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HomeMy WebLinkAbout02- CDC minutes MAYOR 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 "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; Jerry Devlin; Norine Miller. Absent: Commission Member Pope-Ludlam. STAFF 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, Affirmative Action; 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. 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 informed the Commission that he was in the process of filing litigation against the City due to the medical hazards of those remnants. COMMISSION MEMBER OBE,RITELMAN WAS EXCUSED AT 11:04 A.> I. COMMISSION MEMBER OB17RHELMAN 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 force complete its investigation prior to the demolition of the building. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n11J2 - 1 - NOVEMBER 15, 1993 COMMISSION MEMBER POPE-LUDLAM ARRIVED AT 11:07 A.M. CONSENT CALENDAR The Commission Members requested that items numbered "3", "Y', "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 numbered "1" through "10" be adopted except for items numbered 113", "Y', "7" and "10", Vespectively. 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. 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community 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 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 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-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n11J2 - 2 - NOVEMBER 15, 1993 0 Public Works Department 4. ADVERTISE FOR BIDS - MODIFICATION OF INTERCEPTOR SEWER AT MACY STREET AND BLAKE STREET (Major 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 6. PUBLIC HEARING FOR HUD 108 LOAN APPLICATION - WEST SIDE PLAZA (Major and Common ouncil) I Councilman Miller made a motion, seconded by Councilman Hernandez, to establish December 6, 1993 at 11:00 a.m., as the date and time for a Public Hearing regarding the submission I 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: I None. I 8. HOMELESS SHELTER UTILITY ASSISTANCE PROGRAM (Communi1y Development 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 Samaritan Social Services through June 30, 1994, and that the Chairman 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; Oberhelman; Devlin;elm Po e-L udlam• Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n11J2 - 3 - NOVEMBER 15, 1993 9. HOUSING DIVISION QUARTERLY ACTIVITY REPORT (Community Development Department) Commission Member Miller made a motion, seconded by Commission Member Hernandez, to 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 - NEWTENANT IMPROVEMENTS 5055 HALLMARK PARKWAY (Mayor and Common Council) Councilman Oberhelman asked if this item and Item Number 5 were in conjunction with each other. 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. 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 AWARDING 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n11J2 - 4 - NOVEMBER 15, 1993 OW 5. LEASE SUBSTITUTION " 5055 HALLMARK PARKWAY (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, 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 Hallmark Parkway 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; Oberhelman; Devlin; Miller. Noes: Commission Member Pope-Ludlam. Abstain: None. Absent: None. 7. ALLAN STEWARD LOAN AMENDMENT RFn 1i FST (Community Development Commission) Commission Member Oberhelman 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. 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 Corporation (FDIC) and informed Mr. Steward that it would need to evaluate his loan before continuing to disburse the loan proceeds. Mr. Henderson stated that Mr. Steward is planning to refinance his loan within the next P g three (3) to four (4) months and, at that time, will pay the Agency the complete balance of the loan. Commission Member Oberhelman 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 temis 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 Oberhelman. Abstain: None. Absent: None. 10. MOBILE HOME CONVERSION PROGRAM WORKSHOP (Community ev lonnient no mic ion) Commission Member Hernandez made a motion, seconded by Commission Member Negrele, 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n11J2 - 5 - NOVEMBER 15, 1993 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 workshop taking place at the next scheduled 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. END OF CONSENT CALENDAR 11. ACQUISITION OF 184 SOUTH "E" STREET (Major 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 Harmon Motors property. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he would provide the amount paid for the Harmon 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 purchase property. Mayor Minor clarified comments made by Councilman Hernandez indicating that the new law would not have anything to do with purchasing property. He said a founal report regarding the purchase of the ball-field property will be made on December 6, 1993. Jeff Wright, P. O. Box 2341, San Bernardino, spoke on the property being considered for the ball-field. Councilman Devlin made a motion, seconded by Councilman Curtin, that the following resolution be approved and adopted: JOINT REGULAR MEETING COMMISSION MINUTES - :cmin1I 2 6 -KJH:Im P .l NOVEMBER 15 1993 0 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-Ludlam. (_Community Development Commission) 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 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. 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-Ludlam. 12. JERSEY'S SPORTS BAR - ALL-INCLUSIVE TRUST DFED (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 necessary to effectuate said transaction. Mr. Henderson explained that approval of this item would not increase the Agency's risk. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cmin11J2 - 7 - NOVEMBER 15, 1993 = 1 Q 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. 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. REVITAL.IZA.TION 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 firm (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. (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 Oberhelinan questioned the selection of C&B Enterprises for this project. Kenneth J. Henderson, Executive Director, Development Department, explained that the film was recommended based on its familiarity with the area and also, with its experience in revitalization. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n11J2 - 8 - NOVEMBER 15, 1993 1� COMMISSION MEMBER POPE-LUDLAM RETURNED AT 11:31 A.M. Mr. Henderson indicated that originally, this revitalization plan was a 50150 effort between the Agency and the property owners; however, due to a lack of participation, the Agency would now be financing 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None Motion C carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None 14. YOUNG HOMES OF CALIFORNIA (Community Development Commission) Commission Member Oberhelman 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 Chairman 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 Oberhelman made a substitute 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 $180,000 in previously approved Fiscal Year 93-94 low/mod housing set-aside funds and authorize the Chairman and Executive Director to execute any document necessary to effectuate said transaction. Commission Member Miller discussed the high quality of Young Homes quid 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin11J2 - 9 - NOVEMBER 15, 1993 r @OWL ,.e.. _,. 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. Commission Member Negrete asked for the income limitations used to qualify for the MAP Program. Mr. Henderson stated that for a family 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-Ludlam. Noes: Commission Members Curlin; Miller. Abstain: None. Absent: None. 15. SAN BERNARDINO COMMUNITY HOSPITAL. 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 the financing of the proposed office building. 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 guarantee. Mr. Henderson stated that the Agency had the guarantee of both the Community Hospital and Arrowhead Health Care System and a second deed of trust. 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-Ludlann felt this project would benefit the entire City as well as the hospital. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cmin11J2 - 10 - NOVEMBER 15, 1993 0 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 teens 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 Chainnan 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 16. NEW POLICE FACILITY FINANCING (Major 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. Councilman Hernandez expressed concern regarding the language in the resolutions which 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 both the City and the Agency. She stated that using it provides a method of financing that kept the two entities tied together. COUNCILWOMAN MILLER LEFT AT 11:54 A.M. COUNCILWOMAN POPE-LUDLAM LEFT AT 11:55 A.M. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cmin11J2 - 11 - NOVEMBER 15, 1993 �,7 Mr. Henderson explained that the 50150 share for the police financing 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. COUNCILWOMAN 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 Caltrans 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 service 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. Councilwoman Pope-Ludlam made a motion, seconded by Councilman Oberhelman, that the following resolutions be approved and adopted: RESOLUTION NUMBER 93-428 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AUTHORIZING THE LEASE OF CERTAIN PROPERTY FROM THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY, AUTHORIZING THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n11J2 - 12 - NOVEMBER 15, 1993 (Community Development Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Oberhelman that the following resolutions be approved and adopted: RESOLUTION NUMBER 5383 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING AND AUTHORIZING THE EXECUTION OF A CERTAIN GROUND LEASE IN CONNECTION WITH THE FINANCING OF THE SAN BERNARDINO POLICE STATION . (Joint Powers Financing Authority) RESOLUTION NUMBER JPA20 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 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 JPA21 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Councilman Hernandez. Abstain: None. Absent: None. MEETING AD IOURNED At 12:13 pm., the meeting of the Mayor and Common Council and the Community Development Commission was adjourned until 3:00 pm. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cminllj2 - 13 - NOVEMBER 15, 1993 /� MEETING RECONVENED The meeting of the Mayor and Common Council and the Community Development Commission was reconvened at 3:55 pm. 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; Norine Miller. Absent: None. STAFF 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, Affirmative Action Officer; 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. 17. BOYS AND GIRLS CLUB FINANCIAL. ASSISTANCE, pgOpOSAL (Community Development Commission) (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 Oberhelman, to refer this item to the Housing Committee. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludhuu; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1wp:cw1n11J2 - 14 - NOVEMBER 15, 1993 Al 18. ROGER'S BINDERY (Community Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, explained previous actions taken by the Commission in reference to Rogers Bindery and stated that E.H. 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 Rogers Bindery, except for the Mexico facility. Discussion ensued regarding a loan to a shareholder and the total amount of that loan. Bob Forrest, Chief Financial Officer, Rogers Bindery, spoke on the age of the loan stating that no funds had been borrowed from the firm within the last five (5) years. He stated that the loan in the amount of$240,000 would be committed for repayment in approximately 90 days. Commission Member Oberhelman 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 working 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 reorganWition 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 lour to a grwl. 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin11J2 - 15 - NOVEMBER 15, 1993 Mr. Steinhaus explained that Motions B & C of this item would authorize the Agency to (W renegotiate the loan, if the Commission wished. Commission Member Oberhelman 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 Oberhelman 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 Oberhelman, 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 amortization schedule using an interest rate which reflects the current economic conditions. AND 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 deteunined. The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam. Noes: Commission Members Curlin; Oberhelman; 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n11J2 - 16 - NOVEMBER 15, 1993 AND 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 determined. The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain: Commission Member Curlin. Absent: None. Commission Member Oberhelman 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; Hernandez; Oberhelman; 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. COMMISSION 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 Saui 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n11J2 - 17 - NOVEMBER 15, 1993 h 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. Commission Member Curlin questioned whether or not annual increases according to the 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-Ludlatn. 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. 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 (Major 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. Junes Penman, City Attorney. expliuned 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin11j2 - 18 - NOVEMBER 15, 1993 Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez that the following resolutions be approved and adopted: (Joint Powers Financing Authority) RESOLUTION NUMBER JPA20 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 JPA21 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. (W 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 QUALIFICATIONS REVIEW COMMITTF F (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. Absent: None. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin11J2 - 19 - NOVEMBER 15, 1993 IMF- — — 0 RS-2. MINORITY AND WOMEN'S BUSINESS ENTERPRISE POLICY (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 5384 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ADOPTING A POLICY ESTABLISHING GOALS FOR MINORITY AND WOMEN BUSINESS ENTERPRISES IN AGENCY PROCUREMENT. Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to authorize the Chaiunan 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; Oberhelman; 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 am., 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:1mp:cm1n11j2 - 20 - NOVEMBER 15, 1993 ., „:r , . MAYOR AND COMMON COUNCIL 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 Chambers, City Hall, 300 North "D" Street, San Bernardino, California and called to order 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: Chairman Tom Minor, Commission Members Edward Negrete; David Oberhelman; Jerry Devlin; and Norine Miller. Absent: Dr. F. J. Curlin; Ralph Hernandez; Valerie Pope-Ludlam. STAFF 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 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 Richard Brooks, The Sun Newspaper; Brooks London, DeAnza/London Group; Mike Silverman, DeAnza/London Group. 23. MOBILEHOME WORKSHOP - LUNCHEON N HEON 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 DeAnza/London Group. Brooks London, DeAnza/London Group, stated that he had been involved with Mobilehome Parks since 1984. He explained that he was a lawyer active ill assisting cotrimunities 111d owncr; in mobilehome park conversions. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminl2rl 1 December 6, 1993 n� Mike Silverman, DeAnza/London Group, stated that DeAnza is the oldest mobilehome group 3 in the country with over 500 employees. Mr. London discussed the process used in determining the eligibility of mobilehome parks for conversion. Mr. Silverman 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. Chairman Minor informed those in attendance that, due to the lack of a quorum, no decisions would be made at this meeting. Mr. Silverman summarized the videotape and emphasized on the need to convert the mobilehomes in Category 1. Mr. London discussed the recommendations for Categories 1I and III. Sherry Numbly, Mobilehome Owner, asked questions relative to the video. 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 Coniumnity Development Commission was called to order by Mayor Minor. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 2 December 6, 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 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; 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 Clerk; Melanie Vale, Deputy City Clerk; 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 1 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 R CONV N D 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 CAL.i. I Roll call was taken with the following members present: Chaimtan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. (W REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 3 December 6, 1993 fI_ STAFF 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 Clerk; Melanie Vale, Deputy City Clerk; 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. Diagonal Parking Jeff Wright, P. 0. Box 2341, indicated that he had spoken with several eo le regarding the P P diagonal parking on "E" Street and the problems it has caused. He stated that the new parking has taken away two (2) lanes. 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", 116", 171, "8", "9", "10", "1211, and "13" be removed from the Consent Calendar. Commission Member Oberhehn�un made a motion, seconded by Commission Member Devlin, that the Consent Calendar items numbered "1" through "13" be adopted, except for items numbered "4" 'W', "7" "81', "9", "101, "12", and "13". (W REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 4 December 6, 1993 0 The motion carried by the following vote: Ayes: Commission Members Negrete; 0 Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 1. COMMUNITY DEVELOPMENT OMMIS ION MINUTES (Community Development Commission) Commission Member Oberhelman, 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 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 Development Commis ion) 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 November 4, 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. Public Works Department 5. AWARD OF CONTRACT . T B Ii AR STFFI FENCING AT MILL COMMUNITY CENTER (Major and Common Council) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-452 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO ALL PRO MASONRY, A.J.V. FOR INSTALLATION OF TUBULAR STEEL FENCING AT MILL COMMUNITY CENTER. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 5 December 6, 1993 .4; 1. ....The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Development Department 11. EMMERTON SCHOOL. PROGRAM (Major and Common Council) Commission Member Oberhelman 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Public Works Department 3. IN-FILL STREET IMPROVEMENTS ON ARTERIAL AND COLLECTOR STRFFTS ( omm ni v Development Commission) Commission Member Hernandez expressed concern regarding one fnm 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 information 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 Oberhelman commented on the procedure used regarding change orders. He felt a better procedure should be implemented. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, 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 order to reflect actual contract quantities. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminl2rl 6 December 6, 1993 r Commission Member Hernandez 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 HIGHLANDIARDEN AREA (Community Development Commission) Commission Member Hernandez questioned the amount of funds set aside for Arden Guthrie. He requested copies of the documents 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-sating of streets in the area. Commission Member Devlin made a motion, seconded by Commission Member Oberhelman, that the plans for constriction 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 COMMISSION MINUTES KJH:Imp:cmin12r1 7 December 6, 1993 Commission Member Oberhelman 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 IVDA, its programs, and its funding sources. He spoke regarding an agreement being developed between IVDA, the City, and the County which would inform 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 neighborhood. 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 Oberhelman; Devlin; Pope-Ludlam; Miller. Abstain: None. Absent: None. Commission Member Oberhelman 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: None. Commission Member Pope-Ludlam requested the $500,000 from IVDA be bonded. 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 order to reflect actual contract quantities. REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin12r1 8 December 6, 1993 0 The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Agency Administration 6. CHRISTMAS CLOSURE (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 (_Community 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. James Penman, City Attorney, explained that he discussed with Councilman Curlin his reasoning for excusing himself and informed him that, legally, he could include himself in the discussions. I Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that a formal presentation on this item would be made during a luncheon workshop at a later date. 9 I REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 9 December 6, 1993 Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to authorize the Chairman 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 services for negotiation of leases and operating covenants at the Carousel Mall. 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 carved by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Members Curlin; Devlin. Absent: None. 8. COMMUNITY CALENDAR AND QUARTERLY COMMUNITY NEWSi FTTFR (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, to authorize a purchase 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. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; 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 amount of the Agency's annual subsidy for this business. Kenneth J. Henderson, Executive Director, Development Department, stated that the �uinual subsidy was approximately $30,000 a year. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 10 December 6, 1993 w Councilman Hernandez expressed concern regarding the amount of funds being spent on this item. COUNCILMAN CURLIN WAS EXCUSED AT 4:42 P.M. Councilman Oberhelman commented that if the lease was terminated, the parking agreement would be terminated also. Councilwoman Pope-Ludlam made a motion, seconded by Councilwoman Miller, that the following resolution be approved and adopted: RESOLUTION NUMBER 93453 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: Council Members Oberhelman; Pope- Ludlam; Miller. Noes: Councilman Negrete. Abstain: Council Members Hernandez; Devlin. Absent: Councilman 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 I CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER. I The motion failed by the following vote: Ayes: Commission Members Oberhelman; Pope- Ludlam; Miller. Noes: Commission Members Negrete. Abstain: Commission Members Hernandez; Devlin. Absent: Commission Member Curlin. I Mayor Minor recommended this item be continued when all Council Members were present. 10. INFILL HOUSING DEVELQPMENT PROGRAM (Community Development Commission) REGULAR MEETING COMMISSION MINUTES KJH:Imp:cminl2rl 11 December 6, 1993 Al w 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 numbers listed in the document were the same and requested clarification. COMMISSION MEMBER CURLIN RETURNED AT 4:45 P.M. 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 information was obtained. 9. CENTRAL. CITY COMMERCE CENTER - WOOLWORTH BUILDING PARKING LICENSE (Major and Common Council) Councilman Hernandez made a motion, seconded by Councilwoman Miller, to reconsider this item. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Councilman Oberhelman 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; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman Negrete. Abstain: Council Members Hernandez; Devlin. Absent: None. (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Miller, that the following resolution be approved and adopted: REGULAR MEETING COMMISSION MINUTES KJH:hmp:cmin12r1 12 December 6, 1993 .h I T w 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 FjjNDING FOR THE PLATT B I DING 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 93-454 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. (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the following resolution be approved and adopted: REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin12r1 13 December 6, 1993 RESOLUTION NUMBER 5386 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 CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA OF THE AGENCY. Commission Member Oberhelman 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 10. INFIL.L HOUSING DFVELOPMENT PROGRAM (Community Development Commie.ion) Timothy C. Steinhaus, Administrator, Economic Development Agency, informed the Commission that the sixth parcel number listed in the back-up should read "144-081-22" instead of "144-12346". 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 Chaiunan and Executive Director to execute any documents necessary to effectuate said modifications. 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 Chaiunan 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 13. OPTION HOUSE TRANSITIONAL HOUSING DEVELOPMENT CHANGE ORDERS (Mayor and Common Council) Kenneth J. Henderson, Executive Director, Development Department. discussed the difficulties that have occurred regarding this project quid the need for the additional funding. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 14 December 6, 1993 COUNCILWOMAN POPE-LUDLAM WAS EXCUSED AT 4:50 P.M. Councilman Oberhelman indicated that Option House was the primary caretaker for this type of activity in the City. He recommended approval of the item. COUNCILWOMAN POPE-LUDLAM RETURNED AT 4:52 P.M. I 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 orders that resulted therefrom, as well as a change order for rehabilitation of a second unit. I 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 PUBLIC HEARING CLOSE PUBLIC HEARING (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. f Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to receive and file the attached Comprehensive Housing Affordability 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. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 15 December 6, 1993 0 15. PUBLIC HEARIN - HUD 108 LOAN APPLICATION - WEST SIDE PLAZA OPEN PUBLIC HEARING CLOSE PUBLIC HEARING I (Mayor and Common Council) I Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez, 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. I Councilman Hemandez made a motion, seconded by Councilman Oberhelman, to approve the U.S. Department of Housing and Urban Development (HUD) 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; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: (W None, 16. SALVATION ARMY PAYEE PROGRAM (Community Development Commission) (Councilwoman Pope-Ludlam's Recommendation) Commission Member Pope-Ludlam discussed the Salvation Army'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 purpose. 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 Obefelman made a motion, seconded by Commission Member Hernandez, to table this item. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 16 December 6, 1993 Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to refer this item to the Redevelopment Committee. NOW" The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Councilman Oberhelman. Abstain: None. Absent: None. 17. SOILS ENGINEERING SERVICES - STATE CONSOLIDATED OFFICES AND CALTRANS BUILDING (Community Development Commission) Commission Member Oberhelman 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 final verification of Minority Business Enterprise goal compliance. l 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 definition of"local" businesses, it would do so. Commission Member Devlin indicated that the fine selected was from the City of Colton and he felt that was a "local" business. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the selected fine would be using three (3) subcontractors: a minority finn, a women-owned firm; and a disabled veterans fine. 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. f The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 18. ARCHITECT11RAL SERVICES - STATE C ONSO IpATFD OFFICES AND CALTRAN, BUILDING (Community Deyclovinent Commission) REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12r1 17 December 6, 1993 ��l 0 Commission Member Oberhelman 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. Commission Member Hemandez 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 working 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 afford 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 Oberhelman 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 firms to participate in the project and stated that 15.07% of the total project would be received by local firms. Commission Member Miller indicated that the State Consolidated Offices and Caltrans Review Committee asked the same questions and went through the same review process that the Commission has today. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: None. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminl2rl 18 December 6, 1993 �I i 0 19. AGENCY SPONSORSHIP OF PROPOSED COMPLIANCE WORKSHOP (Community Development Commission) Councilman Hernandez's Recommendation Francis 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 purpose of the workshop was to establish a forum to discuss the implementation of the program and strategic plan for the Minority Business Enterprise/Women-Owned Business Enterprise (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. MAYOR 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 Chambers. 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. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cmin12rl 19 December 6, 1993 Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, 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 Oberhelman; Devlin. Abstain: None. Absent: None. 20. RECONSIDERATION 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 Oberhelman 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. 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. 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. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminl2rl 20 December 6, 1993 tom± qW Commission Member Oberhelman 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 Oberhelman 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 Oberhelman 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 timefiame 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 terns 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.ements. 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 form 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 worked with had set-aside a bindery payable in the amount of$1.7 million. ` Commission Member Oberhelman 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 19x. 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. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminl2rl 21 December 6, 1993 !. — 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 information of the business when the owner was not informed of such information. Bob Forrest, Chief Financial Officer, Rogers Bindery, discussed the amount of employees who work 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. Imbriani'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 Oberhelman 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 and a director of Rogers Bindery. She stated that the information provided to the Agency staff was taken from the books of Roger s Bindery. She felt the business was hemorrhaging through 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. I Mrs. Imbriani stated that the stockholders were suppose to meet at least monthly to discuss the business. She stated that 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 Oberhelman 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 terms for the principle balance of the loan. Timothy Sabo, Special Counsel, Sabo & Green, recommended staff enter into some type of negotiations or possibly some agreement until confirmation is made regarding the status of the company. He also suggested that the shareholders meet with Mr. Steinhaus. Gene Wood and the CPA to see if a recommendation could be made an ongst the parties. REGULAR MEETING COMMISSION MINUTES KJH:Imp:cminl2rl 22 December 6, 1993 Mr. Sabo felt the Commission should authorize the City Attorney to file a lawsuit and give staff approximately four weeks to come up with a recommendation acceptable to all parties involved before the City Attorney 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 Rogers 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-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: None. 22. DELINQUENT NOTES AND DEVELOPMENT AGREEMENTS IN DEFAULT - ORAL PRESENTATION Commission Member Oberhelman made a motion, seconded by Commission Member Devlin to continue this item until December 20, 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Miller. Noes: Commission Member Pope-Ludlam. Abstain: None. Absent: None. 23. ADJOURNMENT 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 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:lmp:cmin12r1 23 December 6, 1993