HomeMy WebLinkAboutBook 38 09/07/93 - 06/06/94
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MAYOR AND COMMON COUNCIL
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
September 7, 1993
11:00 a.m.
The Regular Meeting of the Mayor and Common Council and the
Community Development Commission was called to order by Mayor Tom
Minor at approximately 5:24 p.m., on Tuesday, September 7, 1993, in
the Council Chambers, City Hall, 300 North "D" Street, San Bernardino,
California.
ROLL CALL
Roll call was taken with the following members present: Chairman
Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph
Hernandez; David Oberhelman; Valerie Pope-Ludlam; and Norine Miller.
Absent: None. Vacant: Fifth Ward Commission Member.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency;
Kenneth J. Henderson, Executive Director, Development Department; Ann
Harris, Executive Director, Main Street; Dennis Barlow, Assistant City
Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil
Arvizo, Executive Assistant to the Council; Shauna Clark, City
Administrator; Fred Wilson, Assistant City Administrator; Rachel
Clark, City Clerk; Melanie Vale, Deputy City Clerk; La Vonda M-
Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Tim Sabo, Special Counsel, Sabo and Green; Maria Hunt, The Sun
Newspaper.
The Commission Members requested that items numbered "7", "9",
"12", "13", "14" and "15" be removed from the Consent Calendar.
Commission Member Negrete made a motion, seconded by Commission
Member Hernandez, that the Consent Calendar items numbered "1" through
"15" be adopted, except for items numbered "7", "9", "12", "13", "14"
and "15".
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The motion carried by the following vote: Ayes: Commission ij
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. ~
Noes: None. Abstain: None. Absent: None.
1. COMMUNJ:TY DEVELOPMENT COMMJ:SSJ:ON MJ:NUTES
(Community Development Commission)
Commission Member Negrete made a motion, seconded by Commission
Member Hernandez, that the minutes of the Community Development
Commission of the City of San Bernardino for the meetings of August 9,
1993 and August 16, 1993, be approved as submitted in typewritten
form.
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller.
Noes: None. Abstain: None. Absent: None.
2 . REDEVELOPMENT COMMJ:TTEE MJ:NUTES
(Community Development Commission)
Commission Member Negrete made a motion, seconded by Commission
Member Hernandez, that the minutes of the Redevelopment Committee of ]
~~~eI~~a ~~d S~il~~~nardino for the meeting of August 19, 1993, be . .....
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller.
Noes: None. Abstain: None. Absent: None.
Public Works Department
3. AUTHORIZATJ:ON TO EXECUTE LJ:CENSE AGREEMENT - J:NSTALLATJ:ON OF
SUPPORTS FOR CANOPy - JERSEYS SPORTS GRILL AND BJ:LLJ:ABD CLUB
(Mayor and Common Council)
Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 93-341
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A LICENSE AND AGREEMENT WITH JERSEYS SPORTS GRILL
AND BILLIARD CLUB, AT 440 WEST COURT STREET, RELATING TO THE
INSTALLATION OF SUPPORT POLES WITHIN THE PUBLIC SIDEWALK.
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The motion carried by the following vote: Ayes: Council Members
Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes:
None. Abstain: None. Absent: None.
4. AWARD OF CON'l'RACT - RE-ROOFING YWCA BUILDING, PER PLAN NO. 8941 -
ROY O. HUFFMAN ROOF COMPANY
(Mayor and Common Counci..l)
Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 93-342
RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO
ROY O. HUFFMAN ROOF COMPANY FOR RE-ROOFING YWCA BUILDING AT 567
NORTH SIERRA WAY.
The motion carried by the following vote: Ayes: Council Members
Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes:
None. Abstain: None. Absent: None.
5.
APPROVAL OF PLANS AND AUTHORIZATION TO ADVERTISE FOR BIDS -
INSTALLATION OF DIAGONAL PARKING ON "E" STREET FROM 2ND STREET TO
6TH STREET PER PLAN NO 8985
(Community Development Commission)
Commission Member Negrete made a motion, seconded by Commission
Member Hernandez, that the plans for installation of temporary
improvements for diagonal parking on "E" Street, from Second Street to
Sixth Street, in accordance with Plan No. 8985, be approved; and the
Director of Public Works/City Engineer be authorized to advertise for
bids.
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller.
Noes: None. Abstain: None. Absent: None.
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6.
APPROVAL OF PLANS AND AUTHORIZATION TO ADVERTISE FOR BIDS -
INSTALLATION OF LANDSCAPING IN WATERMAN AVENUE MEDIAN, PER PLAN
NO. 8966
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(Community Development Commission)
Commission Member Negrete made a motion, seconded by Commission
Member Hernandez, that the plans for installation of landscaping and
irrigation system, in the curbed median in Waterman Avenue, from Santa
Ana River to Mill Street, in accordance with Plan No. 8966, be
approved; and the Director of Public Works/City Engineer be authorized
to advertise for bids.
The motion carried by the following vote:
Members Negrete; Curlin; Hernandez; Oberhelman;
Noes: None. Abstain: None. Absent: None.
Development Department
Ayes: Commission
Pope-Ludlam; Miller.
8. THE MILLENNIUM SENIOR HOUSING PROJECT
(Communi ty Development Commi.ssion)
Commission Member Negrete made a motion, seconded by Commission
Member Hernandez, to approve a Satisfaction and Termination Agreement
between the Redevelopment Agency, Cliff Carel and Associates and
Escrow Funding Service, reimburse Cliff Carel and Associates the
original $10,000 dollar "good faith" development deposit plus interest
in the amount of $6,600 for a total of $16,600.00 and authorize the
Chairman and Executive Director to execute any documents necessary to
effectuate said transaction.
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The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller.
Noes: None. Abstain: None. Absent: None.
10. FY 1993/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENTS
BETWEEN THE CITY AND SUBRECIPIENTS
(Mayor and Common Council)
Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 343
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND MARY'S MERCY CENTER, INC.
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Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 344
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND BETHLEHEM HOUSE PROJECTS, INC.
Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 345
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND BETHLEHEM HOUSE PROJECTS, INC.
Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 346
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND MARY'S MERCY CENTER, INC.
Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 347
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND LUTHERAN SOCIAL SERVICES OF SOUTHERN CALIFORNIA.
Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 348
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN
BERNARDlNO AND MENTAL HEALTH ASSOCIATION OF SAN BERNARDINO
COUNTY.
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Councilman Negrete made a motion, seconded by Councilman
Hernandez, that the following resolution be approved and adopted:
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RESOLUTION NUMBER 349
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND SAN BERNARDINO SEXUAL ASSAULT SERVICES, INC.
The motions carried by the following vote: Ayes: Council
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller.
Noes: None. Abstain: None. Absent: None.
11. EMBLEM DEVELOPMENT
(Community Devel.opment Commission)
Commission Member Negrete made a motion, seconded by Commission
Member Hernandez, to approve the revised Emblem Development financial
assistance proposal and Owner Participation Agreement (OPA) to
effectuate construction of fifty-nine (59) high-quality single-family
detached homes and authorize the Chairman and Executive Director to
execute any document necessary to effectuate said transaction.
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller.
Noes: None. Abstain: None. Absent: None.
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7. CONTRACT CHANGE ORDER NO. 6 - IMPROVEMENTS TO DELMANN HEIGHTS
COMMUNITY CENTER, PER PLAN NO. 8890 -- KIRKLEY DEVELOPMENT, INC.
(Mayor and Common Council.)
Councilman Hernandez questioned whether or not the funds proposed
for this project would be enough to complete it.
Kenneth J. Henderson, Executive Director, Development Department,
explained that the requested funds were not enough to complete the
entire project, but added that the Department of Park, Recreation and
Community Services Department could reapply for additional Community
Development Block Grant (CDBG) funds.
Commission Member Hernandez made a motion, seconded by Commission
Member Negrete, that Change Order No. 6 to the contract with Kirkley
Development, Inc., for the improvements to Delmann Heights Community
Center, in accordance with Plan No. 8890, be approved, to authorize
the Contractor to remodel the existing rest rooms, at an increase in
the contract price of $56,960.00, from $566,391.75 to $623,351.75.
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The motion carried by the following vote: Ayes: Council Members
Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes:
None. Abstain: None. Absent: None.
9. SAN BERNARDINO CIVIC LIGHT OPERA
(Community Deve10pment Commission)
Commission Member Hernandez questioned the intent of this item.
Timothy C. Steinhaus, Administrator, Economic Development Agency,
explained that the proposed loan to the Civic Light Opera would be to
supplement its income in order to complete improvements to its
building and be ready for the upcoming season. He stated that if the
loan could not be repaid, the Agency would purchase the building for a
negotiated amount.
Commission Member Hernandez commented on his support in assisting
the CLO but does not want the Agency to pay more for the building than
its worth.
Commission Member Oberhelman indicated that the CLO's financial
difficulties were due to mis-management. He stated that there was no
assurance to the Agency indicating that this would change. He also
stated that when reading the agreement, it appeared that any existing
debt by the CLO upon foreclosure would become the debt of the City,
and he was not in agreement with that.
Commission Member Oberhelman questioned the CLO's subsidiary
business not being pledged as collateral for this loan.
Mr. Steinhaus stated that the CLO representatives were present to
address all concerns regarding this item.
Commission Member Curlin expressed concern regarding the
possibility of the CLO continuing to operate in the red. He also
requested additional information regarding the subsidiary business.
Commission Member Miller requested additional explanations
regarding the agreement for this loan.
Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern
regarding the Agency having control of the CLO.
Ron Skipper, 323 West Court Street, San Bernardino, informed the
Commission that the CLO was purchased for $150,000, and that over
$800,000 had been made in capital improvements.
Gene Wood, Board Member, CLO, stated that the Board of Directors
for the CLO had just completed a major reorganization. He indicated
that during the reorganization process, the new board uncovered many
financial problems.
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Mr. Wood indicated that the reason the CLO submitted a request i
for a short-term loan was because the CLO was faced with a shortfall ~
in operating expenses for the new season. He briefly discussed the
additional assets of the CLO which included a new building on 14th
Street, an old building on 21st and "E" Street and also Scenic
Productions. He stated that the funds received from Scenic
Productions were used to offset the theater costs.
Mr. Wood explained that the majority of the CLO's financial
difficulty was due to the production of Annie Warbuck which was very
unsuccessful. He said the new directors had been meeting on a regular
basis and they felt the CLO could be very profitable. He emphasized
without the assistance of the Agency, the CLO would be unable to
continue operating.
Mr. Skipper stated that the Agency would not be taking over the
CLO's debts by purchasing the building. He said the building would be
the security for the loan, and no debt was owed on the building. He
also stated that any creditor who wished to foreclose on its loan to
the CLO would be a in secondary position to the Agency.
Mr. Wood stated that Scenic Productions was a very profitable
business which leased sets to other production companies. He
indicated that discussions had ensued with the Board of Directors
regarding pre-leasing the sets to bring in immediate cash flow.
Mayor Minor stated that he had spoken with members of the Board
of Directors and recommended to them that they seek a loan through the
Agency. He indicated that he would not like to see the CLO close.
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Commission Member Pope-Ludlam made a motion, seconded by
Commission Member Negrete that Amendment Number One (1) to the
Disposition and Joint Development Agreement between the Redevelopment
Agency and the San Bernardino Civic Light Opera Association and
approve a loan in the amount of $200,000. Further, that the Chairman
and Executive Director be authorized to execute all documents in
connection with said transaction.
Commission Member Oberhelman felt that other properties of the
CLO should be pledged as collateral. He recommended all properties of
the CLO be pledged.
Mr. Skipper stated that discussions with the Board of Directors
did not include pledging Scenic Productions as collateral for the
loan.
Mayor Minor recommended the loan be approved contingent upon the
board approving the pledge of Scenic Productions as collateral.
Mr. Skipper indicated that Scenic Productions could still operate
if pledged as collateral.
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Commission Member Curlin questioned the amount of loss to the CLO
due to Annie Warbucks.
Mr. Skipper stated the loss amount was approximately $500,000.
Discussion ensued regarding the costs to operate the CLO, its
expenditures and its assets.
Commission Member Pope-Ludlam made an amended motion, seconded by
Commission Member Negrete that Amendment Number One (1) to the
Disposition and Joint Development Agreement between the Redevelopment
Agency and the San Bernardino Civic Light Opera (CLO) Association and
approve a loan in the amount of $200,000. Further, that the Chairman
and Executive Director be authorized to execute all documents in
connection with said transaction contingent upon the CLO Association
Board approving the assets of Scenic Production and all property owned
by the CLO.
The motion carried by the following vote: Ayes: Council Members
Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes:
None. Abstain: None. Absent: None.
12. CENTRAL POLICE STATION - FINANCING
(Mayor and Common Council)
Mayor Minor informed the Council that he requested the Council
and Bond Counsel review this item as a way to finance the police
facility.
Councilman Hernandez noted that if the state continues to take
funds from the City, the City would not be able to repay this bond.
He felt the City Administrator should become involved with this item.
Mayor Minor informed staff that he had spoke with the City
Administrator and she opposed the use of the general fund for this
project.
Councilwoman Pope-Ludlam felt the building of the new police
facility was the responsibility of the City not the Agency. She
expressed concern regarding the City's constant use of Agency funds to
offset its budget. She also was concerned about the Agency's funds
being used for a project that would not produce tax increments.
Kenneth J. Henderson, Executive Director, Development Department,
explained that the first two (2) annual payments on the bond would be
made from capitalized interest. He noted that more detailed
information regarding the bond process and the repayment of the bond
could be made by Miller and Schroeder at the time of the transaction.
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Councilman Curlin asked the Agency Administrator his
recommendation for this project.
Mr. Steinhaus responded by stating that his responsibility was
ensure the best interest for the Agency be met. He would recommend
that the City fund its own police facility, and that the Council
review the bonding issue.
Mr. Steinhaus explained that if a different Council should be in
place when the bond payments become due and they choose not to pay the
bonds, the City would default. He stated that at that time, the City
could choose to either refinance the bonds or pay them off.
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Discussion ensued regarding alternative financing for the police
facility.
Mr. Steinhaus confirmed that if the City elected to approve this
item, the option at a later date to sell the facility to the Agency
would still exist.
Councilman Oberhelman made a motion, seconded by Councilman
Negrete, to direct staff to prepare the necessary documents and
resolutions to provide for Certificates of Participation financing for
the new Central Police Facility in an amount sufficient to provide for
construction and furnishing of the facility.
The motion carried by the following vote: Ayes: Council Members
Negrete; Curlin; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman
Hernandez. Abstain: None. Absent: None.
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13. IMPLEMENTATION OF PROPOSED ADJUSTED WORK WEEK SCHEDULE
(Comrnuni..ty Devel.opment Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency,
explained that the employees of the Agency were not represented by a
union which made it easier for them to discuss the adoption of a 9/80
work week. He stated that a committee had met and Stafford W. Parker,
Deputy Director, Development Department, was present to give a brief
presentation on this request.
Commission Member Oberhelman stated that the Commission had
previously heard the presentation at the budget hearing.
Mr. Steinhaus emphasized that the trial period for the 9/80 plan
would allow the City to observe how the plan would operate and whether
or not the entire City in the event the entire City should convert to
this plan.
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Commission Member Oberhelman made a motion, seconded by
Commission Member Hernandez, to adopt a synchronized 9/80 adjusted
work week schedule for the Economic Development Agency and authorize
the Agency to publicize the new work schedule, administer the process
and begin implementation September 27, 1993 for a period of three
months through December 31, 1993 with subsequent findings and
conclusions of the conversion trial period reported to the Commission
for further consideration.
The motion carried by the following vote: Ayes:
Members Negrete; Curlin; Hernandez; Oberhelman. Noes:
Members Pope-Ludlam; Miller. Abstain: None. Absent:
Commission
Commission
None.
14. ECONOMIC DEVELOPMENT AGENCY MANAGEMENT AUDIT
(Community Development Commissi.on)
Mayor Minor spoke briefly on the bids received for the Management
Audit.
Commission Member Curlin made a motion, seconded by Commission
Member Pope-Ludlam to authorize the Agency Administrator to enter into
a contract for services with Harvey M. Rose Accountancy Corporation to
perform a management audit of the Economic Development Agency for an
amount not to exceed $59,125.
Judy Thompson, Vice President, Chamber of Commerce, requested
that McGladrey & Pullen, a local firm, be awarded the contract to
complete the audit. She emphasized that there bid was $26,000 less
than Harvey M. Rose.
Rod LeMond, McGladrey and Pullen, felt they were well qualified
to perform the audit. He reiterated that his firm could complete the
audit for $26,000 less than the current bid.
Commission Member Pope-Ludlam indicated that she had witnessed
their work at other organizations and had not experienced any
problems.
Commission Member Curlin felt that it was encouraging that they
were a local firm and questioned McGladreys qualifications relative to
Harvey M. Rose.
Mr. LeMond said that his firm had not completed all the
objectives listed as Harvey M. Rose, but that they had worked with
other Redevelopment Agencies. He listed there experience in cities
and counties such as Los Angeles, Pasadena and Colton.
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Timothy C. Steinhaus, Administrator, Economic Development Agency, .wl
explained that the Mayor and Timothy Sabo, Special Counsel, reviewed
the RFQ responses and that McGladrey & Pullen did not show any
redevelopment management audit experience.
Timothy Sabo, Special Counsel, Sabo and Green, spoke on the audit
needed by the City. He stated that he did not see where McGladrey &
Pullen had done a complete management audit in their proposal. He
indicated that Harvey M. Rose was more expensive due to there
expertise.
Commission Member Oberhelman made a motion, seconded by
Commission Member Curlin, to authorize the Agency Administrator to
enter into a contract for services with McGladrey & Pullen, of San
Bernardino, to perform a management audit of the Economic Development
Agency.
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Oberhelman; Pope-Ludlam; Miller. Noes:
None. Abstain: Commission Member Hernandez. Absent: None.
Agency Administration
15. ECONOMIC DEVELOPMENT AGENCY PROCUREMENT POLICY AND PROCEDURES
(Community Deve10pment Commission)
Commission Member Oberhelman made a motion, seconded by
Commission Member Pope-Ludlam, to reinstate the Economic Development
Agency Purchasing Policy and Procedures in effect prior to April 19,
1993.
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Commission Member Oberhelman indicated that the staff report
stated that the current policies and procedures puts them in a bind
during emergency situations. He asked for appropriate safeguards if
this item is approved.
Kenneth J. Henderson, Executive Director, Development Department,
explained that before the procedures were amended, the safeguard was
the monthly status report which lists all expenditures over $10,000.
He also explained that Commission Member Hernandez requested
notification of all expenditures for consultants and special projects.
Commission Member Hernandez spoke on previous actions by the
Agency that were unknown to the Commission.
COMMISSION MEMBER MILLER WAS EXCUSED AT 7:11 P.M.
Timothy C. Steinhaus, Administrator, Economic Development Agency,
confirmed that the Agency still notifies the Commission through its
monthly status report.
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COMMISSION MEMBER MILLER RETURNED AT 7:13 P.M.
Mr. Henderson spoke on the policies previous history of working
well with both the Mayor and the Council with an Agency spending limit
of up to $25,000.
Commission Member Miller felt there were enough safeguards to
reinstate the old policy. She pointed out that the City Administrator
had the $25,000 spending limit.
Commission Member Hernandez requested a courtesy call when
funding items.
Commission Member Miller made a motion, seconded by Commission
Member Pope-Ludlam to reinstate the Economic Development Agency
Purchasing Policy and Procedures in effect prior to April 19, 1993.
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller.
Noes: None. Abstain: None. Absent: None.
END OF CONSENT CALENDAR
Public Works Department
16. AUTHORIZATION TO PREPARE PLANS - CONSTRUCTION OF NT. VERNON
AVENUE STORM DRAIN
(Communi. ty Development Commission)
Commission Member Hernandez made a motion, seconded by Commission
Member Pope-Ludlam, that the Director of Public Works/City Engineer be
authorized and directed to have plans prepared for construction of the
Mt. Vernon Avenue Master Plan Storm Drain, from the East Branch Lytle
Creek Channel and Medical Center Drive to Mt. Vernon Avenue at Base
Line Street.
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Oberhelman; Pope-Ludlam; Miller. Noes:
None. Abstain: Commission Member Hernandez. Absent: None.
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Development Department
17. PRECONSTRUCT:ION AND GENERAL CONTRACTOR SERV:ICES - NEW POL:ICE
FAC:IL:ITY
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by
Commission Member Curlin to designate Millie/Severson as the apparent
lowest responsible bidder and direct staff to negotiate and return for
Commission review and authorization a contract for general contracting
services.
Commission Member Hernandez questioned the need for change orders
with this project.
Timothy C. Steinhaus, Administrator, Economic Development Agency,
explained that this contractor would not be completing any
construction.
Discussion ensued regarding the management of change orders.
Kenneth J. Henderson, Executive Director, Development Department,
stated that this item would be brought back to the Commission for
approval of the contract.
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller.
Noes: None. Abstain: None. Absent: None.
18 . UN:IVERS:ITY V:ILLAGE ASS:ISTANCE REQUEST
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department,
provided the Commission with a supplemental memorandum that was
developed after a Special Redevelopment Committee Meeting. He
explained that the Committee recommended that a $650,000 contribution
be made for off-site improvements and that a loan in the amount of
$600,000 be provided.
Mr. Henderson discussed the terms of the loan agreement
indicating that the loan would be secured with the property and a
personal guarantee.
Gary Kirby, Citizen, spoke briefly on the need for the Agency to
assist developers as needed.
Ari Miller, Camden Development, discussed the need to obtain
funding due to the cost to develop the hillside. He also spoke on the
high cost of permits.
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Mayor Minor spoke on Mr. Miller not being able to repay the loan
until Phase II of his project begins. He commented on the excellent
design of the facility.
Mr. Miller re-emphasized that the loan would be guaranteed by the
leases.
_._ Commission Member Miller made a motion, seconded by Commission
~ieliUJer Negrete to approve $650,000 off-site contribution to University
Village Shopping Center; and that the Community development Commission
appro~e a $500,000 loan at an interest rate of 7% all due and payable
in five (5) years with principle and interest deferred for the first
thirty-six (36) months and that commencing with the month thirty-seven
(37) the developer will pay $5,000 quarterly with the $600,000
principle plus accrued interest all due and payable at the end of five
(5) years, or month sixty (60) with an estimated accrued balance of
$724,000.
The motion carried by the following vote: Ayes: Commission
Members Negrete; Curlin; Hernandez; Pope-Ludlam; Miller. Noes:
Commission Member Oberhelman. Abstain: None. Absent: None.
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 7:50 P.M.
Council. Office
19. ADMINISTRATIVE ASSISTANT TO COUNCIL/COMMISSION
(Mayor and Common Council.)
(Councilman Hernandez's Recommendation)
C-0uncilman Hernandez explained the confusion regarding his
reque~t to hire an Administrative Assistant to assist the Council
Office. He stated that there was a need for a person to assist the
Council with the hundreds of complaints that Council office has
received. He felt the position could be funded by the Agency since
the Council provides services for it.
COUNCILWOMAN POPE-LUDLAM RETURNED AT 7:55 P.M.
Councilman Curlin questioned why the Agency would be funding the
position.
Timothy C. Steinhaus, Administrator, Economic Development Agency,
explained that the majority of the work to be completed by Mr.
Johnston would be for the Agency.
Councilman Oberhelman commented on the tremendous work by the
Cou~cil staff and the extra efforts given by Phil Arvizo. He stated
that he did not see a problem with the Council staff, but with other
departments.
REGULAR. MEETING
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COMMISSION MEETING
September 7, 1993
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Councilman Oberhelman did not believe an additional position
should be created in the Council Office. He felt that if the funds
were going to be spent on a position, they should be used for a
position that would assist the City.
John Cole, 7756 Marino Avenue, San Bernardino, requested that the
Council deny the request submitted by Councilman Hernandez. He
explained that he worked for the city for six (6) years as
Administrative Assistant to the Council. He stated that after
reviewing the complaints submitted by citizens, he developed a system
that ~ut the backlog by 70%.
Mr. Cole stated that after six (6) years of service, he was laid
off with three (3) weeks notice due to economic conditions. He was
assured by Mr. Arvizo and certain Council Members that in the event
the position was ever refunded, he would be re-hired. He emphasized
that his qualifications were just as valid as those of Mr. Johnston.
Mr. Cole answered questions relative to his lay-off from the
Conncil Office.
Gary Kirby, 1505 Yardly, San Bernardino, expressed concern
regarding this item being a political pay-off. He urged the Council
to approve a position that would benefit the City.
Councilwoman Miller stated that there was no vacancy in the
Council Office. She felt if the funds were available to hire an
Administrative Assistant, that Mr. Cole be rehired.
Discussion ensued regarding the need to fill this position, the
applicants requesting the position and funding source.
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Councilman Curlin indicated that he only became aware of Mr.
Cole's existence today. He recommended that two people be hired.
Mayor Minor commented on Mr. Arvizo's dedication to the Council
Office even when Mr. Cole was an employee. He felt that approving
this item with Agency funds would set a uncommon precedent.
Councilwoman Pope-Ludlam requested that a Committee be
c.3':ablished to discuss this item and conclude it within a timely
mai"ttler.
Councilman Curlin made a motion, seconded by Councilwoman Pope-
Ludlam to continue the matter to September 20, 1993; and that a
committee be established to resolve the issue.
Councilwoman Pope-Ludlam removed her second for further
discussion.
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Jim Penman, City Attorney, noted that the City Clerk's Office had
laid off staff as well as his office. He stated that all departments
were in need of additional staff. He felt that the Committee selected
to review this item should also take an overall look at staffing
problems throughout the City.
Councilman Curlin made a motion, seconded by Councilwoman Pope-
Ludlam to continue the matter to September 20, 1993; and that a
committee be established to resolve the issue.
. The motion carried by the following vote: Ayes: Council Members
Negrete; Curlin; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman
Hernandez. Abstain: None. Absent: None.
Mayor Minor stated that the Council Office would select the
Committee.
RS-l AWARD OF CONTRACT - PLATT BUJ:LDXNG DEMOLJ:TJ:ON AND ASBESTOS
ABATEMENT/REMOVAL
(Mayor and Common Council.)
Timothy C. Steinhaus, Administrator, Economic Development Agency,
indicated that this item relates to the demolition of the Platt
Building. He stated that staff requests the contract be awarded to
LDL Engineering.
Councilman Oberhelman made a motion, seconded by Councilman
Negrete, to authorize and direct the Executive Director to negotiate
Q~d execute a contract with the apparent low bidder - LDL Engineering,
Inc., for the demolition and asbestos abatement/removal at the Platt
Building in the amount of $181,000, plus 15% (fifteen percent)
contingency (total not to exceed $208,150).
Councilman Oberhelman made a motion, seconded by Councilman
Negrete, to authorize and direct the Executive Director to execute all
necessary documents related to the demolition and asbestos
abatement/removal of the Platt Building.
COUNCJ:LMAN NEGRETE WAS EXCUSED AT 8:50 P.M.
~OUNCJ:LMAN HERNANDEZ WAS EXCUSED AT 8: 50 P. M.
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Helen Kopczynski, Citizen, stated that she was not in support of
the demolition of the Platt Building or the Superblock.
Jeff Wright, P. O. Box 2341, San Bernardino, stated that he was
against this item. He felt that the Platt Building did not have to be
torn down and requested the Council reconsider this item.
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COMMISSION MEETING
September 7, 1993
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Mary Jane Wilson, 2796 "Err Street, San Bernardino, stated that I
-s4~'had lived in the City since 1947 and opposed the demolition of the __
Platt Building.
COUNC:ILMAN NEGRETE RETURNED AT 8:53 P.M.
Ms. Wilson informed the Council that she had approximately 1500
signatures of residents in favor of having the Platt Building
converted into a theater and historical place for the community.
COUNC:ILMAN HERNANDEZ RETURNED AT 8:55 P.M.
Ms. Wilson indicated that she was told if a tenant could be found
to occupy the building and paid for all improvements, that the City
would give them the building. She stated that a tenant had been found
and that they were making arrangements to obtain the funding needed to
repair the building.
C. D. Carter, Architect, spoke on the benefit of the Platt
Building to the City.
James Wirth, 1980 Sierra Way, San Bernardino, indicated that a
structural analysis needed to be done on the Platt Building and
questioned the statement in the report regarding structural design
flaws in the building.
Mr. Steinhaus explained that all structural questions needed to :J
be addressed by the Planning Department.
Councilman Hernandez emphasized the need to demolish the Platt
Building in order to build the new State Building which would bring
approximately 1500 people to the downtown area.
~~r. Wirth explained that Mr. Carter had designed an alternative
footprint with the Platt Building being part of the State Office
Building.
Jim Penman, City Attorney, stated that the Council has reviewed
this item on several occasions and that legal advice regarding
litigation had been discussed. He indicated that the Platt Building
did not appear to meet the criteria for a historical site.
The motion carried by the following vote: Ayes: Council Members
Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes:
None. Abstain: None. Absent: None.
CLOSED SESSION
RS-2 ADJOURN TO CLOSED SESS:ION
There were no items for discussion in Closed Session.
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RS-3 ADJOURNMENT
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At 9:20 p.m., the meeting of the Mayor and Common
Counci.l/Community Development Commission was adjourned to Monday,
Septenmer 20, 1993 at 11:00 a.m., in the Council Chambers of City
Hall, 300 North "D" Street, San Bernardino, California.
Respectfully submitted:
RE\;ULAR MEETING
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COMMISSION MEETING
September 7, 1993
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MAYOR AND COMMON COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
MINUTES
JOINT REGULAR MEETING
September 20, 1993
11 :00 a.m.
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 3:04 p.m., on Monday, September 20, 1993, in the Council Chambers, City Hall, 300
North "D" Street, San Bernardino, California.
I~OLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin;
Valerie Pope-Ludlam; Norine Miller. Absent: None.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Richard Morillo, Sr. Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Shauna
Clark, City Administrator; Fred Wilson, Assistant City Administrator; Rachel Clark, City Clerk;
Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Maria Hunt, The Sun Newspaper.
CONSENT CALENDAR
The Commission Members requested that items numbered "6", "7" and "8" be removed from
w(. Consent Calendar.
Commission Member Oberhelman made a motion, seconded by Commission Member Miller,
that the Consent Calendar items numbered "1" through "8" be adopted except for items numbered "6",
"7", and "8", respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
JOINT REGULAR MEETING
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COMMISSION MINUTES
SEPTEMBER 20, 1993
1. JOINT POWERS FINANCING AUTHORITY
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(Communitv Develonment Commission)
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Commission Member Oberhelman made a motion, seconded by Commission Member Miller,
that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, October
18, 1993.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
Nune.
Purchasine Division
2. TREE TRIMMING. CITY WIDE
(Mavor and Common Council)
Councilman Oberhelman made a motion, seconded by Councilwoman Miller, that the
following resolution be approved and adopted:
PESOLUTION NUMBER 93-359
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION
OF AN AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND WEST
COAST ARBORISTS INC., RELATING TO TREE TRIMMING SERVICES FOR TREE
TRIMMING PURPOSES.
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The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
N<.;r.e.
Public Worb Deoartment
3. HANDICAPPED RAMPS VARIOUS LOCATIONS
(Mavor and Common Council)
Councilman Oberhelman made a motion, seconded by Councilwoman Miller, that the
followin~ resolution be approved and adopted:
RESOLUTION NUMBER 93-360
RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO B-
1 ENTERPRISE CORPORATION FOR INSTALLATION OF HANDICAPPED RAMPS AT
VARIOUS LOCATIONS.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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COMMISSION MINUTES
SEPTEMBER 20, 1993
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Develooment Denartment
4. REPROGRAMMING OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBGl
FUNDS TO HANDICAPPED ACCESSIBILITY PROJECT
(Mavor and Common Council)
Councilman Oberhelman made a motion, seconded by Councilwoman Miller, to approve the
transfer and reprogramming of Community Development Block Grant (CDBG) funds in the amount of
$31,968.44 for the Handicapped Accessibility Project.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
5. TRANSFER OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBGl FUNDS
FOR PARKS. RECREATION AND COMMUNITY SERVICES PROJECTS
(Mavor and Common Council)
Councilman Oberhelman made a motion, seconded by Councilwoman Miller to approve the
transfer of Community Block Grant (CDBG) funds between certain Parks, Recreation and Community
Services Department projects.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
ITEM NOT ON THE AGENDA
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that Mr. Dan
Stark, Executive Director, Convention Center and Visitors Bureau would like to give a brief verbal
report on the Route 66 event.
Dan Stark, Executive Director, Convention Center and Visitors Bureau, thanked the various
Cii}' departments and a special thanks to his staff for contributing to the success of the Route 66
Rendezvous. He also thanked Nostalgia Television, Center Chevrolet and LeMans Nissan for their
contributions to Route 66.
David Anderson, Police Department, stated that approximately 110,000 people attended the
three day event with only one arrest. He also thanked the Police Explorers who came out and assisted
the Police Officers with traffic control and other minor details.
Officer Anderson contributed the success of the event to the volunteer system in San
Bernardino and also the Citizens Patrol Unit.
Commission Member Pope-Ludlam asked if a report would be done on the economic impact
this event had on the city.
JOINT REGULAR MEETING
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COMMISSION MINUTES
SEPTEMBER 20, 1993
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Mr. Stark stated that a report would be done and distributed to the Commission. He
emphasized that overall, vendors and downtown businesses were pleased with the outcome.
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SAN BERNARDINO MITSUBISHI CERTIFICATE OF COMPLETION
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(Community Develooment Commission)
Jeff Wright, P.O. Box 2341, San Bernardino, requested the Commission not negotiate with
Mitsubishi due to their participation in the damaging of the rain forest.
Commission Member Oberhelman made a motion, seconded by Commission Member Pope-
Ludlam, to ratify the execution of a Certificate of Completion and Waiver and Release of Right of
Reentry in connection with a refmancing of San Bernardino Mitsubishi's automobile dealership
property .
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
7. APPROVAL OF MT. VERNON CORRIDOR TAXING AGREEMENT WITH THE
COUNTY SUPERINTENDENT OF SCHOOLS
(Communitv Develooment Commission)
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Commission Member Hernandez questioned why the Agency was negotiating with the
Superintendent of Schools.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that by law,
negotiations had to take place with all taxing agencies when adopting a new redevelopment project
area. He indicated that these negotiations were to clear-up some discrepancies that were in the
~reement.
Commission Member Hernandez noted that some offices were renegotiating their agreements
due to property values decreasing.
Commission Member Hernandez made a motion, seconded by Commission Member
Oberhelman, that the following resolution be approved and adopted:
RESOLUTION NUMBER 5379
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A
CERTAIN FISCAL IMPACT AGREEMENT WITH THE COUNTY SUPERINTENDENT OF
SCHOOLS IN CONNECTION WITH THE ADOPTION OF THE MT. VERNON
CORRIDOR REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS AND ...,
DETERMINATIONS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION
33401.
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JOINT REGULAR MEETING
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COMMISSION MINUTES
SEPTEMBER 20, 1993
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
8. RESOLUTION OF SUPPORT FOR CAL-EPA ONE-STOP PERMIT CENTER
(Mayor and Common Council)
Jeff Wright, P. O. Box 2341, San Bernardino, stated that he wanted the Council to make sure
that CAL-EP A upholds the law.
COUNCILMAN CURLIN WAS EXCUSED AT 3:35 P.M.
Councilman Oberhelman made a motion, seconded by Councilman Hernandez that the
following resolution be approved and adopted:
RESOLUTION NUMBER 93-361
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO SUPPORTING THE LOCATION OF CAL-EPA INLAND EMPIRE ONE-
STOP PERMIT CENTER WITHIN THE CITY OF SAN BERNARDINO.
The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman
Curlin.
END OF CONSENT CALENDAR
COUNCILMAN CURLIN RETURNED AT 3:36 P.M.
9. MACYIBLAKE SEWER
(Mavor and Common Council)
Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez, to approve
CDBG funds in an amount not-to-exceed $25,000 to underwrite the MacylBlake Sewer Project
contingent upon the County of San Bernardino paying one-half (1/2) of the required costs.
Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez, that the
following resolution be approved and adopted:
RESOLUTION NUMBER 93-362
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF
UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE STATE
COLLEGE REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO
REDEVELOPMENT AGENCY.
JOINT REGULAR MEETING
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COMMISSION MINUTES
SEPTEMBER 20, 1993
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The motion carried by the followmg vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
END OF CONSENT CALENDAR
RS-t. PROJECT ADMINISTRATOR CONTRACT - STATE CONSOLIDATED OFFICES
AND CAL TRANS BUILDING
(Community Develooment Commission)
James Wirth, 1980 Sierra Way, San Bernardino, recommended the Council request the
Staubach Company meet with the State Office of Historical Preservation to discuss the preservation of
the Platt Building. He stated that the building was safe and that it could be incorporated into the
State Office Complexes.
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin,
to authorize the Agency Administrator to draft and execute a thirty (30) month contract with the
Staubach Company in the amount of $364,000 for project administration services for the Design and
Construction of the State Consolidated Offices and Caltrans Building on the Superblock.
Timothy C. Steinhaus,. Administrator, Economic Development Agency, stated that staff was
working with the consultants, the county, and city department to make sure they comply with all
codes.
Jeff Wright, P. O. Box 2341, San Bernardino, spoke on the need to address and consider the
historical aspects of the Platt Building.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
RS-2 CAMDEN DEVELOPMENT ASSISTANCE AGREEMENTS
(Communitv DeveloDment Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Devlin to
authorize the Executive Director to execute assistance agreements with Camden Development, Ltd., as
drafted by Agency Special Counsel; further that the Executive Director be authorized to execute such
other documents as are required to carry out the terms of the agreements and be authorized to make
such non-substantive corrections as are approved by Agency Special Counsel; and further, that the
Economic Development Agency budget of 1992-1993 be amended to provide an additional $1,250,712
to be used for assistance to the University Village Shopping Center development.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
JOINT REGULAR MEETING
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COMMISSION MINUTES
SEPTEMBER 20, 1993
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CONTINUED FROM SEPTEMBER 7, 1993
RS-3. ADMINISTRATIVE ASSISTANT TO COUNCIL/COMMISSION
(Mavor and Common Council)
(Councilman Hernandez's Recommendation)
Mayor Minor briefly discussed this item indicating that he did not believe it would solve the
problems that exist in the Council Office, nor did he believe it should be funded by the Agency.
Richard Morillo, Senior Assistant City Attorney, stated that the AD HOC Committee requested
the Attorney's Office to give an opinion on this item. He stated that the Attorney's Office concluded
that the Mayor was the only person who had the authority to make an appointment and he clearly was
not in agreement with this request.
Councilwoman Pope-Ludlam questioned why the motions from the previous Commission
Meeting were listed on this Cover Sheet when the AD HOC Committee had discussed and agreed to
other motions.
Discussion ensued regarding the difference between the Commission and the Common Council
and the different rules that apply to each.
Councilman Oberhelman felt the Council should discuss the merits of this position. He felt
the money used to fund this position would be better if applied elsewhere.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the
motions from the previous meeting were listed on this Cover Sheet because no new motions were
submitted from the Council Office as suggested at the AD HOC Meeting.
Councilman Hernandez reiterated on the need to hire someone to assist the Council Office
with its complaints. He stated that the Council Office had made appointments in the past.
Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez to continue
this item until a meeting is called and at that time an agenda item will be brought back that is
constructed by the Committee.
The motion carried by the following vote: Ayes: Commission Members Negrete;
Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain:
None. Absent: None.
CLOSED SESSION
RS-4. ADJOURNED TO CLOSED SESSION
At 4:20 p.m. the Mayor and Common Council and Community Development Commission
recessed to Closed Session for the following:
D.
to give instruction to the Commission's negotiator on the purchase of property pursuant
to Government Code Section 54956.8. The real property which the negotiations
concern is generally located at: 5055 Hallmark
JOINT REGULAR MEETING
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COMMISSION MINUTES
SEPTEMBER 20, 1993
END OF CLOSED SESSION
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RS-5 ADJOURNMENT
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At 4:45 p.m., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, October 4, 1993 at 11:00 a.m., in the Council Chambers of
City Hall, 300 North "D" Street, San Bernardino, California.
Respectfully submitted:
~QloIl,~
KENNETH . HEN ERSON
Executive Directorl
Secretary to the Commission
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COMMISSION MINUTES
SEPTEMBER 20, 1993
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MAYOR AND COMMON COUNCa
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
October 4, 1993
11:00 a.m.
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was called to order by Mayor Tom Minor at approximately 11:37 a.m., on Monday,
October 4, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bemardino,
Califomia.
ROLL CALL
Roll call was taken with the following members present: Chaiunan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obethelman; Jerry Devlin;
Valerie Pope-Ludlam; and Norine Miller. Absent: None.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Henry Empeno, Deputy City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Ernie
Wilson, Affiunative Action, Mayor's Office; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City
Clerk; La Vonda M-Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Maria Hunt, The Sun Newspaper.
The Commission Members requested that items numbered "1", "4" and "9" be removed from
the Consent Calendar.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin,
that the Consent Calendar items numbered "I" through "9" be adopted, except for items numbered
"I", "4" and "9".
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
REGULAR MEETING
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COMMISSION MINUTES
October 4, 1993
1
2. REDEVELOPMENT COMMITTEE MINUTES
(Communitv DevelQpment Commi!l!lion)
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin,
that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of
September 2, 1993, be received and filed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Public W orb D~partment
3. CONTRACT CHANGE ORDER NUMBER 7 - IMP~OVEMENTS TO MILL
COMMUNITY CENTER. PER PLAN NO. 8890 .. KIRKLEY DEVELOPMENT
(Mayor and Common Council)
Councilman Pope-Ludlam made a motion, seconded by Councilman Curlin, that Change Order
No. 7 to the contract with Kitkley development, Inc., for Improvements to the Mill Community
Center, in accordance with Plan No. 8890, be approved; to authorize installment of a rubberized
flooring system in the gym area, at an increase in the contract price of $18,865.00, from $623,351.75
to $642,216.75.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Development Department
5. DELMANN HEIGHTS WATER SYSTEM UPGRADE
(Community DevelQpment Commis!lion)
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin,
to approve an amount not to exceed $85,000 in bond proceeds to underwrite additional unexpected
costs associated with the Delmann Heights Water System Upgrade project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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6.
FY1993/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
AGREEMENT BETWEEN THE CITY AND HOME OF NEIGHBORLY SERVICES
(Mayor and Common Council)
Councilman Pope-Ludlam made a motion, seconded by Councilman Curlin, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 93- 386
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUfHORIZING AND DIRECTING THE EXECUTION OF A
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND HOME OF NEIGHBORLY SERVICES.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberl:1elman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
7. SANTA FE AUTOMOBILE DISTRIBUTION FACILITY
(Community DevelQpment Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin,
to approve a $110,000 contribution toward water facility improvements for the Santa Fe Automobile
Distribution Facility and authorize the Chainnan and Executive Director to execute all documentation
necessary to effectuate said transaction; and, that the Development Department budget be increased
accordingly.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberl:1elman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
8. SMAI~L BUSINESS LOAN COMMITTEE
(Communitv DevelQpment Commission)
Chairman Minor's Recommendation
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin,
to approve the attached five (5) candidates as members of the Small Business Loan Committee as
recommended by Chainnan Minor for appointment by the Chainnan and conflnnation by the
Commission.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
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1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Communitv Development Commission)
Commission Member Hernandez indicated that he voted yes to Item #16 at the September 7,
1993 Commission Meeting.
Commission Member Negrete made a motion, seconded by Commission Member Obemelman,
that the minutes of the Community Development Commission of the City of San Bemardino for the
meetings of September 7,1993 and September 20, 1993 be approved, as mnended.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
4.
1\DOPTION OF NEGATIVE DECLARATION AND FINDING OF CONSISTENCY
WITH CIRCULATION ELEMENT OF (;ENERAL PLAN - CONSTRUCTION OF
LANDSCAPE MEDIANS TRAFFlC DIVERTERS --- NEWCOMB ST.. MCKINLEY.
AND DUMBARTON A VJj:NUES. BETWEEN 20TH STREET AND HIGHLAND
AVENUE -- PUBLIC WORKS PROJECT NO. 93-04
(Mavor and Common Council)
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Kenneth J. Henderson, Executive Director, Development Department, explained that the
Commission had previously approved $1.5 million for the Arden Guthrie Project. He stated that a
portion of those funds were for the completion of common area improvements.
Commission Member Hemandez suggested that a report be developed which summarized the
effectiveness of the management company located on site in the complex.
Mr. Henderson stated that a number of reports had been developed regarding the security in
the complex. He also infonned the Commission that escrow on the Multi-Use Facility would be
closing soon and that the first task force meeting would take place this week.
Commission Member Hernandez asked who was responsible for the security in the complex.
Mr. Henderson indicated that the security in the complex was the responsibility of the Equity
Management Service, the Agency's designated project managers.
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October 4, 1993
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Commission Member Miller made a motion, seconded by Commission Member Oberhelman,
that the Negative Declaration for Public Wolks Project No. 93-04, construction of landscape medians,
90 degree parking, and traffic diverters in Newcomb Street, McKinley Avenue and Dumbarton
Avenue, between 20th Street and Highland Avenue, be adopted.
Commission Member Hernandez made a motion, seconded by Commission Member
Oberhelman, that a rroding be made that Public Wolks Project No. 93-04 is consistent with the
circulation element of the Geneml Plan.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez.
Absent: None.
Arencv Administration
9. MASTf:R SERVI<;ES AGREEME~T BETWEEN THE ECONOMIC DEVELOpMf;NT
A(;El'IlC'X ~ND THE DEPt\.RTM~~T OF PLANNING AND BUILDING SERVICES -
fROPQSl!;D BUILDI~G INSPECTION (REHABILITATION) AND CODE
ENFORCEMENT SERVICES
(Community Development Commission)
Commission Member Hernandez expressed concern regarding the Planning and Building
r Services Department using redeveloprnent funds.
I
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requested by Planning and Building Services Department would allow it to keep existing staff
employees. He explained that due to the large size of tge Central City Revitilization Stmtegy Area.
enhanced code enfolCement would be needed.
Commission Member Hernandez commented on the costs incurred by property owners who
are cited for remodeling without pennits.
Mr. Henderson explained that according to AI Boughey, Director of Planning and Building
SelVices, if someone has built on their property without pennits, the fee is the same as if they had
went through planning and obtained the proper pennits needed.
Al Boughey, Director of Planning and Building Services, stated that when complaints are
made regarding property, his department tries to resolve the complaint on a voluntary basis with the
owner. However, if the need to take corrective action arises, the complaint is taken to the Board of
Building Commissioners and the owner must pay administmtive fees, corrective action costs and any
other related costs.
Mr. Boughey also explained that if a property owner is building illegally, he must stop
building, have a pre-inspection done on the property and pay the pennit fees.
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COMMISSION MINUrES
October 4, 1993
Commission Member Hernandez reiterated that he wanted the Planning Department to go with
a positive pro-active program when investigating complaints. ~
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 11:54 A.M.
...."
Commission Member ObeIhelman made a motion, seconded by Commission Member Miller,
to am end the Master Services Agreement between the Economic Development Agency and the
Department of Planning and Building Services in an amount not to exceed $208,250 for enhanced
building inspection and code enforcement services in the Central City Revitalization Strategy Area.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIhelmaq.; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
COMMISSION MEMBER POPE-LUDLAM RETURNED AT 12:00 P.M.
END OF CONSENT CALENDAR
Afency Administration
10. PROGRAMMING SERVICES-STATE CONSOLIDATED OFFICES AND CALTRANS
BUILDING
(Community Development Commission)
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Commission Member Miller made a motion, seconded by Commission Member Negrete, to
authorize the Agency Administrator to draft and execute a contract with Keating Mann Jernigan Rottet
in an amount not to exceed $90,000 for architectural programming services for the design of the State
Consolidated Offices and Caltrans Building on the Superblock site.
Timothy C. Steinhaus, Administrator, Economic Development Agency, noted a correction to
the Agenda Cover Sheet stating that the motion should read $80,000 and not $90,000.
Commission Member Hernandez stated that the City had been criticized for using outside
developers. He requested infoDIlation regarding safeguards being used to eliminate this problem.
Mr. Steinhaus explained that the Agency would follow the state guidelines regarding the hiring
of disabled veterans, women and minorities. He also indicated that the local rules of the City would
apply regarding the hiring of local businesses. He stated that if a local vendor is not hired, the
Agency must document the reason for hiring a non-local vendor.
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James Wirth, 1980 Sierra Way, San Bemardino, reported to the Commission that this item was
related to the historic Platt Building. He read a letter which referenced the Frank C. Platt Building as
a historical building and requested the Commission recommend to the contractor that the State Offices
utilize the Platt Building.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 12:04 P.M.
Commission Member Pope-Ludlam recommended that an Afflunative Action Committee be
developed to help in utilizing local flnns for this project.
COMMISSION MEMBER CURLIN RETURNED AT 12:05 P.M.
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 12:05 P.M.
Commission Member Miller infonned the Commission that the project manager selected for
the office building would not select the architects for the project, only give recommendations. She
stated that the City would make the final selection.
COMMISSION MEMBER POPE-LUDLAM RETURNED AT 12:08 P.M.
Commission Member Negrete stated that the committee worlc.ing on this project had met on a
regular basis to discuss the proposals. He explained that not all local finns had the necessary
qualifications to complete this project, but that the selections made were fair.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hemandez.
Absent: None.
11. CONSULTANT TO THE COMMISSION/COUNCIL
(Community Develo,pment Commission)
Councilman Hel'Qandez's Recommendation
Mayor Minor stated that this item would be discussed after the Planning Session this
afternoon.
MEETING ADJOURNED
At 12:11 pm. the meeting of the Mayor and Common Council and the Community
Development Commission was adjourned until 2:00 pm.
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MEETING RECONVENED
At 2:50 pm., the meeting of the Mayor and Common Council and the Community
Development Commission was called to order.
ROLL CALL
Roll call was taken with the following members present: Chaion an Tom Minor, Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jeny Devlin;
Valerie Pope-Ludlam; and Norine Miller. Absent: None.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Hemy Empeno, Deputy City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor, Phil Arvizo, Executive Assistant to the Council; Rachel
Clark, City Cleric; Suzanna Cordova, Deputy City Cleric; La Vonda M-Pearson, Recording Secretary,
Development Department.
OTHERS IN ATTENDANCE
Maria Hunt, The Sun Newspaper.
11.
CONSUL T ANT TO THE COMMISSION/COUNCIL
(Community Development Commission)
Councilman Hernandez's Recommendation
Jim Lynas, Citizen, read a letter written by himself to the Commission regarding previous
contacts with the Council Office. In his letter he made references to Commission Member Hernandez
trying to be involved in all city activities including those outside of his ward.
Mr. Lynas concluded his remaries by stating that all the woric in the Council Office funnels
through Councilman Hemandez. He stated that the hiring of Mr. Johnston would only increase
Councilman Hernandez's ability to become involved with all wards.
Commission Member Hernandez commented that the statements made by Mr. Lynas were not
true. He emphasized that as a Councilmember for the City, he is required to represent all citizens in
the City under the charter.
Hemy Empeno, Deputy City Attorney, advised the Commission of the legal matters pertaining
to this contract. He stated that Motion C of this item was worded improperly and that it would need
to have Council approval.
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October 4, 1993
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Commission Member Hemandez stated that Motion C was being removed from this item.
Mr. Empeno explained that as a Consultant, you control your own actions and set your own
guidelines. He referred to the Scope of SelVices listed in the back-up as Attachment A and identified
certain points within the attachment which specified certain direction and rules which were
inappropriate for a Consultant. He also discussed the possibility of a suit arising from this agreement
due to the job description being that of a regular employee and not a Consultant. He stated that the
wolk proposed for Mr. Johnston is currently being done by other staff employees on a regular basis.
Mr. Empeno answered questions relative to the direction and the drafting of this agreement.
Commission Member Hernandez stated that he requested the City Attorney's Office to draft a
legal document that would enable the hiring of Mr. Johnston as a Consultant. He spoke on previous
problems in the past when dealing with that office.
Commission Member Miller expressed her comments regarding the approach taken to hire Mr.
Johnston to the Council Office.
Discussion ensued regarding political appointments being made within City Hall.
Commission Member Curlin discussed the actions taken by the Commission at the
September 7, meeting and the development of the AD HOC Committee that reviewed the need for this
position.
COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 3:22 P.M.
Commission Member Oberhelman stated that this item still does not address the need to hire
someone who can solve the problems being identified in the complaints submitted to the Council
Office.
COMMISSION MEMBER POPE.LUDLAM RETURNED AT 3:24 P.M.
Commission Member Pope-Ludhm spoke of the need to hire additional help in the Council
Office. She stated that the Council Office has seven (7) elected officials with only one (1) staff
person to assist them and three (3) clerical staff members.
Rachel Clark, City Clelk, stated that all vacancies within the City CleIk's Office were open to
the public and been filled with applicants who tested and intelViewed through the nonnal hiring
process.
Mayor Minor stated that he had made public appointments that were done legally and
discussed the procedure in which they are made.
COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 3:58 P.M.
Commission Member Hernandez indicated that the Mayor should not have the right to veto a
council appointee.
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October 4, 1993
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COMMISSION MEMBER POPE-LUDLAM RETURNED AT 4:01 P.M.
Commission Member Hernandez made a motion, seconded by Commission Member
Oberhelman to direct the legal office to sit down with staff and modify the Agreement and Scope of
Services.
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Mr. Empeno stated that the current agreement could not be amended to comply with state law
unless the facts are provided by staff to change the Scope of Services.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he needed
additional direction regarding the services needed for this position.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 4:04 P.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 4:06 P.M.
Commission Member Pope-Ludlam recommended this item be referred to the AD HOC
Committee to tIy and make the contract legal and to discuss the type of staff needed in the Council
Office.
Commission Member Curlin stated that he would not like to participate on the AD HOC
Committee due to the polarizing of the Commission regarding this matter.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller,
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; ...J
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None.
Absent: None.
CLOSED SESSION
12. ADJOURN TO CLOSED SESSION
There were no items for discussion in Closed Session.
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13. ADJOURNMENT
At 4:20 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Thursday, October 21, 1993 at 11:00 a.m., in the Council Chambers of
City Hall, 300 North "D" Street, San Bernardino, California.
Respectfully submitted:
KE~JNDERSON
Executive Director/
Secretary to the Commission
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MAYORANDCOMMONCOUNca
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
MINUTES
JOINT REGULAR MEETING
October 21 , 1993
11:00 a.m.
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 11:44 pm., on Thursday, October 21, 1993, in the Council Chambers, City Hall, 300
North "D" Street, San Bernardino, California.
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor, Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obemelman; Jerry Devlin;
Valerie Pope-Ludlam; Norine Miller. Absent: None.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney;
Lorraine Velarde, Executive Assistant to the Mayor, Phil Arvizo, Executive Assistant to the Council;
Rachel Clark, City Clerlc; Melanie Vale, Deputy City Clerlc; La Vonda M-Pearson, Recording
Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper.
CONSENT CALENDAR
The Commission Members requested that item number ""7" be removed from the Consent
Calendar.
Commission Member Obemelman made a motion, seconded by Commission Member
Hernandez, that the Consent Calendar items numbered "1" through "8" be adopted except for items
number "7", respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
JOINT REGULAR MEETING
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OCTOBER 21, 1993
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1. JOINT POWERS FINANCING AUTHORITY
(Community Development Commission)
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Commission Member ObeIbelman made a motion, seconded by Commission Member
Hernandez, that the Regular Meeting of the Joint Powers Financing Authority be continued to
Monday, November 15, 1993.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIbelman; Devlin; Pope-Ludlllll; Miller. Noes: None. Abstain: None. Absent:
None.
2. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community Development Commission)
Commission Member ObeIbelman made a motion, seconded by Commission Member
Hernandez, that the minutes of the Community Development Commission of the City of San
Bernardino for the meeting of October 4, 1993, be approved as submitted in typewritten fonn.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIbelman; Devlin; Pope-Ludlllll; Miller. Noes: None. Abstain: None. Absent:
None.
(Community Development Commission)
J
3.
REDEVELOPMENT COMMITTEE MINUTES
Commission Member ObeIbelman made a motion, seconded by Commission Member
Hernandez, That the minutes of the Redevelopment Committee of the City of San Bernardino for the
meetings of September 23, 1993 and October 7, 1993 be received and filed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIbelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
Public Works Department
4. ADVERTISE FOR BIDS. INSTALLATION OF TUBULAR STEEL FENCE AT MILL
COMMUNITY CENTER
(Mavor and Common Councm
Councilman ObeIbelman made a motion, seconded by Councilman Hernandez, that the plans
for the installation of tubular steel fencing at Mill Community Center Pool, in accordance with Plan l. ...
No. 8830, be approved; and that the Director of Public Works/City Engineer be authorized to advertise ...
for bids.
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The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
5. IMPROVEMENT OF HIGHLAND AVENUE FROM DENAIR AVENUE TO BOULDER
AVENUE
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, that Change Order No. One to the contract with Bear Valley Paving, for the improvement
of Highland Avenue, from Denair Avenue to Boulder Avenue, in accordance with Plan No. 8801, be
approved, to authorize the Contractor to install an additional 1,706 feet of 8-inch concrete median
curb, and substitute 6-inch concrete median curb for the 8-inch concrete median curb, as shown on the
plans, at an estimated increase of $11,391.11 in the contract price, from $552,832.00 to $564,223.11.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
Main Street
6.
DECORATIVE LIGHTING PROGRAM
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, to authorize the Agency Administrator to contract with Dekra-Lite to provide and install
penn anent decorative lighting. The property owners and/or businesses to reimburse the Agency 50%
of the cost of private property
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
8. RENEW AL OF SECURITY DISTRICT FOR THE BASELINE AREA BUSINESS
ASSOCIA TION
(Communitv Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, to allocate $34,675 to the Baseline Area Business Association (BABA) for private security
selVices subject to the equal and prior matching contribution of $34,675 from BABA, and authorize
the Executive Director to develop and execute all necessary documents to effectuate this transaction.
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OCTOBER 21, 1993
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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Development Department
7. SANTA FE AUTOMOBILE DISTRIBUTION FACILITY
(Community Development Commission)
Commission Member Hernandez voiced concern regarding the verbiage used in the mutual
benefit resolutions for this item.
Kenneth J. Henderson, Executive Director, Development Department, explained that the
wording used for the mutual benefit resolutions were boiler plates.
MAYOR MINOR WAS EXCUSED AT 11:48 A.M.
Timothy C. Steinhaus, Administrator, Economic Development Agency summarized the actions
surrounding this item, indicating that the Commission approved the construction of the water line at its
last regularly scheduled meeting, and that the only funds available to fund this project was from the
State College Project area.
MA YOR MINOR RETURNED AT 11:50 A.M.
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Mr. Steinhaus indicated that the water line would benefit the entire City by providing new
jobs and facilitating General Motor'sreuse of the Santa Fe Rail yards.
Commission Member Obemelman made a motion, seconded by Commission Member Negrete,
that the following resolution be approved and adopted:
RESOLUTION NUMBER 5390
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE
BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE
STATE COLLEGE REDEVELOPMENT PROJECf AREA OF THE SAN BERNARDINO
REDEVELOPMENT AGENCY.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Obemelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None.
Absent: None.
Councilman Obemelman made a motion, seconded by Councilman Negrete, that the following
resolution be approved and adopted:
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OCTOBER 21, 1993
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(Mayor and Common Council)
RESOLUTION NUMBER 93-402
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF
UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE STATE COLLEGE
REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO REDEVELOPMENT
AGENCY.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Oberllelman; Devlin; Pope-Ludlmn; Miller. Noes: Councilman Hernandez. Abstain: None. Absent:
None.
END OF CONSENT CAT .RNDAR
(PUBLIC COMMENTS ON ITEMS NOT ON AGENDA)
James Wirth, 1980 Siena Way, San Bernardino, infonned the Commission that when the City
purchased the Platt Building, there were approximately 1500 valuable posters inside. He stated that if
the posters were still present in the building, he would like to request they be placed in the library for
the public's viewing; however, if they are the property of the owner, he would like them to be
returned to him.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 11:53 A.M.
Mayor Minor infonned Mr. Wirth that a report would be given at the next meeting on
November 1, 1993 regarding the posters.
9. CALIFORNIA INN (SRO)
(Community Development Commission)
Redevelopment Committee Recommendations
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that items
numbered "9", "10" and "11" are issues that have come to the Commission through Closed Session,
Redevelopment Committee Meetings and meetings with the Mayor, the Redevelopment Committee
Members and individual loan clients.
Commission Member Oberllelman made a motion, seconded by Commission Member Miller
that these items be continued for two weeks.
Commission Member Miller removed her second for discussion purposes.
Discussion ensued regarding the continuance of the remainder of the agenda until November
1, 1993.
JOINT REGULAR MEETING
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COMMISSION MINUTES
OCTOBER 21, 1993
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Commission Member Hemandez made a motion, seconded by Commission Member Pope-
Ludlam to continue the agenda at 2:00 pm.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Devlin;
Pope-Ludlam. Noes: Commission Members Obethelman; Miller. Abstain: None. Absent:
Commission Member Curlin.
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At 11:54 am. the Mayor and Common Council recessed until 2:00 pm.
MEETING RECONVENED
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At 2:02 pm. the Joint Regular Meeting of the Mayor and Common Council, the Community
Development Commission and the Joint Powers Financing Authority was called to order by Mayor
Tom Minor.
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obethelman; Jeny Devlin;
Valerie Pope-Ludlam; Norine Miller. Absent: None.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney;
Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council;
Rachel Clark, City Cleric; Melanie Vale, Deputy City Cleric; La Vonda M-Pearson, Recording
Secretary, Development Department.
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OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper.
COMMENTS
Commission Member Curlin gave comments on a seminar he attended regarding smoking and
tobacco. He spoke on the hazards of smoking and the results it had on individuals. He infonned the
public that the City would be sponsoring a task fon:e to discuss this item and if interested please call
(909) 880-5567.
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COMMISSION MINUTES
OCTOBER 11, 1993
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9.
CALIFORNIA INN (SRO)
(Community Development Commission)
Redevelopment Committee Recommendations
Kenneth J. Henderson, Executive Director, Development Department, gave a brief history on
items numbered "9", "10" and "11". He stated that the Commission was nonnally made aware of the
financial status of various projects through the monthly notes receivable report.
Mr. Henderson explained that Califomia SRO required additional action to take place in order
to come about. He also noted that staff, a member from the Mayor's Office and a representative from
LARCON Development met with the Housing Authority regarding financial assistance from its
organization for this project. He said that the Housing Authority indicated that it could not provide
assistance at this time.
Discussion ensued regarding the use of Secretary of Housing and Urban Development (HUD)
Discretionary Funds.
Commission Member Hemandez made a motion, seconded by Commission Member Pope-
Ludlam that the following motions be approved:
That the Community Development Commission authorize staff to retain a professional
consultant to prepare a Comprehensive Market Analysis on the proposed Califomia Inn Single Room
Occupancy (SRO) project.
That the Community Development Commission direct staff to take actions, in conjunction with
Larcon Development, Inc., to develop a modified project Schedule of Perfonnance.
That the Community Development Commission direct staff to investigate, in conjunction with
Larcon Development, Inc., potential County of San Bernardino Housing Authority fmancial assistance
relative to California Inn project.
Mayor Minor stated that at the Committee Meeting, he indicated to Mr. Lara that he was not
completely sold on .the site selected, and that Mr. Lara had requested his time be extended for six (6)
months.
Commission Member Obemelman questioned the Agency resources tied-up with this project.
Mr. Henderson stated that the Commission approved fmancial assistance to this project in the
amount of $2.005,000 million and the donation of parcel worth $500,000. He noted that those
resources would not be available for other projects unless this agreement was tenninated.
Commission Member Miller questioned the commitment by the Agency in the new
Development and Disposition Agreement (DDA).
Mr. Henderson explained the funding sources for this project indicating that the developer
anticipated receiving $1 million from other entities. He reiterated that the Housing Authority did not
foresee the ability to provide fmancing for the project but the developer they could still apply for the
discretionary funds which were very competitive.
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COMMISSION MINUTES
OCTOBER 21,1993
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Mr. Henderson clarified the proposed use of the $1 million ftmds stating that it would be used
to reduce the rent range from $315 to $440 per month to 325 to 390 per month.
Commission Member Hernandez explained that the project could still continue without the $1
million ftmding. He stated that it would only cause the rent to be higher. He emphasized that this
project would accommodate and benefit the citizens of San Bernardino.
Mr. Henderson mentioned that the location of Fifth and "E" Street for the SRO was selected
due to the developer not being able to acquire the Argonant Hotel site and the Great Western location.
Commission Member Miller commented on the visit to San Diego to view the SROs,
indicating that they were not located on major streets as suggested for the California SRO.
Mr. Henderson discussed the schedule of peIfounance for the California SRO.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 3:34 P.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 3:35 P.M.
Commission Member Curlin questioned the feasibility and need for this project.
Mr. Henderson answered questions relative to Commission Member Curlin's concerns.
Commission Member ObeIbelman commented on the developers comments regarding not
being able to obtain financing without a Conditional Use Peunit (CUP) when other projects have
obtained financing which were conditional upon receiving all entitlements. He questioned if the
financing difficulties experienced by the developer were due to the type of project this was.
Mr. Henderson responded by stating that an SRO was still a very new concept to the private
lending community and recommended that a market study be completed.
Commission Member Pope-Ludlam spoke on the ability to obtain discretionary ftmds
especially when the ftmds would benefit low-income individuals.
Mayor Minor expressed his concerns regarding the project's stability and location.
Lee Lopez, Attorney representing the Saint Bemardine Plaza and the Catholic Diocese,
discussed the problems that would be caused by the SRO and those being experienced by the
developer. He stated that the developer, who was now requesting additional ftmds and time, was also
having difficulties complying with codes. He stressed the need of a market study stating that it would
educate the Commission on the decisions they were making in reference to this project.
Commission Member Devlin advised the Commission to focus on the technical default status
of this project.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the
Agency was currently in the process of interviewing fiuns to complete the market study.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hemandez; Pope-Ludlam. Noes: Commission Members ObeIbelman; Devlin; Miller. Abstain:
None. Absent: None.
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COMMISSION MINUTES
OCTOBER 21, 1993
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ARROW VISTA HOUSING DEVELOPMENT PROJECT
(Community Development Commission)
Redevelopment Committee Recommendations
Commission Member Hemandez explained that the Commission was to be provided with a list
of buyers for the Arrow Vista Homes. He explained that there was a discrepancy with the list and
requested this item be continued to the next regularly scheduled meeting.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to continue this item until November 1, 1993.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
11. ROGER'S BINDERY
(Communitv Development Commission)
Redevelopment Committee Recommendation's
Kenneth J. Henderson, Executive Director, Development Department, explained that Roger's
Bindery indicated to staff that it could receive a loan at 18% interest if the fonn motions were
approved by the Commission. He stated that the finn currently owed the Agency $56,000, not
including interest and penalty charges.
Mayor Minor indicated that during discussions with Rogers Bindery, Mr. Imbriani infonned
the Committee that he could not pay back his loan and stressed that the Mayor and Committee review
the amount of residents he employs.
Mr. Henderson explained that staff was currently wOlking under the existing agreement
approved by the Commission. He stated that if the motions were approved, staff would need to
negotiate a deferral period with Roger's Bindery.
Commission Member Obethelman asked for staffs recommendation at the Committee
Meeting.
Mr. Henderson indicated that staff recommended foreclosure. He summarized the previous
attempts to bring Roger's Bindery current on its loan stating that notices had been sent on a regular
basis.
Commission Member Miller questioned the actions taken by staff if the Commission chooses
to foreclose on Roger's Bindery.
Mr. Henderson explained that it takes approximately 120 days to foreclose on a business. He
mentioned that in most cases when businesses are faced with foreclosure, they manage to come obtain
the funds necessary to pay its debts.
JOINT REGULAR MEETING
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COMMISSION MINUTES
OCTOBER 21, 1993
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Commission Member Obethelman made a motion, seconded by Commission Member Pope-
Ludlam to initiate foreclosure on Roger's Bindery. ..,
Commission Member Pope-Ludlam recommended the Commission adjoum to closed session ~
to further discuss this item. ....-
Commission Member Hemandez expressed concern regarding the number of employees who
worlc for Roger's Bindery and how the foreclosure would affect them.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the
Agency's security for the loan was the bindery's equipment.
The motion failed by the following vote: Ayes: Commission Members Curlin; Obethelman;
Devlin. Noes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Abstain: None.
Absent: None.
Commission Member Negrete recommended a time limit be placed on Motion C.
Commission Member Obethelman commented on the risks to the City by continuing to
support delinquent loans.
Mayor Minor infonned the Commission that during a Committee Meeting, Mr. Imbriani
infonned the Committee that he had paid certain elected officials to make his loan a grant.
Jim Penman, City Attorney, summarized the actions and comments made by Mr. Imbriani, and
also the grounds for suit against the City in reference to this item and the discussion taking place.
COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 3:25 P.M.
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Mr. Steinhaus recommended staff worlc with Roger's Bindery to obtain infonnation regarding
its business operations.
COMMISSION MEMBER POPE.LUDLAM RETURNED AT 3:27 P.M.
Commission Member Miller made a motion, seconded by Commission Member Obethelman,
to reconsider this item.
The motion carried by the following vote: Ayes: Commission Members Curlin; Hernandez;
Obethelman; Devlin; Miller. Noes: Commission Members Negrete; Pope-Ludlam. Abstain: None.
Absent: None.
Commission Member Miller made a motion, seconded by Commission Member Devlin, to
initiate foreclosure on Roger's Bindery.
Commission Member Hernandez requested staff to review books and operations of Roger's
Bindery and bring this item back to the next Commission Meeting with a recommendation.
Commission Member Obemelman reminded the Commission that if foreclosure was initiated,
there would be a time span of 120 days in which staff could review the books, employees and
equipment of the bindery. -..Ii
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COMMISSION MINUTES
OCTOBER 21, 1993
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Mayor Minor recommended staff review others businesses of Roger's Bindery outside of San
Bernardino.
Commission Member Pope-Ludlam questioned staffs ability to look into the other businesses
of Mr. Imbriani.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Obemelman; Devlin; Miller. Noes: Commission Member Pope-Ludlam. Abstain: Commission
Member Hernandez. Absent: None.
12. PAY INCREASE FOR COMMISSION MEMBERS
(Community Development Commission)
Commission Member Pope-Ludlam commented on the need to make the position of Council
Member more competitive. She stated that the low salary of $50.00 per month which was
implemented in 1937, discourages qualified candidates to run for the position.
Commission Member Pope-Ludlam spoke on the job being a full-time position and how
difficult it was being a Council Member. She stated that San Bernardino had the lowest paid Council
Members in the state. She recommended that a regular salary for these positions be implemented.
COMMISSION MEMBER MILLER WAS EXCUSED AT 3:40 P.M.
Commission Member Obemelman emphasized that the citizens who ran for election in the
Fifth Ward were from a wide diversity. He noted his ability to work on the Council due to
compressed work weeks and felt that the pay he received as a member of the board was adequate.
Commission Member Negrete recommended that if a salary was implemented for the position
and a member did not wish to receive the salary, they could donate their portion to charity.
Mayor Minor indicated that the board members currently receive $9,000 a year. He stressed
that if the members chose to receive $2,500 a month, it would place a burden on the Agency of
$200,000. He stated that if the members wished to receive an increase they place it on the ballot for
the next election and allow the citizens to vote for it.
Commission Member Negrete recommended a salary be implemented in conjunction with that
received from other local cities of equal size as San Bernardino, such as Riverside, Long Beach,
Oceanside and Huntington Beach.
Mayor Minor requested that a specific dollar figure be listed in any motion given by the
Commission. He reiterated that this item be referred to the City Clerk's Office and that a Charter
Amendment be requested on the June ballot for the increase of board members.
Discussion ensued regarding the month for the next primary election.
Commission Member Pope-Ludlam recommended that a committee be established to review
the salaries of comparable cities and to prepare a charter amendment.
JOINT REGULAR MEETING
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COMMISSION MINUTES
OCTOBER 21, 1993
- 11 -
Commission Member Negrete made a motion, seconded by Commission Member Curlin, that
the salary for Council Members be set at $2,300 a month, and that the salary for the Commission
remain the sam e.
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Commission Member Pope-Ludlam made a substitute motion, seconded by Commission
Member Miller, to re-activate the charter to review and complete all changes necessary regarding a
salary for the Council.
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Discussion ensued regarding the members of the charter.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:10 P.M.
COMMISSIOr.j MEMBER CURLIN RETURNED AT 4:11 P.M.
Commission Member Pope-Ludlam made a substitute motion, seconded by Commission
Member Hernandez, to refer this item to the Redevelopment Committee.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Pope-Ludlam; Miller. Noes: Commission Members Oberhelman; Devlin. Abstain: Commission
Member Curlin. Absent: None.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:14 P.M.
RS-l. POLICY FOR SELECTING VENDORS THAT APPLY FOR RFO
(Communitv Development Commission)
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Councilman Hernandez's Recommendation
Commission Member Hernandez expressed disappointment with the selection of vendors for
the State Building. He felt the local vendors were excluded from participating in this project. He
proposed a fonnula for the selection of local vendors.
COMMITTEE MEMBER POPE-LUDLAM WAS EXCUSED AT 4:16 P.M.
Commission Member Devlin agreed that local vendors should receive priority but stated that
they would still need to be qualified for the project.
COMMISSION MEMBER POPE-LUDLAM RETURNED AT 4:18 P.M.
Commission Member Oberhelman questioned the defInition of local vendors.
Commission Member Miller stressed the need to hire qualified vendors for this project. She
stated that if the qualifications were equal between the local and the outside vendor, the local vendor
should be selected.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 4:20 P.M.
Commission Member Pope-Ludlam expressed concern regarding local vendors not being
selected for this project.
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COMMISSION MINUTES
OCTOBER 21, 1993
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COMMISSION MEMBER CURLIN RETURNED AT 4:21 P.M.
Discussion ensued regarding the selection process for hiring vendors for the State Consolidated
Offices. It was noted that both Commission Member Negrete and Commission Member Miller serve
on the board.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:24 P.M.
Commission Member Hernandez questioned the Staubach Company's role in this project.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the
Committee selected for the State Offices had met on several occasions. He revealed that not all local
vendors applied for this project and stated that only one (1) local vendor was selected as one of the
top five (5).
Mr. Steinhaus requested clarification from the Commission as to what they considered a local
vendor. He explained that many vendors have small offices in the City, but indicated that their main
headquarters was located in other cities.
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 4:26 P.M.
COMMISSION MEMBER POPE-LUDLAM RETURNED AT 4:27 P.M.
Mayor Minor concurred with Mr. Steinhaus emphasizing that many vendors have their banks
and corporate headquarters outside of San Bernardino.
Commission Member Negrete explained the actions taken place by the State Offices
Committee in reference to the selection of vendors.
COMMISSION MEMBER OBERHELMAN RETURNED AT 4:34 P.M.
Kenneth J. Henderson, Executive Director, Development Department, explained that when the
Staubach Company contacted the five (5) finalists for the project, they were infoDIled that MBE/WBE
and local vendors were important issues with the City of San Bernardino.
Greg Villanuava, 330 North "0" Street, San Bernardino, indicated that he was a local architect
in the City and that he had submitted a proposal for this project. He briefed the Commission on
previous projects he completed which included the Feldhym Library. He stated that he had invested
approximately $300,000 in taxes in the City and that he has held a City business license since 1983.
Mr. Villanuava spoke on the lack of development within the City for the past 13 years. He
questioned the Commission's process of selection for this project.
Commission Member Miller expressed concem regarding the infoDIlation requested by
Mr. Villanuava being of confidential nature.
James Penman, City Attomey, confiDIled that this infoDIlation should not be discussed.
Mayor Minor commented that the Committee for the State Offices was selected to deal with
these issues.
JOINT REGULAR MEETING
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COMMISSION MINUTES
OCTOBER 21, 1993
- 13 -
Discussion ensued regarding the definition of a "local" vendor and the tenns for hiring a local
vendor. ....,
Mr. Steinhaus suggested each Commission Member provide him with their defmition of a .~
local vendor, and he would compile each of them and bring it to the Commission for its review in two ....
(2) weeks.
Commission Member Negrete recommended that two (2) local companies be intetviewed for
this project and added to the short list of five (5) architectural finns.
Commission Member Miller suggested that the entire Committee be involved with that
decision.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:05 P.M.
Mr. Penman expressed concem regarding the Commission deviating from nonnal procedure
for this type of activity.
COMMISSION MEMBER OBERHELMAN RETURNED AT 5:07 P.M.
Commission Member Negrete made a motion, seconded by Commission Member Pope-
Ludlam, that the State Consolidated Office and Caltrans Building Proposal (Super-Block) Committee
be requested to intetview the two local companies.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hemandez;
Obemelman; .Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent:
Commission Member Curlin.
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COMMISSION MEMBER NEGRETE WAS EXCUSED AT 5:09 P.M.
NB-l ARROW VISTA LANDSCAPE AND SECURITY
(Community Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member
Hemandez, that the need to take action on this item arose after the posting of the Agenda.
The motion carried by the following vote: Ayes: Commission Members Hemandez;
Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission
Members Negrete; Curlin.
Kenneth J. Henderson, Executive Director, Development Department, explained that the
landscape and security agreement for setvices at the Arrow Vista Housing project expired at the end
of the month. He requested the Commission approve an extension to continue the $20,000 a month
setvices.
Commission Member Obemelman made a motion, seconded by Commission Member Pope-
Ludlam, to extend the security and landscape maintenance setvices for the Arrow Vista Housing
project for ninety (90) days.
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COMMISSION MINUTES
OCTOBER 21, 1993
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The motion carried by the following vote: Ayes: Commission Members Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission
Members Negrete; Curlin.
RS-2. AD.JOURN TO CLOSED SESSION
At 5:13 pm. the Mayor and Common Council and Community Development Commission
recess to Closed Session for the following:
A. to confer with the attorney regarding pending litigation which has been initiated
fODllally to which the Commission is a party pursuant to Government Code Section
54956.9(a) as follows:
B. to confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(b)(1), as there is significant exposure to litigation;
C. to confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(c), so that the Commission may decide whether to initiate litigation;
D. to give instruction to the Commission's negotiator on the purchase of property pursuant
to Government Code Section 54956.8. The real property which the negotiations
concern is generally located at:
E.
to consider personnel matters pursuant to Government Code Section 54957.
RS-3 ADJOURNMENT
At 5:35 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, November 1, 1993 at 11:00 a.m., in the Council Chambers of
City Hall, 300 North "D" Street, San Bernardino, California.
Respectfully submitted:
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KENN TH J. NDERSON
Executive Directorl
Secretary to the Commission
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OCTOBER 21, 1993
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MAYOR AND COMMON COUNCa
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
November 1, 1993
11:00 8.m.
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was held in the Council Cham bers, City Hall, 300 North "D" Street, San Bernardino,
California and called to order by Mayor Tom Minor at approximately 11:01 am., on Monday,
November 1, 1993 .
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David OberlIelman; Jerry Devlin; and
Valerie Pope-Ludlam. Absent: Commission Member Norine Miller.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; James Penman, City Attorney; Lorraine Velarde,
Executive Assistant to the Mayor. Phil Arvizo, Executive Assistant to the Council; Ernie Wilson,
Affinnative Action, Mayor's Office; Rachel Clark, City Clerlc; Suzanna Cordova, Deputy City Clerlc;
La Vonda M-Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper.
The Commission Members requested that items numbered "2" and "3" be removed from the
Consent Calendar.
Commission Member Devlin made a motion, seconded by Commission Member Hernandez,
that the Consent Calendar items numbered "1" through "4" be adopted, except for items numbered
"2" and "3".
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; OberlIelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission
Member Miller.
REGULAR MEETING
KJH:lmp:cminl1rl
1
COMMISSION MINUTES
November 1, 1993
Public Works Department
1. ADVERTISE FOR BIDS - RICHARDSON STREET STORM DRAIN
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(Mayor and Common Council)
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Commission Member Devlin made a motion, seconded by Commission Member Hemandez,
that the plans for the installation of a stoon drain in Richardson Street, from Davidson Street to
Mission Zanja Channel, per Plan No. 8854, be approved and that the Director of Public Works/City
Engineer be authorized to advertise for bids.
The motion caqjed by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; OberlIelman; Devlin; Pope-Ludlmn. Noes: None. Abstain: None. Absent: Commission
Member Miller.
Development Department
4. FY19~3/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
AGREEJ\'fENT BETWEEN THE CITY AND SALVATION ARMY - SAN
BERNARDINO CORPS
(Mayor and Common Council)
Council Member Devlin made a motion, seconded by Council Member Hemandez, that the
following resolution be approved and adopted:
RESOLUTION NUMBER 93-412
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND SALVATION ARMY - SAN BERNARDINO
CORPS.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hemandez; OberlIelman; Devlin; Pope-Ludlmn. Noes: None. Abstain: None. Absent:
Councilwoman Miller.
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COMMISSION MINUTES
November 1, 1993
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Public Works Department
2.
REJECTION OF BIDS. LANDSCAPE MEDIAN IMPROVEMENTS ON WATERMAN
AVENUE
(Community DevelQpment Commission)
Commission Member Pope-Ludlmn questioned the cost of this item to the homeowners.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item
would pose no cost to the homeowners.
Commission Member Devlin made a motion, seconded by Commission Member Hemandez,
that all bids for landscape median improvements in Watennan Avenue be rejected and that the
Director of Public WOlk.s/City Engineer be authorized to re-advertise for bids in accordance with the
revised Plan No. 8966.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlmn. Noes: None. Abstain: None. Absent: Commission
Member Miller.
Fire/Disaster Preparedness
3.
APPROVAL OF CONTRACT CHANGE ORDER #1 INSTA~LATION OF
EARTHOUAKE RESISTANT BRACING SYSTEM. PER EDA.93.0003 STABILIZER
SYSTEMS. INC.
(Mayor and Common Council)
Councilman Obemelman questioned the selection process used for the selection of the
additional five (5) mobilehomes.
Kenneth J. Henderson, Executive Director, Development Department, indicated that a resident
must be at or below low income levels in order to receive assistance. He stated that a list was
generated identifying all residents who met the qualifications and that assistance is granted on a first
come, first serve basis.
Commission Member Obemelman made a motion, seconded by Commission Member Negrete,
to approve Change Order #1 to the Contract with Stabilizer Systems, Inc., to install an additional five
(5) mobilehomes Earthquake Resistance Bracing Systems (ERBS) in various mobilehomes within the
City of San Bernardino.
The motion carried by the following vote: Ayes: Council Members Negrete: Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent:
Councilwoman Miller.
END OF CONSENT CALENDAR
REGULAR MEETING
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COMMISSION MINUTES
3 November I, 1993
Continued from October 21. 1993
(Communitv Development Commission)
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5.
ARROW VISTA HOUSING DEVELOPMENT PROJECT
Redevelopment Committee Recommendations
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, that the following motions be approved and adopted:
That the Community Development Commission authorize Councilwoman Pope-Ludlam to
work with the Agency Administrator and Dukes-Dukes and Associates for the pwpose of
removing the existing Small Business Administration (SBA) lien recorded against the Arrow
Vista project.
That the Community Development Commission allow Dukes-Dukes and Associates to remain
as a principal in the Arrow Vista project and to proceed expeditiously with marketing
activities and the sale of existing Arrow Vista project standing inventory.
That staff and Dukes-Dukes and Associates utilize the San Bernardino Community Hospital
list of interested employees as a point of departure in the marketing and sale of the existing
Arrow Vista project standing inventory.
Commission Member Pope-Ludlam pointed out that John Dukes, Dukes - Dukes and ,.....
Associates were working diligently to sell the Arrow Vista Homes. She indicated that he already had '.,
approximately ten (10) homes in escrow. ....
Commission Member Obemelman asked if staff had a list of the names of people who are in
escrow.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the
Agency did not have a list, and added, Mr. Dukes indicated he was utilizing the list received from
Community Hospital.
Commission Member Pope-Ludlam indicated that the original list from the hospital was lost
and because it had to be re-established, a delay resulted in the sale of the homes.
Commission Member Obemelman summarized past difficulties with the Dukes-Dukes
organizations. He stated that regardless of whether or not the homes are sold, it would have nothing
to do with the debt relationship between Dukes-Dukes and the Agency.
Mr. Steinhaus noted that the Agency was in the same position it was in two months ago.
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November 1, 1993
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Commission Member Oberhelman emphasized actions taken by the Commission approximately
one (1) year ago when the developer was given additional funds for the project. He indicated that he
provided the Commission Members a report, completed by Mr. Gene Wood, Consultant, regarding the
continuing assistance to Dukes-Dukes. He further noted that the report clearly stated that the
developer should be denied additional assistance.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to continue the item until 2:00 pm. to allow the developer to be present to speak.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hemandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission
Member Miller.
6. ARROW VISTA - CHRONOLOGY OF EVENTS
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member
Negrete, to continue this item until 2:00 pm. to allow the developer to be present to speak to
this item.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hemandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission
r Member Miller.
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7. ROGER'S BINDERY
(Communitv Development Commission)
Councilwoman Pope-Ludlam's Recommendation
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam to reconsider actions taken with respect to Roger's Bindery on October 21, 1993.
The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez;
Pope-Ludlam. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None. Absent:
Commission Member Miller.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to reconsider this item.
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Commission Member Obethelman expressed concern regarding the Commission attempting to
reconsider an item that has already failed.
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COMMISSION MINUTES
November 1, 1993
Discussion ensued regarding the ability to discuss this item in closed session. Mr. James
Penman, City Attorney, indicated that the Commission could discuss the item under pending litigation.
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Commission Member Curlin made a motion, seconded by Commission Member Hernandez, to
adjourn to closed session.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin
Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin. Abstain: None.
Absent: Commission Member Miller.
CLOSED SESSION
9. AD (OURN TO CLOSED SESSION
At 11 :29 a.m. the Mayor and Common Council and the Community Development Commission
adjourned to closed session to discuss the following:
B. To confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(b)(1), as there is significant exposure to litigation.
At 11:58 a.m. Mayor Minor made an announcement that the issues concerning Roger's
Bindery were not resolved and that the Commission would recess until 2:00 pm. He noted for the
audiences infonnation that the issue of Roger's Bindery mayor may not be brought up for discussion
in the afternoon session. ....
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Jim Lynas, Citizen, questioned whether or not he would be given the opportunily to speak to ....,.
this item at the afternoon session.
Mayor Minor infonned him that he would only be allowed to speak if the item was
reconsidered.
MEETING AD (OURNED
At 11:58 a.m. the meeting of the Mayor and Common Council and the Community
Development Commission was adjourned until 2:00 pm.
MEETING RECONVENED
At 2:58 pm., the meeting of the Mayor and Common Council and the Community
Development Commission was called to onler.
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin;
Valerie Pope-Ludlam; and Norine Miller. Absent: None. .....,
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November 1, 1993
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ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Jim Penman, City Attorney; Dennis A. Barlow, Senior
Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Ernie Wilson,
Affinnative Action Officer; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City
Clerl<:.; Suzanna Cordova, Deputy City Clerl<:.; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper.
Development Department
5. ARROW VISTA HOUSING DEVELOPMENT PRO fECT
(Communitv DevelQpment Commission)
Redevelopment Committee Recommendations
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item
was held over to the afternoon session to allow the developer the opportunity to speak.
Commission Member Miller questioned the small business loan listed in the Chronology of
Events and the status of that loan.
Mr. Steinhaus explained that the small business loan was a federal loan and that the Agency
had no involvement in it.
John Dukes, 1875 West Highland Avenue, San Bernardino, stated that as of Sunday, October
31, there were nine (9) applicants who were deemed eligible to purchase a home based on income
submitted applications and checks for escrow. He explained that an additional nine (9) applicants who
previously "fell-out" of escrow were being re-intetviewed to detennine their qualification for
assistance through the Mortgage Assistance Program (MAP). He further stated that residents of the
Dorjil Apartments were also being screened to detennine their qualifications for an Arrow Vista
Home. He speculated that, given the proper program, home sales could increase to approximately 4 -
7 homes per month.
Mr. Dukes explained that the SBA lien against his property was a result of a loan that he co-
signed in 1981 that went to judgement. He stated that the interest rate on the SBA loan was being
reduced from 11.5% to 6.5% to allow them a better opportunity to repay the loan.
Commission Member Obemelman asked what were the number of homes actually in escrow.
Mr. Dukes stated that there were two (2) homes in escrow.
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COMMISSION MINUTES
November 1, 1993
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Commission Member Curlin asked the am ount of time the homes have been on the market.
Mr. Dukes responded that although the homes had been on the market for 18 months, they had
gone through several different sales program s. He also stated that the lower the interest rate, the
tougher it was for applicants to actually purchase the homes.
Discussion ensued regarding the refmancing of Dorjil Estates.
Commission Member Negrete asked about the list from Community Hospital of interested
homebuyers. Mr. Dukes indicated that of the list of 15 mmes, only one (1) person actually qualified
for home ownership based on income.
Commission ME411lber Oberhelman asked what was the amount of money owed to the Agency
from Dukes-Dukes and Associates and the effect the homes sales would have on that amount. Mr.
Steinhaus explained that the total amount owed to the Agency was $5.6 million. He indicated that if
all the homes in Arrow Vista were sold, the amount paid back to the Agency through sales would be
the land and construction loan costs. He stated that the sewer costs and business reorganization loan
would have to be repaid with other funds. Mr. Steinhaus noted that if the Agency took over the
project, they would be repaid the same amount minus a sellers fee.
Kenneth J. Henderson, Executive Director, Development Department, stated that the land
acquisition cost to the Agency was $1.9 million.
Commission Member Hernandez gave a brief history on this item and included activities that
took place with the previous developer, Mr. Clyde Alexander.
Mr. Dukes stated that during the second phase of a housing project, it is best to move
individuals into their homes as group at a time.
Commission Member Pope-Ludlam voiced concern about the special circumstances regarding
development in the west side of San Bernardino.
Discussion ensued regarding the sale of the Arrow Vista Homes and the qualifications of the
Mitchell Company to complete this task.
COMMISSION MEMBER MILLER WAS EXCUSED AT 3:35 P.M.
Mr. Henderson summarized the Chronology of Events emphasizing that the $20,000 a month
security and landscape costs was necessary due to vandalism that has previous occurred to the homes.
Commission Member Hernandez stated that if the Agency takes over the project, there would
be no cost savings.
COMMISSION MEMBER MILLER RETURNED AT 3:40 P.M.
Mayor Minor discussed previous assistance given to the developer of this project. He
suggested the sale price of the homes be reduced to increase sales.
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November 1, 1993
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Commission Member Obethelman recommended the developer agreement between the Agency
and the developer be tenninated.
Mr. Steinhaus stated that there were no plans to lower the prices of the homes, only to provide
assistance in lhe fonn of a silent second mortgage not-to-exceed $25,000. He explained that if tbe
sales price was reduced by $10,000, those funds would never be recaptured; however, if a silent
second was given for $10,000, it would benefit lhe homeowner by allowing them to qualify for the
home and also maintain market value.
Mr. Dukes made additional comments regarding the Arrow Vista Homes and also the Westside
of San Bernardino.
Commission Member Negrete made a motion, seconded by Commission Member Hernandez,
that the Arrow Vista Housing Development Project be continued and re-evaluated at the fIrst meeting
in January 1994.
Commission Member Curlin questioned the sincerity of the applicants for Arrow Vista Homes.
Mr. Dukes explained that he was thoroughly screening the applicants to make sure they were
sincere about the pun:hase of a home. He felt confIdent lhat approximately 75% of the comments in
applications he had received to date were candid.
The motion carried by tbe following vote: Ayes: Commission Members Negrete; Hernandez;
Pope-Ludlam; Miller. Noes: Commission Members Curlin; ObedIelman; Devlin. Abstain: None.
Absent: None.
6. ARROW VISTA. CHRONOLOGY OF EVENTS
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to receive and fIle the attached staff report and Chronology related to the Arrow Vista Project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObedIelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None.
Absent: None.
REGULAR MEETING
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November 1, 1993
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Aeencv Adminifltration
(Communitv DevelQpment Commission)
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7.
ROGER'S BINDERY
Councilwoman Pope-Ludlam's Recommendation
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludllm to reconsider actions taken with respect to Roger's Bindery on October 21, 1993.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Pope-Ludlam; Miller. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None.
Absent: None.
Bob Forrest, Chief Financial Officer, Roger's Bindery, stated that the bindery had taken many
steps to improve its financial position. He noted that the bindery had complied with all agreements
needed to put its financial packet together.
Mr. Forrest explained that although the bindery had a 27-year relationship with the community
and made a major turn-around with its finances, the recent foreclosure action by the City has caused
major problems between the bindery and its customers.
Mr. Forrest noted that approximately 726 employees worked for the bindery and he felt an
obligation to keep them employed. He stated that the Company needs the foreclosure action to cease J.. ......
in order to obtain approval of a pending financial package. He requested that the City consider ..
Roger's Bindery history of being in the community for 27 years and grant a reprieve.
Mayor Minor pointed out that originally, during the Ad Hoc Committee Meetings, the Agency
subordination of its loan to allow the bindery to obtain another loan was discussed. However, it has
been revealed that the Agency currently holds second position on its loan therefore no subordination is
needed.
Mayor Minor questioned the collateral used for each loan and also the ability of the bindery to
repay the City.
Mr. Forrest stated that the bindery's equipment was used for each loan obtained. He explained
that the bindery would like to request a partial reprieve for interest payments made to the City, for
approximately $240,000, with the balance to be amortized over a 10 year period.
Commission Member Curlin asked if the bindery was having difficulties with any other taxing
agents.
Mr. Forrest stated that the City and also the taxing agents. He noted that the bindelY owed
the taxing agents due to non-payment of payroll taxes. He explained that the agents were willing to
work with them.
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November 1, 1993
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Commission Member Miller questioned the projected actions of the Agency in the event the
bindery is foreclosed.
Mr. Steinhaus explained that staff had not had sufficient time to devise a plan of action. He
stated that due diligence had just begun by having a consultant review the bindery's finances.
Dennis A. Barlow, Senior Assistant City Attorney, agreed that additional time was needed to
research the Agency's position, and plan a of action.
Commission Member Negrete emphasized on the need to receive all pertinent infonnation
surrounding this item before foreclosure is initiated.
Commission Member Curlin asked what was the number of businesses owned by Mr. Imbriani
and the total full-time employees he employs.
Mr. Forrest stated that there were binderies located in San Bernardino, Colton, San Francisco
and a Mexicali Facility in Mexico. He stated that approximately 200 of all employees were full-time.
Jim Lynas, t 160 Sinora, San Bernardino, recommended an audit be done on the businesses to
detennine the actual amount of full-time and part-time employees. He also recommended that a
complete inventory be taken of the business.
Commission Member Hernandez noted that the Bindery had been having difficulties since
1985; however, it has been able to maintain a $10 million payroll.
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; Mr. Forrest explained that its revenues from the Bindery were 50 cents on each dollar earned
'-- which went towards payroll, 15% benefits, 10% materials and 20% utilities and rent.
Mr. Forrest discussed the payroll taxes owed by the Bindery. He explained that payment
arrangements had been made to payback those funds.
Commission Member Pope-Ludlam expressed a need to investigate the Bindery more in depth
before initiating foreclosure.
Mr. Steinhaus stated that staff could bring this item back to the Commission in two (2) weeks
with additional infonnation.
Mr. Forrest revealed that the Bindery could not delay the banks decision to fund the loan for
an additional two (2) weeks. He asked that the Commission rescind the foreclosure to enable them to
receive the loan. He said that, if needed, the Bindery would file for Chapter 11 and Mr. Imbriani
would still continue to run the operation.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 4:45 P.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 4:46 P.M.
Commission Member Negrete recommended that Motions B and C be approved.
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COMMISSION MINUTES
November 1, 1993
Commission Member Pope-Ludlmn stated that nonnally when employers have that many
employees in the City, they are rewarded in some way.
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Commission Member Oberllelman spoke about the negative messages being sent to taxpayers
regarding this item. He also stressed the seriousness of not paying payroll taxes.
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Jim Penman, City Attorney, discussed the motions listed and gave direction to the Commission
on the proper motions needed to rescind the foreclosure action.
Commission Member Negrete made a motion, seconded by Commission Member Pope-
Ludlmn, to rescind the foreclosure action on Roger's Bindery.
The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez;
Pope-Ludhm. Noes: Commission Members Curlin; Oberllelman; Devlin; Miller. Abstain: None.
Absent: None.
Discussion ensued regarding the direction of staff regarding Roger's Bindery.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez, to reconsider this item.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Pope-Ludlmn; Miller. Noes: Commission Members Curlin; Oberllelman; Devlin. Abstain: None.
Absent: None.
Commission Member Miller made a motion, seconded by Commission Member Hernandez,
that the foreclosure proceedings e rescinded; and that the matter be continued to November 15, 1993.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Devlin; Pope-Ludlmn; Miller. Noes: Commission Members Curlin; Oberllelman. Abstain: None.
Absent: None.
8. ROGER'S BINDERY. CHRONOLOGY OF EVENTS
(Communitv Development Commission)
Commission Member Oberllelman made a motion, seconded by Commission Member Pope-
Ludlmn, to receive and file the attached staff report and Chronology related to Rogers Bindery.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hemandez; Pope-Ludlmn; Miller. Noes: Commission Members Oberllelman; Devlin. Abstain:
None. Absent: None.
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November 1, 1993
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CLOSED SESSION
9.
ADJOURN TO CLOSED SESSION
There were no items for discussion in Closed Session.
10. ADJOURNMENT
At 5:10 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, November 15, 1993 at 11:00 aJIl., in the Council Chambers
of City Hall, 300 North "0" Street, San Bernardino, California.
Respectfully submitted:
REGULAR MEETING
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MA YOR AND COMMON COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
MINUTES
JOINT REGULAR MEETING
November 15, 1993
11:00 a.m.
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 11:03 am., on Monday, November 15, 1993, in the Council Chambers, City Hall, 300
North "0" Street, San Bemardino, California.
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obemelman; Jerry Devlin;
Norine Miller. Absent: Commission Member Pope-Ludlam.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Jim Penman, City Attorney; Shauna Clark., City
Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Ernie Wilson, Affionative Action;
Phil Arvizo, Executive Assistant to the Council; Rachel Clark., City CleIk; Diane Jones, Deputy City
CleIk; La Vonda M-Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper.
PUBLIC COMMENTS NOT ON THE AGENDA
Jeff Wright, P. O. Box 2341, San Bernardino, made comments in reference to the Platt
Building remnants that were located on the Platt Building site. He discussed the asbestos that was left
out in the open and how the wind was blowing it throughout the City. He infonned the Commission
that he was in the process of filing litigation against the City due to the medical hazards of those
remnants.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 1l:04 A.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 11:05 A.M.
Mr. Wright indicated that certain Commission Members were not in favor of demolishing the
Platt Building. He said that he would also initiate litigation against the City for not allowing the
historic preservation task fooce complete its investigation prior to the demolition of the building.
JOINT REGULAR MEETING
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COMMISSION MINUTES
NOVEMBER 15, 1993
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COMMISSION MEMBER POPE.LUDLAM ARRIVED AT 11:07 A.M.
CONSENT CALENDAR
The Commission Members requested that items nwnbered "3", "5", "7" and "10", be removed
from the Consent Calendar.
Commission Member Miller made a motion, seconded by Commission Member Hernandez,
that the Consent Calendar items nwnbered "1" through "10" be adopted except for items numbered
"3", "5", "7" and "10", ~spectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Communitv Development Commission)
Commission Member Miller made a motion, seconded by Commission Member Hernandez,
that the minutes of the Community Development Commission of the City of San Bernardino for the
meeting of October. 21, 1993, be approved as submitted in typewritten fODD.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
2. REDEVELOPMENT COMMITTEE MINUTES
(Communitv Development Commission)
Commission Member Miller made a motion, seconded by Commission Member Hernandez,
that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of
October 28, 1993 be received and filed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
JOINT REGULAR MEETING
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COMMISSION MINUTES
NOVEMBER 15, 1993
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Public Works Department
4.
ADVERTISE FOR BIDS. MODIFICATION OF INTERCEPTOR SEWER AT MACY
STREET AND BLAKE STREET
(Mayor and Common Council)
Councilman Miller made a motion, seconded by Councilman Hernandez, that the plans for
modification of interceptor sewer at Macy Street and Blake Street, in accordance with Plan No. 9016,
be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; OberlIelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
6. PUBLIC HEARING FOR HUD 108 LOAN APPLICATION. WEST SIDE PLAZA
(Mayor and Common Council)
Councilman Miller made a motion, seconded by Councilman Hernandez, to establish
December 6, 1993 at 11:00 am., as the date and time for a Public Hearing regarding the submission
of a U.S. Housing and Urban Development Department (HUD) Section 108 Loan Application for the
West Side Plaza Project.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; OberlIelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
8. HOMELESS SHELTER UTILITY ASSISTANCE PROGRAM
(Community Develo,pment Commission)
Commission Member Miller made a motion, seconded by Commission Member Hernandez, to
appropriate $3,200 in Twenty Percent (20%) Set-Aside monies to provide utility assistance payments
to Smnaritan Social Services through June 30, 1994, and that the Chainnan and Executive Director be
authorized to execute all documents necessary to effectuate this transaction.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; OberlIelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
JOINT REGULAR MEETING
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COMMISSION MINUTES
NOVEMBER 15, 1993
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9. HOUSING DIVISION OUARTERLY ACTIVITY REPORT
lCommunitv Develo9ment Department)
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Commission Member Miller made a motion, seconded by Commission Member Hernandez, to ..,.".,J
receive and file the attached Housing Division Quarterly Activity Report for the months of July
through September, 1993.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Public Works Department
3. AWARD OF CONTRACT. NEW TENANT IMPROVEMENTS 5055 HALLMARK
PARKWAY
(Mayor and Common Council)
other.
Councilman Oberhelman asked if this item and Item Number 5 were in conjunction with each
Kenneth J. Henderson, Executive Director, Development Department, indicated that the two
items were unrelated and that this item was related to the Don's Electric tenancy.
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Council Member Oberhelman made a motion, seconded by Councilman Hernandez, that the
following resolution be approved and adopted:
RESOLUTION NUMBER 93-425
RESOLUTION OF THE CITY OF SAN BERNARDINO A WARDING A CONTRACT TO
BILTMORE CONSTRUCTION CORPORATION FOR INSTALLATION OF NEW TENANT
IMPROVEMENTS AT 5055 HALLMARK PARKWAY.
Jeff Wright, P. O. Box 2341, San Bernardino, indicated that items numbered "3" and "5" were
in conflict with each other and felt the City should stop subsidizing businesses and allow them to
stand on their own.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam.; Miller. Noes: None. Abstain: None. Absent:
None.
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JOINT REGULAR MEETING
KJH:lmp:cmlnllJ2
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COMMISSION MINUTES
NOVEMBER 15, 1993
5. LEASE SUBSTITUTION. 5055 HALLMARK PARKWAY
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(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member
Obemelman, to authorize the Executive Director to execute a lease and all other necessary documents
for a substitution of lessee at Suites A and B of 5055 Hallm8Ik P8Ikway involving current lessee,
Northcutt Manufacturing, and proposed lessee, Riverside Civic Light Opera.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Miller. Noes: Commission Member Pope-Ludlam. Abstain: None.
Absent: None.
7. ALLAN STEWARD LOAN AMENDMENT REOUEST
(Community Development Commission)
Commission Member Obemelman questioned the need to extend the loan granted to Mr.
Steward and also the amount of Mr. Stewards own money used to finance this project.
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Kenneth J. Henderson, Executive Director, Development Department, indicated that
approximately $350,000 of Mr. Stewards money was used for this project. He explained that his bank
was taken over by the Federal Deposit Insurance COlporation (FDIC) and infonned Mr. Steward that it
r- would need to evaluate his loan before continuing to disburse the loan proceeds.
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(3) to four (4) months and, at that time, will pay the Agency the complete balance of the loan.
Commission Member Obemelman asked if Mr. Steward was current with his other obligations.
Mr. Henderson explained that in the past, he has always fulfilled his obligations.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to grant an. extension of one year for an existing Third Trust Deed loan to Mr. Allan Steward
subject to the tenns described in the attached staff report.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Obemelman. Abstain:
None. Absent: None.
10. MOBII.E HOME CONVERSION PROGRAM WORKSHOP
(Communitv Development Commission)
[
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to establish December 6, 1993 at 12:00 noon as the date and time certain for the conducting of a
workshop regarding the City's Mobile Home Conversion Program.
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Jeff Wright, P. O. Box 2341, indicated that he pulled this item off the consent calendar so that
the public would be infonned of the wotkshop taking place at the next scheduled meeting. ..,
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;M
Hernandez; Oberhelman; Devlin; Pope-Ludlan; Miller. Noes: None. Abstain: None. Absent: ...J
None.
END OF CONSENT CALENDAR
11. ACOUISITION OF 184 SOUTH "E" STREET
(Mayor and Common Council)
Kenneth J. Henderson, Executive Director, Development Department, explained that this item
was discussed in Closed Session and that staff was authorized to negotiate the acquisition of this
parcel with Goodwill Industries.
Councilman Hernandez stated that it was his understanding that the property in question was
to be used for a baseball field. He indicated that he was infonned that the representatives for the ball-
field were in negotiations with the Orange Show for property it owns.
Councilman Hernandez questioned the cost paid for the Hmmon Motors property.
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Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he would
provide the amount paid for the Hmmon Motors property this afternoon.
Discussion ensued regarding the role and function of the Economic Development Agency.
COUNCILWOMAN POPE-LUDLAM WAS EXCUSED AT 11:22 A.M.
Councilman Hernandez discussed briefly a law going into effect at the beginning of the year
that would put restrictions on the ability of redevelopment agencies to pun:hase property.
Mayor Minor clarified comments made by Councilman Hernandez indicating that the new law
would not have anything to do with pun:hasing property. He said a fonnal report regarding the
pun:hase of the ball-field property will be made on December 6, 1993.
Jeff Wright, P. O. Box 2341, San Bemardino, spoke on the property being considered for the
ball-field.
Councilman Devlin made a motion. seconded by Councilman Cm-Iin, that the following
resolution be approved and adopted:
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RESOLUTION NUMBER 93-426
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF
UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST
INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO
REDEVELOPMENT AGENCY.
The motion carried by the following vote: Ayes: Council Members Curlin; Oberhelman;
Devlin; Miller. Noes: Councilman Hernandez. Abstain: Councilman Negrete. Absent:
Councilwoman Pope-Ludlmn.
(Community Development Commisdon)
Commission Member Devlin made a motion, seconded by Commission Member Curlin, that
the following resolution be approved and adopted:
RESOLUTION NUMBER 5381
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO MAKING FINDINGS AND DETERMINA nONS AS TO THE
BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE
SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF THE SAN
BERNARDINO REDEVELOPMENT AGENCY.
Commission Member Devlin made a motion, seconded by Commission Member Curlin, to
approve the acquisition of 184 South "E" Street; that the Executive Director be authorized to execute
all documentation necessary for said acquisition; also, that the Economic Development Agency
Development Department budget be increased accordingly.
The motion carried by the following vote: Ayes: Commission Members Curlin: Oberhelman;
Devlin; Miller. Noes: Commission Member Hernandez. Abstain: Commission Member Negrete.
Absent: Commission Member Pope-Ludlmn.
12. JERSEY'S SPORTS BAR - ALL-INCLUSIVE TRUST DEED
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, stated that approval of
this item would allow for a transfer of title for this property.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to approve the transfer and placement of an all-inclusive trust deed on the property occupied by
Jersey's Sports Bar; said all-inclusive trust deed to be in a position junior to the Agency's existing trust
deed; also, that the Executive Director be authorized to execute any documents necessmy to effectuate
said transaction.
Mr. Henderson explained that approval of this item would not increase the Agency's risk.
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Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the Agency owning
the Jersey's Sports Bar. ~
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the
Agency's involvement with the Sport Bar was only a loan guarantee. .....J
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Commission
Member Pope-Ludlam.
13. REVIT ALIZA lION PLAN FOR THE 40TH STREET SHOPPING CENTER
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Miller, to
approve funding for the development of a revitalization plan for the 40th Street Shopping Center in an
amount not to exceed $45,000 with C & B Enterprises or another selected fInn (in the event that the
approved professional services agreement is not executed by C & B Enterprises).
Commission Member Hernandez made a motion, seconded by Commission Member Miller
that the following resolution be approved and adopted:
RESOLUTION NUMBER 5382
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE
BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE
STATE COLLEGE REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO
REDEVELOPMENT AGENCY.
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(Mayor and Common Council)
Councilman Hernandez made a motion, seconded by Councilwoman Miller, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 93-427
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY SAN
BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF
UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE STATE
COLLEGE REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO
REDEVELOPMENT AGENCY.
Commission Member Obethelman questioned the selection of C&B Enterprises for this
project.
Kenneth J. Henderson, Executive Director, Development Department, explained that the finn
was recommended based on its familiarity with the area and also, with its experience in revitalization.
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COMMISSION MEMBER POPE-LUDLAM RETURNED AT 11:31 A.M.
Mr. Henderson indicated that originally, this revitalization plan was a 50/50 effort between the
Agency and the property owners; however, due to a lack of participation, the Agency would now be
fmancing the entire project. He explained that the plans for the project would not exceed $45,000.
Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the cost for a
consultant.
Mayor Minor indicated that the funds paid to the consultant would be to develop a plan for
the entire 40th Street Shopping Center.
Motions A & B carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None
Motion C carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None
14. YOUNG HOMES OF CALIFORNIA
(Communitv Development Commission)
Commission Member Oberllelman made a motion, seconded by Commission Member
Hernandez, to approve the attached Owner Participation Agreement (OPA) with Young Homes which
provides for the development of thirty-six (36) high quality single-family detached homes. Further,
that the Commission allocate to this project $200,000 in previously approved Fiscal Year 93-94
low/mod housing set-aside funds and authorize the Chainnan and Executive Director to execute any
document necessary to effectuate said transaction.
Commission Member Hernandez indicated that $200,000 was allocated for this project,
however, only $180,000 was needed.
Mayor Minor recommended changing the motion to read $180,000 instead of $200,000.
Commission Member Oberllelman made a substitute motion, seconded by Commission
Member Hemandez, to approve the attached Owner Participation Agreement (OPA) with Young
Homes which provides for the development of thirty-six (36) high quality single-family detached
homes. Further, that the Commission allocate to this project $180,000 in previously approved Fiscal
Year 93-94 low/mod housing set-aside funds and authorize the Chainnan and Executive Director to
execute any document necessary to effectuate said transaction.
Commission Member Miller discussed the high quality of Young Homes and felt it would not
be a proper use of 20% set-aside funds to assist this project.
Commission Member Curlin expressed concern regarding the selling of homes in these
economic conditions.
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Kenneth J. Henderson, Executive Director, Development Department, stated that a market
feasibility study showed that the homes in that area could be sold. He explained that the Mortgage
Assistance Program (MAP) would also be an asset with the selling of those homes.
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Commission Member Negrete asked for the income limitations used to qualify for the MAP
Pro gram.
Mr. Henderson stated that for a fmnily of four (4) the income limit is approximately $40,000
per year.
Jeff Wright, P. O. Box 2341, San Bernardino, asked for the location of the Young Homes.
Mr. Henderson stated that the homes were located in the southwest area of the City between
Randall and Meridian Avenues.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlmn. Noes: Commission Members Curlin; Miller. Abstain: None.
Absent: None.
15. SAN BERNARDINO COMMUNITY DOSPIT AL MEDICAL OFFICE BUILDING
PROJECT
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, explained this item .,
indicating that it recommended an extension of the loan guarantee to Community Hospital to facilitate Ii
the financing of the proposed office building. ....J
MAYOR MINOR WAS EXCUSED AT 11:44 A.M.
Mr. Henderson discussed the deal points listed in the staff report stating that the interest rate
for the loan was at 7.25%.
MAYOR MINOR RETURNED AT 11:45 A.M.
Commission Member Hernandez questioned the security for the Agency regarding the loan
guaran tee.
Mr. Henderson stated that the Agency had the guarantee of both the Community Hospital and
Arrowhead Health Care System and a second deed of bUst.
Charlie Kraus, Administrator, San Bernardino Community Hospital, indicated that the medical
office building would be an important asset in attracting physicians to the facility. He stressed that
the hospital was not requesting any funds. only a loan guarantee.
Commission Member Pope-Ludlam felt this project would benefit the entire City as well as
the hospital.
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Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller
to approve a Redevelopment Agency loan guarantee related to the construction by San Bernardino
Community Hospital of a 59,000 square foot medical office building based upon the teons and
conditions set forth in the staff report and subject only to the review and approval of loan documents
by Agency Counsel. Further, that the ChaiDDan and Executive Director be authorized to execute all
documents to effectuate said transaction.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; OberlIelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
16. NEW POLICE FACILITY FINANCING
(Mayor and Common Council)
Kenneth J. Henderson, Executive Director, Development Department, made a correction to this
item stating that the cost should read $6,120,000 and requested it be changed by interlineation. He
stated that new resolutions would be prepared showing the change.
Mr. Henderson explained previous financing requests regarding this item and stated that
discussions have now taken place regarding a 50/50 share between the City and the Agency.
Jeff Wright, P. O. Box 2341, stated that the Joint Powers Financing Authority would need to
reopen hearings in order to take action on this item.
".....
I Councilman Hernandez expressed concern regarding the language in the resolutions which
l...", allowed the Mayor to make changes without notification of the Council.
Mr. Henderson explained that the language in the resolutions was standard and allowed the
Mayor to make procedural changes only.
COUNCILMAN CURLIN WAS EXCUSED AT 11:52 A.M.
Councilman Hernandez spoke on the cost of this project to the City. He stated that the City
would pay $12 million over a 30 year period. He asked for the total cost of this project.
Mayor Minor stated that the cost was approximately $10 - $11 million plus interest.
COUNCILMAN CURLIN RETURNED AT 11:53 A.M.
Discussion ensued regarding the need to have some resolutions approved by the Joint Powers
Financing Authority (JPFA).
Rhonda Connelly, Miller and Schroeder, explained that the JPFA was a combination of hoth
the City and the Agency. She stated that using it provides a method of financing that kept the two
entities tied together.
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COUNCILWOMAN MILLER LEFT AT 11:54 A.M.
COUNCILWOMAN POPE.LUDLAM LEFT AT 11:55 A.M.
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Mr. Henderson explained that the 50/50 share for the police f'mancing would enable the City
to make payments of $445,000 a year instead of $980,000 a year. He stated that the payments would ~
not begin until 1995.
COUNCILWOMAN MILLER RETURNED AT 11:58 A.M. '-"
Councilman Hernandez expressed concern regarding the rising cost of the facility.
COUNCIL WOMAN POPE-LUDLAM RETURNED AT 11:59 A.M.
Mr. Henderson explained that financing the facility increases the cost due to the interest
payments.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the selling
price of the existing facility to the State Offices and Calttans Building would reduce the price of the
police facility.
Shauna Clark, City Administrator, spoke on previous discussions regarding the financing of
the police station. She explained that paying for the facility would mean cut-backs in other City
departments. She stated that the City would not be able to continue its current level of selVice and
pay for the police facility.
Councilwoman Pope-Ludlam indicated that the superblock would generate additional monies
for the general fund and felt that those monies would assist with the facility payments.
Ms. Clark stated that the Superblock would be very beneficial for San Bernardino but did not
believe it would have an affect on the general fund.
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Councilwoman Pope-Ludlam made a motion, seconded by Councilman Obemelman, that the
following resolutions be approved and adopted:
RESOLUTION NUMBER 93-428
RESOLUTION OF THE MAYOR AND COMMON COUNCn.. OF THE CITY OF SAN
BERNARDINO, AUlHORIZING THE LEASE OF CERTAIN PROPERTY FROM THE SAN
BERNARDINO JOINT POWERS FINANCING AUlHORITY, AUlHORIZING THE FORM
OF CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUlHORIZING AND
DIRECTING THE PREPARATION, EXECUTION AND DELIVERY OF THE FINAL
FORMS THEREOF.
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lCommunitv Development Commission)
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I Commission Member Pope-Ludlmn made a motion, seconded by Commission Member
I Oberl1elman that the following resolutions be approved and adopted:
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RESOLUTION NUMBER 5383
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON
BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO,
APPROVING AND AUTIlORIZING THE EXECUTION OF A CERTAIN GROUND LEASE
IN CONNECTION WITH THE FINANCING OF THE SAN BERNARDINO POLICE
STATION.
(Joint Powers Financinr Authority)
RESOLUTION NUMBER JP AlO
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RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY
APPROVING THE SALE AND DELIVERY OF NOT TO EXCEED $6,120,000
CERTIFICATES OF PARTICIPATION (1993 POLICE STATION PROJECT) EVIDENCING
THE DIRECT UNDIVIDED FRACTIONAL INTEREST OF THE OWNER THEREOF IN
LEASE PAYMENTS TO BE MADE BY THE CITY OF SAN BERNARDINO,
CALIFORNIA, AS A RENTAL FOR A CERTAIN PROJECT PURSUANT TO A LEASE
AGREEMENT WIlH THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO
AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY
OF THE FINAL FORMS THEREOF.
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RESOLUTION NUMBER JP All
RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY,
APPROVING AND AUTHORIZING THE EXECUTION OF A CERTAIN GROUND LEASE
IN CONNECTION WITH THE FINANCING OF THE SAN BERNARDINO POLICE
STATION.
Discussion ensued regarding payment of utility taxes by the state offices. Ms. Clark indicated
that government entities were exempt from utility tax payments.
The motions carried by the following vote: Ayes: Council Members Negrete; Curlin;
Oberl1elman; Devlin; Pope-Ludlam; Miller. Noes: Councilman Hernandez. Abstain: None. Absent:
None.
MEETING ADJOURNED
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At 12:13 pm., the meeting of the Mayor and Common Council and the Community
Development Commission was adjourned until 3:00 pm.
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MEETING RECONVENED
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The meeting of the Mayor and Common Council and the Community Development
Commission was reconvened at 3:55 pm.
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ROLL CALL
Roll call was taken with the following members present: ChaiDDan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberllelman; Jerry Devlin;
Valerie Pope-Ludlam; Norine Miller. Absent: None.
ST AFF PRESENT
,
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Jim Penman, City Attorney; Shauna Clark, City
Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Ernie Wilson, Affmnative Action
Officer; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Cletk; Diane Jones,
Deputy City Cletk; La Vonda M-Pearson, Reconting Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper.
17.
BOYS AND GIRLS CLUB FINANCIAL ASSISTANCE PROPOSAL
(Community Development Commission)
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(Councilwoman Pope-Ludlam's Recommendation)
Commission Member Hernandez recommended this item be referred to the Housing
Committee.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 3:57 P.M.
Kenneth J. Henderson, Executive Director, Development Department, gave a brief synopsis of
the history on this item and stated that staff had not had enough time to review it sufficiently.
Commission Member Pope-Ludlam spoke on the urgency of this item and asked staff if the
item would be ready for the Commission on December 6, 1993.
Commission Member Hernandez made a motion, seconded by Commission Member
Obemelman, to refer this item to the Housing Committee.
The motion carried by the following vote: Ayes: Commission Members Negrete: Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam: Miller. Noes: None. Abstain: None. Absent:
None.
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18. ROGER'S BINDERY
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(Community Development Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained previous
actions taken by the Commission in reference to Roger's Bindery and stated that Ell. Wood and
Associates was retained to complete a study on the bindery.
Gene Wood, G. H. Wood and Associates, stated that the numbers in the report were based on
the March 31, 1993, year-end statements.
Commission Member Miller asked if the income statements from the shareholders were
submitted for review.
Mr. Wood stated that the personal income statements of the shareholders were not submitted.
He indicated that the report included all the facilities of Mr. Imbriani, owner of Roger's Bindery,
except for the Mexico facility.
Discussion ensued regarding a loan to a shareholder and the total mnount of that loan.
Bob Forrest, Chief Financial Officer, Roger's Bindery, spoke on the age of the loan stating
that no funds had been borrowed from the finn within the last five (5) years. He stated that the loan
in the mnount of $240,000 would be committed for repayment in approximately 90 days.
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Li. . Commission Member Obemelman commented on the shareholders liberal use of personal
guarantees.
Mr. Wood stated that he was not an economist, but felt the company was not healthy. He
emphasized that the owners of the bindery were worlc.ing toward improving the bindery.
Mr. Forrest explained that although the bindery had made some poor business decisions in the
past, they currently have been able to stay on top because of proper management of the cash flow.
Discussion ensued regarding the management of the cash flow in 1989 and also the high
salaries.
Mr. Steinhaus explained that if foreclosure was initiated, the Agency would not know what
collateral it would receive until the actual foreclosure was initiated. He stated that the agreement was
the instrument needed to foreclose.
Mr. Steinhaus stated that if the Agency wished to proceed further with this item and locate the
strengths and weaknesses of the bindery, a full fledge audit, including a business reorganization
document, would need to be done. He explained that other options for this item would be
renegotiation of the existing loan, accept the bindery's proposal or convert the loan to a gnmt.
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Mr. Forrest explained that the loan needed to make the payment on the payroll taxes was
obtained and that the bindery had already made the payment.
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Mr. Steinhaus explained that Motions B & C of this item would authorize the Agency to
renegotiate the loan, if the Commission wished. --,
Commission Member Oberllelman expressed concerns regarding the Agency renegotiating the
loan without knowledge of the value of its collateral. ~
COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:36 P.M.
Commission Member Oberllelman requested this item be delayed until December 6, 1993,
when a more prudent decision can be made.
Mr. Wood gave suggestions regarding assisting the bindery out of its defaults. One suggestion
that he made was for the Agency to operate the bindery until its loan was paid.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Oberllelman, to continue this matter until December 6, 1993.
Discussion ensued regarding the proper motions needed to approve this item.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, that the following motions be approved and adopted:
That the Community Development Commission, using the existing principal balance, develop
a new am ortization schedule using an interest rate which reflects the current economic
conditions. "
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That the Community Development Commission build into the new amortization schedule a
deferred period. The specific length of this deferred period is yet to be detennined.
The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez;
Pope-Ludlam. Noes: Commission Members Curlin; Oberllelman; Devlin; Miller. Abstain: None.
Absent: None.
Mr. Steinhaus recommended staff renegotiate the loan and bring the item back to the
Commission for its approval.
Commission Member Miller recommended that the points brought out by Mr. Wood also be
included in the report brought back by staff.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
that the following motions be approved and adopted:
That the Community Development Commission, using the existing principal balance. develop
a new amortization schedule using an interest rate which reflects the current economic
conditions.
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That the Community Development Commission build into the new amortization schedule a
deferred period. The specific length of this deferred period is yet to be detennined.
The motion failed by the following vote: Ayes: Commission Members Negrete; Hemandez;
Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain: Commission
Member Curlin. Absent: None.
Commission Member Obemelman made a motion, seconded by Commission Member Devlin,
to continue this matter to December 6, 1993 and that staff be instructed to bring back a specific
agreement and supporting infonnation as to any additional collateral that may be offered in support of
the agreements.
The motion carried by the following vote: Ayes: Commission Members Curlin; Hemandez;
Oberllelman; Devlin; Pope-Ludlam. Noes: Commission Members Negrete; Miller. Abstain: None.
Absent: None.
19. PAY INCREASE FOR COMMISSION MEMBERS
(Community Development Commission)
(Redevelopment Committee Recommendation)
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez, to increase pay to Commission Members from $75.00 per meeting to $1,500 per month
and to increase the Economic Development Agency FY 93/94 budget by $144,000.
COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 5:02 P.M.
Jeff Wright, P. O. Box 2341, San Bernardino, indicated that a pay increase for the
Commission Members should be voted on by the public.
COMMISSlON MEMBER POPE.LUDLAM RETURNED AT 5:03 P.M.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:03 P.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 5:04 P.M.
Robert Castaneda, Citizen, stated that when the new Council Members ran for office, they
indicated that they were volunteering their services. He did not feel it was right for them to now
request a pay increase.
Jim Lynas, Citizen, spoke on the various ways of obtaining an increase. He felt the pay was
deserved, but recommended that the Council let the citizens of San Benardino vote on it.
Commission Member Hernandez stated that in 1988, a legal opinion was provided explaining
that it was legal for the Commission to grant itself an increase.
Sam Catalano, Carousel Mall, indicated that he would support a major change in the charter.
He believed that the Commission did deserve an increase due to its responsibilities as commissioners.
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Mr. Catalano stated that the pay for Commission Members should be enough to attract people
to run for office. He recommended the Commission review its request and consider other alternatives. .....
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Commission Member Curlin questioned whether or not annual increases according to the I
Consumer Price Index was included in the motion. .....
Commission Member Devlin made a substitute motion, seconded by Commission Member
Oberhelman, that raises for the Commission come from the general fund, and that no additional raises
be given from redevelopment funds.
Commission Member Hernandez indicated that those Commission Members who did not wish
to accept the increase did not have to.
COMMISSION MEMBER MILLER WAS EXCUSED AT 5:23 P.M.
Ricky Van Johnson, P. O. Box 7171, felt the Commission Members deserved an increase and
recommended they be paid appropriately.
The motion failed by the following vote: Ayes: Commission Members Oberhelman; Devlin;
Miller. Noes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Abstain: None.
Absent: None.
Commission Member Pope-Ludlam made a substitute motion, seconded by Commission
Member Negrete, to increase pay to Commission Members from $75.00 per meeting to $1,500 per
month with annual increases according to the Consumer Price Index and to increase the Economic
Development Agency FY 93/94 budget by $144,000.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain:
None. Absent: None.
The Commission requested the increase become effective immediately.
16. NEW POLICE FACILITY FINANCING
(Mayor and Common Council)
Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to
reconsider Item # 16.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
James Penman, City Attorney, explained that the Council would need to reconsider Item 16c
and 16d acting as the Joint Powers Financing Authority. He stated that the Mayor and Common
Council adjourned the Joint Powers Financing Authority during the morning session.
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COMMISSION MINUTES
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Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez that the
following resolutions be approved and adopted:
(.Joint Powers Financine Authoritv)
RESOLUTION NUMBER JP A20
RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY
APPROVING THE SALE AND DELIVERY OF NOT TO EXCEED $6,000,000
CERTIFICATES OF PARTICIPATION (1993 POLICE STATION PROJECT) EVIDENCING
THE DIRECT UNDIVIDED FRACTIONAL INTEREST OF THE OWNER THEREOF IN
LEASE PAYMENTS TO BE MADE BY THE CITY OF SAN BERNARDINO,
CALIFORNIA, AS A RENTAL FOR A CERTAIN PROJECT PURSUANT TO A LEASE
AGREEMENT WITH THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO
AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY
OF THE FINAL FORMS THEREOF.
RESOLUTION NUMBER JP A21
RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY,
APPROVING AND AUTHORIZING THE EXECUTION OF A CERTAIN GROUND LEASE
IN CONNECTION WITH THE FINANCING OF THE SAN BERNARDINO POLICE
STATION.
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I The motions carried by the following vote: Ayes: Council Members Negrete; Curlin;
-...... Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
RS-1. STATE OFFICES OUALIFICATIONS REVIEW COMMITTEE
(Community Development Commission)
Councilman Hernandez's Recommendation
Commission Member Hernandez felt the Committee should represent the entire community
and recommended that Commission Member Pope-Ludlam be appointed to the committee.
Commission Member Miller made a motion, seconded by Commission Member Devlin, to
table this item.
The motion carried by the following vote: Ayes: Commission Members Negrete: Curlin: Hernandez:
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absen!: None.
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RS-2. MINORITY AND WOMEN'S BUSINESS ENTERPRISE POLICY
(Community Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 5384
RESOLUTION OF TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE CITY
OF SAN BERNj\RDINO ADOPTING A POLICY ESTABLISHING GOALS FOR
MINORITY AND WOMEN BUSINESS ENTERPRISES IN AGENCY PROCUREMENT.
Commission Member OberlIelman made a motion, seconded by Commission Member
Hernandez, to authorize the Chaionan to execute said policy and direct the Agency Administrator to
develop Standard Operation Procedures to facilitate implementation within ninety (90) days.
The motions carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam. Noes: Commission Member Miller. Abstain:
None. Absent: None.
CLOSED SESSION
RS-3. ADJOURNED TO CLOSED SESSION
There were no items for discussion in Closed Session.
RS-4 ADJOURNMENT
At 5:42 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, December 6, 1993 at 11:00 a.m., in the Council Chambers of
City Hall, 300 North "0" Street, San Bernardino, California.
Respectfully submitted:
KE~NDERSON
Executive Director!
Secretary to the Commission
JOINT REGULAR MEETING
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MAYORANDCOMMONCOUNCR
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
December 6, 1993
11:00 a.m.
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was held in the Council Chmn bers, City Hall, 300 North "D" Street, San Bernardino.
California and called to onler by Mayor Tom Minor at approximately 1:00 pm., on Monday,
November 1, 1993 .
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor, Commission
Members Edward Negrete; David Oberhelman; Jerry Devlin; and Norine Miller. Absent: Dr. F. J.
Curlin; Ralph Hernandez; Valerie Pope-Ludlmn.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director. Development Department; Dennis Barlow, Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor, Phil Atvizo, Executive Assistant to the Council; Shauna
Clark, City Administrator, Fred Wilson, Assistant City Administrator, Rachel Clark, City Clerl<.;
Melanie Vale, Deputy City Clerl<.; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper, Brooks London, DeAnza/London Group; Mike
Silvennan, DeAnzajLondon Group.
23. MOBILEHOME WORKSHOP. LUNCHEON WORKSHOP
Kenneth J. Henderson, Executive Director, Development Department, stated that in November.
1992, the Commission authorized staff to initiate a Request for Proposal for Mobilehome Conversion.
The Commission subsequently selected the DeAnzalLondon Group.
Brooks London, DeAnza/London Group. stated that he had been involved with MobiJehome
Parks since 1984. He explained that he was a lawyer active in assisting communities anti owners in
mobilehome park conversions.
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December 6, 1993
Mike Silvennan, DeAnza/London Group, stated that DeAnza is the oldest mobilehome group
in the country with over 500 employees. ~
Mr. London discussed the process used in detennining the eligibility of mobilehome parks for
conversion. ..-1/
Mr. Silvennan indicated that the report prepared by the group focused on four (4) areas:
Residents, owners, property, and market analysis.
COMMISSION MEMBER MILLER WAS EXCUSED AT 1:20 P.M.
The Commission viewed a videotape, prepared by the DeAnza/London Group of the various
mobilehome parks in the City and their conditions.
COMMISSION MEMBER CURLIN ARRIVED AT 1:24 P.M.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 1:25 P.M.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 1:26 P.M.
Chainnan Minor infonned those in attendance that, due to the lack of a quorum, no decisions
would be made at this meeting.
Mr. Silvennan summarized the videotape and emphasized on the need to convert the
mobilehomes in Category I.
Mr. London discussed the recommendations for Categories II and III.
Sherry Numbly, Mobilehome Owner, asked questions relative to the video.
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Mr. London stated that he would provide Ms. Numbly with a copy of the report for her
review.
Mr. Henderson brought to the attention of the Commission the specific policy
recommendations, the section of the report dealing with the issue of a city-sponsored mobile home
park and stated that this item would be presented to the Commission at the next Commission Meeting
on December 20, 1993.
Phil Arvizo, Executive Assistant to the Council, explained that after reviewing the report
prepared by the DeAnza/London Group, the Commission was very comfortable with the
recommendations presented by the group.
The Commission Meeting was recessed until 3:00 pm.
MEETING RECONVENED
At 3:01 pm., the meeting of the Mayor and Common Council and the Community
Development Commission was called to order by Mayor Minor.
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December 6, 1993
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ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obemelman; Jerry Devlin;
Valerie Pope-Ludhm; and Norine Miller. Absent: None.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; James Penman, City Attorney; Lorraine Velarde,
Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Shauna Clark,
City Administrator; Rachel Clark, City Clerlc; Melanie Vale, Deputy City Clerlc; La Vonda M-
Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper.
CLOSED SESSION
24. ADJOURN TO CLOSED SESSION
At 3:02 pm. the Mayor and Common Council and the Community Development Commission
adjourned to closed session to discuss the following:
B. To confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(b )(1), as there is significant exposure to litigation.
MEETING RECONVENED
At 3:40 pm., the meeting of the Mayor and Common Council and the Community
Development Commission was called to order by Mayor Minor.
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obemelman; Jerry Devlin;
Valerie Pope-Ludhm; and Norine Miller. Absent: None.
REGULAR MEETING
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December 6, 1993
ST AFF PRESENT ~
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, J
Executive Director, Development Department; James Penman, City Attorney; Lorraine Velarde, -.J
Executive Assistant to the Mayor, Phil Arviw, Executive Assistant to the Council; Shauna Clark,
City Administrator; Rachel Clark, City CleIk; Melanie Vale, Deputy City CleIk; La Vonda M-
Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper.
PUBLIC COMMENTS ON ITEMS NOT ON AGENDA
Route 66 Rendezvous
Commission Member Hernandez expressed concern about the article in the Sun Newspaper
regarding Route 66 Rendezvous. He stated that Route 66 Rendezvous was one of the best activities
that occurs within the City.
Commission Member Pope-Ludlam agreed with Commission Member Hernandez and
recommended the subject matter be discussed at the Redevelopment Committee Meeting.
Diaional Parkini
,.,
Jeff Wright, P. O. Box 2341, indicated that he had spoken with several people regarding the
diagonal parking on "E" Street and the problems it has caused. He stated that the new parking has
taken away two (2) lanes.
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Larry Singleton, Citizen of San Bernardino, was very upset about the new diagonal parking on
"E" Street and criticized the planning efforts that created this type of parking.
Sam Catalano, Carousel Mall. emphasized that the diagonal parking was used to make the
downtown area pedestrian friendly. He said that the downtown businesses were pleased with the
diagonal parking.
CONSENT CALENDAR
The Commission Members requested that items numbered "3", "4", "6", "7", "8", "9", "10",
"12", and "13" be removed from the Consent Calendar.
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin,
that the Consent Calendar items numbered" I" through "13" be adopted. except for items numbered
"3", "4", "6", "7", "8", "9", "10", "12", Md "13".
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December 6, 1993
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The motion carried by the following vote: Ayes: Commission Members Negrete;
Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None.
Absent: None.
1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community Development Commission)
Commission Member ObeIhelman, made a motion, seconded by Commission Member Devlin,
that the minutes of the Community Development Commission of the City of San Bernardino for the
meeting of November 1, 1993 be approved as submitted in typewritten fODD.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
2. REDEVELOPMENT COMMITTEE MINUTES
(Community Development Commission)
Commission Member ObeIhelman made a motion, seconded by Commission Member Devlin,
that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of
November 4, 1993 be received and filed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Public Works Department
S. AWARD OF CONTRACT. TUBULAR STEEL FENCING AT MILL COMMUNITY
CENTER
(Mayor and Common Council)
Commission Member ObeIhelman made a motion, seconded by Commission Member Devlin,
that the following resolution be approved and adopted:
RESOLUTION NUMBER 93-452
RESOLUTION OF 1HE CITY OF SAN BERNARDINO A WARDING A CONTRACT TO
ALL PRO MASONRY, AJ.V. FOR INSTALLATION OF TUBULAR STEEL FENCING AT
MILL COMMUNITY CENTER.
REGULAR MEETING
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COMMISSION MINUTES
December 6, 1993
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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Development De9artment
11. EMMERTON SCHOOL PROGRAM
(Mayor and Common Council)
Commission M~ber ObeIhelman made a motion, seconded by Commission Member Devlin,
to approve the Emmerton Pre-school proposal regarding the acquisition of modular building units,
approve the utilization of $60.000 in available Community Development Block Grant (CDBG)
Program funds and authorize the Mayor and Executive Director to execute any document necessary to
effectuate said transaction.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Public Works Department
(Community Development Commission)
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3.
IN-FILL STREET IMPROVEMENTS ON ARTERIAL AND COLLECTOR STREETS
Commission Member Hernandez expressed concern regarding one fInn obtaining all the
business in the City. He felt that the increase in the net price was excessive and recommended that
the City open bids to obtain a better quote.
Kenneth J. Henderson, Executive Director, Development Department, stated that in September,
1992, the Commission approved $1 million for infIll. He said that on a number of occasions, the
plans and specifIcations could not be prepared due to imprecise infonnation regarding quantities and
other typical specifIcations. He indicated that since the initiation of the in-fill improvements, there has
been signifIcant increases and decreases to contract prices.
Commission Member ObeIhelman commented on the procedure used regarding change orders.
He felt a better procedure should be implemented.
Commission Member ObeIhelman made a motion, seconded by Commission Member Devlin,
that CCO Number 6 to the contract with Bob Britton. mc.. for installation of in-fill street
improvements, in accordance with PhUl No. 8842, be approved, to autholize a net increase in the
contract price of $210,440.26, from $472,743.85 to $683,184.11, in order to reflect actual contract
quantities.
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COMMISSION MINUTES
December 6, 1993
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Commission Member Hemandez discussed the amount of funds being paid to one contractor
for work done within the City.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item
was submitted by Public Works and that the Director of Public Works would answer all questions in
reference to this item.
Mayor Minor continued this item until Roger Hardgrave, Director of Public Works could
attend.
4. ADVERTISE FOR BIDS - CONSTRUCTION OF TRAFFIC DIVERTERS IN
HIGHLAND/ARDEN AREA
(Community Development Commission)
Commission Member Hernandez questioned the amount of funds set aside for Arden Guthrie.
He requested copies of the docwnents that authorized staff to spend $2 million plus $500,000 from the
Inland Valley Development Agency (IVDA) for use in the Arden Guthrie area.
Kenneth J. Henderson, Executive Director, Development Department, explained that one of the
motions approved during the discussions for the implementation of the Arden Guthrie Strategy was to
direct staff to seek additional funding from IVDA. It was later approved that IVDA would provide its
portion of 20% set-aside funds for this project.
Mr. Henderson stated that this item would provide for the cul-de-sacing of streets in the area.
Commission Member Devlin made a motion, seconded by Commission Member Oberhelman,
that the plans for construction of traffic diverters on McKinley Street, Newcomb Street, and
Dumbarton Street, between 20th Street and Highland Avenue, in accordance with Plan No. 9030, be
approved; and the Director of Public Works/City Engineer be authorized to advertise for bids.
Commission Member Pope-Ludlam expressed concern regarding IVDA not bonding its 20%
set-aside funds.
Timothy C. Steinhaus, Administrator, Economic Development Agency, reiterated that these
actions were all ready approved by the Commission at an earlier meeting.
Commission Member Pope-Ludlam reminded the Commission Members of discussions that
took place when the implementation strategy was approved and indicated that the Commission
believed funding assistance would be provided by IVDA.
Commission Member Curlin recommended this item be referred to the Redevelopment
Committee.
Commission Member Hernandez spoke on the cost of this item to the City.
REGULAR MEETING
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COMMISSION MINUTES
December 6, 1993
Commission Member ObeIhelman spoke on the approval of the concept by the Commission
and stated that he felt that there was no need for further discussion. ~
Timothy Sabo, Special Counsel, Sabo and Green, gave a brief history on NDA, its programs,
and its funding soun;es. He spoke regarding an agreement being developed between NDA, the City, -....I
and the County which would infOOD the City of the accumulated funds it is entitled to.
Jeff Wright, P. O. Box 2341, asked questions regarding traffic circulation in the Arden Guthrie
neighboIhood.
Commission Member Curlin made a substitute motion, seconded by Commission Member
Hernandez, to refer this item to the Redevelopment Committee.
The motion failed by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez. Noes: Commission Members ObeIhelman; Devlin; Pope-Ludlam.; Miller. Abstain:
None. Absent: None.
Commission Member ObeIhelman made a motion, seconded by Commission Member Miller,
that the plans for construction of traffic diverters on McKinley Street, Newcomb Street, and
Dumbarton Street, between 20th Street and Highland Avenue, in accordance with Plan No. 9030, be
approved; and the Director of Public Works/City Engineer be authorized to advertise for bids.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None.
Absent: None.
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Commission Member Pope-Ludlam requested the $500,000 from NDA be bonded.
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3. IN-FILL STREET IMPROVEMENTS ON ARTERIAL AND COLLECTOR STREETS
(Community Development Commission)
Commission Member Hernandez stated that the initial request from staff allowed this vendor
to continue working on certain projects because his equipment was already located on the site, thus
making it easier for him to complete the work. He felt that since the equipment is now being moved
from site to site, bids should be opened up to other vendors.
Roger Hardgrave, Director of Public Works, explained that the vendor in question had
completed his work and had closed his operations in San Bernardino and has relocated out of state.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Negrete, that CCO Number 6 to the contract with Bob Britton, Inc., for installation of in-fill street
improvements, in accordance with Plan No. 8842. be approved. to authorize a net increase in the
contract price of $210,440.26, from $472,743.85 to $683,184.11, in oruer to reflect actual contract
quantities.
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REGULAR MEETING
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December 6, 1993
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Aleney Administration
6. CHRISTMAS Cl.OSURE
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin,
to authorize the closure of the Economic Development Agency offices during the Christmas holidays,
December 27 - 31, 1993; and authorize the trade of the Christmas Eve holiday from December 23,
1993 to December 27, 1993.
Commission Member Hernandez expressed concern regarding the various city departments
closing for the Christmas holidays. He felt government entities should remain open to the public.
Commission Member Curlin questioned the benefits of the holiday closure.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the closure
would not impose any costs on the City.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Oberhelman; Devlin; Miller. Noes: Commission Member Hernandez; Pope-Ludlam. Abstain: None.
Absent: None.
7. CAROUSEL MALL AGREEMENT
(Communitv Development Commission)
Commission Member Curlin indicated that he would like to excuse himself from discussions
on items numbered "7" and "9" due to having received campaign contributions from the mall.
Jam es Penman, City Attorney, explained that he discussed with Councilman Curlin his
reasoning for excusing himself and infonned him that, legally, he could include himself in the
discussions.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that a fonnal
presentation on this item would be made during a luncheon wodcshop at a later date.
REGULAR MEETING
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COMMISSION MINUTES
December 6, 1993
9
Commission Member Hernandez made a motion, seconded by Commission Member
Oberllelman, to authorize the ChaiDIlan to execute a Cooperation and Reimbursement Agreement ~
between the Economic Development Agency and Central City Company for an amount not to exceed
$35,000.00 relative to consultant selVices for negotiation of leases and operating covenants at the
Carousel Mall. .....J
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the City
owning the Carousel Mall.
Mr. Steinhaus explained that the Agency owned the parking lot and the common walkway at
the Carousel Mall. He stated that the department stores and small shops each own their individual
pads.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hemandez;
Obemelman; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Members Curlin; Devlin.
Absent: None.
8. COMMUNITY CALENDAR AND OUARTERLY COMMUNITY NEWSLETTER
(Community Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member Negrete,
to authorize a pun:hase order with Crown Printers in an amount not-to-exceed $84,900.00, plus
applicable sales tax of $6,503.00, for a total of $90.403.00, for the production and printing of a
community calendar and three issues of the quarterly community newsletter, and authorize the
expenditure of $7,300.00 for mailing the aforementioned items.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Obemelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Curlin. Abstain: None.
Absent: None.
Development Department
9. CENTRAL CITY COMMERCE CENTER. WOOLWORTH BUILDING PARKING
LICENSE
(Mayor and Common Council)
Councilman Hernandez inquired about the am ount of the Agency's annual subsidy for this
business.
Kenneth J. Henderson, Executive Director, Development Department, stated Ihat the <mulIal
subsidy was approximately $30,000 a year.
REGULAR MEETING
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COMMISSION MINUTES
December 6, 1993
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COWlcilman Hernandez expressed concern regarding the lIIlOWlt of funds being spent on this
r item.
I
I COUNCILMAN CURLIN WAS EXCUSED AT 4:42 P.M.
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COWlcilman Obemelman commented that if the lease was tenninated, the parking agreement
would be tenninated also.
COWlcilwoman Pope-Ludlam made a motion, seconded by COWlcilwoman Miller, that the
following resolution be approved and adopted:
RESOLUTION NUMBER 93-453
RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE
EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT
WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER.
The motion failed by the following vote: Ayes: COWlcil Members Obemelman; Pope-
Ludlam; Miller. Noes: COWlcilman Negrete. Abstain: COWlcil Members Hernandez; Devlin.
Absent: COWlcilman Curlin.
(Community Development Commission)
[
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller,
that the following resolution be approved and adopted:
RESOLUTION NUMBER 5385
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A
FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION
RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION AND THE
CITY OF SAN BERNARDINO AND CENlRAL CITY COMMERCE CENTER.
The motion failed by the following vote: Ayes: Commission Members Obemelman; Pope-
Ludlam; Miller. Noes: Commission Members Negrete. Abstain: Commission Members Hernandez;
Devlin. Absent: Commission Member Curlin.
Mayor Minor recommended this item be continued when all Council Members were present.
10. INFILL HOUSING DEVELOPMENT PROGRAM
(Communitv Development Commission)
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COMMISSION MINUTES
December 6, 1993
Commission Member Hernandez indicated that there was a discrepancy in the back-up of this
item regarding the dollar figures. He stated that the parcel nwnbers listed in the docwnent were the ....
sane and requested clarification.
COMMISSION MEMBER CURLIN RETURNED AT 4:45 P.M. ......iI
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he would
contact the housing staff to clarify the discrepancy.
Mayor Minor stated that this item would be discussed when the infonnation was obtained.
9. CENTRAL CI1Y COMMERCE CENTER - WOOLWORTH BUILDING PARKING
LICENSE
(Mayor and Common Council)
item.
Councilman Hernandez made a motion, seconded by Councilwoman Miller, to reconsider this
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Councilman ObeIhelman made a motion, seconded by Councilwoman Miller, that the
following resolution be approved and adopted:
....
RESOLUTION NUMBER 93-453
..",
RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE
EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT
WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER.
The motion carried by the following vote: Ayes: Council Members Curlin; ObeIhelman;
Pope-Ludlam; Miller. Noes: Councilman Negrete. Abstain: Council Members Hernandez; Devlin.
Absent: None.
(Community Development Commission)
Commission Member ObeIhelman made a motion, seconded by Commission Member Miller,
that the following resolution be approved and adopted:
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RESOLUTION NUMBER 5385
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A
FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION
RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION AND THE
CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER.
The motion carried by the following vote: Ayes: Commission Members Curlin; Oberhelman;
Pope-Ludlam; Miller. Noes: Commission Members Negrete. Abstain: Commission Members
Hernandez; Devlin. Absent: None.
12. REQUEST FOR ADDITIONAL FUNDING FOR THE PLATT BUILDING
DEMOLITION
(Mayor and Common Council)
Timothy C. Steinhaus, Administrator, Economic Development Agency, discussed the
additional costs to this item because of the asbestos and time constraints.
Kenneth J. Henderson, Executive Director, Development Department, explained that even with
the need for additional funding, the overall costs of the demolition were lower than the second lowest
bid.
Councilman Oberhelman made a motion, seconded by Councilman Negrete, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 93454
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF
UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE CENTRAL
CITY NORTH REDEVELOPMENT PROJECT AREA OF THE AGENCY.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
(Communitv Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete,
that the following resolution be approved mId adopted:
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RESOLUTION NUMBER 5386
RESOLUTION OF TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE CITY
OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO TIlE
BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE .......,
CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA OF TIlE AGENCY.
........
Commission Member Oberltelman made a motion, seconded by Commission Member Negrete,
to authorize $12,000 additional funding for the Platt Building demolition and a total approved project
cost not-to-exceed $220,150
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberltelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
10. INFILL HOUSING DEVELOPMENT PROGRAM
(Communitv Development Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, infonned the
Commission that the sixth parcel number listed in the back-up should read "144-081-22" instead of
"144-123-46".
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to approve the proposed infill housing development program modification, authorize the
utilization of $12,000 in available low/mod housing set-aside funds and direct the Chaionan and
Executive Director to execute any documents necessary to effectuate said modifications.
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Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to approve the designation of Young Homes of California as the Agency sponsored infill
developer replacing SSLM Ventures and authorize the Chaionan and Executive Director to execute
any documents necessary to effectuate said authorization.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
13. OPTION HOUSE TRANSITIONAL HOUSING DEVELOPMENT CHANGE ORDERS
(Mavor and Common Council)
Kenneth J. Henderson, Executive Director, Development Department. discussed the difficulties
that have occurred regarding this project and the need for the additional funding.
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COUNCILWOMAN POPE.LUDLAM WAS EXCUSED AT 4:50 P.M.
r Councilman Oberhelman indicated that Option House was the primary caretaker for this type
L of activity in the City. He recommended approval of the item.
COUNCILWOMAN POPE.LUDLAM RETURNED AT 4:52 P.M.
Councilman Oberhelman made a motion, seconded by Councilman Devlin, to approve $26,000
in Low/Mod funds for Option House Transitional Housing to complete the project by covering
additional costs required by the installation of a donated replacement unit and change onlers that
resulted therefrom, as well as a change onler for rehabilitation of a second unit.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
END OF CONSENT CALENDAR
14. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
OPEN PUBqC HEARING
CLOSE PUBLIC HEARING
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(Mayor and Common Council)
Councilman Oberhelman made a motion, seconded by Councilman Devlin to close the public
hearing.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludhm, to
receive and file the attached Comprehensive Housing Affonlability Strategy (CHAS) document and
authorize staff to submit same to the U.S. Housing and Urban Development Department.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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15. PUBLIC HEARING - HUD 108 LOAN APPLICATION - WEST SIDE PLAZA
OPEN PUBLIC HEARING
CLOSE PUBLIC HEARING
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(Mayor and Common Council)
Councilwoman Pope-Ludlan made a motion, seconded by Councilman Hemandez, to close the
public hearing.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Councilman Hemandez made a motion, seconded by Councilman Oberhelman, to approve the
U.S. Department of Housing and Urban Development (BUD) Section 108 Loan Application for the
West Side Plaza project, and authorize the Mayor and Executive Director to execute all necessary
documents. Further, that staff be authorized to submit to HUD said Section 108 Loan Application.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Obe.rhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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16. SALVATION ARMY PAYEE PROGRAM
'eIIIIiJ
(Communitv Development Commission)
(Councilwoman Pope-Ludlam's Recommendation)
Commission Member Pope-Ludlam discussed the Salvation Anny's need for financial
assistance to help them with their payee program which provides assistance to the mentally ill and
homeless. She explained that the Salvation Anny houses over 350 people including families.
Commission Member Devlin agreed that the funds were needed, but stated that redevelopment
monies could not be used for this pwpose.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that
Community Development Block Grant (CDBG) funds would be the appropriate funding source for this
type of project, but indicated that the funds were depleted until spring.
Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, to table this item.
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Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to refer this item to the Redevelopment Committee.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Councilman Obemelman. Abstain: None. Absent:
None.
17. SOILS ENGINEERING SERVICES. STATE CONSOLIDATED OFFICES AND
CAL TRANS BUILDING
(Communitv Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member Negrete,
to authorize the Agency Administrator to draft and execute a contract with CHJ, Inc., in an amount
not to exceed $120,000 for soil engineering services for the design of the State Consolidated Offices
and Caltrans Building on the Superblock site, contingent upon fmal verification of Minority Business
Enterprise goal compliance.
Commission Member Hernandez questioned the use of "local" businesses for this project.
James Penman, City Attorney, stated that if the Commission would like the Attorney's Office
to come up with ideas on the defmition of "local" businesses, it would do so.
".-. Commission Member Devlin indicated that the fmu selected was from the City of Colton and
he felt that was a "local" business.
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Timothy C. Steinhaus, Administrator. Economic Development Agency, explained that the
selected finn would be using three (3) subcontractors: a minority finn, a women-owned finn; and a
disabled veterans finn.
Commission Member Pope-Ludlam expressed concern regarding the need to have qualified
minorities participate in the beginning stages of this project.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:12 P.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 5:14 P.M.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
18. ARCHITECTURAL SERVICES - ST ATE CONSOLIDATED OFFICES AND
CAL TRANS BUILDING
(Communitv Develooment Commission)
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Commission Member Obemelman made a motion, seconded by Commission Member Devlin,
to authorize the Agency Administrator to draft and execute a contract with Keating Mann Jernigan
Rottet in an amount not to exceed $4,094,833 (reimbursables included) for structural and interior
architectural services for the design of the State Consolidated Offices and Caltrans Building on the
Superblock site; and, allocate $250,000 in contingency for unanticipated design changes.
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Commission Member Hernandez discussed the process used to select the contractors.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that neither
himself nor staff had any input in the selection of contractors for the Caltrans project. He stated that
the committee completed all the interviews and made its selections based on qualifications.
..
Commission Member Hernandez commented on a conversation that he had with Mr. Richard
Mayo, Caltrans Project Manager, and his concerns with worldng with Caltrans officials.
Richard Mayo, State of California, 107 South Broadway, Los Angeles, CA 90012, spoke on
the need to proceed quickly with this project. He stated that due to the need to meet a certain
deadline, the State could not affonl any time delays .
James Penman, City Attorney, recommended Councilman Curlin, Councilman Hernandez, the
Mayor and Mr. Mayo meet and discuss any misunderstandings they have had relative to this project.
Commission Member Obemelman pointed out that this project would be the most important
thing that would happen within the City. He said it would bring approximately 25 agencies and
Caltrans to the downtown area. .,
Jeff Wright, P. O. Box 2341, San Bernardino, CA, stated expressed concern regarding the cost .....
for this project.
Michael Mann, 606 South Olive Street, Los Angeles, CA, stated that he had invited local
finns to participate in the project and stated that 15.07% of the total project would be received by
local finns.
Commission Member Miller indicated that the State Consolidated Offices and Caltrans Review
Committee asked the same questions and went through the slIDe review process that the Commission
has today.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez.
Absent: None.
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19.
AGENCY SPONSORSHIP OF PROPOSED COMPLIANCE WORKSHOP
(Community Development Commission)
Councilman Hernandez's Recommendation
Fmncis Grice, 466 Orange Street, Redlands, CA, discussed previous assistance she had given
to the City of San Bernardino.
Carol Stell, President, EOCO, indicated that the pwpose of the workshop was to establish a
forum to discuss the implementation of the program and strategic plan for the Minority Business
Entetprise/Women-Owned Business Entetprise (MBE/WBE) program.
Ms. Stell announced the various individuals who would speak at the workshop stated how the
workshop would benefit the City. She stated that the cost for the one-day workshop would be $8,000.
MA YOR MINOR WAS EXCUSED AT 5:53 P.M.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:53 P.M.
Ms. Grice stated that the workshop would be set-up for approximately 200 elected and
appointed officials - both City and other organizations. She said it has been suggested that the
workshop be held in the Council Chmnbers.
Ms. Stell reiterated the benefit of this workshop for department heads, and recommended that
it be held January 14, 1994.
Commission Member Oberhelman asked the Agency Administrator and the City Administrator
if it was necessary to seek out external resources to discuss this issue.
Timothy C. Steinhaus, Administrator, Economic Development Agency, said the Agency may
have a few individuals who would be interested in this workshop. He spoke on the Agency's
involvement with MBE/WBE and CDBG projects. He explained that the Agency has been successful
in following the federal guidelines established in reference to both of those programs.
Mr. Steinhaus suggested that since both the City and the Agency would be participating in this
workshop, that the cost of the workshop be shared. He also recommended that individuals be charged
a fee to help pay for refreshments.
Shauna Clark, City Administrator, stated her staffs willingness to obtain as much training as
necessary; however, she felt that is was not necessary for all department heads to attend this
workshop.
Commission Member Hernandez stated that he would be willing to seek other agencies to help
pay for the cost of the workshop.
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Commission Member Hernandez made a motion. seconded by Commission Member Pope-
Ludlam, to approve the sponsorship of a Contract Compliance Workshop for a sum not to exceed
$8,000 on January 14, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Oberllelman; Devlin. Abstain:
None. Absent: None.
20. RECONSIDERA TION OF COMMISSION COMPENSATION
(Community Development Commission)
Councilman Curlin's Recommendation
Commission Member Curlin made a motion, seconded by Commission Member Hernandez, to
table this item.
Commission Member Oberllelman made a substitute motion, seconded by Commission
Member Devlin to reconsider this item.
Commission Member Pope-Ludlam made a substitute motion, seconded by Commission
Member Negrete, to table this item.
nle motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Oberllelman; Devlin; Miller. Abstain:
None. Absent: None.
21. ROGER'S BINDERY
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, explained previous
discussions that have taken place at the Commission Meetings regarding Roger's Bindery.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 6:12 P.M.
COMMISSION MEMBER HERNANDEZ RETURNED AT 6:14 P.M.
Mr. Henderson explained that the staff report identified four (4) major alternatives in reference
to the bindery and also recommendations by staff.
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 6:18 P.M.
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December 6, 1993
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Commission Member Oberllelman stated that over the last few weeks, the Commission had
reviewed many things about the business. He stated that the Commission agrees that the business
does not employ as many employees as originally indicated, that this is a loan, and that the
Commission has a duty to the taxpayers of the city.
Commission Member Oberllelman felt the business generated sufficient funds to repay its
obligation to the Agency. He stated that if the business chose to make significant changes in the way
it runs its operations, it could repay its delinquencies.
Commission Member Oberllelman made a motion, seconded by Commission Member Miller,
to authorize the Agency Administrator to initiate a lawsuit to get the $60,500 owed to the Agency and
to set a timefrnme for Roger's Bindery of seven (7) days to bring loan current. If the loan is not
current within the seven (7) days, lawsuit will be initiated; if the loan is brought current, authorize the
Agency Administrator to renegotiate the full principal balance of the loan in teuns more
accommodating to the current cash flow problems of the business.
COMMISSION MEMBER POPE.LUDLAM RETURNED AT 6:22 P.M.
Roger Imbriani, 1905 Riverview Drive, San Bernardino, CA., commented on the financial
difficulties of the bindery due to customers no longer paying their debts to the bindery. He stated that
the business had been negotiating with other creditors to make payment arrangements.
Commission Member Curlin questioned the salaries and expenses of the business.
Mr. Imbriani answered questions relative to Commission Member Curlin's concerns indicating
that over the past 10 years, his personal salary has remained at $75,000 a year. He stated that his
W -2 fODD submitted to the state lists all his personal and business expenses which totalled
approximately $139,000 last year.
Mr. Imbriani explained his efforts to try and resolve all of his delinquencies, indicating that
one of the agencies he wotked with had set-aside a bindery payable in the amount of $1.7 million.
Commission Member Oberllelman indicated that a particular creditor did not appear on the
creditor list submitted by the business.
Discussions ensued regarding all of the creditor lists submitted by the business and the
reasoning for each.
Commission Member Pope-Ludlam expressed concern regarding the questioning being done at
the Commission Meeting in an open forum.
Commission Member Miller commented on documents presented by staff regarding the
business. She asked if Mr. Imbriani had reviewed those documents.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that Mr.
Imbriani had not reviewed the documents. He explained that staff offered him an opportunity to meet
with the other shareholders to discuss the documents and he declined.
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December 6, 1993
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Mr. Imbriani stated that as CEO of Roger's Bindery, he has complete authority to negotiate all
contracts. He felt the other shareholders did not need to be involved with this process. ~
Commission Member Hernandez expressed concern regarding the Commission discussing
infoonation of the business when the owner was not infooned of such infoonation. __
Bob Forrest, Chief Financial Officer, Roger's Bindery, discussed the amount of employees
who wOIk at the bindery stating that they have a: $10 million payroll. He explained that the bindery is
1/3 of the US Postal Service business in San Bernardino County. He indicated that if the bindery
ceases doing business, the Postal Service would incur a $140 million deficit problem.
Mayor Minor questioned Mr. 1mbriani's intent to repay the Agency.
Mr. Forrest explained to the Commission how delinquencies were prioritized within the
business. He stated that a high priority went to maintaining the binding machines since it was the
revenue source of the bindery.
Mr. Forrest stated that he would be paying the $120 million in labor over the next 10 years to
this City. He said that his salary was $75,000 a year, benefits, and that he was entitled to profit
sharing when the company made a profit.
Commission Member OberlIelman questioned the expenditures of the business at this point in
its fiscal year.
Mr. Forrest stated that the business expenditures are down due to reductions in personnel.
....
Jackie Imbriani, 1601 Barton Road, Redlands, CA, stated that she was a stockholder, officer ....,j
and a director of Roger's Bindery. She slaled that the infoonalion provided to lhe Agency staff was
taken from the books of Roger's Bindery. She felt the business was hemorrhaging througb poor
management, excessive funds being spent to certain employees, and business promotion. The loss of
major customers over the last several months have also caused the company to have problems.
It
Mrs. hnbriani stated that the stockholders were suppose to meet at least monthly to discuss the
business. She stated tbat although a meeting had not been held within nine (9) months, they held a
meeting three (3) weeks ago to discuss the liquidation of the mailing company.
Commission Member OberlIelman explained that his motion was a substantial variation from
Option 4, presented by staff. He said that Option 4 was simply to file a lawsuit to collect the
delinquency and his motion recognized that the City should do everything in its power to collect the
delinquency, but also to negotiate new and more favorable teons for the principle balance of the loan.
Timothy Sabo, Special Counsel, Sabo & Green, recommended staff enler into some type of
negotiations or possibly some agreement until confionation is made regarding the status of the
company. He also suggested that the sluuehulders meet with !vIr. Steinhaus. Gene Woud .Uld the CPA
to see if a recommendation could be made amongst the parties.
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December 6, 1993
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Mr. Sabo felt the Commission should authorize the City Attomey to file a lawsuit and give
staff approximately four weeks to come up with a recommendation acceptable to all parties involved
before the City Attomey would actually file the lawsuit. He believed that would allow the City to be
in a position of strength.
Commission Member Miller made a motion, seconded by Commission Member Oberhelman,
to direct Mr. Steinhaus, Mr. Gene wood, and Mr. Sabo to meet with the Roger's Bindery shareholders
and certified public accountant to resolve the loan delinquency; that Mr. Steinhaus be authorized to
file a lawsuit if the loan delinquency is not resolved; and that the matter return on January 10, 1994.
Discussion ensued regarding clarification of the motion.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: Commission Member Hernandez. Abstain: None.
Absent: None.
22. DELINOUENT NOTES AND DEVELOPMENT AGREEMENTS IN DEFAULT-
ORAL PRESENTATION
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin
to continue tins item wItil December 20, 1993.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Miller. Noes: Commission Member Pope-Ludlmn. Abstain:
None. Absent: None.
23. AD.lOURNMENT
At 7:13 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, December 20, 1993 at 11:00 a.m., in the Council Chmnbers of
City Hall, 300 North "0" Street, San Bernardino, California.
Respectfully submitted:
~,o~
KENN H J. H NDERSON
Executive Directorl
Secretary to the Commission
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MAYOR AND COMMON COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
MINUTES
JOINT REGULAR MEETING
December 20, 1993
11:00 a.m.
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 4:20 pm., on Monday, December 20, 1993, in the Council Chambers, City Hall, 300
North "D" Street, San Bernardino, California.
ROLL CALL
Roll call was taken with the following members present: Chaionan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberllelman; Jerry Devlin;
Valerie Pope-Ludlam. Absent: Commission Member Norine Miller.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; James Penman, City Attorney; Shauna Clark, City
Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Rachel Clark, City Clerlc;
Suzanna Cordova, Deputy City Clerlc; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
None.
PUBLIC COMMENTS NOT ON THE AGENDA
COMMISSION MEMBER MILLER ARRIVED AT 4:25 P.M.
Albert Martinez, P. O. Box 1622, San Bernardino, CA 92401, commented on discussions
taking place within the community regarding various council members.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:27 P.M.
COMMISSION MEMBER HERNANDEZ RETURNED AT 4:28 P.M.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, commented on complaints regarding the
diagonal parking on "E" Street.
CONSENT CALENDAR
JOINT REGULAR MEETING
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DECEMBER 20, 1993
The Commission Members requested that items numbered "5", "6", "7", "9", "10", "11" and
"12", be removed from the Consent Calendar. ~
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete,
that the Consent Calendar items numbered "1" through "12" be adopted except for items numbered ......
"5", "6", "7", "9", "10", "11" and "12", respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
1. JOINT POWERS FINANCING AUTHORITY
(Communitv Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete,
that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, January
24, 1993.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
2.
COMMUNITY DEVELOPMENT COMMISSION MINUTES
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(Communitv Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete,
that the minutes of the Community Development Commission of the City of San Bernardino for the
meetings of November 15, 1993 and December 6, 1993 be approved as submitted in typewritten
foon.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
3. REDEVELOPMENT COMMITTEE MINUTES
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete,
that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of
November 18, 1993 be received and filed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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4. AGREEMENT FOR ENGINEERING DESIGN SERVICES FOR MT. VERNON
AVENUE STORM DRAIN
(Mavor and Common Council)
Councilman Obemelman made a motion, seconded by Councilman Negrete, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 93-464
RESOLUTION OF TIlE CITY OF SAN BERNARDINO AU1HORIZING TIlE EXECUTION
OF AN AGREEMENT WITH BSI CONSULTANTS, INC., RELATING TO THE
PROVISION OF PROFESSIONAL ENGINEERING DESIGN SERVICES FOR TIlE MT.
VERNON AVENUE STORM DRAIN
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Development Department
8.
OFFICE LEASE - 201 NORTH "E" STREET
(Community Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member Negrete,
to authorize the Executive Director to draft and execute a lease and all other necessary documents
with the California Southern Small Business Development Corporation for the utilization of
approximately 800 square feet of office space on the second floor of the 201 Building.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
5. INVESTMENT POLICY
(Communitv Development Commission)
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the approval
of this policy.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez, to approve and adopt the Development Department's Annual Statement of Investment
Policy for the year 1994.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; OberlIelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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6. AWARD OF BID - 4TH & "E" PARKING LOTS
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(Mavor and Common Council)
Timothy C. Steinhaus, Administrator, Economic Development Agency, discussed prior actions
to the lots in question and stated that the cost for the improvements would be $194,000. He explained
that nominal lighting and landscaping would be required per the planning department.
Councilman OberlIelman made a motion, seconded by Councilman Devlin, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 93465
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO
THE BENEFIT OF CERTAIN IMPROVEMENTS FOR THE STATE COLLEGE
REDEVELOPMENT PROJECT AREA.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
OberlIelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Councilman Hernandez. Absent:
None.
(Communitv Development Commission)
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Commission Member OberlIelman made a motion, seconded by Commission Member Devlin,
that the following resolution be approved and adopted:
RESOLUTION NUMBER 5387
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS
AS TO THE BENEFIT OF CERTAIN PUBLIC IMPROVEMENTS FOR THE STATE
COLLEGE REDEVELOPMENT PROJECT AREA.
Commission Member OberlIelman made a motion, seconded by Commission Member Devlin,
to award a bid in an amount of $153,885 to Eastland Construction of San Bernardino for the
construction of parking lot improvements on the northwest and northeast comers of 4th and "E"
Streets, authorize $40,115 for engineering and inspection services and contingency, and allocate bond
proceeds in an amount not to exceed $194,000 for the foregoing.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
OberlIelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. ~
Absent: None.
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7. COURT STREET SOUARE PARKING LOT AND GREAT WESTERN WALL
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, explained that the cost
for this item includes the construction of a stairway and demolition of the wall. He also stated that
the Agency would need to comply with all City codes when completing this project.
Commission Member Curlin questioned the availability of the lot for various activities during
the construction process.
Mr. Henderson stated the west portion of the lot would remain available for alternate uses.
Commission Member Hernandez asked if this project was part of the budget process.
Mr. Henderson indicated that this project was not included in the budget. He explained that
there was approximately $1 million of bond proceeds from the South Valle Project Area that was
available.
Timothy C. Steinhaus, Administrator, Economic Development Agency, reminded the
Commission that the joint financing between the Agency and the City for the building of the police
station released some of the bond proceeds for other use. He clarified that this item was only a
request to solicit bids.
Commission Member Hernandez recommended this item be referred to the Redevelopment
Committee.
Mr. Steinhaus stated that this item had been previously discussed at both the Commission and
Redevelopment Committee meetings.
Discussion ensued regarding priorities set by the Commission during the budget hearings and
also the location of the proposed Perfonning Arts Center.
Commission Member Hernandez questioned the possibility of a restaurant locating to this site.
Mr. Steinhaus indicated that there was only an expressed interest from a restaurant to locate to
the downtown area. He stated that nothing was certain.
Chainnan Minor discussed the possibility of locating a Perfonning Arts Center in San
Bernardino.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Oberllelman, to authorize the Executive Director to advertise for bids for the construction of Court
Street Parking lot, initiate negotiations with property owners concerning the demolition of the Great
Western Wall and construction of a stairway, with the understanding that funds have not been
allocated.
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 5:04 P.M.
COMMISSION MEMBER POPE-LUDLAM RETURNED AT 5:05 P.M.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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9. WEST SIDE PLAZA DAY CARE PROJECT
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to approve the West Side Plaza Day Care Project and authorize the Executive Director to develop and
execute a lease agreement between the City of San Bernardino Redevelopment Agency and New
Frontier CommeICial Properties in order to provide 3,400 square feet of outside play area in
connection with the development of a day care facility.
Kenneth J. Henderson, Executive Director, Development Department, explained that approval
of this item would not impose a cost on the Agency.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
10. ARROWVIEW PLAZA LTD - REFINANCING REOUEST
(Communitv Develo.,ment Commission)
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Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to approve and authorize the Executive Director to draft and execute documents to implement, a
restructuring of the Agency's interim construction loan of $900,000 to Arrowview Plaza, Ltd., subject
to Chino Valley Bank approval, which, after repayment to the Agency of $400,000 will result in a
medium term loan of $500,000 on terms as described in the attached staff report.
Commission Member Obethelman expressed concern regarding the current indebtness of
Arrowview Plaza Ltd. He questioned the need for the restructuring of the loan as well as the firms
credibility .
Kenneth J. Henderson, Executive Director, Development Department, answered questions
relative to Commission Member Obethelmans' concerns.
Michael Geber, Arrowview Plaza Ltd., briefed the Commission on the reasoning for the
request presented and answered relative questions.
Mr. Henderson stated that the loan guarantee for this item turned into a loan in 1992. He said
that the Agency's involvement with this project would terminate in five (5) years or when the building
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam; Miller. Noes: Commission Member Obemelman; Devlin. Abstain: None.
Absent: None.
11. INLAND BEVERAGE - EXTENSION REOUEST
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to approve, and that the Executive Director be authorized to draft and execute a six month
extension of the Loan Agreement with Inland Beverage, Inc., subject to Chino Valley Bank approval,
in the principal amount of $750,000 and on tenns described in the attached staff report, together with
such other documents as are required to carry out the tenns of the Loan Agreement and its extension.
Kenneth J. Henderson, Executive Director, Development Department, stated that the Agency
was confident it would receive full payment from this loan between May and June of 1994. He
explained that Inland Beverage had always been current on its obligations to the Agency.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
12.
MOBILE HOME PARK CONVERSION FEASIBILITY STUDY
(Communitv Development Commission)
Commission Member Hernandez discussed the need to include a provision in the program for
new mobilehome parks.
Mike Silvennan, De Anza/London Group, stated that the DeAnza/London Group was fonned
to conduct the feasibility study. He spoke on the issue of building a new park in the City but
indicated that the DeAnza/London Group would not be involved.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:28 P.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 5:29 P.M.
Commission Member Hernandez explained that new parks should be built to accommodate
triple-wide trailers who wish to participate in the conversion process. He stated that those trailers
were limited to certain parks due to size.
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 5:30 P.M.
COMMISSION MEMBER POPE-LUDLAM RETURNED AT 5:31 P.M.
Kenneth J. Henderson, Executive Director, Development Department, indicated that the
building of new parks would be considered throughout the conversion program.
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Brooks London, De Anza/London Group, explained the process used to detenn ine the starting
point for the conversion program. He stated that the DeAnza/London Group would bring back a list
of groups for the start of the conversion process in approximately 90 days.
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Commission Member Hernandez made a motion, seconded by Commission Member
Oberhelman, that the following motions be approved and adopted:
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MOTION A: That the Community Development Commission authorize Phase II of the
existing Consultant Agreement with the De Anza/London Group pertaining to
the development and implementation of a Mobile Home Park Conversion
Program and authorize the Chainnan and Executive Director to execute any
documents necessary to effectuate said transaction.
MOTION B: That the Community Development Commission authorize De Anza/London
Group to undertake all activities appropriate and necessary for the fonnaI
development of a Mobile Home Park Conversion Program for all Phase I
category Mobile Home Parks.
MOTION C: That the Community Development Commission authorize De Anza/London to
undertake all activities necessary and appropriate for the fonnaI development
of a mobile home park infrastructure and on-site Mobile Home Rehabilitation
Program.
MOTION D: That the Community Development Commission authorize De Anza/London
Group to undertake all activities necessary and appropriate for the fonnaI
development of a Mobile Home Park Site Re-use and Resident Relocation
Program.
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Mel Porter, Citizen, asked the Commission to support staffs recommendation and to aIso
consider building new parks within the City.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
END OF CONSENT CALENDAR
13. CIVIL ENGINEERING SERVICES. STATE CONSOLIDATED OFFICES &
CAL TRANS BUILDING
(Communitv Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Miller,
to- authorize the Executive Director to draft and execute a contract with Ludwig Engineering in an
amount not to exceed $120,000 for civil engineering services for the design of the State Consolidated
Offices and CaItrans Building on the Government Center site, that the Agency's FY 93/94 adopted
budget be increased by $120,000 for such services and, further, that the Executive Director be
authorized to execute such other documents as are required to carry out the tenns of said contract.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
14. PRECONSTRUCTION COST ESTIMATION SERVICES - STATE CONSOLIDATED
OFFICES AND CALTRANS BUILDING
(Communitv Development Commission)
Commission Member Miller made a motion, seconded by Commission Member Negrete, to
authorize the Executive Director to draft and execute a contract with Swinerton & Walberg in an
amount not to exceed $70,000 for preconstruction cost estimation and value engineering services for
the design of the State Consolidated Offices and Caltrans Building on the Govemment Center site;
further, that the Agency's adopted budget be increased by $70,000 for such services and that the
Executive Director be authorized to execute such other docwnents as are required to carry out the
tenns of said contract.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that no local
flnns from San Bemardino had submitted bids for this project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
15.
PUBLIC SPACE PLANNING-STATE CONSOLIDATED OFFICES AND CALTRANS
BUILDING
(Community Development Commission)
Commission Member Obethelman made a motion, seconded by Commission Member Miller,
to authorize the Executive Director to draft and execute a contract and other necessary documents with
Project for Public Spaces in an amount not to exceed $75,000 for public space planning for the design
of the State Consolidated Offices and Caltrans Building on the Government Center site, and allocate
funds in support of the contract.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that Project
for Public Spaces had been retained on several occasions by the Agency to complete work.. He stated
that the Agency would be reimbursed the funds used for the space planning by the state.
Jeff Wright, P. O. lJox 2341, San Bernardino, CA, expressed concern regarding the amount of
funds being spent for the public's benefit.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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DECEMBER 20, 1993
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Arency Administration
16. ADJUSTED WORK WEEK SCHEDULE
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(Community Development Commission)
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Stafford W. Parker, Deputy Director, Development Department, discussed the pilot 9/80
program used by the Economic Development Agency. He stated that the start-up period of the
program included infonning the public of the Agency's new office hours.
Mr. Parker explained that the major benefits accomplished by the 9/80 program was the
convenience for citizens to obtain assistance after 4:30 pm., and also meeting the AQMD Standards.
He discussed the requirements mandated by the AQMD.
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin,
to approve a continuous synchronized "9180" adjusted work week schedule for the Economic
Development Agency and authorize the Agency Administrator to make all necessary adjustments to
coordinate and synchronize staffing work schedules in the event the City adopts a pilot or pennanent
9/80 schedule.
Timothy C. Steinhaus, Administrator, Economic Development Agency, said that the Agency
would comply with the action taken by the City regarding its 9/80 schedule.
Commission Member Obemelman made a substitute motion, seconded by Commission
Member Devlin, to approve a continuous synchronized "9/80" adjusted work week schedule for the
Economic Development Agency and authorize the Agency Administrator to make all necessary
adjustments to coordinate and synchronize staff work schedules in the event the City adopts a pilot
9/80 schedule for a period of six months.
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Commission Member Miller expressed concern regarding the City closing on altemate Fridays.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: Commission Member Miller. Abstain: None.
Absent: None.
17. SALVATION ARMY PAYEE PROGRAM
(Community Development Commission)
(Councilwoman Pope-Ludlam's Recommendation)
Commission Member Oberhelman made a motion, seconded by Commission Member Curlin,
to continue this item until a funding source could be detennined.
Carolyn Carter, Salvation Anny, explained the Salvation Anny Payee Program established in
April 1992. She indicated that applicants must have shelter in order to qualify for this program. ~
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Commission Member Hernandez felt that since the Salvation Anny assists individuals with
maintaining a place to live, the program should qualify for 20% set-aside funds.
Timothy Sabo, Special Counsel, Sabo and Green, stated that in order to qualify for the 20%
set-aside funds, staff must show how the program provides housing.
The Commission took no action on the previous motion to continue.
After comments were made by Ms. Carter and Mr. Sabo, a new motion was made.
Commission Member Hernandez made a motion, seconded by Commission Member
Oberhelman, that the item be continued to January 10, 1994; and that the Economic Development
Agency Administrator be directed to meet with the attorney to detennine whether the program
provides shelter and with that fact that the program be funded with 20% set aside funds.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 6:02 P.M.
Development Department
18.
DELINOUENT NOTES AND DEVELOPMENT AGREEMENTS IN DEFAULT
(Communitv Development Commission)
(Councilman Oberhelman's Recommendation)
Kenneth J. Henderson, Executive Director, Development Department, stated that the list
included in the staff report showed all agreements the value of same. He said that a vast majority of
the delinquencies were for housing assistance.
COMMISSION MEMBER HERNANDEZ RETURNED AT 6:03 P.M.
Mr. Henderson explained that the Agency held approximately $15,175,000 in loan guarantees
which were currently perfonning well.
Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, that the report made by Kenneth J. Henderson, Executive Director, Development
Department, be received and filed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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19. CALIFORNIA INN SRO
(Communitv Development Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez, to refer this item to the Housing Committee.
Commission Member Obemelman commented on the item being referred to various
committees.
Dennis Barlow, Senior Assistant City Attorney, stated that there must be a specific reason for
the item to be referred to another committee.
Commission Member Hernandez stated that the item should be referred to the Housing
Committee to allow Committee Members to meet with the consultants who provided the Market
Analysis.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed his concern regarding building
an SRO in San Bernardino.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None.
Absent: None.
RS-l. AMENDMENT OF MOBILE HOME PARK RENT STABILIZATION ORDINANCE
(Mayor and Common Council)
Councilman Hernandez's Recommendation
Councilman Hernandez discussed the urgency of this item. He felt the amendment to the
ordinance should be made immediately for the benefit of the mobilehome owners.
Councilman Obemelman made a motion, seconded by Councilman Hernandez, to direct the
City Attorney's Office to prepare an amendment to the Mobile Home Park Rent Stabilization
ordinance which requires mobile home parks to infonn the mobile home board within twenty-four (24)
hours of any new rental agreement signed in the park.
Discussion ensued regarding the ability of staff to follow-up on this ordinance.
Councilman Hernandez expressed concern regarding mobilehome owners not being aware of
the 72 hour cancellation period when signing long-tenn leases with park owners.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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DECEMBER 20, 1993
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RS-2. FREEWAY HOME CENTER
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to approve a $2.5 million dollar loan guarantee to Allan Steward, Inc., for the purchase and
development of the Freeway Home Center project subject to review and approval of Allan Steward's
financial capacity, approval by the Community Development Commission of an Owner Participation
Agreement and close of escrow within ninety (90) days of Commission approval. Further, that staff
be authorized to pay to the Resolution Trust Corporation (RTC) a deposit in the amount of $85,000
with only 75% of such deposit ($63,750) to be repaid by Allan Steward, Inc., to the Agency in the
event escrow fails to close.
Kenneth J. Henderson, Executive Director, Development Department, explained that there
were two motions for this item. The first motion was to approve a loan guarantee, and the second
motion was to approve an actual loan for Allan Steward of Steward and Associates. He stated that if
Motion B was approved, the Agency would obtain a loan and then reloan those funds to Mr. Steward.
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L would prefer giving Mr. Steward the loan guarantee.
Commission Member Oberhelman expressed concern regarding the lack of infonnation
provided for this project. He stated that there was not enough fundamental infonnation to make a
decision.
Commission Member Pope-Ludlam indicated that this item was thoroughly discussed at the
Redevelopment Committee Meeting.
Commission Member Hernandez discussed the urgency of this item indicating that a deposit
must be made for the property by December 22, 1993.
Timothy Sabo, Special Counsel, Sabo and Green, explained the item and stated that Mr.
Steward would guarantee 25% of the loan. He said if the direct loan was made, Mr. Steward would
be responsible for 100% of the loan if escrow was not closed. He indicated that $25,000 was the
most at risk if this item was approved.
Mr. Steinhaus stated that the item had been reviewed by the Agency's fmancial consultant.
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Allan Steward, Steward and Associates, explained that he had been working on this project for
over a year. He stated that the Agency would receive 25% of the profits gained by the project. He
anticipated a 80% lease-up within a year.
Discussion ensued regarding the Agency's projections for the project versus the projections of
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DECEMBER 20, 1993
Mr. Steward.
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Commission Member Pope-Ludlam spoke on Mr. Stewards progress within the City on various
projects.
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Commission Member Hemandez recommended the Commission adjourn to Closed Session to
discuss this item.
Dennis A. Barlow, Senior Assistant City Attomey, reminded the Commission that it must
discuss real property in Closed Session.
Commission Member Oberhelman reitemted his concerns regarding the project. He felt the
worse case scenario would be that the Agency would own a shopping center.
Phil Harrison, Steward and Associates, commented on the benefit of this project for San
Bernardino and the freeway entmnce. He indicated that the Resolution Trust Corpomtion (RTC) was
not interested in this property.
Chainnan Minor made remarks regarding the funds being used for tenant improvements.
COMMISSION MEMBER MILLER WAS EXCUSED AT 6:48 P.M.
Mr. Steinhaus confmned that $800,000 would be used for tenant improvements. He stated
that the Agency would control the $800,000 approving all costs spent.
COMMISSION MEMBER MILLER RETURNED AT 6:49 P.M.
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Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez, to approve a $2.5 million dollar loan guarantee to Allan Steward, Inc., for the purchase
and development of the Freeway Home Center project subject to review and approval of Allan
Steward's financial capacity, approval by the Community Development Commission of an Owner
Participation Agreement and close of escrow within ninety (90) days of Commission approval.
Further, that staff be authorized to pay to the Resolution Trust Corpomtion (RTC) a deposit in the
amount of $85,000 with only 75% of such deposit ($63,750) to be repaid by Allan Steward, Inc., to
the Agency in the event escrow fails to close.
Kenneth J. Henderson, Executive Director, Development Department, indicated that it was the
desire of Mr. Steward to have both motions approved in the event his loan is not approved.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain:
None. Absent: None
RS-4 AD JOURNMENT
At 6:56 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, January 3, 1994 at 11:00 a.m., in the Council Chambers of
City Hall, 300 North "D" Street, San Bernardino, California.
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Respectfully submitted:
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KENNETHJ.H NDERSON
Executive Director!
Secretary to the Commission
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MA YOR AND COMMON COUNCIL
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
ADJOURNED REGULAR MEETING
January 10, 1994
11:00 a.m.
The Adjourned Regular Meeting of the Mayor and Common Council and the Community
Development Commission was held in the Council Chmnbers, City Hall, 300 North "0" Street, San
Bemardino, California and called to order by Mayor Tom Minor at approximately 4:03 pm., on
Monday, January 10, 1994 .
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David OberlIelman; Jerry Devlin;
Valerie Pope-Ludlmn; and Norine Miller. Absent: None.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; David Edgar, Housing Division Manager,
Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde,
Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City
Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the City not
being represented by a Council Member at the SANBAG Meeting. He stated that if the Mayor was
unable to attend, a representative should have attended in his absence.
Mr. Wright also addressed the issue of a waste center being proposed for the City of Loma
Linda. He read a statement printed in The Sun Newspaper which highlighted the medical concerns of
a waste center and felt the City should be concerned also.
REGULAR MEETING
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COMMISSION MINUTES
January 10, 1994
1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
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(Community Development Commission)
Commission Member Hernandez questioned why the Salvation Anny Payee Program was not _
placed on the Agenda as indicated in the minutes.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he met with
representatives of the Salvation Anny and Mr. Sabo, and that they were stilI trying to detennine an
appropriate funding source for this project.
Discussion ensued regarding the appropriate reason for pulling minutes off the consent
calendar.
Commission Member Oberllelman commented on the two (2) motions listed on Item 17 -
Salvation Anny Payee Program, and questioned why there was only one vote count.
Commission Member Oberllelman made a motion, seconded by Commission Member Negrete,
that the minutes for the meeting of December 20, 1993, be continued until January 24, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Development Department
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2. FY 1993/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
AGREEMENT BETWEEN THE CITY AND FRAZEE COMMUNITY CENTER
(Mayor and Common Council)
Council Member Hernandez made a motion, seconded by Council Member Oberllelman, that
the following resolution be approved and adopted:
RESOLUTION NUMBER 93-10
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND FRAZEE COMMUNITY CENTER.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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COMMISSION MINUTES
January 10, 1994
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END OF CONSENT CALENDAR
3.
TRAFFIC IMPACT ANALYSIS STATE CONSOLIDATED OFFICES AND CALTRANS
BUILDING
(Community Development Commission)
Commission Member Pope-Ludlmn made a moHon, seconded by Commission Member Miller,
to authorize the Executive Director to develop and execute a contract with Crain and Associates in an
mnount not to exceed $67,850 for the preparation of a traffic impact analysis for the State
Consolidated Offices and Caltrans building on the government center site; and further, that the
Agency's adopted budget be increased by $67,850 for such services and the Executive Director be
authorized to execute all other documents required to carry out the tenns of the contract.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the
Hernandez Group, who was selected to complete the street improvements, was not as qualified as
Crain and Associates in traffic studies. He explained that Crain and Associates had a much better
understanding of traffic concerns related to the superblock project.
Kenneth J. Henderson, Executive Director, Development Department, indicated that out of the
seven (7) responses to the RFP, Crain and Associates was selected because they met all requirements.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
r- Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
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4. AD HOC COMMITTEE. GOVERNMENT CENTER
(Communitv Development Commission)
(Chairman Minor's Recommendation)
Commission Member Miller made a motion, seconded by Commission Member Oberhelman,
to fonn an Ad Hoc Committee comprised of COWlcilmembers Negrete, Miller and Oberhelman for the
pmpose of reviewing design concepts for the State Consolidated Offices and Caltrans Building 011 the
Government Center site. (No vote taken.)
Commission Member Pope-Ludlam expressed concern regarding the State Consolidated
Offices and Caltrans Building Project. She stated that although the Redevelopment Committee was
the designated overseer of the project, it has not been involved with the selection process. She
recommended that the Redevelopment Committee act as the Ad Hoc Committee for this project.
Commission Member Miller stated that the Ad Hoc Committee had the sam e concerns as the
Commission regarding the participation of local vendors.
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3
COMMISSION MINUTES
January 10, 1994
Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission
on previous actions taken in relation to the State Consolidated Offices and Caltrans Building. He ,.,
discussed the establishment of the Qualifications Review Committee. He explained that the Ad Hoc
Committee being requested would only handle architectural matters.
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Commission Member Hernandez recommended that all Commission Members should be part
of the structural design phase of the buildings.
Commission Member Negrete made a substitute motion, seconded by Commission Member
Curlin, that the Redevelopment Committee review the design concepts for the State Consolidated
Offices and Caltrans Building on the Government Center site.
Dennis Barlow, Senior Assistant City Attorney, noted that although the Redevelopment
Committee would be meeting only to review the design concepts for the buildings, only three
Commission Members would be allowed to attend the Redevelopment Committee Meetings.
Commission Member Oberhelman requested all final decisions be brought before the full
Commission.
,
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain:
None. Absent: None.
5.
CONTINUED FROM NOVEMBER 1. 1993
ARROW VISTA HOUSING DEVELOPMENT PROJECT
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(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, explained that the
Commission previously considered this item in November, 1993. He stated that the matter was
continued for 60 days to allow the developer to provide additional infonnation regarding the sales
activity and escrows of the Arrow Vista Homes.
Mr. Henderson stated that the staff report contained infonnation from Continental Escrow
regarding current escrows and carry over escrows. He said that additional infonnation that staff
believed was pertinent to this item was also contained in the staff report.
Timothy C. Steinhaus, Administrator, Economic Development Agency, said that staff received
the infonnation from Mr. John Dukes, Dukes-Dukes and Associates, late Tuesday afternoon, and has
not had sufficient time to verify those escrows listed. He requested this item be continued for two (2)
weeks for staff to complete this task.
Commission Member Oberhelman commented on the previous actions taken by the
Commission regarding the Arrow Vista Homes. He indicated that he visited the housing tract and saw
no activity of interested home buyers or an open sales office.
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COMMISSION MINUTES
January 10, 1994
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Mr. Steinhaus reiterated the need to have two (2) weeks to verify the accuracy of the
infonn ation obtained from Mr. Dukes.
Mr. Henderson indicated that the main objective of the 24-hour security service retained for
the Housing Project, is to provide security in the evening when the majority of the vandalism occurs.
He stated that significant funds were spent to repair the homes before the security service was
instituted. He also emphasized the costs incurred by the Agency to maintain the homes.
Commission Member Miller made remarks on the previous Agency assistance to Mr. Dukes.
She questioned the actions of the Agency, if the Development Agreement was cancelled.
Mr. Henderson stated that the Agency would retain a marketing company to sell the standing
inventory .
Commission Member Miller made a motion, seconded by Commission Member Oberhelman,
that the Development Agreement be tenninated.
Commission Member Hernandez indicated that there were apparently some homes in escrow.
He recommended the Commission allow the Agency two (2) weeks to verify those escrows.
Commission Member Pope-Ludlam expressed concern regarding the Agency's inability to
verify the escrows before the Commission Meeting.
John Dukes, Dukes-Dukes and Associates, briefed the Commission on his procedures for
".... placing homes in escrow. He explained that over 50% of the interested buyers had previous credit
!
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Commission Member Curlin questioned the peocentage of escrows that could possibly be
closed.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:06 P.M.
Mr. Dukes felt that it was possible for 70% - 80% of the escrows to close.
COMMISSION MEMBER OBERHELMAN RETURNED AT 5:07 P.M.
Mr. Dukes recommended the Agency be given the two (2) week extension to verify the
escrows.
Commission Member Curlin questioned the viability of this project.
COMMISSION MEMBER HERNANDEZ EXCUSED AT 5:10 P.M.
COMMISSION MEMBER HERNANDEZ RETURNED AT 5:11 P.M.
Discussion ensued regarding the entire historical background of this project.
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REGULAR MEETING
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COMMISSION MINUTES
January 10, 1994
COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 5:12 P.M.
COMMISSION MEMBER POPE.LUDLAM RETURNED AT 5:14 P.M. ~
Commission Member Oberllelman reviewed the time, money and technical assistance given to
Mr. Dukes over the past year. He spoke on funds being tied-up in this project and not being available .......J
for other uses.
Commission Member Hernandez discussed the efforts of Mr. Clyde Alexander to build homes
in the blighted area. He felt that it would be more difficult for an outsider to sell the homes instead
of Mr. Dukes.
COMMISSION MEMBER MILLER WAS EXCUSED AT 5:20 P.M.
Commission Member Pope-Ludlam commented on Mr. Dukes plans to repay the SBA lien.
COMMISSION MEMBER MILLER RETURNED AT 5:25 P.M.
Jeff Wright, P. O. Box 2341, San Bernardino, advised the Commission not become involved in
real estate activities.
Commission Member Hernandez spoke 011 Mr. Dukes efforts to help citizens that live in that
area. He again requested the Commission allow staff the two (2) week extension.
The motion carried by the following vote: Ayes: Commission Members Curlin; Oberllelman;
Devlin; Miller. Noes: Negrete; Hernandez; Pope-Ludlam. Abstain: None. Absent: None.
COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 5:27 P.M.
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All'ency Administration
CONTINUED FROM DECEMBER 6.1993
6. ROGER'S BINDERY
(Community Development Commission)
Commission Member Negrete made a motion, seconded by Commission Member Oberllelman,
to continue the matter relating to Roger's Bindery to January 24, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberllelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Commission
Member Pope-Ludlam.
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REGULAR MEETING
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COMMISSION MINUTES
January 10, 1994
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LOCAL PREFERENCE CRITERIA
(Communitv Development Commission)
(Councilman Hernandez's Recommendation)
Dennis Barlow, Senior Assistant City Attorney, stated that he had drafted two oIdinances
based on requests received from the Mayor's Office and from the Downtown Business Association.
Mr. Barlow gave a brief background regaIding local preference oIdinances indicating that the
City Attorney's Office had some concerns about this type of ordinance.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 5:44 P.M.
Commission Member Oberhelman commented on a local preference oIdinance used by the
County and recommended the City Attorney's Office discuss this item with County Council.
Commission Member Curlin requested this item be continued to allow the Commission
sufficient time to review both oIdinances.
Commission Member Oberhelman made a motion, seconded by Commission Member Miller,
to continue the item until January 24, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete;
Oberhelman; Devlin; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent:
Commission Member Curlin; Pope-Ludlam.
COMMISSION MEMBER CURLIN RETURNED AT 5:46 P.M.
8. PUBLIC COMMENTS AT CITY COUNCIL/COMMISSION MEETINGS
(Communitv Development Commission)
(Councilman Curlin's Recommendation)
Commission Member Curlin described his proposal for decreasing the time limit allotted for
public comments.
Jeff Wright, P. O. Box 2341, San Bernardino, felt that this proposal would be an assault on
the first am endment and also the Brown Act. He spoke on the need for the public to be allowed to
voice its concerns on City business indicated that three (3) minutes was not a sufficient amount of
time.
COMMISSION MEMBER NEGRETE WAS EXCUSED AT 5:53 P.M.
COMMISSION MEMBER NEGRETE RETURNED AT 5:54 P.M.
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7
COMMISSION MINUTES
January 10, 1994
Commission Member Curlin stated that after the three (3) minute time limit, the speaker would
have the opportunity to request a two (2) minute extension. --,
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin,
to amend the existing five-minute public comments time limit on Council/Commission agenda to three ......J
minutes.
The motion failed by the following vote: Ayes: Commission Members Negrete; Curlin;
Pope-Ludlam. Noes: Commission Members Hernandez; ObeIhelman; Devlin; Miller. Abstain:
None. Absent: None.
Discussion ensued regarding the need to allow the public am pie time to voice their concerns.
Commission Member ObeIhelman made a motion, seconded by Commission Member Negrete,
to amend the existing five-minute public comments time limit on Council/Commission agenda to three
minutes; agenda items limited to three minutes, with possible extension of time of two minutes.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIhelman; Devlin; Pope-Ludlam. Noes: Commission Member Miller. Abstain:
None. Absent: None.
RS-l. PURCHASE OF CELLULAR PHONES
(Communitv Development Commission)
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(Councilman Hernandez's Recommendation)
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Commission Member Hernandez spoke on the unlimited amount of phone calls received in the
Council Office. He expressed a necessity on behalf of the Commission Members to have cellular
phones to be able to return or receive calls as needed.
Commission Member Devlin commented on the $550 dollar allowance given to Commission
Members for expenses. He believed that amount could be used for cellular phones.
Commission Member ObeIhelman commented that he uses his allowance for payment on his
cellular phone.
Dennis Barlow, Senior Assistant City Attorney, explained that the Agency should not pay the
total costs for the phone bills since calls will be both Agency and City related.
Commission Member Curlin expressed concern regarding the difficulty separating Agency and
City calls.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to pun;hase Cellular Phones for Commission Members.
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COMMISSION MINUTES
January 10, 1994
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The motion failed by the following vote: Ayes: Commission Members Negrete; Hemandez;
Pope-Ludlam. Noes: Commission Members ObeIhelman; Devlin; Miller. Abstain: Commission
Member Curlin. Absent: None.
CONTINUED FROM NOVEMBER 1. 1993
5. ARROW VISTA HOUSING DEVELOPMENT PROJECT
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Curlin to
reconsider this item.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain:
None. Absent: None.
Commission Member Curlin stated that he believes the two (2) week extension may prove
beneficial for Mr. Dukes.
Commission Member Curlin made a motion, seconded by Commission Member Hernandez, to
continue this item for two weeks.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain:
None. Absent: None.
Chainnan Minor requested that Mr. Dukes assist the Agency with its efforts to verify the
escrows.
Vivian Nash Dukes, Dukes-Dukes and Associates, asked for clarification regarding the two
week extension.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the two
week extension would be used to verify the individuals in escrow, their deposits, income, and financial
situations.
Discussion ensued regarding escrow procedures.
CLOSED SESSION
REGULAR MEETING
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COMMISSION MINUTES
January 10, 1994
RS-2. ADJOURNED TO CLOSED SESSION
At 6:37 pm., the Mayor and Common COWlcil and CommWlity Development Commission
recessed to Closed Session for the following:
B. to confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(b)(1), as there is significant exposure to litigation;
C. to confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(c), so that the Commission may decide whether to initiate litigation;
END OF CLOSED SESSION
RS-3. ADJOURNMENT
At 7:00 pm., the meeting of the Mayor and Common COWlcil/Community Development
Commission was adjourned to Monday, January 24, 1994 at 11:00 am., in the Council Chambers of
City Hall, 300 North "0" Street, San Bernardino, California.
Respectfully submitted:
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KENNETHJ.H~NDERSON
Executive Directorl
Secretary to the Commission
REGULAR MEETING
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COMMISSION MINUTES
January 10, 1994
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MAYORANDCOMMONCOUNca
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
MINUTES
JOINT ADJOURNED REGULAR MEETING
January 24, 1994
11:00 a.m.
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 3:26 pm., on Monday, January 24, 1994, in the Council Chambers, City Hall, 300
North "D" Street, San Bernardino, California.
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberllelman; Jerry Devlin;
Valerie Pope-Ludlam; Norine Miller. Absent: None
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; David Edgar, Housing Division Manager, Development
Department; James Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Shauna
Clark, City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Roger Hardgrave,
Director of Public Worlcs; Rachel Clark, City Clerlc; Melanie Vale, Deputy City Clerlc; La Vonda M-
Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper.
CLOSED SESSION
11. ADJOURN TO CLOSED SESSION
At 3:27 pm., the Mayor and Common Council and the Community Development Commission
adjourned to closed session to discuss the following:
B. to confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(b )(1), as there is significant exposure to litigation;
C.
to confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(c), so that the Commission may decide whether to initiate litigation;
JOINT REGULAR MEETING
KJH:lmp:cminIJ2
COMMISSION MINUTES
JANUARY 24, 1994
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MEETING RECONVENED
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At 4:50 pm., the meeting of the Mayor and Common COWIcil and the CommWIity
Development Commission was reconvened.
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ROLL CALL
Roll call was taken with the following members present: Chaionan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin;
Valerie Pope-Ludlam; Norine Miller. Absent: None
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; David Edgar, Housing Division Manager, Development
Department; James Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Shauna
Clark, City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Roger Hardgrave,
Director of Public WoIks; Rachel Clark, City CleIk; Melanie Vale, Deputy City CleIk; La Vonda M-
Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Timothy Sabo, Special COWIsel, Sabo and Green; Richard Brooks, The SWI Newspaper.
ANNOUNCEMENT -.
Chaionan Minor annoWIced that during the Closed Session deliberations, a possible agreement ....;i
had been reached regarding Item #10 - Arrow Vista Housing Development Project. He stated that the
item would be continued WItil the agreement was complete.
PUBLIC COMMENTS NOT ON THE AGENDA
Jerry Gilbert, 3393 Del Rey, San Bernardino, CA, commented on the morning session of the
meeting and stated that he and several college students sympathized with the Commission in dealing
with certain members of the public. He concurred with the Commission's efforts to limit the public
speaking time to three (3) minutes.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, commented on the public's inability to
obtain infonnation regarding Closed Session items.
Commission Member Curlin thanked Mr. Gilbert for his comments and emphasized that the
time limit restrictions would Dot infringe a persons right to speak.
CONSENT CALENDAR
The Commission Members requested that items numbered "4" and "6", be removed from the
Consent Calendar.
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COMMISSION MINUTES
JANUARY 24,1994
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Commission Member Oberhelman made a motion, seconded by Commission Member Curlin,
.... that the Consent Calendar items nwnbered "1" through "6" be adopted except for items numbered "4"
and "6", respectively.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
1. JOINT POWERS FINANCING AUTHORITY
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete,
that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, February
21, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
CONTINUED FROM JANUARY 10. 1994
2. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Curlin,
that the minutes of the Community Development Commission of the City of San Bernardino for the
meetings of December 20, 1993 be approved as submitted in typewritten foan.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
3. REDEVELOPMENT COMMITTEE MINUTES
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Curlin,
that the minutes of the Redevelopment Committee of the City of San Bernardino for the meetings of
December 9, 1993 and January 6, 1994 be received and filed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
JOINT REGULAR MEETING
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COMMISSION MINUTES
JANUARY 24, 1994
Development Department
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5. HOUSING DIVISION OUARTERLY ACTIVITY REPORT
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(Community Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member Curlin,
to receive and file the attached Housing Division Quarterly Activity Report for the months of October,
November and December 1993.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
Public Works Department
4. ADVERTISE FOR BIDS. INST ALLA TION OF LANDSCAPING IN MEDIAN IN
HIGHLAND A VENUE
(Community Development Commission)
Commission Member Devlin asked if the City of Highland would pay its fair share for this
project.
....
Roger Hardgrave, Director of Public WOIks, stated that Highland had not committed at this
time. He explained that a draft agreement was sent to Highland, but no response has been received.
....
Jeff Wright, P. O. Box 2341, San Bernardino, had questions regarding Caltrans and Wal-Mart's
fair share portion of this project.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the
funds provided for this project were tax allocation bond proceeds. He stated that the City agreed to
pay up to $800,000 for this project.
Commission Member Obemelman made a motion, seconded by Commission Member Miller,
that the plans for installation of landscaping in the median in Highland Avenue, from Piedmont Drive
to Boulder Avenue, in accordance with Plan No. 9044, be approved, and the Director of Public
WOIks/City Engineer be authorized to advertise for bids.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Obemelman; Devlin; Pope-Ludlmn; Miller. Noes: Commission Member Hernandez. Abstain: None.
Absent: None.
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KJH:lmp:cmlnlJ2
.4.
COMMISSION MINUTES
JANUARY 24, 1994
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6. MACY/BLAKE SEWER PROJECT
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(Mayor and Common Council)
Jeff Wright, P. O. Box 2341, San Bernardino, asked if the residents would have to pay sewer
hook-up fees for this project.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
that the following resolution be approved and adopted:
RESOLUTION NUMBER 94.20
RESOLUTION OF TIlE MAYOR AND COMMON COUNCIL OF TIlE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING TIlE EXECUTION OF A
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN
TIlE CITY OF SAN BERNARDINO AND TIlE COUNTY OF SAN BERNARDINO.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that this item
was for sewer repair only. There would be no new sewer line installed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
r- None.
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END OF CONSENT CALENDAR
Ae-ency Administration
CONTmUEDFROMIANUARYILl~4
7. LOCAL BID PREFERENCE CRITERIA
(Mavor and Common Council)
(Communitv DevelQpment Commission)
Commission Member Miller made a motion, seconded by Commission Member Negrete, to
continue the matter of Local Bid Preference Criteria to February 7, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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JOINT REGULAR MEETING
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COMMISSION MINUTES
JANUARY 24, 1994
Public Works Department
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8. HANDICAPPED RAMPS - VARIOUS LOCATIONS
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(Mavor and Common Council)
Commission Member Hemandez made a motion, seconded by Commission Member
Oberhelman, that the following resolution be approved and adopted:
RESOLUTION NUMBER 94-21
RESOLUTION OF THE CITY OF SAN BERNARDINO RESCINDING RESOLUTION 93-
360 AWARDING A CONTRACT TO B-1 ENTERPRISE CORPORATION; AND
AWARDING A CONTRACT TO WEST COAST CONSTRUCTION FOR INSTALLATION
OF HANDICAPPED RAMPS AT VARIOUS LOCATIONS.
Roger Hardgrave, Director of Public Works, explained past problems in dealing with B-1
Enterprise on this project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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9.
CONTINUED FROM DECEMBER 20.1993
SALVATION ARMY SUBSTITUTE PAYEE PROGRAM
.......
(Mayor and Common Council)
Councilman Hernandez made a motion, seconded by Councilman Oberhelman, that the
following resolutions be approved and adopted:
RESOLUTION NUMBER 94-22
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING THE SALVATION ARMY EMERGENCY SHELTER
PROGRAM; AND AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT
BETWEEN THE CITY AND THE SALVATION ARMY SAN BERNARDINO CORPS., TO
BE DRAFfED IN CONFORMANCE WITH THE ATTACHED STAFF REPORT.
RESOLUTION NUMBER 94-23
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE A FIRST AMENDMENT TO
THE CDBG FRAZEE COMMUNITY CENTER PUBLIC SERVICES AGREEMENT BY
AND BETWEEN THE CITY AND FRAZEE COMMUNITY CENTER.
IIlIIIII
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JOINT REGULAR MEETING
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COMMISSION MINUTES
JANUARY 24, 1994
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Kenneth J. Henderson, Executive Director, Development Department, explained that the
Community Development Block Grant (CDBG) funds taken from Frazee for the Salvation Anny
would be replaced by Home Program funds. He said that since Frazee is a HOME Program
Community Housing Development Organization (ClIDO) Project, it would qualify for those funds.
Timothy Sabo, Special Counsel, Sabo and Green, indicated that this transaction was legal. He
stated that after discussions with the Salvation Anny regarding its program, it was deteunined that
CDBG funds were the only funds applicable for use.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Devlin; Pope-Ludlam; MiHer. Noes: None. Abstain: None. Absent:
None.
Development Department
CONTINUED FROM .JANUARY 10. 1994
10. ARROW VISTA HOUSING DEVELOPMENT PRO.JECT
(Community Development Commission)
Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam,
that this item be continued to February 7, 1994.
,..... The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
I Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Obethelman. Abstain: None.
...., Absent: None.
12. AD.JOURNMENT
At 5:13 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, February 7, 1994 at 11:00 am., in the Council Chambers of
City Hall, 300 North "D" Street, San Bernardino, California.
RespectfuHy submitted:
KENN~~lNDERSON
Executive Directorl
Secretary to the Commission
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COMMISSION MINUTES
JANUARY 24, 1994
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MAYOR AND COMMON COUNCIL
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
February 7, 1994
11:00 a.m.
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was held in the Council Chambers, City Hall, 300 North "D" Street, San Bemardino,
California and called to order by Mayor Tom Minor at approximately 12:26 pm., on Monday,
February 7, 1994 .
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin;
Valerie Pope-Ludlam; and Norine Miller. Absent: None.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; John Hoeger, Project Manager, Development
Department; Emily Wong, Project Manager, Development Department; Laura Muna-Landa,
Development Specialist, Development Department; Shauna Clark, City Administrator; Fred Wilson,
Assistant City Administrator, Roger Hardgrave, Director of Public Wotks; Dennis Barlow, Senior
Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive
Assistant to the Council; Rachel Clark, City Cletk; Suzanna Cordova, Deputy City Cletk; La Vonda
M-Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Steve Davies, Project for Public Spaces; Fred Kent, Project for Public Spaces; Richard Brooks,
The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
11. DOWNTOWN PLAN - LUNCHEON WORKSHOP - MIC ROOM
(Commun,tv Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, introduced Project for
Public Spaces, summarized the actions taken since the Downtown Plan was adopted and described the
need for updating the plan. He described the l'enderings displayed in the mom.
REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
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Fred Kent, Project for Public Spaces, discussed the projects that had already been implemented
since 1992.
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Steve Davies, Project for Public Spaces, showed slides of San Bernardino, both past and
present in comparison with other cities. He discussed ways to improve the sites downtown in
conjunction with the State Consolidated Offices and Caltrans Building.
COMMISSION MEMBER MILLER WAS EXCUSED AT 12:35 P.M.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 12:50 P.M.
Mr. Davies discussed possible locations for a Perfonning Arts Center and the California fun
Single Room Occupancy (SRO) project.
Commission Member Hernandez expressed concern regarding the proposed SRO being
removed from its present site.
Mr. Kent explained that PPS felt an SRO would be better suited if located off of the main
thoroughfare in downtown. He recommended it be placed in a more residential location.
Commission Member Pope-Ludlam questioned the location of a baseball stadium in the City.
Mr. Kent stated that it is possible to locate a stadium in the downtown area.
Discussion ensued regarding the locating of a small scale IMAX Theater in San Bernardino.
Commission Member Pope-Ludlam discussed the complaints received by citizens regarding the
diagonal parking on "E" Street.
Mr. Kent explained that in order to draw attention to the downtown area, traffic would need to
slow down. Mr. Kent also addressed the need to have the signage project completed for the
downtown area.
The luncheon wotkshop was recessed until 2:00 pm.
MEETING RECONVENED
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was reconvened by Mayor Tom Minor at approximately 3:32 pm., on Monday, February
7, 1994 .
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David OberlIelman; Jerry Devlin;
Valerie Pope-Ludlam; and Norine Miller. Absent: None.
REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
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ST AFF PRESENT
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Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney;
Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council;
Rachel Clark, City Clerlc; Suzanna Cordova, Deputy City Clerlc; La Vonda M-Pearson, Recording
Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Warner Hodgen, Citizen, discussed and read portions from a letter written by him and
submitted to the Mayor and Common Council dated February 7, 1994, regarding the Mayor's
comments on a proposed Baseball Stadium to be located in San Bernardino.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the time limit
placed on citizens addressing the Commission for public comments and agenda items. He
recommended the Commission repeal its prior action approving the time limit until the Council made
a decision on its request for same.
r-' The Commission Members requested items numbered "2", "4", "5" and "6" be removed from
l the Consent Calendar.
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Commission Member Obemelman made a motion, seconded by Commission Member
Hernandez, that the Consent Calendar items numbered "I" through "6" be adopted except for items
numbered "2", "4", "5" and "6", respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Communitv Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member
Hernandez, that the minutes of the Community Development Commission of the City of San
Bernardino for the meetings of January 10, 1994 and January 24, 1994 be approved as submitted in
typewritten foOD.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
,.... None.
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COMMISSION MINUTES
February 7, 1994
3. INTERCEPTOR SEWER AT BLAKE STREET AND MACY STREET
(Mayor and Common Conncil)
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Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, that the following resolution be approved and adopted:
RESOLUTION NUMBER 94-28
RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO
STANLEY F. YELICH, INC., FOR MODIFICATION OF INTERCEPTING SEWER AT
BLAKE STREET AND MACY STREET.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Public Works
2. TRAFFIC DIVERTERS IN HIGHLAND/ARDEN AREA
(Communitv Development Commission)
Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the amount of
funds spent in the Arden Guthrie Project Area.
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Commission Member Oberhelman made a motion, seconded by Commission Member Miller,
that the following resolution be approved and adopted:
RESOLUTION NUMBER 5388
RESOLUTION OF TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE CITY
OF SAN BERNARDINO A WARDING A CONTRACT TO LAIRD CONSTRUCTION
COMPANY, INC., FOR INSTALLATION OF LANDSCAPE IMPROVEMENTS ON
NEWCOMB, MCKINLEY AND DUMBARTON STREETS, BETWEEN TWENTIETH
STREET AND HIGHLAND AVENUE.
Commission Member Oberhelman made a motion, seconded by Commission Member Pope-
Ludlam, to authorize staff to develop and issue a pun;hase order to East Valley Water District in the
amount of $137,000 which provides for the location of eight (8) fire hydrants required as a result of
the proposed Arden Guthrie Street closures.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
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4.
EMPLOYEE COMPUTER PURCHASE PROGRAM
lCommnnitv Development Commission)
Commission Member ObeIbelman asked if the computers purchased by Agency employees
would be comparable to Agency computers.
Kenneth J. Henderson, Executive Director, Development Department, explained that the
computers purchased by Agency employees would be comparable to Agency computers.
Commission Member Hernandez made a motion, seconded by Commission Member Curlin, to
approve and adopt a Employee Computer Purchase Program for Economic Development Agency
Employees and increase the FY 93/94 EDA budget by $135,000.
Commission Member Pope-Ludlam indicated that during the Redevelopment Committee
meeting, it was discussed that the Agency receive bids for this program.
Mr. Henderson explained that a presentation was made at the Committee meeting from
Professional Computing, a local computer consulting finn. He stated that staff visited the site of the
finn and recommended the item remain the same.
Mr. Henderson briefed the Commission on the purchase program procedures stating that
r payments would be made to the Agency by its employees on a semi-monthly basis through payroll
I deductions.
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Discussion ensued regarding the City's participation in such a plan.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; ObeIbelman; Miller. Noes: Commission Members Devlin; Pope-Ludlam. Abstain:
None. Absent: None.
5. 1994-1995 COMMUNITY DEVELOPMENT BLOCK GRANT lCDBG) PROGRAM MIX
AND PROGRAM OBJECTIVES
lMavor and Common Council)
Councilman Hernandez questioned the budget for this program and also the program
management costs.
Kenneth J. Henderson, Executive Director, Development Department, discussed those items
paid for out of these funds.
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Councilman ObeIbelman expressed concern regarding the funds needed to support the
program. He questioned whether or not the program was justifiable.
REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
Timothy C. Steinhaus, Administrator, Economic Development Agency, reiterated the cost and
the need for the program stating that he would provide the Council with a breakdown of all funds
connected to this program.
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Mr. Steinhaus indicated that the Agency was requesting approval of this item in order to
receive applications from individuals for the upcoming 1994/1995 CDBG program year.
Councilwoman Miller made a mOlion, seconded by Councilman Negrete, to approve the 1994-
1995 CDBG Program Mix and Program Objectives, and authorize staff to solicit applications for the
1994-1995 funding cycle.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman Devlin. Abstain: None. Absent:
None.
CONTINUED FROM .JANUARY 24. 1994
6. ARROW VISTA STANDING INVENTORY
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin,
to tenninate the development agreement.
The motion failed by the following vote: Ayes: Commission Members Obedlelman; Devlin; J..........
Miller. Noes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Abstain: None. ".
Absent: None.
Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that staff
attempted to develop a tennination agreement between the developer and the Agency but was
unsuccessful.
Commission Member Oberhelman made a substitute motion, seconded by Commission
Member Devlin, to file a breach of contract and request the development agreement be tenninated.
(No vote taken)
Discussion ensued regarding the agreement approved at the last week between the developer
and the Agency. Commission Member Hernandez requested copies of that agreement.
Commission Member Pope-Ludlam made a substitute motion, seconded by Commission
Member Negrete, to continue the matter regarding the Arrow Vista Standing Inventory to February 21,
1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Oberhelman; Devlin. Abslain:
None. Absent: None.
REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
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END OF CONSENT CALENDAR
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RECESSED MEETING
At 4:18 pm. Chainnan Minor recessed the meeting of the Mayor and Common Council and
the Community Development Commission for ten (10) minutes.
MEETING RECONV~NED
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was reconvened by Mayor Tom Minor at approximately 4:32 pm., on Monday, February
7, 1994 .
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberllelman; Jerry Devlin;
Valerie Pope-Ludlam; and Norine Miller. Absent: None.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney;
Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council;
r Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording
! Secretary, Development Department.
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OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
Mayor Minor explained that due to the number of individuals present to speak on certain items
of the agenda, the remainder of the agenda would be taken out of sequence.
10. SAN BERNARDINO CIVIC LIGHT OPERA - CALIFORNIA THEATRE
(Community DevelQpment Commission)
Chainnan Minor gave a brief ovelView of the previous actions related to the Civic Light
Opera. He spoke of actions necessary in order to resolve the delinquent CLO loan. He stated that the
Commission could forgive the loan, purchase the CLO, make the loan a grant or proceed with
foreclosure. He recommended the Commission elect to purchase the California Theatre from the
CLO.
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COMMISSION MINUTES
February 7, 1994
Keith Stava, General Manager, CLO, indicated that the CLO would like to sell the theatre to
the Agency.
Commission Member Curlin asked how the foreclosure would affect the operations of the
CLO.
Mr. Stava explained that all of the CLO assets were tied up in the theatre. If the Commission
elected to foreclose on the building, the CLO would have nothing left. He stated that the CLO was
more then willing to sell the theatre.
Mr. Stava stated that the CLO had invested approximately $750,000 in capital improvements
in the theatre.
Commission Member Miller voiced her concern regarding loaning the CLO funds for its
operations and the CLO still not peIfonning.
Mr. Stava discussed necessities needed in the building such as fire sprinklers in various areas
and also things needed in order to eliminate the debt of the theatre.
Warner Hodgdon, Citizen, emphasized how the theatre was an important part of the City. He
offered his services to the City in assisting with the development of a plan for the CLO.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:58 P.M.
COMMISSION MEMBER CURLIN RETURNED AT 4:59 P.M.
Commission Member Oberhelman discussed ways to resolve the CLO delinquent loan.
Commission Member Oberhelman made a motion, seconded by Commission Member Miller,
to leave the foreclosure action in place, continue this item until the first meeting in March, and to
authorize the Chainnan to appoint an Ad Hoc Committee to initiate negotiations with the CLO.
(No vote taken)
Sam Catalano, Carousel Mall, spoke of previous actions dealing with the California Theatre.
Evlyn Wilcox, Board of Directors, CLO, discussed the need of the CLO to sell an asset,
appraised at $700,000.
Steven Brown, 1231 Michigan Street, Grand Terrace, discussed his employment with the CLO
and the importance of keeping the theatre open.
Scott Lane, 448 South Eureka, San Bernardino, indicated the necessity to act quickly on this
item so that the CLO would not lose any additional capital.
Mr. Stava stated that each day that the CLO is closed causes more difficulties. He explained
that although it has shows scheduled each month, it has postponed its spring session due to the lack of
funding.
REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
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Dr. Chuck Terrell, San Bernardino Schools, recommended that the motion read be amended to
suspend the foreclosure pending the report from the Ad Hoc Committee. He offered various solutions
to the concerns voiced by the Commission Members and offered his services to assist them as needed.
Commission Member Hernandez recommended a neutral committee operate the CLO in the
event the Agency purchases the property.
Commission Member Pope-Ludlam reitemted on the need to preserve the California Theatre.
She recommended the Commission act quickly on this item and also that an audit be conducted of the
CLO.
Chaiunan Minor requested the Commission to authorize him to negotiate the sale of the CLO
to the Agency for $500,000 minus the $100,000 currently owed to the Agency. He explained that the
funds used to purchase the CLO could be taken from the $1 million set-aside for the Petfouning Arts
Center.
Commission Member Miller explained that the CLO could never become as established as an
Petfouning Art Center due to its size.
Jeff Wright, P. O. Box 2341, San Bernardino, California, recommended that benefit concerts
be held at the CLO to raise funds for support.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 5:39 P.M.
COMMISSION MEMBER HERNANDEZ RETURNED AT 5:43 P.M.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin,
to select an auditor to review the books of the CLO, and to deteunine the actions needed to re-open
the theatre for the spring session.
The motion failed by the following vote: Ayes: Commission Members Curlin; Pope-Ludlam;
Devlin. Noes: Commission Members Negrete; Hernandez; ObeIhelman; Miller. Abstain: None.
Absent: None.
Discussion ensued regarding the need and assignment for the Ad Hoc Committee.
Commission Member Negrete recommended that the item be brought back on March 7, 1994,
if nothing could be accomplished by February 21, 1994.
Commission Member ObeIhelman made a motion, seconded by Commission Member Miller,
to receive and file the attached correspondence from the San Bernardino Civic Light Opera
Association; that the foreclosure proceedings be suspended; that the matter be continued to February
21, 1994 with the option to continue to March 7, 1994; that the Mayor appoint an Ad Hoc Committee
consisting of members of the Community Development Commission, members of the Civic Light
Opera Executive Board and members of the community independent of the Community Development
Commission and Civic Light Opem; and that negotiations be initiated with the Civic Light Opera.
REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
~::~~m:~~eVlin; Pope-Ludlam; Miller. Noes: Commission Member Curlin. Abstain: None. 1
Chainnan Minor appointed Commission Member Negrete and Commission Member Miller to ...,.,
sit on the Ad Hoc Committee.
RECESSED MEETING
At 6:02 pm. Chainnan Minor recessed the meeting of the Mayor and Common Council and
the Community Development Commission for ten (lO) minutes.
MEETING RECONVENED
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was reconvened by Mayor Tom Minor at approximately 6:12 pm., on Monday, February
7, 1994 .
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin;
Valerie Pope-Ludlam; and Norine Miller. Absent: None.
ST AFF PRESENT
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Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney;
Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council;
Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording
Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
RS-l. SAN BERNARDINO BASEBALL STADIUM
(Mavor and Common Council)
(Community Development Commission)
Mayor Minor stated that in lieu of additional infonnation just received regarding the baseball
stadium, he would like to continue the item until February 21, 1994.
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REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
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Commission Member Hemandez made a motion, seconded by Commission Member Devlin, to
"",... continue this item until February 21, 1994.
.... The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Curlin.
Absent: None.
8. FREEW A Y HOME CENTER
(Communitv Development Commission)
(Redevelopment Committee Recommendation)
Kenneth J. Henderson, Executive Director, Development Department, stated that on December
20, 1993, the Commission took action directing staff to work with Steward and Associates for the
purchase of the Freeway Home Center. He explained that staff and Mr. Gene Wood, Consultant, had
attempted to assist Steward and Associates in obtaining a loan guarantee for the $2.5 million, but due
to insufficient cash flow, low occupancy factor and non fee simple property, a loan guarantee could
not be acquired.
Mr. Henderson stated that the RTC had agreed to offer Ofinancing to Mr. Steward, Steward
and Associates, for the purchase of this property. He indicated that the Agency would not have to
guarantee the RTC loan, only the portion of funds provided by Mr. Steward.
,....... Timothy C. Steinhaus, Administrator, Economic Development Agency, again explained that
the loan from RTC was just learned by staff earlier that morning. He indicated that if the loan does
""- not close prior to February 28, 1994, it would cost $50,000 to extend the escrow.
Al Steward, Steward and Associates, emphasized that the Agency would only have to
guarantee the 20% down payment required for the loan. He indicated he would like for the
Commission to approve the fODD motion in the event a problem arose with the RTC loan.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 6:20 P.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 6:21 P.M.
Mr. Henderson explained that if the Commission wished to approve a pass-through loan to Mr.
Steward, it could be done in connection with the fODD motion on the agenda.
Discussion ensued regarding the loan teDDs for RTC and the Agency.
Commission Member Devlin made a motion, seconded by Commission Member Oberllelman,
to continue this item until February 21, 1994.
The motion failed by the following vote: Ayes: Commission Members Oberllelman; Devlin;
Miller. Noes: Commission Members Negrete; Curlin; Hemandez; Pope-Ludlam. Abstain: None.
Absent: None.
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REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
Mr. Steinhaus indicated that staff would like to explore the option of the RTC loan before
obtaining a pass through loan for Mr. Steward.
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Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez, to authorize and direct staff to submit a $2.5 million loan application to a private lender
for the pwpose of reloaning such loan proceeds to Allan Steward, Inc., with the wlderstanding that the
loan application submitted by staff will make up only the difference between the acquisition price of
$2.5 million and the RTC financing with all of the above subject to review and approval of Allan
Steward's financial capacity, approval by the Community Development Commission of an Owner
Participation Agreement, execution of a personal guarantee by Allan Steward, and authorize staff to
submit $50,000 to extend escrow and Allan Steward would personally guarantee payment of that
money.
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COMMISSION MEMBER MILLER WAS EXCUSED AT 6:34 P.M.
Mr. Steward explained that he would prefer to have both the above motion and the fOOO
motion listed on the Agenda approved in the event he experiences difficulty with the RTC loan.
COMMISSION MEMBER MILLER RETURNED AT 6:36 P.M.
Mr. Steinhaus indicated that staff could bring this item back to the Commission on February
21, 1994, in the event the RTC loan was not approved.
Gene Wood, E. H. Wood and Associates, explained that his only involvement with this item
was attempting to find loan guarantee financing for Mr. Steward. He gave comments on his personal ...
opinion regarding this type of a loan.
Mr. Steward briefed the Commission on various project that he brought to the City of San
Bernardino.
WIIIJJfJIIII
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain:
None. Absent: None.
CONTINUED FROM .JANUARY 24.1994
7. LOCAL BID PREFERE~CE
(Mayor and Common Council)
(Communitv Development Commission)
Mayor Minor explained that due to the length of the meeting, an individual who was present
to speak to this item had to leave. He requested this item be continued to the next meeting.
Commission Member Obemelman made a motion, seconded by Commission Member Negrete,
that this item be continued to February 21, 1994.
REGULAR MEETING
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COMMISSION MINUTES
February 7, 1994
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The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Curlin.
Absent: None.
9. U. S. BANKRUPTCY COURT RETENTION COMMITTEE
(Community Development Commission)
(Redevelopment Committee Recommendation)
Discussion ensued regarding suggestions for the Bankruptcy Court Retention Committee.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez, to approve the attached list submitted by its Redevelopment Committee for the purpose of
establishing a U. S. Bankruptcy Court Retention Committee, with the deletion of Council Members
Hernandez & Pope-Ludlam, and that Council Members Devlin and Miller be added.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
CLOSED SESSION
12. ADJOURN TO CLOSED SESSION
At 6:58 pm. the Mayor and Common Council and Community Development Commission
recessed to Closed Session for the following:
D. to give instruction to the Commission's negotiator on the purchase of property pursuant
to Government Code Section 54956.8. The real property which the negotiations
concern is generally located at: 402 North "0" Street:
END OF CLOSED SESSION
13. AD JOURNMENT
At 7:10 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, March 7, 1994 at 11:00 a.m., in the Council Chambers of City
Hall, 300 North "0" Street, San Bernardino, California. .
Respectfully submitted:
REGULAR MEETING
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February 7, 1994
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KENNETHJ.HENDERSON
Executive Director!
Secretary to the Commission
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13. ADJOURNMENT
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At 7:10 pm., the meeting of the Mayor and Common Council/Community Development
'-- Commission wa~ adjourned to Monday, March 7, 1994 at 11:00 am., in the Council Chambers of City
Hall, 300 North "D" Street, San Bernardino, California.
Respectfully submitted:
b4A1
KENNETHJ.H NDERSON
Executive Director!
Secretary to the Commission
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MAYOR AND COMMON COUNCn.
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
MINUTES
JOINT REGULAR MEETING
February 21, 1994
11:00 a.m.
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 11 :29 a.m., on Monday, February 21, 1994, in the Council Chambers, City Hall, 300 North
"D" Street, San Bernardino, California.
ROLLCALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Norine Miller. Absent: Dr.
F. J. Curlin; Valerie Pope-Ludlam.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; David Edgar, Housing Division Manager, Development
Department; John Hoeger, Project Manager, Development Department; Dennis Barlow, Senior Assistant City
Attorney; Fred Wilson, Assistant City Administrator; Ray Salvador, Administrative Assistant; Mayor's
Office; Lorraine Velarde, Executive Assistant to the Mayor; Sandra Medina, Administrative Operations
Supervisor n, City Clerk's Office; Diane Jones, Deputy City Clerk; La V onda M-Pearson, Recording
Secretary, Development Department.
OTHERS IN ATTENDANCE
Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper.
PUBLIC COMMENTS NOT ON THE AGENDA
Jeff Wright, P. O. Box 2341, San Bernardino, CA, requested the Commission set its time limitations
on public comments back to five (5) minutes, consistent with that of the Council.
Mr. Wright also commented on a pothole located in front of the County Law Library. He
recommended the hole be repaired before the City is faced with a liability suit.
Mr. Wright ended his comments informing the public of a Base Restoration Meeting to be held on
March 9,1994 at 7:00 p.m..
COMMISSION MEMBER POPE.LUDLAM ARRIVED AT 11:30 A.M.
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Denis LaBine, Coordinator, 42nd Congressional District, Congress Candidate, informed the
Commission and Citizens that he would like to make himself available to answer any questions regarding the
base closure.
CONSENT CALENDAR
The Commission Members requested that items numbered "2", "4", "5" and "6", be removed from
the Consent Calendar.
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that
the Consent Calendar items numbered "1" through "6" be adopted, except for items numbered"2", "4", "5"
and "6", respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
1. JOINT POWERS FINANCING AUTHORITY
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin. that
the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, March 21, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
3. REDEVELOPMENT COMMITTEE MINUTES
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin. that
the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of January 19,
1994 be received and filed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
2. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community Develo,pment Commission)
Warner Hodgdon, Citizen, indicated that the statement he read at the meeting of February 7,1994,
was from a letter he wrote to the Mayor dated February 7, 1994 and not from The Sun Newspaper as
indicated in the minutes.
Commission Member Oberhelman indicated that Commission Member Miller's vote was
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inadvertently left off of Item Number 6 on Page 6.
Commission Member Hernandez made a motion, seconded by Commission Member Miller, that the
minutes of the Community Development Commission of the City of San Bernardino for the meeting of
February 7, 1994, be approved as amended.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
Development Department
4. PROPOSED TRAFFIC MODELER POSITION
(Community DevelQpment Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to
approve funding of the proposed Traffic Modeler Position in the Traffic Engineering Division of the Public
Works Department in an annual amount not to exceed $26,000. Further, that the FY 93194 Economic
Development Agency Budget be increased accordingly.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, asked for the job description for a Traffic
Modeler.
Kenneth J. Henderson, Executive Director, Development Department, explained that this item was
submitted by the Traffic Engineering Division for this position. He stated that the individual would establish
a traffic and circulation impact model for San Bernardino which would be updated annually.
Dennis A. Barlow, Senior Assistant City Attorney, explained that the funds requested could be used
for the purpose of financing for this position.
The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman;
Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent:
Commission Member Curlin.
5. APPLICATION FOR FEDERAL EMERGENCY SHRLTER GRANT
PROGRAM lESGP) FUNDING FOR FY 1994-1995
~or and Common Council)
Council Member Oberhelman made a motion, seconded by Council Member Hernandez, to approve
submittal of the attached Department of Housing and Urban Development (OOD) application for $89,000 in
FY 1994-95 Emergency Shelter Grant Program (ESGP) Assistance funds and authorize the Mayor and City
Clerk to then execute any documents necessary to effectuate receipt of said funds.
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; Kenneth J. Henderson, Executive Director, Development Department, indicated that the staff report
'" listed the proposed uses for this project. He explained that the service providers would be selected through
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an RFP process and that final funding approval would be approved by the Council.
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The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Council Member Curlin.
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Agency Administration
6. AMENDMENT TO THE AGENCY'S CONFLICT OF INTEREST CODE RELATIVE TO
THE REQUIREMENT FOR FILING STATEMENT OF ECONOMIC INTEREST FORMS
(Community DevelQpment Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Miller, that the
following resolution be approved and adopted:
RESOLUTION NUMBER 5389
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO, AMENDING RESOLUTION NO. 4420 (AS AMENDED BY
RESOLUTION NOS. 4852, 5048, 5057 AND 5356) ENTITLED, IN PART, "RESOLUTION. . . .
ADOPTING A CONFLICT OF INTEREST CODE. . .", BY AMENDING APPENDIX "AIf TO
ADD THE REQUIREMENT THAT CONSULTANTS TO THE ECONOMIC DEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO MUST FILE STATEMENTS OF
ECONOMIC INTEREST. --.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was ..."
prepared at the request of the City Clerk's Office in order to expand the resolution to include consultants.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
END OF CONSENT CALENDAR
Development Department
CONTINUED FROM FEBRUARY 7.1994
7. SAN BERNARDINO BASEBALL STADIUM
(l\1ayor and Common Councm
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, stated that the Commission
conducted a workshop where a report was received from the Baseball Stadium Ad Hoc Committee selected to
work on this project. He discussed a memorandum received from the Mayor's Office regarding other cities ....
approach to building baseball stadiums.
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Mayor Minor indicated that the Council must first consider if it would like to build a stadium.
Jim Wehmeier, General Manager, Spirit Baseball, explained that the ownership of the team is very
interested in staying in San Bernardino. He explained that they would be willing to discuss a longer term
lease with the City. He indicated that the team was not tied to a major league club.
COUNCILMAN OBERHELMAN WAS EXCUSED AT 11:51 A.M.
Councilman Hernandez expressed his concern about building a stadium in the City at this time. He
felt that the City had other priorities that needed to be attended to before the stadium.
COUNCILMAN OBERHELMAN RETURNED AT 11:52 A.M.
Mayor Minor believed that the stadium would be a means of attraction to the City. He indicated that
the stadium would not impact the general fund.
Mr. Wehmeier stated that the team owners would be willing to sign the lease extension before the
stadium was built to show its commitment to San Bernardino.
Superintendent Terrell, Past Chairman of the Baseball Committee, spoke on the commitment of the
committee members in search for a stadium location. He recommended that the City build a stadium that
could be used for both baseball and soccer.
Mr. Terrell commented on the Orange Show site being the best location to build the stadium. He
encouraged the Council to move ahead with this project indicating it would bring funding to the City through
other resources.
Larry Graham, Past President, Chamber of Commerce, stated that the Chamber supports the building
of a new stadium. He believed this could be part of the Rediscover San Bernardino efforts of the City. He
also believed that the stadium could bring funding to the City through hotels, restaurants, and other resources
within the City.
COMMISSION MEMBER MILLER WAS EXCUSED AT 12:04 P.M.
Councilwoman Pope-Ludlam expressed concern regarding the fmancing of this item.
The Council Members discussed the concept of a new stadium in the City.
COMMISSION MEMBER MILLER RETURNED AT 12:05 P.M.
Councilman Hernandez reitemted his concern regarding other needs in the City.
Jeff Wright, P. O. Box 2341, San Bernardino, believed that the City could build a multi-use facility
that could be used for a variety of activities.
Robert Castaneda, citizen. agreed with Councilman Hernandez. He felt the City had other priorities
that it should handle fllst before building a new stadium.
Jim Deskus, General Manager, Radisson Hotel, believed that the stadium would bring improvement
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to the City as well as businesses within the City.
Eddie Muir, Marlborough Homes, agreed that the baseball stadium would be an improvement for the
City and also a selling point when dealing with home sales.
A very Cates, citizen, indicated that San Bernardino could be a leader if it undertakes this project and
moves forward.
Ann Atkinson, 1335 "E"Street, San Bernardino, stated that the City should do anything that would
provide jobs and enhance the City. She said that this project could make San Bernardino a better place to
live.
Denis LaBine, Coordinator, 42nd Congressional District, Congressional Candidate, spoke on the
various changes taking place in San Bernardino including the closure of Norton Air Force Base. He advised
the Council to take advantage of the opportunity it has before them. He also commented on building the
stadium to be used for multiple purposes.
Councilman Negrete made a motion, seconded by Councilman Oberhelman, to approve a new
stadium concept.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
Mayor Minor recessed the meeting of the Mayor and Common Council and the Community
Development Commission until 2:30 p.m.
MEETING RECONVENED
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was reconvened by Mayor Tom Minor at
approximately 2:35 p.m.
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Ralph Hernandez; David Oberhelman; Valerie Pope-Ludlam; and Jerry Devlin.
Absent: Dr. F. J. Curlin; Norine Miller.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; David Edgar, Housing Division Manager, Development
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Department; John Hoeger, Project Manager, Development Department; Dennis Barlow, Senior Assistant City
Attorney; Fred Wilson, Assistant City Administrator; Ray Salvador, Administrative Assistant, Mayor's
Office Lorraine Velarde, Executive Assistant to the Mayor; Sandra Medina, Administrative Operations
Supervisor n, City Clerk's Office; Diane Jones, Deputy City Clerk; La V onda M-Pearson, Recording
Secretary. Development Department.
OTIlERS IN ATTENDANCE
Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper.
CONTINUED FROM FEBRUARY 7. 1994
7. SAN BERNARDINO BASEBALL STADIUM
(J\1ayor and Common Council)
(Community Development Commission)
Mayor Minor gave a brief overview on the discussion of this item during the morning session.
Councilman Hernandez indicated that the site would need to be determined before the financing.
COUNCILWOMAN MILLER ARRIVED AT 2:36 P.M.
Timothy Sabo, Special Counsel, Sabo and Green, discussed possible financing methods to pay for
the stadium. He explained that two or more methods could be used if the Commission desired.
Mr. Sabo indicated that off-season uses for the stadium could also be a means for funding the
stadium. He recommended the Commission complete further study on this item, stating that if a multi-use
facility is considered, they must determine the additional costs for that type of facility.
Discussion ensued regarding comments made by Mr. Sabo.
Lud Benson, Vice President, Local Carpenters Union, informed the Council that the Union has
previously assisted in funding projects such as baseball stadiums. He indicated that the Executive Director of
the union would be in town within a week, and he would like to meet with the Commission regarding his
assistance.
Commission Hernandez recommended hiring a consultant to view other stadium's and also the
possibility of building a multi-use facility.
Jeff Wright, P. O. Box 2341, San Bernardino, made comments regarding the stadiums location and
also the ownership of the stadium.
John Stephens, citizen, discussed the high crime rate in the City and also the costs to attend a
baseball game.
Warner Hodgdon, citizen, discussed his familiarity with ownership of multi-use facilities. He
expressed concern regarding the need to build a new stadium for the City as well as the Spirit.
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Commission Member Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to hire a
consultant to look at the feasibility of the stadium as a multi-use facility.
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Commission Member Pope-Ludlam recommended that a comprehensive plan of the City be reviewed
along with the location for the stadium.
Commission Member Hernandez stated that a comprehensive plan could be looked at and that the Ad
Hoc Committee should work with the consultants.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
Francine Wixen, Broker, gave a brief report to the Commission regarding the site location for the
facility. She recommended the Southern Pacific site located in the central city south portion of the City. She
felt it would be a major improvement to a blighted area.
Ms. Wixen stated that she owned property in that area near the railroad.
Scott Meam, Southern Pacific, extended his desire to work with the City in conjunction with this
project. He explained that Southern Pacific would be willing to enter into a long term lease or a purchase
plan to provide for this stadium.
(Community DevelQpment Commi4ision)
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8.
WELLS FARGO LINE OF CREDIT EXTENSION
Kenneth J. Henderson, Executive Director, Development Department. explained that this item had
been before the Commission on several occasions. He stated that the Line of Credit with Wells Fargo was
established in 1990 for the purpose of completing several projects. He indicated that there was currently a
balance of $800,000 available.
Commission Member Hernandez made a motion, seconded by Commission Member Devlin, to
authorize a one year extension of certain Lines of Credit with Wells Fargo Bank and authorize the execution
of said documents. (No vote taken)
Commission Member Oberhelman questioned the possibility of paying off Wells Fargo and
reopening a line of credit with another f'mancial institution.
Mr. Henderson stated that staff had discussed this possibility indicating that this would probably be
the last time the Agency would request a renewal.
Commission Member Oberhelman recommended the Agency see what other lending institutions had
available. He felt the market was very competitive and that the Agency could possibly obtain a better interest
rate than that with Well Fargo.
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to ]
continue Ibis item until March 7, direct slaff to determine the Dllllket, and to obtain a 30 day extensioo from i
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Wells Fargo if the market cannot be determined before the March 7, Commission Meeting.
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Mr. Henderson explained that the line of credit was used to fund projects such as the Westside Plaza,
Portugal and Neal and the HAB Land Development.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
9. STORAGE SPACE LEASE - 201 NORTH "E" STRRRT (INLAND EMPIRE SYMPHONY)
(Community Develqpment Commission)
Conunission Member Miller made a motion, seconded by Conunission Member Hernandez, to
authorize the Executive Director to draft and execute a lease and all other necessary documents with the
Inland Empire Symphony for the utilization of approximately 3,600 square feet of the old "Thrifty Building"
space, with said space to be utilized by the Symphony for storage purposes on the second floor of the 201
building.
Kenneth J. Henderson, Executive Director, Development Department, noted that the storage would
be on the "first floor" and not the "second floor" as indicated in the motion.
Commission Member Oberhelman questioned the $1 a year lease indicating that the documents to be
r stored were possibly revenue producing documents.
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Library. She stated that the documents needed to be organized and categorized before they could become
revenue producing.
Jeff Wright, P. O. Box 2341, San Bernardino, conunented on the location where the files would be
stored. He questioned whether or not the condition of the location would cause damage to the files.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
10. OFFICE LEASE - 201 NORTH "E" STREET (SABO & GRRRN)
(Community Development Commission)
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Conunission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to
authorize the Executive Director to draft and execute a lease and all other necessary documents with Mr.
Timothy Sabo, of Sabo and Green, for the utilization of approximately 720 square feet of office space on the
second floor of the 201 Building.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhehnan; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
CONSTRUCTION CONTRACTSIBIDDING
11. CENTRAL POLICE STATION
(Community Development Commi4ision)
Commission Member Oberhelman made a motion. seconded by Commission Member Devlin, to
authorize the execution of a Construction Management contract with Millie and Severson, Incorporated, for
general contracting and construction management services in connection with the construction of the Central
Police Station; further, that the Commission authorize advertisement for Trade Contractor bids for
construction of the Station; further, that the Commission increase the Agency budget in an amount of
$369,714 for construction management services; and, further, that the Commission direct staff to prepare
financing documents for a Certificates of Participation issue to yield approximately $5,000,000 in
construction funds, and a Tax Allocation Bond issue in an amount necessary to provide for completion of
construction and furnishing of the Station.
Commission Member Hernandez questioned the rising cost of building a new police station.
COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 3:32 P.M.
Commission Member Miller discussed the costs needed to acquire the land for the police station.
COMMISSION MEMBER POPE-LUDLAM RETURNED AT 3:33 P.M.
Timothy C. Steinhaus, Administrator, Economic Development Agency, discussed the funding set-
aside for the police facility during the budget hearing. He indicated that the cost to build the new police
station, plus the land acquisition costs, would be approximately $14 million.
Mr. Henderson explained that the costs to demolish the existing police station would be included in
the State Building costs. He stated that since interest rates vary, fInal costs for the police station could not be
determined at this time.
Timothy Sabo, Special Counsel, Sabo and Green. indicated that a $14 million bond would cost about
2 112 times the face value of the bonds over a period of 25 - 30 years.
Mr. Henderson explained that a survey taken of similar facilities built in other areas showed the
estimated costs of the City's to be signifIcantly less than others.
Commission Member Negrete expressed a need to continue with this item while the market was
good.
Jeff Wright, P. O. Box 2341, San Bernardino, recommended the City have smaller multiple police
stations rather than one large station. He felt that this would help the offIcers reach their destinations quicker.
Chairman Minor explained that police officer are usually dispatched from the field and not from the
central station.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman;
Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent:
Commission Member Curlin.
CONTINUED FROM FEBRUARY 7.1994
12. ARROW VISTA STANDING INVENTORY
(Community Develqpment Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained the previous action
taken by the Commission regarding the Arrow Vista Housing Project. He discussed the agreement in
principal which was prepared and signed by both the Agency and the developer regarding the homes. He
emphasized that the agreement only addressed the standing inventory and not the other loans held by Mr.
Dukes from the Agency.
Kenneth J. Henderson. Executive Director, Development Department, briefed the Commission on all
the existing loans held by Mr. Dukes such as the business reorganization loan and the sewer capacity loan.
He indicated that the developer wanted to change the terms of the agreement and also be forgiven for the
sewer capacity loan. He also indicated that the developer wanted to delay the repayment of the business
reorganization loan until the reorganization of one of his other properties.
Commission Member Pope-Ludlam expressed concern regarding the agreement being modified after
it was reviewed in Closed Session by the Commission.
Mr. Henderson stated that the items added to the list were added by Mr. Dukes and not by the
~ Agency.
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Discussion ensued regarding the terms of the agreement presented and signed by Mr. Dukes.
Commission Member Devlin commented on the amount of forgiveness that the developer was
requesting.
Mr. Henderson discussed the new terms that Mr. DukeS was requesting from the Agency. He
reminded the Commission of its prior decision to give the developer the three models to allow him to increase
his cash flow.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:00 P.M
Commission Member Oberhelman questioned the timeframe when the restructuring of the developers
other property would be complete.
Mr. Henderson indicated that the restructuring of the property should be complete by the end of the
year.
COMMISSION MEMBER HERNANDEZ RETURNED AT 4:01 P.M.
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin. to
direct the counsel to take whatever appropriate legal action necessary, foreclosure or breach of contract, to
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terminate the development agreement between Dukes-Dukes and Associates and the Agency so that the
Agency could obtain total control of the project.
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Commission Member Pope-Ludlam questioned the agreement included in the staff report.
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Chairman Minor commented that the agreement listed was only an agreement in principal. He
explained that the agreement was suppose to be brought back before the Commission by January 31, 1994.
Dennis A. Barlow, Senior Assistant City Attorney, indicated that the agreement expired on its own
terms since no action was taken by January 31,1994.
Mr. Henderson reiterated the terms requested by the developer, stating that he would like to have
forgiveness of his loans. He indicated that late Friday afternoon, the developer sent a fax to the Agency
listing his new terms.
Commission Member Pope-Ludlam informed the Commission that the developer was not present
because he believed this item would be continued.
Commission Member Oberhelman felt that the developer had refused to accept the agreement in
principal which the Commission agreed upon.
Chairman Minor discussed the amount of time, effort and money that has been put into this project.
He recommended the Commission come to some type of resolution to this project.
The motion failed by the following vote: Ayes: Commission Members Oberhelman; Devlin; Miller.
Noes: Commission Members Negrete; Hernandez; Pope-Ludlam. Abstain: None. Absent: Commission
Member Curlin.
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13. CAMDEN DEVELOPMENT ASSISTANCE AGREEMENTS
(Community DeveIQJ)ment Commission)
Kenneth J. Henderson, Executive Director, Development Department, gave a brief overview of this
item and stated that it had been reviewed by the Agency Counsel and signed by the developer.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete, to
authorize the Executive Director to execute assistance agreements with Camden Development, Ltd., as
drafted by Agency Special Counsel; further that the Executive Director be authorized to execute such other
documents as are required to carry out the terms of the agreements and be authorized to make such non-
substantive corrections in the agreements as are approved by Agency Counsel; and further, that the Economic
Development Agency budget of 1993-1994 be amended to provide an additional $1,250,712 to be used for
assistance to the University Village Shopping Center development.
Mr. Henderson indicated that there were two additional motions that would need to be considered in
connection with this project listed in a memorandum submitted by the Public Works Department.
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Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete, that
the (1) Agreement with Camden Development be revised by interdelineation to delete the $125,000 for
installation of traffic signals at University Parkway and Varsity/State Street; and (2) authorization be granted
to reimburse Hughes Market for one-half (112) of the total project cost, for installation of traffic signals at
University Parkway and Varsity/State Street, up to the amount of $62,500, subject to acceptance of the traffic
signals by the Director of Public Works/City Engineer.
Chairman Minor asked if the property had been completely leased up.
Ari Miller, Camden Development, stated that he had four tenants and in negotiations with two
additional tenants.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent:
Commission Member Curlin.
CONTINUED FROM FEBRUARY 7, 1994
14. LOCAL BID PREFERENCE CRITERIA
(M~or and Common Council)
(Community Development Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this was a
joint item between the Agency and the City.
Fred Wilson, Assistant City Administrator, explained that his office had completed a detailed
analysis of both ordinances. He indicated that although staff was not recommending anything, they would
prefer the option similar to the County of San Bernardino. He stated that that option could be implemented
immediately.
Councilwoman Pope-Ludlam spoke on the pros and cons of local preference as stated to her by a
local businessperson.
Mayor Minor emphasized that the problem incurred by local businesses is that they can only bid on
projects located in their own cities.
Councilman Hernandez stated that the City should continue to take bids from other city vendors but
allow preference to the local vendor when they are both equally qualified.
Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to allow a 1 %
local preference criteria in the City.
Bill Yates, local businessman, 741 South Lugo, San Bernardino, stated that he opposed this issue.
He spoke on cities having a 1 % to a 3% preference. He indicated that if the City chose a preference of more
than 1 %, it could cause difficulty for businesses.
Mr. Yates gave the Commission various examples of how the preference criteria could cause
problems for businesses.
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Dennis A. Barlow, Senior Assistant City Attorney, stated that if the City chose to allow a 1 %
preference, the attorney's would need to bring back an ordinance to implement the change as mandated by the
City Charter.
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Discussion ensued regarding the control of local preference when using subcontractors. Councilman
Hernandez recommended informing contractors about the City's policy regarding the preference criteria.
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Councilman Oberhelman expressed concern regarding the contractors need to control costs at his
expense. He felt that the City could not tell the contractor who he can or cannot hire.
Councilman Oberhelman made a substitute motion, seconded by Councilman Devlin, that the local
preference criteria be utilized whenever possible.
Jeff Wright, P. O. Box 2341, San Bernardino, believed that the current market would make it
possible for local businesses to submit lower bids.
The motion failed by the following vote: Ayes: Council Members Oberhelman; Devlin; Miller.
Noes: Council Members Negrete; Hernandez; Pope-Ludlam. Abstain: None. Absent: Councilman Curlin.
Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to allow a 1%
local preference criteria in the City.
The motion failed by the following vote: Ayes: Council Members Negrete; Hernandez; Pope-
Ludlam. Noes: Council Members Oberhelman; Devlin; Miller. Abstain: None. Absent: Councilman
Curlin.
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15. CALIFORNIA INN SRO
(Community Development Commission)
Chairman Minor stated that this item would be discussed in Closed Session.
16. FREEWAY HOME CENTER
(Community Development Commission)
A lengthy discussion ensued regarding the need to discuss this item in closed session. It was
suggested that the item be brought up in closed session, and if the need was not present, the discussion on the
item would continue in the open forum.
CLOSED SESSION
17. ADJOURN TO CLOSED SESSION
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At 5: 11 p.m., the Mayor and Common Council and the Community Development
. Commission adjourned to Closed Session to discuss the following:
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A.
to confer with the attorney regarding pending litigation which has been initiated fonnally to
which the Commission is a party pursuant to Government Code Section 54956.9(a) as
follows:
B. to confer with the attorney regarding pending litigation pursuant to Government Code
Section 54956.9(b)(I), as there is significant exposure to litigation;
12. ADJOURNMENT
At 6: 16 p.m., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, March 7, 1994 at 11:00 a.m., in the Council Chambers of City Hall,
300 North "D" Street, San Bernardino, California.
Respectfully submitted:
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KENN THJ. NDERSON
Executive Director!
Secretary to the Commission
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MAYOR AND COMMON COUNCIL
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
March 7,1994
11:00 a.m.
The Regular Meeting of the Mayor and Common Council and the Community
Development Commission was held in the Council Chambers, City Hall, 300 North "D" Street,
San Bernardino, California and called to order by Mayor Tom Minor at approximately 3:40 p.m.,
on Monday, March 7, 1994.
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor;
Commission Members Edward Negrete; Dr. F.1. Curlin; Ralph Hernandez; David Oberhelman;
Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth 1.
Henderson, Executive Director, Development Department; Shauna Clark, City Administrator;
Fred Wilson, Assistant City Administrator; Jim Penman, City Attorney; Dennis Barlow, Senior
Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo,
Executive Assistant to the Council; Rachel Clark, City Clerk; Diane Jones, Deputy City Clerk; La
V onda M-Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
11. ADJOURN TO CLOSED SESSION
At 3:41 p.m., the Mayor and Common Council and Community Development Commission
recessed to Closed Session for the following:
D.
to give instruction to the Commission's negotiator on the purchase of property
pursuant to Government Code Section 54956.8. The real property which the
negotiations concern is generally located at: 300 North "E" Street.
REGULAR MEETING
KJH:lmp:cmin3rl
COMMISSION MINUTES
March 7, 1994
MEETING RECONVENED
The Regular Meeting of the Mayor and Common Council and the Community
Development Commission was held in the Council Chambers, City Hall, 300 North "D" Street,
San Bernardino, California and called to order by Mayor Tom Minor at approximately 4:00 p.m.,
on Monday, March 7, 1994.
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ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor;
Commission Members Edward Negrete; Dr. F.I. Curlin; Ralph Hernandez; David Oberhelman;
Jerry Devlin; and Valerie Pope-Ludlam. Absent: Commission Member Norine Miller.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth I.
Henderson, Executive Director, Development Department; Shauna Clark, City Administrator;
Fred Wilson, Assistant City Administrator, Jim Penman, City Attorney; Dennis Barlow, Senior
Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo,
Executive Assistant to the Council; Rachel Clark, City Clerk; Diane Jones, Deputy City Clerk; La
Vonda M-Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
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Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Bob Nelson, Star Route 11, Summit, California, expressed concern regarding the three (3)
minute time limit placed on citizens speaking at Commission meetings. He spoke of the
Commission trying to take away citizens' freedom of speech.
COMMISSION MEMBER HERNANDEZ WAS EXECUSED AT 4:02 PM
COMMISSION MEMBER MILLER ARRIVED AT 4:03 PM
Jeff Wright, P.O. Box 2341, San Bernardino, California, discussed Police Department's
use of Harley Davidson Motorcycles for patrolling the City. He also commented on the time limit
placed on citizens addressing the Commission for public comments and agenda items.
COMMISSION MEMBER HERNANDEZ RETURNED AT 4:04 PM
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 4:04 PM
The Commission Members requested items number "1" "2" "3" "4" "5" and "6" be
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removed from the Consent Calendar.
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Commission Member Devlin made a motion, seconded by Commission Member Miller,
that the Consent Calendar items numbered "1" through "7" be adopted except for items numbered
"1", "2", "3", "4", "5" and "6" respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Miller. Noes: None. Abstain: Commission Member Oberhelman; Absent:
Commission Member Pope-Ludlam.
7. YMCA YOUTH - TEEN CENTER PROJECT
(Mavor and Common Council)
Councilman Devlin made a motion, seconded by Councilwoman Miller, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 94-52
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN
BERNARDINO.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Miller. Noes: None. Abstain: Commission Member Oberhelman; Absent:
Commission Member Pope-Ludlam.
CLOSED SESSION
1. APPROVAL OF IMPLEMENTATION AMENDMENT WITH THE SAN
BERNARDINO COMMUNITY COLLEGE DISTRICT - MT VERNON
CORRIDOR
(Community Develooment Commission)
Commission Member Devlin made a motion, secnded by Commission Member Negrete,
that the following resolution be approved and adopted:
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RESOLUTION NUMBER 5390
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMISSION OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION
OF A CERTAIN IMPLEMENTATION AMENDMENT TO AGREEMENT WITH THE
SAN BERNARDINO COMMUNITY COLLEGE DISTRICT IN CONNECTION WITH
THE ADOPTION OF THE MT. VERNON CORRIDOR REDEVELOPMENT
PROJECT AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN
ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33401.
Timothy C. Steinhaus, Administrator, Econmic Development Agency, explained that the
documents for this item had been rewritten to provide better clarification.
COMMISISON MEMBER POPE-LUDLAM RETURNED AT 4:11 PM
Commission Member Hernandez questioned the financing for this item.
Mr. Steinhaus briefly explained the financing for the item, indicating that it would remain
the same.
Mr. Steinhaus explained that Valley College had agreed to share a percentage of the costs
for this project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
2. CALIFORNIA INN (SRO) - TERMINATION AGREEMENT
(Community Development Commission)
Commission Member Oberhelman requested an explanation be given regarding the amount
of funding being given to the developer for the termination of this project.
Kenneth 1. Henderson, Executive Director, Development Department, discussed the
original agreement between the Agency and the developer and the amount of personal funds
invested by the developer. He explained that staff and the developer were in agreement with the
terms in the termination agreement.
Commission Member Oberhelman commented on the summary documentation submitted
by the developer and questioned the interest rate on his loan.
Mr. Henderson stated that the loan rate was at prime plus three.
REGULAR MEETING
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March 7, 1994
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Commission Member Hernandez commented on the negative effect this project has had on
the developer. He indicated that if the project had succeeded, all invested funds from the City
would have been returned.
Discussion ensued regarding the legality of paying the developer with 20% set-aside
funds.
Timothy Sabo, Special Counsel, Sabo and Green, stated that the 20% set-aside funds
would be appropriate since the proposed project was a housing project.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to approve the attached Agreement terminating the existing Disposition and
Development Agreement between the Redevelopment Agency and Main Street Inn, A California
Limited Partnership (California Inn SRO).
Jeff Wright, P.O. Box 2341, San Bernardino, California, believed that funding the survey
for this project was not an obligation for building the project.
Commission Member Hernandez recommended the check for the developer be processed
immediately.
Jim Penman, City Attorney, commented on using 20% set-aside funds for this purpose. he
recommended that Agency use 80% funds instead.
Commission Member Hernandez made a substitute motion, seconded by Commission
Member Pope-Ludlam, to approve the attached Agreement terminating the existing Disposition
and Development AGreement between the Redevelopment Agency and Main Street Inn, A
Califonia Limited Partnership (California In SRO)~ and that any legal funding nethod be used as
the funding source, and that the check be issued immediately.
The motion carried by the following vote: Ayes: Commission Members Negrete~ Curlin;
Hernandez~ Pope-Ludlam. Noes: Commission Members Oberhelman~ Devlin~ Miller. Abstain:
None. Absent: None.
3. AWARD OF BID - COURT STREET PARKING LOT
(Mavor and Common Council)
Councilman Hernandez questioned the use of a benefit resolution for approval of this item.
He also questioned the type and cost of the improvements being made to the temporary parking
lot.
REGULAR MEETING
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March 7, 1994
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Kenneth J. Henderson, Executive Director, Development Department, emphasized that
although the improvements being made were temporary, there was no time limit as to how long
the temporary improvements would be used. He emphasized that the current temporary
improvements to the lot were made approximately 15 years ago.
Councilman Oberhelman concurred with Councilman Hernandez regarding the use of a
benefit resolution for this project.
Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, that
the following resolution be approved and adopted:
RESOLUTION NUMBER 94-53
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS
TO THE BENEFIT OF CERTAIN IMPROVEMENTS FOR THE STATE COLLEGE
REDEVELOPMENT PROJECT AREA. (to facilitate a transfer offunds from the State
College to the Central City Redevelopment Project regarding construction of Court Street
Parking Lot.)
The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez;
Pope-Ludlam; Miller. Noes: Council Members Curlin; Oberhelman; Devlin. Abstain: None.
Absent: None.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, that the following resolution be approved and adopted:
RESOLUTION NUMBER 5391
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, MAKING FINDINGS AND
DETERMINATIONS AS TO THE BENEFIT OF CERTAIN IMPROVEMENTS FOR
THE STATE COLLEGE REDEVELOPMENT PROJECT AREA. (to facilitate Court
Street Parking Lot.)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to award a bid in the amount of$271,575 to Larry Jacinto Construction for the
reconstruction of the Court Street Parking Lot, authorization of $52,250 for
engineering/inspection services and contingency, and allocate bond proceeds in an amount not-to-
exceed $323,825 for the foregoing.
The motion carried by the following vote: Ayes: Commission Members Negrete;
Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Curlin; Oberhelman; Devlin.
Abstain: None. Absent: None.
REGULAR MEETING
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March 7, 1994
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4. REDEVELOPMENT AGENCY LINE OF CREDIT
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(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, commented on the
Agency's efforts to obtain quotes from the other banks aside from Wells Fargo regarding the
Agency's Line of Credit. He explained that staffs findings were listed in the attached report.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to receive and file the attached staff report.
Commission Member Oberhelman expressed concern regarding the efforts made to pursue
the request of the commission to seek quotes from other banks.
Mr. Henderson explained that the Agency would be willing to check with banking firms
outside of the City ifhe desired.
Jeff Wright, P.O. Box 2341, San Bernardino, California, commented on the amount and
the use of the line of credit.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
".... None.
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5.
REVITALIZATION PLAN FOR THE 40TH STREET SHOPPING CENTER
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member
Miller, to authorize and direct the Executive Director to negotiate and execute an agreement for
professional services with Richard Pope and Associates for the development of a revitalization
plan for the 40th Street Shopping Center in an amount not-to-exceed $56,550.
Kenneth 1. Henderson, Executive Director, Development Department, explained the
process used to select the consultant team.
Jeff Wright, P.O. Box 2341, San Bernardino, expressed concern regarding the funds being
spent on this project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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March 7,1994
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6.
FISCAL YEAR 1994-95 HOME PROGRAM DESCRIPTION
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(Mavor and Common Council)
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Kenneth 1. Henderson, Executive Director, Development Department, gave a brief
description of the HOME Program.
Councilman Hernandez made a motion, seconded by Councilman Oberhelman, to approve
the attached Fiscal Year 1994-95 HOME Program Application and authorize the Mayor and
Executive Director to execute any documents necessary to effectuate the submittal of said
application in a timely manner.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
8. INLAND PLAZA REFINANCING - PUBLIC HEARING
(Mavor and Common Council)
OPEN PUBLIC HEARING
Kenneth 1. Henderson, Executive Director, Development Department, explained the
owner's request for assistance for this project. He indicated that the Committee recommended
assisting Inland Plaza.
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Councilman Devlin questioned Miller and Schroeder's involvement with this project.
Mr. Henderson stated that Miller and Schroeder was the Agency's bond underwriter and
would be utilized for this project.
CLOSE PUBLIC HEARING
Councilwoman Pope-Ludlam made a motion, seconded by Councilman Oberhelman to
close the public hearing.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to
approve an extension of the Inland Plaza Industrial Development bond due date from October 15,
1994 to October 15, 1994. ,.,
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The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman Devlin. Absent: None.
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to direct staff to pursue, with the assistance of Miller and Schroeder, an Industrial
Development Bond refinancing for Inland Plaza, which would not require a Redevelopment
Agency loan gurantee.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain:
None. Absent: None.
9. MOBILEHOME PARK CONVERSION PROGRAM
(Community Development Commission)
Brooks London, DeAnza London Group, explained that the mobilehome conversion
process would cost approximately $30,000 per park. He stated that they were currently budgeted
for four (4) parks.
r Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that staff
! would like to approach the conversion process slowly instead of all at once. He explained that
~ even if it was determined to complete the conversion process on all 11 parks, there was not
sufficient staff resouurces available to accomplish the simultaneous conversion of 11 parks.
Mr. London agreed with Mr. Steinhaus in approaching the conversion process slowly.
Commission Member Oberhelman made a motion, seconded by Commission Member
Miller, that the following motions be approved and adopted:
A. To receive and file the Mobilehome Park Conversion Report from DeAnza-
London dated March 2, 1994;
B. To approve implementation of the Mobilehome Park Conversion Program fro
selected Category I Parks, and authorize the utilization of approximately $120,000
in housing set-aside funds, for said purposes;
C. To authorize the Chairman and Executive Director to execute any documents
necessary to effectuate said implementation; and
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D.
To refer the issue of review of strategy implementation and funding for
Catergories II and ill to the Housing Committee for review and input.
REGULAR MEETING
KJH:lmp:cmin3rl
COMMISSION MINUTES
March 7, 1994
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COMMISSION MEMBER CURLIN WAS EXCUSED AT 5:19 PM
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Commission Member Hernandez expressed concern regarding parks feeling neglected. He
wanted to ensure that the conversion of parks would not become limited.
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Mr. Brooks confirmed that there would be no limits placed on the conversion of parks
within the City.
COMMISSION MEMBER CURLIN RETURNED AT 5:20 PM
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
RS-l. AGREEMENT WITH WATER COMMISSIONERS. COMMUNITY
DEVELOPMENT COMMISSION TO FUND 1/3 CONSULTING SERVICES
WITH SIMON AND COMPANY
(Community Develooment Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member
Devlin, that the following resolution be approved and adopted:
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RESOLUTION NUMBER 5392
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
AUTHORIZING THE EXECUTION OF AN AGREEMENT TO JOINTLY FUND
CONSULTING SERVICES BY AND BETWEEN THE CITY OF SAN
BERNARDINO, THE BOARD OF WATER COMMISSIONERS OF THE CITY OF
SAN BERNARDINO AND THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO AND SIMON AND COMPANY.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain:
None. Absent: None.
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March 7, 1994
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11. ADJOURNMENT
At 5:28 p.m., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, March 21, 1994 at 11:00 a.m., in the Council Chambers
of City Hall, 300 North "D" Street, San Bernardino, California.
Respectfully submitted:
~T~qIENDERSON
Executive Director/
Secretary to the Commission
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MAYOR AND COMMON COUNCn.
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
MINUTES
JOINT REGULAR MEETING
March 21, 1994
11:00 a.m.
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 3:05 p.m., on Monday, March 21, 1994, in the Council Chambers, City Hall, 300 North "D"
Street, San Bernardino, California.
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam;
Norine Miller. Absent: Dr. F. J. Curlin.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; James Penman, City Attorney; Dennis Barlow, Senior
Assistant City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive Assistant to the
Mayor; Roger Hardgrave, Director of Public Works; Rachel Clark, City Clerk; Suzanna Cordova, Deputy
City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
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Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper.
PUBLIC COMMENTS NOT ON THE AGENDA
Jeff Wright, P. O. Box 2341, San Bernardino, CA, stated that he would like to make comments
regarding the public comments time limit at Commission Meetings.
Mayor Minor informed Mr. Wright that the public comments item was on the Agenda and that he
could speak to the item when it was presented to the Commission.
COMMISSION MEMBER CURLIN ARRIVED AT 3:10 P.M.
Albert Martinez, P. O. Box 222, San Bernardino, asked if the Commission could answer questions
regarding items on the Agenda.
Mayor Minor explained to the public that public comments are only for items not on the Agenda.
JOINT REGULAR MEETING
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MARCH 21, 1994
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Bob Nelson, Citizen, expressed concern regarding the restrictions placed on individuals when
addressing the Commission. He spoke of the freedom of speech as protected in the Constitution.
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CONSENT CALENDAR
The Commission Members requested that items numbered "2", "3", "4", "5", "6", "7" and "8", be
removed from the Consent Calendar.
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez,
that the Consent Calendar items numbered "1" through "8" be adopted except for items numbered "2", "3",
"4", "5", "6", "7" and "8", respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
1. JOINT POWERS FINANCING AUTHORITY
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez,
that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, April 18, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
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2. COMMUNITY DEVELOPMENT COMMI..~SION MINUTES
. (Community Develqpment Commission)
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Jeff Wright, P. O. Box 2341, San Bernardino, stated Page 1 of the minutes under public comments
would read "County Law Library" instead of "County Library".
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez,
that the minutes of the Community Development Commission of the City of San Bernardino for the meetings
of February 21, 1994 be approved as amended.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
3. INSTALLATION OF LANDSCAPING IN W ATERMAN AVENUE AND HIGHLAND
AVENUE MEDIANS
(Community Develqpment Commission)
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Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding citizens being
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assessed to pay for medians that will benefit business owners.
Commission Member Hernandez questioned MBEIWBE on this project.
Roger Hardgrave, Director of Public Works, explained the process used in selecting the contractor
for this project. He indicated that there was no back-up included with this item that showed good-faith
efforts in abiding by the MBEIWBE.
Commission Member Hernandez stated that he would like to have this item continued until back-up
was provided which would include proof of compliance with MBEIWBE.
Commission Member Hernandez made a motion, seconded by Commission Member Curlin, that the
matter be continued to April 4, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Pope-Ludlam. Noes: Commission Members Devlin; Miller. Abstain: None.
Absent: None.
5. HOUSING DIVISION QUARTERLY ACTIVITY REPORT
(Community Development Commi~sion)
Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, to
receive and file the attached Housing Division Quarterly Activity Report for the months of October,
November and December 1993.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
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4. BETHLEHEM HOUSE
(Mayor and Common Council)
Councilman Oberhelman stated that the synopsis which reads "September 1994" should read
"September 1993"
Councilman Oberhelman made a motion, seconded by Councilman Hernandez, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 94-75
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND THE COUNTY OF SAN BERNARDINO.
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The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
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5. STANDARD MORTGAGE COMPANY. INC.. LOAN GUARANTEE
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(Community Develqpment Commission)
Kenneth J. Henderson, Executive Director, Development Department, explained that a new list of
properties to collateralize the loan guarantee for Standard Mortgage was submitted by Mr. SteUer and
distributed to the Commission Members.
Commission Member Oberhelman commented on the values placed on the properties listed in the
previous list submitted by Mr. Steiler. He felt that some of the values listed were very generous considering
todays market.
Commission Member Curlin questioned the Agency's position if the loan guarantee was approved.
Mr. Henderson discussed the terms of the loan and the risks that would be involved. He stated that
the Agency would be in second or third trust deed position.
Commission Member Oberhelman noted that there was no business plan attached to the back-up for
review which would indicate how the funds would be used.
Commission Member Curlin suggested that additional research be completed on this project before
requesting approval from the Commission.
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Commission Member Pope-Ludlam indicated that this item was discussed during the Redevelopment
Committee. She commented on the various amounts of loan guarantees completed by the Agency.
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Chairman Minor comment~on Standard Mortgage's. <i:ommitment to the City for over 35 years.
Richard W. Steiler, Standard Mortgage, explained the values given to the properties listed in the
back-up. He indicated that he had approximately three (3) offices in San Bernardino, and discussed the
downsizing in employees that he had completed due to the recent market.
Discussion ensued regarding the guarantee of the loan being done by the Agency.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to
approve a $1.7 million loan guarantee for Standard Mortgage Co., Inc., for the purposes of obtaining a
working capital loan, conditioned upon the provision of adequate real estate collateral.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None.
Absent: None.
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6. AWARD OF BID. "E" STREET TERRACE
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(Community DevelQpment Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that there was a total
of six (6) responses received for this bid.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
that the Community Development Commission:
Award a bid in the amount of $65,121.09 to Wyatt construction for the construction of public
stairway and seating amenities and authorize $28,558.16 for contingency, engineering and inspection
services, and archaeological monitoring; and,
Authorize a $93,679.25 increase in the allocation of bond proceeds from State College project area
to the Central City project area for the construction; and,
Authorize staff to administer and execute change orders, limited to the amount of the contingency
($11,958.16).
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None.
Absent: None.
7.
GALSTIAN FAMILY TRUST LOAN RELIEF REQUEST
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to approve the loan relief request submitted by the Galstian Family Trust subject to the terms and conditions
set forth in the attached staff.report, direct Agency Counsel to prepare the necessary amen<4tJ;<<?pt t~. the .
agreement between the Redevelopme{lt Agency and th~ Galsqan Family Trust and authorize the Chairman
and Executive Director to execute any documents necessary to eff~.;;tuate the transaction as described herein.
Kenneth J. Henderson, Execut,i,ve Director, Development Department, discussed the terms and
conditions of the proposed loan for this project.
Chairman Minor expressed concern regarding the Galstian Family Trust seeking assistance from the
Agency first before a lending institution.
Commission Member Curlin commented on the lack of maintenance being done to the property. He
requested that they be required to provide better upkeep of their property.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the City's continued
effort to assist small malls when the larger malls are experiencing a high vacancy rate.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None.
Absent: None.
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SAN MARCOS STREET IMPROVEMENT PROJECT
(Community Development Commission)
lRedevelQpment Committee Recommendation)
Commission Member Hernandez made a motion, seconded by Commission Member Curlin, that this
matter be continued to April 4, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None.
Absent: None.
RECESSED MEETING
At 4: 18 p.m., Mayor Minor recessed the meeting of the Mayor and Common Council and the
Community Development Commission for five (5) minutes.
MEETING RECONVENED
The meeting of the Mayor and Common Council and the Community Development Commission was
reconvened at 4:26 p.m.
ROLLCALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Ralph Hernandez; David Oberhelman; Ierry Devlin; Valerie Pope-Ludlam;
Norine Miller. Absent: Dr. F.I. Curlin.~<;- \: -.. .
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STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth 1. Henderson,
Executive Director, Development Department; lames Penman, City Attorney; Dennis Barlow, Senior
Assistant City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive Assistant to the
Mayor; Roger Hardgrave, Director of Public Works; Rachel Clark, City Clerk; Suzanna Cordova, Deputy
City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department.
OTHERS IN ATTENDANCE
Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper.
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9.
PUBLIC COMMENTS AT COMMISSION MEETINGS
(Community Develqpment Commission)
(Councilman Curlin's Recommendation)
COMMISSION MEMBER CURLIN ARRIVED AT 4:27 P.M.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:27 P.M.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, commented on the changes being made to the
Brown Act effective April 1, 1994. He also commented on the length of time needed to speak during public
comments in order to make a specific point.
COMMISSION MEMBER HERNANDEZ RETURNED AT 4:28 P.M.
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that
this matter be referred to the Legislative Review Committee.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez.
Absent: None.
10. FREEWAY HOME CENTER
(Community Development Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, requested this item be
continued for thirty (30) days.
Commission Member Pope-Ludlam made a motion, seconded by Commission Me~ lfenimdez,
to continue this matter until April 18,11994. . ~
The motion carried by,the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
11. HIRING OF OUTSIDE COUNSEL
(Community Development Commission)
(Councilman Hernandez's Recommendation)
Commission Member Hernandez explained that the audit on the City Attorney's Office indicated that
the Mayor and Common Council should hire another deputy attorney for the City Attorney's Office. He felt
that since the City's funds are limited, the Redevelopment Agency attorney could be transferred back to the
City. He emphasized that the Redevelopment Agency pays approximately 90% of the Agency Attorney's
salary .
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to direct staff to prepare all the legal documents required to effectuate termination, including the 30-day
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notice required under the agreement. (No Vote Taken)
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Dennis A. Barlow, Senior Assistant City Attorney, discussed items listed in the executive summary
of the audit of the City Attorney's Office. He commented on the costs for hiring outside counsel versus in-
house counsel and the savings to the City and the Agency for using in-house counsel.
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Commission Member Oberhelman spoke of the amount of funds the Agency currently pays to
outside counsel.
Chairman Minor commented on the City Attorney's Office and the findings of the audit.
Commission Member Hernandez discussed various legal opinions prepared by the City Attorney's
Office when dealing with controversial issues of the City.
Commission Member Curlin related information he had received from the Agency Administrator
regarding the work of the City Attorney's Office for the Agency.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the City
Attorney's Office would always be involved with Agency projects in order to achieve the best interest of the
City.
Jim Penman, City Attorney, responded to comments made by the Commission Members regarding
the use of outside attorneys versus in-house attorney's and the cost. He explained that attorneys who
represent cities, follow the law that the corporation (City) is the client. He stated that their job was to ensure
the best interest of the City.
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Mr. Penman indicated that there had been brief discussions regarding the Agency paying the Agency
Attorney on an hourly rate, rather than a flat rate.
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Discussion ensued regarding the role of the City Attorney'" Office.
COMMISSION MEMBER OBERHELMAN RETURNED AT 5:24 P.M.
COMMISSION MEMBER MILLER WAS EXCUSED AT 5:25 P.M.
COMMISSION MEMBER MILLER RETURNED AT 5:26 P.M.
Commission Member Hernandez requested that an RFQ be initiated for Economic Development
Agency general counsel services.
Commission Member Hernandez made a substitute motion, seconded by Commission Member Pope-
Ludlam, to direct staff to prepare all the legal documents required to effectuate termination, including the 30-
day notice required under the agreement; and that an RFQ be initiated for Economic Development Agency
general counsel services.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain: None.
Absent: None.
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12.
ADJOURN TO CLOSED SESSION
There were no items for discussion in Closed Session.
13. ADJOURNMENT
At 5:52 p.m., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, Apri14, 1994 at 11:00 a.m., in the Council Chambers of City Hall,
300 North "0" Street, San Bernardino, California.
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Respectfully submitted:
KENNETH J. NDERSON
Executive Direc or/
Secretary to the Commission
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MAYORANDCOMMONCOUNOL
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
April 4, 1994
11:00 8.m.
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was held in the Council Chambers, City Hall, 300 North "0" Street, San Bernardino, California
and called to order by Mayor Tom Minor at approximately 4: 16 p.m., on Monday, April 4, 1994 .
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and
Norine Miller. Absent: Commission Member Dr. F. J. Curlin.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Shauna Clark, City Administrator; Fred Wilson, Assistant
City Administrator; Jim Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark,
City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Jeff Wright, P. O. Box 2341, San Bernardino, commented on how selected members of the public
were being cut-off when trying to discuss items various items on the agenda.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:20 P.M.
COMMISSION MEMBER HERNANDEZ RETURNED AT 4:21 P.M.
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 4:22 P.M.
Bob Nelson, Star Route 11, Summit, California, expressed concern regarding the limitation of
freedom of speech being practiced at the Commission Meetings.
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April 4, 1994
COMMISSION MEMBER POPE-LUDLAM RETURNED AT 4:24 P.M.
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Mr. Nelson commented on the need for the Commission to apply its rules equally to all citizens.
CONSENT CALENDAR
The Commission Members requested items numbered "3", "4", "5", "7" and "8", respectively.
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez,
that the Consent Calendar items numbered "1" through "8" be adopted, except for items numbered "3", "4",
"5", "711 and "8", respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez,
that the minutes of the Community Development Commission of the City of San Bernardino for the meeting
of march 21, 1994, be approved as submitted in typewritten form.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
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2. REDEVELOPMENT COMMITTEE MINUTES
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez,
that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of January
27,1994, be received and fIled.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
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April 4, 1994
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6. FY 94/95 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING CYCLE.
(Mayor and Common Council)
Councilman Oberhelman made a motion, seconded by Councilman Hernandez, to receive and me the
attached staff report submitted in connection with the FY 94/95 CDBG Funding Cycle.
The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Curlin.
3. CONTINUED FROM MARCH 21.1994
INSTALLATION OF LANDSCAPING IN WATERMAN AVENUE AND IDGHLAND
AVENUE MEDIANS.
(Community Development Commission)
Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the citizens of San
Bernardino being assessed in order to pay for the medians for this project.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Economic
Development Agency was funding this project indicating that citizens would not be assessed for this project.
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez,
that the following resolution be approved and adopted:
RESOLUTION NUMBER 5393
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO AWARDING A CONTRACT TO R K. ALLEN LANDSCAPE
CONSTRUCTION FOR MEDIAN LANDSCAPE IMPROVEMENTS ON WATERMAN
AVENUE AND HIGHLAND AVENUE.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
4. SENATE BILL 1135
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to
approve the use of Bond Proceeds for payment to the Educational Revenue Augmentation Fund, pursuant to
Senate Bill 1135, for fiscal Years 1993-94 and 1994-95 and that the Agency's Budget for Fiscal year 1993-
94 be increased by $817,610.95.
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COMMISSION MINUTES
April 4, 1994
Jeff Wright, P. O. Box 2341, San Bernardino, CA, read the motion for the public's hearing.
Chairman Minor explained the use of this money as required by the State of California.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
5. REDEVELOPMENT AGENCY LINE OF CREDIT
(Community Development Commission)
Kenneth 1. Henderson, Executive Director, Development Department, commented on the terms and
condition of a line of credit presented by First Interstate Bank and emphasized on the need to further explore
their proposal.
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Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to
authorize a one year extension of certain lines of credit with Wells Fargo Bank and authorize the execution of
said documents. Further, that the Executive Director be authorized to enter into negotiations with First ,..
Interstate Bank of California to establish a certain line of credit.1
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Jeff Wright, P. O. Box 2341, San Bernardino, questioned the use of the line of credit.
.
Chairman Minor stated that the line of credit was used for a variety of different items ranging as high
as $10 million.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
7. AWARD OF BID - DEMOLITION & EARTHWORK NEW CENTRAL POLICE STATION
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, to
award a bid in the amount of $173,000.00 to Howard Contracting, Inc., for demolition and earthwork and
authorize $26,000.00 for contingency. Further, authorize staff to administer and execute change orders,
limited to the amount of the contingency ($25,000).
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The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
8. STANDARD MORTGAGE COMPANY. INC.. LOAN GUARANTEE
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman,
that the following resolution be approved and adopted:
RESOLUTION NUMBER 5394
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, APPROVING A CERTAIN OWNER PARTICIPATION
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO AND STANDARD MORTGAGE CO., INC.
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to
authorize the Chairman and Executive Director to execute implementing documentation in connection with a
$1.7 million loan guarantee for Standard Mortgage Company, Inc.
Chairman Minor explained that the loan guarantee being proposed for this item would be for
operations and business.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam. Noes: Commission Member Miller. Abstain: None. Absent:
Commission Member Curlin.
END OF CONSENT CALENDAR
9. EDGEIDLL VILLAGE REINSTALLATION OF GREENBELT
(Community Development Commission)
Shauna Clark, City Administrator, requested this item be continued due to the need of the new
president of the Homeowner's Association to review this item.
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman,
that the matter be continued until April 18, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
REGULAR MEETING
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April 4, 1994
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10. PROPOSED SAN BERNARDINO BASEBALL STADIUM
(Community Development Commission) '\.' L.ttf.!
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Commission MemberC made a motion. seconded by Commission Member i lWIman, to
approve the selection ofKPMG Peat Marwick/HOK as San Bernardino Baseball Stadium feasibility
consultants, authorize staff to prepare a professional services agreement with compensation not to exceed
$30,000 and authorize the Chairman and Executive Director to execute said agreement and related
implementation documents.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman;
Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent:
Commission Member Curlin.
11. SAN BERNARDINO CIVIC LIGHT OPERA
(Community Development Commission)
(San Bernardino Civic Lieht Opera Association
Ad Hoc Committee Recommendation)
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Commission Member Oberhelman thanked the members of the Ad Hoc Committee for their time
spent working on this project. He discussed the alternatives listed in the staff~~rt.
Commission Member Negrete stated that this item was discussed over a period of three (3)
meetings.
Commission Member Hernandez questioned whether or not there were any implementation plans for
this project after purchased by the Agency.
Commission Member Oberhelman commented on the concerns of the Ad Hoc Committee and their
recommendations regarding the operation of the California Theater after purchase by the Agency.
Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that the
organizations using the California Theater would be paying rent for its use.
Commission Member Negrete recommended that the purchase of the Theater included all fixtures
and other items in the Theater that are utilized.
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April 4, 1994
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Chairman Minor recommended the Commission approve Alternative C, and have staff prepare the
necessary documents to purchase the facility.
Discussion ensued regarding the necessary actions that need to take place in order to purchase the
facility in an appropriate legal manner.
Commission Member Devlin asked if there was a complete inventory list of all items in the
California Theater.
Keith Stava, Civic Light Opera, stated that there was a list available for review.
Jeff Wright, P. O. Box 2341, San Bernardino, felt the approval of the public should be required
before the approval of this item.
Commission Member Hernandez made a motion, seconded by Commission Member Miller, that
Alternative No.3 be approved in concept; and that staffbe directed to prepare the documents and refer the
matter to the Redevelopment Committee.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
12.
LOCAL BID PREFERENCE
(l\{ayor and Common Council)
(Community Development Commission)
Councilman Oberhelman made a motion, seconded by Councilman Devlin, to approve 1% local
preference on materials, supplies, and equipment and direct staff to prepare the documents.
COUNOLMAN OBERHELMAN EXCUSED AT 5:06 P.M.
Fred Wilson, Assistant City Administrator, commented on the use of the Local Bid Preference with
the Department of Public Works.
COUNCILMAN OBERHELMAN RETURNED AT 5:07 P.M.
Councilwoman Pope-Ludlam discussed the complexity of having a bid preference.
Dennis A. Barlow, Senior Assistant City Attorney, stated that the Council would need to define
"local" in connection with this item.
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Councilman Hernandez explained that he still had concerns regarding the approval of this item.
---
The motion carried by the following vote: Ayes: Council Members Negrete; Oberhelman; Devlin;
Pope-Ludlam; Miller. Noes: Councilman Hernandez. Abstain: None. Absent: Commission Member
Curlin.
.......
13. PUBLIC COMMENTS AT COMMISSION MEETINGS
(Community Development Commission)
(Councilman Curlin's Recommendation)
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that
the matter be referred to Legislative Review Committee.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Curlin.
14. SAN MARCOS STREET IMPROVEMENT PROJECT
(Community Development Commissioll)
~edevelopment Committee Recommendation)
Dennis A. Barlow, Senior Assistant City Attorney, discussed the concerns of the City Attorney's
Office regarding the completion of public improvements to a neighborhood street with no homes.
...
.....
Commission Member Hernandez stated that this capital improvement project was no different than
others that had been previously approved.
Timothy Sabo, Special Counsel, Sabo and Green, explained his findings regarding this item.
Commission Member Oberhelman commented that the Agency had no proposed development for
this area.
Commission Member Pope-Ludlam indicated that discussions had been held regarding affordable
housing being located in that area.
Chairman Minor stated that if the public improvements were done before any developments, there
would be no indications as to where the gas and water mains would need to be located.
Commission Member Devlin stated that by approving this item, the Commission would be limiting
the amount of options available for the area.
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Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
that this matter be continued to April 18, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent:
Commission Member Curlin.
15. ARROW VISTA HOUSING DEVELOPMENT PROJECf
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to
approve implementation of the agreement for termination of obligations pertaining to the Arrow Vista
Housing Development, authorize the utilization of $ 120,000 in available low income housing monies and
authorize the Chairman and Executive Director to execute any documents necessary to effectuate said
implementation. (No Vote Taken)
Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on
previous actions related to this item. He explained that Pridemark Homes would be hired to prepare the
homes for sale.
Jeff Wright, P. O. Box 2341, San Bernardino, commented on the amount of funds being given to
developers for consultant services.
COMMISSION MEMBER MILLER WAS EXCUSED AT 5:36 P.M.
Commission Member Oberhelman commented on this being a gift of public funds. He spoke on the
amount of funds being given to the developer when he owes the Agency money.
COMMISSION MEMBER MILLER RETURNED AT 5:38 P.M.
Commission Member Pope-Ludlam made a substitute motion, seconded by Commission Member
Negrete, that this matter be continued to April 18, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam;
Miller. Noes: Commission Member Oberhelman; Devlin. Abstain: None. Absent: Commission Member
Curlin.
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Apri14,1994
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16. ECONOMIC DEVELOPMENT AGENCY PROCUREMENT AND PROCEDURES POLICY
(Community Development Commission)
(Redevelopment Committee's Recommendation)
Chairman Minor discussed actions taken by staff regarding a project which called for the need to hire
consultants in a timely manner.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that staffwas
authorized to spend up to $25,000 for consulting services. He indicated that four (4) consultant were hired at
a cost less than $23,000.
Commission Member Pope-Ludlam expressed concern regarding the need for the Council to be
informed of the hiring of consultants. She indicated that Council Members are not aware of various actions
taking place within their own wards.
Commission Member Hernandez reiterated on the need for the Council Members to be aware of all
actions taking place in their wards.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:50 P.M.
Commission Member Negrete indicated that he was not aware of the situation regarding this project
until the Redevelopment Committee Meeting. He stated that he would like to see projects completed in the
most equitable way as possible with his knowledge.
Esther Estrada, Ramona Senior Housing, Inc., stated that the agreement being referred to was drawn
up between the Complex and the City. She indicated that when the items were being discussed, that were
discussed independently.
Ms. Estrada informed the Commission that the funds used for the hiring of the consultants was not a
grant but a loan that would be repaid with interest.
Discussion ensued regarding the ability and the difficulty of receiving tax credits.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Devlin, that
this matter be tabled.
The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman;
Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent:
Commission Member Curlin.
COMMISSION MEMBER OBERHELMAN LEFT AT 6:04 P.M.
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Apri14, 1994
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RS-l RAMONA SENIOR HOUSING COMPLEX
(J\1ayor and Common Council)
Councilwoman Miller made a motion, seconded by Councilwoman Pope-Ludlam, to approve a Grant
Agreement among Ramona Senior Complex, the County of San Bernardino and the City for $300,000.
(Commission Development Commission)
Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, to
approve amendments to Owner Participation Agreement by and between Ramona Senior Complex and the
Agency in the form of the amended composite OP A as attached.
Councilman Hernandez felt the rents for this project were too expensive for the citizens off the
center. He believed that there was a need for the center, however, the rental rates were too high. He
questioned who would be responsible for the overseeing of this project.
COUNOLWOMAN POPE-LUDLAM WAS EXCUSED AT 6:10 P.M.
Timothy Sabo, Special Counsel, Sabo and Green, stated that there was no need for an oversight
committee since the project was almost complete.
COUNOL WOMAN POPE-LUDLAM RETURNED AT 6:11 P.M.
Mr. Sabo explained that Ramona Senior Housing, Inc., would not be involved with the day to day
activities of the project and would have limited participation with the project.
Councilman Hernandez commented that Casa Ramona was suppose to be a self help facility.
However, if the tax credits are received, that would not be possible.
Mr. Sabo stated that with CHF A, the project would have more options and more control than with
the tax credits.
The motions carried by the following vote: Ayes: Council Members Negrete; Hernandez; Pope-
Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: Commission Member
Curlin; Oberhelman.
RS-2. GREAT WESTERN WALL DEMOLITION - COURT STREET PARKING LOT
(Community DevelQpment Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to
approve a change order to the current contract with Larry Jacinto Construction in the amount of $8,466.00 for
removal of the southern portion of the Great Western Wall to a height of 42 inches above grade, and allocate
funds for same.
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Aprll4, 1994
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The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent:
Commission Member Curlin; Oberhelman.
17. ADJOURNMENT
At 6:30 p.m., the meeting of the Mayor and Common Council and the Community Development
Commission was adjourned to Monday, April 18, 1994 at 11:00 a.m., in the Council Chambers of City Hall,
300 North "0" Street, San Bernardino, California.
Respectfully submitted:
THI
Executive Directo I
Secretary to the Commission
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MAYORANDCOMMONCOUNOL
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE OTY OF SAN BERNARDINO
MINUTES
JOINT REGULAR MEETING
April 18, 1994
11 :00 8.m.
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was held in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California
and called to order by Mayor Tom Minor at approximately 4: 16 p.m., on Monday, Apri14, 1994 .
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Dr. F. 1. Curlin; Ralph Hernandez; Jerry Devlin; Valerie Pope-Ludlam; and
Norine Miller. Absent: Commission Member David Oberhelman.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth 1. Henderson,
Executive Director, Development Deparbnent; Shauna Clark, City Administrator; Fred Wilson, Assistant
City Administrator; Jim Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Melanie Vale,
Deputy City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary,
Development Deparbnent.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Jeff Wright, P. O. Box 2341, San Bernardino, commented on the discussion of the public comments
agenda item at the Legislative Review Committee on Thursday, Apri114, 1994.
Mr. Wright also discussed the symbolizing of writing "Pink Floyd" on the wall that was to be
demolished. He emphasized on the authorization he was given to do so.
CONSENT CALENDAR
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Apri118,1994
The Commission Members requested items numbered "2", "3", and "6", be removed from the
Consent Calendar.
Commission Member Hernandez made a motion, seconded by Commission Member Devlin, that the
Consent Calendar items numbered "1" through "6" be adopted, except for items numbered "2", "3", and "6",
respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
1. JOINT POWERS FINANCING AUTHORITY
(Community DevelQpment Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Devlin, that the
Regular Meeting of the Joint Powers Financing Authority be continued to Monday, May 16, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
4.
ADVERTISE FOR BIDS - INSTALLATION OF PLAYGROUND EOUlPMENT AT
ENCANTO PARK
(Mayor and Common Council)
Councilman Hernandez made a motion, seconded by Councilman Devlin, that the plans for the
installation of playground equipment and handicap accessible matting at Encanto Park, in accordance with
Plan No. 9090, be approved; and the director of Public Works/City Engineer be authorized to advertise for
bids.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman.
JOINT REGULAR MEETING
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April 18,1994
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5.
AWARD OF CONTRACf - CONSTRUCfION OF RICHARDSON STREET STORM
DRAINS
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(Mayor and Common Council)
Councilman Hernandez made a motion, seconded by Councilman Devlin, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 94-99
RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO
CORNISH CONSTRUCTION COMPANY, INC., FOR INSTALLATION OF THE
RICHARDSON STREET STORM DRAIN, FROM DAVIDSON STREET TO MISSION CREEK.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman.
1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community Development Commission)
Commission Member Devlin indicated that the dates for Item #8 which reads "October 15, 1994 to
October 15, 1994", should be corrected.
r Timothy C., Steinhaus, Administrator, Economic Development Agency, stated that the dates should
L read, "October 15, 1994 to October 15,1995.
Jeff Wright, P. O. Box 2341, San Bernardino, California, questioned whether or not the item on
"Public Comments" was discussed at this meeting.
Commission Member Devlin made a motion, seconded by Commission Member Negrete, that the
minutes of the Community Development Commission of the City of San Bernardino for the meeting of March
7, 1994, be approved as corrected.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
2. REDEVELOPMENT COMMITTEE MINUTES
(Community Development Commission)
Jeff Wright, P. O. Box 2341, San Bernardino, California, commented on whether or not the item on
"Public Comments" was discussed at the Redevelopment Committee.
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Kenneth 1. Henderson, Executive Director, Development Department, explained that the
Redevelopment Committee has not discussed that item.
Commission Member Hernandez made a motion, seconded by Commission Member Devlin, that the
minutes of the Redevelopment Committee of the City of San Bernardino for the meetings of March 10, 1994
and March 28, 1994, be received and flIed.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
6. RIGHT-OF-WAY ACOUISITION - SAN BERNARDINO COUNTY SUPERINTENDENT
OF SCHOOLS
(Community Development Commission)
Commission Member Negrete made a motion, seconded by Commission Member Miller, to authorize
the Executive Director to acquire right-of-way necessary for the construction of the Central Police Station
from the San Bernardino County Superintendent of Schools for the price of $85,000.00, plus estimated
escrow and title fees of$I,100.00, and execute any and all documents necessary to complete the acquisition.
Commission Member Hernandez explained that he would like to vote no on this item.
Jeff Wright, P. O. Box 2341, San Bernardino, California, commented on the cost of this item to the
City and stated that this item should have been off the Consent Calendar for the publics review.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Devlin;
Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission
Member Oberhelman.
END OF CONSENT CALENDAR
7. CONTINUED FROM APRIL 4. 1994
EDGEHILL VILLAGE REINSTALLATION OF GREENBELT
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, stated that Edgehill Village is
compiled of both sales and rental properties. He explained that this item was originally proposed to be
funded by revenue bonds from the sales of the properties.
JOINT REGULAR MEETING
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April 18,1994
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Dennis A. Barlow, Senior Assistant City Attorney, recommended that Motion "C" of this item be
revised to request the Mayor and Common Council to complete an action rather than give instructions to the
City Administrator.
Commission Member Curlin commented on the cost to property owners to maintain their property.
Shauna Clark, City Administrator, explained that the agreement will require property owners to
maintain their property. She indicated that the City would maintain the property at a cost to the owner, or the
City would maintain the property and place a lien on the property, if the owner failed to do so.
Commission Member Hernandez requested a copy of the document to be sent to the property owners
regarding this issue for his review.
Commission Member Pope-Ludlam commented on the fire hazards located in this area and the need
to approve this item.
COMMISSION MEMBER MILLER WAS EXCUSED AT 3:23 P.M.
JefIWright, P. O. Box 2341, San Bernardino, California, asked if the property in question is where
the bomb factory was previously located.
Chairman Minor stated that he was unaware of a bomb factory on this site.
Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, that
the following motions be approved and adopted:
That the Community Development Commission approve a grant in the approximate amount of
$23,500.00 utilizing 20% set aside funds for the installation of approximately 62,000 square feet of
irrigation and drought tolerant landscaping at Edgehill Village, 1400-1500 Edgehill Road.
That the Community Development Commission authorize the preparation of an agreement between
the Commission and Edgehill Village Homeowners Association, allowing for the installation of the
greenbelt and collection and/or liening or the property should the association fail to maintain the
property.
That the Community Development Commission request that the Mayor and Common Council direct
the Director of the Parks, Recreation and Community Services Department to oversee the repair and
installation of the greenbelt.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
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April 18, 1994
8. FEDERAL BANKRUPTCY COURT RETENTION - YMCA PARKING LOT
...
(Community Development Commission)
t~
Commission Member Devlin made a motion, seconded by Commission Member Negrete, that the
following motions be approved and adopted:
.....
That the Community Development Commission approve the construction of parking lot
improvements on a vacant parcel owned by the YMCA at an estimated cost of $280,000; further,
that the Economic Development Agency budget be increased by $280,000 plus monthly ground lease
costs.
That the Community Development Commission authorize staff to negotiate an agreement whereby
the YMCA would install parking lot improvements on the vacant land parcel..
That the Community Development Commission approve a ground lease from the YMCA to the
EDA, as well as a lease of the completed parking lot from EDA to the Bankruptcy Court landlord.
Commission Member Hernandez expressed concern regarding the retention of the Bankruptcy Court
in the City of San Bernardino. He commented on the architects retained for the Superblock removing the
Court from the design.
Timothy C. Steinhaus, Administrator, Economic Development Agency, commented on staff's efforts
to retain the Bankruptcy Court in San Bernardino. He explained to the Commission that in the event the
Court did not remain in the City the parking lot could be used for other projects. ....
Discussion ensued regarding the need to show the Bankruptcy Court that the City was committed to ....
retaining them in the City.
Commission Member Hernandez commented on the cost of this project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Devlin;
Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: Commission
Member Oberhelman.
9. EIR CONSULTANT - SUPERBLOCK
(l\fayor and Common Council)
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the costs for this
item would be reimbursed by the State.
Jeff Wright, P. O. Box 2341, San Bernardino, California, commented on the EIR Report being
proposed by staff.
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Councilman Devlin made a motion, seconded by Councilwoman Miller, to authorize the Mayor and
~ City Clerk to execute a contract with the staff recommended EIR consultant in an amount not to exceed
I $150,000.00
L..., The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman.
(Community Development Commission)
Commission Member Devlin made a motion, seconded by Commission Member Miller, to authorize
the Executive Director to reimburse the City of the contracted EIR consultant, including expenses incurred for
the City staff environmental consultant (Tom Dodson & Associates, not-to-exceed $15,000.00) and direct
expenses, and allocate bond proceeds in the estimated amount of $150,000.00 for same.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
10. INLAND PLAZA REFINANCING - PUBLIC HEARING
OPEN PUBLIC HEARING
CLOSE PUBLIC HEARING
,,-
(Mayor and Common Council)
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Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on the
history of this item.
JefIWright, P. O. Box 2341, San Bernardino, California, questioned the funding source for this item.
Mr. Henderson explained that bond issues were used for this item.
Councilwoman Pope-Ludlam made a motion, seconded by Councilman Curlin, to close the public
hearing.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman.
Councilman Hernandez made a motion, seconded by Councilman Negrete, that the following
resolutions be approved and adopted:
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RESOLUTION NUMBER 94-100
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COMMISSION MINUTES
April 18, 1994
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO REGARDING THE HOLDING OF A PUBLIC HEARING IN CONNECTION ,...
WITH THE EXTENSION OF THE MATURITY OF THE $2,200,000 CITY OF SAN
BERNARDINO, CALIFORNIA, INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES
1983A (INLAND VALLEY PROJECT). ......
RESOLUTION NUMBER 94-101
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING THE EXTENSION OF THE MATURITY OF THE $2,200,000
CITY OF SAN BERNARDINO, CALIFORNIA, INDUSTRIAL DEVELOPMENT REVENUE
BONDS, SERIES 1983A (INLAND VALLEY PROJECT).
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
11.
WARM CREEK APARTMENTS
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()fayor and Common Council)
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Councilman Hernandez made a motion, seconded by Councilman Negrete, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 94-102
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A FIRST SUPPLEMENTAL INDENTURE AND A SECOND
SUPPLEMENTAL INDENTURE FOR ITS MULTIFAMILY HOUSING REVENUE BONDS
(WARM CREEK APARTMENTS PROJECT) SERIES 1985.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
12. FREEWAY HOME CENTER
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(Community Development Commission)
(Redevelopment Committee Recommendation)
Kenneth J. Henderson, Executive Director, Development Department, explained previous
recommendations that have been approved for this item. He explained that R TC had agreed to sell the
property to Allan Steward, Steward and Associates.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to authorize and direct staff to submit a $2.5 million dollar loan application to a private lender for the purpose
of reloaning the loan proceeds to Allan Steward, Inc., for purposes of acquiring and renovating the Freeway
Home Center and for working capital, subject to review of Allan Steward's financial capacity and, further,
authorize the chairman and Executive Director to execute an Owner Participation Agreement to include a
personal guarantee pledge by Allan Steward (NO VOTE TAKEN)
Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that RTC had
informed the Agency of its willingness to sell the property to Mr. Steward despite his current legal problems.
Commission Member Devlin expressed concern regarding the Agency loaning funds to Mr. Steward
at this time.
Chairman Minor spoke of the pass-through loan as requested by Mr. Steward
Commission Member Pope-Ludlam emphasized on the need for improvements to the Freeway Home
Center.
Commission Member Miller commented on the amount of funds being proposed for this project. She
indicated that the funds being used for this project were all City funds, and that the developer was not
contributing any personal funds to this project.
Discussion ensued regarding various projects funded by the City.
COMMISSION MEMBER MILLER WAS EXCUSED AT 3:20 P.M.
COMMISSION MEMBER MILLER RETURNED AT 3:23 P.M.
Commission Member Hernandez asked if the Agency would be repaid for its investment in this
project.
Mr. Steinhaus, Administrator, Economic Development Agency, stated that if and when the project is
sold, the Agency would be repaid with interest.
Mr. Steinhaus indicated that the bank would loan the Agency $2.5 million and amortize it over ten
(10) years instead of five (5) years.
Allan Steward, Steward and Associates, emphasized that the project would only be successful if
amortized over 25 years. .
Jeff Wright, P. O. Box 2341, San Bernardino, concurred with comments made by Commission
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Member Miller.
Commission Member Curlin recommended this item be continued until additional information is
available.
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Commission Member Pope-Ludlam reiterated the need to fund this project.
Esther Estrada, Ramona Senior Housing, Inc., requested an opportunity to correct statements made
regarding her project. She explained that Casa Ramona was a non-profit organization which has invested
over $300,000 into the project. She stated that the funds received from the Agency would be repaid.
RECESSED MEETING
At 3:40 p.m., Chairman Minor recessed the meeting of the Mayor and Common Council and the
Community Development Commission for five (5) minutes.
MEETING RECONVENED
At 3:45 p.m., the meeting of the Mayor and Common Council and the Community Development
Commission was reconvened.
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Dr. F. 1. Curlin; Ralph Hernandez; Jeny Devlin; Valerie Pope-Ludlam; and
Norine Miller. Absent: Commission Member David Oberhelman.
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STAFF PRESENT
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Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth 1. Henderson,
Executive Director, Development Department; Shauna Clark, City Administrator; Fred Wilson, Assistant
City Administrator; Jim Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Melanie Vale,
Deputy City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary,
Development Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
12. FREEWAY HOME CENTER
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(Community Development Commission)
~edevelopment Committee Recommendation)
Evlyn Kenny, San Bernardino, felt this item should not be approved. She expressed concern
regarding additional funds need to protect citizens in their homes.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that RTC indicated
that there were other interest buyers for this property.
Allan Steward, Steward and Associates, explained that he is currently working with 60 square units
of tenants to locate to this area.
Commission Member Curlin made a motion, seconded by Commission Member Negrete, to
authorize and direct staff to submit a $2.5 million dollar loan application to a private lender for the purpose
of reloaning the loan proceeds to Allan Steward, Inc., for purposes of acquiring and renovating the Freeway
Home Center and for working capital, subject to review of Allan Steward's financial capacity and further,
authorize the chairman and Executive Director to execute an Owner Participation Agreement to include a
personal guarantee pledge by Allan Steward, contingent upon approval of getting a 25 year amortization, 8%
interest, 7 year call.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Devlin; Miller. Abstain: None. Absent:
Commission Member Oberhelman.
13.
ARROW VISTA HOUSING DEVELOPMENT PROJEcr
(Community Development Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez,
to approve implementation of the agreement for termination of obligations pertaining to the Arrow Vista
Housing Development, authorize the utilization of $120,000 in available low income housing monies and
authorize the Chairman and Executive Director to execute any documents necessary to effectuate said
implementation. (No Vote Taken)
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Agency
was asking that this project revert back to the Agency and that John Dukes, Dukes-Dukes and Associates be
hired to act as a consultant for the project. He stated that there was a termination clause in the agreement.
Mr. Steinhaus briefed the Commission on the process needed if the Commission elected to foreclose
on this loan.
Commission Member Devlin questioned whether or not Mr. Dukes was willing to repay the Agency
with a portion of his consulting services fee.
Jeff Wright, P. O. Box 2341, San Bernardino, California, commented on the amount of funds being
JOINT REGULAR MEETING
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COMMISSION MINUTES
April 18, 1994
paid to the developer as a consulting services fee.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent:
Commission Member Oberhelman.
14. SAN MARCOS STREET IMPROVEMENT PROJECT
(Community Development Commission)
~edevelopment Committee's Recommendation)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to continue this item until May 2,1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
RS-l. SAN BERNARDINO COUNTY LAW LIBRARY RETENTION
(Commission Development Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that approval of
this item would be a positive move toward gaining the confidence of the Bankruptcy Court.
Discussion ensued regarding the various motions listed in the staff report.
Commission Member Hernandez made a motion, seconded by Commission Member Miller, to
authorize the Executive Director to execute an Agreement of Purchase and Sale and Joint Escrow Instructions
between Bank of America National Trust Savings Association and the Redevelopment Agency.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
(M&yor and Common Council)
Councilman Hernandez made a motion, seconded by Councilwoman Miller, to set a joint public
hearing for May 15, 1994, to consider approval of a Disposition and Development Agreement between the
Redevelopment Agency and the San Bernardino County Law Library Board of Trustees.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman.
RS-2. LOCAL BID PREFERENCE
JOINT REGULAR MEETING
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(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to
adopt Section 3.04.125 of the San Bernardino Municipal Code as its Local Bid Preference Policy if said
section is actually approved by the Mayor and Common Council.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
RS-3. GENERAL COUNSEL SERVICES
(Community Development Commission)
Commission Member Miller made a motion, seconded by Commission Member Negrete, to approve
the retention of the City Attorney as Economic Development Agency General Counsel until a new Agency
General Counsel is selected by the Commission.
Commission Member Hernandez recommended that the City Attorney's Office only continue
working on existing Agency projects.
Timothy C. Steinhaus, Administrator, Economic Development Agency, commented on the need to
continue using the City Attorney's Office on a case by case basis until new Counsel for the Agency is
obtained.
Dennis A. Barlow, Senior Assistant City Attorney, stated that the City Attorney's Office was in
agreement with this item.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member
Oberhelman.
ARS-l-l
PROPOSED INCREASE IN COMMUNITY DEVELOPMENT COMMISSION
MEMBERSCO~ENSATION
(Mayor and Common Council)
(Councilwoman Pope-Ludlam's Recommendation)
Dennis A. Barlow, Senior Assistant City Attorney expressed concern regarding the legality of
including annual CPI increases as part of the Commission's raise.
Councilman Hernandez indicated that the request to increase the Commission's salary was not a new
JOINT REGULAR MEETING
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issue. He explained that the salary of the Mayor was raised several years ago.
Councilwoman Miller voiced her disapproval of this item.
,....
Councilwoman Pope-Ludlam commented on her conversation with the Mayor regarding placing this
item on the Commission Agenda.
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Mayor Minor recommended that the citizens of San Bernardino vote to raise the salary of the
Commission Members. He stated that he would support a charter amendment on the ballot.
Councilman Curlin commented on the negative press that has been received as a result of this item.
He suggested that this item be either tabled or continued until a later date when the Mayor has had ample time
to thoroughly research and review this item.
Jeff Wright, P. O. Box 2341, San Bernardino, concurred that the Commission did deserve a raise but
requested that it be done by vote of the people and not the Council.
Evlyn Kenny, Citizen, stated that the Council was paid $550.00 a month.
Esther Estrada, Ramona Senior Housing Inc., recommended the Council approve a Blue Ribbon
Advisory Committee to address this issue.
Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez, to approve a
resolution increasing the Community Development Commission compensation from $75.00 per meeting to
$1500.00 per month and amending the previous actions of the Mayor and Common Council. ...
The motion failed by the following vote: Ayes: Council Members Hernandez; Pope-Ludlam. Noes: ...",
Council Members Negrete; Curlin; Devlin; Miller. Abstain: None. Absent: Councilman
Oberhelman.
17. ADJOURNMENT
At 5:23 p.m., the meeting of the Mayor and Common Council and the Community Development
Commission was adjourned to Monday, May 2, 1994 at 11:00 a.m. , in the Council Chambers of City Hall,
300 North "0" Street, San Bernardino, California.
Respectfully submitted:
~~ERSON
Executive Directorl
Secretary to the Commission
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MAYORANDCOMMONCOUNca
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
May 2, 1994
11:00 a.m.
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was held in the Council Chambers, City Hall, 300 North "0" Street, San Bernardino, California
and called to order by Mayor Tom Minor at approximately 11:00 a.m., on Monday, May 2, 1994.
ROLLCALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie
Pope-Ludlam; and Norine Miller. Absent: None.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark,
City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
omERS IN A'ITENDANCE
Richard Brooks, The Sun Newspaper; John Husing, ECAP; Timothy Sabo, Special Counsel, Sabo
and Green.
PUBLIC COMMENTS ON ITEM..C;; NOT ON THE AGENDA
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding statements being
made about his comments at the Commission Meetings.
Jim Schlata, Citizen, commented on the need for citizens to fight for their rights.
Commission Member Hernandez spoke of constant newspaper articles which implement that the City
is giving away public funds. He recommended citizens report the misuse of funds to the proper authorities if
they have evidence.
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May 2, 1994
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Commission Member Curlin requested speakers properly identify themselves when speaking at the
podium for validity.
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Bob Nelson, Citizen, commented on the need to make various changes within the City.
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Gary Kirby, 1505 Yardly, San Bernardino, commented on the Commission Members making various
statements which attack the public. He explained that the meetings would run more smoothly
if various statements were ignored rather than acted upon.
Mr. Kirby recommended the Councilman of the Fifth Ward hold public forums to keep the residents
of the Fifth Ward informed of all issues.
The Commission Members requested item number "5" be removed from the Consent Calendar.
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman,
that the Consent Calendar items numbered "1" through "5" be adopted except for item number "5",
respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community DevelOJ)ment Commission) ---
Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, -II
that the minutes of the Community Development Commission of the City of San Bernardino for the meeting
of April 4, 1994 be approved as submitted in typewritten form.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
2. FY 1994/1995 COMMUNITY DEVELOPMENT BLOCK GRANT CDBG PUBLIC
HEARING
(Mayor and Common Council)
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman,
that May 16, 1994 at 3:00 p.m., be established as the date and time for the FY 1994/1995 CDBG Public
Hearing for consideration for various proposals requesting CDBG ftnancial assistance for the period
beginning July 1, 1994 and ending June 30, 1995.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
REGULAR MEETING
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May 2, 1994
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3.
RENDIDEPOSIT GUARANTEE PROGRAM
(Community DevelQpment Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to
approve designation of the Parks, Recreation and Community Services Department (Westside Community
Center) and Frazee Community Center as FY 1993-94 Rent Deposit Guarantee Program recipients.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
4. HOUSING DIVISION QUARTERLY ACTIVITY REPORT
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to
receive and file the attached Housing Division Quarterly Activity Report for the months of January, February
and March 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
,....... Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
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5. SP COMMERCIAL DEVELOPMENT FIRST AMENDMENT AND CERTIFICATE OF
COMPLETION
(Community Development Commission)
Commission Member Devlin asked if the developer had met all the necessary requirements for this
item.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that all requirements
were met and that all the fees were paid.
Kenneth J. Henderson, Executive Director, Development Department, explained the terms of this
agreement.
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman,
that the following motions and resolution be approved and adopted:
That the Community Development Commission approve a First Amendment to an Owner
Participation Agreement with SP Commercial Development.
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That the Community Development Commission authorize the Chainnan and Secretary to execute the
subject First Amendment.
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RESOLUTION NUMBER 5395
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WIllI
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO APPROVING THE EXECUTION OF A CERTIFICATE OF COMPLETION
FOR SP COMMERCIAL DEVELOPMENT FOR mE DEVELOPMENT OF mE CLUB
CENTER
The motions carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
6. SUNLAC DEVELOPMENT PROJECT
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on the
previous action related to this item and the problems that have incurred since the homes were built. He
indicated that the developer spent funds to complete the homes rather than pay other obligations.
Mr. Henderson commented on the additional improvements needed before the homes could be sold,
emphasizing that without Agency assistance, the homes could not be sold. He stated that the homes had been ,...
on the market for nine (9) months. .~
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Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to approve a proposal to finalize development of the Falcon Ridge housing development project, allocate
$121,400 in available housing set-aside funds and authorize the Chairman and Executive Director to execute
any documents necessary to effectuate implementation of said program.
Commission Member Oberhelman questioned why the Agency was giving the developer $50,000
and loaning him $71,400. He felt that the entire amount should be in the form of a loan.
Discussion ensued regarding the funding for this item from a private banker.
Timothy C. Steinhaus, Agency Administrator, Economic Development Agency, commented on the
need to assist the developer in order to sell the homes. He stated that the homes are already built.
source.
Commission Member Oberhelman reiterated on the need to seek assistance from an outside funding
Commission Member Devlin asked if there was a completion bond on this project and if so, what it
covered.
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Commission Member Oberhebnan made a motion, seconded by Commission Member Curlin to
continue this item until May 16, 1994.
The motions carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
7. ARCHAEOLOGICAL TFSTING. EVALUATION AND TREATMENT - SUPERBLOCK
(Communily Development Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that this item was part
of the environmental process that must be completed for the superblock. He indicated that since this was an
historical area of the City, it had to be identified.
Mr. Steinhaus stated that this item would award a contract of up to $45,000 to complete the
archaeological testing of the area. He also stated that the Planning and Building Services Department and the
consultants had reviewed this proposal.
COMMISSION MEMBER MILLER WAS EXCUSED AT 11:40 A.M.
Commission Member Devlin questioned the necessity of this item.
Mr. Steinhaus explained that the City must go through the EIR process and be certified no later than
September.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 11:43 A.M.
COMMISSION MEMBER CURLIN RETURNED AT 11:44 P.M.
Jeff Wright, P. O. Box 2341, San Bernardino, stated that the testing should have been done before
the Platt Building was demolished.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to authorize the Executive Director to draft and execute a contract with Statistical Research, Incorporated for
an amount not to exceed $450,512 for archaeological testing, evaluation, and treatment for the construction
of the State Consolidated Offices and CALTRANS Building on the Superblock and allocate funds for same,
with the understanding that such funds will be reimbursed by the State of California as a cost to this project.
Further, that staff be authorized to administer and execute change orders, limited to the amount of the
contingency ($45,000).
The motions carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhebnan; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission
Member Miller.
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May 2, 1994
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8.
TENANT SCREENING PROGRAM
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(Community DevelQJ)ment Commission)
(Councilman Hernandez's Recommendation)
Commission Member Hernandez spoke of the nwnerous apartment complexes within the City that
are experiencing drug problems. He stated that the problems will continue to get worse if a solution is not
met.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 12:47 P.M.
COMMISSION MEMBER OBERHELMAN RETURNED AT 12:48 P.M.
Commission Member Hernandez stated that more code enforcement was needed in those areas
experiencing the problems.
Commission Member Oberhelman concurred stating that every part of the City is impacted by the
lack of tenant screening.
Discussion ensued regarding the formation of an Ad Hoc Committee to address this issue.
Phil Arvizo, Executive Assistant to the Council, informed the Commission that the City
Administrator was also looking into this issue and stated that it would be discussed during the Legislative
Review Committee.
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Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to
refer this matter to the Legislative Review Committee.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission
Member Miller.
RECESSED MEETING
Chairman Minor recessed the meeting of the Mayor and Common Council and the Community
Development Commission at 12:00 p.m. to the Luncheon Workshop at the EDA Board Room.
LUNCHEON WORKf;)HOP
The Luncheon Workshop of the Mayor and Common Council and the Community Development
Commission was called to order at 12:30 p.m. in the Economic Development Agency Board Room, 201
North "E" Street, Second Floor, San Bernardino, California.
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ROLL CALL
Roll call was taken with the following members present: Commission Members Dr. F. J. Curlin;
Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent:
Chairman Tom Minor; Commission Members Edward Negrete; Norine Miller.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark,
City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
omERS IN ATTENDANCE
Dave Padrott, Staubach Company; Richard Mayo, State of California; Fred Kent, Project for Public
Spaces; Judie Cady, Caltrans; Katherine Spitz, KSA; Paul Danna, KMJR; Rick Keating, KMJR; Mike Mann,
KMJR; Cory Ticktin, KMJR; John Husing, ECAP; Richard Brooks, The Sun Newspaper; Timothy Sabo,
Special Counsel, Sabo and Green.
11.
SCHEMATIC DESIGN: STATE CONSOLIDATED OFFICES AND CALTRANS
BUILDING - LUNCHEON WORKSHOP
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, gave a brief overview on the
presentations made to date regarding the State Consolidated Offices and Caltrans Building.
Dave Padrott, Staubach Company, commented on the steps taken to date regarding the schematic
design and the types of material that could be used in building the project.
Paul Danna, KMJR, showed various focal points within the City that helped the Commission
Members identify how tall the State Building and the Caltrans Building would be. He suggested to the
Commission that the building be built using warm tones and desert colors for a nicer look. He also
commented on the benefit of using pre-cast material versus lime stone.
Mr. Padrott stated that a mock-up of the project using a variety of materials could be done for the
Commissions review. He also commented on a 360 seat auditorium that would be located at the bottom of
the parking structure.
Discussion ensued regarding the location of parking, easy access to the facilities, and the locating of
a heli-port.
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May 2, 1994
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Commission Member Hernandez made a motion, seconded by Commission member Oberhelman, to
approve schematic design of the State Consolidated Offices and CALlRANS Building on the western two-
thirds of the block bounded by Fourth. Fifth, "E" and "D" Streets and instruct staff to proceed with
construction design and development.
area.
Fred Kent, Project for Public Spaces, discussed the impact this project will have on the downtown
area.
Bob Curci, Carousel Mall, made comments regarding the different facilities located in the downtown
Timothy C. Steinhaus, Administrator, Economic Development Agency, made closing remarks
regarding the project and stated that the mock-up of the facility will allow the Commission to get a better idea
as to how the project will look.
Mr. Padrott stated that he would review the possibility of locating a heli-stop on the project and share
the costs with Mr. Steinhaus. He indicated that at present, the total project cost is approximately $90 million.
The motion carried by the following vote: Ayes: Commission Members Curlin; Hernandez;
Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Members Negrete;
Miller.
The luncheon workshop concluded at 1 :32 p.m. The meeting of the Mayor and Common Council
and the Community Development Commission was scheduled to reconvene at 3:00 p.m.
MEETING RECONVENED
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was reconvened by Mayor Tom Minor at approximately 3:32 p.m., on Monday, May 2,1994.
ROLLCALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; and Valerie
Pope-Ludlam. Absent: Commission Member Norine Miller.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark,
City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
REGULAR MEETING
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May 2, 1994
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OTIlERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; John Husing, ECAP; Timothy Sabo, Special Counsel, Sabo
and Green.
6. SUNLAC DEVELOPMENT PROJECT
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam to
reconsider this item.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was
continued for two (2) weeks at the moming session of the meeting.
Kenneth J. Henderson, Executive Director, Development Department, stated that Mr. Otis Lacy,
Sunlac Development, was present to address any concerns the Commission may have in reference to this
item. He indicated that previous discussions with the bank regarding financing for the project were not
promising.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Pope-Ludlam. Noes: Commission Member Devlin. Abstain: None. Absent:
Commission Member Miller.
Mr. Henderson commented on the need for funding to make the necessary improvements to the
homes before they are sold. He recommended the Commission proceed with this item so that the current
escrows are not lost. .
Commission Member Oberhelman recommended the total amount of funds requested be a loan rather
than a partial grant.
Otis Lacy, Sunlac Development, informed the Commission that he had incurred additional costs to
the project for mandatory City fees and landscaping. He explained that those additional costs added to his
funding shortage.
Commission Member Curlin questioned whether or not Mr. Lacy owned any abandoned property in
the City.
Mr. Lacy stated that he owned additional property in the City that was in the process of being
cleaned-up.
Commission Member Oberhelman questioned the amount of personal funding invested in this
project.
Mr. Lacy indicated that he had invested approximately $250,000 in the project and expected to
receive a profit of 7% on each $75,000.
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May 2, 1994
9
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to
approve a loan in the amount of $121,400 and that it be repaid at the close of escrow. (No Vote Taken)
Commission Member Pope-Ludlam spoke of using the 20% set-aside funds for the indented purpose.
She recommended the Commission support the staff recommendation.
Commission Member Hernandez made a substitute motion, seconded by Commission Member Pope-
Ludlam, to approve a proposal to finalize development of the Falcon Ridge housing development project,
allocate $121,400 in available housing set-aside funds with the understanding that $50,000 would be repaid
to the Agency, and authorize the Chairman and Executive Director to execute any documents necessary to
effectuate implementation of said program.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; None. Abstain: None.
Absent: Commission Member Miller.
9. ECONOMIC CONDITIONS OF THE CITY WORKSHOP
(Community Development Commic;sion)
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the
Redevelopment Committee recommended Mr. John Husing, ECAP, briefly speak to the Commission
regarding this issue.
John Husing, ECAP, commented on both San Bernardino and Riverside growing from the recent
recession. He spoke of the proper context needed in order for the City to better understand its community.
Commission Member Hernandez questioned whether or not redevelopment funds would need to be
put back into the economy.
Mr. Husing briefly discussed the importance of redevelopment funds in the City.
Commission Member Pope-Ludlam commented on the state of the City emphasizing on the problems
of the City. She requested staff place an item on the Redevelopment Committee Agency regarding the ovemll
economic interests of the City.
Discussion ensued regarding the set-up of an Economic Summit Workshop, the attendees and also
the host.
Commission Member Pope-Ludlam recommended Mr. Husing host the summit due to his various
experience and degrees with this subject matter. She explained that he has a better understanding of the
problems of the City.
City.
Jeff Wright, P. O. Box 2341, San Bernardino, indicated that this summit would be a benefit to the
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Evlyn Kenny, Citizen, requested the Commission not hire any more advisors for the City.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to establish a date and time certain for the conducting of the Economic Condition of the City Workshop to be
held the 3rd or 4th week in September.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission
Member Miller.
10. SAN MARCOS STREET IMPROVEMENT PROJECT
(Community DevelQJ)ment Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to continue this item until June 6,1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission
Member Miller.
11.
SCHEMATIC DESIGN: STATE CONSOLIDATED OFFICES AND CALTRANS
BUILDING - LUNCHEON WORKSHOP
(Community Development Commission)
(This item was acted on during the luncheon workshop in the EDA Board Room)
Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to
approve the schematic design of the State Consolidated Offices and CALTRANS Building on the western
two-thirds of the block bounded by Fourth, Fifth, "E" and "E" Streets and instruct staff to proceed with
construction design and development.
The motion carried by the following vote: Ayes: Commission Members Curlin; Hernandez;
Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Members Negrete;
Miller.
REGULAR MEETING
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RS-l. STANDARD MORTGAGE LOAN COMPANY
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(Community Development Commission)
(Councilwoman Pope-Ludlam's Recommendation)
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Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on
previous actions regarding this item. He explained recent changes that had been made to the agreement with
Standard Mortgage per legal counsel of Riverside National Bank.
Mr. Henderson stated that the change to the agreement would allow the bank to call for the Agency's
guarantee the day that Standard Mortgage is late with its payment.
Commission Member Hernandez asked if the Agency could seek assistance from another financial
institution.
Mr. Henderson explained that due to the time constraints, it would not be feasible.
Commission Member Pope-Ludlam reiterated on the changes that were made to the agreement and
the need to assist Standard Mortgage.
Commission Member Oberhelman commented on the lack of information presented at the
Commission Meeting as well as the risks involved if this item is approved.
Mr. Henderson stated that the Agency was currently in negotiations with the bank regarding various
terms in the agreement. ..
Commission Member Curlin concurred with Commission Member Oberhelman and recommended ...,j
this item be continued.
Mr. Steinhaus explained that the Agency did not receive the request to place this item on the Agency
agenda until Friday, April 29, 1994 at 11 :00 a.m. He indicated that the information from the bank was also
not received until Friday by facsimile.
Jeff Wright, P. O. Box 2341, San Bernardino, questioned the use for the funds requested.
R. W. Steiler, Standard Mortgage, explained to the Commission that this was of urgency to Standard
Mortgage.
John Nolan, Attorney representing Standard Mortgage, stated that the modification made to the
agreement does not increase the fmancial obligation of the Agency as guarantor. He emphasized that
Standard Mortgage was pledging 33 trust deeds of property in excess of $2.5 million as collateral.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam,
to continue this matter to Thursday, May 5, 1994, at 3:30 p.m., in the Council Chambers of City Hall, 300
North "0" Street, San Bernardino, California.
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12. ADJOURNMENT
At 5:50 p.m., the meeting of the Mayor and Common COWlciVCommunity Development
Commission was adjourned to Monday, May 5, 1994 at 3:30 p.m., in the Council Chambers of City Hall, 300
North "0" Street, San Bernardino, California.
Respectfully submitted:
KEN~ERSON
Executive Director
Secretary to the Commission
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MA YOR AND COMMON COUNCILI
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
. MINUTES
JOINT REGULAR MEETING
May 16, 1994
The Joint Regular meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 11:05 am., on Monday, May 16, 1994, in the Council Chambers, City Hall, 300 North
"D" Street, San Bernardino, California.
ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor, Commission
Members Edward Negrete, Dr. F. J. Curlin, Ralph Hernandez, David Obethelman, Valerie Pope-
Ludlam. Absent: Commission Members Jerry Devlin, Norine Miller.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Diane Roth, Deputy City Attorney; Shauna Clark, City
Administrator, Lorraine Velarde, Executive Assistant to the Mayor, Phil Arvizo, Executive Assistant to
the Council; Rachel Clark, City CleJk; Melanie Vale, Deputy City CleJk; Deborah Enay,
Administrative Secretary, Development Department.
OTHERS IN ATTENDANCE
Timothy Sabo, Special Counsel, Sabo & Green; Rhonda Connelly, Miller and Schroeder
Financial, Inc.
PUBLIC COMMENTS NOT ON THE AGENDA
Jeff Wrigbt, P. O. Box 2341, San Bernardino, CA, commented on the newspaper article
regarding jobs and endangered species.
COMMISSION MEMBER JERRY DEVLIN ARRIVED AT 11:06 A.M.
COMMISSION MEMBER NORINE MILLER ARRIVED AT 11:07 A.M.
~:ONSv'NT CALENDAR
The Commission Members requested that items Olunbered "2 through 6" be removed from the
Consent Calendar.
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1. JOINT POWERS FINANCING AUTHORITY
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(Community Development Commission)
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez that the Regular Meeting of the Joint Powers Financing Authority be called to order.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-LudlllIl; Miller. Noes: None. Abstain: None. Absent:
None.
DEVELOPMENT DEPARTMENT
2. GTE SMALL BUSINESS INCUBATOR PROJECT GRANT
(Community Development Commission)
Commission Member Pope-Ludlam stated this item had been reviewed at the Redevelopment
Committee level.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez to receive and file the attached staff report relative to the GTE Small Business Incubator
Project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
3. RAY Of' HOPE MINISTRIES HOMELESS SHELTER UTILITY PAYMENTS
PROGRA~
(Community Development Commission)
Kenneth Henderson, Executive Director, Development Department, clarified the differences
between the Good Shepherd Grant, which had been denied, and the Ray of Hope Ministries Utility
Payment Program Application which was recommended for approval, as requested by Commission
Member Curlin.
Commission Member Obemelman made a motion, seconded by Commission Member Negrete
to approve a $3,000 grant award to Ray of Hope Ministries under the Homeless Shelter and Utility
Payments Program and authorize the Chainnan and Executive Director to execute any documents
necessary to effectuate this tramacljrJll.
The motion carried '='y the following yote: Ayes: Commission Members Negrete: Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
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4. "FOCUS" NEIGHBORHOOD SELECTION
(Community Development Commission)
Commission Member Obemelman commented on diversifying the use of money throughout
the City as oppose to just the Central City area, using the money in more preventive and proactive
efforts in areas where deterioration has not reached the extreme.
Commission Member Eddie Negrete questioned the parameters of the proposed focused
neighbomood. He felt the homes in the area of 6th, 7th, G and H Streets should be included,
especially with the City's concentration on the Superblock. He recommended this area be designated
as soon as possible.
Executive Director Kenneth J. Henderson, Development Department, explained the criteria
used in the evaluation process by the Neighbod100d Preservation Team (NPT) which detennined the
parameters of the focus neighbomood selection. The area in question (Sixth, Seventh, G and H
Streets) was not predominantly owner-occupied; therefore, the area was not recommended for
inclusion by the NPT. He infODDed the Commission that the downtown residents could apply for
assistance through other city-wide neighbomood property assistance programs offered by the Agency's
Housing Division. A number of marketing brochures detail the various programs for the public's
infODD ation.
Mr. Henderson explained this is a multi-year project with an estimated $1,000,000 in costs on
each focus neighbomood.
Commission Member Miller noted that 75-80% comes back to the Agency, with interest, in
low-interest loans.
Commission Member Negrete made a motion, seconded by Commission Member Pope-
Ludlam to approve the designation of two (2) "focus" neighbomoods within the Central City
Revitalization Strategy area based upon the boundaries set forth below:
. 1-215 Freeway on the West, "E" Street on the East, Baseline Street
to the North, and 9th Street to the South.
. Sierra Way on the West, WateDDan Avenue on the East, Baseline Street
to the North, and 9th Street to the South.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hemandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Obed1elman. None. Abstain:
None. Absent: None.
s. V ALLEY AUTO SUPPLY ACQUISITION
(Community Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member Pope-
Ludlam to authorize the Executive Director to acquire fee title to Valley Auto Supply. ;\Ccessors parcel
numbers 134-141-11 & 27, from LaITY G. Haupert and Carolyn S. Haupert for thf~ pl'icl' of $924.000,
plus estimated escrow and title fees of $3.600. ,Uld authOlize the Executive DireclCll' tl) execute ,my
and all documents necessary to complete the acquisition.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; OberlIelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
6. CENTRAL POLICE STATION FINANCING
(Mayor and Common Council)
Councilman OberlIelman inquired as to whether underwriting companies were asked to submit
bids. Mayor Minor reported that Miller and Schroeder had already perfoDlled most of the work by the
time a decision was made to go out to bid, and that it would cost time to go out to bid. The Mayor
suggested to continue with Miller & Schroeder, due to the fast track timeline on the completion of this
project.
Timothy Steinhaus, Economic Development Agency Administrator, detailed the work which
has already been done by Miller & Schroeder on this project. Mr. Steinhaus reported that the cost of
the project is estimated at $11.3 million (excluding land costs).
Councilwoman Pope-LudImn made a motion, seconded by Councilman Negrete, that the
following resolution be approved and adopted:
RESOLUTION NUMBER 94-118
RESOLUTION OF THE MAYOR AND COMMON COUNCn.. OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING THE ISSUANCE OF NOT TO EXCEED
$10,000,000 SAN BERNARDINO JOINT POWERS AUTHORITY, TAX ALLOCATION
BONDS, ISSUE OF 1994 (pOLICE STATION FINANCING PROJECT) AND THE
BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO OF THE PROCEEDS THEREFROM PURSUANT TO THAT CERTAIN
LOAN AGREEMENT
Motion "A" carried by the following vote: Ayes: Council Member Negrete; Curlin;
Hernandez; Devlin; Pope-LudImn; Miller. Noes: Council Member OberlIelman. Abstain: None.
(Community Development Commission)
Commission Member Pope-LudImn, made a motion, seconded by Commission Member
Negrete, that the following resolution be approved and adopted:
RESOLUTION NUMBER 5396
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO, AUTHORIZING, ON BEHALF OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO. THE BORROWING OF FUNDS FROM
THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY r1'J\ TOTAL
AGGREGATE PRINCTPAL AMOUNT OF NOT TO EXCEED $10.000.000. ;\UTHORIZING
THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO i\ND
AUTHORIZING AND DIRECTING THE PREPARATION. EXECUTION AND DELIVERY
OF THE FORMS THEREOF
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Motion "B" carried by the following vote: Ayes: Commission Member Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Obemelman. Abstain: None.
Absent: None.
(Joint Powers Financinr Authority)
Council Member Pope-Ludlam, made a motion, seconded by Council Member Negrete, that
the following resolution be approved and adopted:
RESOLUTION NUMBER J-22
RESOLUTION OF TIlE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY
AUTHORIZING TIlE ISSUANCE OF NOT TO EXCEED TAX ALLOCATION BONDS,
ISSUE OF 1994 (pOLICE STATION FINANCING PROJECT), APPROVING TIlE FORM
OF LEGAL DOCUMENTS, RELATED TIlERETO AND AUTHORIZING AND
DIRECTING PREPARATION, EXECUTION AND DELIVERY OF TIlE FINAL FORMS
THEREOF
Motion "C" carried by the following vote: Ayes: Council Member Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Council Member Obemelman. Abstain: None.
END OF CONSENT CALENDAR
7.
INSPECTOR OF RECORD.. POLICE FACILITY CONSTRUCTION
(Community Development Commission)
Timothy Steinhaus, EDA Administrator, asked that this item be approved subject to the
Director of Planning and Building Services certifying the person recommended.
Commission Member Pope-Ludhm made a motion, seconded by Commission Member
Obemelman, to authorize the Executive Director to draft and execute a contract with Converse
Consultant Inland Empire for an amount not to exceed $84,000 and estimated reimbursable expenses
of $5,000 for Inspector of Record services for the construction of the new Central Police Station and
authorize funding for same. Further, authorize staff to administer changes in the scope of services to
the amount of the contingency ($6,720) and authorize funding for same.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
MEETING RECESSED
At 11:54 am., the Mayor rece~sed the Mayor and Common Council, the C'ol1lmunity
Development Commission and the Joillt Powers Financing Authority meeting until 2:(Jo p.Il).
JOINT REGULAR MEETING
COMMISSION MINUTES
DATE: May 16,1994
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MEETING RECONVENED
At 3:45 pm., the meeting of the Mayor and Common Council, the Community Development
Commission and Joint Powers Financing Authority was called to order by Mayor Minor.
ROLL CALL
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Roll call was taken with the following members present: Chaionan Tom Minor, Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hemandez; David Oberhelman; Jeny Devlin.
Absent: Commission Members Pope-Ludlam; Norine Miller.
ST AFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Diane Roth, Deputy City Attorney; Lorraine Velarde,
Executive Assistant to the Mayor, Phil Arvizo, Executive Assistant to the Council; Shauna Clark, City
Administrator, Rachel Clark, City Clerlc; Melanie Vale, Deputy City Clerlc; Deborah Enay,
Administrative Secretary, Development Department.
OTHERS IN ATTENDANCE
None.
The Mayor requested item number 25 of the Mayor and Common Council Agenda be taken at
the same time.
COMMISSION MEMBERS VALERIE POPE-LUDLAM AND NORINE MILLER ARRIVED
AT 3:46 P.M.
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Council Office
Recommended for ~proval by Lesislative Review Committee on 5/5/94
25. Resolution of the Mayor and Common Council of the City of San Bernardino mnending
Resolution No. 9446 relating to time limits for the public to address the Mayor and Common
Council.
MOTION:
That Section 6 of Resolution No. 9446 be amended, limiting members of the
public to a total time of ten minutes when they address the Mayor and
Common Council on either agenda or public comment items and limiting the
time on each item to three minutes.
and/or
MOTION:
That Section 7 of Resolution No. 9446 be amended. applying a three minute
time limitation to a member qf the public addressing the f\ lay'" and COllllllon
Council with po)sible Iwo minute extensions at Special f\"eetil1g~.
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AGENCY ADMINISTRATION
8.
PUBLIC COMMENTS AT COMMISSION MEETINGS
(Community Development Commission)
(Lepslative Review Committee Recommendation)
COMMISSION MEMBER RALPH HERNANDEZ WAS EXCUSED AT 3:46 P.M.
Public speaker, Jeff Wright, noted his objections to limiting the time for public comments.
Mayor Minor requested Jeff Wright's removal from the podium and explained to the public
that Mr. Wright was already given his opportunity to speak. on this same subject at the Redevelopment
Committee level.
Councilpersons Devlin, Miller, Oberhelman, made comments in favor of keeping the current
three-minute time limit for public comments.
Councilpersons Curlin and Pope-Ludlam were in favor of the fODD motions which would
increase the public comments to not-to-exceed ten minutes. However, Councilwoman Pope-Ludlam
felt the time should be extended beyond this at "Special" meetings because the public's comments are
essential to decision-making process.
COMMISSION MEMBER RALPH HERNANDEZ RETURNED AT 3:50 P.M.
Discussion ensued regarding adherence of the 72-hour posting timeframe at the
Redevelopment Committee and Legislative Review Committee levels; application of the time limits at
Regular, Adjourned Regular and Special meetings; clarification of the Brown Act requirements
regarding allowance for public comments, and so forth.
City Administrator, Shauna Clark, pointed out that a Special meeting usually only has one
item for discussion. There should be one rule for Regular and Adjourn Regular meetings (maximum
of ten minutes) and another rule for Special meetings (maximum of five minutes).
Commission Member Curlin made a motion, seconded by Commission Member Pope-Ludlam
to adopt as policy the provisions of Resolution 94-46, as amended, relating to time limits for the
public to address the ChaiDDan and Community Development Commission.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain:
None. Absent: None.
The Mayor vetoed simultaneously items numbered 25 on the Common Council agenda and 8
on the Community Development Commission agenda.
Commission Member Hemantk;: staled Ihat the tvlayor cannot veto a Corl1lni~:sip" action
according to parliamentary procedure tllJd Slate !tn\!.
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Diane Roth, Deputy City Attorney, stated the vetoing of the Mayor and Common Council item
number 25, automatically cancels the Community Development Commission item because the motion
is worded in such a way that not passing item number 25 negates the Community Development
Commission item number 8.
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Council Member Hernandez requested fonn motion, Item No.8, be brought back to the next
Commission meeting.
DEVELOPMENT DEPARTMENT
9. MEXICAN CONSULATE RELOCATION AND LEASE
(Community Development Commission)
Kenneth Henderson, Executive Director, Development Department, provided background as
detailed in the staff report and sought Commission direction regarding whether or not it wished staff
to proceed with finalization of lease conditions and the construction of tenant improvement and
necessary code requirements for the relocation of the Mexican Consulate into 532 North "0" Street as
sole occupant. The Consulate's present lease expires in September 1994.
Discussion ensued regarding the construction costs, financial analysis, the best use of the land,
recuperable costs, parking lot spaces for both the Mexican Consulate and U.S. Postal SelVice, the
Commission obligation to comply with the substance of fonner Mayor Holcomb's letter dated January
20, 1993, and fonner Commission actions.
Commission Member Pope-Ludlmn suggested either negotiating the proposed rent mn ount or
immediately start to search for a better quality space, but in a less valuable spot.
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Commission Member Hernandez made a motion, seconded by Commission Member
Oberllelman to approve appropriation of $325,000 in bond proceeds to fmance the code-required
improvements and tenant improvements related to the relocation of the Mexican Consulate to Agency-
owned property at 532 North "0" Street.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberllelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent:
None.
RECONSIDERA TION OF ITEM NO.8
8. PUBLIC COMMENTS AT COMMISSION MEETINGS
AGENCY ADMINISTRATION
. (Communitv DeveloDment CommissioJl)
ILel!:is!;\the Revi~w Committee Recommendation}
Commission Member Heman(/ez mHtk a motion. seconded by Commission Member Curlin to
reconsider item number 8.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlmn; Miller. Noes: Commission Members ObeIhelman; Devlin. Abstain:
None. Absent: None.
Deputy City Attorney, Diane Roth, reiterated that when the Mayor and Common Council item
nwnber 25 was vetoed, it automatically cancelled the Community Development Commission item
nwnber 8 due to the wording of the motion being contingent on the adoption of item number 25.
Commission Member Hernandez disagreed because item number 8 was recommended to the
Community Development Commission from the Legislative Review Committee. The Commission
agreed to go with the amendment as recommended by the Legislative Review Committee.
Commission Member Hernandez introduced his attorney, Stephen J. Kaufman, DeAguilera &
Kaufman Professional Law COIporation, 341 W. Second Street, Suite 6A, San Bernardino, CA 92401.
Mr. Kaufman stated the Community Development Commission action is not subject to the veto power
of the Mayor. Due to the fact both items were acted on simultaneously, the Mayor does not have the
power to veto the Commission item no. 8 in the same action as the Council item number 25.
DEPUTY CITY ATTORNEY, DIANE ROTH, WAS REPLACED BY CITY
ATTORNEY, JAMES PENMAN AT 4:30 P.M.
City Attorney James Penman reminded the Commission that the City Attorney's Office
recommended that Council matters not be put on the Commission agenda for just this reason. Mr.
Penman reaffiuned that both Attorney Stephen Kaufman and Deputy City Attorney Diane Roth are
correct in advising that the vetoing of Council item number 25 would negate the Commission item
number 8 by virtue of how it was worded. He recommended putting Item No. 8 back on the agenda,
as Commission Member Hernandez requested.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlmn to adopt as policy the provisions of Resolution 94-46, as amended, relating to time limits for
the public to address the Chaiunan and Community Development Commission.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlmn. Noes: Commission Members ObeIhelman; Devlin; Miller. Abstain:
None. Absent: None.
CITY ATTORNEY JAMES PENMAN WAS EXCUSED AND DEPUTY CITY ATTORNEY
DIANE ROTH RETURNED AT 4:39 P.M.
COMMISSION MEMBER VALERIE POPE.LUDLAM WAS EXCUSED AT 4:39 P.M.
AGENCY ADMINISTRATION
10. S~N BERNARDINO COUNTY LAW LIBRARY RETENTION
(CUJlutlunih' JJevelupnJent Commission)
Chaiunan Minor opened the Public Hearing at 4:40 pm.
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Economic Development Agency Administrator, Timothy Steinhaus, stated this is a Public
Hearing to discuss and take possible action on the purchase and resale of the property on 402 North
"D" Street. The Agency plans to buy the building from Bank of America, then sell the building pad, l
plus 5,000 square feet additional land to the County Law Library. The Agency will retain the parking
area around it, and the Law Library will retain the building. ;,
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There were no public comments.
Commission Member Obemelman made a motion, seconded by Commission Member
Hernandez to close the Public Hearing.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Pope-Ludlam.
(Community Development Commission)
Commission Member Obemelman made a motion, seconded by Commission Member Miller
to approve the resolution as follows:
RESOLUTION NUMBER 5397
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO APPROVING A CERTAIN DISPOSmON AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO AND THE SAN BERNARDINO COUNTY LAW LffiRARY
BOARD OF TRUSTEES
Motion "A" carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Pope-Ludlam.
Commission Member Obemelman made a motion, seconded by Commission Member Miller
to authorize the Executive Director to execute an Assignment and Assumption Agreement (pertaining
to an asbestos removal contract) between the Redevelopment Agency and Bank of America National
Trust and Savings Association.
Motion "B" carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Pope-Ludlam.
Commission Member Obemelman made a motion, seconded by Commission Member Miller
to reaffinn its motion from the meeting of April 18, 1994, authorizing the Executive Director to
execute an Agreement of Purchase and Sale and Joint Escrow Instructions between Bank of America
National Trust and Savings Association and the Redevelopment Agency.
Motion "C" carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obemelman; Devlin: Miller. Noes: None. Abstain: None. Absent: P(lI'~:-Lt1dlml1.
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JOINT REGULAR MEETlNG
COMMISSION MINUTES
DATE: May 16, 1994
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DEVELOPMENT DEPARTMENT
11.
ALLOCATION OF LOW .A~p l\-JODERA 'I:~.INCOME HOUSING FUNDS WITH THE
INLAND V ALLEY DEVELOPMENT AGENCY
(Community Developaqent Commission)
Commission Member Obethelman made a motion, seconded by Commission Member
Hernandez to approve the resolution as follows:
RESOLUTION NUMBER 5398
RESOLUTION OF TIIE COMMUNITY DEVELOPMENT COMMISSION OF TIIE CITY
OF SAN BERNARDINO APPROVING AN AGREEMENT REGARDING TIIE
ALLOCATION OF LOW- AND MODERATE-INCOME HOUSING FUNDS WITH TIIE
INLAND VALLEY DEVELOPMENT AGENCY
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Pope-Ludlan.
COMMISSION MEMBER POPE.LUDLAM RETURNED AT 4:41 P.M.
12. ARROW VISTA HOUSING DEVELOPMENT PROJECT
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Miller to
approve item no. 12.
Commission Member Obethelman summarized past Commission actions relative to the Arrow
Vista Housing project and Dukes-Dukes and Associates. He recommended dropping the price of the
homes to expedite sales and/or availing monetary allowances to the buyer for improvements as oppose
to paying Pridemark Homes.
Discussion ensued relative to making repairs or improvements to the homes until a buyer has
been found to avoid any further vandalism, the proposed use of funds on repairs/ improvements, the
quality of selVice provided by the security company and so forth.
Commission Member Pope-Ludlam stated she wanted more infonnation on Inland Cities and
its marketing selVices (Motion B). She recommended Motion B be sent back to the next Housing
Committee and subsequently return to the Commission meeting on June 6, 1994.
Commission Member Pope-Ludlam made a motion. seconded by Commission Member
Hernandez to approve (Motj(lo "A" I the utjJi7--ation d Pridemark Homes to provide nrious contractor
selVices in conjunction with the Arrow Vis.a Housing Development Project. allocl1e tIlt' utilization of
$300,000 in low to moderate income housillg funds and authorize the Chainnan and Executive
Director to execute any documents necessmy to effectuate implementation of said contractor selvices.
JOINT REGULAR MEETING
COMMISSION MINUTES
DATE: May 16, 1994
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hemandez; Pope-Ludlmn; Miller. Noes: Commission Members Obethelman; Devlin. Abstain:
None. Absent: None.
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Commission Member Pope-Ludlmn made a motion, seconded by Commission Member
Hernandez to send Motion "B" back to the Housing Committee and subsequently return to the
Community Development Commission meeting on June 6, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Obethelman; Pope-Ludlmn; Miller. Noes: Commission Members Devlin. Abstain:
None. Absent: None.
COMMISSION MEMBERS CURLIN AND HERNANDEZ WERE EXCUSED AT 4:49 P.M.
ECONOMIC DEVELOPMENT AGENCY ADMINISTRATOR TIMOTHY STEINHAUS WAS
EXCUSED AT 4:59 P.M.
13. FY 1994.1995 COMMUNJTY DEV~LOPMENT BLOCK GRANT (CDBG) PUBLIC
HEARING. SCHEDULED FOR 3:00 P.M.
(Mayor and Common Counc:iI)
Mayor Tom Minor opened the Public Hearing at 4:59 pm.
Kenneth J. Henderson, Executive Director, Development Department summarized the
infonnation detailed in the Staff Report.
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Community Development Citizens Advisory Committee member Bill Lusk reported on the
four-day application review process, organization presentations, as well as the voting procedures used
for preliminary and final recommendations of program funding. He commended staff for their worlc
and conduct.
The following individuals requested that the Mayor and Common Council reconsider
Community Development Block Gmnt funding of their programs:
Mr. Seiuli Noa, 1604 Ninth Street, San Bernardino, CA, Vice President, Boys and Girls Club
of San Bernardino, for facility renovations and program administration.
RACHEL CLARK, CITY CLERK, LEFT THE COUNCIL MEETING AND WAS REPLACED
BY DEPUTY CITY CLERK, MELANIE VALE AT 5:01 P.M.
COUNCIL MEMBER F. J. CURLIN ARRIVED AT 5:01 P.M.
Mr. Jerry Herndon, 6130 Rogers Lane, San Bernardino, CA. Executive Director of the Boys
and Girls Club of San Bernardino.
Ms. Lori Panzino. P. O. Box 8127, ReuhUlus. CA. spoke in support of Belhlehem House for
road repair improvements.
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COUNCIL MEMBER DAVID OBERHELMAN WAS EXCUSED AT 5:12 P.M.
Ms. Peggy Huber, 25167 Besel Drive, Crestline, CA, representing Inland Empire Deaf
Community Services.
Mr. David Bell, 2596 Macy Street, San Bemardino, CA, representing Easter Seal Society,
Head Injury Support Services.
COUNCIL MEMBER DAVID OBERHELMAN RETURNED AT 5:14 P.M.
Ms. Dianne Von Habsburg, 477 West 14th Street, San Bemardino, CA, representing Easter
Seals Society, Head Injury Support Services.
Mr. Mike Blatnick, 879 West Edgemont, San Bemardino, CA, representing the Easter Seal
Society, Head Injury Support Services program.
Mr. Walter Sneider, 119 East Highland, San Bemardino, CA, Police Liaison for Kids Against
Crime.
Reverend Dennis Brown, 1599 North Mt. Vernon, San Bernardino, CA, representing Impact
Ministries and Crusades, crime prevention and drug program.
CITY CLERK, RACHEL CLARK, RETURNED AT 5:22 P.M.
Ms. Jean Stephens, President, 567 North Sierra Way, San Bernardino, CA, representing Young
Women Christian Association (YWCA), rear building construction and reroofmg of pool area.
Ms. Linda Drew, Teddy Bear Tymes, for additional $5,000 of tuition assistance for day care
services.
Pastor Ray Turner, 1583 West Union Street, San Bernardino, CA, representing Boys & Girls
Club of San Bemardino.
Dr. S'Ann Freeman, Ed.D., Feldheym Library, 555 West 6th Street, San Bemardino, CA,
representing the Theatrical Adult Literacy Program.
Council Member Obemelman made a motion, seconded by Council Member Miller to close the
Public Hearing.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hemandez;
Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
Council Member Obemelman made a motion, seconded by Council Member Miller to approve and
adopt the Community Development Citizen Advisory Committee (CDCAC) recommendations for FY
94/95 CDBG-funded prognuns. pf()jects ~md activitie~ ood authorize the Executive Dirr'ctor 10 submit
the FY 1994-1995 COBG Statement or Ohjectives and Projected Use of Funds to the II,S, Depm'tment
of Housing and Urban Development tHUD),
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JOINT REGULAR MEE11NG
COMMISSION MINUTES
DATE: May 16, 1994
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Council Member Oberhelman made a motion, seconded by Council Member Miller to approve
the resolution as follows:
RESOLUTION NO. 94-121
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING AND
DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE CDBG FUNDING
AGREEMENTS BETWEEN THE CITY OF SAN BERNARDINO AND THE
ORGANIZATIONS IDENTIFIED IN THE 1994-1995 CDBG FINAL STATEMENT OF
OBJECTIVES AND PROJECTED USE OF FUNDS APPROVED BY THE COMMON
COUNCIL ON MAY 16, 1994.
The above motions carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hemandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None.
COUNCIL MEMBER CURLIN WAS EXCUSED AT 5:32 P.M.
Discussion ensued regarding alternative sources of funding for the Boys & Girls Club,
Bethlehem House, Easter Seal Society, Kids Against Crime and Adult Literacy programs which were
not recommended for funding.
COUNCIL MEMBER CURLIN RETURNED AT 5:40 P.M.
Development Department Executive Director, Kenneth J. Henderson, reminded the Council
that the Community Development Citizens Advisory Committee established a Contingency List of
priority for additional program funding which should be considered before additional programs are
reconsidered.
...
;'i
Council Member Pope-Ludlmn made a motion, seconded by Council Member Hernandez to
refer unfunded programs (1) Boys & Girls Club, (2) Bethlehem House, (3) Easter Seals Society, (4)
Kids Against Crime, (5) Adult Literacy Program and the Community Development Citizen's Advisory
Committee contingency list recommendations to the Redevelopment Committee to explore additional
funding sources.
...",
The above motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None.
MEETING RECESSED
At 5:50 pm., the Mayor recessed the Mayor and Common Council, the Community
Development Commission and the Joint Powers Financing Authority meeting for a five-minute break.
MEETING RECONVENED
At 5:59 pm., the meeting of the M"ynr and Conunon Council, the Comn)1lJ).il\" Development
Commission and Joint Powers Fimmcillg AUllwrily was caJIed to order by Mayor Millor.
......
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ROLL CALL
Roll call was taken with the following members present: Chainnan Tom Minor; Commission
Members Edward Negrete; Ralph Hernandez; David ObeIhelman; Jerry Devlin. Absent: Commission
Members F. J. Curlin; Pope-Ludlam; Norine Miller.
ST AFF PRESENT
Kenneth J. Henderson, Executive Director, Development Department; Diane Roth, Deputy City
Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil AJvilO, Executive Assistant to the
Council; Shauna Clark, City Administrator; Rachel Clark, City Clerk; Melanie Vale, Deputy City
Clerk; Deborah Enay, Administrative Secretary, Development Department.
OTHERS IN ATTENDANCE
None.
COMMISSION MEMBERS VALERIE POPE-LUDLAM AND NORINE MILLER
ARRIVED AT 6:00 P.M.
COMMISSION MEMBER F. J. CURLIN ARRIVED AT 6:01 P.M.
COMMISSION MEMBER RALPH HERNANDEZ WAS EXCUSED AT 6:01 P.M.
RS-l. FREEW A Y HOME CENTER
(Community Development Commissioq.)
(Councilwoman Pope-Ludlam's Recommendation)
MOTION:
That the Community Development Commission consider providing financial assistance
to AI Steward and Associates, Inc., based upon the documentation submitted by Valley
Bank of Moreno Valley.
Kenneth Henderson, Executive Director, Development Department reported that new
infonnation was received this morning. Chino Valley Bank (CVB) is willing to make the $1 million
loan necessary to complete the proposed project. The tenns would be for five years (fully amortized),
unsecured collateral at prime 6.75% plus one 1 % interest rate. He stated the Commission may wish to
consider this infonnation in light of the fonn motion proposed by Councilwoman Pope-Ludlam.
COMMISSION MEMBER RALPH HERNANDEZ ARRIVED AT 6:04 P.M.
Commission Member ObeIbelman made a motion, seconded by Commission Member Curlin
to end this issue and not pursue it further.
Discussion ensued relnfive In fhe pp)posed loan tenns. lease payments (In lanrl :tIld huildings.
loan penalties. and so forth.
JOINT REGULAR MEETING
COMMISSION MINUTES
DATE: May 16, 1994
K,/H:d..:MINUlESltW-1..odo
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Mr. Henderson asked the Commission to consider either voting to conclude the Agency's
process with respect to this project; or, insbuct staff to pursue the necessary financing, with the
understanding that if this project is to worlc, the Agency will have to provide Steward and Associates
more liberal tenns than Chino Valley Bank to make the project worlc.
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A lengthy discussion ensued regarding monthly costs for debt service and ground lease.
Mr. Henderson mentioned the banking institutions evaluation of the loan was based on Mr.
Steward's originally submitted pro fonna. Based on the center's 144,000 square feet, assuming the
lease mte is 70~ per square foot, with a lease up scenario of 50% first year; 60-65% second year, and
up to 85&-90% occupancy. It also assumes the project cannot support additional debt service, over
and above the lease payments. Under this scenario, without additional Commission action that would
in fact subsidize the project, the debt service is about $30,000 per month. While the infonnation is
not very specific, the numbers at present would not allow the project to go forward as proposed. A
letter from Chino Valley Bank was just received this morning. Mr. Henderson emphasized that if
Commission desires staff to move forward, direction to do such would need to be provided.
Mr. Steward stated that his understanding was that the City was going to put up the $1
million. Based on the new infonnation from Chino Valley Bank, Mr. Steward stated he cannot accept
a five-year, fully amortized loan.
Mr. Henderson noted that Mr. Steward is back to approximately a $20,000 per month
payment, to make the land lease payments plus the bank fmancing worlc. He explained that the
current $20,276 a month payment would need to be reduced to approximately $7,000. The only way
this can be done is by increasing the loan teon. The bank is not going to increase the tenn by that
amount, so the Agency would have to assume the bank's assistance with the obligation of paying it off
in five years. In turn, Mr. Steward would be provided a fifteen-year tenn or a twenty-year tenn -
whatever it takes to reduce the monthly payment to $7,000 per month.
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Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin
to continue this item to the June 6, 1994 Community Development Commission meeting.
The motion carried as follows: Ayes: Commission Member Negrete; Curlin; Hernandez;
Miller. Noes: Commission Member Obemelman; Devlin; Pope-Ludlam. Abstain: None. Absent:
None.
14. ADJOURNMENT
Council Member Ralph Hernandez made a motion, seconded by Council Member Edward
Negrete to adjoum the Joint Powers Financing Authority meeting to Monday, June 20, 1994, at 11:00
a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California.
The motion carried as fol\(nvs: Ayes: Council Member Negrete; Curlin: HeJtlandez:
Obemelman; Devlin; Pope-Ludlall1: fl.lillcr. Noes: None. Abslain: None. Absellt: h)'Hle.
...
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15. ADJOURNMENT
At 6:26 pm., Council Member Dave Oberhelman made a motion, seconded by Council
Member Hernandez to adjourn the Community Development Commission meeting to Monday, June 6,
1994, at 11:00 a.m., in the Council Chmnbers of City Hall, 300 North "0" Street, San Bernardino,
California.
The motion carried as follows: Ayes: Council Member Negrete; Curlin; Hernandez;
Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None.
Respectfully submitted,
W{.~,
KENNETH J. HENDERSON, Executive Director
Development Department
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JOINT REGULAR MEETING
COMMISSION MINUTES
DATE: May 16,1994
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MAYOR AND COMMON COUNOL
AND THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE OTY OF SAN BERNARDINO
MINUTES
REGULAR MEETING
June 6.1994
11:00 8.m.
The Regular Meeting of the Mayor and Common Council and the Community Development
Commission was held in the Council Chambers, City Hall, 300 North "0" Street, San Bernardino, California
and called to order by Mayor Tom Minor at approximately 11:04 a.In., on Monday, June 6, 1994.
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Dr. F. 1. Curlin; Ralph Hernandez; David Oberhelman; Jeny Devlin; Valerie
Pope-Ludlam; and Norine Miller. Absent: None.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark,
City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
There were no public comments.
CONSENT CALENDAR
The Commission Members requested items numbered "2", "3" and "4" be removed from the
Consent Calendar.
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that
the Consent Calendar items numbered "I" through "4" be adopted except for items numbered "2", "3"
and "4", respectively.
REGULAR MEETING
KJH:lmp:cmin6rl
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COMMISSION MINUTES
June 6, 1994
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
lIIIlIIIIIIit
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1. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community Develooment Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that
the minutes of the Community Development Commission of the City of San Bernardino for the meetings of
April 18, 1994 and May 2, 1994, be approved as submitted in typewritten form.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
2. REDEVELOPMENT COMMITTEE MINUTES
(Community Develooment Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that the minutes for
the Redevelopment Committee Meeting of May 19, 1994 were incomplete. He requested the Commission
approve the minutes of April 7, 1994, and April 21 , 1994 and allow the Agency to complete the minutes for
May 19, 1994.
......
Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that
the minutes of the Redevelopment Committee of the City of San Bernardino for the meetings of April 7, 1994
and April 21 , 1994 be received and filed.
-
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
3. AWARD OF BIDS - NEW CENTRAL POLICE STATION
(Community Develooment Commission)
Commission Member Hernandez expressed concern regarding the use of Minority Business
Enterprise/W omen Business Enterprise (MBElWBE) firms for this project.
Commission Member Pope-Ludlam concurred indicating that she would appreciate hearing a short
presentation regarding the use of MBElWBE. She also asked the amount of funds being bonded for this
project.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Agency
was bonding $10 million and the City, $5 million for the construction of the facility.
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June 6, 1994
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Commission Member Miller requested the Commission Members be provided a list showing all the
funds spent to date on this project.
Rocko Davis, Contractor, stated that he met with the Mayor, several members of the Commission
and staff about concerns he had regarding the concrete bid package. He questioned the good faith effort that
was put forth in the bid
Mr. Davis explained that he contacted one of the MBElWBE developers listed on the bid sheet and
they informed him that they were never contacted by the low bidder nor the Agency for participation in this
project. Mr. Davis then stressed the need for the Agency to contact developers to ensure proper use of
MBElWBE.
Charles Montgomery, Contractor, stated that there could possibly be a problem with the way the
contract for the police facility was set-up and awarded. He recommended the City review the policy used to
award the bids to ensure that nothing was illegally done.
Commission Member Hernandez stated that CAL TRANS provided him with a huge document that
listed the businesses in the area who qualify as MBElWBE businesses.
Kenneth J. Henderson, Executive Director, Development Department, discussed previous actions by
the Commission regarding this item. He commented on the local preference criteria used when selecting
contractors and also the selection process used to select MBElWBE.
Commission Member Hernandez questioned the difference in costs for concrete construction between
Bogh Construction with a bid amount of $791,900 and Guy Yocom Construction at $646,094.
Mr. Henderson explained that the bid received from Guy Yocom Construction was incomplete at the
time it was considered for award.
Dennis A. Barlow, Senior Assistant City Attorney, explained the process previously used when
hiring contractors for large projects. He stated that staff elected to hire independent contractors for each trade
needed r~ther than hiring a general contractor who would be required to subcontract for services. He
indicated that a project administrator would oversee the entire project.
Commission Member Pope-Ludlam expressed concern regarding the process used to contract this
project. She stated that more time was needed to review this issue and requested a special meeting be held
Commission Member Oberhelman questioned the possibility of the police department locating to the
San Bernardino International Airport Authority (SBIAA) until the completion of the new station. He also
commented on the different dollar amounts listed in the staff report versus the bid sheet for the same contract.
He also felt more time was needed to review this project before proceeding.
Mr. Henderson explained the discrepancy in dollar amounts listed in the staff report indicating that
after the low bid was awarded to the contractor, staff conducted value engineering with the apparent low
bidder which resulted in the bid amounts being lowered.
REGULAR MEETING
KJH:lmp:cmin6rl
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June 6, 1994
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Chairman Minor stated that the general contractor was already awarded for this project. He
questioned the legality of making any changes at this time.
....
Mr. Steinhaus stated that all bids received were good for thirty (30) days.
--
Commission Member Negrete stated that the Commission Members need as much information as
possible when making decisions on this project. He requested staff attach all pertinent documents to the staff
report for the Commission's review.
Commission Member Curlin questioned whether or not a two (2) week time delay would have a
major impact on this project.
Mr. Steinhaus stated that the bids were received May 9, 1994. Therefore, they would be good until
June 9,1994. He also stated that the grading was about 95% complete.
Commission Member Miller asked if there was a written agreement that verified that the contractors
were in agreement with the lower amount listed in the staff report.
Mr. Henderson stated that there was a verbal agreement made during negotiations of the project
which would be included in the contract if the Commission awarded the bid.
Discussion ensued regarding the process used to request information from staff regarding this project
and also the need to ask the contractors to extend their bids.
Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, that ,.,
the matter be continued to June 20, 1994, to give Commission Members an opportunity to address questions
to the Economic Development Agency staff, that the response be put in writing; and that EDA staffbe .....J
directed to extend the bids to a date past the next meeting.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
RECESSED MEETING
Chairman Minor recessed the meeting of the Mayor and Common Council and the Community
Development Commission until 3:00 p.m.
MEETING RECONVENED
The meeting of the Mayor and Common Council and the Community Development Commission was
reconvened by Chairman Tom Minor at approximately 6:08 p.m., on Monday, June 6, 1994 .
REGULAR MEETING
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June 6, 1994
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ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie
Pope-Ludlam; and Norine Miller. Absent: None.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark,
City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
4. INLAND EMPIRE SYMPHONY: STORAGE SPACE IN 201 NORTH "E" STREET
BUILDING
(Community Develonment Commission)
Commission Member Oberhelman stated that the Guthrie Library could possibly generate income for
the Symphony. He objected to the Agency providing them assistance of up to $5,000.
Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, to
authorize an amount not-to-exceed five-thousand dollars ($5,000) to improve prior approved lease storage
space to the Inland Empire Symphony on the first floor of the old "Thrifty Building" located at 201 North "E"
Street, subject to the Symphony matching each dollar the Agency contributes.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the
Commission previously approved this lease to the symphony in February, 1994. However, due to the
condition of the space, the symphony elected to locate to another site.
Mr. Steinhaus stated that the symphony was unsuccessful in its search; therefore, it is requesting the
Agency assist with the repairs needed for the 201 location. He indicated that Main Street had a potential
tenant for use of this space and that the City Telecommunications Division was also interested in the space.
Commission Member Devlin questioned whether or not $5,000 was an accurate estimate for repairs
to the space.
Mr. Steinhaus stated that it was staffs estimate that $5,000 would complete all necessary repairs to
the space. He indicated that the Symphony was also requested to obtain bids on the repairs needed for a price
comparison. He also indicated that the tenant improvements made which include electricity and bathrooms,
would be consistent with improvements required by any other user.
REGULAR MEETING
KJH:lmp:cmin6r 1
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June 6,1994
5
Commission Member Pope-Ludlam recommended the Symphony use the space that was previously
reserved for the Chamber of Commerce.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller, that
the Inland Empire Symphony be relocated to the space previously reserved for the Chamber of Commerce;
that the Community Development Commission authorize an amount not-to-exceed five-thousand dollars
($5,000) in matching funds for improvements; and that the issue of fire sprinklers be addressed.
Dennis A. Barlow, Senior Assistant City Attorney, stated that the space must be equipped with fire
sprinklers per the Fire Department.
Commission Member Devlin asked if the space was acceptable to the Symphony.
Susan Feller, Inland Empire Symphony, agreed that the square footage of the space would be
acceptable.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
5. FINANONG OF CENTRAL POLICE STATION
(Community DeveloDment Commission)
Councilman Oberhelman made a motion, seconded by Councilman Hernandez, to close the public
hearing.
The motions carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
Councilman Oberhelman made a motion, seconded by Councilman Negrete, that the following
resolution be approved and adopted:
RESOLUTION NUMBER 94-132
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO THE
BENEFIT OF A POLICE STATION FACILITY TO STATE COLLEGE PROJECT NO. 4
Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that
the following resolution be approved and adopted:
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RESOLUTION NUMBER 5399
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO, CALIFORNIA APPROVING THE PROVISION OF FUNDS FOR THE
ACQUISITION AND CONSTRUCTION OF A POLICE STATION FACILITY AND MAKING
FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF SAID FACILITY TO THE
STATE COLLEGE PROJECT NO.4
Timothy C. Steinhaus, Administrator, Economic Development Agency, commented on use of the
funding sources of the State College Project Area.
Councilwoman Pope-Ludlam stated that this project would drain the State College Area. She said
that if a major project was to be built in this area, there would be no funding available.
Mr. Steinhaus explained that there have been various discussions regarding the funding of the police
facility. He indicated that there would still be bonding capability left in the State College Area.
Timothy Sabo, Special Counsel, Sabo and Green, briefed the Council on the previous discussion held
regarding the financing for the facility. He then explained how the Agency became involved in the fmancing
process and the need to use the funds available from the State College Project Area.
Councilwoman Ludlam spoke of requests received from developers who indicate that they can build a
police station for the City and sell it back to the City at the end of a certain time period for SI.
Mr. Sabo explained that it would cost the City more in the long run to participate in such a plan
versus building the facility itself.
The motions carried by the following vote: Ayes: Council Members Negrete; Curlin; Oberhelman;
Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Councilman Hernandez Absent: None.
6. SAN BERNARDINO COUNTY LAW LIBRARY RETENTION
(Community Develooment Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Miller, to
approve the expenditure of an additional S600,000 to purchase 402 North "0" Street from Bank of America
with said amount to be reimbursed to the Agency by the Law Library upon sale of the property to the Law
Library.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Law Library
was contributing $400,000 of the total ofSl million for this project.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
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7. EMPOWERMENT ZONESIENTERPRISE COMMUNITIES GRANT APPLICATIONS
(Mavor and Common Council)
(Community Develooment Commission)
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Councilwoman Pope-Ludlam made a motion, seconded by Councilman Negrete, that the following
motions be approved and adopted:
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That the Mayor and Common Council and the Community Development Commission authorize the
execution of a Nominating Local Governments Responsibilities Agreement, between the City of San
Bernardino and the State of California.
That the Mayor and Common Council and the Community Development Commission authorize the
execution of an application form (HUD-40003) for the nomination of an area for Empowerment
Zones/Enterprise Communities status.
That the Mayor and Common Council and the Community Development Commission approve the
submission of a yet-to-be-developed Strategic Plan, a critical component of an Empowerment
Zones/Enterprise Communities application package.
That the Mayor and Common Council approve an appropriation of $300,000 in funding, to assist in
the implementation of Empowerment Zones/Enterprise Communities programs and activities, subject
to receipt of a federal zone designation; also that the Economic Development Agency budget be
increased accordingly.
Kenneth 1. Henderson, Executive Director, Development Department, stated that the proposed target
area was determined by meeting certain eligibility requirements set forth in the Federal Register.
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The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez;
Devlin; Pope-Ludlam; Miller. Noes: Councilman Oberhelman. Abstain: None. Absent: None.
8. FEDERAL BANKRUPTCY COURT RETENTION - YMCA PARKING LOT
(Community Develooment Commission)
Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, to
authorize the execution of a Parking Agreement with the YMCA to provide 30 parking spaces, on a
temporary basis, at a rental rate not-to-exceed $780 per month for usage by the Bankruptcy Court.
Commission Member Hernandez commented on actions taken on this item at a previous Commission
Meeting at a cost to the Agency of $280,000. He also commented on the need to find a site for the Social
Security Office since this space was being used for parking.
Discussion ensued regarding the locating of the Social Security Office to Hospitality Lane. The
Commission Members also discussed transportation needs for the elderly to the Social Security Office.
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Commission Member Negrete spoke about all the vacant buildings within the City. He felt a new
location for the Social Security Office could be found in one of those buildings.
Commission Member Oberhelman stated that he would abstain from voting on this item since he was
on the Board of Directors for the YMCA.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Oberhelman.
Absent: None.
9. PA YffRA VEL VOUCHER SUBMISSION AND REIMBURSEMENT PROCESS
(Communitv Develooment Commission)
Commission Member Curlin made a motion, seconded by Commission Member Pope-Ludlam, that
this item be tabled.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
10. SAN MARCOS STREET IMPROVEMENT PROJECT
(Communitv Develooment Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that staff would like to
continue this item until August 1, 1994, and that staffbe allowed to issue an RFP for this project.
Commission Member Curlin made a motion, seconded by Commission Member Miller, that the
matter be continued to August 1, 1994, and that staff be directed to issue an RFP for the San Marcos
Improvement Project.
The motion carried by thefollowing vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
11. FREEWAY HOME CENTER
(Communitv Develooment Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Negrete, that
this matter be referred to the Redevelopment Committee.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
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The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission
Member Miller.
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RS-2. OFFICE LEASE - 201 NORTH "E" STREET - JAOUESS AND ASSOCIATES
(Community DeveloDment Commission)
Kenneth 1. Henderson, Executive Director, Development Department, indicated that the proposed
lease agreement with Jaquess and Associates would be for $1.00 a square foot. He recommended the
Commission approve the agreement and allow staff to draft and execute a lease with the proposed tenant.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to
authorize the Executive Director to draft and execute a lease and all other necessmy documents with John
Jaquess and Ken Topping, Professional Planning Consultant Firm, for the utilization of approximately 1,258
square feet of office space on the second floor of the 201 Building.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
RS-3. OFFICE LEASE - 201 NORTH "E" STREET - A.P. ENGINEERING COMPANY
(Community Development Commission)
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Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to
authorize the Executive Director to draft and execute a lease and all other necessmy documents with A. P.
Engineering Company, for the utilization of approximately 154 square feet of office space on the second floor
of the 201 Building.
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Kenneth 1. Henderson, Executive Director, Development Department, stated that this lease would
have the same terms as the previous lease (Agenda item #RS-2).
Commission Member Oberhelman questioned whether or not the Agency Administrator could have
executed this type of lease without Commission approval.
Mr. Henderson stated that the Agency Administrator could have executed this lease as long as it is
month-to-month tenancy.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
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RS-l. OFFICE LEASE - PUBLIC ENTERPRISE CENTER - THE COMMUNITY
DEVELOPMENT CORPORATION
(Community Develooment Commission)
Commission Member Pope-Ludlam excused herself from voting on this item since she was affiliated
with this organization.
COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 7:04 P.M.
Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to
authorize the Executive Director to draft and execute a lease and all other necessary documents with the
Community Development Corporation for the utilization of approximately 1,501 square feet of office space
in the Public Enterprise Center.
Kenneth J. Henderson, Executive Director, Development Department, stated that this lease was for
the Agency-owned Public Enterprise Center (PEC) Building. He stated that the cost for the space would
begin at $.50 a foot and top out at $.65 a foot.
COMMISSION MEMBER CURLIN WAS EXCUSED AT 7:05 P.M.
COMMISSION MEMBER CURLIN RETURNED AT 7:06 P.M.
Commission Member Hernandez expressed concern regarding the condition of the PEC Building and
the need for management at the building. He recommended the staff and Commission Members tour the
facility.
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that staff would tour
the facility and prepare a report on its condition.
Commission Member Oberhelman concurred with Commission Member Hernandez regarding the
condition of the building. He questioned whether or not the cost for the space was a competitive rate to other
tenants in the building.
Mr. Steinhaus stated that most tenants in the PEC building were Community Services tenants.
Therefore, their rates were either lower or at no cost.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Commission Member Pope-
Ludlam.
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12. ADJOURNMENT
At 7:09 p.m., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, June 20, 1994 at 11 :00 a.m., in the Council Chambers of City Hall,
300 North "0" Street, San Bernardino, California.
Respectfully submitted:
KE~~NDERSON
Executive Director/
Secretary to the Commission
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COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
MINUTES
ADJOURNED REGULAR MEETING
June 24, 1994
11:308.m.
The Adjourned Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was held in the Council Chambers, City Hall, 300
North "D" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately
11:34 a.m., on Friday, June 24,1994.
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Dr. F. J. Curlin; David Oberhelman; Jerry Devlin. Absent: Commission
Members Ralph Hernandez; Valerie Pope-Ludlam; and Norine Miller.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine
Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark,
City Clerk; Melanie Vale, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
There were no public comments
CONTINUED FROM JUNE 20, 1994
1. AWARD OF BID - NEW CENTRAL POLICE STATION
(Community Development Commission)
Chairman Minor read a portion of a faxed letter received from Rocco Davis, Chief Investigator,
Center for Contract Compliance. The letter informed the Commission that the center would take no legal
action against the City regarding the award of bids.
Commission Member Hernandez expressed concern regarding the amount of funds available for
change orders. He stated that it would be encouraging to the contractors to submit change orders since the
funds were available.
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Commission Member Devlin expressed concern regarding the Commission micro-managing this
project.
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Commission Member Oberhelman commented on the language used in the agreement stating that it
would not be easy for contractors to submit change orders and have them approved.
Commission Member Negrete recommended the verbiage in the agreement be changed from "change
orders" to "contingencies".
Chairman Minor recommended staff closely monitor this project.
Commission Member Devlin made a motion, seconded by Commission Member Negrete, that the
bids be awarded in the following amounts to the following companies for work as noted:
D.
E.
F.
G.
H.
A.
B.
C.
$726,500 to Boih Construction. . . . . . . . . . for concrete construction
$141,893 to B & B Steel. . . . . . . . . . . . . . . . for concrete reinforcement
$973,307 to Columbia Steel ............ for structural steel, metal
fabrications, and metal stairs
$154,640 to Rowest Company .......... for steel floor and roof deck
$ 87,200 to Anninf Johnson COlI\PaIlY '" for composite insulating concrete
$ 79,900 to U.S. Elevator. . . . . . . . . . . . . . for hydraulic elevators
$336,172 to Continental Plumbirli- Inc. '" for plumbing
$ 3,885 to New Frontier Ente(prises . . . . . for underslab electrical
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Commission Member Devlin made a motion, seconded by Commission Member Negrete, to
authorize staff to administer and execute contingencies fund limited to the amount of $243,570.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
NB-l. LOAN GUARANTEE - RUBA ENTERPRISE.~ - MR. ATEF FAKHOURY _ AM.PM
MARKET. 5985 PALM A VENUE
(Community DevelQpment Commission)
Commission Member Negrete made a motion, seconded by Commission Member Devlin, that the
need to take action arose after the posting of the agenda.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the ARCO
Station was in immediate need of a loan guarantee that could not wait until the meeting of July 5, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None.
Absent: None.
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Kenneth J. Henderson, Executive Director, Development Department, explained that Upland Bank,
Ruba Enterprises' Construction Lender, committed in writing to also provide Ruba with permanent financing
after the construction of the station. Upland Bank has since informed Ruba Enterprises it will no longer be
able to provide Ruba with permanent fmancing.
Mr. Henderson explained that Valley Bank. was willing to provide Ruba Enterprises with permanent
financing, but only with an Agency guarantee on the complete amount of the loan. He stated that staff
provided Valley Bank with a counter-offer of a $300,000 loan guarantee, but was denied.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 11:50 A.M.
Mr. Henderson stated that the bank could possibly release the Agency's guarantee after one or two
years if the applicant remains current on his loan; however, a normal guarantee remains in effect the entire
length of the loan.
Commission Member Devlin questioned the type of deal this would be for the Agency.
Mr. Henderson emphasized that the creditworthiness of the applicant was excellent. The only
concern faced by the Agency was guaranteeing a AM-PM Market.
Commission Member Devlin commented on the applicant's intent to build a Denny's Restaurant
across the street from the AM-PM Market.
COMMISSION MEMBER HERNANDEZ RETURNED AT 11:54 A.M.
Discussion ensued regarding the letter sent to the Agency regarding its guarantee.
Commission Member Pope-Ludlam reminded the Commission that the AM-PM Market generates
sales tax and hires entry level positions for the City. She commented on the success of the market. She
reiterated the need to approve a loan guarantee for the applicant in order to avoid foreclosure proceedings on
his construction loan.
Mr. Henderson stated that the property was already in foreclosure and the applicant is personal
property was at risk.
Commission Member Pope-Ludlam stated that once property is in foreclosure, it becomes difficult to
obtain fmancing.
Atef Fakhoury, owner of Ruba Enterprises, stated that the property was in foreclosure because his
construction was not completed on time. He explained that he had a construction loan for nine (9) months
and a take-out loan for three (3) months. He indicated that due to various reasons, his construction was not
completed within the time limit, and therefore, Upland Bank decided not to award him permanent fmancing.
He stated that he had tried over 16 different institutions with no success.
Mr. Fakhoury indicated that foreclosure on the property began March 24, 1994.
Commission Member Miller questioned comments she was told regarding problems with the City
Planning Department.
Mr. Fakhoury stated that he was told by the Planning Department that they were short staffed;
therefore, he received his permits later than anticipated.
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Commission Member Hernandez asked if there was any paperwork prepared for this item.
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Commission Member Pope-Ludlam requested the Commission grant contingent approval to the
applicant for the loan guarantee.
Mr. Steinhaus explained that staff would continue negotiating with Valley Bank to try and place a
time limit on the loan guarantee.
Commission Member Devlin made a motion, seconded by Commission Member Pope-Ludlam, to
approve in concept, providing a loan guarantee in the amount of $1.3 million to Mr. AtefFakhoury on his
loan from Valley Bank.
The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman;
Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Members Curlin; Hernandez. Absent:
None.
2. ADJOURNMENT
At 12:18 p.m., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Tuesday, July 5, 1994 at 11:00 a.m., in the Council Chambers of City Hall,
300 North "0" Street, San Bernardino, California.
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Respectfully submitted:
KENNETHJ.H NDERSON
Executive Direct r/
Secretary to the Commission
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