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HomeMy WebLinkAbout02- Development Department - - wa' 'W-."',, ..000016.- MAYOR AND COMMON COUNCIL COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO M I N U T E S JOINT REGULAR MEETING May 24, 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 Chairman W. R. Holcomb at approximately 11:18 a.m. , on Monday, May 24, 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 W. R. Holcomb; Commission Members Esther Estrada; Ralph Hernandez; Michael Maudsley and Tom Minor. Absent: Commission Members Jack Riley (late) ; Valerie Pope-Ludlam (late) and Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Ann Harris, Executive Director, Main Street; Dennis A. Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachael Clark, City Clerk; Diane Jones, Deputy City Clerk; Deborah Enay, Administrative Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo & Green; Jim Iverson and Rhonda Connelly, Miller & Schroeder Financial, Inc. ; and Maria Hunt, The Sun Newspaper. ---------------- CONSENT CALENDAR COMMISSION MEMBER RILEY ARRIVED AT 11:19 A.M. Commission Members Maudsley and Hernandez requested that items numbered "3", "5" and "6" be removed from the Consent Calendar. Commission Member Hernandez made a motion, seconded by Commission Member Reilly, that the Consent Calendar items numbered "1" through "6" be adopted except for items numbered "3", 115" and "6" respectively. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor. Noes: None. Abstain: None. Absent: Commission Members Pope-Ludlam; Miller. JOINT REGULAR MEETING COMMISSION MINUTES KJH:dle:cmin5jr2 - 1 - MAY 24, 1993 1. COWMITY DEVELOPMENT COMMISSION MINUTES (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Reilly, that the minutes of the Community Development Commission of the City of San Bernardino for the meetings of April 19, 1993, April 26, 1993, May 10, 1993 and May 13, 1993, be approved as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor. Noes: None. Abstain: None. Absent: Commission Members Pope-Ludlam; Miller. Development Department 2. COURT STREET SQUARE CHANGE ORDERS (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Reilly, that the Community Development Commission approve the allocation of a net increase of $23, 895 to provide for acceptance of change orders covering necessary work performed on the Court Street Square Project by Bob Britton, Inc. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor. Noes: None. Abstain: None. Absent: Commission Members Pope-Ludlam; Miller. 4 . 201 NORTH "E" STREET BUILDING - HEATING AND AIR CONDITIONING CONTROLS (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Reilly, that the Community Development Commission receive and file the attached staff report informing the Commission of the processing of a purchase order with Ontario Refrigeration Company in the amount of $15, 874 to design and install heating and air conditioning controls in two second floor suites of Building 201. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor. Noes: None. Abstain: None. Absent: Commission Members Pope-Ludlam; Miller. 3. MILLENNIUM SENIOR HOUSING PROJECT (Community Development Commission) Commission Member Maudsley announced he would like to abstain on this vote. JOINT REGULAR MEETING COMMISSION MINUTES KJH:dle:emin5jr2 - 2 - MAY 24, 1993 Ja Commission Member Estrada made a motion, seconded by Commission Member Hernandez, that the Community Development Commission authorize the Chairman and the Executive Director to execute a Loan Agreement between the Redevelopment Agency, Cliff Carel and Associates and Escrow Funding Service for financial assistance in an amount not to exceed $1, 543, 220 to facilitate the construction of a forty-five (45) unit senior citizen housing complex. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Minor. Noes: None. Abstain: Commission Member Maudsley. Absent: Commission Members Pope-Ludlam; Miller. 5. 201 NORTH "E" STREET - TENANT IMPROVEMENTS (Community Development Commission) Commission Member Hernandez indicated that Pence Construction Company, a competitor in the bidding process, wrote a letter of concern regarding this project. Kenneth Henderson, Executive Director, Development Department indicated that Pence Construction representatives stated they would be attending this meeting to voice their concerns; however, they were not present. Commission Member Hernandez made a motion, seconded by Commission Member Minor, that the Community Development Commission award a contract in the amount of $266, 048 to Kirkley Development Incorporated for the construction of tenant improvements at 201 North "E" Street and authorize the Executive Director to execute same. Commission Member Hernandez made a motion, seconded by Commission Member Minor, that the Community Development Commission allocates $321, 942.28 for construction, contingency and contract management of office tenant improvements at 201 North "E" Street. The motions carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Minor. Noes: Commission Member I Maudsley. Abstain: None. Absent: Commission Members Pope-Ludlam; Miller. COMMISSION MEMBER VALERIE POPE-LUDLAM ARRIVED AT 11:22 A.M. Continued from April 19, 1993 6. SOUTHEAST INDUSTRIAL PARK BOND REFUNDING (Joint Powers Financing Authority) Councilman Maudsley reiterated his concerns regarding to the large fees associated with the cost of issuing the bonds. He did not see any validity of spending $1, 000, 000 to save $500, 000 and suggested finding a way to pay the bonds off early to save an equal amount of money. JOINT REGULAR MEETING COMMISSION MINUTES KJH:dle:cminsjr2 - 3 - MAY 24, 1993 ,M Jim Iverson, Exe tive Vice President, Miller _ Schroeder Financial, Inc. , referred to Exhibit G and presented comparisons of the "currently" outstanding debt service schedules to the "proposed" debt service schedules. Monetary benefits were highlighted. He pointed out the present value of savings is $610, 000; however, it would be $992, 870 over the entire life of the loan. Councilwoman Estrada questioned the costs for the underwriters discount, bond issuance premium, escrow fees, etc. Mr. Iverson informed the Commission that the costs/fees were included in the $992, 870 figure. A lengthy discussion ensued. Mr. Iverson explained specifics relating to the various costs associated with the bond issuance, the U.S. Treasury regulations governing such transactions, interest rate calculations and rebate requirements, pre-payment penalty fees, and so forth, as outlined in the Staff Report. Councilwoman Estrada noted she did not have a problem with the savings, but for the purpose of information and record keeping she felt there should be a clear explanation of gross savings and net savings. Council Member Estrada made a motion, seconded by Council Member Reilly, that the following resolution be approved and adopted: RESOLUTION NUMBER J-19 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $7,500, 000 SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA) , APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF. The motions carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Council Member Miller. (Mayor and Common Council) Council Member Estrada made a motion, seconded by Council Member Reilly, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-152 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ISSUANCE OF NOT TO EXCEED $7, 500, 000 SAN BERNARDINO JOINT POWERS AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA) AND THE BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF THE PROCEEDS THEREFROM PURSUANT TO THAT CERTAIN LOAN AGREEMENT. JOINT REGULAR MEETING COMMISSION MINUTES KJH:dle:cmin5jr2 - 4 - MAY 24, 1993 The motions carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Council Member Miller. (Community Development Commission) Commission Member Estrada made a motion, seconded by Commission Member Reilly, that the following resolution be approved and adopted: RESOLUTION NUMBER 5366 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 IN A TOTAL AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $7, 500, 000 TO REFUND CERTAIN OUTSTANDING TAX ALLOCATION BONDS, AUTHORIZING THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION AND DELIVERY OF THE FORMS THEREOF. The motions carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. END OF CONSENT CALENDAR ---------------------- Continued from May 13, 1993 7. FINANCING OF NEW POLICE FACILITY (Community Development Commission) Mayor Holcomb stated this item will be discussed in conjunction with item number 37 on the Mayor and Common Council agenda which reads as follows: "Public Hearing - RESOLUTION ORDERING THE VACATION FOR THE PORTION OF 7TH STREET LYING BETWEEN "D" STREET AND "E" STREET IN THE CITY OF SAN BERNARDINO AND RESERVING EASEMENTS OVER THE ENTIRE AREA FOR SANITARY SEWER, WATER, STORM DRAINS, STREET LIGHTS, AND TRAFFIC SIGNALS AND APPURTENANT FACILITIES FOR THE CITY OF SAN BERNARDINO, AND ALSO RESERVING EASEMENTS FOR GENERAL TELEPHONE, PACIFIC BELL TELEPHONE, SOUTHERN CALIFORNIA EDISON AND SOUTHERN CALIFORNIA GAS COMPANY FOR PUBLIC UTILITIES THEREIN. " Kenneth Henderson, Executive Director, Development Department passed out a memorandum (dated May 10, 1993) for the Council's consideration and use at the Public Hearing relating to the impact of the vacation on the site's parking capacity, traffic, circulation and property owners. Mr. Henderson reported there is a construction estimate of $7.8 million from Koll Construction (excluding furniture, fixtures and equipment) which can be financed separately. He summarized the six JOINT REGULAR MEETING KJ$:dle:cmin5jr2 COMMISSION MINUTES - 5 - MAY 24, 1993 _,2/ OEM alternatives for the financing of the police facility as outlined in the memorandum. Based upon the alternatives, the need to move the (40, Police Department as soon as possible, the impact the demolition of the existing Police facility will have on future development, the need not to incur additional indebtedness on behalf of the City and Agency and the ability to adhere to the existing construction schedule, staff recommends the adoption of alternative #5. Mr. Henderson made reference to the thirteen priority projects established at the March 1992 workshop which totaled $15,700, 000. He said staff is recommending that the Commission reappropriate $9, 000, 000 of the original amount ($15,700, 000) approved. This motion would take the money set aside for blight removal and beautification of $1 million; the original contribution to the Police Facility for $2 million; the Platt Building demolition $500, 000; the Rancon whole- block development for $4 .5 million and the $1 million set aside for the Mobilehome Park to finance the new Police Facility. Mr. Henderson advised the Commission that two other potentional sources of funding for the Police Facility could be the HAB loan and/or Carousel Mall loan, both which can be cashed out or borrowed against. As information, Mr. Henderson reported that the priorities remaining untouched are as follows: Main Street Streetscape - Phase II ($1, 000, 000) Mt. Vernon Specific Plan Implementation ($2, 000, 000) Performing Arts Center ($1, 000, 000) Public Improvements, Wal-Mart at Highland and Boulder ($800, 000) Community Hospital Medical Office Building ($1, 250, 000) Mr. Henderson stated $400, 000 has already been spent in getting the project construction ready. Staff anticipates being able to grade the site, contingent on Commission approval, within the next 45 days. Commission Member Reilly made a motion, seconded by Commission Member Minor, that the Community Development Commission adopt alternative #5 as set forth in the attached Staff Report relative to the financing of the new police facility. Further, that the Commission review its priorities adopted on March 7, 1992 and take all necessary and appropriate actions resulting in the reappropriation of tax allocation bond proceeds in an amount sufficient to finance the construction and furnishing of the new police facility. Commission Member Hernandez stated, for the record, he has never supported the Super Block concept because the Council has never received all of the facts. He felt staff did not justify to the public what was the higher priority -- a new Police Department or the development of the downtown Super Block to accommodate Caltrans and the courts. Commission Member Hernandez suggested using existing buildings and establishing Satellite Police Stations throughout the City instead of building a new police station. He voiced concerns about the non-implementation of consultant's recommendations, vacillation of the demolition of the Platt Building and so forth. JOINT REGULAR MEETING COMMISSION MINUTES Amok KJH:Clle:cmin5jr2 - 6 - MAY 24, 1993 ._21� Timothy Steinhaus, Administrator, Economic Development Agency informed the Commission that a meeting with the State has been scheduled for June 4, 1993. At that time the State will produce a written proposal. Chairman Holcomb indicated the State said it would give the City 20-25 year leases and felt these leases would be strong enough to finance at least 900 of the project. He reminded the Commission that the City can finance tax exempt bonds, 2% below the private sector. The money saved could go toward additional amenities and arts. Mayor Holcomb said Governor Wilson supports this project. The Mayor reiterated that the State will not put anything in writing until there is knowledge that the Commission will move forward with building the new Police Facility. COMMISSION MEMBER REILLY WAS EXCUSED AT 11:58 A.M. COMMISSION MEMBER REILLY RETURNED AT 11:59 A.M. Discussion ensued regarding the costs involved to purchase the land, construct the building and parking lot; the support of property owners; replacement parking sites and so forth. Mr. Henderson referred to alternative #3 in the staff report which clarified Commission members inquiries regarding a complete breakdown of costs. He noted that the recommendation being made excluded the furniture, fixtures and equipment costs and $500, 000 for the street vacation. Mr. Henderson estimated the Seventh Street purchase at between $300, 000 - $500, 000. MAYOR HOLCOMB WAS EXCUSED AT 12:10 P.M. MAYOR HOLCOMB RETURNED AT 12:11 P.M. Commission Member Estrada asked if alternative #4, could be altered by assessing the City's parcels less than the illustrated $17 fee. In this way, the $10 million issue may not be necessary and bond proceeds could be used for the difference. Mayor Holcomb asked the Commission to focus on the objective of building the police station now and emphasized that almost $500, 000 has been spent on plans, specifications and engineering costs. He advised the Commission to choose the source of money to use as the approval of this item was contingent on developing. the State's office complex in San Bernardino. Mayor Holcomb reminded the Commission that there is already $2 million appropriated for a new police facility and $4, 500, 000 for Super Block. He reminded the Commission they already committed themselves to buy the block by paying for the engineering fees. The next step is for the Commission to decide which option to take. A lengthy discussion ensued regarding the proposed alternatives and/or combinations of the alternatives being recommended. JOINT REGULAR MEETING KJH:dle:eminsjr2 COMMISSION MINUTES AF - 7 - MAY 24, 1993 Mr. Henderson explained that the primary issue is not to incur any new debt to finance the new police facility because staff felt existing bond proceeds could finance the project. Secondarily, staff did not want to issue new tax exempt bond proceeds because it limits the ability to deal with private development. Mr. Henderson would like to relegate the additional bonding capacity to financing new development surrounding the Super Block rather than incurring new indebtedness for the police facility when there is sufficient tax exempt bond proceeds. Mr. Henderson stated that the State offices would most likely be private financed based upon the strength and length of the leases. It was concluded that, in essence, $4.5 million would not need to be set aside for the Super Block development as originally envisioned, but could be used for the existing police facility instead because staff believed in the strength of the leases to be entered into with the State. Commission Member Minor said he attended two meetings with Caltrans and State Offices where the State indicated they would come to the Super Block if movement was made on our end. This would employ about 1, 100 people downtown. He felt the key is to move the existing Police Department to the Seventh and "D" Streets location. Commission Member Minor made a substitute motion, seconded by Commission Member Reilly, to adopt alternative number 5 to include only the new police headquarters $2 million, and the Rancon whole block development $4.5 million, with the understanding that the new Council will have to address future financing. Commission Member Maudsley asked that the motion be amended to include $1, 000, 000 from blight removal and $500, 000 from the Platt building demolition for a grant total of $8, 000, 000. Commission Member Minor accepted and agreed to the amended motion. Commission Member Maudsley inquired whether there would be any other bond financing issues coming up to include extra money. Mr. Henderson noted there is an additional capacity of about $16- $17 million. Originally allocated block grant money for the demolition of the Platt Building was reappropriated and used in the capital projects which were approved last year. Again he mentioned that the key is not to incur unnecessary additional indebtedness to finance the police facility when there are other sources of financing available today. This would give staff maximum flexibility in the future to deal with the State and private development surrounding the State complex and the downtown central business district. Commission Member Minor amended his original motion, based on Commission Member Maudsley's comments. JOINT REGULAR MEETING COMMISSION MINUTES KJH:d]-e:cmia5jr2 - 8 - MAY 24, 1993 Commission Member Minor made a motion, seconded by Commission Member Reilly, that the Community Development Commission adopt alternative #5 as set forth in the attached Staff Report relative to the financing of the new police facility to include only the new Police Headquarters at $2 million, the Rancon Whole-Block Development at $4 .5 million, the Blight Removal and Beautification at $1 million, and the Platt Building demolition at $500, 000 for a total of $8 million, with the understanding that the new Council will have to address future financing. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Maudsley; Minor; Pope-Ludlam. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Miller. The Mayor closed the Public Hearing on item 37 of the Mayor and Common Council agenda. RS-1. PROPOSED PERFORMING ARTS CENTER MARKET FUND RAISING PLAN (Community Development Commission) Commission Member Estrada made a motion, seconded by Commission Member Reilly, that the Community Development Commission receive and I file the subject report. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. Commission Member Estrada congratulated the consultant on the comprehensive report. The Redevelopment Committee reviewed the report and found it to be a good guide on how the task will be accomplished. RECESSED MEETING At 12:35 p.m. , Chairman Holcomb recessed the meeting of the Mayor and Common Council and the Community Development Commission until 2:00 p.m. MEETING RECONVENED At 3:25 p.m. , the meeting of the Mayor and Common Council and the Community Development Commission of the City of San Bernardino was called to order. ROLL CALL Roll call was taken with the following members present: Chairman W. R. Holcomb; Commission Members Esther Estrada; Jack Reilly; Ralph Hernandez; Michael Maudsley; Tom Minor and Valerie Pope-Ludlam. Absent: Commission Member Norine Miller. JOINT REGULAR MEETING COMMISSION MINUTES KJ$:C31e:cmin5jr2 - 9 - MAY 24, 1993 STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; James Penman, City Attorney; Arthur Hassel, CDBG Project Manager, Development Department; Rachael Krasney, City Clerk; Diane Jones, Deputy City Clerk and Deborah Enay, Administrative Secretary, Development Department. 8. FY 1993/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PUBLIC HEARING (Mayor and Common Council) Mayor Holcomb opened the Public Hearing of the Fiscal Year 1993/1994 Community Development Block Grant funding recommendations. Kenneth Henderson, Executive Director, Development Department summarized the staff report. He commended the Community Development Citizens Advisory Committee (CDCAC) for its work in reviewing and making funding recommendations in this highly competitive application process. Council Member Hernandez asked for a show of hands of how many organizations were recommended for some other form of funding. He explained that an organization may have submitted multiple applications. Mr. Henderson stated that, if the Council elects to fund any of the contested programs, funds will need to be taken away from some of the recommended programs. He mentioned that although Collaterialized Mortgage Obligation (CMO) funds were appropriated to a previously denied program in the past, the account has been exhausted and no funds are available. He explained that a social service activity must accomplish a specific redevelopment purpose. MAYOR HOLCOMB WAS EXCUSED AT 3:32 P.M. COUNCILWOMAN ESTHER ESTRADA WAS RECOGNIZED AS MAYOR PRO TEM. Mr. Henderson explained the guidelines for the use of CDBG funds. He mentioned that the Council, at the recommendation of the CDCAC, approved a policy which indicated that any solicited Public Service proposals could not exceed $20, 000; however, there is no cap on Capital Improvement projects. Councilmen Hernandez and Minor supported the decision and recommendation of the CDCAC. Representatives from various organizations not recommended for funding spoke at the Public Hearing, as follows: 1. Barbara Bondiman, Executive Director; Project Home Run; 265 W. 25th Street, S.B. 2. Linda Savage, Director, YWCA Board; YWCA Childcare Center; 567 N. Sierra Way, S.B. JOINT REGULAR MEETING KJH:dle:cmin5jr2 COMMISSION MINUTES - 10 - MAY 24, 1993 3. Terry Field, Director; A Special Place; 1003 E. Highland Avenue, S.B. 4 . Reverend Douglas Hargrave, Administrator; Cornerstone Preschool; 702 W. 16th Street, S.B. 5. Donna Befridge, Allocation Director; Arrowhead United Way 646 North "D" Street, S.B. 6. Sam Price, Caring Friends Foundation, P. 0. Box 2003, S.B. 7. Jeff Morehead, Operation Grace, 3141 Indian Canyon Court, Highland 8. Betty Davidow, Executive Director; Inland Mediation Board; 420 N. Lemon Avenue, Ontario Mr. Henderson informed the Council that applicants are apprised of the $20, 000 maximum funding via publication of the Notice for Invitation for Proposals. An underscored sentence advising applicants that $20, 000 will be the maximum funding allowed pursuant to the policy adopted by the Mayor and Common Council was included in the notice. For those agencies already having an agreement, the public notice is supplemented by sending them a letter stating the same thing. I Mayor Pro Tempore Estrada pointed out that some of the projects would qualify through 20% Set Aside funds and suggested those agencies be referred accordingly. This will then make more funds available to the social services projects in the community. Mr. Henderson reported that some applications would appear to qualify for housing assistance from the 20% Set Aside program. Operation Grace, property rehabilitation program, has been referred to the Homeless Services Analyst and the Housing Division Manager. Further, he mentioned that some issues might qualify for block grant assistance that might not qualify for assistance under 20% Set Aside program because there is no permanent housing being constructed, rented or sold. James Penman, City Attorney, indicated the purpose of the Delmann Heights water system would be to rehabilitate and upgrade the system to provide safe water. Mr. Henderson affirmed this and noted this project is in connection with a prior policy action taken by the Council in terms of purchasing the water system. The City's share was $88, 000 per year for five years. This is the second phase which will bring the system up to EPA standards. A lengthy discussion ensued regarding the Delmann Heights resident's water rates compared to the rest of the City, reassessment of the system's account and the possibility of duplicate funding. Councilman Hernandez asked whether or not the Delmann Heights residents are being assessed for the system which is now going to be funded by CDBG funds. JOINT REGULAR MEETING COMMISSION MINUTES KJH:dle:cmin5jr2 - 11 - MAY 24, 1993 Jean Andersen, Chairman of the Community Development Citizen Advisory Committee, explained in detail the review process relative to project eligibility, compliance with CDBG criteria and guidelines, distribution of funds to encompass a variety of programs and so forth. She stated that City-based programs were given preference. Council Member Minor made a motion, seconded by Council Member Reilly, that the Mayor and Common Council close the Public Hearing and approve the recommended Fiscal Year 93/94 CDBG funding recommendations and authorize the Mayor and Executive Director to execute all necessary documents. Further, that staff be directed to prepare and submit the FY 93/94 CDBG Statement of Objectives and Projected Use of Funds to the U. S. Department of Housing and Urban Development. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Council Member Miller. Councilman Hernandez asked that the funding granted to San Bernardino Municipal Water Department for $338, 000 be set aside. He noted that Delmann Heights residents were already paying higher rates I than the rest of the City and asked Bernie Kersey, General Manager of the Water Department, if rates would be reduced because CDBG funds are now being used. Mr. Kersey informed that the $338, 000 is a portion of the cost to upgrade the system in Delmann Heights. The total cost of upgrades is approximately $1.7 million. Mr. Kersey said the total amount of money raised so far from the differential in water rates, is about $85, 000 over seven years. Councilman Hernandez recommended that the Water Board revisit the water rates of Delmann Heights. I Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam to reconsider the motion. Councilman Minor made a motion, seconded by Councilman Reilly to close the Public Hearing. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Council Member Miller. Bernie Kersey reported that as the water rates for the rest of the City have increased, the Delmann Heights water rates have not been adjusted to keep the higher differential that originally existed. Councilman Reilly made a motion, seconded by Councilman Minor to approve the recommended Fiscal Year 93/94 CDBG funding recommendations and authorize the Mayor and Executive Director to execute all necessary documents. Further, that staff be directed to prepare and submit the FY 93/94 CDBG Statement of Objectives and Projected Use of Funds to the U. S. Department of Housing and Urban Development. Councilwoman Pope-Ludlam asked that the issue of the cost of water in Delmann Heights be brought back for review and discussion at the next meeting scheduled for June 7, 1993. JOINT REGULAR MEETING COMMISSION MINUTES KJH:dle:cmin5jr2 - 12 - MAY 24, 1993 Mr. Henderson reassured Council Member Hernandez that the CDBG funds cannot be utilized prior to July 1, 1993, and there is a separate environmental review process for water systems. This will allow the Council with a significant amount of time to address the issue with Mr. Kersey. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Council Member Miller. RECESSED MEETING At 4:29 p.m. , Mayor Pro Tempore recessed the meeting of the Mayor and Common Council and the Community Development Commission for a five minute break. MEETING RECONVENED At 5:16 p.m. , 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: Chairman W. R. Holcomb; Commission Members Esther Estrada; Jack Reilly; Ralph Hernandez; Michael Maudsley and Tom Minor. Absent: Commission Members Valerie Pope-Ludlam (late) and Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Ann Harris, Executive Director, Main Street; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachael Clark, City Clerk; Diane Jones, Deputy City Clerk and Deborah Enay, Administrative Secretary, Development Department. OTHERS IN ATTENDANCE Maria Hunt, The Sun Newspaper. RS2. FOOD VENDING ON COURT STREET SQUARE (Mayor and Common Council) Council Member Estrada made a motion, seconded by Council Member Reilly, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-156 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING MARKET NIGHT, ITINERANT VENDORS, EVENTS ON COURT STREET SQUARE AS SCHEDULED BY SAN BERNARDINO MAIN STREET. JOINT REGULAR MEETING COMMISSION MINUTES KJH:dle:cmin5jr2 - 13 - MAY 24, 1993 �/ 1W V40FUNOW The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor. Noes: None. Abstain: None. Absent: Council Members Pope-Ludlam; Miller. Chairman Holcomb commended Main Street for its Friday night Farmer's Market which was a great success. He encouraged the public to come down and participate. RS3. ARDEN GUTHRIE REVITALIZATION STRATEGY (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, explained that this item is in connection with the previously adopted Arden Guthrie Revitalization Strategy. Council Members Maudsley and Miller worked with staff in developing, issuing and reviewing responses to the Request for Proposal and making a recommendation to the Commission. There were four responses to the RFP which were reviewed and analyzed. Based on the criteria utilized to evaluate the proposals staff is recommending approval of form motions A and B. COMMISSION MEMBER VALERIE POPE-LUDLAM ARRIVED AT 5:18 P.M. Commission Member Estrada made a motion, seconded by Commission Member Reilly, that the Community Development Commission authorize staff to exclusively negotiate with Equity Management Services, for a I sixty (60) day period, to develop a formal Management Services Agreement for the provision of project management services within the Arden Guthrie "Focus" Neighborhood. I Commission Member Estrada made a motion, seconded by Commission Member Reilly, that the Community Development Commission direct staff to re-issue the Request for Proposals for Arden-Guthrie project managers in the event negotiations with Equity Management Services cannot be successfully concluded within the approved sixty (60) day time period. Commission Member Maudsley commended Housing Division Manager, Dave Edgar, and his staff for a well written and comprehensive RFP. The motions carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. CLOSED SESSION RS4. ADJOURNED TO CLOSED SESSION At 5:22 p.m. , the Mayor and Common Council and Community Development Commission recess to Closed Session to discuss and 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 295 North "E" Street, San Bernardino, California 92401. JOINT REGULAR MEETING KJH:dle:cmin5jr2 COMMISSION MINUTES - 14 - MAY 24, 1993 RS5. ADJOURNMENT At 6:15 p.m. , the meeting of the Mayor and Common Council/Community Development Commission and the Joint Powers Financing Authority was adjourned to Monday, June 7, 1993 at 11:00 a.m. , in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted, KENNETH J. HENDERSON, Executive Director Secretary to the Commission JOINT REGULAR MEETING COMMISSION MINUTES KJH:dle:amin5jr2 - 15 - MAY 24, 1993 121-1r MAYOR AND COMMON COUNCIL AND THE C0b!MUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO M I N U T E S REGULAR MEETING June 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 Chairman Tom Minor, at approximately 11:56 a.m. , on Monday, June 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; 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; Deborah Enay, Administrative Secretary, Development Department; and Nancy Lawlor, Acting Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Maria Hunt, The Sun Newspaper. Timothy Steinhaus, Administrator, Economic Development Agency reported on the grand opening of Court Street Square. ---------------- CONSENT CALENDAR The Commission Members requested that items numbered "6" and "7" 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 "9" be adopted except for items numbered 116" and "711, respectively. REGULAR MEETING COMMISSION MINUTES KJH:nml:cmin6rl -1- JUNE 7, 1993 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 1. AGREEMENT - STATE OF CALIFORNIA - IMPROVEMENT OF HIGHLAND AVENUE (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman that the following resolution be approved and adopted: RESOLUTION NUMBER 5367 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING EXECUTION OF A DESIGN COOPERATIVE AGREEMENT WITH THE STATE OF CALIFORNIA RELATING TO DESIGN RESPONSIBILITIES FOR STREET IMPROVEMENTS ON HIGHLAND AVENUE, FROM DENAIR AVENUE TO BOULDER AVENUE. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 2. ADVERTISE FOR BIDS - RE-ROOFING OF YWCA BUILDING (Mayor and Common Council) i Councilman Hernandez made a motion, seconded by Councilman Oberhelman, that the plans for re-roofing the Young Women's Christian Association building, at 567 North Sierra Way, in accordance with Plan No. 8941, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Councilmembers Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 3. IMPROVEMENTS TO RUDY HERNANDEZ AND MILL COMMUNITY CENTERS (Mayor and Common Council) Councilman Hernandez made a motion, seconded by Councilman Oberhelman, that Change Order No. 2 to the contract with Kirkley Development, Inc. , for improvements to Delmann Heights, Rudy Hernandez, Mill & Johnson Community Centers, in accordance with Plan No. 8890, be approved; to authorize the re-roofing of the gym area of Rudy Hernandez and Wings B & C at Mill Community Centers, at an increase in the contract price of $55, 133. 65; from $505, 436.50 to $560, 573.15. REGULAR MEETING COMMISSION MINUTES KJH:nm3_:cmin6r1 -2- JUNE 7, 1993 The motion carried by the following vote: Ayes: Councilmembers Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 4. ESCROW AGREEMENT - MAIN STREET REVITALIZATION PROGRAM, PHASE II - MARINA CONTRACTORS (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the following resolution be approved and adopted: RESOLUTION NUMBER 5368 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING EXECUTION OF AN ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION, WITH MARINA CONTRACTORS, INC. , AND THE BANK OF AMERICA. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Agency Administration 5. BUILDING 201, ALL FLOORS HEATING & A/C MAINTENANCE (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the Community Development Commission receive and file the attached staff report informing the Commission of the processing of a purchase order with Thiem Co. Inc. , in the amount of $17, 225. 00 to provide guaranteed professional maintenance of the heating and air conditioning system in building 201, Tower Suites. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Development Department 8. NEW POLICE FACILITY - SELECTION OF GENERAL CONTRACTOR (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the Community Development Commission authorize staff to proceed with issuance of a Request for Proposals to solicit REGULAR MEETING COMMISSION MINUTES KJH:nm1:cmin6r1 -3- JUNE 7, 1993 oo., bids from general contractors for value engineering and construction of the new Central Police Station to be located at the northwest corner of Seventh and "D" Streets. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 9. DELMANN HEIGHTS WATER SYSTEM (Mayor and Common Council) Councilman Hernandez made a motion, seconded by Councilman Oberhelman, that the Mayor and Common Council receive and file the attached report from the General Manager of the Water Department regarding the Delmann Heights water services area. The motion carried by the following votes: Ayes: Councilmembers Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. END OF CONSENT CALENDAR ---------------------- 6. EARTHQUAKE RESISTANCE BRACE SYSTEM (ERBS) (Mayor and Common Council) Councilman Hernandez inquired as to whether any loans had been made under this program to date. Kenneth Henderson, Executive Director, Development Department, indicated that there have been no loans made under this program. Councilman Hernandez made a motion, seconded by Councilman Oberhelman, that the Mayor and Common Council approve a change in the Earthquake Resistance Brace System Program from CDBG loans to grants not to exceed $4, 500 (ERBS) , and authorize the City Fire Department to administer the grant program. The motion carried by the following vote: Ayes: Councilmembers Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 7. AUTHORIZED CHECK SIGNERS (Community Development Commission) Commission Member Hernandez stated that he would like to use the same processes that have been used in the past where one councilmember served as vice chairman. REGULAR MEETING COMMISSION MINUTES KJH:nml:cmin6rl -4- JUNE 7, 1993 Timothy Steinhaus, Administrator, Economic Development Agency, indicated that there was no designated vice-chairman at this time, and the authorized signers needed to be changed due to vacancies from the recent election. He further explained the check signing process. Dennis Barlow, Senior Assistant City Attorney, said that traditionally, the vice chairman has been authorized to sign, and historically, the vice chairman is also the chairman of the Redevelopment Committee. Mayor Minor suggested that since there is not an appointed chairman of the Redevelopment Committee at this time, that this part of the resolution could be approved, and the vice chairman could be added at a later date. Commission Member Hernandez made a motion, seconded by Commission Member Miller, to approve and adopt the following resolution: RESOLUTION NUMBER 5369 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DESIGNATING CHECK SIGNERS AND COUNTERSIGNERS FOR REDEVELOPMENT AGENCY OR DEVELOPMENT DEPARTMENT CHECKS AND VOUCHERS, AND REPEALING RESOLUTION NUMBER 5270. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to reconsider item number "8" of the Consent Calendar. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 8. NEW POLICE FACILITY - SELECTION OF GENERAL CONTRACTOR (Community Development Commission) Commission Member Hernandez stated that the backup provided was insufficient and he felt that it is premature to prepare a Request for Proposals until the Commission is provided with a model of the proposed facility. He expressed his concern about the appearance of the building. Commission Member Curlin also expressed concern with the aesthetics of the facility. Kenneth Henderson, Executive Director, Development Department, explained that this was the next logical step in the process based upon prior Commission approvals, including construction financing. He spoke of the advantages of selecting a general contractor early in the process, and that he could provide the Commission with more information either that afternoon or at a special workshop. REGULAR MEETING COMMISSION MINUTES KJH:nm1:cmin6r1 -5- ,TUNE 7, 1993 Commission Members Curlin, Negrete and Mr. Henderson indicated that a workshop might be an appropriate forum for reviewing additional information. Commission Member Curlin questioned whether the Request for Proposals would be submitted without being brought back before the Commission for a final review of its contents. Also, he expressed concern about reviewing the responses to the Request for Proposals prior to being given a contract selected by the staff to approve. Mr. Henderson said that the staff was requesting authorization to obtain proposals, and that the Commission would be given the opportunity to review all proposals. Commission Member Miller confirmed that the plumbing and electrical would be separate Requests for Proposals done by the general contractor, and that at this time the Commission would be granting staff permission to proceed with the selection of the general contractor. She also inquired as to any additional charges for the project. Mr. Henderson indicated that she was correct as to the intentions of the Development Department, and he explained that the figures she had been provided were for the total cost of the project. Commission Member Miller asked that she be brought up to date on the public hearing that was held for this project. Mr. Henderson clarified the events of the public hearing. Commission Member Miller made a motion, seconded by Commission Member Oberhelman that the Community Development Commission authorize staff to proceed with issuance of a Request for Proposals to solicit bids from general contractors for value engineering and construction of the new Central Police Station to be located at the northwest corner of Seventh and "D" Streets. Commission Member Hernandez inquired as to the total financial package for the police station and other construction projects. Mr. Steinhaus explained that the Commission would be provided with more information, but that the status of other projects should not be used to delay the police facility. Commission Member Oberhelman stated that he would like the draft Request for Proposals to be brought back to the Commission for approval before issuance. Commission Member Hernandez concurred. Mr. Steinhaus responded that staff was requesting permission to produce a Request for Proposals and send it out without further Commission approval, and that responses would then be brought before the Commission. Mr. Henderson added that the Commission had been provided with a series of presentations to support this project, and that the Request for Proposals would be based upon the information already provided, however it is feasible for staff to bring the draft before the Commission at the next meeting. Mr. Steinhaus agreed. REGULAR MEETING COMMISSION MINUTES KJ'H:nm1:cmin6r1 -6- JUNE 7, 1993 C Mayor Minor called for motion to approve the motion as submitted. a $ Commission Member Miller indicated that she had previously made s that motion. Commission Member Oberhelman again indicated that he would like the motion to read that the draft Request for Proposals be brought before the Commission for final review and approval. Commission Member Miller indicated that she would include that in her motion. Commission Member Oberhelman seconded the motion. Commission Member Hernandez requested that the amended motion be read aloud. Rachel Clark, City Clerk, read the motion that the Community Development Commission authorize staff to prepare a draft Request for Proposals to solicit bids from general contractors for value engineering and construction of the new Central Police Station to be located at the northwest corner of Seventh and "D" Streets, and be brought back before the Commission for review and approval. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 10. DEMOLITION OF AGENCY PROPERTY - 578 NORTH MOUNT VERNON AVENUE (Mayor and Common Council) Councilmember Hernandez made a motion, seconded by Councilmember Miller, that the Mayor and Common Council authorize the Executive Director to prepare and execute all documentation necessary to demolish improvements at 578 North Mount Vernon. The motion carried by the following vote: Ayes: Councilmembers Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 11. SECURITY SERVICES - PUBLIC ENTERPRISE BUILDING (PEC) (Community Development Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete, that the Community Development Commission award a contract to Seibert Security Service, Inc. , for security services at the Public Enterprise Center (PEC) at a rate of $3, 612 monthly, and authorize the Executive Director to prepare and execute a contract for same. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETING COMMISSION MINUTES KJH:run1:cmin6r1 -7- JUNE 7, 1993 12. JANITORIAL SERVIc;ES AT THE PUBLIC ENTERPRISE CENTER (PEC) (Community Development Commission) Commission Member Miller made a motion, seconded by Commission Member Oberhelman, that the Community Development Commission receive and file the attached staff report informing the Commission of the processing of a purchase order with American Building Maintenance Company in the amount of $13, 860 to provide daily janitorial services at the Public Enterprise Center (PEC) . Mayor Minor questioned when the present contract expired. Kenneth Henderson, Executive Director, Development Department, reviewed the terms of the current contract and the benefits of the proposed new contract. Commission Member Hernandez made a motion, seconded by Commission Member Curlin, to continue this item until June 21, 1993. The motion carried by the following votes: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 13. ADJOURN TO CLOSED SESSION At 12 :38 p.m. , the meeting of the Mayor and Common Council and the Community Development Commission recessed to closed session 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 located at 303 North "E" (W Street. 14. ADJOURNMENT At 12:45 p.m. , the Regular Meeting of the Mayor and Common Council and the Community Development Commission was adjourned to Monday, June 21, 1993 at 11:00 a.m. , in the Council Chambers of City Hall, 300 North "D" Street, San. Bernardino, California. Respectfully submitted: KENNETH J. HENDERSON Executive Director/ Secretary to the Commission REGULAR MEETING COMMISSION MINUTES KJH:nml:cmin6rl -8- JUNE 7, 1993