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HomeMy WebLinkAbout11-23-1998 Minutes MINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING NOVEMBER 23, 1998 COUNCIL CHAMBERS This is the time and place set for a joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino from the joint regular meeting held at 8:08 a.m., Monday, November 16, 1998, in the Council Chambers of City Hall, 30e North "D" Street, San Bernardino, California. The City Clerk has caused to be posted the order of the adjournment of said meeting held on Monday, November 16, 1998, and has on file in the Office of the City Clerk an affidavit of said posting together with a copy of said order which was posted at 9:50 a. m., Tuesday, November 17, 1998, on the bulletin board located near the place at which said meeting was held. The joint adjourned regular meeti:lg of the Mayor and Common Council and Community Development Commission was called to order by Mayor Valles at 8:01 a.m., Monday, November 23, 1998, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Mayor Valles; Council Members Estrada, Lien, Schnetz, Devlin, Anderson, Miller; City Attorney Penman, Special Council Sabo, City Clerk Clark, Economic Development Agency Executive Director Van Osdel. Absent: None. Vacant: Third Ward. City Attorney Penman announced that in addition to the items listed below, the Mayor and Common Council and Community Development Commission would recess to closed session pursuant to Government Code Section 54956.9(b) (1) and 3(A). RECESS MEETING - CLOSED SESSION At 8: 01 a. m., the Mayor and Common Council and Development Commission recessed to closed session following: (1) Community for the Pursuant to Government Code Sections: A. Conference with legal counsel existing litigation pursuant to Government Code Section 54956.9(a). 1 11/23/1998 B. Conference with legal counsel - anticipated litigation _ significant exposure to litigation pursuant to subdivision (b) of Government Code Section 94956.9. C. Conference with legal counsel - anticipated litigation - initiation of litigation purs~ant to subdivision (c) of Government Code Section 54956.9. D. Conference with legal counsel - personnel - pursuant to Government Code Section 54957. E. Closed session with Chief of Police on matters posing a threat to the security of public buildings or threat to the public's right of access to public services or public facilities pursuant to Government Code Section 54957. F. Conference with real propert.y negotiator pursuant to Government Code Section 54956.8. CLOSED SESSION At 8:01 a.m., Mayor Valles called the closed session to order in the conference room of the Council Chambers of City Hall. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Mayor Valles; Council Members Estrada, Lien, Schnetz, Devlin, Anderson, Miller; City Attorney Penman, Special Council Sabo, City Clerk Clark, Economic Development Agency Executive Director Van Osdel. Absent: None. Vacant: Third Ward. Also present: Senior Assistant City Attorney Anderson, Administrative Operations Supervisor, Office; City Administrator Wilson. Carlyle and Edna City Attorney's ADJOURN CLOSED SESSION At 8: 37 a. m., the closed session adj ourned to the Council Chambers of Cit.y Hall. RECONVENE MEETING At 8: 37 a. m., Mayor Valles reconvened the joint adj ourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino. ROLL CALL Roll call was taken by City ClerK Clark with the following being present: Mayor Valles; Counc.ll Members Estrada, Lien, Schnetz, Devlin, Anderson, Miller; City Attorney Penman, Special Council Sabo, City Clerk Clark, Economic Development Agency Executive Director Van Osdel. Absent: None. Vacant: Third Ward. 2 11/23/1998 JOINT PUBLIC HEARING CONSIDER TERMS PROPOSED DISPOSITION & DEVELOPMENT AGREEMENT CONSTRUCT PROCESSING FACILITY FOR IMMIGRATION AND NATURALIZATION SERVICES (INS) - GENERAL SERVICES ADMINISTRATION (GSA) - 655 WEST RIALTO AVENUE (Continued from November 16, 1998) (R3) Mayor Valles opened the hearing. Senior Assistant City Attorney Carlyle noted that there are two ways to dispose of property--one is through public bidding and the other is through a public hearing. He read Section 33433 of the California Health and Safety Code lnto the record, and noted that in Section 33431 it states that at a public hearing, bids, if they are offered, must be considered by the body. He added that any bids received today would have to be public knowledge so others could determine if they would like to reconsider their proposals. Gary Miller, Gary Miller Architect & Associates, 350 West Fifth Street, San Bernardino, CA, submitted and read into the record a letter addressed to the Council dated November 20, 1998, which urged support of Ralph Affaitati for the INS project. He pointed out that Mr. Affaitati had worked with the Economic Development Agency (Agency) for almost a year on this project and was the most qualified person/firm for the job. Ralph Affaitati, Ralph Affaitati Construction, Inc., made an oral presentation and submitted into the record a document titled, Chronoloqy of the INS pro'iect dated November 23, 1998, wherein he detailed the terms of an agreement for the development of the INS building that was reached among himself, Mayor Valles and Agency Executive Director Van Osdel on October 8, 1998. COUNCIL MEMBER DEVLIN EXCUSED At 8: 58 a. m., Council Member Devlin left the Council meeting. According to Mr. Affaitati, when the Agency realized that it had gravely underestimated construction costs when it bid on and won the award of the INS project, Agency Executive Director Van Osdel contacted him on October 6 regarding his position as an independent bidder on the building and whether he knew for sure that he was in second place for the bid. He was told that if he could confirm that he was the second place bidder (he could not give 100% assurance), then the EDA would withdraw from the process. Subsequently, because the Agency had failed to comply with any of the conditions of the 60-day letter of intent which awarded them the project, the Agency received a letter from the GSA requiring immediate signature of a binding lease or relinquishment of its position within 24 hours (which was 3:00 p.m. on October 8). 3 11/23/1998 Mr. Affaitati stated that he was so confident that he would be doing the proj ect, that when he met W,l. th the Mayor and Mr. Van Osdel on October 8, one condition of his offer was that he would relinquish his independent position as a bidder for the INS project and commit his company to performance of the EDA proposal. He pointed out that at that time no other proposal or developer was involved. Mr. Affaitati expressed disappointment with the direction the project had taken since his meeting with the Mayor and Mr. Van Osdel and presented a new proposal very similar to the proposal submitted by the Vanir Group. He stated that his proposal offered greater security for the City and the Agency than the Vanir proposal since he was now proposing to immediately deposit $208,350 against the purchase price of the land. Frank Dominguez, Vanir Development Company, Inc., pointed out that his firm had direct INS and GSA experience, and that there were very significant security requirements which needed to be oonsidered. He stated that his company developed a Border Patrol facility that is being used as a model for other Border Patrol facilities, and that his firm includes an in-house property management division that is essential with this type of lease. Mayor Valles desired to submit presented. inquired whether anyone else was present who a proposal; however, no other proposals were Council Member Estrada made a motion, seconded by Council Member Miller, and unanimously carried, that the hearing be closed. Council Member Estrada stated that it was her impression from being a member of the Redevelopment Committee, that when Mr. Affaitati was asked to assist the City/Agency, it was understood that without ratification by the Council and Community Development Commission there was nothing binding the City to a deal with his firm. Council discussed the information presented by Mr. Affaitati, the scope of the proposed project, the fact that the two bids were almost identical except for when the money would come in, and the fact that the project would probably cost more to develop than it would be worth and yet the City would still be obligated under the GSA lease. Mr. Dominguez noted that his proposal was based on whether the project was successful or not; that they would basically be taking the plaoe of the City and the burden would be upon Vanir to absorb any additional expenses. 4 11/23/1998 City Attorney Penman explained that with the Mayor being the chief executive of the City, it is sometimes necessary for the Mayor to have a meeting such as that held with Mr. Affaitati; however, everyone understands that nothing is binding until there is a public hearing and the Council and Commission take action. He added that the Mayor does not have the legal authority to circumvent this procedure; and that nothing was done improperly from a legal standpoint. Mr. Penman also provided some historical information on both developers, stating that Mr. Affaitati had no adverse legal history with the City. However, in 1982 Mr. Dominguez sued the Economic Development Agency and the City over a building he planned to build at Court and "E" Streets; and in 1988 he filed for reorganizational bankruptcy, resulting in the City being paid only $10,000 of a $102,000 obligation. Also, it was recently disclosed that in Vanir Tower there was construction without the proper permits on the remodeling project for the new Internal Revenue Service offices. RES. 98-326 - RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND DETERMINATIONS, APPROVING THAT CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT AND AUTHORIZING THE EXECUTION THEREOF AND ANY DOCUMENTS RELATED THERETO. (R3) RES. 5559 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND DETERMINATIONS, APPROVING THAT CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT AND AUTHORIZING THE EXECUTION THEREOF AND ANY DOCUMENTS RELATED THERETO. (R3) Council Member Estrada made a motion, seconded by Council Member Miller, that the City and the Economic Development Agency enter into an agreement with Frank Dominguez of Vanir Development Company, Inc.,; and that said resolutions be adopted. The motion failed by the following vote: Ayes: Council Members Estrada, Miller. Nays: Council Members Lien, Schnetz, Anderson. Absent: Council Member Devlin. Vacant: Third Ward. Mark Ostoich, Attorney for Mr. Affaitati, 600 North Arrowhead Avenue, San Bernardino, CA, spoke regarding the assertion that Mr. Affaitati should have known that his meeting with the Mayor and Mr. Van Osdel did not constitute a consummated deal. He pointed out that what needed to be acknowledged was that after that meeting no 5 11/23/1998 one asked Mr. Affaitati for a proposal, no proposal was ever taken forward, and he was never given the opportunity to go before the City Council. The Council inquired whether they would be jeopardizing the project by delaying a decision on the matter. Executive Director Van Osdel stated that the facility must be built and occupied by November 1999, and the Council needed to make a selection today of either vanir or Affaitati. City Attorney Penman added that based on the agreement that the Mayor had signed with GSA, the City was bound to complete the project on time. Council Member Lien made a motion, seconded by Council Member Anderson, that the City and the Economic Development Agency enter into an agreement with Ralph Affaitati of Ralph Affaitati Construction, Inc., and that said resolutions be adopted. The motion carried, and Resolution adopted by the following vote: Ayes: Lien, Schnetz, Anderson, Miller. Nays: Member Devlin. Vacant: Third Ward. Nos.98-326 and 5559 were Council Members Estrada, None. Absent: Council SPECIAL COUNSEL SABO AND ECONOMIC DEVELOPMENT AGENCY EXECUTIVE DIRECTOR VAN OSDEL EXCUSED At 10:15 a.m., Special Counsel Sabo and Economic Development Agency Executive Director Van Osdel left the Council meeting. AN ORDINANCE OF THE CITY OF SAN BERNARDINO SUSPENDING SECTION 2.56.195 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO ELECTION VOLUNTARY EXPENDITURE CEILING. First (2) City Attorney Penman explained that Proposition 208 provided for certain campaign limitations; however, on January 6, 1998, the United Stated District Court issued a preliminary injunction that barred the Fair Political Practices commission (FPPC) from enforcing these provisions until the California Supreme Court had reviewed the measure. Mr. Penman stated that the FPPC had suggested that local jurisdictions suspend enforcement pending the outcome of the final disposition of the case or take formal action to rescind the ordinance. Council Member Anderson made a motion, seconded by Council Member Estrada, and unanimously carried, that said ordinance be laid over for final adoption. 6 11/23/1998 ADJOURNMENT (4) At 10:17 a.m., the meeting was adjourned. The next scheduled meeting of the Mayor and Common Council and Community Development Commission will be held at 8:00 a.m., Monday, December 7, 1998, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RACHEL G. CLARK City Clerk By ~IW- Linda Hartzel Deputy City Clerk No. of Items: 4 No. of Hours: 2.5 7 11/23/1998