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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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cmin2J2 - 1 - MARCH 21, 1994 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. ---------------- 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n2J2 - 2 . MARCH 21, 1994 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: JOINT REGULAR MEETING COMMISSION MINUTES 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n2J2 - 4 - MARCH 21, 1994 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n2J2 - 5 - MARCH 21, 1994 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:Imp:cm1n2J2 - 6 - MARCH 21, 1994 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n2J2 - 7 - MARCH 21, 1994 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. JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cm1n2j2 - 8 - MARCH 21, 1994 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 JOINT REGULAR MEETING COMMISSION MINUTES KJH:1mp:cmin2J2 - 9 - MARCH 21, 1994