HomeMy WebLinkAbout01- Community Development MAYOR AND COMMON COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
AND THE JOINT POWERS FINANCING AUTHORITY
OF THE CITY OF SAN BERNARDINO
MINUTES
JOINT REGULAR MEETING
March 21, 1994
11:00 a.m.
The Joint Regular Meeting of the Mayor and Common Council, the Community Development
Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at
approximately 3:05 pm., on Monday, March 21, 1994, in the Council Chambers, City Hall, 300 North
"D" Street, San Bernardino, California.
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-
Ludlam; Norine Miller. Absent: Dr. F. J. Curlin.
STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; James Penman, City Attorney; Dennis Barlow,
Senior Assistant City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive
Assistant to the Mayor; Roger Hardgrave, Director of Public Works; Rachel Clark, City Clerk;
Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper.
PUBLIC COMMENTS NOT ON THE AGENDA
Jeff Wright, P. O. Box 2341, San Bernardino, CA, stated that he would like to make
comments regarding the public comments time limit at Commission Meetings.
Mayor Minor informed Mr. Wright that the public comments item was on the Agenda and that
he could speak to the item when it was presented to the Commission.
COMMISSION MEMBER CURLIN ARRIVED AT 3:10 P.M.
Albert Martinez, P. p. Box 222, San Bernardino, asked if the Commission could answer
questions regarding items on the Agenda.
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Mayor Minor explained to the public that public comments are only for items not on the
Agenda
Bob Nelson, Citizen, expressed concern regarding the restrictions placed on individuals when
addressing the Commission. He spoke of the freedom of speech as protected in the Constitution.
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CONSENT CALENDAR
The Commission Members requested that items numbered "2", "3", "4", "5", "6", "T' and "8",
be removed from the Consent Calendar.
Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, that the Consent Calendar items numbered "1" through "8" be adopted except for items
numbered "2", "3", "4", "5", "6", "T' and "8", respectively.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
1. JOINT POWERS FINANCING AUTHORITY
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, that the Regular Meeting of the Joint Powers Financing Authority be continued to
Monday, April 18, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
2. COMMUNITY DEVELOPMENT COMMISSION MINUTES
(Community Development Commission)
Jeff Wright, P. O. Box 2341, San Bernardino, stated Page 1 of the minutes under public
comments would read "County Law Library" instead of "County Library".
Commission Member Oberhelman made a motion, seconded by Commission Member
Hernandez, that the minutes of the Community Development Commission of the City of San
Bernardino for the meetings of February 21, 1994 be approved as amended.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
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3. INSTALLATION OF LANDSCAPING IN WATERMAN AVENUE AND HIGHLAND
AVENUE MEDIANS
(Community Development Commission)
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding citizens being
assessed to pay for medians that will benefit business owners.
Commission Member Hernandez questioned MBE/WBE on this project.
Roger Hardgrave, Director of Public Works, explained the process used in selecting the
contractor for this project. He indicated that there was no back-up included with this item that
showed good-faith efforts in abiding by the MBE/WBE.
Commission Member Hernandez stated that he would like to have this item continued until
back-up was provided which would include proof of compliance with MBE/WBE.
Commission Member Hernandez made a motion, seconded by Commission Member Curlin,
that the matter be continued to April 4, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Pope-Ludlam. Noes: Commission Members Devlin; Miller. Abstain:
None. Absent: None.
5. HOUSING DIVISION QUARTERLY ACTIVITY R .PORT
(Community Development Commission)
Commission Member Oberhelman made a motion, seconded by Commission Member Curlin,
to receive and file the attached Housing Division Quarterly Activity Report for the months of October,
November and December 1993.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
4. BETHLEHEM HO JS .
(Mayor and Common Council)
Councilman Oberhelman stated that the synopsis which reads "September 1994" should read
"September 1993"
Councilman Oberhelman made a motion, seconded by Councilman Hernandez, that the
following resolution be approved and adopted:
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KJH:Imp:cm1n2J2 - 3 - MARCH 21, 1994
RESOLUTION NUMBER 94-75
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO.
The motion carried by the following vote: Ayes: Council Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent:
None.
5. STANDARD MORTGAGE OMPANY, INC., LOAN GUARANTEE
(Community Development Commission)
Kenneth J. Henderson, Executive Director, Development Department, explained that a new list
of properties to collateralize the loan guarantee for Standard Mortgage was submitted by Mr. Steiler
and distributed to the Commission Members.
Commission Member Oberhelman commented on the values placed on the properties listed in
the previous list submitted by Mr. Steiler. He felt that some of the values listed were very generous
considering todays market.
Commission Member Curlin questioned the Agency's position if the loan guarantee was
approved.
Mr. Henderson discussed the terns of the loan and the risks that would be involved. He
stated that the Agency would be in second or third trust deed position.
Commission Member Oberhelman noted that there was no business plan attached to the back-
up for review which would indicate how the funds would be used.
Commission Member Curlin suggested that additional research be completed on this project
before requesting approval from the Commission.
Commission Member Pope-Ludlam indicated that this item was discussed during the
Redevelopment Committee. She commented on the various amounts of loan guarantees completed by
the Agency.
Chairman Minor commented on Standard Mortgage's commitment to the City for over 35
years.
Richard W. Steiler, Standard Mortgage, explained the values given to the properties listed in
the back-up. He indicated that he had approximately three (3) offices in San Bernardino, and
discussed the downsizing in employees that he had completed due to the recent market.
Discussion ensued regarding the guarantee of the loan being done by the Agency.
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Commission Member Hernandez made a motion, seconded by Commission Member Negrete,
to approve a $1.7 million loan guarantee for Standard Mortgage Co., Inc., for the purposes of
obtaining a working capital loan, conditioned upon the provision of adequate real estate collateral.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez•, Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain:
None. Absent: None.
6. AWARD OF BID - "E" STREET TERRACE
(Community Development Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that there was a
total of six (6) responses received for this bid.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, that the Community Development Commission:
Award a bid in the amount of$65,121.09 to Wyatt construction for the construction of public
stairway and seating amenities and authorize $28,558.16 for contingency, engineering and
inspection services, and archaeological monitoring; and,
Authorize a $93,679.25 increase in the allocation of bond proceeds from State College project
area to the Central City project area for the construction; and,
Authorize staff to administer and execute change orders, limited to the amount of the
contingency ($11,958.16).
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None.
Absent: None.
7. GALSTIAN FAMILY TRUST LOAN RFLTFF REQUEST
(Community Development Commission)
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to approve the loan relief request submitted by the Galstian Family Trust subject to the terms
and conditions set forth in the attached staff report, direct Agency Counsel to prepare the necessary
amendment to the agreement between the Redevelopment Agency and the Galstian Family Trust and
authorize the Chairman and Executive Director to execute any documents necessary to effectuate the
transaction as described herein.
Kenneth J. Henderson, Executive Director, Development Department, discussed the terms and
conditions of the proposed loan for this project.
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Chairman Minor expressed concern regarding the Galstian Family Trust seeking assistance
from the Agency first before a lending institution.
Commission Member Curlin commented on the lack of maintenance being done to the
property. He requested that they be required to provide better upkeep of their property.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the City's
continued effort to assist small malls when the larger malls are experiencing a high vacancy rate.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None.
Absent: None.
8. SAN MARCOS STREET IMPROVEMENT PROJECT
(Community Development Commission)
(Redevelopment Committee Recommendation)
Commission Member Hernandez made a motion, seconded by Commission Member Curlin,
that this matter be continued to April 4, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None.
Absent: None.
RECESSED MEETING
At 4:18 pm., Mayor Minor recessed the meeting of the Mayor and Common Council and the
Community Development Commission for five (5) minutes.
MEETING RECONVENED
The meeting of the Mayor and Common Council and the Community Development
Commission was reconvened at 4:26 pm.
ROLL CALL
Roll call was taken with the following members present: Chairman Tom Minor; Commission
Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-
Ludlam; Norine Miller. Absent: Dr. F. J. Curlin.
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STAFF PRESENT
Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson,
Executive Director, Development Department; James Penman, City Attorney; Dennis Barlow,
Senior Assistant City Attorney; Shauna Clark, City Administrator, Lorraine Velarde, Executive
Assistant to the Mayor; Roger Hardgrave, Director of Public Works; Rachel Clark, City Clerk;
Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development
Department.
OTHERS IN ATTENDANCE
Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper.
9. PUBLIC COMMENTS AT COMMISSION MEETINGS
(Community Development Commission)
(Councilman Curlin's Recommendation)
COMMISSION MEMBER CURLIN ARRIVED AT 4:27 P.M.
COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:27 P.M.
Jeff Wright, P. O. Box 2341, San Bernardino, CA, commented on the changes being made to
the Brown Act effective April 1, 1994. He also commented on the length of time needed to speak
during public comments in order to make a specific point.
COMMISSION MEMBER HERNANDEZ RETURNED AT 4:28 P.M.
Commission Member Oberhelman made a motion, seconded by Commission Member Devlin,
that this matter be referred to the Legislative Review Committee.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez.
Absent: None.
10. FREEWAY HOME CENTER
(Community Development Commission)
Timothy C. Steinhaus, Administrator, Economic Development Agency, requested this item be
continued for thirty (30) days.
Commission Member Pope-Ludlam made a motion, seconded by Commission Member
Hernandez, to continue this matter until April 18, 1994.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None.
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11. HIRING OF OUTSIDE COUNSEL
(Community Development Commission)
(Councilman Hernandez's Recommendation)
Commission Member Hernandez explained that the audit on the City Attorney's Office
indicated that the Mayor and Common Council should hire another deputy attorney for the City
Attorney's Office. He felt that since the City's funds are limited, the Redevelopment Agency attorney
could be transferred back to the City. He emphasized that the Redevelopment Agency pays
approximately 90% of the Agency Attorney's salary.
Commission Member Hernandez made a motion, seconded by Commission Member Pope-
Ludlam, to direct staff to prepare all the legal documents required to effectuate termination, including
the 30-day notice required under the agreement. (No Vote Taken)
Dennis A. Barlow, Senior Assistant City Attorney, discussed items listed in the executive
summary of the audit of the City Attorney's Office. He commented on the costs for hiring outside
counsel versus in-house counsel and the savings to the City and the Agency for using in-house
counsel.
Commission Member Oberhelman spoke of the amount of funds the Agency currently pays to
outside counsel.
Chairman Minor commented on the City Attorney's Office and the findings of the audit.
Commission Member Hernandez discussed various legal opinions prepared by the City
Attorney's Office when dealing with controversial issues of the City.
Commission Member Curlin related information he had received from the Agency
Administrator regarding the work of the City Attorney's Office for the Agency.
Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the City
Attorney's Office would always be involved with Agency projects in order to achieve the best interest
of the City.
Jim Penman, City Attorney, responded to comments made by the Commission Members
regarding the use of outside attorneys versus in-house attorney's and the cost. He explained that
attorneys who represent cities, follow the law that the corporation (City) is the client. He stated that
their job was to ensure the best interest of the City.
Mr. Penman indicated that there had been brief discussions regarding the Agency paying the
Agency Attorney on an hourly rate, rather than a flat rate.
COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:23 P.M.
Discussion ensued regarding the role of the City Attorney's Office.
COMMISSION MEMBER OBERHELMAN RETURNED AT 5:24 P.M.
COMMISSION MEMBER MILLER WAS EXCUSED AT 5:25 P.M.
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COMMISSION MEMBER MILLER RETURNED AT 5:26 P.M.
Commission Member Hernandez requested that an RFQ be initiated for Economic
Development Agency general counsel services.
Commission Member Hernandez made a substitute motion, seconded by Commission Member
Pope-Ludlam, to direct staff to prepare all the legal documents required to effectuate termination,
including the 30-day notice required under the agreement; and that an RFQ be initiated for Economic
Development Agency general counsel services.
The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;
Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain:
None. Absent: None.
12. ADJOURN TO CLOSED SESSION
There were no items for discussion in Closed Session.
13. ADJOURNMENT
At 5:52 pm., the meeting of the Mayor and Common Council/Community Development
Commission was adjourned to Monday, April 4, 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
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