HomeMy WebLinkAbout12-07-1989 Minutes
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City of San Bernardino, California
December 7, 1989
This is the time and place set for an Adjourned Regular
Meeting of the Mayor and Common Council/Community Development
Commission of the City of San Bernardino at the Regular Meeting
held at 8:40 a.m., Monday, December 4, 1989, 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 Monday, December 4, 1989, 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
11:45 a.m., Tuesday, December 5, 1989, in the Council Chambers
of City Hall, 300 North "D" Street, San Bernardino, California.
The Adjourned Regular Meeting of the Mayor and Common
Council/Community Development Commission of the City of San
Bernardino was called to order by Mayor Holcomb at 5:34 p.m., in
the Council Chambers of City Hall, 300 North "D" Street, San
Bernardino, California.
ROLL CALL
Roll call was taken by Deputy City Clerk Reese with the
following being present: Mayor Holcomb; Council Members Reilly,
Minor, Pope-Ludlam, Miller; Deputy City Clerk Reese. Absent:
Council Members Estrada, Flores, Maudsley; City Attorney Penman,
City Administrator Julian.
PUBLIC COMMENTS
There were no public comments.
(1)
MAYOR'S COMMENTS - USE OF NORTON AIR FORCE BASE FACILITY
Mayor Holcomb referred to the recent newspaper articles
regarding a proposal for use of a portion of Norton Air Force
Base by Lockheed, which had not been accepted. He stated that
he felt that the stories and editorials were misleading. He
announced that he has called a news conference for Monday,
December 11, 1989, at 9:30 a.m., in the Management Information
Center (MIC), Sixth Floor of City Hall, to clarify the issue.
The news conference will not be televised live, but will be aired
on Channel 3 that evening at 5:00 p.m., 7:00 p.m., and 9:00 p.m.
Mayor Holcomb explained that the Lockheed proposal came
before the Norton Economic Expansion Committee without any prior
briefing, and many details need to be worked out. He expressed
confidence that the Committee will consider this and other
proposals for providing the best use for the facilities at Norton
Air Force Base.
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SENIOR ASSISTANT CITY ATTORNEY BARLOW ARRIVED
At 5:35 p.m., Senior Assistant City Attorney Barlow arrived
at the Council meeting.
COUNCIL MEMBERS FLORES AND MAUDSLEY ARRIVED
At 5:36 p.m., Council Members Flores and Maudsley arrived at
the Council meeting and took their places at the council table.
ENCROACHMENT FEE FOR UTILITY LANE CLOSURE
In a memorandum dated December 6, 1989, Manuel P. Moreno,
Jr., Director of Public Services, presented a proposed resolution
and urgency ordinance relative to the imposition of a fee for
encroachments on city streets by utility companies performing
repair or construction work. (4)
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO ESTABLISHING AN ENCROACHMENT FEE FOR UTILITY
LANE CLOSURE. ( 4 )
AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING
SECTION 12.04.055 TO THE SAN BERNARDINO MUNICIPAL CODE
RELATING TO AN ENCROACHMENT FEE FOR UTILITY LANE CLOSURE.
(4)
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Mayor Holcomb expressed concern about traffic congestion
when utility companies make repairs on underground utilities and
block off travel lanes on major thoroughfares during heavy
traffic hours.
Lorraine Velarde, Executive Assistant to the Mayor, stated
that Fred Wilson, Assistant to the City Administrator, and she
had talked with a representative of each of the utilities
companies and that a meeting has been scheduled for City staff
and utility company representatives on December 13, 1989, at
10:00 a.m., to discuss these concerns.
Jim King, District Manager for Southern California Gas
Company, 624 West Fourth Street, San Bernardino; Sue Noreen,
Area Manager for Southern California Edison, Pepper and Foothill,
San Bernardino; and Bob Traister, District Manager for GTE,
California, San Bernardino' District, 1796 North "I" Street, San
Bernardino, were present. They requested that this item be
continued to provide an opportunity to discuss the problems with
City staff.
CITY ADMINISTRATOR JULIAN ARRIVED
At 5:43 p.m., City Administrator Julian arrived at the
Council meeting.
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Sue
kept its
Noreen explained that California Edison Company has
crews out of the downtown area during the holiday
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seasons because of the concern regarding
stated that Edison has spent much time and
utilities to improve the City's appearance.
maintain the utilities, it is necessary to
heavy traffic. She
money to underground
However, in order to
work on the streets.
COUNCIL MEMBER ESTRADA ARRIVED
At 5:45 p.m., Council Member Estrada arrived at the Council
meeting and took her place at the council table.
Mr. Traister also stated that GTE does not do repairs on
major thoroughfares during the holiday seasons. He explained
that GTE would cooperate with the City and try to work evenings
and week-ends, but in emergency situations this is not always
possible.
Mr. King stated the Southern California Gas Company also
recognizes the holiday season and does not do any non-essential
work. He explained the Gas Company works with the City to
determine the best hours to do repairs.
Council Member Minor made a motion, seconded by Council
Member Estrada and unanimously carried, that the proposed
encroachment fee resolution and urgency ordinance be continued to
December 18, 1989, in the Council Chambers of City Hall, 300
North "D" Street, San Bernardino, California.
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CAPITAL IMPROVEMENTS PROJECTS - UTILIZING RDA AND CITY
BOND PROCEEDS AND OTHER FUNDS - RECOMMENDATIONS,
PRIORITIZATION AND IMPLEMENTATION
In a memorandum dated December 7, 1989, City Administrator
Julian presented five lists marked Items 1 through 5 with
suggested projects to be considered for prioritization and
implementation of capital improvements utilizing RDA and City
bond proceeds. (2)
Item 1 provided a list of residential street and city
facilities paving - $497,500 (RDA share: $196,500)
Item 2 provided a list of proposed improvements to major
arterials - $270,000 (RDA share: $595,000)
Item 3 provided suggestions relative to improvements to
Council Chambers and City Hall lobby.
Item 4 provided a list of additional projects prepared by
the Public Works/Engineering Department for consideration within
RDA project areas.
Item 5 was a memorandum from the City Clerk regarding
priorities for the expenditure of bond proceeds.
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Barbara Lindseth, Accounting Manager, RDA, explained
concerns that were discussed at the RDA Committee meeting held
shortly before the beginning of this Council meeting. The
discussion centered around ways the agency funds the
administrative costs relative to project areas.
Mayor Holcomb stated that precise dollar amounts are not
needed at this time, but rather, a list of proposed capital
expenditures for various projects to be considered. He requested
that the Council identify projects that could be included for
use of future tax increment bond monies. He stressed the fact
that changes can be made in the list of proposed projects.
It was pointed out that there are several issues regarding
financing within the Central City Project area that are important
and should be addressed.
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Mr. Jim Iverson, Executive Vice President with Miller &
Schroeder, San Diego, California, explained that the numbers
indicate there will be approximately $34,700,000 available to do
redevelopment projects and an additional amount of approximately
$5,000,000 - a total of approximately $40,000,000 to do both
housing and redevelopment projects. The $5,000,000 represents
the 20% set aside amount for housing. This excess tax increment
would be flowing from the following RDA project areas: State
College, Southeast Industrial Park, Northwest, Tri-City, South
Valle and Uptown.
Mayor Holcomb stressed the importance of leverage of the
funds. He explained that there may be other monies available
from other sources, such as state, federal, county, and possibly
private matching funds, so that the best use of the bond monies
would be made.
Roger Hardgrave, Director of Public Works/City Engineer,
read a list of proposed projects in the following Redevelopment
Project areas: Southeast Industrial Park, State College,
Northwest, Tri-City, South Valle and Uptown.
Mr. Hardgrave answered questions regarding various projects
on the lists.
A suggestion was made that a signalized intersection be
created on Hospitality Lane between Waterman and "E" Street to
alleviate the heavy traffic congestion and to facilitate access
onto Hospitality Lane for property users on the north side of
Hospitality Lane.
Mr. Hardgrave suggested that Hospi tali ty Lane and
Commercenter East would be an appropriate location.
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The following improvements were also suggested to be added
to the list of proposed projects:
1. Palm Avenue, north of Kendall - widen to four lanes.
Reimbursement for this project may be provided by developers.
2. Pine Street, north from Kendall - widen and realign.
Mr. Hardgrave answered questions regarding funding for other
proposed projects. He explained that some of the projects have
been funded by FAU funds.
It was pointed out that most of the money proposed for the
Northwest Project area is to be spent outside the area. Concern
was expressed regarding the deficit condition of the project
area. It was suggested that the proposed funds be spent on
infrastructure and recreational programs in that project area, as
Delmann Heights Center and Johnson Hall both need a great deal
of repair work.
A discussion ensued regarding
the Northwest Project area.
the financial condition of
Tim Sabo, of Hawkins, Delafield and Woods Law Firm, 6320
Canoga Avenue, Suite 400, Woodland Hills, California 91367,
explained that basically, tax increment funds have to be used
within a redevelopment project area for public improvements. If
the funds are being used outside the area, findings have to be
made that those improvements will benefit that particular
project area. He gave the following example: a major
thoroughfare, such as Pepper-Linden, would allow traffic to go in
and out of the project area more easily.
Mayor Holcomb stated that RDA funds can be used for public
infrastructure improvements or for elimination of blight. He
questioned whether recreational facilities fall within either of
those categories.
Mr. Sabo stated that other cities
increment monies for public facilities.
priorities and determine the types of
generate new increments.
have worked with tax
It is necessary to set
improvements that will
Mr. Sabo answered questions, stating that decisions
regarding projects made tonight are not binding. He explained
that it is necessary to establish a list of needed projects in
order to have the bond issue. There has to be a certainty that
there are potential projects on which to spend those monies. He
stated that projects can be added, deleted, or substituted.
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Mr. Sabo answered questions regarding the use of tax
increment money for law enforcement uses. He stated it could be
used for capi tal expenditures, such as a substation, police
station, jailor communications equipment, but recommended that
it not be used for salaries or maintenance.
Council Member Estrada made a motion, seconded by Council
Member Flores and unanimously carried, to approve the list of
proposed projects as submitted by Roger Hardgrave, Director of
Public Works City Engineer for consideration, with the following
additions: signalized intersection on Hospitality Lane between
Waterman and "E" Street (possibly Hospitality Lane and
Commercenter East); widen Palm Avenue north of Kendall to four
lanes; widen and realign Pine north of Kendall; improvements to
infrastructure and park facilities in the Northwest Project area,
such as Delmann Heights Center and Johnson Hall, if they qualify
as public improvements. (See page 6 for further action)
LOAN WITH FIRST INTERSTATE BANK - EARLY PAYOFF - CONTINUED
FROM DECEMBER 4, 1989
This is the time and place continued to for
regarding authorization of the early payoff of the
First Interstate Bank.
discussion
loan with
(3)
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In a memorandum dated November 27, 1989, Robert J. Temple,
Acting Executive Director, Redevelopment Agency, explained the
background of the loan of $1,300,000 from the First Interstate
Bank of California for the acquisition of the Northwest Project
area shopping center site. It was recommended that this loan be
retired before the maturity date of February 20, 1994.
Mr. Temple, Acting Director, Redevelopment Agency, answered
questions regarding the financial benefits the Agency would
receive by early payoff on the loan to the First Interstate Bank.
He explained that the payoff would affect the cash position of
the Agency, but would save.the Agency money.
Council Member Miller made a motion, seconded by Council
Member pope-Ludlam and unanimously carried, to authorize the
Agency staff to payoff, before the maturity date of February 20,
1994, the loan with First Interstate Bank for the shopping center
site in the Northwest Project area.
CAPITAL IMPROVEMENT PROJECTS (CIP) - PRIORITIZATION AND
IMPLEMENTATION, UTILIZING RDA AND CITY BOND PROCEEDS
AND OTHER FUNDS - RECONSIDERATION (See page 6)
Council Member Estrada made a motion, seconded by Council
Member pope-Ludlam and unanimously carried, that the item
regarding capital improvement projects prioritization and
implementation utilizing RDA and City bond proceeds and other
funds be reconsidered. (2)
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City Administrator Julian answered questions regarding his
memorandum dated December 7, 1989, with recommendations for
prioritization and implementation of capital improvement
projects. He explained that the five lists attached to his
memorandum list proposed projects submitted by City staff for
consideration. No monies would be spent until each project came
before the Council for approval.
Council Member Estrada made a motion, seconded by Council
Member Minor and unanimously carried, that approval be given to
include the following lists for consideration of the use of tax
increment funds:
Item #1 City share of residential street and city
facilities paving - $497,500 (RDA share: $196,500).
Item #2 - City share of improvement of major arterials-
$270,000 (RDA share: $595,000).
Item #4 - List of additional projects for consideration
within RDA project areas.
Council Member Estrada made a motion, seconded by Council
Member Minor, that approval be given to include the following
list for consideration for use of tax increment funds:
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Item #3 - Improvements to Council Chambers and City Hall
lobby.
The motion carried by the following vote: Ayes:
Members Estrada, Reilly, Flores, Minor, Pope-Ludlam,
Noes: Council Member Maudsley. Absent: None.
Council
Miller.
City Administrator Julian explained that form motion #1 on
his memorandum dated December 7, 1989, contained a reference to
money that has already been budgeted for 1989, and that bond
refinancing would be substituted for that amount. This would
free up approximately one-quarter of a million dollars in the
general fund.
Council Member Estrada made a motion, seconded by council
Member Minor and unanimously carried, that the sum of $257,600
be allocated from bond proceeds for street improvement projects
included in the 1989-90 budget.
MUTUAL BENEFIT RESOLUTION FOR VERDEMONT INFRASTRUCTURE
Documentation relative to this item was not available at the
time of this meeting. (5)
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Mayor Holcomb requested that this item
Community Development Commission/Redevelopment
the meeting of December 18, 1989.
be placed on the
Agency agenda for
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JPFA-7 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS
FINANCING AUTHORITY, APPROVING A LOAN AGREEMENT WITH THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO. (Thrifty Building) (R-1A)
JPFA-8 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS
FINANCING AUTHORITY, AUTHORIZING THE EXECUTION OF A LOAN
AGREEMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO. (Thrifty Building) (R-1C)
A discussion ensued regarding the financial condition of the
Central City Project area. It was agreed that the acquisition of
the Thrifty Building would be an asset to the project area.
Mayor Holcomb explained that the loans authorized by said
resolutions are being made to provide funds to close escrow on
the Thrifty Building. Once escrow closes on December 8, 1989,
then decisions will be made regarding further financing.
Mr.
answered
area.
Temple, Acting Director of the Redevelopment Agency,
questions regarding finances of the Central City Project
Jim Iverson, Executive Vice President, Miller & Schroeder,
answered questions regarding the financial condition of the State
College Project area. He explained that it is in very sound
financial condition.
Sr. Assistant City Attorney Barlow explained that the
portion of the Thrifty Building not occupied by the City can be
rented or leased to private enterprise, thereby creating tax
revenue for the city.
Council Member Miller made a motion, seconded by Council
Member Estrada that said resolutions be adopted.
Resolution
following vote:
Mauds1ey, Minor,
None.
Nos. JPFA-7 and JPFA-8 were
Ayes: Council Members Estrada,
Pope-Ludlam, Miller. Noes:
adopted
Reilly,
None.
by the
Flores,
Absent:
JPFA-9 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS
FINANCING AUTHORITY, AUTHORIZING THE EXECUTION OF A LOAN
AGREEMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO. (First Interstate loan) (R-2A)
JPFA-10 - RESOLUTION OF THE SAN BERNARDINO JOINT POWERS
FINANCING AUTHORITY, APPROVING A LOAN AGREEMENT WITH THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO. (First Iriterstate loan) (R-2C)
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Council Member Estrada made a motion, seconded by Council
Member Pope-Ludlam, that said resolutions be adopted.
Resolution Nos. JPFA-9 and JPFA-IO were
following vote: Ayes: Council Members Estrada,
Maudsley, Minor, pope-Ludlam, Miller. Noes:
None.
adopted
Reilly,
None.
by the
Flores,
Absent:
CLOSED SESSION
At 7:07 p.m., Council Member Estrada made a motion, seconded
by Council Member Miller and unanimously carried, that the
meeting recess to Closed Session pursuant to the following:
to confer with the attorney regarding pending litigation
pursuant to Government Code Section 54956.9(b)(1), as there
is significant exposure to litigation; (6d)
to confer with
which has been
party pursuant
follows:
the attorney regarding pending litigation
initiated formally to which the City is a
to Government Code Section 54956.9(a) as
(6f)
C.F.B. Investments. Ltd. vs. Citv of San Bernardino-
United States District Court - Case No. SA CV89-862 JSC
(RSRx)
CLOSED SESSION
At 7:07 p.m., the closed session was called to order in the
conference room of the Council Chambers of City Hall, 300 North
"D" Street, San Bernardino, California.
ROLL CALL
Roll call was taken with the following being present: Mayor
Holcomb; Council Members Estrada, Reilly, Flores, Maudsley,
Minor, pope-Ludlam, Miller; City Attorney Penman, Deputy City
Clerk Reese. Absent: City Administrator Julian.
Also present: Sr. Assistant City Attorney Barlow.
EXECUTIVE ASSISTANT LORRAINE VELARDE ARRIVED
At 7:08 p.m., Executive Assistant to the Mayor Lorraine
Velarde arrived at the closed session.
CITY ADMINISTRATOR JULIAN ARRIVED
At 7:09 p.m., City Administrator Julian arrived at the
closed session.
DEPUTY CITY CLERK REESE EXCUSED
At 7: 10 p. m. , Deputy Ci ty Clerk Reese left the closed
session.
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ADJOURN CLOSED SESSION
At 7:23 p.m., the closed session adjourned to the Adjourned
Regular meeting of the Mayor and Common Council/Community
Development Commission/Redevelo{lment Agency in the Council
Chambers of City Hall, 300 North "D" Street, San Bernardino,
California.
RECONVENE MEETING
At 7:23 p.m., the Adjourned Regular meeting of the Mayor and
Common Council/Community Development Agency/Redevelopment Agency
reconvened in the Council Chambers of City Hall, 300 North "D"
Street, San Bernardino, California.
ROLL CALL
Roll call was taken by Deputy City Clerk Reese with the
following being present: Mayor Holcomb; Council Members Estrada,
Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; Sr.
Assistant City Attorney Barlow, Deputy City Clerk Reese, City
Administrator Julian. Absent: None.
ADJOURN MEETING
At 7:24 p.m., Council Member Estrada made a motion, seconded
by Council Member Flores and unanimously carried, that the
meeting be adjourned to 8:30 a.m., Monday, December 18, 1989, in
the Council Chambers of City Hall, 300 North "D" Street, San
Bernardino, California. (7)
It~
Deputy
~k
No. of items: 9
No. of hours: 2
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