Finance, Economic Development and Jobs Committee
February 23, 2026

FINANCE, ECONOMIC DEVELOPMENT AND JOBS
AGENDA

SPECIAL MEETING

February 23, 2026, 12:00 p.m.

City Hall North Conference Room A
1600 Truxtun Avenue
Members
Larry Koman
Eric Arias
Andrae Gonzales

1. ROLL CALL

2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
b. Non-Agenda Item Public Statements

3. ADOPTION OF MINUTES
a. Adoption of November 10, 2025, regular meeting minutes Staff recommends adoption of minutes.

4. STAFF REPORT
a. Draft Annual Action Plan Budget for FY 2026-27
Receive and file.

Motion to move action plan to the full council
*1. PowerPoint Presentation
b. Mills Act - Historic Property Agreement Program
Committee review and referral.

Motion to move this forward to the Council
*1. PowerPoint Presentation

5. NEW BUSINESS
a. Proposed Rate Increase for Refuse and Recycling Structure Staff recommends that the item be referred to full Council to approve Prop 218 Notices, and for full rate adoption at the time the fiscal year (FY) 26/27 budget is considered.

Motion to move option 3 to Council and creating an additional option 4 to defer rate increase keeping cpi increase for year one and then rate increase for subsequent years.
*1. PowerPoint Presentation

6. COMMITTEE COMMENTS

7. ADJOURNMENT

1 FINANCE, ECONOMIC DEVELOPMENT AND JOBS

MINUTES

SPECIAL MEETING

November 10, 2025, 12:00 p.m.

City Hall North Conference Room A
1600 Truxtun Avenue

Members Present: Larry Koman, Andrae Gonzales

Members Absent: Eric Arias

City Staff Present: City Clerk Julie Drimakis
Economic Development Director Jennifer Byers
Deputy City Attorney Viridiana Gallardo-King
_____________________________________________________________________

1. ROLL CALL
Meeting was called to order at 12:00 p.m.

2. PUBLIC STATEMENTS
a. Agenda Item Public Statements
None.
b. Non-Agenda Item Public Statements
None.

3. ADOPTION OF MINUTES
a. September 22, 2025, Minutes
Moved by: Andrae Gonzales
Staff recommends adoption of minutes.

For (2): Larry Koman Andrae Gonzales
Absent (1): Eric Arias

Approved

2 4. STAFF REPORT

5. NEW BUSINESS
a. Overview of Mills Act Contract Program
and staff presentation
Cecelia Griego made staff comments and presented a PowerPoint presentation.

Councilmember Gonzales requested that item come before Council for consideration as soon as possible along with a full analysis of the full benefits over the ten years.

Moved by: Andrae Gonzales
Staff recommends to receive and file.

For (2): Larry Koman, and Andrae Gonzales
Absent (1): Eric Arias
Approved (2 to 0)

1. PowerPoint Presentation
b. Presentation of the Old Town Kern Vision Plan
Old Town Kern Vision Plan – Project Summary and Completion Update.

Jason Cater made staff comments and provided a PowerPoint presentation.

Moved by: Andrae Gonzales
Staff recommends the committee receive and file the presentation.

Approved

1. PowerPoint Presentation

6. COMMITTEE COMMENTS
Councilmember Gonzales requested a community forum. Also requested in light of the EOA program reduction of funding, can we have a Downtown business round table to provide honest feedback regarding working with the City in support of revitalization efforts.

7. ADJOURNMENT
meeting was adjourned at 1:09 p.m.

3 _________________________

LARRY KOMAN, CHAIR

_________________________

JULIE DRIMAKIS, CITY CLERK

ADMINISTRATIVE REPORT

MEETING DATE: February 23, 2026 AGENDA CATEGORY: Staff Report TO: Finance, Economic Development and Jobs Committee
FROM: Jennifer Byers, Economic and Community Development Director DATE: February 5, 2026
SUBJECT: Draft Annual Action Plan Budget for FY 2026-27

Overview of staff recommendations for the Draft Annual Action Plan Budget for FY 2026-27 HUD Federal Entitlement Funds

RECOMMENDATION:

Receive and file.

BACKGROUND:

The City of Bakersfield expects to receive about $7,119,787 each year from several HUD programs.

These programs include the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA).

The proposed budgets for the FY 2026–27 Entitlement Programs are shown separately in the table below for each program. The HOME budget includes an additional $80,000 in program income.

At the time this report was prepared, HUD had not released the official funding amounts for FY 2026–

27. However, it is expected that Congress will keep funding at the same level as the previous year. For this reason, the table below uses last year’s funding amounts to estimate the HUD funds available for all projects.

Federal Program Previous FY25-26 Allocation
Community Development Block Grant (CDBG) $4,054,795
Home Investment Partnership (HOME) $1,572,489.76*
Emergency Solutions Grant (ESG) $344,660
Housing Opportunities for Persons with AIDS (HOPWA) $1,147,842 Total $7,119,787
*Includes an additional $80,000 in program income for HOME Applications Received
Each year, the City releases a Notice of Funding Availability (NOFA) for the annual entitlement funds shown in the table above. The deadline to submit CDBG, HOME, and ESG applications for FY 2026–27 was December 12, 2025. The projects requested are designed to improve the quality of life and neighborhood infrastructure for low-income residents in the City of Bakersfield.

This year, the City received 17 applications from nonprofit and private organizations totaling $14,853,490.50. In addition, 7 applications were received from City departments (including administration) totaling $3,877,463.48. The total amount requested from both City and non-City applicants was $32,301,768.95. Details of all applications are provided in Attachment C.

Recommendation
In accordance with federal requirements, City staff carefully reviewed and evaluated all funding applications. Based on this review, staff prepared the recommended budgets included with this report for consideration by the Finance, Economic Development, and Jobs Committee. The FY 2026–27 HUD Action Plan is expected to be presented to the City Council on April 22, 2026. This will be the second year of the 2025–2030 Consolidated Plan.

Next Steps
In April 2026, the City Council will hold a public hearing as required by the U.S. Department of Housing and Urban Development under Title 24 CFR Part 91. The purpose of the hearing is to receive public input and consider approval of the FY 2026–27 Action Plan. The City will submit the final documents to HUD before the May 14, 2026 deadline. HUD may extend this deadline if the final entitlement amounts are not received before the public notice period.

Consolidated Plan Timeline
 February 2026: Draft Annual Action Plan presented to the Budget and Finance Committee  March–April 2026: 30-day public review and comment period  April 2026: Draft Action Plan presented to the City Council  Before May 14, 2026 (unless delayed by HUD): Action Plan submitted to HUD Based on this process, staff recommends that the Committee forward the reviewed funding allocations for the CDBG, HOME, ESG, and HOPWA programs, as shown in Attachments A and B, to the City Council for approval. Final approval would be subject to administrative adjustments once HUD provides the final funding amounts.

FISCAL IMPACT:

No Fiscal Impact

COUNCIL GOAL:

Economic Opportunity for All

ATTACHMENTS:

1. FY26-27 Recommended CDBG Budget

2. FY26-27 Recommended ESG/HOME/HOPWA Budget

3. Overview of Applications Received (Reference)

Description FY 26-27
Requested
FY 26-27 Staff
Recommended
FY 25-26
Funded
CDBG Entitlement (Based on FY 25-26 Allocation) 4,054,795.00 4,054,795.00 4,054,795.00 Program Income (Projected for FY 26-27) - - - Total Available Resources 4,054,795.00 4,054,795.00 4,054,795.00 Administration (not to exceed 20% or $810,959) 810,959.00 810,959.00 810,959.00 Total Admin and Debt Payment 810,959.00 810,959.00 810,959.00 Total Resources minus Admin and Debt Payments 3,243,836.00 3,243,836.00 3,243,836.00 Fair Housing Program Services 100,000.00 100,000.00 100,000.00 Bakersfield Senior Center Support Services 150,000.00 90,000.00 90,000.00 Mercy House: (Admin) Homeless Prevention and Rapid Rehousing Program for BLNC 170,430.00 170,430.00 - Boost Upwards - Small Business Technical Assistance for Daycare Providers 400,000.00 - 100,000.00 Total Public Service Projects 820,430.00 360,430.00 290,001.00 Home Accessibility Improvement Program 262,838.25 262,838.25 63,835.00 Community House Repairs 60,000.00 60,000.00 - Oakdale Area Curb Gutter and Sidewalk 600,000.00 600,000.00 - Alta Vista Area Curb Gutter and Sidewalk 600,000.00 600,000.00 630,000.00 San Dimas Curb Gutter and Sidewalk 600,000.00 600,000.00 - Solared Powered Street Lights on S. King St. and East Potomac Ave. 282,106.75 282,106.75 - Solared Powered Street Lights on P Street 478,461.00 478,461.00 - CAPK Frienship House Modular Building* 645,344.00 - - Funded Last year:

Greater Bakersfield Legal Assistance ADA and Parking Lot Improvements - - 250,000.00 Alta Vista Area: Curb, Gutter, Sidewalk, Drainage, Accessibility Imprv. - - 630,000.00 East Truxtun Street Lighting Upgrades - - 630,000.00 Catholic Charities FoodBank Expansion - - 750,000.00 Total Public Facilities 3,528,750.00 2,883,406.00 2,953,835.00 Total Requests for Public Services +Public Facilities 4,349,180.00 3,243,836.00 3,243,836.00 Total Available Resources Remaining (1,105,344.00) - - *Funded through previous year's funds
CDBG BUDGET FY 2026-27

RESOURCES

ADMINISTRATION AND DEBT SERVICE
PUBLIC SERVICES (MAX. 15% or $608,219)

PUBLIC FACILITIES

HOME BUDGET FY 2026-27
HOME Entitlement 1,492,489.76 1,492,489.76 1,492,489.76 Program Income (Projected) 80,000.00 80,000.00 80,000.00 Total Available Resources 1,572,489.76 1,572,489.76 1,572,489.76 Administration (not to exceed 10%) 157,248.98 157,248.98 142,790.96 Total Resources minus Admin 1,415,240.78 1,415,240.78 1,429,698.80 CHDO Set Aside (15%) 235,873.46 235,873.46 223,873.46 Victory Family Services Acquisition of Transitional Housing 1,000,000.00 702,847.32 - Mercy House Tenant Based Rental Assistance RRH and Prevention 476,520.00 476,520.00 - Housing Authority Dulce Hogar PSH Rental Assistance 1,200,000.00 - - Cesar Chavez Foundation - Washington Potomac PSH - 59 units 9,999,474.00 - - Eye Street Apartments - - 1,205,825.34 Total (All Requests) 12,911,867.46 1,415,240.78 1,429,698.80 Total Available Resources Remaining (11,496,626.68) - 0.00 ESG BUDGET FY 2026-27
ESG Entitlement 344,660.00 344,660.00 344,660.00 Administration (not to exceed 7.5%) 25,849.00 25,849.50 25,849.00 Total Resources minus Admin 318,811.00 318,810.50 318,811.00 Flood Ministries - Street Outreach* 25,000.00 25,000.00 25,328.00 The Open Door Network - Shelter* 143,092.00 70,000.00 70,917.00 The Open Door Network - Rapid Rehousing 70,000.00 64,350.00 58,093.00 The Open Door Network - Homeless Prevention 70,000.00 64,460.50 58,093.00 The Mission at Kern County - Shelter* 97,500.00 70,000.00 70,920.00 The Open Door Network AAFV - Shelter 66,980.00 25,000.00 35,460.00 Be Finally Free 200,000.00 - - Clinica Sierra Vista 65,000.00 - - Total (All Requests) 737,572.00 318,810.50 318,811.00 Total Available Resources Remaining (418,761.00) - - HOPWA BUDGET FY 2026-27
HOPWA Entitlement 1,147,842.00 1,147,842.00 1,147,842.00 Administration (not to exceed 3%) 34,435.26 34,435.26 34,435.26 Total Resources minus Admin 1,113,406.74 1,113,406.74 1,113,406.74 Kern County Public Health 1,113,406.74 1,113,406.74 1,113,406.74 Total (All Requests) 1,113,406.74 1,113,406.74 1,113,406.74 Total Available Resources Remaining - - -

RESOURCES

ADMINISTRATION AND DEBT SERVICE

HOPWA SPONSOR/PROVIDER

ADMINISTRATION

PROJECTS
Description FY 26-27
Requested
FY 26-27
Recommended
FY 25-26
Funded
Description FY 26-27
Requested
FY 26-27
Recommended
FY 25-26
Funded

RESOURCES

PROJECTS
Description FY 26-27
Requested
FY 26-27
Recommended
FY 25-26
Funded

RESOURCES

ADMINISTRATION AND DEBT SERVICE

Attachment C

Overall HUD Project Applications for FY 2026-27 Funding

FY 2026-27 Community Development Block Grant Applications (CDBG)- Non-City Public Services & Facilities HUD
Category Applicant Ward Proposal Amount
Requested
FY 25-26
Funded
HUD
Eligible
Staff
Rating
CD Recommendation
and Notes
Recommended
Funding
Public
Services TBD All Fair Housing Services in
the City of Bakersfield $100,000 $100,000 Yes 30
Staff recommends
approval. This is a
required service by
HUD.
$100,000
Public
Services
Bakersfield
Senior
Center
Ward 1
Senior Services at the
Bakersfield Senior
Center.
$150,000 $90,000 Yes 30 Staff recommends
approval.
$90,000
Public
Services
Mercy
House All
Administration for
Homeless Prevention
and Rapid Rehousing
Program
$170,430 $0 Yes 28 Staff recommends
approval.
$170,430
Technical
Assistance to
Small
Businesses
Upwards,
Boost
Program
All
Online technical
assistance to daycare
providers.
$400,000 $100,000 Yes 27
Staff does not
recommend approval
at this time.
$0
Public
Facilities
CAPK
Friendship
House
Ward 1
Purchase and
installation of modular
building to be used as
community classroom
$645,344 $0 Yes 28
Staff recommend
approval of funding
from FY 25-26.
$645,344 from
FY 25-26*
Non-City Public Services and Facilities Requested: $1,465,774 Recommended FY 26-27 Funding: $360,430

FY 2026-27 Community Development Block Grant Applications (CDBG) – City Departments HUD Category Applicant Ward Proposal Amount
Requested
FY 25-26
Funded
HUD
Eligible
Staff
Rating
CD
Recommendation
and Notes
Recommended
Funding
Public Facilities
(Priority 1) Public Works Ward 3 Alta Vista Area Curb,
Gutter and Sidewalk $600,000 $600,000 Yes 26 Staff recommends approval.
$600,000
Public Facilities
(Priority 2) Public Works Ward 2 Oakdale Area Curb,
Gutter and Sidewalk $600,000 $0 Yes 28 Staff recommends approval.
$600,000
Public Facilities
(Priority 3)
Public Works Ward 3

San Dimas Area
Curb, Gutter and
Sidewalk
$600,000 $0 Yes 28
Staff recommends
approval.
$600,000
Public Facilities
(Priority 2) Public Works Ward 2
Solar Powered
Street Lights on S.

King Street and East
Potomac Avenue
$282,107 $0 Yes 28 Staff recommends
approval.
$282,107
Public Facilities
(Priority 1) Public Works Ward 2
Solar Powered
Street Lights on P
Street
$478,461 $0 Yes 28 Staff recommends
approval.
$478,461
Public Facilities
Department of
Recreation and
Parks
Ward 2
Community House
Repairs – ADA
improvements
$60,000 $0 Yes 26 Staff recommends
approval.
$60,000
Rehab:

Accessibility
Improvements
Economic and
Community
Development
All
Home Accessibility
Improvement
Program
$262,838 $63,835 Yes 27 Staff recommends
approval.
$262,838
Capital Improvement Projects Requested: $2,883,406 Recommended FY 26-27 Funding: $2,883,406 CDBG Admin (20%) = $810,959

FY 2026-27 Home Investment Partnerships (HOME) Applications HUD Category Applicant Ward Proposal Amount
Requested
FY 25-26
Funded
HUD
Eligible
Staff
Rating
CD Recommendation and
Notes
Recommended
Funding
CHDO Set Aside
Required set-
aside. No
applicants
applied.

All
Set Aside Fund
for Community
Housing
Develop.Org.
$235,873.46 235,873.46 Yes n/a Staff recommends
approval.
$235,873.46
Affordable
Housing/Transitional
Housing
Victory
Family
Services
Ward 2
Purchase
current property
being leased for
transitional
foster youth
program (16
units).
$1,000,000 0 Yes 27 Staff recommends
approval.
$702,847.32
Affordable Housing Mercy House All
Homeless
Prevention and
Rapid Rehousing
Program
focused on BLNC
$476,520 0 Yes 28 Staff recommends
approval.
$476,520
Affordable Housing Housing
Authority All
Dulce Hogar PSH
Rental
Assistance
$1,200,000 0 Yes 28
Staff does not
recommend approval at
this time.
$0
Affordable Housing Cesar Chavez
Foundation
In
County.

Right
outside
Ward 2
Construction of
59 affordable
housing units at
Washington and
Potomac.
$9,999,474 0 Yes 22
Staff does not
recommend approval at
this time.
$0
HOME Requested: $12,675,994 Recommended FY 26-27 Funding: $1,415,240.78 HOME Admin (10%) = $157,248.98

FY 2026-27 Emergency Solutions Grant (ESG) APPLICATIONS HUD
Category Applicant Ward Proposal Total Cost FY 25-26
Funded
HUD
Eligible
Staff
Rating
CD Recommendation and
Notes
Recommended
Funding
Emergency
Shelter
Alliance
Against Family
Violence
All
Operating expenses
for emergency
shelter
$66,980 $35,000 Yes 29 Staff recommends approval $25,000 Homeless
Prevention
Open Door
Network All
Expenses to house
families and
individuals at risk of
eviction
$70,000 $57,340 Yes 28 Staff recommends approval $64,460.50 Rapid
Rehousing
Open Door
Network All
Expenses to house
homeless families
and individuals.
$70,000 $57,340 Yes 28 Staff recommends approval $64,350 Emergency
Shelter
Open Door
Network All
Operating expenses
for emergency
shelter
$143,092 $70,000 Yes 29 Staff recommends approval $70,000 Emergency
Shelter
The Mission
at Kern
County
All
Operating expenses
for emergency
shelter
$97,500 $70,000 Yes 29 Staff recommends approval $70,000 Outreach Flood
Ministries All
Expenses to operate
outreach efforts to
homeless persons.
$25,000 $25,000 Yes 28 Staff recommends approval $25,000 Outreach Be Finally
Free All
Expenses to operate
outreach efforts to
homeless persons.
$200,000 $0 Yes 26 Staff does not recommend
approval at this time. $0
Medical
Outreach
Clinica Sierra
Vista All
Operations for
Medical Outreach
Team
$65,000 $0 Yes 29 Staff does not recommend
approval at this time. $0
ESG Requested: $737,572 Recommended Funding: $318,810.50 ESG Admin (7.5%) = $25,849.50

FY 26–27 HUD Action Plan: Staff RecommendationsStaff-recommended projects for CDBG, HOME, ESG, and HOPWA February 23, 2026

What Committee Is Being Asked to Do
Review staff funding recommendations for FY 26-27 Action Plan Provide direction
Authorize Draft Action Plan Budget to take to full Council

Why the HUD Action Plan Matters
Supports affordable housing
Addresses homelessness
Improves neighborhood infrastructure
Funds essential community services

How Projects Were Selected
Competitive application process
HUD eligibility and compliance review
Alignment with Consolidated Plan goals
Readiness and community impact

Anticipated FY 26–27 HUD FundingCommunity Development Block Grant: $4.05MHOME Investment Partnership: $1.57MHousing Opportunities for Persons with HIV/AIDS: $1.15MEmergency Solutions Grant: $344,660$7.1MEstimatedAll amounts are estimated based on FY 25-26 Allocations.Page 18 of 108 How the Funds Are Prioritized

HOUSING STABILITY & HOMELESSNESS RESPONSE

NEIGHBORHOOD INFRASTRUCTURE IMPROVEMENTS

ESSENTIAL COMMUNITY SERVICES

Community Development Block Grants (CDBG) $4.05M

CDBG Applications ReceivedCity ApplicantsNon-City Applicants$600,000Alta Vista Curb, Gutter and Sidewalk Improvements$100,000GBLA Fair Housing Services$600,000San Dimas Curb, Gutter and Sidewalk Improvements$150,000Bakersfield Senior Center Services$600,000Oakdale Curb, Gutter and Sidewalk Improvements$400,000Upwards Small Business Technical Assistance-Daycare$282,106Solar Powered Street Lights – S. King St. and East Potomac Ave. $170,430Mercy House TBRA - Administration$478,461Solar Powered Street Lights – P Street$645,344CAPK Friendship House Modular Building$60,000Community House Repairs – ADA Curb Cuts$262,838Home Accessibility Improvement ProgramPage 21 of 108 CDBG Projects Recommended for FundingCity ApplicantsNon-City Applicants$600,000Alta Vista Curb, Gutter and Sidewalk Improvements$100,000GBLA Fair Housing Services$600,000San Dimas Curb, Gutter and Sidewalk Improvements$100,000Bakersfield Senior Center Services$600,000Oakdale Curb, Gutter and Sidewalk Improvements$0Upwards Small Business Technical Assistance-Daycare$282,106Solar Powered Street Lights – S. King St. and East Potomac Ave. $170,430Mercy House TBRA - Administration$478,461Solar Powered Street Lights – P Street$0*CAPK Friendship House Modular Building *$60,000Community House Repairs – ADA Curb Cuts$262,838Home Accessibility Improvement ProgramPage 22 of 108 CDBG Public Facility Project
$60,000Community House Repairs ADA Curb Cuts

CDBG Lighting Project #1
Solar Lighting Upgrades on P Street from California Avenue to Brundage Lane $478,461P Street Solar Powered Street Lights

CDBG Lighting Project #2
$282,106S. King St/ E. Potomac Ave Solar Powered Street Lights

Alta Vista Curb, Gutter, Sidewalk Project Union Ave to Alta Vista Dr. and Niles St to Bernard St $600,000Alta Vista Curb, Gutter and Sidewalk Improvements

San Dimas Curb, Gutter, Sidewalk ProjectFrom Chester Ave to Union Ave and W. Columbus St to Espee St $600,000San Dimas Curb, Gutter and Sidewalk Improvements

$600,000Oakdale Curb, Gutter and Sidewalk Improvements
Oakdale Curb, Gutter, Sidewalk ProjectFrom Garnsey Ave to Oak St and Palm St to Brundage Ln$600,000Oakdale Curb, Gutter and Sidewalk Improvements

Partnerships with Non-Profit Organizations
$100,000Senior Services$100,000Fair Housing Services$170,430Rental Assistance Administration

Expanded Programming Home Accessibility Improvement Program $262,838Home Accessibility Improvement Program •Funded through CDBG•Administered by a contractor•Increased grant amounts•Help meet need outlined in Housing Element

HOME Program - $1.57M Housing Stability$476,520Mercy House Rental Assistance $702,847Victory Family Services Acquisition of Transitional Housing New program to assist eligible clients, including Brundage Lane Navigation Center participants, with rental assistance and connect them to Permanent Supportive Housing.Assistance to Victory Family Services to acquire currently leased building to create sustainable transitional housing for foster youth.

Emergency Solutions Grant - $344,660Homeless Assistance Programs $25,000Flood Outreach $70,000Open Door Network Shelter Operations$70,000Mission at Kern Co. Shelter Operations $25,000AAFVSA Shelter Operations$64,350Open Door Rapid Rehousing$64,350Open Door Homeless Prevention

Timeline & ImplementationFebruary 23, 2026Finance, Economic Development and Jobs Committee MeetingMarch 2, 2026Draft Action Plan CompleteMarch 6 - April 5Action Plan Public Notice PeriodMarch 19, 2026Community MeetingApril 22, 2026Public Hearing before City Council May 14, 2026* Action Plan due to HUD

Discussion and Direction
Provide direction
Authorize taking Draft Action Plan Budget to full City Council Allow minor technical adjustments due to final HUD Allocations

CDBG Curb, Gutter, Sidewalk Projects 2018-2025

East California Curb, Gutter and Sidewalk Projects: 2018

Old Town Kern Curb, Gutter and Sidewalk Projects: 2018, 2019

Oleander Curb, Gutter and Sidewalk Projects: 2018, 2019, 2020, 2022, 2024

East Truxtun Curb, Gutter and Sidewalk Projects: 2020, 2021, 2024

Alta Vista Curb, Gutter and Sidewalk Projects: 2023,2024

Castro/Benton Curb, Gutter and Sidewalk Projects: 2019, 2020, 2021 Madison Area Curb, Gutter and Sidewalk Projects: 2020, 2021, 2022

Wilson Curb, Gutter and Sidewalk Projects: 2018 La France Curb, Gutter and Sidewalk Projects: 2018

East Terrace Curb, Gutter and Sidewalk Projects: 2018

All Curb, Gutter and Sidewalk Projects 2018-2024

ADMINISTRATIVE REPORT

MEETING DATE: February 23, 2026 AGENDA CATEGORY: Staff Report TO: Finance, Economic Development and Jobs Committee
FROM: Jennifer M. Byers, Economic & Community Development Director DATE: February 10, 2026
SUBJECT: Mills Act – Historic Property Agreement Program

Draft Ordinance and Resolution to Establish a Historic Property Agreement Program per the Mills Act.

RECOMMENDATION:

Committee review and referral.

BACKGROUND: Enacted in 1972, the Mills Act legislation grants participating local governments the authority to enter agreements with owners of “qualified historic properties” who actively participate in the restoration and maintenance of their historic properties while receiving property tax relief. Mills Act Agreements are for 10 years initially with automatic yearly extensions a nd stay with the property when transferred. Subsequent owners are bound by the agreement and have the same rights and obligations as the original owner who entered the agreement.

A “qualified historical property” is
 privately owned property, not exempt from property taxation  listed in the National Register of Historic Places or located in a registered historic district.  listed in any state, city, or county, official register of historical or architecturally significant sites, places, or landmarks.

Terms of the Agreement: The agreement shall conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the United States Secretary of the Interior’s Standards for Rehabilitation, and the State Historical Building Code. The term of the agreement shall be for a minimum period of 10 years. After first 10 years, a year shall be added annually to term of the agreement unless notice of nonrenewal is given. If a agreement is canceled, the owner shall pay a cancellation fee equal to 12.5 percent of the current fair market value of the property, as determined by the county assessor. There shall be inspection of the premises by the city prior to a new agreement, and every five years thereafter, to determine the owner’s compliance with the agreement.

Reassessment: The Mills Act lowers the assessed value of a property, which in turn reduces the amount of property tax owed, but only for the portion of the tax based on that assessed value. Under a Mills Act agreement, the property's assessed value is determined using an income approach rather than the standard market approach, which can result in a lower value and therefore lower property taxes. Mills Act only reduces the 1% General Levy Tax, not special assessments.

Example: If a property's assessed value is $100,00 0, the 1% General Levy Tax would be $1,000. Under a Mills Act agreement, the assessed value might be reduced to $67,200, resulting in a tax of $672 (1% of $67,200). The savings vary from property to property and can range from 20% to 70% based on the County Tax Assessor's property valuations.

Who benefits from a Mills Act Agreement Program?
City
The Mills Act allows the city to design preservation
programs to accommodate:
 specific community needs and priorities
for rehabilitating entire neighborhoods
 encouraging seismic safety programs
 contributing to affordable housing
 promoting heritage tourism
 fostering pride of ownership
Local governments recognize the economic
benefits of conserving resources and reinvestment
as well as the important role historic preservation
can play in revitalizing older areas, creating cultural tourism, building civic pride, and retaining the
sense of place and continuity with the
community’s past.

Historic Property Owners
Owners of historic buildings may qualify for
property t ax relief to rehabilitate and maintain
the historical and architectural character of their
properties for at least a ten-year period.

The Mills Act program is especially beneficial for
recent buyers of historic properties and for
current owners of historic buildings who have
made major improvements to their properties.

May realize substantial property tax savings each
year because valua tions of properties under a
Mills Act agreement are determined by the
Income Approach to Value rather than by the
standard Market Approach to Value.

Updated Cultural Resource Survey: This preliminary step of completing updated surveys was necessary to help the City identify properties that meet the criteria for cultural resource designation. The city had not completed a survey since the mid -1980s, and many structures built before 1975 need ed to be surveyed. Much of the city’s-built environment happened after the destructive earthquakes in the early 1950s and many of those structures have never been surveyed. Of the 6,189 parcels in the survey area, 4,885 were built before 1975. The survey identified 501 properties that are potentially eligible individual properties or within potential historic districts.

Fiscal Impact: There are currently 20 properties that are designated and could apply for a Mills Act agreement; depending on reassessments, a 10-year property tax savings for all 20 properties could range between $62,000-$147,000, which would result in lost city revenues between $56,000 - $132,000. Of all potentially eligible properties there is an assessed land value of $254,404,465 with a general tax levy of $2,544,045. If all eligible surveyed sites became designated and then were approved for a Mills Act agreement, the total 10 -year tax savings could range from $930,000 to $2.2 million. This would be a potential 10-year revenue loss of $840,000 to $1.9 million. Note that each Mills Act property is reassessed each year based on income.

Proposed Mills Act Agreement Program: Only properties that are eligible as described above will be considered for historic property preservation agreements. Properties that are not designated may be considered if a nomination for designation is submitted before or concurrently with a Mills Act application and recorded with County Recorder before December 31st.

Every executed agreement must include a Rehabilitation/Restoration/Maintenance Plan and Timeline of future work to be completed. This plan is an extremely important component of the application as it is used to determine the need and to establish a nexus between tax savings and historic preservation by contractually requiring the property owner to complete the agreed-upon work program.

Historic property agreement applications will be considered through a competitive selection process.

Application criteria will include:

1. The project will require financial incentives in addition to any mortgage financing, private capital or public loans to help ensure the preservation of the structure.

2. The project will result in additional private investment in the building other than for routine maintenance that may include seismic retrofitting, substantial repair or rehabilitation work.

3. The project will support substantial reinvestment in a historic resource and/or rehabilitation of a historic building or structure in areas where the city is concentrating resources on façade improvements, home rehabilitation, or similar revitalization efforts.

4. The project s ubstantially contributes to the preservation of a historic resource threatened by deterioration, abandonment, or conflicting regulations.

5. The project enhances opportunities for maintaining and/or facilitate preservation and maintenance of a property in cases of economic hardship.

6. One bonus point may be issued for a agreement that will support extensive publicly visible rehabilitation projects, such as restorati on from non -contributing to contributing status, the removal of inappropriate publicly visible additions, restoration of altered or missing character - defining features, such as infilled openings, or missing features. Applicants must submit additional information in their applications to justify issuance of a bonus point.

7. Properties with outstanding/unresolved Code violations will not be selected unless and until the violations are resolved.

City staff will work with the owner during the review process to m odify the work program as may be necessary to meet the City’s historic preservation goals and ensure proper preservation of the historic resource. After inspection, a list of deficient, non -compliant items will be sent to owner, to draft a preservation plan to correct those items. Applications may be denied if the owner does not agree to complete projects required by City staff. The application should include all necessary financially feasible projects the owner expects to perform over a minimum 10 -year period. The table below outlines the application review and approval process:

January Annual Mills Act Agreement Program Workshop
May Application Due
June Staff will review for eligibility and conduct inspection of property, if eligible.

July The Historic Preservation Commission will review the applications using the program criteria; may recommend, not recommend, or forward without recommendation, to City Council.

August Staff will prepare final agreement and attachments for City Council consideration.

September In-person appointment with owner(s) to review and notarize final agreement.

October To City Council for approval, may also modify or deny the agreement.

November Record Agreement

After City Council recording of the agreement, staff will transmit the agreement and the documentation of description of the property to the Kern County Assessor. agreements that are recorded by December 31 are typically reassessed by June 30 of the following year. The County Assessor calculates the property values under the Mills Act program as described above.

Upon execution of a Historic Property Agreement, all agreed-upon projects must be completed by the end of the year established in the final work plan. Annual self -certification of completion of work, along with documentation (permits, agreement or invoices, before and after photographs, etc.) and/or inspections will be required to ensure required work is completed. Upon sale of the property, documentation of completed work should be provided to the new owner. A physical inspection of the property will be done every five years.

Due to the significant staff time to review applications, perform inspections, hold workshops, attend meetings with applicants, prepare reports for Historic Preservation and City Council a service fee will be charged for each application and five-year inspections conducted after initial 10 years.

Recommendation: Refer draft Mills Act ordinance and resolution establishing the application process, including fee authority for the implementation of the Bakersfield Mills Act Agreement Program to the City Council.

FISCAL IMPACT:

If approved by City Council, reduced Property Tax revenues would impact the General Fund.

COUNCIL GOAL:

Community Character & Quality of Life

ATTACHMENTS:

1. Proposed amendments to BMC Chapter 15.72 – Historic Preservation

2. Draft City Council Resolution to establish Mills Act Program

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 1 of 10 ORDINANCE NO. ________________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD, CALIFORNIA, AMENDING CHAPTER 15.72

OF THE BAKERSFIELD MUNICIPAL CODE, BY AMENDING
SECTIONS 15.72.020, 15.72.040, 15.72.110, 15.72.120 AND ADDING SECTIONS 15.72.220, 15.72.230 AND 15.72.240

TO ESTABLISH THE BAKERSFIELD HISTORIC PROPERTY

PRESERVATION AGREEMENT PROGRAM (MILLS ACT) AS

AN INCENTIVE TO PRESERVE QUALIFIED HISTORICAL
PROPERTIES IN THE CITY.

WHEREAS, the City of Bakersfield is dedicated to preserving historic resources within the City and has a robust historic preservation ordinance in place in Chapter 15.72 of the Bakersfield Municipal Code; and

WHEREAS, the City Council has determined that it would be in the public interest to provide fiscally prudent economic incentives for property owners to preserve and restore Qualified Historical Properties in the City; and

WHEREAS, California Government Code Sections 50280, et seq., more commonly known as the Mills Act, is California’s principal economic incentive program for the preservation and restoration of qualified historical buildings; and

WHEREAS, through the Mills Act, cities and counties may enter into agreements with owners of qualified historic properties to abide by reasonable preservation requirements in exchange for property tax relief; and

WHEREAS, this Ordinance is intended to put in place the authority for the City and the owners of qualified historical properties to enter into Historic Property Preservation Agreements, commonly known as Mills Act Agreements.

NOW, THEREFOR E, BE IT ORDAINED by the City Council of the City of Bakersfield as follows:

SECTION 1.

Chapter 15.72, Section 15.72.020 of the Bakersfield Municipa l Code is hereby amended as follows:

When used in this chapter, the following words shall have the meanings specified in this section, unless a different meaning clearly appears from the context:

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 2 of 10 A. “Alteration” means any change or modification, through public or private action, of any designated cultural resource or property within a designated historic district which requires a permit from the city.

B. “Area of historic interest” means geographic areas, places, structures, buildings, improvements, sites or objects within the city which have distinctive character or special historic, aesthetic, architectural, cultural interest or value.

Area of historic i nterest can also mean a single location such as a place, structure, building, improvement, site or object within the city, which has distinctive character or special historic, aesthetic, architectural, cultural interest or value.

C. “Designated area of historic interest” is an area of historic interest as defined above that has been designated by the commission.

D. “Bakersfield register of historic places” means the official city list of designated cultural resources, historic districts, and areas of historic interest.

E. “Commission” means the Bakersfield historic preservation commission.

F. “Cultural resource” means on site improvements, buildings, structures, signs, features (including significant trees or other landscaping), places, place names, interior architecture features, landmark sites, historic sites, areas (including significant tre es or other landscaping located thereon) or other objects of scientific, archaeological, aesthetic, educational, cultural, architectural or historical significance to the citizens of the city.

G. “Designated cultural resource” means a cultural resource that has been approved by the commission and designated by the city council.

H. “Exterior architectural feature” means an architectural element embodying style, design, general arrangement and components of all of the outer surfaces of an improvement, building or structure, including but not limited to the kind, color and texture of t he building materials and the type and style of all windows, doors, lights, signs and other fixtures appurtenant to such improvement, building or structure.

I. “Historic district” means any geographically definable urban or rural, small or large area containing buildings, structures, sites and objects linked historically through location, design, setting, materials, workmanship, and/or

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 3 of 10 association. The significance of a district is the product of the sense of time and place in history that individual components collectively convey. This significance may relate to developments during one period or through several periods in history.

J. “Designated historic district” means a historic district, as defined in subsection I of this section, that has been approved by the commission and designated by the city council.

K. “Historic site” means any parcel or portion of real property which has special character or special historical, cultural, archaeological, architectural, community or aesthetic value.

L. “Landmark site” means any site or improvement, manmade or natural, which has special historical, cultural, architectural, archaeological, community, or aesthetic character, interest, or value as part of the development, heritage or history of the city, the state of California or the nation.

M. “National Register of Historic Places” means a national list of districts, sites, buildings, structures and objects of local, state or national importance that are significant for their historical, architectural, archaeological or cultural values.

Properties less than fifty years old ordinarily are not eligible for the Register unless they are of exceptional importance. The Register is administered by the Keeper of the National Register, U.S. Department of the Interior, and is the nation’s official list of cultural resources worthy of preservation.

N. “Object” means a material thing or functional, aesthetic, cultural, symbolic, or scientific value, usually by design or nature movable.

O. “Preservation” means the act or process of applying measures to sustain the existing form, integrity, and material of a building or structure, and the existing form and/or vegetative cover of a site. It may include initial stabilization work, where necessary, as well as ongoing maintenance.

P. “Preservation plan” means a list of the proposed restrictions, height and area regulations, minimum dwelling size, floor area, sign regulations, parking regulations, and any other proposed modification to existing development standards appropriate to the proposed historic district.

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 4 of 10 Q. “Property owner” or “owner of property” or “owners of property” means the person or persons shown as the record owner(s), as determined by a title search, of the property proposed to be designated as a cultural resource. As to property to be included in a historic district and as to owners of property to be notified of any hearing as to property other than their own, “property owners” means owners as shown on the latest equalized assessment roll of the county of Kern.

R. “Protection” means the act or process of applying measures designated to affect the physical condition of a property by protecting or guarding it from deterioration, loss or attack, or to cover or shield the property from danger or injury. In the case of b uildings and structures, such treatment is generally of a temporary nature and anticipates future historic preservation treatment; in the case of archaeological and paleontological sites, the protective measure may be temporary or permanent.

S. "Qualified Historical Property" shall have the meaning set forth in Government Code Section 50280.1, as may be amended from time to time, except that statutory references to city and county “ official registers of historical or architecturally significant sites, places, or landmarks” shall refer only to such officially adopted registers for the City of Bakersfield.

S T. “Restoration” means the act or process of accurately returning the form and details of a property and its setting as it appeared at a particular period of time, or the removal of later work or the replacement of missing earlier work.

T U. “Stabilization” means the act or process of applying measures designed to reestablish a weather resistant enclosure and the structural stability of an unsafe or deteriorated property while maintaining the essential form as it exists at present.

U V. “State Office of Historic Preservation” means a division of the State Department of Parks and Recreation which serves as the staff for the State Historic Preservation Officer who is the official designated and appointed by the Governor to administer the historic preservation program in California.

SECTION 2.

Chapter 15.72, Section 15.72.040 of the Bakersfield Municipal Code is hereby amended as follows:

The commission shall have the following powers and duties:

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 5 of 10 A. Establish criteria and conduct or cause to be conducted a comprehensive survey of properties within the boundaries of the city, and publicize and periodically update survey results.

B. Adopt specific guidelines for the designation of cultural resources, including landmarks, landmark sites, and historic districts.

C. Maintain a local register of designated cultural resources, designated historic districts and designated areas of historic interest.

D. Review and correspond with the city council and city departments as to matters as they relate to the cultural resources of the community.

E. Assist in recommending prescriptive standards to be used by the council in reviewing applications for permits to alter, remove, preserve, protect, reconstruct, rehabilitate, restore or stabilize any designated cultural resource or historic district.

F. Recommend to the city council the purchase of fee or less -than-fee interests in property for purposes of cultural resource preservation and designation.

G. Investigate and report to the city council on the use of various federal, state, local, or private funding sources and mechanisms available to promote cultural resource preservation in the city.

H. Preserve, restore, maintain, and operate designated cultural resources and historic properties owned or controlled by the city.

I. Recommend for approval or disapproval, in whole or in part, applications for cultural resource, historic district, or area of historic interest designation pursuant to procedures set forth in this chapter.

J. Review and comment on applications for land use decisions as such applications may be referred to the commission by the planning commission or the city council. Comments and recommendations shall be forwarded to the referring body.

K. Cooperate with local, county, state and federal governments in the pursuit of the objectives of historic preservation.

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 6 of 10

L. Provide information, upon the request of the property owner, on the restoration, alteration, decoration, landscaping or maintenance of any cultural resource or property within a historic district or area of historic interest.

M. Participate in, promote, and conduct public information, educational, and interpretive programs pertaining to cultural resources, historic districts and areas of historic interest.

N. Perform any other functions that may be designated by the city council.

O. Meet at irregular intervals as determined by the city manager or his or her designee. All meetings shall be noticed and open to the public.

P. Quorum. Three members of the commission shall constitute a quorum for the transaction of business.

Q. Identify as early as possible conflicts between the preservation of cultural resources and alternative land uses and make recommendations to the appropriate legislative body.

R. Establish a procedure for the review of and comment on historic preservation certification applications for federal tax incentives for both designated cultural resources and designated historic districts.

S. Recommend for approval or disapproval, in whole or in part, applications for Historic Property Preservation Agreements , pursuant to the procedures and criteria set forth in this chapter or by resolution of the city c ouncil.

SECTION 3.

Chapter 15.72, Section 15.72.110 of the Bakersfield Municipal Code is retitled and amended as follows:

15.72.110 Commission action for a cultural resource , historic district, area of historic interest designation, and historic property preservation application.

A. Cultural Resource and Historic District. The commission shall review the staff reports, and consider the designation matter at a regular, adjourned or special meeting and shall either approve and recommend the designation as proposed or as altered, or shall recommend disapproval of it. A property shall

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 7 of 10 be recommended for designation as a cultural resource or for inclusion in a historic district only upon the affirmative roll call vote of a majority of the authorized membership of the commission and approval by the city council.

The commission shall make findings in support of any decision to recommend designation of property as a cultural resource or for inclusion in a historic district. Such findings shall state that the property meets the designation criteria specified in Section 15.72.050 of this chapter. Recommendations for designation of historic districts may include those items in the proposed preservation plan.

B. Area of Historic Interest. An area shall be recommended for designation as an area of historic interest only upon the affirmative roll call vote of a majority of the authorized membership of the commission. No approval by the city council is required. The commission shall make findi ngs in support of any decision to recommend designation of an area of historic interest. Such findings shall state that the area meets the designation criteria specified in Section 15.72.050 of this chapter.

C. Area of Historic Interest—Appeal. The appeal to city council shall be made in writing and delivered to the office of the city clerk not later than ten calendar days from the date of the commission’s decision. Upon the filing of the appeal, the clerk shall set the matter for public hearing within sixty days or as soon thereafter as is practicable and shall give written notice to the appellant of the time and date set for the hearing. Upon the hearing of such appeal, the city council may by resolution affi rm or modify or reverse the determination of the commission.

D. Historic Property Preservation Applications . The Commission shall consider applications from the owners of a Qualified Historical P roperty for approval of a Historic Property Preservation Agreement pursuant to the requirements of this chapter and Government Code Sections 50280, et seq. (“Mills Act”). The Commission shall review the staff reports and all written and oral evidence presented to the Commission at a n open and public meeting , which may be continued from time to time. Following its consideration, the Commission shall recommend the application to the city council as proposed or as altered or shall recommend disapproval of it. A Qualified Historical P roperty shall be recommended for approval of a Historic Property Preservation Agreement , with any necessary finding s. The Commission’s adopted written f indings shall state whether the Qualified Historical P roperty application complie s with applicable law and meets the current Bakersfield Historic Property Preservation Program criteria approved by resolution of the city c ouncil.

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 8 of 10

SECTION 4.

Chapter 15.72, Section 15.72.120 of the Bakersfield Municipal Code is hereby amended follows:

A. The council shall approve or disapprove by resolution, in accordance with its normal procedure, any designation of property as a cultural resource or historic district. The action of the council shall be final. Upon such designation, the property shall be added to the Bakersfield Register of Historic Places.

1. Historic District. The council shall, not less than sixty days after the commission’s recommendation, hold a noticed public hearing for the proposed designation of property as a historic district. Notice shall be published and mailed as required in Section 15.72.090.

2. Cultural Resource. The council shall, after the commission’s recommendation, approve or disapprove, in accordance with subsection A of this section, the designation of property as a cultural resource. None of the notice provisions of subsection 1 of this section shall apply to council action with respect to approval or disapproval of property as a cultural resource.

3. Historic Property Preservation Agreements . The council shall, not more than sixty days after receipt of the Commission’s application recommendation , approve or disapprove the request for a Historic Property Preservation Agreement . The action of the council shall be final.

SECTION 5.

Chapter 15.72, Section 15.72.220 is hereby added to the Bakersfield Municipal Code as follows:

15.72.220 Preservation Incentives

The city council may by resolution establish preservation incentives to encourage owners to designate, maintain, preserve, rehabilitate, and improve cultural resources. Only the owner(s) of a Qualified Historic Property, as defined in Chapter 15.72.020, sh all be eligible to apply for a Historic Property Preservation Agreement.

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 9 of 10 SECTION 6.

Chapter 15.72, Section 15.72.230 is hereby added to the Bakersfield Municipal Code as follows:

15.72.230 Historic Property Preservation Agreement Program

Pursuant to the Mills Act, as may be amended from time to time , the city council hereby establishes the Bakersfiel d Historic Property Preservation Agreement Program. This authority allows the consideration approval of Mills Act Agreements , pursuant to the authority, process, and criteria established by separate resolution of the city council and this chapter.

Approved Historic Property Preservation Agreements shall comply with the Mills Act . The City Manager or their designee shall administer the Bakersfield Historic Property Preservation Agreement Program and is authorized to develop administrative procedures for the implementation of such program that are consistent with this Chapter and city council resolutions .

SECTION 7.

Chapter 15.72, Section 15.72.240 is hereby added to the Bakersfield Municipal Code as follows:

15.72.240 Fees.

The city council shall by resolution set fees for application s for a Cultural Resource Designation, Historic District Designation , Area of Historic Interest Designation, and Historic Property Preservation Agreement from the City.

All fees shall be paid in accordance with the Master Fee Schedule adopted by the City. Such fees shall be in amounts necessary and appropriate to reimburse the City for all costs related to the processing of and acting upon each such application and program inspections and monitoring , but shall not exceed the City’s costs of providing such services .

SECTION 8.

The adoption of this Ordinance is categorically exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15331, as the provisions of this Ordinance will promote the stabilization, rehabilitation, restor ation, preservation, conservation or reconstruction of historic resources in a manner consistent with the Secretary of the Interior’s Standards for the Treatment of Historic Properties.

SECTION 9.

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Ordinance Amending Chapter 15.72 – Historical Preservation Page 10 of 10 This Ordinance shall be posted in accordance with the provisions of the Bakersfield Municipal Code and shall become effective thirty (30) days from and after the date of its passage.

I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on _____________________ by the following vote:

AYES: COUNCILMEMBER: ARIAS, GONZALES, WEIR, SMITH, KOMAN BASHIRTASH, KAUR NOES: COUNCILMEMBER: ___________________________________________________________________ ABSTAIN: COUNCILMEMBER: ___________________________________________________________________ ABSENT: COUNCILMEMBER: ___________________________________________________________________

__________________________________

JULIE DRIMAKIS, CPMC, MMC
CITY CLERK and Ex Officio Clerk of the
Council of the City of Bakersfield
APPROVED: _____________________

By _________________________________

KAREN GOH
Mayor

APPROVED AS TO FORM:

VIRGINIA GENNARO, CITY ATTORNEY

By _________________________________

VIRIDIANA GALLARDO-KING
Deputy City Attorney II

Resolution Establishing Application for Historic Property Preservation Page 1 of 3 RESOLUTION NO. ______________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BAKERSFIELD ESTABLISHING THE APPLICATION PROCESS,

REVIEW PROCEDURES, FEE AUTHORITY, AND REQUIRED

PROVISIONS FOR THE IMPLEMENTATION OF THE BAKERSFIELD

HISTORIC PROPERTY PRESERVATION AGREEMENT PROGRAM
(MILLS ACT ) PURSUANT TO BAKERSFIELD MUNICIPAL CODE
CHAPTER 15.72.

WHEREAS, California Government Code Sections 50280, et seq. , more commonly known as the Mills Act, is California’s principal economic incentive program for the preservation and restoration of qualified historical buildings; and

WHEREAS, through the Mills Act, cities and counties may contract with owners of qualified historic properties to abide by reasonable preservation requirements in exchange for property tax relief; and

WHEREAS, the City of Bakersfield is dedicated to preserving historic resources within the City; and

WHEREAS, pursuant to Bakersfield Municipal Code Chapter 15.72, the City has established procedures to designate historic resources within the City, and to identify those “qualified historical properties” that may be eligible for the approval of a Mills Act Agreement, at the request of the owners; and

WHEREAS, Bakersfield Municipal Code Section 15.72.220 allows for the adoption of preservation incentives for cultural resources designated by the City Council or listed on any official federal, state, or county register for the purpose of preservation, rehabilitati on, and maintenance of those designated historic resources; and

WHEREAS, Historic Property Preservation Agreements will safeguard the City's heritage as embodied and reflected in such resources, foster civic and neighborhood pride and a sense of identity based on the recognition and use of cultural resources, promote the enjoyment and use of cultural resources, preserve diverse and harmon ious architectural styles and design preferences of periods of the City's history, and protect and enhance the City's attraction to tourists and visitors; and

WHEREAS, Bakersfield Municipal Code Section 15.72.230 states that the application process, review procedures, and required contract provisions for preservation agreements shall be established by separate resolution of the City Council.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield:

1. The program specified in this Resolution is for the purpose of implementing the Historic Property Preservation Agreement Program

Resolution Establishing Application for Historic Property Preservation Page 2 of 3 (Mills Act ) and Section 15.72.230 of the Bakersfield Municipal Code, for purposes of preserving, rehabilitating, and maintaining designated historic resources in the City , shall be known as the Bakersfield Historic Property Preservation Agreement Program.

2. Pursuant to Bakersfield Municipal Code Section 15.72.230, the City Council hereby delegates to the City Manager, or their designee, authority and responsibility to develop and maintain an application process for property seeking qualification and participation in the Bakersfield Historic Property Preservation Agreement Program. The City Manager or their designee shall recommend to the City Council the adoption of a fee or fees for the services the City will provide to the owner of any qualified historical property under this Resolution, to be paid prior to the City’s execution of any Bakersfield Historic Property Preservation Agreement, in amounts that do not exceed the City’s cost of providing the service(s), pursuant to Government Code Section 50281.1.

3. Pursuant to Bakersfield Municipal Code Section 15.72.040, the City Council hereby delegates to the Historic Preservation Commission the authority and responsibility to review and make a recommendation to the City Council on any application submitted pursuant to the Bakersfield Historic Property Preservation Agreement Program. The City Council is the final authority on the authorization and approval of Historic Property Preservation Agreements.

4. The form of the Bakersfield Historic Property Preservation Agreement to be used is attached as " Exhibit A ." Pursuant to Bakersfield Municipal Code Section 15.72.230, the City Council hereby delegates to the City Manager, or their designee, the authority and responsibility to amend and modify the form of the Bakersfield Historic Property Preservation Agreement as deemed necessary and appropriate for individual situations , in consultation with the City Attorney.

5. The Bakersfield Historic Property Preservation Agreement is consistent with, and shall require compliance with Government Code Section s 50280 et seq . and Bakersfield Municipal Code Chapter 15.72. The maintenance, repair, rehabilitation, and/or restoration standards and compliance schedule applicable to the subject property , along with inspection and reporting requirements, shall be set forth in the Bakersfield Historic Property Preservation Agreement. In consideration for abiding with the terms of the Bakersfield Historic Property Preservation Agreement, the owner of the subject property shall be entitled to apply for a reassessment of the qualified historic al property, pursuant to applicable provisions of the Revenue and Taxation Code.

It shall be the sole responsibility of the owner of a qualified historical property that is the subject of an approved Bakersfield Historic Property Preservation Agreement to apply for reassessment of the qualified historical property.

Resolution Establishing Application for Historic Property Preservation Page 3 of 3

6. Applications for the Bakersfield Historic Property Preservation Agreement Program will be accepted annually during an application period determined and publicized by the City Manager or their designee .

Applications shall only be accepted on a form provided by the City. All Qualified Historical Properties with timely applications will be reviewed and presented to the City Council for their consideration during a regular City Council meeting in November of each year.

7. It is the intent of the Council that unrealized revenue to the City from property taxes not collected due to executed Bakersfield Historic Property Preservation Agreements shall not exceed a total of $75,000 in a fiscal year, unless approved otherwise by the City Council.

8. The adoption of this Resolution is categorically exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15331, as the program adopted will promote the stabilization, rehabilitation, restoration, prese rvation, conservation or reconstruction of historic resources in a manner consistent with the Secretary of the Interior’s Standards for the Treatment of Historic Properties.

------------o0o------------

I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on _____________________ by the following vote:

AYES: COUNCILMEMBER ARIAS, GONZALES, WEIR, SMITH, KOMAN, BASHIRTASH, KAUR NOES: COUNCILMEMBER ________________________________ ___________________________ ABSTAIN: COUNCILMEMBER ________________________________ __________________________ ABSENT: COUNCILMEMBER ________________________________ ___________________________

_______________________________________

JULIE DRIMAKIS, MMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
APPROVED: _________________

By __________________________

KAREN GOH
Mayor

APPROVED AS TO FORM:

VIRGINIA GENNARO
City Attorney

By: __________________________

VIRIDIANA GALLARDO-KING
Deputy City Attorney II

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 1
Request By
City of Bakersfield
City Clerk

WHEN RECORDED MAIL TO

City of Bakersfield
attn: City Clerk
1600 Truxtun Avenue
Bakersfield, California 93301

Space Above This Line Reserved For Recorder’s Use / Exempt From Filing Fee Pursuant To Gov’t Code § 27383

CITY OF BAKERSFIELD

MILLS ACT CONTRACT

[INSERT PROPERTY ADDRESS AND APN]

___________________________________________________
City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 2

CITY OF BAKERSFIELD

HISTORIC PROPERTY PRESERVATION CONTRACT (“MILLS ACT”)

THIS AGREEMENT is made and entered into this [INSERT EFFECTIVE DATE] by and between the CITY OF BAKERSFIELD, a municipal corporation ( hereinafter referred to as “City”), and [INSERT NAME(S) OF PROPERTY OWNER(S) AS IT APPEARS ON TITLE] (hereinafter referred to as “Owner(s)”).

RECITALS

WHEREAS, Government Code Sections 50280, et seq. authorize cities and counties to ente r into contracts with the owner of a “ qualified historical property ,” as defined in Government Code Section 50280.1, to provide for the use, maintenance and restoration of such historical property so as to retain its characteristics as property of historical significance; and

WHEREAS, Owners possesses fee title in and to that certain real property, together with associated structures and improvements thereo n, located at [INSERT STREET ADDRESS], Bakersfield, California, (hereinafter referred to as the ”Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit A and is incorporated herein by this reference; and

WHEREAS, On [INSERT ACTION DATE ], the City Council of the City adopted its Resolution [INSERT NUMBER] (attached hereto as Exhibit B and is incorporated herein by this reference) declaring and designating the Historic Property as [ INSERT DESIGNATION] pursuant to the terms and provisions of Chapter 15.72 of the Bakersfield Municipal Code or on _________ the property was listed on the National Register of Historic Places or listed on the California Register of Historical Resources , and approving this Agreement , all at the request of Owners pursuant to Government Code Section 50280; and

WHEREAS, City and Owner s, for their mutual benefit, now de sire to enter into this Agreement both to protect and preserve the characteristics of historical significance of the Historic Property, and to qualify the Historic Property for an assessment of valuation pursuant to Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code.

NOW, THEREFORE, City and Owners, in consideration of the mutual covenants and conditions contained herein, do hereby agree as follows:

1. EFFECTIVE DATE AND TERM . This Agreement shall be effective and commence on [INSERT DATE] and shall remain in effect for a term of ten (10) years thereafter unless renewed or terminated earlier as provided herein.

2. AUTOMATIC RENEWAL. Each year, upon the anniversary of the effective date of this Agreement (hereinafter referred to as annual renewal date), one (1) year shall be added automatically to the term of this Agreement, unless timely notice of non -renewal is given as provided in paragraph 3 of this Agreement, or the City cancels the Agreement as provided in Section 10.

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 3

3. NOTICE OF NONRENEWAL. If City or Owners desire in any year not to renew this Agreement, the non-renewing party shall serve written notice of non-renewal in advance of the annual renewal date of this Agreement as follows: Owners must serve written notice of non-renewal at least ninety (90) days prior to the annual renewal date; City must serve written notice of the non -renewal at least sixty (60) days prior to the annual renewal date. Upon receipt by Owners of a notice of non -renewal from the City, Owners may make a written protest pursuant to Government Code Section 50282(b) . At any time prior to the annual renewal date, City may withdraw its notice of non-renewal.

4. EFFECT OF NOTICE OF NONRENEWAL. If either City or Owners serve timely notice to the other of non -renewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply.

5. VALUATION OF PROPERTY. During the term of this Agreement, Owners are entitled to seek assessment of valuation of the Historic Property pursuant to the provisions of Chapter 3 of Part 2 of Division 1 of the California Revenue and Taxation Code. Other than the approval and execution of this Agreement, City has no role in , or responsibility for, such assessment.

6. PRESERVATION OF PROPERTY . Owners shall preserve and maintain the characteristics of historical significance of the Historic Property. Attached hereto as Exhibit C, and incorporated herein by this reference, is a list of those minimum standards and conditions for maintenance, use and preservation of the Historic Property, which shall apply to such property throughout the term of this Agreement. In addition, Owners shall comply with the applicable terms of the City’s Historic Preservation Ordinance ( Bakersfield Municipal Code Chapter 15.72), requiring Owners to maintain the Historic Property in a good state of repair, and shall obtain any applicable permits to restore the Historic Property to maintain its historic and cultural significance.

7. RESTORATION OF PROPERTY. Owners shall, where necessary, restore and rehabilitate the Historic Property to conform to the then-current standards, rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, the United State s Secretary of the Interio r’s Standards for the Treatment of Historic Properties (Preservation), attached hereto as Exhibit D and incorporated herein by this reference, the State Historical Building Code, and the City of Bakersfield Municipal Code.

8. INSPECTIONS. Owners shall allow, and hereby consent to, inspections of the interior and exterior of the Historic Property by the City prior to a new agreement and every five (5) years thereafter, upon reasonable notice from the City to the Owners, to determine Owners’ compliance with the terms and provisions of this Agreement.

9. PROVISION OF INFORMATION. Owners shall furnish the City with any and all information requested by City which City deems necessary or advisable to determine compliance with the terms and provisions of this Agreement.

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 4

10. CANCELLATION. City, following a duly noticed public hearing as set forth in Government Code Section s 50280, et seq., may cancel this Agreement if City determines Owners have breached any of the conditions or covenants of the Agreement or have allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historical property under either State law or the Municipal Code. City may also cancel this Agreement if it determines Owner s have failed to restore or rehab ilitate the Historic Property in the manner specified in paragraph 7 of this Agreement. City’s right to cancel this Agreement pursuant to this paragraph shall in no way limit or restrict its rights or legal remedies arising from City’s Historic Preservation Ordinance and other applicable provisions of the Municipal Code.

11. CANCELLATION FEE. In the event of cancellation of this Agreement, Owners shall be subject to payment of the cancellation fees set forth in California Government Code Sections 50280, et seq, at the time of cancellation. Currently upon cancellation, Owners shall pay a cancellation fee equal to twelve and one-half percent (12½%) of the current fair market value of the property as determined by the County Assessor as though the Historic Property were free of the contractual restriction pursuant to this Agreement. The Owners shall pay the cancellation fee to the County A uditor in the time and manner prescribed by the County Auditor. The cancellation fee specified in this Agreement is current as of the date of execution, but may be changed by the Legislature during the Term.

12. ENFORCEMENT OF AGREEMENT . In lieu of and/or in addition to any provisions to cancel this Agreement as referenced herein, City may bring an action to specifically enforce, or enjoin the breach of, the terms of this Agreement.

13. WAIVER. City does not waive any claim or default by Owners if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for i n this Agreement or in City’s Municipal Code governing historic properties are available to City to pursue in the event there is a breach of this Agreement. No wavier by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.

14. BINDING EFFECT OF AGREEMENT . Owners are hereby subject to the Historic Property covenants, reservations and restrictions set forth in this Agreement. City and Owners hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owners’ successors and assigns in title or interest to the Historic Property.

Each and every contract, deed or other instrument hereinafter executed, governing or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations an d restrictions expressed in this Agreement regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument.

City and Owners hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owners hereby further declare their

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 5
understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historic characteristics and significance of the Historic Property for the benefit of the pu blic and Owners. Owners shall have the affirmative duty to disclose the existence and continuing effect of this Agreement to any prospective successor in interest.

15. NOTICE. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below, by personal delivery or United States mail, postage prepaid, addressed as follows:

City: City of Bakersfield
Economic & Community Development
1600 Truxtun Avenue
Bakersfield, California 93301

Owners: INSERT OWNER(S)

NAMES LIKE ABOVE
______________________
______________________

16. EFFECT OF AGREEMENT. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise.

17. INDEMNITY AND DEFENSE OF CITY . To the full extent permitted by law, Owners shall, defend, indemnify, and hold City and its elected officials, officers, agents, and employees harmless from liability for claims, loss, proceedings, damages, causes of action, liability, costs or expense, including reasonable attorney’s fees in connection with damage for personal injuries, including death, and claims for property damage which may arise from the approval of this Agreement, or any other City action related to this Agreement, or from the direct or indirect use or operations of the Historic Property by the Owners or their contractor, subcontractor, agent, employee, invitee, or other person acting on their behalf which relate to the use, operation and maintenance of the Historic Property. Owners shall further indemnify and defend the City and its elected officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, any of Owners’ or their invit ees’ activities in any way connected with the Historic Property. This indemnification, defense and hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, by reason of the activities referred to in this Agreement regardless of whether or not the City prepared, supplied or approved the plans, specifications or other documents for the Historic Property , and regardless of any claimed negligence on the part of the City.

18. BINDING UPON SUCCESSORS . All of the agreements, rights, covenants, reservations, and restrictions contained in this Agreement shall be binding upon and shall inure to benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever.

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 6

19. LEGAL COSTS. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney’s fees to be fixed by the court, in addition to court costs and other relief ordered by the court.

20. SEVERABILITY. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby.

21. GOVERNING LAW . This Agreement shall be construed and governed in accordance with the laws of the State of California. Venue for the resolution of any dispute hereunder shall be appropriate in the Kern County Superior Court with jurisdiction over matters arising in the City of Bakersfield.

22. EMINENT DOMAIN PROCEDURES . Upon the filing of an action in eminent domain by a public agency for the condemnation of the fee title of any land described herein or of less than fee interest which will prevent the portion of land condemned or other land or a portion of it which is the subject of this Agreement from being used for any authorized use, or upon the acquisition in lieu of eminent domain by a public agency for a public improvement, the portions of this Agreement by which Owners agrees to preserve and to restrict the use of property described herein shall be null and void upon such filing as to the portion of the land condemned or acquired and to the additional land the use of which for an authorized purpose will be prevented as a result of condemnation or acquisition.

If, subsequent to the filing of an action in eminent domain, the proposed condemnation is abandoned by the condemning agency as to all or a portion of the land subject to this Agreement, the restrictions on the use of the property included in this Agreement shall, without further agreement of the parties, be re -instituted and the terms of this Agreement shall be in full force and effect.

23. RECORDATION. No later than sixty (60) days after the parties execute this Agreement, the owners or agent of owner s shall record this Agreement in the Office of the County Recorder of the County of Kern.

24. AMENDMENTS. This Agreement may be amended, in whole or in part, only by a duly approved written recorded instrument executed by the parties hereto.

IN WITNESS WHEREOF, City and Owners have executed this Agreement on the day and year first written above.

“CITY” “OWNER(S)”

CITY OF BAKERSFIELD

By:_______________________________ By:_______________________________

KAREN GOH ENTER OWNER(S) NAME(S)
Mayor

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 7

APPROVED AS TO CONTENT:

ECONOMIC AND COMMUNITY

DEVELOPMENT DEPARTMENT

By:___________________________
JENNIFER M. BYERS
Director

APPROVED AS TO FORM: COUNTERSIGNED:

City Attorney:_______________________ Finance Director: _____________________

VIRGINIA GENNARO RANDY MCKEEGAN

Note: City and Owner(s) signatures must each be notarized by a Notary Public.

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) A - 1

EXHIBIT A

Legal Description

[INSERT CITY TRACKING NUMBERS]

Address

APN #

Legal Description

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) B - 1

EXHIBIT B

Resolution No. XXX or National/State listing

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 1

EXHIBIT C
Mills Act Contract Conditions

STANDARDS AND CONDITIONS
[INSERT HISTORIC PROPERTY ADDRESS AND APN]

During the term of this agreement, the Historic property shall be subject to the following conditions:

1) All structures and yards on the property shall be kept in excellent condition including exterior walls, windows and roofing. The following conditions are prohibited:
a) Dilapidated buildings or features such as fences, roofs, doors, wall and windows. b) Abandoned or discarded objects, equipment or materials such as automobiles, automobile parts, furniture, appliances, containers, lumber or similar items stored outdoors but within property lines.
c) Stagnant water or open excavations.
d) Any device, decoration or structure, which is unsightly by reason of its height, condition or location.
e) Peeling exterior paint or unremoved/uncovered graffiti. f) Overgrown landscaping, exposed bald areas within yards or grounds and broken hardscape features that could cause injury.
g) Other substandard conditions as cited by the Historic Preservation Commission, Planning or Building Director, or Code Enforcement.

2) A Certificate of Appropriateness from the Historic Preservation Commission shall be required prior to any exterior alterations and/or additions to any structure on the property.

The Secretary of the Interior’s Standards for Historic Preservation (EXHIBIT D) shall be applied to the property with the exception that standard condition #9 shall allow for additions, exterior alterations or related new construction to match the original building upon approval of a Certificate of Appropriateness.

3) View Corridor Maintained. The view corridor enabling the general public to see the building from the public right -of-way shall not be further obscured. The view corridor, including landscaping, hardscape and fencing, shall be maintained.

4) Electrical Safety Inspection. Within two (2) years of the date of City Council approval of this Agreement, an electrical safety inspection report shall be submitted on the electrical contractor’s letterhead indicating that the existing service panel meets minimum code and poses no hazardous conditions, GFCI outlets are provided as specified by code, and proper grounding of the panel exists. This condition shall be waived if the building records confirm the upgrading of the service panel or written electrical inspection completed within the five (5) years calendar years prior to approval of this Agreement is provided.

5) Seismic Retrofit. Documentation by a building permit must be submitted verifying completion of a seismic retrofit. If the house has not been seismically retrofitted, it shall be retrofitted within five (5) years of the date of the City Council approval of this Agreement. Seismic retrofit shall be at minimum the bolting of the house to an approved foundation. Seismic retrofit shall be at minimum the bolting of the house to an approved foundation.

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) C - 2

6) Investigation. [INSERT TEXT IF ANY PROPERTY -RELATED INVESTIGATION IS NEEDED PRIOR TO IMPROVEMENTS ] The applicant shall present the findings to the Commission, at which time the Commission will evaluate the appropriateness of the [IMPROVEMENTS] and determine any necessary steps to address the walls if they are found to be an inappropriate alteration to the Historic Structure.

7) Exterior Improvement or Interior Improvements (Certificate of Appropriateness may be required): [INSERT REQUIRED IMPROVEMENTS, WITH DETAIL AND TIMING]

Rehabilitation/Restoration/Maintenance Plan
The methods and materials for completing the work items below shall be subject to review and approval by the City prior to commencement of work.

Work shall be completed by the specified date unless the OWNER requests a change to a later completion date in writing and the City agrees to a later completion date. Non-compliance with this requirement may constitute grounds for a termination of the Historic Property Contract by the City.

Item No. Building Feature: Estimated
Cost:

Detailed
Description of the
Work:

Year to be
completed:

1. Exterior Paint $10,000
Patch, repair and
re-paint entire
exterior wall
surfaces.
2026

2. 3.

4. 5.

6. 7.

8. 8) The property owner(s) shall submit to the [DEPARTMENT/OFFICIAL] a progress report every year for the first ten (10) years on the anniversary date of th is Agreement, listing a response to the conditions of approval as listed on this document. The report shall be on a form provided by the City , and shall also include interior and exterior maintenance projects completed since the last required update report. After the first ten (10) years of this Agreement’s Term, a written progress report shall be submitted to the City every five (5) years.

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City of Bakersfield – Historic Preservation Contract (“Mills Act”) D - 1

EXHIBIT D

The Secretary of the Interior's Standards for the Treatment of Historic Properties Standards for Preservation

1. A property will be used as it was historically or be given a new use that requires minimal change to its distinctive materials, features, spaces, and spatial relationships.

2. The historic character of a property will be retained and preserved. The removal of distinctive materials or alteration of features, spaces, and spatial relationships that characterize a property will be avoided.

3. Each property will be recognized as a physical record of its time, place, and use.

Changes that create a false sense of historical development, such as adding conjectural features or elements from other historic properties, will not be undertaken.

4. Changes to a property that have acquired historic significance in their own right will be retained and preserved.

5. Distinctive materials, features, finishes, and construction techniques or examples of craftsmanship that characterize a property will be preserved.

6. Deteriorated historic features will be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature will match the old in design, color, texture, and, where possible, materials. Replaceme nt of missing features will be substantiated by documentary and physical evidence.

7. Chemical or physical treatments, if appropriate, will be undertaken using the gentlest means possible. Treatments that cause damage to historic materials will not be used.

8. Archeological resources will be protected and preserved in place. If such resources must be disturbed, mitigation measures will be undertaken.

9. New additions, exterior alterations, or related new construction will not destroy historic materials, features, and spatial relationships that characterize the property. The new work will be differentiated from the old and will be compatible with the historic materials, features, size, scale and proportion, and massing to protect the integrity of the property and its environment.

10. New additions and adjacent or related new construction will be undertaken in such a manner that, if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.

Finance Economic Developmentand Jobs Committee February 23, 2026Mills Act Ordinance Viridiana Gallardo-KingDeputy City AttorneyCecelia GriegoPrincipal Planner

Presentation Outline•Recap of Committee History •Mills Act Ordinance Overview•Program Overview•Fiscal Impacts•Pending Question •Options/Direction

Recap of Committee History•Spring, 2014:Former Councilmember Russell Johnson made a referral to provide information on the Mills Act •September 22, 2014: Staff gave Mills Act presentation to Legislative and Litigation Committee. Committee requested additional information/research be conducted •November 17, 2014:Staff continued Mills Act discussion at Legislative and Litigation Committee. Topic was tabled since community interest was lacking•November 10, 2025: Staff gave Mills Act overview to Finance, Economic Development and Jobs Committee. Councilmembers Gonzales and Koman requested CAO bring draft ordinance for review. Councilmember Arias was absent

For Consideration Today1. Draft Ordinance establishing Historic Property Preservation Agreement Program (Mills Act)2. Draft Resolution with attached agreement template establishing the process and procedures for Program3. Program options for implementation to minimize fiscal impacts

Mills Act Ordinance Overview
5 •15.72.020 Definitions•15.72.040 Powers and duties•15.72.110 Historic property preservation application•15.72.120 Council action•15.72.220 Preservation incentives•15.72.230 Mills Act Agreement Program•15.72.240 Fees

Ordinance - Definitions/Powers and Duties•Qualified Historical Property:a property or structure listed in the National Register, or listed in a state or local register of historical or architecturally significant sites, places, or landmarks (Gov. Code 50280.1)•Historic Preservation Commission (HPC): Review applications for Qualified Historical PropertiesReview all written and oral information presented during public meetingRecommend approval/denial of applications to City Council6

Ordinance – City Council Powers and Duties•Preservation Incentives: City council may establish preservation incentives to encourage owners to designate, maintain, preserve, rehabilitate, and improve cultural resources. (resolution)•Establish Mills Act Agreement Program: Allows the consideration approval of Mills Act Agreements, pursuant to the authority, process, and criteria established by separate City Council resolution •Administration of Program: City Manager authorized to develop administrative procedures that are consistent with ordinance and City Council resolution•Fees:City Council shall establish Mills Act application fees by resolution and incorporate into master fee schedule7

Resolution – Establishes Agreement Program•HPC makes recommendation on Application, Agreement sent to City Council•Agreement between City and Owner Ten-year term; renews automatically annually Owner entitled to seek assessment of property valuation Requires owner to preserve/maintain property’s characteristics of historical significanceRequires restoration, when necessary City inspections required prior to approval (including every 5 years)8

Agreement Program•Binding on successors of property (runs with the land)•Either party can terminate•City Council has 60 days after receipt to make a final decision•Agreement is recorded 9

Proposed Program – Application Timeline
10 Annual Mills Act Contract Program WorkshopJanuaryApplication DueMayStaff will review for eligibility and conduct inspection of property, if eligible.JuneThe Historic Preservation Commission will review the applications using the program criteria; may recommend, not recommend, or forward without recommendation, to City Council.JulyStaff will prepare final contract and attachments for City Council consideration.AugustIn-person appointment with owner(s) to review and notarize final contract.SeptemberTo City Council for approval, may also modify, or deny the contract.OctoberRecord ContractNovember

Agreement Program Cont.
11 •Every executed agreement must include: •Rehabilitation/Restoration/Maintenance Plan and Timeline •City staff will work with the owner during the review process to modify the work program as may be necessary to meet the City’s historic preservation goals and ensure proper preservation of the historic resource. •Cost of work should exceed potential tax savings.•Upon execution of a Historic Property Agreement, all agreed-upon projects must be completed by the end of the year established in the final work plan.•Annual self-certification of completion of work, along with documentation (permits, contractor invoices, before and after photographs, etc.) will be required to ensure required work is completed.

Remedies•Violation of any part of the Agreement Program•Public hearing required for cancellation due to breach •Cancellation fee of 12.5% of current FMV as determined by County Assessor . Fee paid to County Assessor •Results in removal of tax break on Property12

Fiscal Impacts – Survey Findings
13 •The survey identified sites that meet the criteria for local, state and federal designation.•The City surveyed four areas:DowntownEast BakersfieldWestchester/RivieraOleander/Sunset•Identified:31 designated sites293 individual potential sites5 potential districts•Not all sites are “qualified historic properties” for a Mills Act contract.

Fiscal Impacts – Revenue Loss
14 •The Mills Act Contract lowers the assessed value of a property, which reduces the amount of property taxes owed. •The City’s share of the 1% General Levy tax is slightly over 11% after ERAF adjustment. •There are currently 20 historic properties that could be eligible for a Mills Act Contract. •The current assessed value of these properties is $17,125,434; which netted $171,254 in property taxes from the general levy; there is a potential 10-year tax savings of $62,000 to $147,000.•City 10-year revenue loss would range from $56,000 to $132,000. •These amounts will vary based total contract properties annual re-assessments.•For all properties in the survey areas there is an assessed value of $254,404,465 generating $2,544,045 in general levy taxes. •If all secured Mills Act contracts there would be an overall 10-year tax savings between $930,000 and $2.2 million. •City 10-year revenue loss would range from $840,000 to $1.9 million. •Properties with assessed values less than $1,000,000 are not likely to benefit from the program.•Only 36 properties surveyed are currently assessed over $1,000,000.

Fiscal Impacts – Limit Revenue Loss
15 •Staff is proposing the revenue loss to City not to exceed $75,000 annually, unless approved by City Council.•Other possible limitations to limit fiscal impact:1. We can also add a per property limit such as revenue per property shall not exceed $15,000 annually.2. Set a limit for total revenue loss for the entire program, such as a max of $2 million. Once limit is hit no more properties could apply.3. Set a max on the set value of eligible properties, for example, properties valued over $10 million are not eligible. Options 1 & 3 would disqualify larger buildings like the Padre Hotel and Bank of America Office Tower.

Fiscal Impacts – Cost Recovery
16 •The Mills Act is a service using significant staff time. Those who choose to use this service should offset the costs to taxpayers who are not using this service. •This program will be a heavy lift with processing and implementation costs that require cost recovery.Estimated application fee: $2,960•Covers application workshops, application review, inspections for first 10 years, applicant meetings and correspondence, drafting reports and agreements for Historic Preservation Commission and City Council, agreement recording.Inspection Fee (after first 10 years): $320•Staff time to conduct and report on inspectionProperty Owner Cancellation Fee: $1,470•Staff review of request, draft reports and process public hearing before City Council, recording of cancellation.

Pending Question
17 •Revenue Loss 1. Not to exceed $75,000 annually AND/OR 2. Per property, shall not exceed $15,000 annually AND/OR 3. For entire program, shall not exceed $2 million AND/OR4. Set value for eligible properties, with those valued over $10 million not eligible

Options/Direction
18 •Direct staff to make additional changes (substantial) and bring back for further review •Direct staff to make additional changes (nominal) and take to City Council •Provide alternative direction

ADMINISTRATIVE REPORT

MEETING DATE: February 23, 2026 AGENDA CATEGORY: New Business TO: Finance, Economic Development and Jobs Committee
FROM: Zachary Meyer, Public Works Director
DATE: February 23, 2026
SUBJECT: Rate Increase for Refuse and Recycling Structure

Proposed refuse and recycling rate increase.

RECOMMENDATION:

Staff recommends that the item be referred to full Council to approve Prop 218 Notices, and for full rate adoption at the time the fiscal year (FY) 26/27 budget is considered.

BACKGROUND:

The City of Bakersfield provides solid waste services such as collection, maintenance, processing, and disposal of discarded materials as well as alley cleanups, illegal dumping, and bulky item pickups to all residents and businesses within the City. In addition, the City also pays for a local sorting facility for recyclables, private haulers for collections services, and the County of Kern for disposing materials at their landfills.

In 2025, the City hired HF&H Consultants, Inc., a professional firm with expertise in utility rates and finance, to analyze the financial condition of the Refuse Fund and prepare a Solid Waste Rate Study. On February 23, 2026, HF&H will present a detailed overview of their evaluation and recommendation regarding refuse and recycling rate increases to the Special Finance, Economic Development and Jobs Committee. Upon direction of this Committee regard ing which refuse and recycling rate is suitable, City will then present the results of the rate analysis at the March 25, 2026 Council Meeting to authorize City staff to mail Proposition 218 notices to rate payers, informing them of proposed changes to ref use and recycling rates for FY 26/27 - 30/31.

Annual fees for residential refuse and recycling rates are billed on the Kern County property tax roll each fiscal year. Also, new accounts added throughout the year are billed pro-rata by the City until the start of the next fiscal year. Some of these bills remain unpaid and become delinquent.

Fees adopted by City for services rendered do not exceed the reasonable estimated cost for providing the services. Staff has determined that the proposed rates do not exceed the cost of services.

Proposition 218 also requires a public hearing in which the public may support or protest the rate increase.

Proposition 218 process entails a protest -ballot whereby property owners are notified of a proposed fee or fee increase and have a 45-day period to issue a protest against the fee increase, either in writing or at a public hearing. Notices are tentatively scheduled to be mailed out in April 2026. The public hearing to consider the proposed update is tentatively scheduled for June 2026.

FISCAL IMPACT:

This proposal has no impact on the General Fund; it is all related to Refuse Enterprise Fund.

COUNCIL GOAL:

Reliable Infrastructure
Innovative and Efficient City Government

ATTACHMENTS:

Presentation.

City of BakersfieldSolid Waste Rate StudyFinance, Economic Development and Jobs CommitteeFebruary 23, 2026

Solid Waste Rate Study•Introduction•Rate-Making Objectives & Considerations•Rate Study Process•Results•Q&A•Next Steps Presentation Overview

Solid Waste Rate Study•Provide revenue sufficiency and financial stability •Fund the projected capital and operations and maintenance (O&M) costs of the City’s solid waste enterprise•Maintain a reasonable reserve balance•Cash-flow while waiting for tax roll revenue from the County•Extraordinary costs•Ten-year Financial Outlook; Adopt rates for next five-year period (maximum per Proposition 218) Rate Making Objectives and Considerations

Solid Waste Rate StudySolid Waste Division is responsible for:•Providing collection of solid waste, recyclable, and organic materials from residents and businesses•Through City-operated routes or through contracted third parties (e.g., Kern Refuse)•Operating the Mt. Vernon Green Waste Recycling and Composting Facility•Performing street sweeping•Providing illegal dumping collection•Operating the curbside bulky pickup and motor oil recycling programs Services Currently Provided

Solid Waste Rate StudyRates/Services - Residential•Single-Family Current Annual Charge = $295.00 ($24.58/mo.) •Multi-Family Current Annual Charge = $267.00 per dwelling unit•Base Services included in annual charge:•Weekly Solid Waste Collection •Weekly Organics collection •Every-Other-Week Recycling Collection •Curbside pickup of two bulky items (e.g., Major appliance, mattress, sofa, water heater) per quarter (for single-family and multi-family customer with 4 dwelling units or less)•Curbside pickup of motor oil and oil filter

Solid Waste Rate StudyRates/Services – Commercial•Individual solid waste, recycling, and organics containers•Customers charged separately for each container•As of 1/1/2022, businesses must subscribe to all three containers (SB 1383)•Container sizes ranging from a small cart to 6 cubic yard bins•Frequency of collection ranges from 1 to 6 times per week

Solid Waste Rate StudyCARB Emissions•Estimated at $1.7M beginning FY 26-27•Shared Cost with County (62%)•Reduce to 20% of Costs in FY 30-31Overhead Costs•Software ($180k/yr) •Training Tools ($200k one-time) (FY 26-27)New Positions •1 Solid Waste Compliance Officer (FY 26-27)•4 Facility Workers over 4 Years (starting FY 26-27)•4 SWEO’s over 4 Years (starting FY 27-28) New Additions to Service and Rates

Solid Waste Rate StudyCapital Expenses•Compost Facility Master Plan•Phase 1 FY 26-27 through FY 29-30 ($16.7M, 62% covered by County)•Phase 3 FY 30-31 through FY 32-33 ($47.4M)•Electric Collection Vehicles •Infrastructure - $11M ($2.2M Annually)•Vehicles - $5.4M FY 26-27 through FY 30-31; 5 per year•Vehicles - $15.8M FY 31-32 through FY 35-36; 12 per yearCommercial Landscaper Revenue•Additional $6.38M beginning FY 26-27•Shared Revenue with County (62%) New Additions to Service and Rates – Cont.

Solid Waste Rate StudyRevenue Requirement (Expenses)•~$99.5M Operating and Capital Expenditures (FY 26-27)•~13.9% increase from FY 25-26•~$14.7 million in non-collection rate revenue•(e.g., CalTrans, Kern COG, Kern Illegal Dumping Fund, MRF Revenue, County Cost Sharing)•Need $84.8 million from rate revenue or use of reserves to cover costs•Current rate revenue = ~$77.6M

Solid Waste Rate StudyKey Assumptions – Capital ImprovementsCompost Facility Master Plan: Phase 1Compost Facility Master Plan: Phase 3Phase 1: Reserve-Funded & Costs Shared with County (62%)Phase 3: Building Reserves FY 26-27 through FY 31-32 to fundPROJECT CODE PROJECT NAME FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 FY 33-34 FY 34-35 FY 35-361P1K3000 Corp Yd Bldg A Update $0 $0 $0 $0 $02P3K3150 SW Misc Facility Rprs $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,0003Not AvailableInfrastructure / MRF Rprs $5,000,000 $5,250,000 $5,512,5004[Reserve Building]MRF Line Replacement Fund $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,333 $333,3335Not AvailableElectric Vehicle Charging Stations $2,200,000 $2,200,000 $2,200,000 $2,200,000 $2,200,0006Compost Facility Master PlanPhase 1 Construct Facility $819,200 $512,000 $15,356,6007Compost Facility Master PlanPhase 2 Expand Facility8Compost Facility Master PlanPhase 3 Consolidation Station $2,668,120 $1,442,261 $43,281,8789Compost Facility Master PlanCounty Share of Phase 1 ($507,904) ($317,440) ($9,521,092)$3,344,629 $3,227,893 $8,868,841 $3,033,333 $5,701,453 $2,275,595 $44,115,211 $5,833,333 $6,083,333 $6,345,833TOTAL CIP

Solid Waste Rate Study5-year Rate Increase Summary - Option 11Fiscal yearFY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-362Eff. Date 7/1/2026 7/1/2027 7/1/2028 7/1/2029 7/1/2030 7/1/2031 7/1/2032 7/1/2033 7/1/2034 7/1/20353Overall Rate Revenue Increase 16.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25%4Current 5Single Family Rate (per year) $295.00 $342.94 $354.08 $365.59 $377.47 $389.74 $402.41 $415.48 $428.99 $442.93 $457.336Annual Increase $47.94 $11.15 $11.51 $11.88 $12.27 $12.67 $13.08 $13.50 $13.94 $14.407Monthly Increase $3.99 $0.93 $0.96 $0.99 $1.02 $1.06 $1.09 $1.13 $1.16 $1.20$0.0$10.0$20.0$30.0$40.0$50.0FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36Reserves Balance(Millions)Projected Year-End Unrestricted Cash Balance Total Balance with Rate IncreasesTotal Balance w/o Rate IncreasesMinimum Reserve TargetTotal Reserve Target

Solid Waste Rate Study5-year Rate Increase Summary - Option 21Fiscal yearFY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-362Eff. Date 7/1/2026 7/1/2027 7/1/2028 7/1/2029 7/1/2030 7/1/2031 7/1/2032 7/1/2033 7/1/2034 7/1/20353Overall Rate Revenue Increase 10.25% 10.25% 3.25% 3.25% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%4Current 5Single Family Rate (per year) $295.00 $325.24 $358.57 $370.23 $382.26 $393.73 $405.54 $417.71 $430.24 $443.14 $456.446Annual Increase $30.24 $33.34 $11.65 $12.03 $11.47 $11.81 $12.17 $12.53 $12.91 $13.297Monthly Increase $2.52 $2.78 $0.97 $1.00 $0.96 $0.98 $1.01 $1.04 $1.08 $1.11$0.0$10.0$20.0$30.0$40.0$50.0FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36Reserves Balance(Millions)Projected Year-End Unrestricted Cash Balance Total Balance with Rate IncreasesTotal Balance w/o Rate IncreasesMinimum Reserve TargetTotal Reserve Target

Solid Waste Rate Study5-year Rate Increase Summary - Option 31Fiscal yearFY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-362Eff. Date 7/1/2026 7/1/2027 7/1/2028 7/1/2029 7/1/2030 7/1/2031 7/1/2032 7/1/2033 7/1/2034 7/1/20353Overall Rate Revenue Increase 6.75% 6.75% 6.75% 6.75% 6.75% 2.25% 2.25% 2.25% 2.25% 2.25%4Current 5Single Family Rate (per year) $295.00 $314.91 $336.17 $358.86 $383.08 $408.94 $418.14 $427.55 $437.17 $447.01 $457.076Annual Increase $19.91 $21.26 $22.69 $24.22 $25.86 $9.20 $9.41 $9.62 $9.84 $10.067Monthly Increase $1.66 $1.77 $1.89 $2.02 $2.15 $0.77 $0.78 $0.80 $0.82 $0.84$0.0$10.0$20.0$30.0$40.0$50.0FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36Reserves Balance(Millions)Projected Year-End Unrestricted Cash Balance Total Balance with Rate IncreasesTotal Balance w/o Rate IncreasesMinimum Reserve TargetTotal Reserve Target

Questions?

Solid Waste Rate Study•Update model / Recommended Increase based on feedback•March 25, 2026: Council Meeting to Approve Mailing of Proposition 218 Notices to Rate Payers•April 10 and 17, 2026: Mail notices to property owners•June 10, 2026: Council Meeting to Hold the Public Hearing to Adopt Rates Next Steps