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HomeMy WebLinkAbout06-10-1991 Minutes City of San Bernardino, California June 10, 1991 This is the time and place set for an Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino at their Regular Meeting held at 8:30 a.m., Monday, June 3, 1991, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The City Clerk has caused to be posted the Order of Adjournment of said meeting held on Monday, June 3, 1991, 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 4:00 p.m., Tuesday, June 4, 1991, on the door of the place at which said meeting was held. The Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino was called to order by Mayor Holcomb at 7:33 p.m., Monday, June 10, 1991, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken by Deputy City Clerk Vale with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Hernandez, Maudsley, Minor, Pope-Ludlam, Miller; Ci ty Attorney Penman, Deputy City Clerk Vale, Assistant City Administrator Wilson. Absent: None. INVOCATION The invocation was given by Phil Arvizo, Executive Assistant to the Council. PLEDGE OF ALLEGIANCE The pledge of allegiance was led by Council Member Estrada. PROTEST HEARING ASSESSMENT DISTRICT NO. 987- VERDEMONT AREA - CONTINUED FROM MAY 20, 1991 (2) This is the time and place continued to for consideration of Assessment District No. 987 which includes the Chestnut Avenue storm drain, Palm Avenue street improvements, and the installation of a box culvert and traffic signals at Palm Avenue and Kendall Drive. In a memorandum dated April 29, 1991, Roger Hardgrave, Director of Public Works/City Engineer, stated that on March 11, 1991, the Mayor and Common Council adopted Resolution of Intention No. 91-71, and Resolution No. 91-72, setting a public hearing, and g1v1ng preliminary approval to the Engineer's Report. Subsequently, the Mayor and Common Council adopted 1 6/10/91 Resolution No. 91-120, approving the modified Engineer's Report to correct certain errors in the original report. As required by the Municipal Improvement Act of 1913, portions of the streets within the proposed district were posted, notice of improvement was mailed to each of the property owners in the proposed district and notice of the adoption of the Resolution of Intention was published. The next step in the proceedings is the public hearing. If protests are received which represent more than 50% of the "area" of the district and are not withdrawn before the end of the hearing, all proceedings terminate as required by the 1931 Debt Limitation Act unless the protests are against only a portion of the district in which case the remainder can proceed and only that part which is protested would terminate. RESOLUTION OF THE CITY OF SAN BERNARDINO ORDERING CERTAIN CHANGES AND MODIFICATIONS TO THE ENGINEER'S REPORT IN A SPECIAL ASSESSMENT DISTRICT. - (Verdemont Area Improvement District 987) (Continued from May 20, 1991) (2) RESOLUTION OF THE CITY OF SAN BERNARDINO OVERRULING AND DENYING PROTESTS AND MAKING CERTAIN FINDINGS IN A SPECIAL ASSESSMENT DISTRICT. (Verdemont Area Improvement District) (Continued from May 20, 1991) (2) RESOLUTION OF THE CITY OF SAN BERNARDINO CONFIRMING THE ASSESSMENT, APPROVING THE ENGINEER'S REPORT AND DESIGNATING THE TREASURER TO COLLECT AND RECEIVE MONEY. - (Verdemont Area Improvement District) (Continued from May 20, 1991) (2) Mayor Holcomb opened the hearing. Mayor Holcomb stated that this public hearing would be rebroadcast at 12:30 p.m., Saturday, June 15, 1991. Mayor Holcomb explained that a significant number of telephone calls and letters had been received which raised valid concerns with Assessment District No. 987. He acknowledged the following concerns residents had with the assessment district: that the majority of residents desire installation of the improvements, and that the majority of residents feel that the district as proposed is not affordable or equitable. Mayor Holcomb recommended the following concessions to Assessment District No. 987: that no residents be displaced from their homes due to the assessments; that the traffic signal at Palm Avenue be reconsidered and the cost be assessed on a broader basis so that the residents pay only 50% of the cost; and that 2 6/10/91 the San Bernardino Unified School District and Water Department property be included in the assessment district in the same manner as the residents. He stated that these concessions would substantially decrease the assessments residents would pay. Mayor Holcomb explained that all of the concerns residents have with the assessment district could not be resolved this evening; however, the goal of the Council was to make the district equitable and affordable. He stated that in talking with residents, it was felt that the best way to resolve the issues would not be in a public hearing, but to appoint a committee to work with the council and staff, and to continue the public hearing to allow the committee time to prepare recommendations on how to resolve the issues of affordability and equity. Mayor Holcomb explained that the issue of affordability should focus on the homeowner, not the investor, land speculator or holders of large tracts of vacant land. He stated that the City would work with all property owners, but would not be able to give owners of large tracts of vacant land the same protection given to owners who reside on the property. He stated that the general rule of affordability would state that residents who pay more than 30% of their net income for mortgage expense would be eligible for assistance by deferring payment to when the property is sold. Also taken into consideration would be the residents' net worth. Mayor Holcomb explained that the district boundaries cannot be expanded, that the improvements are badly needed, and it' is currently very expensive to maintain the streets under their present condition. He stated that if the district is approved and these improvements are installed, he would pursue other badly needed improvements for other major streets such as Irvington, Belmont and Pine. Mayor Holcomb expressed support for the committee's efforts to find a workable solution to the residents' concerns and recommended that the council approve the committee as the official negotiating committee for the Verdemont area. Barbara Sky, 6464 Palm Avenue, San Bernardino, California, thanked the residents in the audience for attending the meeting. She acknowledged that the residents of Verdemont wanted the improvements but did not like the way the district was established in three zones, and that the cost for the improvements should be shared fairly among the City, developers and residents. She felt that the improvements were needed but sympathized with residents who felt that they had already paid taxes for the improvements. She explained her concerns with Assessment District No. 987: 1) that the Engineer's report contained errors; and 2) that the district was not equitable. 3 6/10/91 Barbara Sky requested that the meeting be continued to allow the committee, consisting of knowledgeable Verdemont residents, to meet with staff to devise a plan to benefit all parties fairly and get the improvements installed. She felt that if the committee was given a chance to work together with staff, then most of the issues could be resolved. She stated that she was willing to be a liaison to the committee and not a voting member. She requested that residents contact committee members to relay their concerns. She explained that since January 1, 1989 Assembly Bill 1600 designated that fees collected from a specific area must be spent in the area from which they were collected., Mayor Holcomb recommended the following residents appointed to the committee: Howell and Trudy Estes, Gipson, Nikkie Hunsaker, William Gallardo, Phillip Smith, Saldecke, Barbara Sky, Barbara Corral, Danny Guiliany and Litton. be Glen Chris Keith Mayor Holcomb explained that for every $1.00 received in County property tax, the city receives $.18, which does not cover the Police and Fire Department services received in Verdemont. He explained that building and development permit fees go into the General Fund. He assured residents that their taxes have not been used elsewhere in the City unless they come from the General Fund. He explained that building permit fees are not earmarked for anyone area, but are used citywide, and clarified that Assembly Bill 1600 does not include building permit fees. Mayor Holcomb acknowledged that the district in its present form was not equitable and needed to be changed. John Bonagofsky, 6960 North Little League Drive, San Bernardino, California, expressed the following concerns with Assessment District No. 987: that he was not aware of the district until he received notification of his assessment; that the council was making decisions without notifying homeowners and allowing them to have input before the district was adopted. Howell Estes, 7129 Little League Drive, San Bernardino, California, a resident of Verdemont for twenty years, and a large land owner, read portion of a letter sent to The Sun. The letter stated that "Assessment District No. 987 is not only bad because it hurts people, it is bad because it is so divisive, it has pitted Verdemont residents and property owners not only against the City but some of the developers as well. These are three partners who need to start working together to provide the necessary infrastructure that Verdemont needs." Phillip Smith, 6504 North California, stated that the issues had not been answered. He stated district had the proper boundaries. Churchill, San Bernardino, of affordability and equity that he did not believe the He felt that the commercial 4 6/10/91 properties along Kendall Avenue, between the freeway and Kendall Avenue, should be included in the district. He expressed concerns that 50% of the traffic flow through the area does not come from the area, that acreage had not been calculated properly, and public land should be included in the district. He felt that issues the committee should discuss are future development, and how to handle assessments that residents cannot afford. Mayor Holcomb explained that two years report showed that Verdemont needed infrastructure which would be funded in part would pay a surcharge of $7,000 per unit partially by the assessment district. ago an engineer's $28 million of by developers who to develop, and Barbara Corral, 3031 West Meyers Road, San Bernardino, California, a resident of Verdemont for nine months, expressed concern that her street was only half paved, and both the developer and the City are telling her the other party is responsible for paving the other half of the street. She stated that she was not opposed to paying her assessment, but felt that the developer who built the homes should have put in the proper surrounding structures. Larry Meyer, P.O. Box 1051, Wrightwood, California, stated that he was born on Meyers Road, and stated that his ancestors settled in the area. He felt that the calculation of acreage was not correct. He stated he was representing two parcels, a ten- acre parcel and a fifteen-acre parcel that have been in his family since 1883, both vacant parcels of land. He stated that the assessment was triple what the tax assessor says the land is worth, and requested a thorough review of the assessment district. Roger Hardgrave, Director of Public Works/City Engineer, explained that Mr. John Friedricks, Assessment Engineer, had tallied the protests received to date which represent an area comprising 42.3% of the district, and stated that if the public agency land were removed it would increase the percentage to 47%. He explained that the assessment district was based on land area not residents. Julie Marquez, 3025 West Meyers Road, San Bernardino, California, stated that she owns a McClellan Development home in Auburn Ridge, and has lived in Verdemont for six months. She stated that she was willing to pay her assessment, but felt that the City and developers should also pay for a portion of the improvements. Trudy Estes, 7129 Little League Drive, San Bernardino, California, stated that committee representation should be divided into areas, similar to wards, with each area voting for 5 6/10/91 its own member of the committee, who would represent them and their concerns. She recommended that the committee review the formula for determining how many units a resident would be charged for. She stated that the district did not take into consideration the terrain of the land when calculating how many units a resident would be charged. She stated that a person could be charged for 40 units, but because of the terrain of the land, 40 units could not be built. Nikkie Hunsaker, 724 Northpark Boulevard, San Bernardino, California, stated that she represented her mother who lives at 6824 North Palm Avenue, San Bernardino, California. She stated that her mother has two acres that were originally assessed at $27,000, and subsequently reduced to $22,000. She explained that she then found an error in the engineer's report which brought the assessment down to $20,000. She stated that she did not support the district, but felt that the improvements were necessary. Jean Hanson, 180 West Fiesta Green, Port Hueneme, California, stated that she and her husband have owned ten acres on the northwest corner of Ohio and Magnolia Avenue for almost forty years. She expressed concern that two separate assessment districts were being discussed, and requested clarification so that everyone in the audience would understand what is being voted on. She expressed opposition to Assessment District No. 987, but felt that the street improvements were necessary. She stated that Assessment District No. 987 does not contain the improvements for streets, sidewalks, sewers and other infrastructure. She explained that Assessment District No. 987 includes only the Chestnut Avenue storm drain, Palm Avenue street improvements, and the installation of a box culvert and traffic signals at Palm Avenue and Kendall Drive. She stated that the other improvements being discussed are not included in district 987. Mayor Holcomb explained that the only item on the agenda was Assessment District No. 987. He explained that before streets and other improvements could be installed, a financing plan approved by the Council must be in place. He felt that it was not fair to ask taxpayers city-wide to pay for infrastructure in Verdemont. He explained that when most people buy their homes the purchase price includes curbs, gutters, street lights, storm drains, sewer and water. He explained that land in Verdemont was inexpensive because it did not have these improvements. He felt that Assessment District No. 987 was a positive first step, and the next step would be get other improvements that are badly needed on Belmont, Irvington and Palm streets. Mayor Holcomb expressed his belief that the majority of residents in Verdemont desired safe streets with traffic signals at congested intersections. He stated that even if residents did 6 6/10/91 not use these streets they provided a means of ingress and egress for emergency vehicles. He explained that if Assessment District No. 987 is defeated, the City would operate by the current system; that when development occurs each new subdivision would have to install one half of the streets, curbs and gutters. The Council stated its belief that the majority of Verdemont residents desired the improvements, but were opposed to paying the full cost. The Council expressed empathy for residents who could not afford to pay the assessments, and stated that there was no question that the improvements are needed, and felt that the need becomes even more apparent each time there is flooding in Verdemont. The Council felt that in addition to the improvements included in Assessment District No. 987 other improvements were also needed such as fire stations and schools. The Council agreed that the problems with the district could not be solved tonight and recommended that the proposed committee be formally adopted, with direction to return at a later date with recommendations. Mayor Holcomb explained that the committee would work to develop a formula to deal with the issues of affordability and equity, and stated that if the committee can formulate an acceptable solution to all parties involved, then the district would proceed. However, if the committee was unable to formulate an acceptable solution then he felt that the district should not be adopted, even though the necessary majority of protests opposing the district have not been received. He expressed confidence that the committee would be successful in resolving everyone's concerns. Discussion ensued regarding the City's legal exposure if the Council voted down the assessment district without receiving the required majority of protests against the district. James Penman, City Attorney, explained that the situation in Verdemont could result in substantial liability for the City from the inadequate street and storm drain systems. He stated that a situation exists that could be serious relative to the infrastructure that should be there and isn't. He stated that the problem was so extreme that even if Assessment District No. 987 was adopted, it would only be one step in the process of improvement and would not entirely resolve the matter. He stated that with each rain storm in Verdemont some roads become impassible even to emergency vehicles. He stated that without receiving a majority of protests the Council has the discretion whether or not to approve the district. He explained that, if improvements are not begun, the City would be continuing its record of not doing what it should have done in Verdemont a long time ago, and that at some point the situation must be addressed. He expressed support for the committee's efforts to formulate a proposal that would allow installation of needed 7 6/10/91 improvements in Verdemont. The Council recommended that following items that may affect the assessments in the district: the committee review the district, or the amount of 1. Proposi tion "I" provides money for streets. Could the City utilize these funds on Palm Avenue, as an arterial street, and thereby decrease the amount of the assessments? 2. Assessment District No. 994 (City Wide Street Sweeping and Street Lighting). Could the City utilize a portion of these funds for street lights along Palm Avenue? 3. San Bernardino Unified School District and Water Department properties. These properties should be included to reduce the amount of the assessments. 4. Verdemont boundaries. The committee should recommend boundaries and clarify what area will be considered "Verdemont". 5 . The strip center at the corner of Palm and Kendall creates a great deal of traffic from the freeway, and should contribute money to fund traffic signalization. A discussion was held regarding the 47% (excluding public lands) protests received opposing the assessment district. Even though it is not the necessary majority, 47% represents a significant number of residents and consideration should be given to voting against the district. William Gallardo, 4494 North Carmelina Street, San Bernardino, California, stated that he was speaking on behalf of his parents. He agreed that the San Bernardino Unified School District and Water Department properties should be included in the district. He questioned why the following sources of funding had not been discussed: gas tax money which is to be used for road improvements; federal aid, such as grant applications; and City special funds such as the street construction fund, the storm drain construction fund, and the traffic systems construction fund. He stated that his parents were being assessed $41,000 of which $20,000 was for paving purposes, 'not curb and gutter. He pointed out that this type of benefit assessment, according to the 1913 Act, was not an allowable federal or state income tax deduction. He explained that even though the assessment would appear on the tax bill from the county, many residents would claim the deduction, but the assessment cannot legally be claimed for tax purposes, per IRS rules. Mayor Holcomb explained that gas tax money must be used for the overall benefit of the City, to maintain existing pavements, 8 6/10/91 and for major improvements on main arteries, and cannot be utilized to install curbs and gutters for individual property owners. He felt that property owners should pay for curbs, gutters and sidewalks. He stated that the majority of residents pay for curbs, gutters, and sidewalks when they purchase their home, since the cost is included in the purchase price. Mayor Holcomb acknowledged that the assessment amount cannot be deducted from ordinary income, but explained that when you sell your property the amount can be added to the cost of the property and is therefore deductible. Roger Hardgrave, Director of Public Works/City Engineer, recommended the following options: 1) close the public hearing, which would prohibit submission of further protests, continue the item, and direct staff to work with the committee to prepare recommendations, or 2) continue the public hearing, which would allow additional protests to be filed. He stated that the contractor has agreed to extend the bid for thirty days which would allow the committee to work for four weeks and return with recommendations. Mayor Holcomb explained that the contractor's bid is approximately $1 million below estimate, and felt that if the bid process was started again the project would be more costly. He explained that normally during recessionary times bids are lower than during boom times. He stated that it was important not to lose a favorable bid that could result in potential savings for residents in the district. Renate Caine, 2630 West Cincinnati Street, San Bernardino, California, a resident of Verdemont for six years, expressed support for the committee, and stated that the improvements were needed. She expressed concern that certain projects would have negative impacts on the area, and gave the following as examples: apartment complexes, the after bay water project, a mobile home park on Kendall, and a toxic waste dump. Discussion ensued regarding the issues relating to the projects discussed by Ms. Caine. The Council explained that the City attempted to stop construction of the apartment complex, but lost the case in the State Supreme Court. The after bay water project was a State project, and the Environmental Impact Report (EIR) had already been performed before the Council had knowledge of the project. The City obtained several concessions from the State because of the way the project was handled, but there was no way to stop the project. The toxic waste dump was a hazardous waste transfer station that did not get built because of actions taken by the Council. The Council expressed concern that Ms. Caine had not presented the complete picture on these issues, and explained that on all these projects the City made efforts to stop them in some way or another, and had been 9 6/10/91 successful in most of them. Robert Johnson, 6315 Toledo Lane, San Bernardino, California, stated that he has lived in Verdemont for six years. He felt that development should be reduced until the infrastructure catches up with the population, then once the infrastructure has caught up with the population, it should be installed on an ongoing basis to keep pace with new development. He requested that the committee review problems with water runoff created by altering the grade of a lot to be compatible with surrounding lots. Lorelei D' Amico, 2635 West Belmont, San Bernardino, California, expressed concern over the flooding in the area of her home, and for the safety of children playing outside due to people speeding on the streets in the area. Yvonne Collette, 9433 Apricot Avenue, Alta Lorna, California, stated that she owns the property at the top of Magnolia and Ohio. She stated that a one lane dirt road serves the area and ends at Ohio. She expressed concern regarding the manner in which information regarding the Assessment District was communicated to property owners. Glen Gipson, 6495 North Palm Avenue, San Bernardino, California, pledged support for the committee. He stated that communication between the Council and Verdemont residents could solve a host of problems inherent to the area. He stated that 610 property owners are being assessed in this assessment district, which includes individual property owners, large property owners and some corporations. He explained that out of 610 property owners 460 have written letters of protest, and felt that 460 represented more than 51% of protests. Timothy Mack, 3144 West Kendall Drive, San Bernardino, California, stated that he has lived in Verdemont for thirteen years. He expressed opposition to the assessment district because other areas of the City, such as Northpark and "H" Street, have received traffic signals without the residents being charged an assessment. He felt that the culvert was necessary because residents have lost their lives being washed away during rain storms. He expressed concern for the families that would be unable to pay the assessment, and how they would be handled. Council Member Minor made a motion, seconded by Council Member Pope-Ludlam, and unanimously carried, to close the public hearing. Council Member Minor made a motion, seconded by Council Member Pope-Ludlam, and unanimously carried, to refer the mat~er to the committee, and to return with recommendations at the meeting of July 15, 1991, in the Council Chambers of City Hall, 10 6/10/91 300 North "D" Street, San Bernardino, California. Mayor Holcomb expressed confidence that the committee could formulate a solution that was both equitable and affordable to all parties involved. RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO RIVERSIDE CONSTRUCTION COMPANY FOR CONSTRUCTION OF REINFORCED CONCRETE BOX CULVERT, TRAFFIC SIGNALS, CHESTNUT AVENUE STORM DRAIN, AND PALM AVENUE IMPROVEMENTS. (Continued from May 20, 1991) (3) Council Member Minor made a motion, seconded by Council Member Pope-Ludlam, and unanimously carried, that the resolution awarding a contract to Riverside Construction Company for construction of reinforced concrete box culvert, traffic signals, Chestnut Avenue storm drain, and Palm Avenue improvements, be continued to July 15, 1991, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. A RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING THE PUBLIC REPORT OF THE CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 995. (VERDEMONT AREA) (Continued from May 20, 1991) (4) Council Member Minor made a motion, seconded by Council Member Pope-Ludlam, and unanimously carried, that the resolution amending the Public Report, Facilities District No. 995, (Verdemont Area), be continued to July 15, 1991, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. CLOSED SESSION The Mayor and Common Council did not session during this Meeting. (5) adjourn to closed ADJOURNMENT (6) At 9:38 p.m., Mayor Holcomb adjourned the Adjourned Regular Meeting of the Mayor and Common Council to Monday, June 17, 1991, at 8:30 a.m., in the Council Chambers of City Hall, 300 North '''D'' Street, San Bernardino, California. No. of Items: 6 RACHEL KRASNEY City Clerk By ~a~6'; ~-c... Melanie Vale Deputy City Clerk No. of Hours: 2 11 6/10/91