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HomeMy WebLinkAbout02- Minutes MAYOR AND COMMON COUNCIL COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO MINUTES JOINT REGULAR MEETING February 21, 1994 11:00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 11:29 am., on Monday, February 21, 1994, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Norine Miller. Absent: Dr. F. J. Curlin; Valerie Pope-Ludlam. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; David Edgar, Housing Division Manager, Development Department; John Hoeger, Project Manager, Development Department; Dennis Barlow, Senior Assistant City Attorney; Fred Wilson, Assistant City Administrator; Ray Salvador, Administrative Assistant; Mayor's Office; Lorraine Velarde, Executive Assistant to the Mayor, Sandra Medina, Administrative Operations Supervisor H, City Clerk's Office; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper. PUBLIC COMMENTS NOT ON THE AGENDA Jeff Wright, P. O. Box 2341, San Bernardino, CA, requested the Commission set its time limitations on public comments back to five (5) minutes, consistent with that of the Council. Mr. Wright also commented on a pothole located in front of the County Library. He recommended the hole be repaired before the City is faced with a liability suit. Mr. Wright ended his comments infomring the public of a Base Restoration Meeting to be held on March 9, 1994 at 7:00 pm.. COMMISSION MEMBER POPE-LUDLAM ARRIVED AT 11:30 A.M. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2J2 -1- FEBRUARY 21,1994 Denis LaBine, Coordinator, 42nd Congressional District, Congress Candidate, informed the Commission and Citizens that he would like to make himself available to answer any questions regarding the base closure. ---------------- CONSENT CALENDAR The Commission Members requested that items numbered "2", "4", "5" and "6", be removed from the Consent Calendar. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that the Consent Calendar items numbered "1" through "6" be adopted, except for items numbered"2", 114", "5" and "6", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 1. JOINT POWERS FINANCING AUTHORITY (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, March 21, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 3. REDEVELOPMENT COMMITTEE MINUTES I (Community Development Commission) i Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of January 19, 1994 be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 2. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community D v lopment Commissjon) Warner Hodgdon, Citizen, indicated that the statement he read at the meeting of February 7, 1994, was from a letter he wrote to the Mayor dated February 7, 1994 and not from The Sun Newspaper as indicated in the minutes. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2J2 -2- FEBRUARY 21,1994 Commission Member Oberhelman indicated that Commission Member Miller's vote was inadvertently left off of Item Number 6 on Page 6. Commission Member Hernandez made a motion, seconded by Commission Member Miller, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of February 7, 1994, be approved as amended. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. Development Department 4. PROPOSED TRAFFIC MODELER POSITION (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to approve funding of the proposed Traffic Modeler Position in the Traffic Engineering Division of the Public Works Department in an annual amount not to exceed $26,000. Further, that the FY 93/94 Economic Development Agency Budget be increased accordingly. Jeff Wright, P. O. Box 2341, San Bernardino, CA, asked for the job description for a Traffic Modeler. Kenneth J. Henderson, Executive Director, Development Department, explained that this item was submitted by the Traffic Engineering Division for this position. He stated that the individual would establish a traffic and circulation impact model for San Bernardino which would be updated annually. Dennis A. Barlow, Senior Assistant City Attorney, explained that the funds requested could be used for the purpose of financing for this position. The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Curlin. 5. APPLICATION FOR FFDERAL EMERGENCY SHELTER .RANT PROGRAM (ESGP) FUNDING FOR FY 1994-1995 (Major and Common Council) Council Member Oberhelman made a motion, seconded by Council Member Hernandez, to approve submittal of the attached Department of Housing and Urban Development (HUD) application for $89,000 in FY 1994-95 Emergency Shelter Grant Program (ESGP) Assistance funds and authorize the Mayor and City Clerk to then execute any documents necessary to effectuate receipt of said funds. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2j2 -3- FEBRUARY 21, 1994 Kenneth J. Henderson, Executive Director, Development Department, indicated that the staff report listed the proposed uses for this project. He explained that the service providers would be selected through an RFP process and that final funding approval would be approved by the Council. The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Council Member Curlin. Agency Administration 6. AMENDMENT TO THE AGENCY'S CONFLICT OF INTEREST CODE RELATIVE TO THE REQUIREMENT FOR MAN(.' STATEMENT OF CONOMIC INTEREST FOB (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Miller, that the following resolution be approved and adopted: RESOLUTION NUMBER 5389 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AMENDING RESOLUTION NO. 4420 (AS AMENDED BY RESOLUTION NOS. 4852, 5048, 5057 AND 5356) ENTITLED, IN PART, "RESOLUTION . . . ADOPTING A CONFLICT OF INTEREST CODE . . .", BY AMENDING APPENDIX "A" TO ADD THE REQUIREMENT THAT CONSULTANTS TO THE ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MUST FILE STATEMENTS OF ECONOMIC INTEREST. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was prepared at the request of the City Clerk's Office in order to expand the resolution to include consultants. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. END OF CONSENT CALENDAR Development Depar m n CONTINUED FROM F BR ARY 7 1994 7. SAN B_ERNARpINO BASEBALL STAi IUM A 1 1�1 (Mayor and Co mmon Council) (Community Development Commission) JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n2j2 •4• FEBRUARY 21, 1994 Kenneth J. Henderson, Executive Director, Development Department, stated that the Commission conducted a workshop where a report was received from the Baseball Stadium Ad Hoc Committee selected to work on this project. He discussed a memorandum received from the Mayors Office regarding other cities approach to building baseball stadiums. Mayor Minor indicated that the Council must first consider if it would like to build a stadium. Jim Wehmeier, General Manager, Spirit Baseball, explained that the ownership of the team is very interested in staying in San Bernardino. He explained that they would be willing to discuss a longer term lease with the City. He indicated that the team was not tied to a major league club. COUNCILMAN OBERHELMAN WAS EXCUSED AT 11:51 A.M. Councilman Hernandez expressed his concern about building a stadium in the City at this time. He felt that the City had other priorities that needed to be attended to before the stadium. COUNCILMAN OBERHELMAN RETURNED AT 11:52 A.M. Mayor Minor believed that the stadium would be a means of attraction to the City. He indicated that the stadium would not impact the general fund. Mr. Wehmeier stated that the team owners would be willing to sign the lease extension before the stadium was built to show its commitment to San Bernardino. Superintendent Terrell, Past Chairman of the Baseball Committee, spoke on the commitment of the committee members in search for a stadium location. He recommended that the City build a stadium that could be used for both baseball and soccer. Mr. Terrell commented on the Orange Show site being the best location to build the stadium. He encouraged the Council to move ahead with this project indicating it would bring funding to the City through other resources. Larry Graham, Past President, Chamber of Commerce, stated that the Chamber supports the building of a new stadium. He believed this could be part of the Rediscover San Bernardino efforts of the City. He also believed that the stadium could bring funding to the City through hotels, restaurants, and other resources within the City. COMMISSION MEMBER MILLER WAS EXCUSED AT 12:44 P.M. Councilwoman Pope-Ludlam expressed concern regarding the financing of this item. The Council Members discussed the concept of a new stadium in the City. Councilman Hernandez reiterated his concern regarding other needs in the City. Jeff Wright, P. O. Box 2341, San Bernardino, believed that the City could build a multi-use facility that could be used for a variety of activities. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n2J2 -5- FEBRUARY 21, 1994 rL Robert Castaneda, citizen, agreed with Councilman Hernandez. He felt the City had other priorities that it should handle first before building a new stadium. Jim Deskus, General Manager, Radisson .Hotel, believed that the stadium would bring improvement to the City as well as businesses within the City. Eddie Muir, Marlborough Homes, agreed that the baseball stadium would be an improvement for the City and also a selling point when dealing with home sales. Avery Cates, citizen, indicated that San Bernardino could be a leader if it undertakes this project and moves forward. Ann Atkinson, 1335 "E"Street, San Bemardino, stated that the City should do anything that would provide jobs and enhance the City. She said that this project could make San Bernardino a better place to live. Denis LaBine, Coordinator, 42nd Congressional District, Congressional Candidate, spoke on the various changes taking place in San Bernardino including the closure of Norton Air Force Base. He advised the Council to take advantage of the opportunity it has before them. He also commented on building the stadium to be used for multiple purposes. Councilman Negrete made a motion, seconded by Councilman Oberhelman, to approve a new stadium concept. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. Mayor Minor recessed the meeting of the Mayor and Common Council and the Community Development Commission until 2:30 pm. MEETING RECONVENED The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was reconvened by Mayor Tom Minor at approximately 2:35 pm. ROLL CAT-,L Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Ralph Hemandez; David Oberhelman; Valerie Pope-Ludlam; and Jerry Devlin. Absent: Dr. F. J. Curlin; Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; David Edgar, Housing Division Manager, Development Department; John Hoeger, Project Manager, Development Department; Dennis Barlow, Senior Assistant City Attorney; Fred Wilson, Assistant City Administrator, Ray Salvador, Administrative JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2j2 -6 - FEBRUARY 21, 1994 Assistant, Mayor's Office Lorraine Velarde, Executive Assistant to the Mayor, Sandra Medina, Administrative Operations Supervisor H, City Clerk's Office; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper. CONTINUED FROM FEBRUARY 7. 1 94 7. SAN BERNARDINO BASEBALL STADIUM (Mayor and Common Council) (Community Development Commission) Mayor Minor gave a brief overview on the discussion of this item during the morning session. Councilman Hernandez indicated that the site would need to be determined before the financing. COUNCILWOMAN MILLER ARRIVED AT 2:36 P.M. Timothy Sabo, Special Counsel, Sabo and Green, discussed possible financing methods to pay for the stadium. He explained that two or more methods could be used if the Commission desired. Mr. Sabo indicated that off-season uses for the stadium could also be a means for funding the stadium. He recommended the Commission complete further study on this item, stating that if a multi-use facility is considered, they must determine the additional costs for that type of facility. Discussion ensued regarding comments made by Mr. Sabo. Lud Benson, Vice President, Local Carpenters Union, informed the Council that the Union has previously assisted in funding projects such as baseball stadiums. He indicated that the Executive Director of the union would be in town within a week, and he would like to meet with the Commission regarding his assistance. Commission Hernandez recommended hiring a consultant to view other stadium's and also the possibility of building a multi-use facility. Jeff Wright, P. O. Box 2341, San Bernardino, made comments regarding the stadiums location and also the ownership of the stadium. John Stephens, citizen, discussed the high crime rate in the City and also the costs to attend a baseball game. Warner Hodgdon, citizen, discussed his familiarity with ownership of multi-use facilities. He expressed concern regarding the need to build a new stadium for the City as well as the Spirit. JOINT REGULAR MEETING COMMISSION MINUTES KJII:Imp:cmin2J2 -7. FEBRUARY 21, 1994 Commission Member Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to hire a consultant to look at the feasibility of the stadium as a multi-use facility. Commission Member Pope-Ludlam recommended that a comprehensive plan of the City be reviewed along with the location for the stadium. Commission Member Hernandez stated that a comprehensive plan could be looked at and that the Ad Hoc Committee should work with the consultants. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. Francine Wixen, Broker, gave a brief report to the Commission regarding the site location for the facility. She recommended the Southern Pacific site located in the central city south portion of the City. She felt it would be a major improvement to a blighted area. Ms. Wixen stated that she owned property in that area near the railroad. Scott Meam, Southern Pacific, extended his desire to work with the City in conjunction with this project. He explained that Southern Pacific would be willing to enter into a long term lease or a purchase plan to provide for this stadium. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 8. WELLS FAR GO LINE OF CREDIT ExTENSI(1N (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, explained that this item had been before the Commission on several occasions. He stated that the Line of Credit with Wells Fargo was established in 1990 for the purpose of completing several projects. He indicated that there was currently a balance of $800,000 available. Commission Member Hernandez made a motion, seconded by Commission Member Devlin, to authorize a one year extension of certain Lines of Credit with Wells Fargo Bank and authorize the execution of said documents. (No vote taken) Commission Member Oberhelman questioned the possibility of paying off Wells Fargo and reopening a line of credit with another financial institution. Mr. Henderson stated that staff had discussed this possibility indicating that this would probably be the last time the Agency would request a renewal. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2J2 8- FEBRUARY 21, 1994 Commission Member Oberhelman recommended the Agency see what other lending institutions had available. He felt the market was very competitive and that the Agency could possibly obtain a better interest rate than that with Well Fargo. Commission Member Oberhelman made a motion, seconded by Commission Member Hemandez, to continue this item until March 7, direct staff to determine the market, and to obtain a 30 day extension from Wells Fargo if the market cannot be determined before the March 7, Commission Meeting. Mr. Henderson explained that the line of credit was used to fund projects such as the Westside Plaza, Portugal and Neal and the HAB Land Development. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 9. STORAGE SPACE LEA - 201 NORTH "E" STREET (INLAND EMVIgE SYMPHONY) (Community Development Commission) Commission Member Miller made a motion, seconded by Commission Member Hernandez, to authorize the Executive Director to draft and execute a lease and all other necessary documents with the Inland Empire Symphony for the utilization of approximately 3,600 square feet of the old "Thrifty Building" space, with said space to be utilized by the Symphony for storage purposes on the second floor of the 201 building. Kenneth J. Henderson, Executive Director, Development Department, noted that the storage would be on the "first floor" and not the "second floor" as indicated in the motion. Commission Member Oberhelman questioned the $1 a year lease indicating that the documents to be stored were possibly revenue producing documents. Commission Member Miller explained that the documents to be stored were from the James Guthrie Library. She stated that the documents needed to be organized and categorized before they could become revenue producing. Jeff Wright, P. O. Box 2341, San Bernardino, commented on the location where the files would be stored. He questioned whether or not the condition of the location would cause damage to the files. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. JOINT RF,GULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2J2 9- FEBRUARY 21, 1994 10. OFFIC AS - 201 NORTH "E" STREET (SAB & .R N) (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Hemandez, to authorize the Executive Director to draft and execute a lease and all other necessary documents with Mr. Timothy Sabo, of Sabo and Green, for the utilization of approximately 720 square feet of office space on the second floor of the 201 Building. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 11. CENTRAL POLICE STATION CONSTRUCTION C ONTRA TS/BIDDING (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to authorize the execution of a Construction Management contract with Millie and Severson, Incorporated, for general contracting and construction management services in connection with the construction of the Central Police Station; further, that the Commission authorize advertisement for Trade Contractor bids for construction of the Station; further, that the Commission increase the Agency budget in an amount of$369,714 for construction management services; and, further, that the Commission direct staff to prepare financing documents for a Certificates of Participation issue to yield approximately $5,000,000 in construction funds, and a Tax Allocation Bond issue in an amount necessary to provide for completion of construction and furnishing of the Station. Commission Member Hernandez questioned the rising cost of building a new police station. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 3:32 P.M. Commission Member Miller discussed the costs needed to acquire the land for the police station. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 3:33 P.M. Timothy C. Steinhaus, Administrator, Economic Development Agency, discussed the funding set-aside for the police facility during the budget hearing. He indicated that the cost to build the new police station, plus the land acquisition costs, would be approximately $14 million. Mr. Henderson explained that the costs to demolish the existing police station would be included in the State Building costs. He stated that since interest rates vary, final costs for the police station could not be determined at this time. Timothy Sabo, Special Counsel, Sabo and Green, indicated that a $14 million bond would cost about 2 1/2 times the face value of the bonds over a period of 25 - 30 years. Mr. Henderson explained that a survey taken of similar facilities built in other areas showed the estimated costs of the City's to be significantly less than others. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n2j2 - 10- FEBRUARY 21, 1994 Commission Member Negrete expressed a need to continue with this item while the market was good. Jeff Wright, P. O. Box 2341, San Bernardino, recommended the City have smaller multiple police stations rather than one large station. He felt that this would help the officers reach their destinations quicker. Chairman Minor explained that police officer are usually dispatched from the field and not from the central station. The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Curlin. CONTINUED FROM FEBRUARY 7. 1444 12. ARROW VISTA STANDING INVENTORY (Community Development Commission) j Timothy C. Steinhaus, Administrator, Economic Development Agency, explained the previous action taken by the Commission regarding the Arrow Vista Housing Project. He discussed the agreement in principal which was prepared and signed by both the Agency and the developer regarding the homes. He emphasized that the agreement only addressed the standing inventory and not the other loans held by Mr. Dukes from the Agency. Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on all the existing loans held by Mr. Dukes such as the business reorganization loan and the sewer capacity loan. He indicated that the developer wanted to change the terms of the agreement and also be forgiven for the sewer capacity loan. He also indicated that the developer wanted to delay the repayment of the business reorganization loan until the reorganization of one of his other properties. Commission Member Pope-Ludlam expressed concern regarding the agreement being modified after it was reviewed in Closed Session by the Commission. Mr. Henderson stated that the items added to the list were added by Mr. Dukes and not by the Agency. Discussion ensued regarding the terms of the agreement presented and signed by Mr. Dukes. Commission Member Devlin commented on the amount of forgiveness that the developer was requesting. Mr. Henderson discussed the new terms that Mr. Dukes was requesting from the Agency. He rerninded the Commission of its prior decision to give the developer the three models to allow him to increase his cash flow. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:00 P.M JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2J2 11 - FEBRUARY 21, 1994 Commission Member Oberhelman questioned the timeframe when the restructuring of the developers other property would be complete. Mr. Henderson indicated that the restructuring of the property should be complete by the end of the year. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to direct the counsel to take whatever appropriate legal action necessary, foreclosure or breach of contract, to terminate the development agreement between Dukes-Dukes and Associates and the Agency so that the Agency could obtain total control of the project. Commission Member Pope-Ludlam questioned the agreement included in the staff report. Chairman Minor commented that the agreement listed was only an agreement in principal. He explained that the agreement was suppose to be brought back before the Commission by January 31, 1994. Dennis A. Barlow, Senior Assistant City Attorney, indicated that the agreement expired on its own terms since no action was taken by January 31, 1994. Mr. Henderson reiterated the terms requested by the developer, stating that he would like to have forgiveness of his loans. He indicated that late Friday afternoon, the developer sent a fax to the Agency listing his new terms. Commission Member Pope-Ludlam informed the Commission that the developer was not present because he believed this item would be continued. Commission Member Oberhelman felt that the developer had refused to accept the agreement in principal which the Commission agreed upon. Chairman Minor discussed the amount of time, effort and money that has been put into this project. He recommended the Commission come to some type of resolution to this project. The motion failed by the following vote: Ayes: Commission Members Oberhelman; Devlin; Miller. Noes: Commission Members Negrete; Hernandez; Pope-Ludlam. Abstain: None. Absent: Commission Member Curlin. 13. CAMDEN DEVELOPMENT ASSISTANCE AGR M NTS (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, gave a brief overview of this item and stated that it had been reviewed by the Agency Counsel and signed by the developer. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete, to authorize the Executive Director to execute assistance agreements with Camden Development, Ltd., as drafted by Agency Special Counsel; further that the Executive Director be authorized to execute such other documents as are required to carry out the terms of the agreements JOINT REGULAR MEETING COMMISSION MINUTES KJlr:1mp:cmin2j2 - 12- FEBRUARY 21, 1994 and be authorized to make such non-substantive corrections in the agreements as are approved by Agency Counsel; and further, that the Economic Development Agency budget of 1993-1994 be amended to provide an additional $1,250,712 to be used for assistance to the University Village Shopping Center development. Mr. Henderson indicated that there were two additional motions that would need to be considered in connection with this project listed in a memorandum submitted by the Public Works Department. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete, that the (1) Agreement with Camden Development be revised by interdelineation to delete the $125,000 for installation of traffic signals at University Parkway and Varsity/State Street; and (2) authorization be granted to reimburse Hughes Market for one-half(1/2) of the total project cost, for installation of traffic signals at University Parkway and Varsity/State Street, up to the amount of $62,500, subject to acceptance of the traffic signals by the Director of Public Works/City Engineer. Chairman Minor asked if the property had been completely leased up. Ari Miller, Camden Development, stated that he had four tenants and in negotiations with two additional tenants. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent: Commission Member Curlin. CONTINUED FROM FEBRUARY 7. 1994 14. LOCAL BID PREFERENCE CgITFgIA (Mayor and Common Council) (Community Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this was a joint item between the Agency and the City. Fred Wilson, Assistant City Administrator, explained that his office had completed a detailed analysis of both ordinances. He indicated that although staff was not recommending anything, they would prefer the option similar to the County of San Bernardino. He stated that that option could be implemented immediately. Councilwoman Pope-Ludlam spoke on the pros and cons of local preference as stated to her by a local businessperson. Mayor Minor emphasized that the problem incurred by local businesses is that they can only bid on projects located in their own cities. Councilman Hernandez stated that the City should continue to take bids from other city vendors but allow preference to the local vendor when they are both equally qualified. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n2J2 -13- FEBRUARY 21, 1994 Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to allow a 1% local preference criteria in the City. Bill Yates, local businessman, 741 South Lugo, San Bernardino, stated that he opposed this issue. He spoke on cities having a 1% to a 3% preference. He indicated that if the City chose a preference of more than 1%, it could cause difficulty for businesses. Mr. Yates gave the Commission various examples of how the preference criteria could cause problems for businesses. Dennis A. Barlow, Senior Assistant City Attorney, stated that if the City chose to allow a 1% preference, the attorney's would need to bring back an ordinance to implement the change as mandated by the City Charter. Discussion ensued regarding the control of local preference when using subcontractors. Councilman Hernandez recommended informing contractors about the City's policy regarding the preference criteria. Councilman Oberhelman expressed concern regarding the contractors need to control costs at his expense. He felt that the City could not tell the contractor who he can or cannot hire. Councilman Oberhelman made a substitute motion, seconded by Councilman Devlin, that the local preference criteria be utilized whenever possible. Jeff Wright, P. O. Box 2341, San Bernardino, believed that the current market would make it possible for local businesses to submit lower bids. The motion failed by the following vote: Ayes: Council Members Oberhelman; Devlin; Miller. Noes: Council Members Negrete; Hernandez; Pope-Ludlam. Abstain: None. Absent: Councilman Curlin. Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to allow a 1% local preference criteria in the City. The motion failed by the following vote: Ayes: Council Members Negrete; Hernandez; Pope- Ludlam. Noes: Council Members Oberhelman; Devlin; Miller. Abstain: None. Absent: Councilman Curlin. 15. CALIFORNIA INN SRO (Community Development Commission) Chairman Minor stated that this item would be discussed in Closed Session. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2j2 - 14- FEBRUARY 21, 1994 16. FREEWAY HOME CENTER (Community Development CommiUi l A lengthy discussion ensued regarding the need to discuss this item in closed session. It was suggested that the item be brought up in closed session, and if the need was not present, the discussion on the item would continue in the open forum. CLOSED SESSION 17. ADJOURN TO CLOSED SESSION_ At 5:11 pm., the Mayor and Common Council and the Community Development Commission adjourned to Closed Session to discuss the following: A. to confer with the attorney regarding pending litigation which has been initiated formally to which the Commission is a party pursuant to Government Code Section 54956.9(a) as follows: B. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b)(1), as there is significant exposure to litigation; 12. ADJOURNMENT At 6:16 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, March 7, 1994 at 11:00 am., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. � Respectfully submitted: KENNETH J. HENDERSON Executive Director/ Secretary to the Commission COMMISSION MINUTES JOINT REGULAR MEETING FEBRUARY 21, 1994 KJH:Imp:cm1n2j2 -15-