&S CE Warren Maxwell, Kern County Roads Lee Jamieson, JACO Tom Falllgetter, Attorney, TCF Pat Henneberry, Castle & Cooke Dave Turner, David A. Turner Homes Patty Poire, Western Properties Bob Decker, HBA Planning and Development Committee June 16, 2009 Page 2 Linda Vernon, Bakersfield Association of Realtors J.R. Lewis, Karpe Real Estate Center Corrine Coates, Bakersfield Association of Realtors Bob Scales, Parsons Nick Ortiz, Bakersfield Chamber of Commerce Maris Madigan, Interested Party 2. ADOPT THE JUNE 4, 2009 AGENDA SUMMARY Adopted as submitted. 3. PUBLIC STATEMENTS None. 4. DEFERRED BUSINESS A. Discussion and action regarding Stockdale Highway Improvement Project - Rojas Assistant Public Works Director Brad Underwood gave a brief overview of the Stockdale Highway Improvement Project. The goal of the project is to narrow the median on a portion of Stockdale Highway between Stockdale Country Club to Ashe Road to create three lanes of eastbound and westbound traffic and reconstruct the street on that portion. Residents expressed to Council concerns about access to their driveways during the improvements. Staff visited the area and found that the residents concerns were valid. However, the problem is compounded by the block walls, dense landscaping and narrow driveways on the residential properties. Currently, residents have access to a wide bike lane which allows them to pull out into traffic safely. Staff recommends shortening the median, widen the bike lane and insert pavement markers and rumble strips to discourage the use of the bike lane by oncoming traffic. Attorney Tom Fallgetter thanked staff for their hard work and efforts for this project. Committee adjourned to closed session at 1 :29:11 PM. 5. CLOSED SESSION The Committee reconvened from closed session at 1 :50:36 PM A. Conference with Legal Counsel regarding potential litigation. Closed session pursuant to subdivision (b)(1)(3)(A) of Government Code section 54956.9. (One matter) - Gennaro There was no reportable action on the closed session item. 6. DEFERRED BUSINESS A. Discussion and action regarding Traffic Impact Fees - Tandy / Rojas / Gennaro Planning and Development Committee June 16, 2009 Page 3 The process of the Traffic Impact Fees started in the spring of 2007 under much criticism to the City and County over the transportation grid and how it was functioning in light of community growth. Due to the increasing numbers and types of challenges to environmental documents, there was a need for a transportation plan and related funding sources which could defend and withstand those challenges as they occur. An opportunity came along from the federal government in the form of the $630 million in Thomas Roads Improvement Project (TRIP) funds to help pay for major portions of the traffic network, which required significant matching funds and an annual financial plan to be developed, prepared and approved each year by the Federal Highway Administration. Since the spring of 2007, 23 public meetings have been held with stakeholders, commercial and residential development resulting in a great deal of public process and participation. In October 2008, the City Council adopted, subject to the County's adoption, a set of transportation fees. After many public and stakeholder meetings, the County adopted a revised schedule of traffic impact fees. That same schedule adopted by the County is before the Committee for consideration. The fees are generally lower than the schedule that was adopted in October 2008 by the City Council. However, those fees never did go into effect due to a provision in the ordinance that required other fees to first be adopted by the County. Those fees are higher than the current fees being charged. Subsequent to the Committee meeting held on June 4, 2009, staff has received three sets of questions, including one from a law firm requesting information and accounting records on how the City tracks, accounts and complies with state law relative to Transportation Impact Fees. City Manager Alan Tandy advised that for the past 25 consecutive years the City has received the Governmental Finance Officers Association award for excellence in financial reporting in which there has never been an audit finding or a problem in accounting related to the City's fees. Staff received 48 questions from the Home Builders Association (HBA) regarding Traffic Impact Fees. Mr. Tandy referred to the City's written responses and addressed several of the questions, as follows: 1 . Is the City relying solely upon traffic impact fees to secure TRIP money? The answer is no. The City Council, through actions earlier in this process, have dedicated $5 million a year from gas tax receipts and imposed $3.5 million in franchise fees on PGE customers to fund transportation projects and to the debt service retirement on these projects. However, the pledge of gas tax funds is the same funds that the State is now considering taking from the City. 2. Is the City proposing to adopt an oversight work group similar to that of the County? It has been the practice of the Council to use this Committee as the hearing body to take input from interest groups and to perform a liaison function with the City Council on any matter relative to transportation development fees. Planning and Development Committee June 16, 2009 Page 4 3. Is the City ro osin to amend the Traffic imipoct Fee ordinance to reflect a full credit option for constructed facilities similar to what the County recently adopted? The City and the County legal offices have differing views on that matter. The City's answer is no. To give away public funds to benefit a private sector in the event of an error made estimating a project would be considered unjust enrichment. The City is not proposing to do that. 4. Has the City given any broader base matching funds to support TRIP and what might happen in the future if funding for the TRIP program falls short? Again the answer to this question is the gas tax and the PGE Franchise Fees. The worst thing the City can do is bypass the opportunity to receive the $630 million in TRIP funds. Those funds must be procured. It is impossible for the City to give an absolute, concrete, definitive plan and a contingency because the Legislature can capture those funds at any time. There must be some openness to this process in terms of flexibility and adaptation during this statewide financial crisis. 5. Is the City currently working to identify any housing stimulus measures that can offset an extreme negative impact this fee would have on the local housing industry? By having a viable transportation plan and a fee schedule that meets the demands of that plan, the City hopes to be able to continue to process and approve developments, EIR's, maps, etc., and to withstand the environmental challenges an unfunded transportation plan would leave everyone exposed to. Having the backbone in place to ensure that the community can develop properly and that litigation can be withstood because of proper planning efforts is critical to be able to continue in an environment in which development can move forward. Bob Decker of HBA stated that he had only received staffs response to his questions the day before the meeting and has not had the opportunity to review all the information. Mr. Decker also stated that HBA is not comfortable with the level of oversight and accountability of the existing program and would like the City to follow suit with the County in establishing an oversight committee and TIF credit option. Doug Hunter of McMillin Homes stated that he is in agreement with HBA and warned that adopting the higher fee will put jobs at risk in the development community. Matt Towery of Towery Homes expressed that the new fees will affect his ability to sell homes because home prices will increase due to the fee increase. Mr. Towery also stated that he felt that the City Council is not concerned with the devastating affects these fees will have in his industry. Committee member Ken Weir advised that Council is concerned and this is not something they have decided in haste and needs to move forward. Committee member Harold Hanson added that he cannot find an argument to change direction at this point. In response to Mr. Towery's comments, Committee chair Zack Scrivner stated that as elected officials, no one wants to be in this position because the timing for this action is Planning and Development Committee June 16, 2009 Page 5 extremely difficult. The City has to come up with the legal match to secure the TRIP funds, plus the match needed to achieve the logical termini. The TRIP funds are a huge gift to this community, but along with that comes responsibility. The Committee members and Council made a difficult vote to impose a surcharge on gas and electric for everyone who lives in the City. Everyone had to contribute to some extent. If the '/2 cents sales tax had been approved the conversation would be completely different. There has been some discussion to have a graduated low-rate fee that would increase over a period of time. This would not be a good road for the City to take because it would cause the nexus document that the County and City's fees are based on to be flawed. City Attorney Ginny Gennaro added that the City and County both agree that a phase-in is not legally sustainable or supportable. Committee chair Scrivner stated that there are 35,000 lots that currently have vesting rights and several are on the books with the lower fee. One provision for the Committee to consider is that the City currently has Resolution 118-5 which establishes a policy regarding extension of vesting rights for subdivision maps. Committee chair Scrivner recommended an amendment of that resolution temporarily suspending the Policy to allow for the discretionary extension of vesting rights for maps with recorded phases whose initial year would expire before December 31, 2009. This will allow for the current fee to be locked in until December 31, 2010. Doug Hunter expressed that regardless of what the fee is, paying those fees at building final is a matter of three to five months in the building cycle. It will help their cash flow, but that option hasn't been brought to the table for discussion. City Manager Tandy advised that there is not a good mechanism to ensure collection of fees without damaging innocent parties. The only reasonable point would be at the time the building permit is issued. The Committee agreed that the current fees do not mitigate the traffic impacts in the City. Committee member Harold Hanson motioned to amend Resolution 118-05 as recommended. Committee members approved this motion. Committee member Ken Weir made a motion to move forward with staff's recommendations to the full Council. The motion was approved unanimously by all Committee members. 7. COMMITTEE COMMENTS None 7. ADJOURNMENT The meeting adjourned at 2:24:30 PM. cc: Honorable Mayor and City Council members