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HomeMy WebLinkAboutR02-RDA Minutes - .. o 0 Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Member Jess Flores and Committee Member Michael Mauds1ey. STAFF PRESENT . . Robert J. Temple, Acting Agency Administrator, EDA; Ken Henderson, Executive Director, RDA; Gary Wagoner, Project Manager, RDA; Susan M. Morales, Project Manager, RDA; Phil Arvizo, Executive Assistant to the Council; Mayor W. R. Holcomb; Lorraine Velarde, Executive Assistant to the Mayor; Dennis A. Barlow, Senior Assistant City Attorney; Fred Wilson, Assistant City Administrator; Larry Reed, Director of Bulldlng & Safety; Barbara Lindseth, Accounting Manager, RDA; Kimberly A. King, Secretary, RDA; Deborah Marez, Transcribing Secretary, RDA. , o OTHERS IN ATTENDANCE Tim Sabo, Attorney, Sabo & Green; Charles Green, Attorney, Sabo & Green; Gene Wood of Wood-Husing & Associates. 1. Agreement for Special Counsel Services Attorney Barlow informed the Committee that the firm's name had changed since the last Committee meeting. Instead of Hawkins, De1afie1d & Wood, the firm is now called .Sabo & Green". Mr. Robert J. Temple stated that the Agreement was brought back for recommendation of approval. Mr. Charles Green and Mr. Tim Sabol principals for the Agreement, were present and prepared to answer any questions. Chairwoman Estrada asked if there were any changes in the fee schedule. Mr. Sabo said that there were none. Mayor Holcomb asked if there was travel time included in the Agreement. Mr. Sabo said there was none. Committee Member Flores asked what bearing this agreement had on other special counsel service agreements. Attorney Barlow stated that both agreements were non-exclusive and that the Committee could use the other firm if desired. o RECOMMENDATION The Committee recommended that the Agreement for Special Counsel Services be forwarded to the Commission meeting of October 1, 1990 for approval. .I'l .. o o o 2. City/RDA Newsletter & Marketing Effort Ms. Lorraine Velarde passed out a memorandum pertaining to the layout, cOntent and estimated cost~ of the proposed city-wide newsletter which was ready for final review and layout. Several samples of neWsletters were available for the purpose of visual presentation. Bids were received from DiLine Printing, Franklin Press, Crown Printers, Victory Press and Cal Graphics. The estimated printing costs range from $4,795.00 to $6,515.B5 per issue. Estimated costs for photo processing ranged from $100 to $150 per issue. Postage costs, utilizing the City's bulk mail permit, for an anticipated 65,000 newsletters per issue was estimated at $6,300. The total estimated cost per issue was $11,450.00. Ms. Velarde noted that an Editorial Committee, comprised of key people in the city.- was formed and they came up with six topics they felt were critical to this first issue. She mentioned that a special election issue was a future intent for a special newsletter edition. Committee Member Maudsley arrived at 4:10 p.m.. A lengthy discussion ensued regarding quality, color, types of articles, and number of pages for the newsletter. Committee Member Flores stated that he would like to see a quality product reach the citizens and was in favor of an all color newsletter with critical information and not too many pages. He- said to consider the literature already sent to the citizens through other tity sources such as Parks & Recreation. o o Mayor Holcomb stated that quality, content and appearance was essential and wanted the newsletter to be used as a vehicle to educate, inform and prepare the public for changes within the City. He recommended expanding the newsletter to eight col,r pages, as well as include a centerfold Questionnaire for the citizens completion. The questionnaire would be self-addressed and postage paid. Committee Member Maudsley noted that although he felt that eight pages of good, solid information was a worthwhile public goal; he was concerned with the tight budget at this point in time; He felt that an elaborate newsletter would invite publiC censure of budget spending. Chairwoman Estrada said that the newsletter should inform and educate the citizens, as well as be used as a marketing tool for the City. She suggested that instead of putting a cap on the number of pages, to put a ceiling on the dollar amount; and recommended that the expenditure should not exceed $15,000, to be funded 50% by the City and 50% by the Agency. This would allow channeling the money, based on each newsletter's need. A lengthy discussion ensued regarding the funding of the newsletter. Mayor Holcomb inquired as to the legal options of the newsletter being paid out of the redevelopment fund. Mayor Holcomb recommended that the funds be _ absorbed on a SO/50 basis between RDA and the City. He suggested that there be at least one major article on the front of the newsletter dealing with redevelopment. Mr. Sabo said that he would look into the legal implications for RDA funding. In terms of financing the newsletter, Ken Henderson recommended allocating the cost based on the percentage of redevelopment project areas. .. _ . Redevelopment Agency Committee Minutes - 2 - September 20, 1990 5203R . c o o o o. RECOMflENDATION The Committee recommended that the City/RDA Newsletter and. Marketing Effort be forwarded to the Commission meeting of October 1. 1990 for approval based on the foll~ing recommendations: a. That the costs be divided on a SO/50 basis between the City and the Redevelopment Agency. Mr. Sabo will explore RDA financing of the newsletter. b. Ms. Velarde will provide cost estimates at the Commission meeting on overall costs for additional pages of color processing. 3. Thrifty Building Financing Briefing MaYOr Holcomb stated that the Thrifty Building was 'paid for from tax increment from the State College project. He indicated that this was paid for by tax increment which is restricte~ as bond proceeds. Bond proceeds are very restrictive and can only be used for public facilities or for land acquisition. The Mayor recommended that bond proceeds be used as the source to purchase the building; and then donate the building to the City of San Bernardino as a public facility and annex to City Hall. ' Mr. Sabo stated that the building could be purchased out of tax increment. First. the building would be separated into two portions ~- the City Hall Annex and the commercial annex. As long as the purchase is for some redevelopment purpose. the commercial portion could be held for an indefinite period of time. He did not see a problem with the Agency holding the commercial remainder piece for some indefinite period of time; although the idea would be to either make it public or to resell it. The top floors. 'which would be the City Hall Annex. can be tax exempt and financed as a public facility and that would free the ~ity from tax increment. Mayor Holcomb stated that it would free the City of tax increment and it would provide more flexibility to use tax increment money. Tax increment money can be used on assisting private development; but bond proceeds cannot be used ~or assisting private development. He recommended that. to get the maximum flexibility. to get and use as much of the cost out of bond proceeds and the remainder' out of tax increment. and have the title go to RDA as far as commerical purposes are concerned. . Committee Member Maudsley requested that other options be explored. 'including selling the building and leasing the space that was needed, before a decision is made. He was especially concerned because the City Administrator anticipated a 15% work reduction by layoff which would impact staffing personnel for the bUilding. Mayor Holcomb stated that he was hopeful that the future will bring growth in the community and the staff will be available to fill the building. Chairwoman Estrada inquired as to the deadllne regarding this issue. Ms. Velarde stated that some 'of the earlier bond proceeds have a deadline of March. 1991. Mr. Sabo stated that there is a three-year unlimited yield restriction on'the bonds which were purchased in March. 1988. Therefore. for three years you can earn unlimited yield; but beyond that. you have to yield restrict. Redevelopment Agency Committee Minutes - 3 - September 20. 1990 5203R o o o - - o o / RECOMMENDATION A recommendation was made to have Mr. Robert Temple, of the Redevelopment Agency, prepare' a memorandum detailing the options regarding the Thrifty Building Financing. ,The information should be sent to the full Commission as soon as it is prepared. The issue should be placed on the next Committee agenda to make recommendation for Commission~ 4. Wood-Husing Investment Policy Recommendations Mr. Temple, Acting Administrator, EDA, recommended to maintain the $10,000,000 inve~tment, of unencumbered funds, at the Local Agency's Investment Fund (LAIF). The RDA felt this was the best investment plan because of its flexibility for withdrawal; it would help secure the line of credit; it had a better rate of return 'on security with the same security of CDs; and were within the investment policy guidelines. He further recommended that the Committee authorize and approve staff/Wood-Husing and Associates to . negotiate an' agreement with Wells Fargo Bank to provide investment services. Gene Wood commented on t~o remaining reco~ndations. One recommendation was to remain with the State, because of its high rate of return and availability to withdraw funds on 24 hours notice. The other recomme~dation was in line with the negotiations concerning the line of credit. Wood-Husing went to most of the institutions and looked at their yields, , and worked within the investment policy. Wood-Husing'agreed with the RDA's Staff Report recommendations except for paragraph 3. He stated that there were a couple of institutions in town that did not have the highest investment returns as reported -- they were not even paying interest on overnight deposits. He explained that there were other, more lucrative investments that could be considered in the future. Committee Member Mauds1ey asked about the RDA's action plan for monitoring the investment return. Barbara Lindseth reported that the returns will be monitored on a weekly basis and summarized monthly. If the return does not meet the RDA's expectations, the issue will be brought to the attention of the Committee for discussion and recommendation. Chairwoman Estrada asked whether the investments were subject to penalty if withdrawals are made. Mr. Gene Wood stated that the diversification of the $10,000,000 in the L.A.I.F. allows for immediate cash aotessibi1ity. Inthe case of unforeseen occurrences. the funds were invested in such a way that the CDs matured on a daily to weekly basis. ' RECOMMENDATION The Committee recommended that the item be forwarded to the Commission for approval. Redevelopment Agency Committee Minutes - 4 - September 20. 1990 5203R - . . o o o 5. AlEND MTVPAlt BYLAWS Mr. Temple requested that the Committee approve the amendment to the Bylaws as recolllllended by the Mt. Vernon Corridor Project Area Committee (PAC). The amendment to Section VI reflected a change i,n the nuntler required for vote from .2/3. to a .a majority.. Sue Morales noted that the Mt. Vernon PAC, which meets monthly, lost two of the fifteen members. RECOMftENDATION The Committee recommended that the item be forwarded to the Commission'on October 1, 1990, for approval. 6.' URBAN FUTURES AMENDMENT Mr. Temple requested that the Committee approve the recolllllendation to authorize the Executive Director of the Redevelopment Agency, Ken Henderson, to execute a Contract Amendment with Urban Futures, Inc. for redevelo~nt plan adoption and related environmental consulting services for the Mt; Vernon Corridor Project Area in the amount of up to $170,000. Sue Morales, Project Manager, provided a review of the Detailed Synopsis of Accounts and authorizations for the Committee's information. o RECOMMENDATION' The Committee recommended that the item'be forwarded to the Commission on October 1, 1990, for approval. Mr. Robert Temple asked to hear Item 8 next. 8. 40th STREET PLAN - BENEFIT RESOLUTION FOR STATE COLLEGE (Verbal Update) Taken out of order. o Mr. Reed explained that the project was delayed due to illness, workload and staffing problems. Other options were considered. and they were now prepared to start work on the 40th Street Plan the first week of October. The documents will be assembled and brought back to the Committee for addition\l project planning at the second meeting in October. An Interview Committee selected The Arroyo Group as the consultant firm. The group is comprised of a team of various kinds of firms providing a multitude of services. Chairwoman Estrada asked about the proximity of this project to the State College Project area. Mr. Temple estimated that 200 yards ran into the State College Project area, but noted that it was continguous and benefited the project. RECOIlMENDATI ON The Committee recommended that the 'item be brought back to the Committee at their meeting of October 25, 1990 for verbal update. Redevelopment Agency Committee Minutes - 5 - September 20, 1990' 5203R . . o o o . o 7. 20S ORDINANCE REVISIONS o Mr. Dennis Barlow explained that these ordinances were adopted on April 2, 1990. These would make the necessary changes to bring the RDA's current project area in conformance to current law and make accounting easier. He mentioned that typographical errors occurred between the City, RDA and Special Counsel, but had no impact on the intent. The ordinances have been corrected as presented for the Committee. Mr. Temple noted that the amendments allowed the Agency to increase the tax increment limit, so that the Agency is not having to take 20% out of the existing limit. RECOMMENDATION The Committee recommended that the item be forwarded to the Commission on October 1, 1990 for adoption an4 for approval. ClOSED SESSIONS The Redevelopment Agency Committee adjourned to closed session at 5:27 p.m. Pursuant to Government Code Section 54956.8, the Redevelopment Committee of the Community Development Commission/Redevelopment Agency of the City of San Bernardino convened in closed session to discuss with its negotiator the purchase, sal~, exchange or lease of real property, and give instructions to its negotiator concerning the price and terms of paYment for the purchase, sale, exchange or lease of real property at 5:27 p.m.. Pursuant to Government Code Section 54957, the Redevelopment Committee of the Redevelopment Agency of the City of San Bernardino convened in closed session to consider personnel matters at 5:27 p.m.. The Redevelopment Agency.Committee reconvened from closed session at 5:45 p.m... Adjournment . There being no further business, the meeting of September 20, 1990 was adjourned at 5:45 p.m.. . APPROVED BY: ~~~ Redevelopment Committee EE:dm ~~ Redevelopment Agency Committee Minutes - 6 - September 20, 1990 5203R o o o - ~- o o REDEVELOPMENT COMMITTEE M I N U TE S . REGULAR MEETING October 18, 1990 - 4:14 p.m. The meeting of the Redevelopment Committee was called to order by Chairwoman. Esther Estrada at 4:14 p~m., in the Redevelopment Agency Conference Room, Fourth Floor, City Hall, 300 North -D- Street. San Bernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada and Committee Member Jess Flores. STAFF PRESENT Robert J. Temple,. Acting Agency Administrator, EDA; Ken Henderson, Executive Director, RDA; John Hoeger, Development Manager, RDA; Susan M. Morales, Project Manager. RDA; Phil Arvizo. Executive Assistant to the Council; Mayor W. R. Holcomb; Lorraine Velarde, Executive Assistant to the Mayor; Dennis A. Barlow, Senior Assistant City Attorney; John T. Cole. Council Office; Larry Reed, Director of Building & Safety; Deborah Marez, Transcribing Secretary, RDA. , OTHERS IN ATTENDANCE Rick DeZorzi, Lemans Nissan, President SBAPA; Bob. Stallsmith, Harmon Auto Center; and Vince Mascaro,. Royal Chrysler Plymouth/Suzuki. All are members of the San Bernardino Auto Plaza Association (SBAPA). PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA. There were no publiC comments. Kenneth Henderson requested to take Item No. 2 out of order. 2. Auto Plaza Electronic Reader Board Kenneth J..Henderson explained that many dealerships in the San Bernardino Auto Plaza have limited, or no freeway exposure, thereby causing a great number of people to continue to be unaware of their location. The current sign is difficult to read at a glance and the San Bernardino Auto Plaza Association (SBAPA) feels that if a highly visible electronic reader board is installed, that would serve for effective marketing for the dealerships within the Plaza. . The cost and the installation of the sign is estimated at $118.000, plus fees and permits. This estimate is based on the use of the existing posts and substructure of the current sign, with removal of the top portion, which would be replaced with the electronic equipment. . The recommendation to the Committee is that the Agency participate in an amount not to exceed $60,000. 'J I o Q o j - .- o o Chairwoman Estrada asked the SBAPA if there was anything else that the Agency could share costs in order to enhance the proposed sign. She was concerned about the intense Auto Mall competition among cities and suggested that the reader board be more elaborate. COMMITTEE MEMBER MICHAEL MAUDSLEY ENTERED MEETING. Rick DeZorzi, President of the San Bernardino Auto Plaza Association, noted that they have had to turn.down several bids, simply because they could not afford the costs. He felt that the proposed sign would be adequate, and the amount of $60,000 within SBAPA's budget. In reality, the RDA is paying half, but the SBAPA is paying quite a bit more than that because they financed the original sign at 100%. Bob Stallsmith pointed out that the Inland Empire is one of the seven fastest growing areas in the United States. The Auto Plaza is in competition with Corona, Ontario. Riverside, etc., and not having a reader board has put the Plaza in a tremendous disadvantage. Furthermore, he urged that the installation of the sign be started as soon as poSSible because of daylight savings time. Mr. Henderson said that the sign will be a tremendous benefit to the Auto Plaza as well as the City of San Bernardino. The Association has volunteered to donate time on the electronic reader board for public service announcements and positive image building announcements for the City of San Bernardino. Sue Morales informed the Committee that Corona paid $360,000 for their sign, and Ontario purchased their sign for $218,000. The Redevelopment Agency of the cities of Ontario and Corona contributed $6,000,000 and $15,000,000, respectively, for mall development activities. There was a significant bidding war between Corona and Ontario regarding dealerships and location. John Hoeger mentioned that the RDA had contributed assistance totaling $1,000,200 towards overall improvements; although, they did not speCifically pay for the sign itself. Member Jess Flores indicated he would like to see signal lights installed for more efficient, safer traffic circulation. The SBAPA agreed that the installation of signal lights would help control traffic and reduce accidents due to bad weather conditions. Chairwoman Estrada suggested that we proceed. with the reader board and do a follow up on what other things we might be able to do to enhance the Auto Plaza. RECOMMENDATION The Committee recommended that Agency Counsel prepare an Agreement with the San Bernardino Auto Plaza Association for one-half of the cost and installation of an electronic reader board for the San Bernardino Auto Plaza, and to authorize an increase in the Agency's budget of $60,000. The Committee recommended that the item be forwarded to the Commission on November 5, 1990.for approval. -- RDA COMMITTEE MEETING MINUTES - 2 - OCTOBER lB, 1990 5220R o o o - - o o 1. Chuck King & Associates Settlement Kenneth Henderson briefed the Committee on the background of the Agency's agreement with King Industrial Park/San Bernardino Industrial Park. Inc.. which went into default in 1981.. Through litigation. the Agency has been successful in collecting $20.000. Upon receipt of the remaining ~8.000 owed to the Agency. Certificates ,of Completion may be issued for those affected parcels. Therefore. the staff recommended adoption of the form motion which would authorize the Executive Director to execute the Partial Certificate of Completion. REClMlENDATlON The Committee recommended the Partial Certificate of Completion be forwarded to the Commission meeting of November 5. 1990 for adoption. Commission to authorize Staff to execute that Partial Certificate of Completion. 3. RFQ For Redevelopment Services Staff made an oral presentation regarding the Nt. Vernon specific/theme plan including. but not limited to the following: 1) Pros and cons of theme versus theme plans; 23) Business failure rate; ) Underlying commercial viability; 4) City Enterprise Zone Application to the State; 5) Trade area concerns. A lengthy discussion ensued amongst Committee members and Staff regarding the feasibility about a specific plan theme area, the manner in which the development projects in the pipeline will be handled. and the need to ~ve ahead as quickly as possible on the resolution of these issues. The Committee members also expressed the desire to maintain thematic continuity throughout the project area and limiting the number of specialty stores. RECOMMENDATION The Committee recommended that the Staff prepare a speCific work plan and bring back recommendations of the firm to accomplish the tasks on November 8. 1990. 4. Agency Tuition Reimburse.ent Policy A recommendation to allow for the 100% reimbursement of the cost of tuition and books for Agency employees who enroll in academic or certificate programs that are required for a specific degree and to enhance their ability RDA COMMITTEE fEETlNG MINUTES - ':I _ OCTOBER 18. 1990 f"n"'^... o o o - - I" - - o o to accomplish their functions more ,efficiently, was presented by Kenneth Henderson. A grade of .C. or better must be achieved by the employee io qualify for reimbursement. He also noted that the amount reimbursed is based upon tuition costs for the same or similar cOursework charged by the University of California, California State University or Community College District systems. Committee Member Flores questioned what the requirements were in place pertaining to the ongoing City employment aft.r the academic degree has been conferred. 'Mr. Henderson said that he looked into this matter and discovered that such requirements cannot be included because they cannot be enforced. 'Discussion ensued concerning the budgetary impact this program would have on the City, the types of classes reimbursable, the application and approval process, and tuition reimbursement programs at other agencies. RECOMMENDATION The COl\IR1ttee recolllRended that this item be forwarded to the COl\IR1ss1on for approval on November 5, 1990. CLOSED SESSION The Redevelopment Committee recessed to closed session at 5:10 p.m. Pursuant to Government Code,Section 54956.9(c), the Redevelopment COl\IR1ttee of the Redevelopment Agency of the City of San Bernardino convened- in closed session to discuss possible litigation at 5:10 p.m. ,The Redevelopment COl\IRittee reconvened from closed session at 5:45 p.m. Adjourllllent There being no further business, the meet1n9 of October 18, 1990 was adjourned at 5:45 p.m. RDA COMMITTEE MEETING MINUTES - 4 - OCTOBER 18, 1990 !;"OR