HomeMy WebLinkAbout05/06/2011
Staff: Rhonda Smiley, Harold Hanson, Chair Assistant to the City Manager Sue Benham Ken Weir REGULAR MEETING OF THE PLANNING AND DEVELOPMENT COMMITTEE of the City Council -City of Bakersfield
Friday, May 6, 2011 12:00 p.m. City Hall North 1600 Truxtun Avenue, Bakersfield, CA 93301 First Floor -Conference Room A A G E N D A 1. ROLL CALL 2. ADOPTION OF MARCH 14, 2011 AGENDA
SUMMARY 3. PUBLIC STATEMENTS 4. CLOSED SESSION A. Conference with Legal Counsel regarding potential litigation – Closed session pursuant to subdivision (b)(3)(A) of Government Code section
54956.9 (One matter) – Gennaro 5. DEFERRED BUSINESS A. Discussion and Committee Recommendation Regarding the Feasibility of Reducing Fees during the Economic Downturn – Tandy/Gennaro
B. Discussion and Committee Recommendation Regarding the 2011 Committee Meeting Schedule -Smiley 6. COMMITTEE COMMENTS 7. ADJOURNMENT
Committee Members: Staff: Rhonda Smiley, Harold Hanson, Chair Assistant to the City Manager Sue Benham Ken Weir AGENDA SUMMARY REPORT REGULAR MEETING OF THE PLANNING AND DEVELOPMENT
COMMITTEE Monday, March 14, 2011 1:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 The meeting was called to order at 12:00 PM 1. ROLL CALL Committee
members present: Councilmember Harold Hanson, Chair Councilmember Sue Benham Councilmember Ken Weir Staff present: Alan Tandy, City Manager Jim Eggert, Planning Director Rhonda Smiley,
Asst. to the City Manager Phil Burns, Building Director Steve Teglia, Asst. to the City Manager Raul Rojas, PW Director Chris Huot, Administrative Analyst Brad Underwood, PW Asst. Director
Robin Bice, Clerk Typist Marian Shaw, PW Civil Engineer Ginny Gennaro, City Attorney Chris Clark, TRIP Nelson Smith, Finance Director Tom Nellteton, TRIP Others present: Barry Nienke,
K.C. Roads Eileen Carroll, D.C.S. David Cates, Lenox Homes Donna Carpenter, H.B.A. Laura Lollar Wolfe, Arts Council of Kern Bob Decker, H.B.A. Matt Towery, Towery Homes Roger McIntosh,
McIntosh & Assoc. James C. Nickel, Nickel Family, LLC. Nate Kelly, KGET 17 News Gretchen Wenner, Bakersfield Californian DRAFT
AGENDA SUMMARY REPORT Planning and Development Committee Monday, March 14, 2010 Page 2 2. ADOPT DECEMBER 13, 2010 AGENDA SUMMARY REPORT Adopted as submitted 3. PUBLIC STATEMENTS None
4. NEW BUSINESS A. Discussion and Committee Recommendation Regarding the Feasibility of Reducing Fees during the Economic Downturn – Tandy /Gennaro City Manager Alan Tandy provided an
overview of the Building Fee Comparison chart for 2011 prepared by the City’s Building Division. Mr. Tandy also provided an overview of the most recent update to the traffic impact fees
which took two years to complete. Mr. Tandy explained traffic Impact Fees are one of the sources funding the TRIP projects. Based on the current environmental document processing and
the current schedule of TRIP projects, there will not be enough match money from the projected traffic impact fees in three years. This would necessitate an issuance of bonds to fund
multiple projects as they move into the construction phase, including 24th Street Widening, Rosedale Highway Widening, and Highway 178 Widening. The reduction in traffic impact fees
as discussed could cause complications in the bond issuance process for the Centennial Corridor project, which is over $100 million in match money. Transportation development fees, the
utility surcharge, and the gas tax would all be used as the local match requirement for the bond issuance. The bonding capacity will depend on the city’s revenue generated during the
five year period prior to the issuance of the bond. Circumstances out of the City’s control have led to recent increased development cost. For example, a new building code adopted by
the State of California, adding over $3,000 in costs for residential fire sprinklers and other new requirements; the County of Kern assessing mitigation requirements on County developments,
and developments that are coming into the City through annexation. Assistant to the City Manager Steven Teglia provided a brief summary on the Metro Area House Prices and Affordability
report provided by by the Home Builder’s Association (HBA). The report indicates how much income a household would need to qualify for the purchase price of a median new home and how
many households in the community met that threshold. According to the November 2010 Crabtree Report, home prices for new and existing homes are on the decline. There are many reasons
for the decline, including an increase in the number of foreclosures, surplus inventory, a high unemployment rate, and a restrictive lending market. DRAFT
AGENDA SUMMARY REPORT Planning and Development Committee Monday, March 14, 2010 Page 3 In conclusion, City Manager Alan Tandy provided the Committee with the following options: 1) Leave
the current fee as is. 2) Revise the traffic impact fees by changing the grid, changing the growth assumptions, and changing the street carrying structure, to reflect a slower growth
rate, more internal growth, less external growth, etc.. A reduction could jeopardize the City’s ability to legally justify our traffic impact fees and to meet existing future financial
obligation for our local roads projects. 3) Build an economic recovery period into the calculation of the fee; with the reduced fees being recovered in the out years. County Counsel’s
legal opinion regarding this option would have to be reconciled. If Council decides to proceed with this option, it would result in a different fee than the County’s, and the City Council
may need to meet with the City Attorney to review any legal issues. Roger McIntosh with McIntosh McIntosh & Associates stated the Council should look for alternatives to generate revenue
needed for matching funds for projects. Mr. McIntosh provided suggestions including: imposing a fee on resold homes and imposing a half cent sales tax, reviewing the list of facilities
with the County on an annual basis to see if there are facilities on the list which don’t need to be included in order to reduce the fee, an extension of vesting rights for final maps,
reviewing commercial and residential development fees ensure equal application of the impact fee, and reviewing the truck study published by Kern COG, to determine if the percentage
used in the current assumption can be increased to reflect their traffic which could help reduce the traffic impact fee. Matt Towery with Towery Homes stated that since the fees have
been increased, there has been a decrease in the amount of building permits being requested. Mr. Towery agreed with Mr. McIntosh and encouraged the Committee to seek alternatives to
help create revenue including providing a credit to developers. City Attorney Ginny Gennaro stated the Nexus document would need to be altered to decrease the amount of liability. Ms.
Gennaro also indicated that research would need to be done to investigate if other jurisdictions have done anything similar with imposed fees and if so, what process they followed. There
could be an issue with Prop 218. City Manager Alan Tandy stated that the City does not have the ability, under current California law, to unilaterally impose an increase in sales tax.
To impose a half cent sales tax would require voter approval, stated Ms. Gennaro. Public Works Director Raul Rojas stated a review of costs was conducted prior to the approval of the
program. The bid pricing included in the Nexus document was probably the lowest seen in the current economy. Various construction projects, like the Mohawk Bridge, Seventh Standard,
and the DRAFT
AGENDA SUMMARY REPORT Planning and Development Committee Monday, March 14, 2010 Page 4 Westside Parkway Phases one and two, were all going through the bidding process during the time
prior to the approval of the program. Mr. Rojas stated many projects listed in the facilities list actually assist the developers with costs associated with building roads. Barry Nienke
with Kern County Roads stated the fee was recently reviewed by the County in October and November of 2010 during their annual review process. Public Works Civil Engineer Marian Shaw
stated the maps under discussion have already expired so they cannot be extended. Ms. Shaw also stated that there are approximately a dozen maps which are due to expire within the next
year. City Attorney Ginny Gennaro clarified that the current Council policy, at the time of the Nexus study, was to not extend the vesting rights on maps. With that assumption, the figures
of the fees for those maps were included with the data used for the Nexus study. Committee member member Ken Weir asked staff what would happen if the amount of revenue received from
TIF fees decreases substantially and If the revenue generated for the TRIP matching requirements stay the same for the next few years, what kind of bonding capacity would that provide
the City. Finance Director Nelson Smith stated the bonding capacity will depend on what revenues are considered by the lending party at the time of the bond issuance. Committee member
Weir requested staff prepare and report describing any effects if the TIF fee were lowered for a length of time phased out over a period of time based on economic indicators like sales
tax increases, and permit issuance increases. Committee member Sue Benham asked if the Council reduced the TIF fees, would it require a new Nexus study, and if so, how long would it
take to complete it. Ms. Gennaro recommended that the Council re-do the Nexus study under those circumstances. An addendum or a supplement to lower the fee for a year to spur economic
growth can also be be done. Ms. Gennaro indicated It could take a couple of years to complete a new study, but not as long to complete an addendum or supplement. Staff would also need
to contact the County, and Council would need to be briefed on potential exposure to litigation. Committee Chair Harold Hanson stated that the City of Bakersfield is growing and unfortunately,
short sales, and foreclosures are in demand. Individuals are lowering their asking prices, which affects everyone in the industry. Committee Chair Hanson also asked when staff would
begin reaching out to lenders for the bond issuance. DRAFT
AGENDA SUMMARY REPORT Planning and Development Committee Monday, March 14, 2010 Page 5 Mr. Tandy stated that since the initial analysis was completed a few years ago, staff has maintained
contact with various underwriting firms. Periodically, staff will update the information they have, in order to be prepared on a continuous basis. Mr. Smith stated that the bond issuance
is driven by the City’s ability to spend the money in a specific time frame. Projects would have to be ready for construction so that the improvement funds can be used within a short
time. The money cannot be put into a reserve account for a later time. The Committee continued this item to the next committee meeting. B. Discussion and Committee Recommendation regarding
the 2011 Committee Meeting Schedule -Smiley Adoption of the 2011 Committee Calendar was postponed to allow the Committee members to review their calendars. 5. COMMITTEE COMMENTS None
6. ADJOURNMENT The meeting adjourned at 1:25: PM DRAFT
BUILDING FEE COMPARISON CHART-2011 * Indicates City has a 1/2 cent sales tax Fresno * Esondido * Merced Modesto Visalia * Pasadena * Stockton * Kern County Bakersfield Average for transportation
improvements Total Other Fees $28,097.89 $44,407.70 $34,983.55 $51,544.79 $22,952.00 $39,645.00 $45,968.28 $24,459.71 $27,127.00 $35,465 Building Permit Fee & Plan Check Fee $1,294.19
$2,264 $4,175.00 $1,350 $1,380 $2,822 $3,143 $915.69 $1,042 $2,043 TOTAL FEES $ 29,392 $46,672 $39,159 $52,895 $24,332 $42,467 $49,111 $25,375 $28,169 $37,508 Ag Land Mitigation Fee
$5,008.04 Air Quality Fee $187.00 Art in Public Places $210.00 $23.33 Bedroom Tax -First Room $15.00 $1.67 Bedroom Tax -Add. Rooms $15.00 Building Permit Fees (Inspect) $762.07 $1,095.00
Building Permit Tax Impact Fee $1,885.00 Cal Green Building Fee $8.00 $6.33 $8.00 Capital Facilities Fee $18,135.00 Capital Preservation Fee $184.00 CFPR $58.00 $6.44 Climate Action
Plan Implementation Fee $184.00 Code Compliance $293.00 City Office Space Fee $233.50 Community Facility District Fee $9,395.88 Community Rating System Admin Fee $36.09 Community Rec
Center Fee $240.50 Construction Tax $4,224.00 $469.33 Construction Water Fee $157.80 $17.53 Cost Revenue Impact Fee $1,820.00 County Impact Fee $1,707.00 County Public Facilities Fee
$7,139.00 $793.22 Design & Historic Preservation $152.00 Development Code Maintenance Fee $184.00 Development Oversite Commission Fee $184.00 Drainage Facility Fee $1,071.00 $119.00
Electrical Fees -SFD $111.00 Facilities Plan Reimbursement F $58.00 Environmental Fee $75.00 $8.33 Fee Area Admin Fee $937.43 Fire Dept. Fee $539.00 $781.00 135 (Located w/in $146.67
Fire Dept Plan Review $150.00 $584.00 Fire Sprinklers (PC & Inspect) $60.00 $250.00 $280.00 Flood Control Facility Fee $290.25 General Plan Maint Fee $41.15 $75.00 $12.91 Habitat Conservation
Fee $750.71 $751.00 $166.86 Housing Element Preparation & Monitoring $92.00 Land update Fee $3.25 Library Fee $451.00 Major Street Fees $9,500.00 $1,055.56 Mechancial Fees $83.00 Microfilm
Fee Fee $1.05 $55.00 $50.00 New Residential Impact Fee $20,981.00 Offsite Improvements Fee $47.50 $5.28 Park Development Fee $600.00 $4,129.00 $662.00 $2,981.00 $1,615.00 $1,680.00 $1,296.33
Park Land Fee $1,120.00 $2,798.00 $435.33 Permit Tracking Fee $14.00 $1.56 PFFP $10,404.00 Plan Check Fee $453.22 $2,822.00 $445.68 Plan Check Fee w/Energy $711.75 Planning Fee $552.00
BUILDING FEE COMPARISON CHART-2011 * Indicates City has a 1/2 cent sales tax Fresno * Esondido * Merced Modesto Visalia * Pasadena * Stockton * Kern County Bakersfield Average Plumbing
Fees $113.00 Police Station Expansion $624.00 $2,959.00 $591.00 Public Facilities Fee $4,533.00 $465.00 $3,130.00 $903.11 Public Works Residential Construction $339.00 $72.10 Recycle
Fee $89.55 Refuse Fee $415.00 Regional Park Fee $2,278.00 $253.11 School Fee $5,940.00 $6,840.00 $7,380.00 $5,940.00 $5,940.00 $4,480.00 $9,600.00 $7,440.00 $7,440.00 $6,777.78 Sewer
Bond Redemption Fee $0.00 Sewer Connection $3,600.00 $7,500.00 $4,769.00 $6,508.00 $3,860.00 $6,172.00 $1,437.00 $4,000.00 $4,205.11 Sewer/Water Admin Fee $10,613.80 $284.41 State Seismic
Residential Fee $22.40 $17.70 $17.00 $15.83 $17.00 $22.00 $18.40 $12.00 $21.00 $18.15 State Building Permit Fee $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Street Improvement Fee $8,177.50 Surface Water Fee $3,512.00 $390.22 Technology Fee $232.77 Traffic Impact Fees Regional (RTIF) $2,081.00 $3,115.00 $4,072.00 $2,557.00 $2,987.08 $12,870.00
$12,870.00 $4,505.79 Traffic Local Residential Fee $850.00 Traffic Signal Fees $450.94 $110.00 $62.33 Wastewater Connection Fee Res. $7,500.00 Water Connection Fee $3,000.00 $7,930.00
$1,954.00 $1,431.56 Water Facility Fee(based on 1") $5,932.00 Water Meter $330.00 $370.00 $77.78 Zoning Plan Check Fee $35.00 $1,100.00 $258.00 $154.78 Other: Bldg Standards Fee If located
within 2010 Gen Plan Fees effective January 1, 2011 Impact or ROW not both. 1.00 for every 25,000.00 valuation = $5.00
Planning and Development Committee Calendar * * * DRAFT * * * January 2011 Through December 2011 All meetings will be held at City Hall North, First Floor, Conference Room A Approved:
Planning and Development City Council Meetings -5:15 p.m. Committee Meetings 12:00 p.m. Holidays -City Hall Closed S M T W TH F S S M T W TH F S S M T W TH F S 1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12 9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19 16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26 23 24 25
26 27 28 29 27 28 27 28 29 30 31 30 31 S M T W TH F S S M T W TH F S S M T W TH F S 1 2 1 2 3 4 5 6 7 1 2 3 4 3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11 10 11 12 13 14 15 16 15
16 17 18 19 20 21 12 13 14 15 16 17 18 17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25 24 25 26 27 28 29 30 29 30 31 26 27 28 29 30 S M T W TH F S S M T W TH F S S M T
W TH F S 1 2 1 6 1 2 3 3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10 10 11 12 13 14 15 16 14 15 16 17 18 19 19 20 11 12 13 14 15 16 17 17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19
20 21 22 23 24 24 25 26 27 28 29 30 28 29 30 31 25 26 27 28 29 30 31 S M T W TH F S S M T W TH F S S M T W TH F S 1 1 2 3 4 5 1 2 3 2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10 9 10
11 12 13 14 15 13 14 15 16 17 18 29 11 12 13 14 15 16 17 16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24 23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31 30 31 July
August September October November December January February March April May June
----------------PUBLIC STATEMENTS SPEAKER'S C A R D Planning and Development Committee of the City Council Committee Meeting Date 5 -f -/I You are invited to address the Committee under
Public Statements on any subject that is not listed on the Committee Agenda. All other statements will be allowed at the time the Committee addresses the item. No action will be taken
on any item not on the Agenda; this Committee will gather information and report back to the City Council. p p p p p -p --------------------------Public statements are limited to three
(3) minutes per speaker. The Committee may, by simple majority vote, waive the time limit. Please fill out a Speaker's Card and present it to the Committee Chair: Councilmember Harold
Hanson Name: SO=7%-Company1 I Organization: GSU4 C-4 I Address:
PUBLIC STATEMENTS SPEAKER'S CARD Planning and Development Committee of the City Council Committee Meeting Date You are invited to address the Committee under Public Statements on any
subject that is not listed on the Committee Agenda. All other statements will be allowed at the time the Committee addresses the item. No action will be taken on any item not on the
Agenda; this Committee will gather information and report back to the City Council. Public statements are limited to three (3) minutes per speaker. The Committee may, by simple majority
vote, waive the time limit. Please fill out a Speaker's Card and present it to the Committee Chair: Councilmember Harold Hanson Name: Company1 Organiz~tion: Address: Phone: -pry Fax
/e-mail: B~W(W-%. 1 Subject:
PLANNING AND DEVELOPMENT FRIDAY, MAY 6,2011 ATTENDANCE LIST Name Organization Contact: Phone1E-mail