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HomeMy WebLinkAbout02-02-2004 MinutesMINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION AND THE SAN BERNARDINO CITY HOUSING AUTHORITY OF THE CITY OF SAN BERNARDINO JOINT REGULAR MEETING FEBRUARY 2, 2004 COUNCIL CHAMBERS The joint regular meeting of the Mayor and Common Council and Community Development Commission and the San Bernardino City Housing Authority of the City of San Bernardino was called to order by Mayor/Chairman Valles at 1:35 p.m., Monday, February 2, 2004, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Roll Call Roll call was taken by City Clerk Clark with the following being present: Mayor/Chairman Valles; Council Members/Commissioners Estrada, Derry, Suarez, Anderson, McCammack; City Attorney Penman, City Clerk Clark, City Administrator Wilson. Absent: Council Members/Commissioners Longville, McGinnis. Council Member/Commissioner Longville Arrived At 1:45 p.m., Council Member/Commissioner Longville arrived at the Council meeting. Council Member/Commissioner McGinnis Arrived At 2:19 p.m., Council Member/Commissioner McGinnis arrived at the Council meeting. 1. Closed Session Pursuant to Government Code Section(s): A. Conference with legal counsel - existing litigation - pursuant to Government Code Section 54956.9(a): The Redlands Association v. City of San_Bernardino and its Municipal Water Department, et al. - San Bernardino Superior Court Case No. SCVSS 096182; Stubblefield Construction Company, et al. v. City of San Bernardino, et al. - San Bernardino Superior Court Case No. SCV 252058; 1 02/02/2004 City of San Bernardino Municipal Water Department v. Department of the Army - United States District Court Case Nos. CV 96-8867 and CV 96- 5205. B. Conference with legal counsel - anticipated litigation - significant exposure to litigation - pursuant to subdivision (b) (1), (2), (3) (A-F) of Government Code Section 54956.9: Neighbors of San Manuel Tribe v. City Temeka Goffney, Narvella Goffney, Debron Lilly, and LaQuisha Day V. City C. Conference with legal counsel - anticipated litigation - initiation of litigation - pursuant to subdivision (c) of Government Code Section 54956.9: City v. San Manuel Band of Serrano Mission Indians D. Closed Session - personnel - pursuant to Government Code Section 54957: Appointment City Engineer E. Closed session with Chief of Police on matters posing a threat to the security of public buildings or threat to the public's right of access to public services or public facilities - pursuant to Government Code Section 54957. F. Conference with labor negotiator - pursuant to Government Code Section 54957.6: 1. Negotiator: Linn Livingston, Human Resources Director Employee Organization: San Bernardino City Professional Fire Fighters' Association G. Conference with real property negotiator - pursuant to Government Code Section 54956.8: San Bernardino City Housing Authority MEADOWBROOK PROJECT I. Property: APN 0135-292-39, Allen Street 2 02/02/2004 Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the San Bernardino City Housing Authority and Bonnie S. Johnson and George W. Ashworth, property owners Under Negotiation: Purchase price, terms and conditions 2. Property: APN 0135-291-16 and 0135-291-17 188 N. Allen Street Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the San Bernardino City Housing Authority and Trust Deeds to Gold Inc., property owner Under Negotiation: Purchase price, terms and conditions 3. Property: APN 0135-291-18 174 N. Allen Street Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the San Bernardino City Housing Authority and Luis F. Gonzalez, property owner Under Negotiation: Purchase price, terms and conditions 4. Property: APN 0135-291-19 168 N. Allen Street Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the San Bernardino City Housing Authority and Luis F Gonzalez and Trinidad Gonzalez, property owners Under Negotiation: Purchase price, terms and conditions 5. Property: APN 0135-291-21 192 E. King Street Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the San Bernardino City Housing Authority and Karyn Goodwin, property owner Under Negotiation: Purchase price, terms and conditions 3 02/02/2004 6. Property: APN 0135-291-22 186 E. King Street Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the San Bernardino City Housing Authority and Lupe E Aragon, property owner Under Negotiation: Purchase price, terms and conditions 7. Property: APN 0135-292-14 199 E. King Street 0 Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the San Bernardino City Housing Authority and Judge Goodman, property owner Under Negotiation: Purchase price, terms and conditions Property: APN 0135-292-15 140 N. Allen Street Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the San Bernardino City Housing Authority and Arthur G. Romero and Barbara Romero, property owners Under Negotiation: Purchase price, terms and conditions 9Tx/DEL ROSA - CURTIS HIGH SCHOOL 9. Property: APN 278-061-54, 278-061-68, 278-061-74, 278-061-75, 278-201-30, 278-201-31, 278-201-32, 278-201-33, 278-201-34 Negotiating Parties: Gary Van Osdel, Executive Director, on behalf of the Redevelopment Agency and San Bernardino City Unified School District, property o A ner Under Negotiation: Purchase price, terms and conditions 4 02/02/2004 City Attorney Penman announced that the following additional items would be discussed in closed session under Agenda Item I A, Existing Litigation: David Sanborn v. City of San Bernardino - San Bernardino Superior Court Case No. SCVSS 078410, consolidated with Case No. SCVSS 084862 and Case No. SCVSS 091020. Under Agenda Item 1G, Conference with real property negotiator: Proper Located at the Northeast Corner of Orange Show Road and Arrowhead Avenue Negotiating Parties: The Redevelopment Agency of the City of San Bernardino, property owner, and Essex Orangeshow Commerce Center, LLC, buyers Under Negotiation: Purchase price, terms and conditions Reading of Resolutions & Ordinances Deputy City Clerk Sutherland read into the record the titles of all the resolutions and ordinances on the regular agenda of the Mayor and Common Council, Community Development Commission, and San Bernardino City Housing Authority. Invocation/Pledge of Allegiance The invocation was given by Dr. David Tinoco of St. Paul's United Methodist Church, followed by the pledge of allegiance, led by Council Member/Commissioner Anderson. 2. Appointments There were no commission appointments. 3. Proclamations & Presentations A proclamation designating the Month of February 2004 as "American Heart Month," and February 6, 2004, as "National Wear Red Day for Women" was presented to Pamela Marquardt of the American Heart Association. A resolution formally expressing the City's gratitude to Mayor Aoki and the citizens of Tachikawa, Japan, for raising nearly $20,000 for the victims of the "Old Fire" was presented to Julie Fredericks, co-chair of the Tachikawa Sister Cities Committee. A proclamation designating the month of February as "Rotary Awareness Month" was presented to representatives of the City's five Rotary Clubs. 5 02/02/2004 An Ambassador of Goodwill Certificate was presented to Sgt. Tony Gorrell who was selected as a member of the Rotary District 5330 Group Study Exchange Team that will be going to Taiwan for a month -long visit. He will share ideas about our law enforcement system and learn how Taiwan's policing system operates. A Certificate of Appreciation was presented to Mr. James Morris of ADN Construction for his contributions to the victims of the "Old Fire." The "Old Towne Property of the Month" award was presented to Paul and Lola Kastorff, who reside at 729 N. "G" Street, for the beautification and maintenance of their property. Scott Konopasek, Registrar of Voters, and Steve Trout, Assistant Registrar of Voters, gave a brief demonstration of the new electronic voting system that will be used in the March 2, 2004, Presidential Primary Election. 4. Announcements Announcements were made by Mayor/Chairman Valles, members of the Common Council, and elected officials regarding various civic and community events and activities. 5. Waive Full Reading of Resolutions & Ordinances Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that full reading of the resolutions and ordinances on the regular agenda of the Mayor and Common Council, Community Development Commission, and San Bernardino City Housing Authority, be waived. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 6. Council Minutes Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that the minutes of the following meetings of the Mayor and Common Council/Community Development Commission of the City of San Bernardino be approved as submitted in typewritten form: December 15, 2003; and January 5, 2004. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez„ Anderson, McCammack. Nays: None. Absent: None. 6 02/02/2004 7. Claims & Payroll Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that the claims and payroll and the authorization to issue warrants as listed on the memorandum dated January 27, 2004, from Barbara Pachon, Director of Finance, be approved. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 8. Personnel Actions Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that the personnel actions as submitted by the Chief Examiner dated January 27, 2004 in accordance with Civil Service rules and Personnel policies adopted by the Mayor and Common Council of the City of San Bernardino, be approved and ratified. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez. Anderson, McCammack. Nays: None. Absent: None. 9. RES. 2004-26 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing execution of an agreement with the City of San Bernardino and the San Bernardino Black Culture Foundation for financial assistance from the Civic and Promotion Fund for FY 2003/04. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted; that the Mayor and Common Council approve direct funding in the amount of $4,500; that indirect funding in the amount of $13,149 be transferred from the 2003/04 Civic and Promotion Fund to various city departmental accounts as listed in the staff report dated January 13, 2004, from Fred Wilson, City Administrator; and that a waiver of fees and use of city personnel and equipment be authorized to assist in the 2004 Black History Parade scheduled for February 7, 2004. The motion carried and Resolution No. 2004-26 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 7 02/02/2004 10. RES. 2004-27 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of a Professional Services Agreement between Mundell, Odlum & Haws and the City of San Bernardino to represent the City in the case of Kimberlyn Hearns v. City of San Bernardino, et al. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-27 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 11. RES. 2004-28 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of a Professional Services Agreement between Arias, Lockwood & Gray and the City of San Bernardino to represent the City in the case of Betty Fruichantie v. City of San Bernardino, a public entity, and Does 1 through 100, inclusive. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-28 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 12. RES. 2004-29 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of a Professional Services Agreement between Arias, Lockwood & Gray and the City of San Bernardino to represent the City in the case of Kenneth Brown v. City of San Bernardino; County of San Bernardino; Doe 1 Police Officer; Doe 2 Police Officer; and Does 1 to 50 inclusive. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-29 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 8 02/02/2004 13. RES. 2004-30 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of a Professional Services Agreement between Arias, Lockwood & Gray and the City of San Bernardino to represent the City in the case of Benjamin Brown v. City of San Bernardino; County of San Bernardino; Doe 1 Police Officer; Doe 2 Police Officer; and Does 3 to 50 inclusive. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-30 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 14. RES. 2004-31 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of a Professional Services Agreement between Arias, Lockwood & Gray and the City of San Bernardino to represent the City and its Police Employees in the case of Russell Barkus v. City of San Bernardino, San Bernardino Police Department, Michael D. Desrochers, Gary Schuelke, Mark Aranda, Janice Bean, Anthony Edward White, County of San Bernardino, San Bernardino County Sheriff's Department, City of Fontana, City of Fontana Police Department, Aaron Scharf, M. Dorsey, James Escayze, Officer Ohler, M. Hall. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-31 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 15. ORD. MC-1164 - Ordinance of the City of San Bernardino amending Section 10.52.030 of the San Bernardino Municipal Code to establish a forty mile per hour speed limit on "E" Street between Hunts Lane and Century Avenue. FINAL READING Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said ordinance be adopted. Ordinance No. MC-1164 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 9 02/02/2004 16. ORD. MC-1165 - Ordinance of the City of San Bernardino amending Section 15.04.080(B)(2) of the San Bernardino Municipal Code relating to fee waivers for certain permits after a natural disaster. FINAL READING Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said ordinance be adopted. Ordinance No. MC-1165 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 17. Approve reimbursement agreement and award contracts relative to underground (dry) utilities and street widening at Tippecanoe Avenue and Harriman Place Extension RES. 2004-32 - A Resolution of the Mayor and Common Council of the City of San Bernardino approving the Underground Utility Installation Reimbursement Agreement by and among the City of San Bernardino, SBT Partners LLC and Hopkins -HUB Phase 2 LLC relative to the private project component of the construction of underground (dry) utilities at Tippecanoe Avenue and Harriman Place Extension. (17A) RES. 2004-33 - Resolution of the Mayor and Common Council of the City of San Bernardino awarding a contract to Irish Construction Corporation for underground (dry) utilities at Tippecanoe Avenue and Harriman Place Extension per Plan No. 10682A. (17B) RES. 2004-34 - Resolution of the Mayor and Common Council of the City of San Bernardino awarding a contract to Elite Bobcat Service, Inc. for Tippecanoe Avenue Widening (Phase I11) and Harriman Place Widening (Phase I11) per Plan No. 10373B. (17C) Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolutions A-C, be adopted; that the Mayor and Common Council authorize the Director of Finance to amend the FY 2003/04 budget to increase the project budget (Account No. 242-362-5504-7377) by $250,000 and revenue for reimbursed street construction (Account No. 242-000- 4945) by the same amount to reflect the Reimbursement Agreement with developers; and that the Director of Finance be authorized to amend the FY 2003/04 budget to transfer $98,000 from Account No. 126-369-5504-7306 (Slurry Seal at Various Locations) to Account No. 126-369-5504-7377 (Harriman Place Realignment - Phase II A & B). 10 02/02/2004 The motion carried and Resolution Nos. 2004-32, 2004-33, and 2004-34 were adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 18. RES. 2004-35 - Resolution of the Mayor and Common Council of the City of San Bernardino awarding a contract to Ross A. Guy & Son, General Engineering Contractors, Inc. for sewer improvements on State Street (SW 04- 14), Roosevelt Avenue (SW 04-15), Lugo Avenue (SW 04-19), Sepulveda Avenue (SW 04-03), Walnut Street (SW 04-27), and additive Muscott Street (SW 04-39), per Plan No. 10815. 19 Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted; and that the Director of Finance be authorized to amend the FY 2003/04 Sewer Capital Improvement Program (CIP) budgets for the projects indicated in the staff report from James Funk, Director of Development Services, dated January 12, 2004. The motion carried and Resolution No. 2004-35 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. RES. 2004-43 - Resolution of the City of San Bernardino awarding a bid and authorizing the issuance of a purchase order to Synchronex for the delivery of twenty-five (25) traffic signal battery backup systems in an amount of $109,770.31. Council Member/Commissioner Suarez stated that he felt there were other intersections he considered high priority locations such as Little Mountain and Kendall, and Palm and Kendall, that should have been included on the list for a Battery Backup System (BBS) James Funk, Development Services Director, stated that he would check to see if those intersections already had battery backup, and if not, he stated that they could be substituted for two intersections that were already on the list. Council Member/Commissioner Suarez made a motion, seconded by Council Member/Commissioner McGinnis, that said resolution be adopted, as amended. (No vote was taken.) Council Member/Commissioner McCammack stated that each Council Member probably has several intersections they feel should receive a battery backup system, and it was her opinion that the specific locations should be decided upon as a group 11 02/02/2004 that included the experts and the various neighborhood associations. She added that they were not being asked to approve any locations at this time. Mayor/Chairman Valles asked staff to provide members of the Council with an inventory of the lights that presently have a battery backup system. She asked Mr. Suarez to remove his amendment, and requested that the Council act on the form motion. Council Member/Commissioner Suarez made a substitute motion, seconded by Council Member/Commissioner McGinnis, that said resolution be adopted. Resolution No. 2004-43 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 20. RES. 2004-36 - Resolution of the City of San Bernardino establishing and setting fair market value and sales price of $22,500.00 and declaring the intention of the City to sell a portion of City property located at the southwest corner of 7`" Street and Harris Street in the City of San Bernardino and setting a public hearing to consider said sale. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-36 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 21. RES. 2004-37 - Resolution of the City of San Bernardino confirming fair market value and minimum sale price for certain City owned real property generally located at the northwest corner of Little League Drive and the I-215 Freeway frontage road in said City and giving notice inviting competitive sealed and oral bids for the sale of said property. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-37 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 12 02/02/2004 22. Authorization to proceed - proposed vacation of a portion of the alley between Acacia Avenue and G°E" Street, south of 13`h Street; the alley between "F" Street and Acacia Avenue, south of 13' Street; 7th Street, between "F" Street and "G" Street; and a portion of Berkeley Street, between 71h Street and 81h Street - approve Plan Nos. 10910A and 10910B Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that the Director of Development Services and the City Clerk be authorized to proceed with the vacation of a portion of the alley between Acacia Avenue and "E" Street, south of 13' Street; the alley between "F" Street and Acacia Avenue, south of 13' Street; 7' Street, between "F" Street and "G" Street; and a portion of Berkeley Street, between 7' Street and 8' Street; and that Plan Nos. 10910A and 10910B, be approved. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 23. RES. 2004-38 - Resolution of the Mayor and Common Council of San Bernardino authorizing the execution of a contract with and issuance of a purchase order to San Andell Pools for the replastering and associated scope of work at the Mill Center Swimming Pool in the City of San Bernardino. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-38 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 24. Resolution of the Mayor and Common Council of San Bernardino authorizing the execution of a contract with and issuance of a purchase order to Gray/I.C.E. Builders Inc. for the design/build of ADA restrooms at 5 fire stations in the City of San Bernardino. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Longville, that the matter be tabled. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez. Anderson, McCammack. Nays: None. Absent: None. 13 02/02/2004 25. Authorization to submit the City's updated Emergency Operations Plan to the State of California Office of Emergency Services and the San Bernardino County Office of Emergency Services RES. 2004-39 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the Executive Director, Director and Assistant Director of Emergency Services plus the Disaster Management Coordinator to execute applications and documents for the purpose of obtaining financial assistance under the Federal Civil Defense Act of 1950, as amended, and repealing Resolution No. 97-247. (25A) RES. 2004-40 - Resolution of the Mayor and Common Council of the City of San Bernardino approving the City's updated Emergency Operations Plan (EOP) and authorizing submittal of the EOP to the State of California Office of Emergency Services and the San Bernardino County Office of Emergency Services. (25B) Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolutions A and B, be adopted. Resolution Nos. 2004-39 and 2004-40 were adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent None. 26. RES. 2004-41 - Resolution of the City of San Bernardino amending Resolution No. 6413, Section Ten, entitled in part "A Resolution ... establishing a basic compensation plan..."; by updating information codifying prior Council Actions (General Unit). Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2004-41 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 27. RES. 2004-42 - Resolution of the City of San Bernardino amending Resolution No. 6429, entitled in part "A Resolution ... establishing a basic compensation plan for officers and/or employees of the Police and Fire Departments of the City of San Bernardino." Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. 14 02/02/2004 Resolution No. 2004-42 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 28. Receive and file - FY 2002-2003 Audit Report of the Water Department's Water and Sewer Utilities Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner McCammack, that the Mayor and Common Council receive and file the FY 2002-2003 Audit Report of the Water Department's Water and Sewer Utilities. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 29. RES. 2004-44 - Resolution of the City of San Bernardino authorizing the Mayor of the City of San Bernardino or her designee to apply for and administer a grant in the amount of $197,446 from San Bernardino County Department of Aging and Adult Services for the administration of the Senior Nutrition Program. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Anderson, that said resolution be adopted. Resolution No. 2004-44 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 30. Public hearing to establish certain fees for services furnished by the City of San Bernardino (Continued from January 20, 2004) A Resolution of the City of San Bernardino establishing certain fees for services furnished by the City of San Bernardino, and repealing Resolution No. 2003- 211, Resolution No. 90-397, Resolution No. 91-470, and Resolution No. 90-471, and amending Resolution No. 89-471, Resolution No. 90-154, Resolution No. 91- 148, and Resolution No. 97-271. The hearing remained open. Fred Wilson, City Administrator, stated that there were still some issues that needed to be resolved, and requested that the matter be continued. No public comments were received. 15 02/02/2004 Council Member/Commissioner Longville made a motion, seconded by Council Member/Commissioner McCammack, that the matter be continued to the Council/Commission meeting of February 17, 2004. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 31. An Ordinance of the City of San Bernardino amending Section 5.04.015 of the San Bernardino Municipal Code by adding Subsection "E" relating to Business Registration certificate application processing fees. FIRST READING (Continued from January 20, 2004) Council Member/Commissioner Longville made a motion, seconded by Council Member/Commissioner McCammack, that the matter be continued to the Council/Commission meeting of February 17, 2004. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez. Anderson, McCammack. Nays: None. Absent: None. 32. Authorization to proceed - proposed vacation of a portion of Gannett Parkway, formerly known as Campeau Drive, between Hallmark Parkway and Georgia Boulevard - approve Plan No. 10901 (Continued from January 20, 2004) Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Estrada, that the matter be tabled. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez. Anderson, McCammack. Nays: None. Absent: None. 33. An ordinance of the City of San Bernardino amending Municipal Chapter 8.81 to include Section 8.81.045 establishing a requirement that alarm businesses notify the Police Department of each alarm installation and that allows the City of San Bernardino to invoice alarm businesses for installation and monitoring service transfer fees. FIRST READING (Continued from January 20, 2004) Council Member/Commissioner Longville made a motion, seconded by Council Member/Commissioner McCammack, that the matter be continued to the Council/Commission meeting of February 17, 2004. 16 02/02/2004 The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 34. Review and take action regarding the need for continuing in effect the local emergency caused by the Old Waterman Canyon Fire pursuant to Government Code Section 8630 (c)(1) Note: No backup material was distributed. Council Member/Commissioner Suarez made a motion, seconded by Council Member/Commissioner Anderson, that the Mayor and Common Council confirm the need for continuing in effect the local emergency caused by the Old Waterman Canyon Fire. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 35. Presentation by Police Chief Garrett Zimmon on the San Bernardino Police Department Beat Plan Police Chief Zimmon provided an overview of the City's District and Beat Plan. He stated that the plan was activated on January 19 and has worked extremely well. Chief Zimmon stated that it was his goal to evaluate the plan in one year to determine whether it is functioning as it was designed and to make slight corrections as needed. No action was taken. 36. RES. 2004-45 - Resolution of the Mayor and Common Council of the City of San Bernardino supporting the concept of the Electric Avenue Greenbelt and Historic Site Project and reserving approximately 4.68 acres of land on the east side of Electric Avenue between 40`h Street to just north of Northpark Boulevard as public park property. Council Member/Commissioner Estrada abstained on this item due to the fact that she was not present for the majority of the discussion. Christian Tobar, Wildwood Park Neighborhood Cluster Association, stated that he looked forward to working with the City on this project. Vern Barnum, past President of the Arrowhead Farms Neighborhood Association, stated that he felt this was a good project for the City. t7 02/02/2004 Mary Cox, Vice -President of Wildwood Park Neighborhood Association, stated that she wanted to thank Councilman Neil Derry for working with them and the City Attorney for preparing the resolution so they could get on with their work. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner Suarez, that said resolution be adopted. Resolution No. 2004-45 Members/Commissioners McCammack. Nays: Estrada. Absent: None. 37. Item deleted. was adopted by the following vote: Ayes: Council Longville, McGinnis, Derry, Suarez, Anderson, None. Abstentions: Council Member/Commissioner COMMUNITY DEVELOPMENT COMMISSION Staff Present Roll call was taken by City Clerk Clark with the following being present: Mayor/Chairman Valles; Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack; Senior Assistant City Attorney Carlyle, City Clerk Clark, Economic Development Agency Special Counsel Sabo and Executive Director Van Osdel. Absent: None. R38. Joint Public Hearing - Disposition and Development Agreement by and between the Agency and Essex Orangeshow Commerce Center, LLC - property located at the northeast corner of Orange Show Road and Arrowhead Avenue RES. 2004-46 - A Resolution of the Mayor and Common Council of the City of San Bernardino acknowledging a certain report, making findings and determinations and granting other approvals relating to that certain Disposition and Development Agreement by and between the Redevelopment Agency of the City of San Bernardino and the Essex Orangeshow Commerce Center, LLC. (R38A) RES. CDC/20044 - A Resolution of the Community Development Commission of the City of San Bernardino, as the governing body of the Redevelopment Agency of the City of San Bernardino, approving that certain Disposition and Development Agreement by and between the Redevelopment Agency of the City of San Bernardino and the Essex Orangeshow Commerce Center, LLC. (R38B) Mayor/Chairman Valles opened the hearing. 18 02/02/2004 Gary Van Osdel, Economic Development Agency Executive Director, provided an overview of the project. Council Member/Commissioner McCammack questioned whether the principal had to put up any cash for the construction loan. Mr. Van Osdel stated that it was his understanding that the executive partner had to come up with $200,000. Council Member/Commissioner McCammack stated that it looked like they would have to come up with a lot more than $200,000 in cash in order to get the $13,150,000 necessary for the construction loan. She stated that according to the staff report, if they had to borrow $13,150,000_ the City would not be able to get a 90 percent trust deed. Pursuant to Resolution No. 2000-279, City Clerk Clark administered an oath to the following individuals that they would provide true and honest testimony: Beryl Magneson, Essex Group, 3146 Redhill Avenue, Costa Mesa, CA, stated that the total cost of the project is made up of the construction loan and the equity provided by the valuation on the land the City owns. He stated that the total cost of the project is $15,576,799, the cost of the loan is $13,150,000, the total equity required is $2,426,799, the Agency land investment is valued at $2,227,000, and he and his partner planned to add $200,000. Special Counsel Sabo stated that when they execute the agreement and consummate the purchase there will be a deed of trust for the loan on the property. He stated that if the developer wants the Agency to subordinate and when the construction loan is added to the purchase price, the loan to value ratio cannot be greater than 90 percent of the fair market value. Mr. Sabo stated that it there is a gap, the developer would have to come up with the cash or would have to iomehow cover that gap himself. Council Member/Commissioner McCammack stated that she did not understand how interest could be added at 8 percent. Mr. Sabo stated that the construction interest would be funded in the loan. He stated that the Agency's interest would be in addition to that and would be an obligation that would be guaranteed by the guarantors and would be paid when the project is sold. Council Member/Commissioner McCammack questioned whether the City would get 46 percent of what was left. 19 02/02/2004 Mr. Van Osdel stated that the interest payment would accrue as the project moved along, and assuming everything went well and all 14 buildings were sold within a reasonable period of time, the Agency's land would be paid back with the 8 percent interest that had accrued, and they estimated that it would be about $360,000 by that time. He stated that the Agency would have land, interest, preferred return, and participation in 46 percent of the net profits. Mr. Magneson stated that the total cost of the project would not include the return to the Agency at this time. He stated that the total cost of the project is the land at the contributed value of $2,227,000 including construction interest. Mr. Magneson stated that the sale of the project was estimated at approximately $17 million, leaving a total profit of $2,254,000 after payment of all their costs. He stated that with its investment of $2,227,000, the City would get a preferred return on its money, which had been accruing during the course of this project and was shown at $358,000, or an 8 percent return on the value of the land. Mr. Magneson stated that the $200,000 he and his partner were putting in would earn that same return. He stated that of the $1.8 million net profit, the Agency would receive $855,000, or 46 percent; Mr. Magneson and his partner would get $76,000, or 4 percent; and Essex would receive $931,000, or 50 percent. Mr. Magneson stated that the City would get its land money back, or $2.2 million, it would receive an 8 percent annual return during that period of time, and then it would participate with the developer in 46 percent of the remaining profit, or $855,000, which would almost bring them back to the $7 per square foot on a net basis on the land. Council Member/Commissioner McCammack stated that several members of the Council have been skeptical about lending out taxpayers' money. She asked if Mr. Van Osdel could in clear conscience tell her that this would be a good deal for the City the way it had been laid out. Mr. Van Osdel stated that he could in clear conscience say that this was a good deal and felt it was one of the best deals they have put together in terms of disposition of property. He stated that he prides himself on what his staff puts together with the attorneys and he would only bring to this body something that he was proud of. Council Member/Commissioner McGinnis made a motion, seconded by Council Member/Commissioner Estrada, that the hearing be closed; and that said resolutions A and B, be adopted. (No vote was taken and a substitute motion was subsequently made.) City Attorney Penman stated that he didn't quite understand who the third party guarantor was. Mr. Van Osdel stated that in talking to the principal attorney responsible for the document, she had indicated that the guarantor had not yet been identified and only 20 02/02/2004 at that particular point in time when they request subordination and it was time for that document to be executed would they bring forth the name of who that guarantor might be and he indicated that it could be more then one party. Mr. Penman stated that he signed off as to the legality of the document, but he wasn't going to make any representations as to whether or not this was a good deal, and he was bothered by the contradictions he was getting from the staff attorney and the Director. He stated that the property was purchased in the early 90s for $4.9 million and today it was being sold for $2.2 million plus 8 percent interest per annum, and hopefully a percentage of the profits. Mr. Penman stated that there were some questions the Mayor and Council should know the answers to before voting on this and that they were getting conflicting information. He indicated that it made sense that the company, Essex Orangeshow Commerce Center, LLC, would be the principal in this agreement and that Mr. Magneson would be the third party, but Mr. Van Osdel said that that had not yet been determined. Mr. Van Osdel stated that the payment guaranty wouldn't even come into effect until after the request to subordinate the construction loan, and then at that particular point in time it would be of interest to the Agency and the Council as to who that guarantor would be. He stated that it might be Mr. Magneson, he didn't know, but it would be someone who was acceptable to this body; however, Mr. Van Osdel added that they were not taking action on that right now. Mr. Sabo stated that he just assumed that the principals of the company would be the guarantors. He stated that typically the developer sets up a company and then the principals who have the biggest stake in it stand behind it and guarantee it. He stated that it could be Mr. Magneson by himself, it could be several others together with him, or it could be several others not related to him who want to guarantee it. Mr. Sabo stated that the guarantor must prove that he has a combined net worth of not less than $5 million and must possess a good business reputation. Council Member/Commissioner McCammack asked who was guaranteeing the price of the land plus the interest. Mr. Sabo stated that they didn't know who that was yet, but they could certainly add a provision that the guarantors must be approved by the Agency. Council Member/Commissioner McCammack stated that she wanted to know that EDA guaranteed payment of the land and the interest prior to subordination. Mr. Sabo stated that there was going to be a due diligence period that he estimated would be short because of all the time that has already been spent on this. He stated that by the time there was a transfer of title, the performance guaranty would be in place. Mr. Sabo stated that if at a later date they also want the subordination, that's 21 02/02/2004 when the payment guaranty would come into play and it did not have to be the same individuals. He stated that both of those guaranties could come back to the Agency for approval or it could be delegated to someone to approve it on the Council's behalf. Council Member/Commissioner McCammack stated that the Disposition and Development Agreement (DDA) didn't talk about a guaranty after the request for subordination. She stated that the performance guaranty looked like it was secured by a promissory note, but she didn't see a promissory note secured by anything. Mr. Sabo stated that this was also going to be a guaranty, and when they come forward with the guarantors, that's when they would have to decide how this was going to be additionally secured. Council Member/Commissioner McCammack stated that she was very uncomfortable lending taxpayer's money to a developer without a secured deed of trust prior to their request for subordination. She stated that it had not been done this way since she has been on this Council. City Attorney Perlman requested that this matter be continued for two weeks and that the documents be reviewed by City Treasurer Dave Kennedy. Council Memberl Commissioner McCammack made a motion that the matter be continued for two weeks and that the documents be reviewed by City Treasurer Dave Kennedy. (The motion failed for lack of a second.) Mr. Magneson stated he wanted the Council to feel comfortable with the deal, but he stated that they have made every effort to be forthright. He noted that they were the ones who would be on the hook for the loan and the City's land, plus the 8 percent. Council Member/Commissioner McCammack stated that she was just trying to find out where in the document it said that. Mayor/Chairman Valles stated that she understood the concerns that had been brought up by Mr. Penman and Ms. McCammack; however, she felt they owed Mr. Van Osdel and the developers a vote of confidence, and asked that the Council move forward with this project. Council Member/Commissioner Estrada made a substitute motion, seconded by Council Member/Commissioner McCammack, that the hearing be closed; and that said resolutions A and B, be adopted, contingent upon City Treasurer David Kennedy's review and consent. 22 02/02/2004 The motion carried and Council Resolution No. 2004-46 and Community Development Commission Resolution No. CDC/2004-4 were adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. R39. Joint Public Hearing - disposition of Agency real property located at 145 North Sierra Way (Meadowbrook Park Infill Housing Project - IVDA Redevelopment Project Area) RES. 2004-47 - A Resolution of the Mayor and Common Council of the City of San Bernardino approving the disposition of certain real property located at 145 North Sierra Way, City of San Bernardino, by the Redevelopment Agency of the City of San Bernardino ("Agency") pursuant to the terms of that certain Meadowbrook Single Family Residential Grant Development Agreement, dated February 3, 2003 by and between the Agency and ANR Industries, Inc. (Meadowbrook Housing Project). (R39A) RES. CDC/2004-5 - A Resolution of the Community Development Commission of the City of San Bernardino approving the disposition of certain real property located at 145 North Sierra Way, City of San Bernardino, by the Redevelopment Agency of the City of San Bernardino ("Agency") pursuant to the terms of that certain Meadowbrook Single Family Residential Grant Development Agreement, dated February 3, 2003 by and between the Agency and ANR Industries, Inc. (Meadowbrook Housing Project). (R39B) Mayor/Chairman Valles opened the hearing. Maggie Pacheco, Economic Development Agency Director of Housing and Community Development, provided highlights of the staff report. No public comments were received. Council Member/Commissioner Derry made a motion, seconded by Council Member/Commissioner McGinnis, that the hearing be closed; and that said resolutions A and B, be adopted. The motion carried and Council Resolution No. 2004-47 and Community Development Commission Resolution No. CDC/2004-5 were adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 23 02/02/2004 R40. RES. CDC/2004-6 - A Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute the HOME Grant Agreement by and between the Agency and St. Bernardine Plaza Corporation, a Nonprofit Corporation - proposed Senior Housing Rehabilitation. Council Member/Commissioner Anderson made a motion, seconded by Council Member/Commissioner Derry, that said resolution be adopted. Resolution No. CDC/2004-6 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Longville, McGinnis, Derry, Suarez, Anderson, McCammack. Nays: None. Absent: None. 41. Public Comments Michael Holt, 5954 N. Walnut Avenue, San Bernardino, CA, spoke regarding the rumor that was circulating about the sale of the City's Refuse Division. Connie Holt, 5954 N. Walnut Avenue, San Bernardino, CA, voiced her concerns regarding the possibility of the City of San Bernardino's Refuse Division being sold to a private company and questioned whether such a sale would be in the best interests of the City. Jay Lindberg, 6340 Orange Knoll, San Bernardino, CA, spoke regarding weapons of mass destruction and the possibility of an accident in the Cajon Pass. Joan Gillette, 3655 N. "E" Street, San Bernardino, CA, stated that she wanted to find out what steps had been taken relative to her request to erect a guardrail. Martin Valdez, 5650 Carleton Street, San Bernardino, CA, stated that he was a candidate for Fifth District Supervisor. He spoke about the lack of quality jobs, the need to raise the level of education in the community, and proposed budget cuts in the health care system. 24 02/02/2004 42. Adjournment At 8:04 p.m., the meeting adjourned. The next joint regular meeting of the Mayor and Common Council/Community Development Commission is scheduled for 1:30 p.m., Tuesday, February 17, 2004, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. No. of Items: 42 No. of Hours: 4 RACHEL G. CLARK City Clerk By .✓o.i� (_a_�_._� i Linda Sutherland Deputy City Clerk 25 02/02/2004