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July 21, 1997
Mayor and Common Council
City of San Bernardino
300 North "0" StR:et
San Bernardino, California 92418
RE: Respectful Request of Warner Hodgdon to
Correct the Draft June 2. 1997 Council Meeting Minutes
...:::'--
Monday, July 21, 1997 - 8:00 A.M.
Regular Meeting of the Mayor/Common Council
Agenda Item 7. Council Minutes
Approval of June 2, 1997 Minutes as
submitted in typewritten fonn
Dear Mayor and Common Council:
You have before you today, Monday, July 21, 1997, Agenda Item 7, your June 2, 1997
meeting minutes as submitted in typewritten form for your approval (See attached).
,
Thank you for allowing me to address these June 2, 1997,.yet to be approved minutes and
specifically page five (5) thereof, under Public Comment by Warner Hodgdon. These comments
were related to my son's corporation, Rancho San Andreas Company.
I have read this particular portion of the Draft June 2, 1997 minutes on Friday, July 18,
1997 and found them to be grossly inaccurate and misleading. They are the following, Ouote:
"Warner Hodgdon. 3295 Broadmoor, San Bernardino, CA, stated that his family
has never sued the city until now and submitted a bound report dated may 29, 1997,
concerning dedicated Sterling Avenue area/north and Daley Canyon Road.
"City Attorney Penman stated that Mr. Hodgdon initiated the lawsuits because he
contends that the city did not provide information; however. his claims are false."
I cast no doubts whatsoever as to whether the above misleading inaccuracies were
intentional or unintentional. However, I am compelled to respectfully request from this august
body that they be corrected in total and in order that the Public Record unquestionably reflects the
truth of the matter.
Therefore, on the afternoon of Friday, July 18, 1997 I requested and received from the
Council's office and paid the City Treasurer's office $9.50 for a copy of the Audio Tape covering
the June 2, 1997 meeting. This covered my three (3) minute comment during the Agenda's Public
Comment period. They were the following; Ouote:
"Thank you mayor and council persons. / deeply appreciate the opportunity to speak
with you this morning under the limited three minutes. My discussion today is
regarding the areas of dedicated Sterling Avenue, and to bring to your attention that
. on May 19. /997. at your last meeting the final map was submitted by Redlands
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Federal Bank, so that they could release their $1.3 million clolJar Instrument of Credit
for Peif017TU1llCe and ObUgalion to the City, was approved by this august body.
However, never before, and 1 clo not beUeve this body understood at that particular
time on May 19,1997, that through the lnepmus of the planning and CltyAltorney
offices that their engineers included reiection of acceotinl! D':!Rc Canvon Road and
the slooe easements thereto. 1 believe this IS a very sig icant oversight and
misrepresentation to the effect parties also. ~ ._ ._
In addition I understand by reading the Agenda t . that under the closed sdSion
was discussed Rancho San Andreas Company vs City of San Bernardino (City
Attorney's offICe and City Water Dept). Thatfirm' owned by my sons and I would
like to put on the record that my family has never c st a lawsuit agalnst anyone in our
entire Uves since we hove been in San Bernardino since 1847. However, we had no
alternadve from the standpoint that we had iJSUd under the code for disclosure of
public clocuments form the Water Department and the City AttorMj'S ojJice which
they refused.
In addidon you may also like to see what the issue was of dedicated SterUng Avenue
so I have prepared this book and put it on all of your desk for you to understand the
full impacts. It also shows the massive grading clone by the City and autharized by
agreement through the City Attorney's office, massive grading, unpermitted code
violadons in the Daley Canyon stream bed and also the SterUng Avenue Area; the
subject of the Redlands Bank scheme and sUght of hand to release themfrom the $1.3
million clolJar bond and obUgadon to the City.
This is backed-up by photoiogs of the actual D-9 turbo charged bull-ciozer
authorized by the planning and City Attorney's office to clo this massive grading, and
including by the water department.
Ironically, by January 26, 1996 agreement enforced by the fISh and game expert and
Attorney General's expert they have enforced this violation of 1601 retroactively 0 n
the City of San Bernardino and told them to fIX up this massive grading violadon.
Thonk you for letting me submit this to you. I respectfully request, and especially to
Jerry Devlin, Council DevUn, to please take the opportunity to read this report and
look at the photologs that I have set before you and please call me if we can tolk to
you individually regarding this.
Thonk you, I submit this for the Public Record to the City Attorney and the City Clerk
(June 2, 1997 Letter Request).
Incidentally I agree, I think our City Charter is well in hand the way it is."
2
As allowed by Mayor Minor, the following are City Attorney Penman's total added
comments; Ouote:
"Your honor. thonk you just a brief comment. The Attorney General of the State of
California and City Attorney's office has some time ago filed a law suit against San
Andreas Corporadon and against Mr. Hodgclon and we are involved in litigation that
has to clo with acdvities that went on in the foothills allegedly conducted by Mr.
Hodgclon. Mr. Hodgclon's comment just now at the podium that we refused to give or
provide clocument is absolutely false. Between the water department and City Attorney
we have provided numerous boxes of documents and everything he asked for that we
had has been provided to him. He has chosen not to believe this and he has filed a
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lawsuit to compel us to turn over other documents that he apparently thinks that we
have. ThanJc you."
. Ccnainly the above COOlIDCIlts made by me during the June 2.. 1997 allowed three minllte
Public Oomment period arc a far cry from those portrayed within the June 2. 1997 Draft Mayor
and Common Council's minutes.
For your further clarification, provided herewith is a copy of my May 29,1997 Letter
Rcpolt sulxnitted to the Mayor and Common Council, Oty Attorney and Oty aerie for the Publi(: ..
Record at the June 2. 1997 Mayor and Common Council's Regular Meeting. ..,..-
I rcspectfully submit this July 21, 1997lcuec to the Mayor and Common Council and Oty
aerie for the Public Record. In addition I n:spectfu1ly n:qucst the Mayor and Common Council to
make and approve the appropriate motion for the June 2. 1997 minutes to include my and the Oty
Attorney's total comments as referenced above (See attached). .
I have made my best written efforts to quote the June 2, 1997 meeting's audio tape per the
applicable total comments as they were addressed. I further understand that the Oty aerie will
compare pare this for accur:a<:y and for inclusion in the June 2. 1997 minutes to be approved by the
Mayor and Common Council. Thank you.
Respectfully,
ca;~-d~k)
Warner W. Hodgdon tf.
Project Coordinator
cc: Rachel CIarl<. City Cleric
James Penman, City Anorney
Rancho San Andreas Company
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AGENDA
JOINT REGULAR MEETING
MAYOR AND COMMON COUNCIL
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MONDAY, JULY 21, 1997 ...;, 8:00 A.M.
COUNCIL CHAMBERS
The City of San Bernardino recogn;z.es its obligation to provide equal access to those
individuals with disabilities. Please contact the Director of Facilities Management (384-5244)
two working days prior to the meeting for any requests for reasonable accommodation, to
include interpreters.
CALL TO ORDER:
PRESENT:
ABSENT :
CLOSED SESSION
1. Pursuant to Government Code Section(s) :
MOTION:
That the Mayor and Common Council and the Community
Development Commission recess to closed session for
the following:
A. Conference with legal counsel -- existing litigation --
pursuant to Government Code Section 54956.9(a):
DeShawn Crawford vs. Citv of San Bernardino San
Bernardino Superior Court Case No. SCV' 33527.
B. Conference with legal counsel - anticipated litigation -
significant exposure to litigation pursuant to
subdivision (b) of Government Code Section 54956.9:
C. Conference with legal counsel - anticipated litigation -
initiation of litigation - pursuant to subdivision (c) of
Government Code Section 54956.9:
D. Conference with legal counsel - personnel - pursuant to
Government Code Section 54957.
END OF CLOSED SESSION
1
7/21/1997
6. Waive full reading of resolutions and ordinances.
MOTION:
That full reading of the resolutions and ordinances
on the regular, supplemental and addendum to the
supplemental agendas of the Mayor and Common
Council be waived.
7. Council Minutes.
(See Attached)
That the minutes of the following
Mayor and Common Council of the
Bernardino be approved as submitted
form:
MOTION:
meeting of the
City of San
in typewritten
June 2, 1997
(Distributed on 7/14/97)
8. Claims and Payroll.
(See Attached)
MOTION:
That the claims and payroll and the authorization
to issue warrants as listed on the memorandum dated
July 15, 1997, from the Finance Director be
approved.
9. Personnel Actions.
(See Attached)
MOTION:
That the personnel actions as submitted by the
Chief Examiner dated July 10, 1997, in accordance
with Civil Service rules and Personnel policies
adopted by the Mayor and Common Council of the City
of San Bernardino, be approved and ratified.
City Clerk's Office
LAID OVER FROM JULY 7. 1997
10. Ordinance of the City of San Bernardino amending Sections
3.52.070, 3.52.130 and adding Sections 3.52.045, 3.52.085,
3.52.095 and 3.52.125 of the San Bernardino Municipal Code
relating to Uniform Transient Occupancy Tax. FINAL READING
(Backup material was distributed on July 7, 1997, Item No.
31.)
MOTION:
That said ordinance be adopted.
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7/21./1997
MINUTES
MAYOR AND COMMON COUNCIL
AND COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
JOINT REGULAR MEETING
JUNE 2, 1997
COUNCIL CHAMBERS
The joint regular meeting of the Mayor and Common Council and
Community Development Commission of the City of San Bernardino was
called to order by Mayor Minor at 8:05 a.m., Monday, June 2, 1997,
in the Council Chambers of City Hall, 300 North "D" Street, San
Bernardino, California.
ROLL CALL
Roll call was taken by City Clerk Rachel Clark with the
following being present: Mayor Minor; Council Members Negrete,
CUrlin, Arias, Oberhelman, Devlin, Anderson, Miller; City Attorney
Penman, City Clerk Rachel Clark, ~cting City Administrator Wilson.
Absent: None.
RECESS MEETING - CLOSED SESSION - (Discussed later in the
meeting - pages 5 << 21) (1)
At 8:06 a.m., the Mayor and Common Council and Community
Development Commission recessed to closed session for the
following:
Pursuant to Government Code Sections:
A. Conference with legal counsel existing litigation
pursuant to Government Code Section 54956.9(a):
Rancho San Andreas Comoanv vs. San Bernardino Municioai
Water Deot.. et al. - San Bernardino Trial. Court Case No.
SCV 38415;
Rancho San Andreas Comoanv vs. San Bernardino Citv
Attornev's Office. et al. - San Bernardino Trial Court
Case No. SCV 38416;
Navor vs. Citv of San Bernardino
Superior Court Case No. SCV 30068.
B. Conference with legal counsel - anticipated litigation -
significant exposure to litigation pursuant to
subdivision (b) of Government Code Section 54956.9.
San Bernardino
C. Conference with legal counsel - anticipated litigation -
initiation of litigation pursuant to subdivision (c) of
Government Code Section 54956.9.
1
6/2/1997
ANNOUNCEMENTS - CITY ATTORNEY PENMAN
(4)
City Attorney Penman acknow edged and congratulated the
Services for its 75th year of service withi
City tario has
offered to b old a courthouse f r the County of Sa Bernardino.
Thus, the Hon able Judge Kertne y will be appea Ong be-fOre the
Mayor and Counci today at 4: 00 p m. to address t e county's needs
relative to the co
City Attorney Pe man also st
in Los Angeles, the ci contact
our city's charter, and
city for the powers grant
riots occurred
obtain a copy of
complimented the
earlier and
(1)
Deputy City Attorney Ema 0
the Mayor and Council una mous
settlement agreement bet en the
California Attorney Ge ral' s 0
issues. The amendmen replaces
agreement regardin "E" Street,
improvements and s stitutes a re
disabled access urb ramps at va
throughout the city and is to be
ounced that in closed session,
proved an amendment to the
of San Bernardino and the
fice egarding disabled access
ragrap 3.10 of the settlement
north 0 2nd Street sidewalk
irement th the city install 60
ious listed idewalk locations
mpleted by De ember 31, 1997.
(5)
hn Webster, 3544 Broadmoor San Bernardino, CA, e~pressed
con rn relative to the haphazar work completed by Ca rans on
Werman Avenue. Oleanders were cut down thereby e~os g the
aIls to graffiti and increasing he noise level.
City Attorney Penman state that Council Member Mil r
e~pressed her concerns regarding the work completed on Waterma
Avenue and that is why the city is pursuing a possible resolution.
PUBLIC COMMENTS - WARNER HODGDON
(5)
Warner Hodgdon, 3295 Broadmoor, San Bernardino, CA, stated
that his family has never sued the city until now and submitted a
bound report dated May 29, 1997, concerning dedicated Sterling
Avenue area/north and Daley Canyon Road.
City Attorney Penman stated that Mr. Hodgdon initiated the
lawsuits because he contends that the city did not provide
information; however, his claims are false.
5
6/2/1997
CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
TO: Rachel Clark, City Clerk
FROM:
Council Office
.~.:- .
SUBJECT: Reproduction of Cassette Tape
DATE: July 18, 1997.
COPIES: Finance
. ------------------------~------------~-----
In response .to a request from Warner Hodgdon, the City Council Office made a
copy of the Council Meeting tape of June 2; 1997 regarding Public Comments.
In compliance with direction from the Mayor and Council regarding cassette
reproductions. the requestor should be charged the following:
Set-up Fee $5.00
Recording Fee 2.50
Blank Tape Fee 1.75
TOTAL $9.25
Transfer payment to Council Account 001-000-4901
J GE CARLOS
Executive Assistant
to the Council
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CITY OF SAN BERNARDINO
MISCELLANEOUS CASH RECEIPT
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Date
Received From
The Sum of J/it11'
For ./Judt (J YLs'
19 97
Dollars
L"- Cents
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Department. ~/b1/J1J /Jf{;/I/
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TOTAL
DISTRIBUTION: White - Customer; ~nary - Cashier; Pink - Department: GOldenro~ - Oept. Numeric. Control
City of San Bernardino
300 Horth "D" Street
San Bernardino1.Ca. 92401
(909) 384-:>u95
Transaction: 1~4340
Batch: 16068
Operator: IF
Effect. Date: 07/18/97
07118/97
HEll CHARGES
SF Short For.
99 City Transaction Ho
Doc Hulber: 696664
Dept. Ha.e: COUHCIl
TOTAL:
Station: 001
2:13:09 Pft
$9.25
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$9.25
PAYIlEHTS
CASH
TOTAL:
$20.00
$20.00
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CHAHGE DUE
THAHK YOU FOR YOUR PAY"EHT
Offi[~ Hours 7:30 .. to 4:30 P'
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No.
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(909)KK1-15<47 FAX <9(9)8H6.9!J62
May 29, 1997
Mayor and Common Council
City of San Bernardino
300 North "D" Street
San Bernardino, California 92418
Letter Report Submitted to the Mayor/Common Council and
City Clerk for the Official Public record on June 2. 1997
RE: (1) June 2, 1997 Mayor/Common Council Agenda Closed Session Discussion
(2) May 19, 1997 Mayor/Common Council Agenda Item 16
(3) May 5,1997 Mayor/Common'Council Public Hearing and Agenda item 27, I.e.:
.:...- .
Redlands Federal Savings (IOC-RFS)
September 30, 1985 Instrument of Credit for Performance to the City for:
1J]2/86 Ded;t;~ted Sterling Avenue I Daley Canyon Road
Sterling Heights I Red1ands Federal Bank
Tentative Tract No. 15775 Reversion to Acreage and
Request to Release September 30, 1985 IOC-RFS
City Planning/City Attorney Office's Representations of Tentative Tract No. 15775
ExEMrrfrom CEQA and No [MPAcrs on Sterling Heights Tentative Tract No. 14112 as
approved November 7,1990 with FEIRIConditions and May 18, 1993 with FEIR,
SEIR, Conditions, requirements 1122186 Dedicated Sterling A venue/Daley Canyon Road
Nonh/East and Extension of Time etc.
Dear Mayor and Common Council:
First, I make clear for the record by this Letter Report and Photolog that we are not
adversaries of Redlands Federal Bank. or their maneuvers for the release of their September
30, 1985 $1.3 Million Instrument of Credit for Performance and Obligations to the City. We
addressed this release and the prior approved constructive alternative at the May 5, 1997
Council Public Hearing along with submitting our May 5, 1997 letter and documentation to
the Mayor/Council and City Clerk for the Official Public Record (see tab 7).
We are adamant in our belief that the Planning/City Attorney's Offices have not
discharged their public responsibility in this long standing matter (1980-1997) in that they
recommend to the Council only how to foster this continued neighborhood "Blighted
Dump". The Planning/City Attorney Offices provide ill! productive course for the Council to
follow in achieving the needed alternative, increased property values to the citizens and
generated public revenues for a plummeting City General Fund.
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We were disappointed for the community in hearing the further representation made at
the May 5, 1997 Public Hearing by Planning/City Attorney offices, which we believe were
mi~ted. Though it was humorous to the Mayor, Council and everyone. including
myself, listening to the City Attorney influence the Public Hearing while watching his T.V.
monitor and phoning the council dais from his sixth floor compound was a sad experience on
the face of it.
However, it is not humorous when effected citizens are curtailed by being allowed to
speak only three (3) minutes to represent their honestly believed facts at a Public-Hearing .
KANGBROOBD by the Planning/City Attorney offices. The City's three (3) minute policy then
forces effected public and parties to be subjected to MINDLESS RIDICULE for their hard work in
preparation and submittal of applicable documentation for the Public Record and the only
alternative of legal action if required.
This letter is further regarding the above referenced May 5, 1997 Mayor/Common
Council Public Hearing and Agenda Item 27 as recommended by the Planning/City Attorney
offices. This matter is commonly referred to as (Sterling Heights) Tentative Tract No. 15775
Reversion to acreage, but in truth being the Release of Redlands Federal Bank $1.3 Million
Instrument of Credit for Performance riven to the City and that J'P.I11~ins in effect for
construction of the January 22, 1986 Dedicated Sterling Avenue and Daley Canyon Roads.
These are City required Public Health and Safety Primary and Secondary Emergency Access
roads.
This letter is also regarding, but not limited to, Planning/City Attorney offices on-
going representations to the public and Council relative thereto that this action is exempt
from CEQA and has no imTJact on Sterling Heights' Tentative Tract No. 14112 November
7, 1990, May 18, 1993 and May 24, 1993 Planning/City Attorney's Offices prior
conditions, requirements, etc.
Rancho San Andreas Company (RSA) had worked in cooperation with Redlands
Federal Bank beginning in December 1991 and further cooperated with the City in
September 1992 toward the above purpose, but with an constructive alternative to bring
about release of their Instrument of Credit for Performance given to the City. There was joint
concurrence with Sterling Heights, Secret Hollow Ranch and City property owners in
October 1992 to form an Improvement/Maintenance District, the owners and the City
reconfirined this on December 18, 1992. The City Engineer's requests for action was brought
before the Mayor and Council on December 21,1992.
Because of Planning/City Attorney's Offices curtailments, the constructive alternative
was not approved until May 24,1993 by the Council's directive for the City Clerlc and City
Engineer to proceed with the establishment of an Improvement/Maintenance District. The
purpose being for construction of the Redlands Federal Bank required Ifl2l86 Dedicated
Sterling Avenue Primary and Daley Canyon Road Secondary Emergency Access serving the
Sterling A venue/Foothill Drive Area, 18ili: acre City Property to the north and the existing
lOili: homes to the northeast.
This improvement/mllintp.nance district would allow RELEASE of the Redlands
Federal Bank $1.3 Million Instrument of Credit for Performance given to the City. Therefore,
as RSA and the other two property owners had volunteered on SePtember 30, 1992 to.
consider paying one third (lf3) each of these improvement costs, less access and reservoir site
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Page 3
benefits paid for bv the EVWD,RSA's \)Osition is not that of an adversary to the Redlands
Federal Bank.
What is even more disappointing to me and for the community is the following:
1. RedIands Federal Bank has owned this III.lGIITI3O property or controlled its development by debt
for over fifteen (15) years or more. On May 5, 1997 ooder the recommendation of PIanning/Cily
Attorney offices the City gave them a CONSOlATION PIUZE, release of their $1.3:1: million
Instrument of Credit for Pmonnance to provide their fonner developer's, RedlaitQ(Financial..
Services, prior 1980-1985 representations and obligations given to the City and neiglibOl:hood.
2. What was once a beautiful estate with fifty (SO) manicured acres of citrus/fann, Sterling Heights,
has been transformed over the years by Redlands Federal Bank or affiliates into a burned out and
abandoned blight on the SUIroooding Oty neighborhoods causing major depreciating propeny
values (see tab 9). In addition to 1hat the 1992-1996:1: Propeny taxes or Oty Assessment
District fees in the range of $125,000:1:. including for Police and Fire services have not been naid
in years and all of this has been allowed to come about with the help of the Planning/City
Attorney offices on-going curtailmentS.
3. In 1992 eight (8) WILDFIRES on their oo-maintained Sterling Heights (50:1: acres) and
contiguous City owned propeny (180:1:) acres burned down hoodreds of trees and costs the Oty
and others F1l'e Agencies $250:1: thousand to fight with equipment and air tankers.
4. In 1994 City Fire and Public Service Departments had to maintain the Sterling. Heights propeny
by the grading of existing and new fire roads, clean out the durnped debris from the retention
basin and other dumped materials left on the upper abandoned Sterling Heights propeny.
5. However, Oty F1l'e and Public Services Departments left other 1994 public dangers and
nuisances including "burned out" home fOoodatiOns, abandoned open concrete swimming pool
and open steel reservoirs painted with pornography and racial graffiti slurs. This examples
Redlands Federal Bank ownership pride given to the City and the Planning-Building
Services/City Attorney offices lack of Code Enforcement at it's best.
6. ironically, in 1991 the City/SBMWD and the Oty/EDA moooted their January 22, 1986
Dedicated Sterling Avenue east fallow 180:1: acre Little Sand Canyon Development. They
announced their development as being the answer to stop our citizens from leaving their homes
in San Bernardino for the preferred residential area of REDLANDS.
7. To rnooot their program, the Oty EDA and City/SBMWD hired Associate Engineers from
Rancho Cucamonga to prepare the plans and had their real estate brokers W1llliun E. Leonard
and Frank Schnetze acquire eight (8) acres of additional propeny for $360,000 to improve
access and the Foothill Drive frontage. This is approximately $45 thousand dollars per acre.
8. In truth even the City's own 180:1: acre propeny, a managed asset of the Oty Municipal Water
Department, is allowed by Planning/City Attorney offices to be maintained as nothing more than
a burned out dump. The City's propeny is a refiu!e for the homeless and abandoned vehicles
stolen from the neighborhood.
9. This City propeny and area is nothing more than CLASSIC BUGHf petpetrated on the City
neighborhoods and surroWlding properties causing major loss of property values and while
generating no Public Revenues to balance the Oty's depleting General Food Budget.
10. Never-the-less my true disappointment comes from the fact that at the March 5, 1997 Council
meeting a request to meet with the Plarming/City Anorney offices and all of the effected panies
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reganling these issues was respectfully made. The Council unanimously directed such a meeting
and continued the matter to their April 7 , 1997 regular meeting.
11. However, not until thiny (30) days Iall2' on ThUISday, April 3, 1997, 3:30 P.M. did
PIanning,City Attorney offices tductantlv sd>Mn1P1l a last minute meeting with FM1"ntI~ Federal
Bank and the effected parties. They came with incomplete documentarion for discussion.
Friday, April 4, 1997 was a aty Employee's furlough day and the Council meeting for the
continued matter was Monday, April 7, 1997, A.M. .
12. In sincere response to the Planning,aty Attorney offices unprepared April 3, 1991 'iiieeting we .
then went to great effort to prepare applicable documentation and faclual background. Our
preparation was CUIllIiled beca.1Se of an immediate family death, but was handed Mr. Hayes,
Planning Director on April 25, 1997 with our applicable April 23, 1997 letter to both he and
Henry Empeiio, Jr., Deputy City Anorney, representing Mr. Penman.
13. This was ten (10) days prior to the May 5, 1994 Public Hearing by the Council regarding the
Redlands Federal Bank Tentative Tract No. 15775 Reversion to Aaeage and $1.3 Million
release of their Instrument of Credit for Performance. This left ample time for scheduling a
meeting with effected parties to meet with the Planning,Oty Attorney offices. Not hearing from
Mr. Hayes since our April 25, 1997 discussion I wrote to him regarding his non-response
carried in my April 30, 1997 letter (see tab 1).
14. On August 30, 1996 Redlands Federal Bank first submitted their application for Tentative Tract
Map NO. 15775 Reversion to Aaeage (Sterling Heights). The tlUe underlying purpose was J!Qt
addressed what so ever and that being to l'.!It'~pe their applicable development company's,.
Redlands Financial Services, long standing representations and obligation to the aty and
neighborhood under the September 30, 1985 Redlands Federal Bank Instmment of Credit for
Performance still in effect to the City.
Even more disappointing and sad to us and for the Community is the following:
1. In the over eight (8) months of this process in futility, the whole thrust of Planning/City
Attorney offices has been how to proceed with undoing that which had already been
accomplished by the City and neighborhood starting in 1980 through 1985. This includes the
various repetitious steps and ordeals added by PlanninglCity Attorney's Offices through May
24, 1993.
2. 1l)is PlanninglCity Attorney Offices process in futility has taken years of staff time and
neighborhood input during 1980-1985 which was confirmed by Redlands Fmancial Services
representation and backed up by the September 30, 1985 Red1ands Federal Bank Insttument of
Credit for performance to the City.
3. Now without ~ charted course toward productivity the PlanninglCity Attorney offices leave
the effected parties and surrounding property ownets with cost/losses in the mi1Iions forced on
them. The City is left with this fallow unproductive property, including their own 18ili: acres,
used like a series of un-permitted neighborhood dumps.
4. The existing lOili: homes to the northwest have been permitted by the City, including new
building permits, without their required Development Code Secondary Emergency Access. This
being a major potential City Public Health and Safety liability long known by Planning/City
Attorney offices and allowed to continue by their accumulative May 5, 1997 recommendations
approved by the Mayor and Common CounciL
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5. The P1anning,{:ity Attorney offices have abandoned their tIUe oblill"rion to the citizens to
discharge their responsibilities. This includes the chatting of a productive course to generate
Public Revenues, Increased Propeny Values, jobs and equal qua1ity of life for an of our
Citizens.
6. No one liked facing the tIUth of the recent articles written by the Sun; January, 26,1997 "ClfY IN
PERILANDFALUNGFOKlTlNES" and April 4, 1997, "CrrrSEEKSToENDSuit".
It is time to face the underlying source of the City's plummeting General Fund"and of
our ''City in Peril" and "Falling Fortunes". ........
1. The January 26,1997 Sunanicledescribes the City bomes and propeny values that have.fallen
fifty (50) percent or more in many cases and accumulatively amounting to Billions. The article
even interviewed homeowners that wished they could pick their bome up and move it to
Redlands for better value and quality of life.
2. The April 4, 1997 anicle discloses the costs and losses to the City for the Planning,{:ity Attorney
offices ArdenA3uthrie cleOOc1e; $1.5 million legal fees paid the outside legal counsel to
recommend a $5.15 million settlement offer to the City for Mr. Penman's "Faked" code
enforcement sweep. Over and above that there has been $7:1: million of Costs and Losses already
accrued by the City. They now total $13.5:1: Million and are growing.
3. The Planning,{:ity Attorney offices Arden/Guthrie DEBACLE costs and losses alone have
reached $13.5:1: million to the City. Even the U.S. Court of Appeals agrees that Mr. Penman is
personally liable and ceI1lIin1y the Council does or they would not have authorized the City
Attorney's outside legal counsel, Mr. Joe Arias, Esq. 's recommendation of adding another City
$5.15 Million settlement offer of public funds for Mr. Penman's 1991 Arden/Guthrie "Faked"
Code Enforcement DEBACLE.
4. Accotdingto The Sun's anicles, the City's 1997-1998 General Fund Budget bas a shonfall of
$7.2 Million. Mr. Aria's, Esq. settlement offer from the City of $5.15 Million for Mr. Penman
will not an come from the City's insurance company carriers and these cost could impact the
City's 1997-1998 General Fund shonfall of ~.2 Million and several millions more.
5. The City already has growing costs and losses in the Arden/Guthrie area of $8.5 Million, little
alone their recently added $5.15 Million settlement offer. Mr. Penman is also general lega1
counsel to the City/EDA and acts as advisor to the City Council. Cenainly Mr. Penman will not
an,empt to continuously siphoning millions more of public funds generated from the various
Redevelopment Project Areas to pay for his ArdenIGuthrie P1anning,City Attorney Offices'
"Faked" Developmem Code Enforcement debacle as he has in the past.
6. City Attorney Penman has used un-budgeted City public funds to pay his outside legal counsel,
Mr. Joe Arias, Esq. at least $2.5:1: Million to defend his multiple incompetencies and the City.
Mr. Arias has become so rich from Mr. Penman giving him the City of San Bernardino's Public
Funds that he moved from our city's depressed Valencia Avenue and Country Club area to the
City of Redlands.
June 2, 1997 Council Agenda for Closed Session Discussion and the prior
City Attorney retaining of outside Associate Legal Counsel, Joe Arias, Esq.:
1. Ironically, accotding to the Monday, February 17, 1997 minutes and Council Closed Session,
Mr. Penman requested the MayorICouncil to retain Mr. Joe Arias, Esq. as Associate Legal
Counsel to him and Henry Empeiio, Jr" Deputy City Attorney for another matter.
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NATIONAL EQUITY [N(iINEERING. IIEADQUARTEKS IN1-ERNATIONAlE
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2. Mr. Penman represented his need of Mr. loe Arias, ~., as outside A~Ate Counsel to help
him becaJlse of the City's Significant Exposure to liIigation ~t to subdivision (6) of
Government Code Seclion 54956.1, Case No. SCV 01030, Le.: City Attorney Penman vs.
Rancho San Andreas Company, for lune 1992 maintenance, fire conttol and abatement widIin
the existing dirt aocess of the lanullIy 22, 1986 J)ed;cated Sterling Avenue Public Road right-of-
way.
3. The September 30,1985 Redlands Federal Bank: outstanding $1.3 Million Instrument of Credit
for Perfonnance given to the City covers COIlSlIUClion of the lanullIy 22, 19$~_ Dedicaled
Sterling Avenue and Daley Canyon Roads. On April 27 . 1992. the Citv/SBMWD eave an Entrv
A~ to EVWD. approved as to form and Atlp.(]U8CV bv the Citv Attornev Peitman's office
and who is AI..... General Legal Counsel and advisor for the Otv Munici.P3l WArn Degntment
4. The CityJSBMWD and City Attorney's Office April 27, 1992 "Entrv Al!I'eement" purpose was
for EVWD consultants massive grading and trenching by heavy bulldozer to locate future
pipelines, access and location for a new 3 to 6 million gallon reservoir within the lanullIy 22,
1986 Dedicated Sterling Avenue AreaJEast (see tab 6).
5. See tabs 2, 3 and 4 photologs of results from he City/SBMWD and Mr. Penman's April 27,
1992 "EntrY Al!reemenl" allowed massive grading, un-pennitted code violorions by the EVWD
consultants from that time through March 1995. The on-going 1992-1995 major EVWD
cnn..flltnn"" hul/dmwand heavy eouipmenl activity disturbed the existing Sycamore Trees in the
1/22/86 Dedicated Sterling Avenue public Road right-of-way, crossed two stream course and up
700:!:feet offoothill ridgelines without compacted back-fiJI. This resulted in conlinuous 1992-
1997 major erosion and mud flows into neighborhood streets.
6. On January 26,1996, the California Departmenl of Fish and Game and Attorney General expert
ENFORCED the Stote RETROACTIVE 1601 Stream and Lake Alteration Agreemenl upon the
City/SBMWD for their massive grading, un-pennitted code violations (see rob SI This
included the City/SBMWD on-going 1971-1995 dumping of asphalt petroleum products for
streamcourse dams, pipeline drain construction in the streamcourse, BuU-Dozinv out sycamore
~for their 1.2 MiUion gallon Daley Canyon Reservoir construction, EVWD 3 to 6 miUion
gallon Sterling Avenue Reservoir and City/SBMWD 3 MiUion gallon Sterling/FoothiU Drive
Reservoir. (For Discussion on June 2. 1997 Council Closed Session Afendal.
May 19, 1997 City Council Rejection of existing 1/22/86 Dedicated Daley Canyon
Road for Redlands Federal Bank:
On Monday, May 19, 1997, the Council made their motion approving the Redlands
Federal Bank: Fmal Tract Map No. 15775 (Sterling Heights) reversion to acreage. They had
approved the Tentative Tract Map with conditions, requirements, etc. on May 5, 1997 as
represented by Planning/City Attorney's Offices, with the City to accept ROWand slope
easements for the January 22,1986 Dedicated Sterling Avenue and Daley Canyon Road.
Planning/City Attorney's Offices did not divulge On May 5, 1997 to the Council,
public or effected property owners or during the entire process starting August 30, 1996, that
the Redlands Federal Bank: Final Map recording requirements and owners certification sheet
included only the Council's ACCEPTANCE of the existing 1122186 Dedicated Sterling
Avenue with slope easement and the Council's REJECTION of the Daley Canyon Road
Secondary Emergency Access road with slope easements.
The Council's May 19, 1997 REJECTION of Daley Canyon Road with slope
easements "CUTS OFF" the existing 1122/86 dedicated access serving the property to the
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north, the City property to the east and is the Public Health and Safely required Secondary
Emergency Access for the lOW: existing homes to the northwest This is further addressed in
our May 28,1997 letter to the City Engineer and Director of the City Department of Public
Works and who confirms the Redlands Federal Bank Fmal Tract Map and Reversion to
Acerage will not be recorded until the $125,000:1: of unpaid property taxes have been
paid(see tab 8).
Upon recordation of the Councils May 19, 1997 approved Fmal Tract Map the
Planning/City Attorney offices have accomplished nothing, but release of the long. standing
September 30, 1995 Redlands Federal Bank $1.3 Million Instrument of Credit for
Performance given to the City for the Bank's development subsidiary's 1980-1985
obligation to construct Sterling Avenue and Daley Canyon Road. As their fifteen (15) year
BONUS to the City, Redlands Federal Bank leaves a once beautiful area turned into a
"Burned Out" dump with abandoned foundations, dead trees, open reservoir hazards with
graffiti and RACIAL SLURS (see tab 9).
Ironically, in 1991 the City publicly represented they had started development of
Foothill upscale housing on their contiguous If21J86 Dedicated Sterling A venue blighted
City/SBMWD 180 acre property and in March 1992 the City even paid $360 thousand to
purchase eight (8) vacant acres more. The City's farce was publicly billed as the answer to
keep people from moving to Redlands.
1bis total affair is another example of the continuing "slight of hand" by the
Planning/City Attorney offices while their incompetence and ineptness escalates not only the
Sterling Avenue neighborhoods deteriorating areas, but escalates all of the citizens falling
property values and loss of equity mounting into the billions.
It is not any wonder the City faces a shortfall of $7.2 Million in the 1997-1998
General Fund Budget. This does not include the above referenced City costs and losses in
the Arden/Guthrie area of $13.5 Million and growing. Unfortunately, the Planning/City
Attorney Offices befit the recent Sun articles, "City in Peril" and Falling Fortunes".
On May 27, 1997 the City Clerks office informed us there is no City vehicle for the
public or effected parties to appeal the Council's May 19, 1997 Motion or to request the
Council's reconsideration of this manipulated oversight.
Respectfully,
ca/~<tV.~
Warner W. Hodgdo~ r:!.
Project Coordination
cc: Crawford Investment Company, Appellant
Michael Hayes, Director of Planning/Building Services
James F. Penman, City Attorney
Huston Carlyle, Senior Assistant City Attorney
Henry Empeiio, Jr., Deputy City Attorney
Bernard Kersey, General Manager, City/SBMWD
Harold Willis, Chainnan, City/SBMWD Commission
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