Loading...
HomeMy WebLinkAbout01- Minutes MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING November 1, 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 Bemardino, California and called to order by Mayor Tom Minor at approximately 11:01 am., on Monday, November 1, 1993 . ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; and Valerie Pope-Ludlam. Absent: Commission Member Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; James Penman, City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Ernie Wilson, Affirmative Action, Mayors Office; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. The Commission Members requested that items numbered "2" and "3" be removed from the Consent Calendar. Commission Member Devlin made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items numbered "1" through "4" be adopted, except for items numbered "2" and "Y' The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez•, Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. REGULAR MEETING COMMISSION MINUTES KJH:Imp:cminllrl 1 November 1, 1993 Public Works Department 1. ADVERTISE FOR BIDS - RICHARDSON STREET STORM DRAIN (Major and Common Council) Commission Member Devlin made a motion, seconded by Commission Member Hernandez, that the plans for the installation of a storm drain in Richardson Street, from Davidson Street to Mission Zanja Channel, per Plan No. 8854, be approved and that the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. Development Department 4. FY1993/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENT B TW . .N THE CITY AND SALVATION ARMY - SAN BERNARDINO CORPS (Major and Common Council) Council Member Devlin made a motion, seconded by Council Member Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-412 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SALVATION ARMY - SAN BERNARDINO CORPS. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 2 November 1, 1993 Public Works Department 2. REJECTION OF BIDS - LANDSCAPE MEDIAN IMPROVEMENTS ON WATERMAN AVENUE (Community Development Commission) Commission Member Pope-Ludlam questioned the cost of this item to the homeowners. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item would pose no cost to the homeowners. Commission Member Devlin made a motion, seconded by Commission Member Hernandez, that all bids for landscape median improvements in Waterman Avenue be rejected and that the Director of Public Works/City Engineer be authorized to re-advertise for bids in accordance with the revised Plan No. 8966. The motion carved by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. Fire/Disaster Preparedness 3. APPROVAL OF CONTRACT CHANGE ORDER #1 INSTALLATION OF EARTHQUAKE RESISTANT BRACING SYSTEM. PER EDA-93-0003 STABILIZER SYSTEMS. INC. (Mayor and Common Council) Councilman Oberhelman questioned the selection process used for the selection of the additional five (5) mobilehomes. Kenneth J. Henderson, Executive Director, Development Department, indicated that a resident must be at or below low income levels in order to receive assistance. He stated that a list was generated identifying all residents who met the qualifications and that assistance is granted on a first come, first serve basis. Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, to approve Change Order#1 to the Contract with Stabilizer Systems, Inc., to install an additional five (5) mobilehomes Earthquake Resistance Bracing Systems (ERBS) in various mobilehomes within the City of San Bernardino. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. END OF CONSENT CALENDAR REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 3 November 1, 1993 Continued from October 21. 1993 5. ARROW VISTA HOUSING DEVELOPMENT PROJECT (Community Development Commission) Redevelopment Committee Recommendations Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, that the following motions be approved and adopted: That the Community Development Commission authorize Councilwoman Pope-Ludlam to work with the Agency Administrator and Dukes-Dukes and Associates for the purpose of removing the existing Small Business Administration (SBA) lien recorded against the Arrow Vista project. That the Community Development Commission allow Dukes-Dukes and Associates to remain as a principal in the Arrow Vista project and to proceed expeditiously with marketing activities and the sale of existing Arrow Vista project standing inventory. That staff and Dukes-Dukes and Associates utilize the San Bernardino Community Hospital list of interested employees as a point of departure in the marketing and sale of the existing Arrow Vista project standing inventory. Commission Member Pope-Ludlam pointed out that John Dukes, Dukes - Dukes and Associates were working diligently to sell the Arrow Vista Homes. She indicated that he already had approximately ten (10) homes in escrow. Commission Member Oberhelman asked if staff had a list of the names of people who are in escrow. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Agency did not have a list, and added Mr. Dukes indicated he was utilizing the list received from Community Hospital. Commission Member Pope-Ludlam indicated that the original list from the hospital was lost and because it had to be re-established, a delay resulted in the sale of the homes. Commission Member Oberhelman summarized past difficulties with the Dukes-Dukes organizations. He stated that regardless of whether or not the homes are sold, it would have nothing to do with the debt relationship between Dukes-Dukes and the Agency. Mr. Steinhaus noted that the Agency was in the same position it was in two months ago. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 4 November 1, 1993 Commission Member Oberhelman emphasized actions taken by the Commission approximately one (1) year ago when the developer was given additional funds for the project. He indicated that he provided the Commission Members a report, completed by Mr. Gene Wood, Consultant, regarding the continuing assistance to Dukes-Dukes. He further noted that the report clearly stated that the developer should be denied additional assistance. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to continue the item until 2:00 pm. to allow the developer to be present to speak. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. 6. ARROW VISTA - CHRONOLOGY OF EVENTS (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to continue this item until 2:00 pm. to allow the developer to be present to speak to this item. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. Agency Administration 7. ROGER'S BINDERY (Community Development Commission) Councilwoman Pope-Ludlam's Recommendation Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam to reconsider actions taken with respect to Rogers Bindery on October 21, 1993. The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None. Absent: Commission Member Miller. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to reconsider this item. Commission Member Oberhelman expressed concern regarding the Commission attempting to reconsider an item that has already failed. REGULAR MEETING COMMISSION MINUTES KJH:Imp:cminllrl 5 November 1, 1993 Discussion ensued regarding the ability to discuss this item in closed session. Mr. James Penman, City Attorney, indicated that the Commission could discuss the item under pending litigation. Commission Member Curlin made a motion, seconded by Commission Member Hernandez, to adjourn to closed session. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin. Abstain: None. Absent: Commission Member Miller. CLOSED SESSION 9. ADJOURN TO CLOSED SESSION At 11:29 am. the Mayor and Common Council and the Community Development Commission adjourned to closed session to discuss the following: B. To confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b)(1), as there is significant exposure to litigation. At 11:58 am. Mayor Minor made an announcement that the issues concerning Roger's Bindery were not resolved and that the Commission would recess until 2:00 pm. He noted for the audiences information that the issue of Roger's Bindery may or may not be brought up for discussion in the afternoon session. Jim Lynas, Citizen, questioned whether or not he would be given the opportunity to speak to this item at the afternoon session. Mayor Minor informed him that he would only be allowed to speak if the item was reconsidered. MEETING ADJOURNED At 11:58 am. the meeting of the Mayor and Common Council and the Community Development Commission was adjourned until 2:00 pm. MEETING RECONVENED At 2:58 pm., the meeting of the Mayor and Common Council and the Community Development Commission was called to order. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 6 November 1, 1993 0 STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Jim Penman, City Attorney; Dennis A. Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Ernie Wilson, Affinnative Action Officer, Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. - OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. Development Department 5. ARROW VISTA HOUSING DEVELOPMENT PROJECT (Community Development Commission) Redevelopment Committee Recommendation Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was held over to the afternoon session to allow the developer the opportunity to speak. Commission Member Miller questioned the small business loan listed in the Chronology of Events and the status of that loan. Mr. Steinhaus explained that the small business loan was a federal loan and that the Agency had no involvement in it. John Dukes, 1875 West Highland Avenue, San Bernardino, stated that as of Sunday, October 31, there were nine (9) applicants who were deemed eligible to purchase a home based on income submitted applications and checks for escrow. He explained that an additional nine (9) applicants who previously "fell-out" of escrow were being re-interviewed to determine their qualification for assistance through the Mortgage Assistance Program (MAP). He further stated that residents of the Dorjil Apartments were also being screened to determine their qualifications for an Arrow Vista Home. He speculated that, given the proper program, home sales could increase to approximately 4 - 7 homes per month. Mr. Dukes explained that the SBA lien against his property was a result of a loan that he co- signed in 1981 that went to judgement. He stated that the interest rate on the SBA loan was being reduced from 11.5% to 6.5% to allow them a better opportunity to repay the loan. Commission Member Oberhelman asked what were the number of homes actually in escrow. Mr. Dukes stated that there were two (2) homes in escrow. REGULAR MEETING COMMISSION MINUTES KJH:lrnp:cminllrl 7 November 1, 1993 l E Commission Member Curlin asked the amount of time the homes have been on the market. Mr. Dukes responded that although the homes had been on the market for 18 months, they had gone through several different sales programs. He also stated that the lower the interest rate, the tougher it was for applicants to actually purchase the homes. Discussion ensued regarding the refinancing of Dorjil Estates. Commission Member Negrete asked about the list from Community Hospital of interested homebuyers. Mr. Dukes indicated that of the list of 15 names, only one (1) person actually qualified for home ownership based on income. Commission Member Oberhelman asked what was the amount of money owed to the Agency from Dukes-Dukes and Associates and the effect the homes sales would have on that amount. Mr. Steinhaus explained that the total amount owed to the Agency was $5.6 million. He indicated that if all the homes in Arrow Vista were sold, the amount paid back to the Agency through sales would be the land and construction loan costs. He stated that the sewer costs and business reorganization loan would have to be repaid with other funds. Mr. Steinhaus noted that if the Agency took over the project, they would be repaid the same amount minus a sellers fee. Kenneth J. Henderson, Executive Director, Development Department, stated that the land acquisition cost to the Agency was $1.9 million. Commission Member Hernandez gave a brief history on this item and included activities that took place with the previous developer, Mr. Clyde Alexander. 7 Mr. Dukes stated that during the second phase of a housing project, it is best to move individuals into their homes as group at a time. Commission Member Pope-Ludlam voiced concern about the special circumstances regarding development in the west side of San Bernardino. Discussion ensued regarding the sale of the Arrow Vista Homes and the qualifications of the Mitchell Company to complete this task. COMMISSION MEMBER MILLER WAS EXCUSED AT 3:35 P.M. Mr. Henderson summarized the Chronology of Events emphasizing that the $20,000 a month security and landscape costs was necessary due to vandalism that has previous occurred to the homes. Commission Member Hernandez stated that if the Agency takes over the project, there would be no cost savings. COMMISSION MEMBER MILLER RETURNED AT 3:40 P.M. Mayor Minor discussed previous assistance given to the developer of this project. He suggested the sale price of the homes be reduced to increase sales. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 8 November 1, 1993 Commission Member Oberhelman recommended the developer agreement between the Agency and the developer be tenninated. Mr. Steinhaus stated that there were no plans to lower the prices of the homes, only to provide assistance in the form of a silent second mortgage not-to-exceed $25,000. He explained that if the sales price was reduced by $10,000, those funds would never be recaptured; however, if a silent second was given for $10,000, it would benefit the homeowner by allowing them to qualify for the home and also maintain market value. Mr. Dukes made additional comments regarding the Arrow Vista Homes and also the Westside of San Bernardino. Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that the Arrow Vista Housing Development Project be continued and re-evaluated at the first meeting in January 1994. Commission Member Curlin questioned the sincerity of the applicants for Arrow Vista Homes. Mr. Dukes explained that he was thoroughly screening the applicants to make sure they were sincere about the purchase of a home. He felt confident that approximately 75% of the comments in applications he had received to date were candid. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None. Absent: None. 6. ARROW VISTA - CHRONOLOGY OF EVENTS (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to receive and file the attached staff report and Chronology related to the Arrow Vista Project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: None. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 9 November 1, 1993 Agency Administration 7. ROGER'S BINDERY (Community Development Commission) Councilwoman Pope-L•udlam's Recommendation Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam to reconsider actions taken with respect to Rogers Bindery on October 21, 1993. The motion carved by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None. Absent: None. Bob Forrest, Chief Financial Officer, Rogers Bindery, stated that the bindery had taken many steps to improve its financial position. He noted that the bindery had complied with all agreements needed to put its financial packet together. Mr. Forrest explained that although the bindery had a 27-year relationship with the community and made a major tum-around with its finances, the recent foreclosure action by the City has caused major problems between the bindery and its customers. Mr. Forrest noted that approximately 726 employees worked for the bindery and he felt an obligation to keep them employed. He stated that the Company needs the foreclosure action to cease in order to obtain approval of a pending financial package. He requested that the City consider Roger's Bindery history of being in the community for 27 years and grant a reprieve. Mayor Minor pointed out that originally, during the Ad Hoc Committee Meetings, the Agency subordination of its loan to allow the bindery to obtain another loan was discussed. However, it has been revealed that the Agency currently holds second position on its loan therefore no subordination is needed. Mayor Minor questioned the collateral used for each loan and also the ability of the bindery to repay the City. Mr. Forrest stated that the bindery's equipment was used for each loan obtained. He explained that the bindery would like to request a partial reprieve for interest payments made to the City, for approximately $240,000, with the balance to be amortized over a 10 year period. Commission Member Curlin asked if the bindery was having difficulties with any other taxing agents. Mr. Forrest stated that the City and also the Mixing agents. He noted that the bindery owed the taxing agents due to non-payment of payroll taxes. He explained that the agents were willing to work with them. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 10 November 1, 1993 Commission Member Miller questioned the projected actions of the Agency in the event the bindery is foreclosed. Mr. Steinhaus explained that staff had not had sufficient time to devise a plan of action. He stated that due diligence had just begun by having a consultant review the bindery's finances. Dennis A. Barlow, Senior Assistant City Attomey, agreed that additional time was needed to research the Agency's position, and plan a of action. Commission Member Negrete emphasized on the need to receive all pertinent information surrounding this item before foreclosure is initiated. Commission Member Curlin asked what was the number of businesses owned by Mr. Immbriani and the total full-time employees he employs. Mr. Forrest stated that there were binderies located in San Bernardino, Colton, San Francisco and a Mexicali Facility in Mexico. He stated that approximately 200 of all employees were full-time. Jim Lynas, 1160 Sinora, San Bemardino, recommended an audit be done on the businesses to determine the actual amount of full-time and part-time employees. He also recommended that a complete inventory be taken of the business. Commission Member Hernandez noted that the Bindery had been having difficulties since 1985; however, it has been able to maintain a $10 million payroll. Mr. Forrest explained that its revenues from the Bindery were 50 cents on each dollar eamed which went towards payroll, 15% benefits, 10% materials and 20% utilities and rent. Mr. Forrest discussed the payroll taxes owed by the Bindery. He explained that payment arrangements had been made to payback those funds. Commission Member Pope-Ludlam expressed a need to investigate the Bindery more in depth before initiating foreclosure. Mr. Steinhaus stated that staff could bring this item back to the Commission in two (2) weeks with additional information. Mr. Forrest revealed that the Bindery could not delay the banks decision to fund the loan for an additional two (2) weeks. He asked that the Commission rescind the foreclosure to enable them to receive the loan. He said that, if needed, the Bindery would file for Chapter 11 and Mr. Imbriani would still continue to run the operation. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 4:45 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 4:46 P.M. Commission Member Negrete recommended that Motions B and C be approved. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminIIrl 11 November 1, 1993 Commission Member Pope-Ludlam stated that normally when employers have that many employees in the City, they are rewarded in some way. Commission Member Oberhelman spoke about the negative messages being sent to taxpayers regarding this item. He also stressed the seriousness of not paying payroll taxes. Jim Penman, City Attorney, discussed the motions listed and gave direction to the Commission on the proper motions needed to rescind the foreclosure action. Commission Member Negrete made a motion, seconded by Commission Member Pope- Ludlam, to rescind the foreclosure action on Rogers Bindery. 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. Discussion ensued regarding the direction of staff regarding Roger's Bindery. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to reconsider this item. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None. Absent: None. Commission Member Miller made a motion, seconded by Commission Member Hernandez, that the foreclosure proceedings a rescinded; and that the matter be continued to November 15, 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Members Curlin; Oberhelman. Abstain: None. Absent: None. 8. ROGER'S BINDERY - CHRONOLOGY OF EVENTS (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Pope- Ludlam, to receive and file the attached staff report and Chronology related to Rogers Bindery. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Oberhelman; Devlin. Abstain: None. Absent: None. REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 12 November 1, 1993 CLOSED SESSION 9. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. 10.- ADJOURNMENT At 5:10 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, November 15, 1993 at 11:00 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 REGULAR MEETING COMMISSION MINUTES KJH:lmp:cminllrl 13 November 1, 1993