Table of Contents Agenda 2 Presentation from Timothy Henry, Fire Chief, North Central Fire Protection District Presentation - NCFPD 6 Minutes December 19, 2018 11 Payroll Payroll/Overtime Report 15 Warrants Accounts Payable 18 Resolution Approving Agreements for Acceptance of Real Property Donation and City’s Donation of Real Property for the Construction of Low Income Affordable Housing Project Staff Report - Land Donation 38 Public Hearing Introduction and First Reading of Ordinance Amending Chapter 17 of the Kerman Municipal Code Relating To Permitted Uses in the Urban Reserve, Open Space, Rural Residential, Single Family Residential, and Multiple Family Residential Districts and Definitions for Employee Housing and Farmworker Housing Staff Report - Amending Chapter 17 of KMC 42 Public Hearing Introduction and First Reading of Ordinance Amending Chapter 17.42 of the KMC Relating to Multiple Family Residential Districts Density Standards Staff Report- Amending Multiple Family Density Standards 49 Public Hearing to Consider Land Use Amendments Relating to Parcels Located on the Northwest Corner of Kearney Blvd and Vineland Avenue Staff Report - Land Use Amendments 53 Community Services Funding Request from Kerman Youth Cheer Community Service Funding Request Forms 64 Resolutions Approving Agreements for Administration and Collection of Transaction (Sales) and Use Tax (Measure M) Staff Report - Sales and Use Tax 66 Declaration of Vehicle and Equipment Surplus Sale Staff Report - Vehicle and Surplus Sale 83 1
Transcript
Table of Contents
Agenda 2Presentation from Timothy Henry, Fire Chief, North Central FireProtection District
Presentation - NCFPD 6Minutes
December 19, 2018 11Payroll
Payroll/Overtime Report 15Warrants
Accounts Payable 18Resolution Approving Agreements for Acceptance of RealProperty Donation and City’s Donation of Real Property for theConstruction of Low Income Affordable Housing Project
Staff Report - Land Donation 38Public Hearing Introduction and First Reading of OrdinanceAmending Chapter 17 of the Kerman Municipal Code RelatingTo Permitted Uses in the Urban Reserve, Open Space, RuralResidential, Single Family Residential, and Multiple FamilyResidential Districts and Definitions for Employee Housing andFarmworker Housing
Staff Report - Amending Chapter 17 of KMC 42Public Hearing Introduction and First Reading of OrdinanceAmending Chapter 17.42 of the KMC Relating to Multiple FamilyResidential Districts Density Standards
Staff Report- Amending Multiple Family DensityStandards 49
Public Hearing to Consider Land Use Amendments Relating toParcels Located on the Northwest Corner of Kearney Blvd andVineland Avenue
Staff Report - Land Use Amendments 53Community Services Funding Request from Kerman YouthCheer
Community Service Funding Request Forms 64Resolutions Approving Agreements for Administration andCollection of Transaction (Sales) and Use Tax (Measure M)
Staff Report - Sales and Use Tax 66Declaration of Vehicle and Equipment Surplus Sale
Staff Report - Vehicle and Surplus Sale 83
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AGENDA KERMAN CITY COUNCIL
REGULAR MEETING Kerman City Hall
850 S. Madera Avenue Wednesday, January 16, 2019
6:30 PM
Rhonda Armstrong – Mayor Gary Yep – Mayor Pro Tem Michele Arvance – Council Member Raj Dhaliwal – Council Member Espi Sandoval – Council Member
ALL MEETING ATTENDEES ARE ADVISED THAT ALL PAGERS, CELLULAR TELEPHONES AND ANY OTHER COMMUNICATION DEVICES SHOULD BE POWERED OFF UPON ENTERING THE COUNCIL
CHAMBERS, AS THESE DEVICES INTERFERE WITH OUR AUDIO EQUIPMENT.
OPENING CEREMONIES
• Welcome – Mayor • Call to Order • Roll Call • Invocation
At this time the Council wishes to provide anyone an opportunity to give a brief invocation or inspirational thought. In accordance with law, we would request this opportunity not be used to recruit converts, to advance anyone, or to disparage any other faith or belief. If no one steps forward, we will observe a moment of silence so that we may all focus our thoughts on how best to serve our community.
• Pledge of Allegiance – City Clerk
AGENDA APPROVAL/ADDITIONS/DELETIONS
To accommodate members of the public or convenience in the order of presentation, items on the agenda may not be presented or acted upon in the order listed.
1. PRESENTATIONS/CEREMONIAL MATTERS
A. Presentation from Timothy Henry, Fire Chief, North Central Fire Protection District (MR) ATTACHMENTS: Presentation - NCFPD
REQUEST TO ADDRESS COUNCIL
This portion of the meeting is reserved for members of the public to address the Council on items of interest that are not on the Agenda and are within the subject matter jurisdiction of the Council. Speakers shall be limited to three minutes. It is requested that no comments be made during this period on items on the Agenda. Members of the public wishing to address the Council on items on the Agenda should notify the Mayor when that Agenda item is called, and the Mayor will recognize your discussion at that time. It should be noted that the Council is prohibited by law from taking any action on matters discussed that are not on the Agenda. Speakers are asked to please use the microphone, and provide their name and address.
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2. CONSENT CALENDAR
Matters listed under the Consent Calendar are considered routine and will be enacted by one motion and one vote. There will be no separate discussion of these items. If discussion is desired, a member of the audience or a Council Member may request an item be removed from the Consent Calendar and it will be considered separately.
A. SUBJECT: Minutes
RECOMMENDATION: Council approve minutes as presented. ATTACHMENTS: December 19, 2018
B. SUBJECT: Payroll Payroll Report: 12/16/18 - 12/29/18: $152,284.15; Retro Pay & Other: $4,768.48; Overtime: $3,479.65; Holiday at 1/2 Time: $1,728.42; Standby: $1,365.52; Comp Time Earned: 32.63 RECOMMENDATION: Council approve payroll as presented. ATTACHMENTS: Payroll/Overtime Report
C. SUBJECT: Warrants 1. Nos. 14782-15021 $869,472.29 ACH $147,989.94 2. Excepting #15011 $2,729.89 RECOMMENDATION: Council approve warrants and electronic bank transfers as presented. (Pursuant to Government Code 37208) ATTACHMENTS: Accounts Payable
Consent Calendar D. SUBJECT: Resolution Approving Agreements for Acceptance of Real Property Donation
and City’s Donation of Real Property for the Construction of Low Income Affordable Housing Project (JK) RECOMMENDATION: Council by motion adopt resolution approving: (i) Real Property Donation Agreement, between the City of Kerman and Valley Vanguard Properties, Inc., a California Corporation and (ii) Land Donation Agreement between the City of Kerman and Willow Partners, LLC, a California limited liability company and authorize the City Manager to execute the agreements and related documents. ATTACHMENTS: Staff Report - Land Donation
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3. PUBLIC HEARINGS These hearings are scheduled at the time stated and will be heard by the Council as close to the time stated as possible. A. SUBJECT: Public Hearing Introduction and First Reading of Ordinance Amending Chapter
17 of the Kerman Municipal Code Relating To Permitted Uses in the Urban Reserve, Open Space, Rural Residential, Single Family Residential, and Multiple Family Residential Districts and Definitions for Employee Housing and Farmworker Housing (OP) RECOMMENDATION: Council introduce and waive first reading, open public hearing, consider any comments, close public hearing of ordinance amending Chapter 17 of the Kerman Municipal Code Relating To Permitted Uses in the Urban Reserve, Open Space, Rural Residential, Single Family Residential, and Multiple Family Residential Districts and Definitions for Employee Housing and Farmworker Housing. ATTACHMENTS: Staff Report - Amending Chapter 17 of KMC
B. SUBJECT: Public Hearing Introduction and First Reading of Ordinance Amending Chapter 17.42 of the KMC Relating to Multiple Family Residential Districts Density Standards (OP) RECOMMENDATION: Council open public hearing, hear any public comments, close public hearing and waive first reading of Ordinance Amending Chapter 17.42 of the KMC Relating to Multiple Family Residential Districts Density Standards ATTACHMENTS: Staff Report- Amending Multiple Family Density Standards
C. SUBJECT: Public Hearing to Consider Land Use Amendments Relating to Parcels Located on the Northwest Corner of Kearney Blvd and Vineland Avenue (OP) RECOMMENDATION: Council, open public hearing, take any public comments, close public hearing and introduce and initiate the actions to adopt resolution approving Land Use Amendments relating to parcels located on the northwest corner of Kearney Blvd and Vineland Avenue as follows: (1) adopt Resolution Amending the General Plan land use designations from “Very Low Density Residential” and “Low Density Residential” to “High Density Residential” and (2) Introduce Ordinance Rezoning Certain Zone Districts from Rural Residential (“RR”) and Smart Development (“SD-R-4.5’) (4,500 s.f. minimum lot size) to Multi-family Residential (“R-3”), and (3) Adoption of Mitigated Negative Declaration ATTACHMENTS: Staff Report - Land Use Amendments
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4. DEPARTMENT REPORTS A. SUBJECT: Community Services Funding Request from Kerman Youth Cheer (MR)
RECOMMENDATION: Council review request and direct staff accordingly. ATTACHMENTS: Community Service Funding Request Forms
B. SUBJECT: Resolutions Approving Agreements for Administration and Collection of Transaction (Sales) and Use Tax (Measure M) (CC) RECOMMENDATION: Council by motion adopt the following: 1. Resolution approving agreements with the California Department of Tax Fee
Administration for implementation of a Local Transactions and Use Tax and authorizing City Manager to execute same.
2. Resolution authorizing the examination of Transactions (Sales) and Use tax Record.
3. Resolution approving amendment to agreement with Avenu Insights & Analytics LLC (formerly MuniServices LLC)
ATTACHMENTS: Staff Report - Sales and Use Tax
C. SUBJECT: Declaration of Vehicle and Equipment Surplus Sale (CC) RECOMMENDATION: Council by motion approve the declaration of the vehicles and equipment as surplus property and authorize the surplus sale. ATTACHMENTS: Staff Report - Vehicle and Surplus Sale
5. CITY MANAGER/STAFF COMMUNICATIONS
6. MAYOR/COUNCIL REPORTS
7. CLOSED SESSION
None
8. ADJOURNMENT
Agenda packet is available for review 72 hours prior to the meeting at the city clerk’s office and on the city website. Items received at the meeting will be available for review at the city clerk’s office. In compliance with the American with Disabilities Act (ADA), if you need special assistance to participate at this meeting, please contact the City Clerk at (559) 846-9380. Notification of 48 hours prior to the meeting will enable the City Clerk to make reasonable arrangement to ensure accessibility to this meeting. Pursuant to the ADA, the meeting room is accessible to the physically handicapped.
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6
Total Incidents Commercial EducationalMulti-Family Residential
City of Kerman - Fire Incidents - 5 Year Total 104
6
12
21
45
3 334
12
4 4
1
56
455
1
9
32
0
2
4
6
8
10
12
14
MobileProperty usedas Structure
Other Rubbish Fire Special OutsideFire
Structure Fire Vegetation Fire Vehicle Fire
City of Kerman - Fire Incidents - Annually
2014 2015 2016 2017 2018
8
G
SHAW
OLIVE
JENSEN
PALM
H
ASHLAN
MARK
S
M
BELMONT
POLK
MARO
A
CALIFORNIA
HAYE
S
BRAW
LEY
SHIELDS
MCKINLEY
GRAN
TLAN
D
HERNDON
BLYT
HE
BLAC
KSTO
NE
CORN
ELIA
BULLARD
ELM
DAKOTA
WHITESBRIDGE
NEES
FRUI
T
WEST
NIELSEN
HUGH
ES
BRYA
N
WISH
ON
SAN JOSE
FIG
VALE
NTIN
E
AUDUBON
WEBER
SPRUCE
SIERRA
KEARNEY
EMERSON
BARSTOW
ALLUVIAL
BRYA
N
PALM
WEBERPO
LK
MARK
SBULLARD
FRUI
T
BULLARD
BRAW
LEY
WEST
H
VALE
NTIN
E
LegendMajor StreetsCity LimitsNC8NCFD-M
/ NCFD Jurisdictional Boundaries
9
Grantland
Sta 21Sta 19
Sta 22
Sta 23 Sta 20Sta 12
Sta 09Sta 16
Sta 03
Sta 18Sta 14Sta 02
NFPA Remote AreaNorth Central Rural
Date Saved: 6/13/2018 5:04:01 PM
Within 8 Miles of Fire Stations
Area Not Reached25.4 Sq Miles
Population 268
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MINUTES KERMAN CITY COUNCIL
REGULAR MEETING Kerman City Hall
850 S. Madera Avenue Wednesday, December 19, 2018
6:30 PM
Rhonda Armstrong – Mayor Gary Yep – Mayor Pro Tem Raj Dhaliwal – Council Member Ismael Herrera – Council Member Espi Sandoval – Council Member
Present: Mayor Armstrong (RA), Mayor Pro Tem Gary Yep (GY), Raj Dhaliwal (RD), Ismael Herrera (IH), Espi Sandoval (ES) Absent: None Also Present: City Manager Kunkel, City Attorney Cantú, Chief of Police, Lieutenant, Community Services Director, Public Works Director, City Engineer, Assistant Planner, Finance Director
Voting: Yes, No, Absent (Abstain or Recuse if needed)
RECOMMENDATION: Council approve payroll as presented.
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C. SUBJECT: Warrants (CC)
1. Nos. 14693-14871 $933,737.64 ACH $157,798.22
2. Excepting: Sebastian #14721 $2,723.93, #14860 $2,742.74
RECOMMENDATION: Council approve warrants and electronic bank transfers as presented. (Pursuant to Government Code 37208)
D. SUBJECT: Resolution Accepting Public Easements for Phase II of Kerman Crossings Shopping Center (JJ)
RECOMMENDATION: Council by motion adopt the resolution accepting the public easements for Phase II of Kerman Crossings Shopping Center.
Res 18-65
E. SUBJECT: Resolution Accepting the Water Meter Installation for Kerman Garden Apartments and Helsem Terrace (JJ)
RECOMMENDATION: Council by motion adopt the resolution accepting the Water Meter Installation for Kerman Garden Apartments and Helsem Terrace and authorize the City Engineer to record the Notice of Completion.
Res 18-66
F. SUBJECT: Resolution Accepting the 2018 Local Street Project (JJ)
RECOMMENDATION: Council by motion adopt the resolution accepting the 2018 Local Street Project and authorize the City Engineer to record the Notice of Completion.
Res 18-67
G. SUBJECT: Resolutions Accepting Improvements and Authorizing Filing of Notices of Completion for Tract No. 5832 and Tract No. 5921 (JJ)
RECOMMENDATION: Council by motion:
1. Adopt the resolution accepting the improvements for Tract No. 5832 and authorize the City Engineer to record the Notice of Completion; and
2. Adopt the resolution accepting the improvements for Tract No. 5921 and authorize the City Engineer to record the Notice of Completion.
Res 18-68 Res 18-69
H. SUBJECT: Monthly Investment Report Ending November 30, 2018 (CC)
RECOMMENDATION: Council accept the Monthly Investment Report as presented
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3. PUBLIC HEARINGS None
4. DEPARTMENT REPORTS
A. SUBJECT: Resolution Appointing Members to the Planning Commission and Announcement of Votes (MR)
Approved GY/RD Appointing Robert Felker Kevin Nehring Leopoldo Espino (5-0-0) Res 18-70
RECOMMENDATION: Council by motion adopt resolution appoint three applicants to the Planning Commission.
B. SUBJECT: Receipt of Real Property Gift and City's Donation of Real Property for the Construction of a Low Income Affordable House Project to Willow Partners LLC (JK)
RECOMMENDATION: Council direct staff and the City Attorney to draft the agreements and other necessary documents to complete the acquisition and disposition of the property for Council consideration and approval.
Approved IH/GY (5-0-0) Res 18-71
C. SUBJECT: Award of Contract for Double L Mobile Ranch Park Water Service Project to Emmett’s Excavation, Inc. Contingent on Receipt of State Funding for Project (JJ)
RECOMMENDATION: Council by motion adopt the resolution awarding the contract for the Double L Mobile Ranch Park Water Service Project to Emmett’s Excavation, Inc. in the amount of $1,277,158.00, contingent on receipt of State funding, and authorize the City Manager to sign the contract.
Approved IH/RD (5-0-0) Res 18-72
5. CITY MANAGER/STAFF COMMUNICATIONS
6. MAYOR/COUNCIL REPORTS
7. CLOSED SESSION 8:04 p.m.
A. Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: APN 023-220-08S; Agency Negotiators: City Manager, City Engineer; Negotiating Parties: Jagrup S & Sukhdev K Sidhu Trust; Under Negotiation: Price and terms of payment
B. Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8; Property: APN 023-220-07S; Agency Negotiators: City Manager, City Engineer; Negotiating Parties: Fidel Alcantara; Under Negotiation: Price and terms of payment
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COUNCIL RECONVENE FROM CLOSED SESSION & REPORT ANY ACTION TAKEN 8:21 p.m. No reportable action.
8. ADJOURNMENT 8:22 p.m.
MINUTES CERTIFICATION
I, MARCI REYES, City Clerk for the City of Kerman, do hereby declare under penalty of perjury that the above Minutes are a true depiction of all actions taken at the City Council meeting held on the first date above written at Kerman City Hall, 850 S. Madera Ave, Kerman, CA.
Date: December 20, 2018 ____________________ Marci Reyes City Clerk
MAYOR MAYOR PRO-TEM Rhonda Armstrong Gary Yep COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER Raj Dhaliwal Ismael Herrera Espi Sandoval
DEPARTMENT: ADMINISTRATION STAFF REPORT
CITY COUNCIL MEETING COUNCIL MEETING DATE: JANUARY 16, 2019
To: Mayor and City Council From: John Kunkel, City Manager Subject: Resolution Approving Agreements for Acceptance of Real Property Donation and City’s Donation of Real
Property for the Construction of Low Income Affordable Housing Project RECOMMENDATION Council by motion adopt resolution approving: (i) Real Property Donation Agreement, between the City of Kerman and Valley Vanguard Properties, Inc., a California corporation and (ii) Land Donation Agreement between the City of Kerman and Willow Partners, LLC, a California limited liability company and authorize the City Manger to execute the agreements and related documents. EXECUTIVE SUMMARY Council, at the December 19, 2018, meeting, authorized staff to proceed with the drafting of the necessary documents to facilitate a real property donation to the City for the purpose of a low-income multi family housing project to be located at the Southeast corner of Siskiyou and Whitesbridge Avenues. The purpose of the donation is to enhance the application for a tax credit, low-income 60-unit multi family project by Willow Partners LLC known as the Gateway Apartments. As explained at the December 19 meeting, the multi-family project will help the City meet its affordable housing requirements set forth in the Housing Element. Two companion agreements are before the City Council. The first agreement is the agreement donating the property to the City conditioned on its use for the affordable housing apartment project being developed by Willow Partners LLC. Under the second agreement the City donates the property to Willow Partners LLC. The agreements are designed to run concurrently so that upon City’s acceptance of the property it will donate the property to Willow Partners LLC. All costs for consummating the agreements are borne by Willow Partners LLC. The agreements include customary provisions for escrow opening and closing, due diligence conditions, and Title Insurance. Willow Partners LLC is obligated to proceed with the Tax Allocation process for funding the Project and the land will be subject to a recorded 45 year affordable housing covenant. The agreements were reviewed by the Planning Commission for findings that they are consistent with the General Plan. The Planning Commission will consider same at its meeting on January 14, 2019, and staff will have their findings at this City Council meeting. Finally, the City Attorney has advised that the transactions meet the requirements of Government Code Section 37364 which provides as follows:
(a) The Legislature reaffirms its finding that the provision of housing for all Californians is a concern of vital statewide importance. The Legislature recognizes that real property of cities can be utilized, in accordance with a city’s best interests, to provide housing affordable to persons and families of low or
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City Council Staff Report Page 2 of 4 Real Property Donation
moderate income. Therefore, notwithstanding any provision of a city’s charter, or any other provision of law, whenever the legislative body of a city determines that any real property or interest therein owned or to be purchased by the city can be used to provide housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code or as defined by the United States Department of Housing and Urban Development or its successors, and that this use is in the city’s best interests, the city may sell, lease, exchange, quitclaim, convey, or otherwise dispose of the real property or interest therein at less than fair market value, or purchase an interest in the real property, to provide that affordable housing under whatever terms and conditions the city deems best suited to the provision of such housing. (b) Not less than 80 percent of the area of any parcel of property disposed of pursuant to this section shall be used for development of housing. (c) Not less than 40 percent of the total number of those housing units developed on any parcel pursuant to this section shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households, and at least half of which shall be affordable to very low income households.
FISCAL IMPACT None except for staff time. Attachments A. Resolution
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City Council Staff Report Page 3 of 4 Real Property Donation
Attachment ‘A’
RESOLUTION NO. 19-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN APPROVING REAL PROPERTY DONATION AGREEMENT BETWEEN THE CITY OF KERMAN AND VALLEY VANGUARD PROPERTIES, INC., A CALIFORNIA CORPORATION AND LAND DONATION AGREEMENT BETWEEN THE CITY OF KERMAN AND WILLOW PARTNERS, LLC, A CALIFORNIA LIMITED LIABILITY AND AUTHORIZING THE CITY MANGER TO EXECUTE THE AGREEMENTS AND RELATED DOCUMENTS
WHEREAS, at the December 19, 2018, and the January 16, 2019, regular meetings, the City Council considered real property transactions to enhance the application for a tax credit, low-income 60-unit multifamily project by Willow Partners LLC located at the Southeast corner of Siskiyou and Whitesbridge Avenues known as the Gateway Apartments; and WHEREAS, the multi-family project will help the City meet its affordable housing requirements set forth in the Housing Element; and WHEREAS, the real property transactions entail two companion agreements one donating property to the City by Valley Vanguard Properties, Inc. and the other having the City donate the property to Willow Partners LLC; and
WHEREAS, the agreements provide that all costs of the transactions shall be borne by Willow Partners LLC; and WHEREAS, the Planning Commission has made findings that the real property transactions are consistent with the General Plan; and WHEREAS, the real property transactions meet the requirements of Government Code Section 37364 which provides that housing is a vital statewide concern and which authorizes transactions such as those set forth in the two real property agreements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Kerman as follows:
SECTION 1. The foregoing recitals are incorporated herein by reference as if fully set forth.
SECTION 2. The following agreements are approved: i) Real Property Donation Agreement, between the City of Kerman and Valley Vanguard Properties, Inc., a California corporation and (ii) Land Donation Agreement between the City of Kerman and Willow Partners, LLC, a California limited liability company.
SECTION 3. Authorize the City Manager to execute the agreements and related documents.
.
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City Council Staff Report Page 4 of 4 Real Property Donation
The foregoing resolution was introduced at a regular meeting of the City Council of the City of Kerman held on the 16th day of January and passed as said meeting by the following vote:
AYES: NOES: ABSENT: ABSTAIN:
The foregoing resolution is hereby approved. __________________________ Rhonda Armstrong Mayor ATTEST: _________________________________ Marci Reyes City Clerk
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City of Kerman
A Place Where “Community Comes First”
MAYOR MAYOR PRO-TEM Rhonda Armstrong Gary K. Yep
COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER Rajinder Dhaliwal Israel Herrera Espi Sandoval
DEPARTMENT: PLANNING & DEVELOPMENT STAFF REPORT
CITY COUNCIL MEETING MEETING DATE: JANUARY 16, 2019
To: Mayor and City Council From: Olivia Pimentel, Assistant Planner Subject: Public Hearing Introduction and First Reading of Ordinance Amending Chapter 17 of the Kerman
Municipal Code Relating To Permitted Uses in the Urban Reserve, Open Space, Rural Residential, Single Family Residential, and Multiple Family Residential Districts and Definitions for Employee Housing and Farmworker Housing
RECOMMENDATION Council introduce and waive first reading, open public hearing, consider any comments, close public hearing of ordinance amending Chapter 17 of the Kerman Municipal Code Relating To Permitted Uses in the Urban Reserve, Open Space, Rural Residential, Single Family Residential, and Multiple Family Residential Districts and Definitions for Employee Housing and Farmworker Housing. BACKGROUND The purpose of the proposed ordinance is to add language to the Municipal Code regarding employee housing and farmworker housing as permitted uses in certain zone districts. This is an action plan from the Kerman Housing Element and will ensure compliance with State Health & Safety Code Section 17032.5, which concerns employee housing that serves six or fewer employees and with Health & Safety Code Section 17032.6 regarding farmworker housing.
DISCUSSION
The Planning Commission held a public hearing on December 10th and adopted resolution recommending that the City Council consider the Ordinance Amendment.
A. Employee Housing
Section 17021.5 of the State Health & Safety Code is within the part of the Health and Safety Code known as the Employee Housing Act (“EHA”). The EHA sets standards for construction, maintenance, use, and occupancy of living quarters called “employee housing” as defined in Section 17008 of the Health & Safety Code. Section 17021.5 requires that jurisdictions treat employee housing located in single family homes and occupied by six or fewer employees as a single-family use. In this way, it is similar to the rules for registered group homes of six or fewer residents. There are several provisions that apply to employee housing for six or fewer employees:
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City Council Staff Report Page 2 of 7 Initiate Ordinance relating to Employee Housing and Farmworker Housing
• It cannot be included within the definition of a boarding house, hotel, dormitory, etc. • No conditional use permit, zoning variance, or other zoning clearance can be required that is not
required of a family dwelling of the same type in the same zone. • Use of a single-family dwelling for purposes of employee housing does not constitute a change of
occupancy. • Generally, the housing shall not be subject to any business taxes, local registration fees, use permit
fees, or other fees to which other family dwellings of the same type in the same zone are not likewise subject. Fire inspection fees cannot be charged.
• Rules regarding deeds, transfer of real property, etc. must treat the employee housing the same as a property used by a single household.
For these reasons, those districts that allow single family dwellings need to be amended to allow employee housing for six or fewer employees as a permitted use.
B. Farmworker Housing. Health and Safety Code Section 17021.6 provides that farmworker housing with up to 12 units or 36 beds designed for use by a single family or household is considered an agricultural use of land and cannot be required to obtain any permit that an agricultural use is not required to obtain. The City of Kerman includes agricultural uses in the Rural Reserve (RR), Single Family Residential (R-1), Multiple Family Residential (R3), Urban Reserve (UR), and Open Space (O) zone districts. For this reason, the proposed ordinance provides that those districts are amended to add farmworker housing as a permitted use. A definition for farmworker housing is also being added to the ordinance.
C. Alternative to Proposed Farmworker Housing Amendments. An alternative to the proposed farmworker housing ordinance amendments is to amend some of the current zone districts that allow agricultural use of land as a conditional use rather than a permitted use. If such amendments are made, farmworker housing would need to follow conditional use procedures and would be listed as a conditional use in the respective zone districts.
D. Summary of Proposed Amendments
1. Add definitions for “employee housing” and “farmworker housing” in Chapter 17.90. 2. Add employee housing as defined in new provision to zone districts which allow single-family dwellings. 3. Add farmworker housing as a permitted use in zone districts which allow agricultural uses.
ENVIRONMENTAL REVIEW:
Staff has performed a preliminary environmental assessment of this project (zone amendments) and, pursuant to CEQA Guidelines, Section 15061 (b) (3), has determined with certainty that there is no possibility that this project may have a significant effect on the environment. This is because the baseline for permitted uses in the affected zone districts allows similar intensities of use and the proposed uses are equal to or less than those uses. Therefore, this project is not subject to CEQA. Attachments A. Ordinance
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City Council Staff Report Page 3 of 7 Initiate Ordinance relating to Employee Housing and Farmworker Housing
Attachment ‘A’
ORDINANCE NO. 19-__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KERMAN AMENDING CHAPTERS 17.32, 17.34, 17.36, 17.40, 17.42, AND 17.90 OF THE KERMAN MUNICIPAL CODE RELATING TO PERMITTED
USES IN THE URBAN RESERVE, OPEN SPACE, RURAL RESIDENTIAL, SINGLE FAMILY RESIDENTIAL, AND MULTIPLE FAMILY RESIDENTIAL DISTRICTS AND DEFINITIONS FOR EMPLOYEE
HOUSING AND FARMWORKER HOUSING
THE CITY COUNCIL OF THE CITY OF KERMAN DOES ORDAIN AS FOLLOWS: SECTION 1. Section 17.32.020 of Chapter 17.32 “UR Urban Reserve” of Title 17 of the Kerman Municipal Code is amended to read as follows: 17.32.020 Permitted uses. Permitted uses in this district are as follows: A. One single family dwelling or one single family manufactured home consistent with the architectural standards specified in Chapter 17.40; B. Agricultural and residential accessory uses consistent with the standards established in Chapter 17.62; C. Home occupations consistent with the requirements of Chapter 17.18; D. The growing and harvesting of trees, vines, vegetables, field crops, grains, pasture and other agricultural commodities; E. The raising of livestock, including but not limited to sheep, goats, horses, mules, and swine. The total number of animals shall not exceed two mature animals per acre except in the case of newborns. Newborns up to four months, in age shall not be considered a part of this calculation; F. The raising of poultry providing that there are not more than three birds per one thousand three hundred square feet of lot area and the total does not exceed one hundred birds; G. The raising of rabbits and other fur-bearing animals providing that there are no more than sixty mature animals on the property at any one time; H. Sale of agricultural products, including sale at roadside stands, if the products are produced on the property where the sale is conducted; I. Agricultural service establishments primarily engaged in performing agricultural animal husbandry or horticultural services including, but not limited to large animal veterinary practices, blacksmiths, farm management offices, custom meat-cutting, and other agriculturally dependent uses which are of a similar character and not substantially different from the list above;
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City Council Staff Report Page 4 of 7 Initiate Ordinance relating to Employee Housing and Farmworker Housing J. Open space uses including, but not limited to wildlife habitat, wetlands, and game preserves but not including hunting clubs; K. Beekeeping; L. Agricultural processing such as fruit dehydrators and packing sheds not exceeding a use area of five thousand square feet; M. Greenhouses, hothouses, and similar types of buildings not to exceed a use area of ten thousand square feet; N. Employee Housing; O. Farmworker Housing. SECTION 2. Section 17.34.020 of Chapter 17.34 “Open Space, Recreation and Public Facilities” of Title 17 of the Kerman Municipal Code is amended to read as follows: 17.34.020 Permitted uses. Permitted uses in this district are as follows: A. One single-family dwelling or single-family mobile home consistent with the architectural standards established in Section 17.40.050; B. Agricultural and residential accessory uses consistent with the standards established in Chapter 17.62; C. Parks, playgrounds, campgrounds and botanical gardens; D. Wetlands, wildlife habitat, and reservoirs; E. Growing and harvesting of agricultural crops; F. Grazing of livestock; G. Employee Housing; H. Farmworker Housing. SECTION 3. Section 17.36.020 of Chapter 17.36 RR Rural Residential District of Title 17 of the Kerman Municipal Code is amended to read as follows: 17.36.020 Permitted uses. Permitted uses in this district are as follows: A. One single-family dwelling or one single-family manufactured home consistent with the architectural standards specified in Section 17.40.050;
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City Council Staff Report Page 5 of 7 Initiate Ordinance relating to Employee Housing and Farmworker Housing B. Agricultural and residential accessory uses consistent with the standards established in Chapter 17.62; C. Licensed small family day-care home (six or fewer children); D. Home occupations consistent with the requirements of Chapter 17.18; E. The growing and harvesting of trees, vines, vegetables, field crops, grains, pasture and other agricultural commodities; F. The raising of livestock, including but not limited to sheep, goats, horses, mules, and swine. The total number of animals shall not exceed two mature animals per acre except in the case of newborns. Newborns less than four months in age shall not be considered a part of the calculation; G. Employee Housing; H. Farmworker Housing. SECTION 4. Section 17.40.020 of Chapter 17.40 “R-1 Single Family Residential District” of Title 17 of the Kerman Municipal Code is amended to read as follows: 17.40.020 Permitted uses. A. One single-family dwelling and accessory structures or one single-family manufactured home and accessory structures; B. Licensed small family day care home (eight or fewer children, as regulated by state law); C. Temporary subdivision sales offices, model homes, and construction materials storage yards within a tract being developed; D. Home occupations consistent with the requirements of Chapter 17.18; E. Private greenhouses and horticultural collections, flower and vegetable gardens; F. Recreational vehicle, motor home, travel trailer, truck camper, camping trailer, boat or boat trailer storage, consistent with the requirements of Chapter 17.87; G. Cottage food operations (as regulated by state law); H. An accessory dwelling unit consistent with the requirements of Chapter 17.66; I. Employee Housing. J. Farmworker Housing SECTION 5. Section 17.42.020 of Chapter 17.42 “R-3 Multiple Family Residential District” of Title 17 of the Kerman Municipal Code is amended to read as follows:
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City Council Staff Report Page 6 of 7 Initiate Ordinance relating to Employee Housing and Farmworker Housing 17.42.020 Permitted uses. Permitted uses in this district are as follows: A. Single-family dwellings, single-family manufactured homes consistent with the architectural standards established in Section 17.40.050; B. Multiple-family dwelling up to forty units; C. Residential accessory uses consistent with Chapter 17.62; D. Licensed small family day care home (six or fewer children); E. Community care facility (six or fewer persons); F. Temporary subdivision sales offices, model homes, and construction materials storage yards within a tract being developed; G. Home occupations consistent with the requirements of Chapter 17.18; H. Private greenhouses and horticultural collections, flower and vegetable gardens; I. Recreational vehicle, motor home, travel trailer, truck camper, camping trailer, boat or boat trailer storage, consistent with the requirements of Chapter 17.78; J. Cottage food operations (as regulated by state law); K. An accessory dwelling unit consistent with the requirements of Chapter 17.66; L. Employee Housing; M. Farmworker Housing. SECTION 6. Section 17.90.020 of Chapter 17.90 Definitions of Title 17 of the Kerman Municipal Code is amended by adding two definitions to the current definitions to read as follows:
“Employee housing” means housing for six or fewer employees in a single-family dwelling in districts
where single-family dwellings are allowed. Employee housing shall not be included within the definition of a boarding house, rooming house, hotel, dormitory or other similar term that implies the employee housing differs in any way from a family dwelling and shall not constitute a change in occupancy for purposes of local building codes. Additionally, employee housing shall not be subject to any fees to which other family dwellings of the same type in the same zone are not likewise subject.
“Farmworker housing” means housing with up to 12 units or 36 beds designed for use by a single family
or household and which is considered an agricultural use of land per Health and Safety Code Section 17021.6. SECTION 7. CEQA. Staff has performed a preliminary environmental assessment of this project (zone amendments) and, pursuant to CEQA Guidelines, Section 15061 (b) (3), has determined with certainty that
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City Council Staff Report Page 7 of 7 Initiate Ordinance relating to Employee Housing and Farmworker Housing there is no possibility that this project may have a significant effect on the environment. This is because the baseline for permitted uses in the affected zone districts allows similar intensities of use and the proposed uses are equal to or less than those uses. Therefore, this project is not subject to CEQA. SECTION 8. Effective Date. This ordinance shall become effective thirty days after its adoption. SECTION 9. Publication. Upon passage, this ordinance or a summary of the same shall be published within fifteen (15) days of passage, pursuant to the laws of the State of California, in the Kerman news, a newspaper of general circulation published and circulated in said City of Kerman. If a summary of the ordinance is published, the City Clerk shall cause a certified copy of the full text of the proposed ordinance to be posted at City Hall at least five days prior to the meeting at which the ordinance is adopted and again after the meeting at which it is adopted. The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Kerman on the 16th day of January, 2019, and was passed and adopted at a regular meeting of the City Council of the City of Kerman on ______________________2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: The foregoing ordinance is hereby approved: _________________________ Rhonda Armstrong Mayor Attest: __________________________ Marci Reyes City Clerk
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City of Kerman
A Place Where “Community Comes First”
MAYOR MAYOR PRO-TEM Rhonda Armstrong Gary K. Yep
COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER Rajinder Dhaliwal Israel Herrera Espi Sandoval
DEPARTMENT: PLANNING & DEVELOPMENT STAFF REPORT
CITY COUNCIL MEETING MEETING DATE: JANUARY 16, 2019
To: Mayor and City Council From: Olivia Pimentel, Assistant Planner Subject: Public Hearing Introduction and First Reading of Ordinance Amending Chapter 17.42 of the
KMC Relating to Multiple Family Residential Districts Density Standards
RECOMMENDATION Council open public hearing, hear any public comments, close public hearing and waive first reading of Ordinance Amending Chapter 17.42 of the KMC Relating to Multiple Family Residential Districts Density Standards BACKGROUND The proposed Ordinance Amendment amends certain zoning requirements in the Kerman Municipal Code relating to the multi-family zone district. This will ensure compliance with statutory requirements of Government Code (GC) section 65583.2 (h) and (i), relating to zoning development standards in multifamily housing districts such as accommodate 20 units per acre and comply with the City’s Housing Element requirements as well as new comprehensive State legislation regarding Multi-Family Residential that became effective January 1, 2017.
A. The Housing Element. The Housing Element was adopted by the City Council on April 6, 2016. The Housing Element is required by State law and establishes policies and action plans to accommodate the housing needs of all income segments of Kerman’s population through the years 2016 to 2023. On July 25, 2016, the California Department of Housing and Community Development (HCD) provided the City of Kerman with a letter stating that the Housing Element conditionally met the requirements of state housing element law. The July 25, 2016, letter includes a list of requirements necessary for the Housing Element to be in compliance. Included in the list of requirements were specific amendments to the Zoning Ordinance, relating to multi-family residential units, density, etc.
DISCUSSION
The Planning Commission held a public hearing on December 10th and approved a resolution recommending City Council adopt the Ordinance Amendment in order to comply with State law.
Proposed Amendments to the zoning ordinance are as follows: Chapter 17.42 – Multi-Family Residential The Kerman Zoning Ordinance currently allows Multi-Family residential units by right up to forty units and additional units permitted with Conditional Use Permit in the Multi-Family zones. This is not consistent with
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City Council Staff Report Page 2 of 4 Initiate Ordinance relating to Multiple Family Density Standards state law and is being amended.. The density standard for the R-3 zone is being amended to comply with state law. The following revisions are necessary for compliance with State law. The following requirements of GC section 65583.2(h) and (i), relating to the Housing Elements, Program 3: Rezone and Provision of Adequate Sites including all of the following must be part of the Kerman Zoning Ordinance:
• Permits both rental and owner-occupied multifamily housing without discretionary action (Requiring a CUP for projects exceeding 100 units is not consistent with the statute.)
• Requires a minimum density of 20 units per acre, • Accommodate a minimum of 16 housing units per site, • At least 50 percent of the very low and low-income housing need shall be accommodated
on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted, except that the city may accommodate all of the very low and low-income housing need on sites designated for mixed uses if;
o those sites allow 100 percent residential use; and o Require that residential use occupy 50 percent of the total floor area of a
mixed-use project. Amend: Chapter 17.42 Multi-Family Residential District Amend: Chapter 17.42.040 Development standards to comply with the Housing Element new
legislation
Zone Unit Density
R-3 One residential unit per two thousand three hundred one thousand five hundred
square feet of area. Residential development on parcels containing at least 0.8 acres
shall have a minimum density of 20 units per acre to acre to assure affordability
standards, unless it can be demonstrated that affordability can be achieved with a lesser density.
Delete: 3. Maximum Density. The maximum number of units on any given site shall be one hundred regardless of the underlying density standards.
ENVIRONMENTAL REVIEW: The proposed ordinance amendment to the City of Kerman Zoning Ordinance has been determined to be exempt from environmental review pursuant to Section 15061(b)(3) of the California Guidelines for Implementation of the California Environmental Quality Act (CEQA). Section 15061(b)(3), the general rule exemption, states that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment that the activity is not subject to CEQA. No significant environmental impacts would occur as a result of these ordinance amendments. Attachments A. Ordinance
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City Council Staff Report Page 3 of 4 Initiate Ordinance relating to Multiple Family Density Standards
Exhibit ‘A’
ORDINANCE NO. 19-__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KERMAN AMENDING CHAPTER 17.42 MULTIPLE FAMILY RESIDENTIAL DISTRICTS DENSITY STANDARDS
THE CITY COUNCIL OF THE CITY OF KERMAN DOES ORDAIN AS FOLLOWS:
SECTION 1.. Section 17.42.040 , sections B and D are amended as follows:
17.42.040 Development Standards. Development standards in this district are as follows:
A. Lot Size. The minimum lot size for each residential zone shall be seven thousand
square feet. B. Unit Density.
1. Zone Standard.
Zone Unit Density
R-2 One residential unit per three thousand five hundred square feet of area.
R-3 One residential unit per two thousand three hundred one thousand five hundred square feet of area. Residential development on parcels larger than .08 acres shall have a minimum density of 20 units per acre to assure affordability standards, unless it can be demonstrated that affordability can be achieved with a lesser density.
2. Location. Multiple-family developments containing ten or more units shall be located on a collector or arterial street, as identified in the circulation element of the Kerman general
C. Building Coverage. The building coverage for each lot shall be as follows:
Zone Coverage R-2 Forty-five percent. R-3 Fifty percent.
D. Lot Dimensions. The lot dimensions for each residential zone shall be as follows:
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City Council Staff Report Page 4 of 4 Initiate Ordinance relating to Multiple Family Density Standards
SECTION 3. CEQA. The proposed ordinance amendment to the City of Kerman Zoning Ordinance is exempt from environmental review pursuant to Section 15061(b) (3) of the California Guidelines for Implementation of the California Environmental Quality Act (CEQA). Section 15061(b) (3), the general rule exemption, states that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment that the activity is not subject to CEQA. No significant environmental impacts would occur as a result of these ordinance amendments. SECTION 4. Effective Date. This ordinance shall become effective thirty days after its adoption. SECTION 5. Publication. Upon passage, this ordinance or a summary of the same shall be published within fifteen (15) days of passage, pursuant to the laws of the State of California, in the Kerman news, a newspaper of general circulation published and circulated in said City of Kerman. If a summary of the ordinance is published, the City Clerk shall cause a certified copy of the full text of the proposed ordinance to be posted at City Hall at least five days prior to the meeting at which the ordinance is adopted and again after the meeting at which it is adopted. The ordinance shall become effective thirty days after its adoption. The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Kerman on the 16th day of January, and was passed and adopted at a regular meeting of the City Council of the City of Kerman on _________________ by the following vote:
AYES: NOES: ABSENT: ABSTAIN:
The foregoing ordinance is hereby approved: __________________________ Rhonda Armstrong, Mayor ATTEST: ___________________________ Marci Reyes City Clerk
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City of Kerman
A Place Where “Community Comes First”
MAYOR MAYOR PRO-TEM Rhonda Armstrong Gary K. Yep
COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER Rajinder Dhaliwal Israel Herrera Espi Sandoval
DEPARTMENT: PLANNING & DEVELOPMENT STAFF REPORT
CITY COUNCIL MEETING MEETING DATE: JANUARY 16, 2019
To: Mayor and City Council From: Olivia Pimentel, Assistant Planner Subject: Public Hearing to Consider Land Use Amendments relating to parcels located on the
northwest corner of Kearney Blvd and Vineland Avenue
RECOMMENDATION Council open public hearing, take any public comments, close public hearing and introduce and initiate the actions to adopt resolution approving Land Use Amendments relating to parcels located on the northwest corner of Kearney Blvd and Vineland Avenue as follows: (1) adopt Resolution Amending the General Plan land use designations from “Very Low Density Residential” and “Low Density Residential” to “High Density Residential” and (2) Introduce Ordinance Rezoning the site from Rural Residential (“RR”) and Smart Development (“SD-R-4.5’) (4,500 s.f. minimum lot size) to Multi-family Residential (“R-3”), and (3) Adoption of Mitigated Negative Declaration BACKGROUND
The Planning Commission held a public hearing on December 10th and approved a resolution recommending that City Council amend the General Plan land use designations and Rezone of approximately six (6) acres located on the northwest corner of Kearney Blvd and Vineland Avenue to allow for multiple family residential uses in order to comply with the Housing Element. The City of Kerman adopted the Kerman Housing Element in 2016. The Housing Element was conditionally approved by the State of California Housing and Community Development Department (HCD). There were several conditions that were required in order for the City to remain in compliance with State housing policy. One of the conditions was for the City of Kerman to rezone approximately 8.4 acres of land (inside city limits) to allow for future multiple-family residential development – to meet the City’s need for affordable housing. To date, the City has rezoned approximately 4.5 acres (Gateway Villa Apartments at the southeast corner of Whitesbridge and Siskiyou), which leaves approximately 3.9 acres remaining that require rezoning. City staff identified approximately 6 acres of undeveloped land on the west side of Vineland Avenue, north of Kearney Boulevard, and reached out to the owners of the properties. The property owners all agreed to allow for a rezone of the rear portions of their properties to allow for any future multiple family development, leaving the frontages along Kearney Blvd to remain as rural residential, as indicated (Figure 1 below). Each parcel as a whole is over three (3) acres. a rezone of approximately two (2) acres on the rear of each parcel will allow for future multi-family residential development. Any future multiple family development would require a parcel map to legally divide the land.
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City Council Staff Report Page 2 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family
Because state law requires that zoning be consistent with the General Plan, it is also necessary to amend the General Plan.
Figure 1 Site Location
General Information
Site Location: The subject site is located on the northwest corner of Kearney Blvd and Vineland Avenue (portions of Assessor Parcel Numbers 023-130-32s,33s and 34s)
Existing Uses: Vacant
Vine
land
Ave
.
north
Kearney Blvd.
Area proposed for rezoning
Existing parcel lines
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City Council Staff Report Page 3 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family General Plan: The General Plan Land Use Element designates the three parcels on the
northwest of Kearney Blvd and Vineland with a combination of “Very Low Density Residential” and “Low Density Residential”
. According to the General Plan, these designations are typically reserved for those lands that are on the fringe of the community, have already been divided into lot sizes that are one-half acre or larger, or are required to “buffer” an industrial, agricultural, or public use.
Zoning: The easterly two parcels are zoned “RR” (Rural Residential). RR zoning is intended to provide for low density residential development on large lots in order to preserve the rural character of Kerman, allow for agricultural uses and serve as a transition area between urbanizing lands and agriculture. The westerly parcel is zoned SD-R-4.5 (Smart Development (4,500 s.f. minimum lot size) and Rural Residential for the frontage along Kearney Blvd. This zone is intended to promote development designs that respond to significant planning-related issues facing the San Joaquin Valley, including urbanization of agricultural land, air pollution, housing affordability, traffic, aesthetics and neighborhood deterioration.
Surrounding Uses & Zoning:
Location Existing Land Uses General Plan Designations Zone Districts North Single family residential Medium Density Residential R-1-7 South Single family residential Median Density Residential R-1.7 East Single family residential Medium Density Residential R-1-7
West Senior Housing/Kearney Palms III Single Family Ranch Home
Medium Density Residential Very Low Density
SD-R-4.5 RR
Analysis Rezoning of the site will allow for future development of multi family housing – to satisfy the City’s requirement to rezone land for affordable housing (apartment complexes, senior citizen projects, condominiums, etc). It should also be noted that the R-3 zone is being amended to allow a density of one dwelling per 1,500 square feet of lot area. This will put Kerman’s density standard in line with State law and other cities in the County. The current standard allows one dwelling per 2,300 square feet of lot area. The General Plan land use map will require an amendment to redesignate property from “Very Low Density Residential” and “Low Density Residential” to “High Density Residential At six acres, the site could theoretically accommodate up to 174 dwelling units (at one unit per 1,500 square feet of lot area). However, once other standards are factored in (such as setbacks, parking, lot coverage, etc.) it is likely that significantly fewer units would result. Again, no projects are proposed at the current time – the site is only proposed for a zone change and land use amendment to allow for future development – in compliance with the Kerman Housing Element.
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City Council Staff Report Page 4 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family Environmental Review Staff determined that the proposed amendments required an environmental study (prepared consistent with the California Environmental Quality Act (CEQA)). The study indicates that the project will not have a significant impact on the environment provided that mitigation measures are implemented, and therefore, the City may adopt a “Mitigated Negative Declaration”.
Summary and Recommendation
The proposed action is to amend the zoning and land use designations on the subject site, which consists of six acres spanning three parcels. The General Plan land use designations will be amended from “Very Low Density Residential” and “Low Density Residential” to “High Density Residential”. The site will be rezoned from Rural Residential (“RR”) and Smart Development (“SD-R-4.5) (4,500 s.f. minimum lot size) to Multi-family Residential (“R-3). Finally, it is recommended the City Council adopt a Mitigated Negative Declaration as adequate environmental documentation for the project.
On the basis of the foregoing analysis, staff recommends that the City Council adopt Resolution approving Rezone, General Plan Amendment, and Mitigated Negative Declaration
Attachments:
A. Photographs of site: Three parcels (Sims, Joe, Talmachoff) B. Land Use Map C. Resolution
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City Council Staff Report Page 5 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family
Attachment ‘A’ Photographs of Site
General Plan Amendment and Rezone Northeast Corner of Kearney Blvd and Vineland Avenue
(Frontages along Kearney Blvd. to remain very low density/rural residential)
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City Council Staff Report Page 6 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family
Attachment ‘B’
Existing Zoning and General Plan Land Use Maps Approximately 6 acres (3 parcels)
023-130-32s,33s,34s) EXISTING
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City Council Staff Report Page 7 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family
Attachment ‘C’
RESOLUTION NO. 18-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN MAKING FINDINGS TO APPROVE GENERAL PLAN AMENDMENT CHANGING THE GENERAL PLAN DESIGNATION FROM
“VERY LOW DENSITY RESIDENTIAL” AND “LOW DENSITY RESIDENTIAL” TO “HIGH DENSITY RESIDENTIAL” AND ADOPT A MITIGATED NEGATIVE DECLARATION AS ADEQUATE
ENVIRONMENTAL DOCUMENTATION RELATING TO THE REAR PORTIONS OF APPROXIMATELY SIX ACRES OF PROPERTY SITUATED ON THREE PARCELS, LOCATED ON THE NORTHWEST OF
KEARNEY BLVD AND VINELAND
WHEREAS, the City of Kerman adopted the Kerman Housing Element in 2016. The Housing Element was “conditionally” approved by the State of California Housing and Community Development Department (HCD) with several conditions that were required in order for the City to remain in compliance with State housing policy that included adequate sites for multiple family residential land uses to accommodate affordable housing.
WHEREAS, the City of Kerman seeks to be in compliance with the State of California’s
regulations for adequate sites for affordable housing as required by the Kerman Housing Element. WHEREAS, the proposed General Plan Amendment to Redesignate the land uses and the
related ordinance to Reclassify the zone districts of property for the rear portions of several properties located northwest of Kearney Blvd and Vineland Avenue will allow for multiple family residential uses as required by City of Kerman’s Housing Element requirements, and;
WHEREAS, Section 65300 et seq. of the California Government Code requires each city to
have a comprehensive, long-term general plan for the physical development of each county. WHEREAS, Section 65860 of the California Government Code requires that zoning be
consistent with the General Plan. WHEREAS, the General Plan Amendment, is depicted in Exhibit ‘A’ and incorporated by
this reference; and WHEREAS, the Planning Commission pursuant to chapter 17.26, Zoning Ordinance
Amendments, section 17.26.030 conducted a duly noticed public hearing on December 10, 2018 and recommended that City Council consider the related zone ordinance and this General Plan Amendment to (APN 023-130-32s,33s and 34s); and
WHEREAS, the Planning Department determined that the Proposed Ordinance requires an
environmental study (prepared consistent with the California Environmental Quality Act (CEQA)) and the study indicates that the project will not have a significant impact on the environment, provided that mitigation measures are implemented and therefore the City may adopt a “Mitigated Negative Declaration”
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City Council Staff Report Page 8 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family NOW, THEREFORE, BE IT RESOLVED by the City Council, after considering all the evidence presented at the public hearing as follows:
1. The foregoing recitals are incorporated by reference as if fully set forth.
2. The City Council approves a General Plan Amendment as illustrated in Exhibit A. Based on the finding that the proposed general plan amendment is of substantial benefit to the City and the amendment is internally consistent with the General Plan. The General Plan Amendment will bring the City into compliance with the conditions set by HCD for the Housing Element.
3. The following findings are hereby made:
a. The General Plan amendments as set forth in the are consistent and compatible with other goals, policies and implementation programs set forth in the Kerman General Plan.
b. The Proposed General Plan amendments will not be detrimental to the public health, safety, or welfare, or materially injurious to the properties or improvements in the community.
4. The Proposed amendments require an environmental study (prepared consistent with the California Environmental Quality Act (CEQA)) and the study indicates that the project will not have a significant impact on the environment, provided that mitigation measures are implemented, and therefore the City may adopt a “Mitigated Negative Declaration”
The foregoing resolution was adopted at a regular meeting of the City Council of the City of Kerman held on this 16th day of January 2019, and passed at said meeting by the following vote.
AYES:
NOES:
ABSENT:
ABSTAIN:
The foregoing resolution is hereby approved.
____________________ Rhonda Armstrong Mayor
ATTEST:
___________________ Marci Reyes City Clerk
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City Council Staff Report Page 9 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family
Exhibit ‘A’
Proposed General Plan Land Use and Zoning Maps Approximately 6 acres (Remainder portions of 3 parcels)
023-130-32s,33s,34s) (Frontages along Kearney Blvd to remain Very Low Density/Rural Residential)
Maps of Proposed Land Use and Zoning designations
Proposed Land Use Designation:
“High Density Residential”
Proposed Zoning:R-3 (Multi Family
Residential)
Kearney Blvd. Kearney Blvd.
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City Council Staff Report Page 10 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family
Attachment ‘D’
AN ORDINANCE OF THE CITY OF KERMAN, CALIFORNIA, AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF KERMAN HERETOFORE ADOPTED BY TITLE 17 OF THE KERMAN MUNICIPAL CODE, BEING THE ZONING ORDINANCE OF THE CITY OF KERMAN BY RECLASSIFYING CERTAIN ZONE DISTRICTS FROM RR (RURAL RESIDENTIAL) AND SD-R-4.5 (SMART DEVELOPMENT 4,500 S. F. MINIMUM LOT SIZE) TO THE R-3 (MULTI-FAMILY RESIDENTIAL) ZONE DISTRICT.
THE CITY COUNCIL OF THE CITY OF KERMAN DOES ORDAIN AS FOLLOWS:
SECTION 1. Based upon the testimony and information presented at the public hearing of January
16, 2019, and upon review and consideration of the environmental documentation provided, the adoption of the proposed rezoning is in the best interest of the City of Kerman. The Council adopts the Mitigated Negative Declaration prepared in accordance with CEQA.
SECTION 2. The Council finds that the zone districts of the real property described in Exhibit “A”,
located in the City of Kerman and shown on the Official Zoning Map of the City of Kerman, is reclassified from the from RR (Rural Residential) and SD-R-4.5 (Smart Development (4,500 s.f. minimum lot size) to the R-3 (Multi-family Residential) zone district.
SECTION 3. The Council finds that the reclassified zone district is consistent with the 2027 Kerman
General Plan. SECTION 4. Effective Date. This ordinance shall become effective and in full force and effect at
12:01 a.m. on the thirty-first day after its passage. SECTION 5. Publication. Upon passage, this ordinance or a summary of the same shall be published
within fifteen (15) days of passage, pursuant to the laws of the State of California, in the Kerman news, a newspaper of general circulation published and circulated in said City of Kerman. If a summary of the ordinance is published, the City Clerk shall cause a certified copy of the full text of the proposed ordinance to be posted at City Hall at least five days prior to the meeting at which the ordinance is adopted and again after the meeting at which it is adopted.
CLERK'S CERTIFICATION
I, Marci Reyes, City Clerk of the City of Kerman, certify that the foregoing Ordinance was introduced at a meeting of the City Council on January 16, 2019, and adopted by the Council of the City of Kerman, California, at a regular meeting held on the ______________, 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN:
_____________________________ Marci Reyes, City Clerk
Date: _____________________
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City Council Staff Report Page 11 of 11 General Plan Amendment/Rezone Six Acres on Kearney and Vineland for Multiple Family
Exhibit ‘A’
Proposed Land Use and Zoning Maps Approximately 6 acres (Remainder portions of 3 parcels)
023-130-32s,33s,34s) (Frontages along Kearney Blvd to remain Very Low Density/Rural Residential)
Maps of Proposed Land Use and Zoning designations
Proposed Land Use Designation:
“High Density Residential”
Proposed Zoning:R-3 (Multi Family
Residential)
Kearney Blvd. Kearney Blvd.
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City of Kerman
“Community Comes First”
MAYOR MAYOR PRO-TEM Rhonda Armstrong Gary Yep COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER Raj Dhaliwal Ismael Herrera Espi Sandoval
DEPARTMENT: FINANCE STAFF REPORT
CITY COUNCIL MEETING COUNCIL MEETING DATE: JANUARY 16, 2019
To: Mayor and City Council From: Carolina Camacho, Finance Director Subject: Resolutions Approving Agreements for Administration and Collection of Transaction (Sales) and Use
Tax (Measure M)
RECOMMENDATION Council by motion adopt the following: 1. Resolution approving agreements with the California Department of Tax Fee Administration for implementation
of a Local Transactions and Use Tax and authorizing City Manager to execute same. 2. Resolution authorizing the examination of Transactions (Sales) and Use tax Record. 3. Resolution approving amendment to agreement with Avenu Insights & Analytics LLC (formerly MuniServices
LLC)
DISCUSSION On August 1, 2018, The City Council adopted Resolution No. 18-51 which placed a one percent transactions and Use Tax measure (Measure M) on the November 6, 2018, ballot. Measure M was approved by a majority of the City of Kerman voters. Pursuant to revenue and tax code section 7265 the new tax is schedule to become operative on April 1, 2019. The California Department of Tax Fee Administration (CDTFA) administers and collects the Transactions and Use Taxes for all jurisdictions within the State. Accordingly, they will also be responsible for the administration and collection of the City’s Transactions and Use Tax. In order to allow the CDTFA to complete these tasks and complete appropriate preparations for collection of the new tax the CDTFA requires the adoption of a resolution authorizing a City official to execute the following two agreements:
1. Agreement for Preparation to Administer and Operate City's Transactions and Use Tax Ordinance.
2. Agreement for State Administration of City's Transactions and Use Taxes.
Additionally, Section 7056 of the Revenue and Taxation Code requires that an agency designate by resolution individuals authorized to examine confidential transaction and use tax records provided by the CDTFA. The City had previously adopted Resolution No. 02-77 designating authorization to examine sales and use tax (Bradley-Burns Tax) collection information. The CDTFA considers the transaction and use tax to be a separate data base from the Bradley-Burns Tax and requires a separate resolution. In determining which positions need access to both Bradley-Burns Tax and Transaction and Use Tax records, it is necessary to adopt a new resolution for the Transaction and Use Tax. One additional position (Finance Director) has been added to the positions designated as having authority
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City Council Staff Report Agreements for administration and collection of transaction (sales) and use tax (Measure M) Page 2 of 17 to examine both the Bradley-Burns Tax and the Transaction and Use Tax records. Local officials who are allowed access to confidential records should note that the use of such information is limited to the governmental purposes set forth in the resolution and is not subject to release in public meetings or other such forums. Confidential records may not be shared with anyone who have not been authorized by resolution. The City contracts with Avenu Insights & Analytics LLC (formerly MuniServices LLC) to provide sales and use tax auditing, projection and recovery services. These services include the examination of sales and use tax records to ensure that these taxes are properly attributed to the City and facilitating the process of correcting misallocations by the CDTFA so that revenue is remitted to the City. Accordingly, it is necessary that Avenu Insights & Analytics LLC be added to the resolution authorizing access to the transaction and use tax records provided by the CDTFA and that an amendment with Avenu Insights & Analytics LLC be executed. Finally, it is noted that under Revenue and Taxation Code Section 7252, the term “District” refers to “city, county, city and county, or other governmental entity authorized to impose transaction and use taxes pursuant to this part.” For that reason many of the documents including resolutions and agreements required by the State use the term “District” rather than “City.” FISCAL IMPACT The CDTFA will begin collection of the one percent transactions and use tax beginning April 1, 2019. The City will receive its first advance payment at the end of June 2019. The first full quarter’s data will not be available until September 2019. It is anticipated that $250,000 will be collected for FY 2018-19 and $1 million for FY 2019-20. The City is responsible to pay to the CDTFA all preparatory costs, including costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing of forms, developing instructions for the CDTFA’s staff and for taxpayers, and other necessary preparatory costs which shall include the CDTFA’s direct and indirect costs as specified by Section 11256 of the Government Code. The maximum amount of all preparatory costs to be paid by the City shall not, in any event, exceed $175,000. The CDTFA spreads preparatory costs among the various agencies with new transaction and use taxes statewide. As a result of the November 2018 General Election having a large number of local revenue measures pass, the cost to the City is expected to be considerably less than the $175,000 not to exceed amount.
PUBLIC HEARING None Required Attachments:
A. Resolution w/Exhibits B. Resolution C. Resolution
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Attachment ‘A’
RESOLUTION NO. 19-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN AUTHORIZING CITY MANAGER TO EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR
IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX.
WHEREAS, on August 1, 2018, the City Council approved Ordinance No. 18-09 amending the City Municipal Code and providing for a local transactions and use tax; and
WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes, and
Whereas, the Department requires that the City Council authorize the agreements;
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Kerman that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement.
The foregoing resolution was adopted at a regular meeting of the City Council of the City of Kerman held on the 16th day of January 2019, and passed at said meeting by the following vote:
AYES: NOES: ABSENT: ABSTAIN:
The foregoing resolution is hereby approved. ______________________________ Rhonda Armstrong Mayor ATTEST: _____________________________ Marci Reyes City Clerk
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Exhibit ‘A’
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of ___KERMAN____, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows: 1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City. 2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code. 3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final. 5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. 6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) 7. Communications and notices may be sent by first class United States mail. Communications and notices to be sent to the Department shall be addressed to: California Department of Tax and Fee Administration P.O. Box 942879 MIC: 27 Sacramento, California 94279-0027 Attention: Supervisor Local Revenue Branch
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Communications and notices to be sent to City shall be addressed to:
City of Kerman 850 S Madera Ave. Kerman, CA 93630
Attention: City Manager
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement. CITY OF KERMAN CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION By By (Signature) Administrator John Kunkel (Typed Name) City Manager (Title)
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Exhibit ‘B’
AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Kerman has adopted, and the voters of the City of Kerman (hereafter called “City” or “District”) have approved by the required majority vote, the City of Kerman Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following: 1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code. 2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 18-09, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II ADMINISTRATION AND COLLECTION
OF CITY TAXES A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance. B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled. C. Transmittal of money. 1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter. 2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes
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City Council Staff Report Agreements for administration and collection of transaction (sales) and use tax (Measure M) Page 7 of 17 collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter. 3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement. D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder. E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department. G. Records of the Department. When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement. H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code: 1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
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City Council Staff Report Agreements for administration and collection of transaction (sales) and use tax (Measure M) Page 8 of 17 2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies. B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is complete when deposited in the mail. Communications and notices to be sent to the Department shall be addressed to: California State Department of Tax and Fee Administration P.O. Box 942879 Sacramento, California 94279-0027 Attention: Administrator Local Revenue Branch Communications and notices to be sent to the City shall be addressed to:
City of Kerman 850 S Madera Ave. Kerman, CA 93630
Attention: City Manager
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above. B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2019. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
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C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.
ARTICLE VI
ADMINISTRATION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable. B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance. 2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement. 3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers. 4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code. 5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City. 6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final. 7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of
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City Council Staff Report Agreements for administration and collection of transaction (sales) and use tax (Measure M) Page 10 of 17 each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds. CITY OF ____________________________ CALIFORNIA STATE DEPARTMENT OF TAX AND FEE ADMINISTRATION By By (Signature) Administrator John Kunkel (Typed Name) City Manager (Title)
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Attachment ‘B’
RESOLUTION NO. 19-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN AUTHORIZING THE EXAMINATION OF TRANSACTIONS (SALES) AND USE TAX RECORDS
WHEREAS, pursuant to Ordinance No. 18-09 of City of Kerman hereinafter called District and Section 7270 of the Revenue and Taxation Code, the District entered into a contract with the California Department of Tax and Fee Administration (CDTFA) to perform all functions incident to the administration and operation of the Transactions and Use Tax Ordinance; and WHEREAS, the District deems it desirable and necessary for authorized representatives of the District to examine confidential transactions and use tax records of the California Department of Tax and Fee Administration pertaining to transactions and use taxes collected by the Board for the District pursuant to that contract; and WHEREAS, Section 7056 of the Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of California Department of Tax and Fee Administration records and establishes criminal penalties for the unlawful disclosure of information contained in or derived from, the transactions and use tax records of the Board; NOW, THEREFORE IT IS RESOLVED AND ORDERED AS FOLLOWS: Section 1. That the City Manager, City Clerk and Finance Director or other officer or employee of the District designated in writing by the City Manager to the California Department of Tax and Fee Administration (hereafter referred to as the CDTFA) is hereby appointed to represent the District with authority to examine transactions and use tax records of the CDTFA pertaining to transactions and use taxes collected for the District by the CDTFA pursuant to the contract between the District and the CDTFA. The information obtained by examination of CDTFA records shall be used only for purposes related to the collection of the District’s transactions and use taxes by the CDTFA pursuant to the contract. Section 2. That “Avenu Insights and Analytics, LLC”] is hereby designated to examine the transactions and use tax records of the California Department of Tax and Fee Administration pertaining to transactions and use taxes collected for the District by the Board. The person or entity designated by this section meets all of the following conditions: a) has an existing contract with the District to examine those transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from those transactions and use tax
records only to the officer or employee authorized under Section 1 of this resolution to examine the information; c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
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d) is prohibited by that contract from retaining the information contained in, or derived from those transactions and use tax records after that contract has expired.
BE IT FURTHER RESOLVED that the information obtained by examination of Board records shall be used only for purposes related to the collection of District’s transactions and use taxes by the Board pursuant to the contracts between the District and Board. The foregoing resolution was adopted at a regular meeting of the City Council of the City of Kerman held on the 16th day of January 2019, and passed at said meeting by the following vote:
AYES: NOES: ABSENT:
ABSTAIN: The foregoing resolution is hereby approved. ______________________________ Rhonda Armstrong Mayor ATTEST: _______________________________ Marci Reyes City Clerk
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Attachment ‘C’
RESOLUTION NO. 19-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN FIRST AMENDMENT TO CONTRACT BETWEEN CITY OF KERMAN AND AVENU
THIS FIRST AMENDMENT TO CONTRACT (the “Amendment”) is entered into between City of Kerman (“City”) and Avenu Insights & Analytics, LLC (“Consultant”) (“formerly known to as Municipal Resource Consultants and/or MuniServices”), (collectively the “Parties”).
WHEREAS, the City and Municipal Resource Consultants entered into a Consultant Services Agreement, on or about October 2, 1996 (hereinafter “Agreement”) to perform, among other things, Sales and Use Tax Audit Services; and
WHEREAS, Municipal Resources Consultants in now known as Avenu Insights & Analytics, LLC; and
WHEREAS, on or about November 6, 2018, the City adopted Measure M 1% District Tax to support the City’s General Fund, which will become effective on or about April 1, 2019 (the “District Tax”);
WHEREAS, the California Department of Tax and Fee Administration (formerly State Board of Equalization) (“CDTFA”) has taken the position that general references to “sales/transaction and use tax” are insufficient to allow access to information relating the collection of the District Tax by the CDTFA;
WHEREAS, section 7056 of the California Revenue and Taxation Code imposes conditions on the access
to information related to the collection of sales, transaction, and use tax by the CDTFA;
NOW THEREFORE, in order to satisfy the requirements of section 7056, the Parties hereby amend the Agreement as follows:
1. The following language is incorporated into Exhibit B of the Consultant Services Agreement as if set forth therein.
Transaction/Sales and Use Tax “Consultant qualifies under Section 7056 of the Revenue and Taxation Code to review (Bradley‐Burns) confidential taxpayer information and documentation before the California Department of Tax and Fee Administration (CDTFA). Consultant is hereby authorized by this Agreement to examine transaction tax, sales tax and use tax records of the CDTFA, including but not limited to the transaction and use tax that becomes effective on or about April 1, 2019 known as the City of Kerman Measure M 1% District Tax pertaining to the ascertainment of those sales or transactions and use taxes to be collected for the City.
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Consultant is required to disclose information contained in, or derived from, those transaction, sales and use tax records only to an officer or employee of the City who is authorized by resolution to examine the information.
Consultant is prohibited from performing consulting services for a retailer during the term of this Agreement.
Consultant is prohibited from retaining the information contained in, or derived from, those transaction, sales and use tax records, after this Agreement has expired.”
2. The City and Consultant agree that although the scope of work generically refers to “sales and use tax” those
references are meant to include “sales, transaction, and use tax” as part of the scope of work, including but not limited to any transaction and use taxes adopted after the effective date of the Agreement.
3. The Parties agree that Agreement is applicable to all Sales, Transaction and Use Tax Ordinances currently enacted in the City and which may become enacted while the Agreement is in effect.
4. The Parties agree that the City will adopt an updated resolution in substantially the same form as the sample
provided as Exhibit A to this Amendment.
5. Except as herein modified, all other provisions of the Agreement, including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
6. In case of a conflict between the terms of this Amendment and the terms of the Contract, the terms of this
Amendment shall strictly prevail.
7. Except as expressly modified by this Amendment No. 1, the Agreement and the rights, duties, and obligations of the Parties thereunder are unchanged and remain in full force and effect as originally written. From and after the terms and conditions of the execution of this Amendment No. 1, all references in the “Agreement” shall be deemed as references to the Agreement as modified by this Amendment No. 1.
8. Upon execution by both parties, this Amendment No. 1 shall be effective immediately.
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IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their duly authorized representatives as of the date set forth below.
DATED: January 2, 2019 CITY OF KERMAN AVENU INSIGHTS & ANALYTICS LLC By: _______________________ By: _________________________ Dough Jensen Name: ______________________ Senior Vice President Title: _______________________
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Exhibit ‘A’
RESOLUTION NO. 19-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN AUTHORIZING THE EXAMINATION OF TRANSACTIONS (SALES) AND USE TAX RECORDS
WHEREAS, pursuant to Ordinance No. 18-09 of City of Kerman hereinafter called District and Section 7270 of the Revenue and Taxation Code, the District entered into a contract with the California Department of Tax and Fee Administration (CDTFA) to perform all functions incident to the administration and operation of the Transactions and Use Tax Ordinance; and WHEREAS, the District deems it desirable and necessary for authorized representatives of the District to examine confidential transactions and use tax records of the California Department of Tax and Fee Administration pertaining to transactions and use taxes collected by the Board for the District pursuant to that contract; and WHEREAS, Section 7056 of the Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of California Department of Tax and Fee Administration records and establishes criminal penalties for the unlawful disclosure of information contained in or derived from, the transactions and use tax records of the Board; NOW, THEREFORE IT IS RESOLVED AND ORDERED AS FOLLOWS: Section 1. That the City Manager, City Clerk and Finance Director or other officer or employee of the District designated in writing by the City Manager to the California Department of Tax and Fee Administration (hereafter referred to as the CDTFA) is hereby appointed to represent the District with authority to examine transactions and use tax records of the CDTFA pertaining to transactions and use taxes collected for the District by the CDTFA pursuant to the contract between the District and the CDTFA. The information obtained by examination of CDTFA records shall be used only for purposes related to the collection of the District’s transactions and use taxes by the CDTFA pursuant to the contract. Section 2. That “Avenu Insights and Analytics, LLC”] is hereby designated to examine the transactions and use tax records of the California Department of Tax and Fee Administration pertaining to transactions and use taxes collected for the District by the Board. The person or entity designated by this section meets all of the following conditions: a) has an existing contract with the District to examine those transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from those transactions and use tax
records only to the officer or employee authorized under Section 1 of this resolution to examine the information; c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
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d) is prohibited by that contract from retaining the information contained in, or derived from those transactions and use tax records after that contract has expired.
BE IT FURTHER RESOLVED that the information obtained by examination of Board records shall be used only for purposes related to the collection of District’s transactions and use taxes by the Board pursuant to the contracts between the District and Board. The foregoing resolution was adopted at a regular meeting of the City Council of the City of Kerman held on the 16th day of January 2019, and passed at said meeting by the following vote:
AYES: NOES: ABSENT:
ABSTAIN: The foregoing resolution is hereby approved. ______________________________ Rhonda Armstrong Mayor ATTEST: _______________________________ Marci Reyes City Clerk
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City of Kerman “Where Community Comes First”
MAYOR MAYOR PRO-TEM Rhonda Armstrong Gary Yep COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER Raj Dhaliwal Ismael Herrera Espi Sandoval
DEPARTMENT: FINANCE STAFF REPORT
CITY COUNCIL MEETING COUNCIL MEETING DATE: JANUARY 16, 2019
To: Mayor and City Council From: Carolina Camacho, Finance Director Subject: Vehicle and Equipment Surplus Sale
RECOMMENDATION Council approve the declaration of the vehicles and equipment referenced in the attachment A as surplus property and authorize the surplus sale.
EXECUTIVE SUMMARY The City’s Purchasing Policy defines Surplus Property as the city property that is no longer needed or useable by a department of the city and specify the method of disposition of this property according to the best interest of the city. The recomended method for these items (vehicles and PW equipment) is a negotiated surplus sale where all the property for sale is offered “as is” and “where is”, with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability of the property. The last susrplus sale in the city was done in 2014, since then the vehicles and equipment no longer in use have been stored at the public works yard occupying necessary space to perform the daily operations. Today, staff is recomending the sale of the surplus property due to the need of the space used for storage and recover any salvage value from them. OUTSTANDING ISSUES After Council approval and authorization of the surplus property sale, the steps below are required to follow:
• Invite the public bids by a notice of sale describing the items to be sold along with where the items may be inspected. This notice shall be posted in three public places at least four weeks prior to the bid opening and published at least twice in a paper of local circulation.
• In the event no bids or no acceptable bids are received it is required to repeat the publication of the notice. • If a second bid period does not obtain any acceptable bids then the property may be sold without any public
biding to any eligible party paying a fair price
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City Council Staff Report Page 2 of 3 Vehicle and Equipment Surplus Sale FISCAL IMPACT Revenue increase with an estimated value of $25,050 for Budget FY 18-19 PUBLIC HEARING None. Attachments:
A. Surplus Schedule
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City Council Staff Report Page 3 of 3 Vehicle and Equipment Surplus Sale
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