ADMINISTRATIVE REPORT
MEETING DATE: March 26, 2025 AGENDA CATEGORY: Consent-Miscellaneous TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: March 4, 2025
SUBJECT: Roadway Improvements along Panama Lane and West of South Allen Road.
Appropriate $4,500,000 from the Buena Vista Water Storage District settlement funds to the Public Works Department Capital Improvement Budget within the Capital Outlay Fund for Roadway Improvements north of Panama Lane and/ or West of Allen Road (Ward 5)
RECOMMENDATION:
Staff recommends approval of appropriation.
BACKGROUND:
On November 6, 2024, the Buena Vista Water Storage District (BVWSD) and Rosedale -Rio Bravo Water Storage District (RRBWSD), herein known as the “Districts”, entered into a settlement agreement whereby BVWSD agreed to pay the City of Bakersfield $4,500,000 in exchange for the City’s dismissal of certain litigation in regard to the 2,070 -acre McAllister Ranch property owned by the Districts . The property located north of Panama Lane and West of South Allen Road is now known as the James Groundwater and Recovery Project. The dispute between the Districts and the City arose because the Districts’ plan to develop the property for water banking purposes. The parties decided to settle the lawsuit filed in the Kern County Courts. The agreement stipulated the funds were to offset costs necessary to extend South Allen Road on the eastern boundary of the McAllister Ranch Groundwater Banking Facility and improve Panama Lane along the southern boundary of the property.
This project will enable staff to evaluate whether to use the funds to extend South Allen Road farther south to Panama Lane and/or for widening the northside of Panama Lane along the frontage of McAlister Ranch. Neither of these improvements will serve any immediate congestion relief, although building these improvements now will not cost additional funds in the future. The City will benefit from constructing the roadway improvements at current costs rather than future costs, which tend to be higher due to inflation.
This item appropriates the funds from the settlement into a Project in the current FY 2024 -2025 to improve the roadways of these areas. The design of this project should extend to FY 2025-2026, which could include land acquisition if needed. Construction is anticipated to be scheduled for FY 2026-2027.
FISCAL IMPACT:
This funding is through a settlement agreement with Buena Vista Water Storage District; therefore, there is no general fund impact associated with this appropriation.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
None