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HomeMy WebLinkAbout04-29-1985 Minutes San Bernardino, California . April 29, 19B5 This is the time and place heretofore set for an Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino at the Regular Meeting held on Monday, April 15, 1985, at 9:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street,San Bernar- dino, California. The City Clerk has caused to be posted the Order of Adjournment of said meeting held on Monday, April 15, 1985, at 9:00 a.m., and has on file in the office of the City Clerk an affidavit of said posting on Tuesday, April 16,1985, at 11:45 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino was called to order by Mayor Holcomb at 11:00 a.m., on Monday, April 29, 1985, in the Redevelopment Agency Board Room, Third Floor, City Hall, 300 North "D" Street, San Bernardino, California. . INVOCATION The Invocation was given by the Rev. James Elder, Living Water Church of God in Christ. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Council Member Marks. ROLL CALL Roll Call was taken by the City Clerk with the fol- lowing being present: Mayor Holcomb; Council Members Castaneda, Reilly, Hernandez, Marks, Quiel, Strickler; City Attorney Prince, City Clerk Clark, City Administrator Matzer. Absent: Council Member Frazier. READING AND WAIVING OF RESOLUTIONS The City Clerk read the title of all the resolutions on the Community Development Commission/Redevelopment Agency Agenda. . Council Member Strickler made a motion, seconded by Council Member Reilly and unanimously carried, that fur- ther reading of all the resolutions on the Community De- velopment Commission/Redevelopment Agency Agenda be waived. RES. 85-154 - RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNAR- DINO, CALIFORNIA, SETTING A PUBLIC HEARING IN CONNECTION WITH THE ISSUANCE OF INDUS- TRIAL DEVELOPMENT REVENUE BONDS AND TAKING CERTAIN OTHER ACTIONS (KCKC BUILDING PROJECT) . (R-3 ) Council Member Marks made a motion, seconded by Council Member Strickler, that said resolution be adopted. Resolution No. B5-l54 was adopted by the following vote: Ayes: Council Members Castaneda, Reilly, Hernandez, Marks, Quiel, Strickler. Noes: None. Absent: Council Member Frazier. . . PUBLIC HEARING - ALL AMERICAN CITY PUBLIC GOLF, INC. - ISSUANCE OF BONDS In a memorandum dated April 20, 19B5, Glenda Saul, Executive Director of the Redevelopment Agency, presented various documents pertaining to the refunding of the All Amer ican ci ty Public Golf, I nc. Lease Revenue Bonds. (R-4) In previous action on April 15, 19B5, the Council authorized staff and consultants to proceed with the re- financing of the Golf Course Lease Revenue Bonds. Mayor Holcomb opened the hearing. The Mayor and Council discussed the elements of the agreement and the restrictions that would be placed upon the Agency. Tim Sabo, Bond Counsel, answered questions. . Council Member Marks made a motion, seconded by Council Member Quiel and unanimously carried, that the following resolution be adopted, subject to the ci ty At- torney and Bond Counsel putting in appropriate language to allow the Agency maximum flexibility to operate and dis- pose of the facility. RES. 85-155 - RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNAR- DINO, CALIFORNIA, MAKING CERTAIN FINDINGS IN CONNECTION WITH A CERTAIN COMMITMENT BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR THE USE OF TAX INCREMENT REVENUES TO PAY FOR THE INSTALLATION AND CONSTRUCTION OF CERTAIN PUBLICLY OWNED FACILITIES PURSUANT TO HEALTH AND SAFETY CODE SECTION 33679, AND IN CONNECTION WITH CERTAIN LEASE OF AGENCY PROPERTY PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433. Resolution No. B5-l55 was adopted by the vote: Ayes: Council Members Castaneda, Hernandez, Marks, Quiel, Strickler. Noes: None. Council Member Frazier. following Reilly, Absent: . COUNCIL MEMBER FRAZIER ARRIVED Council Member Frazier arrived at the Council Meeting. RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING POLICY GUIDELINES ON BOND SALE PROCEDURES. (R-7) Council Member Quiel made a motion, seconded by Council Member Hernandez and unanimously carried, that the resolution relative to policy guidelines on bond sale procedures be continued to Monday, May 13, 1985, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. . RES. B5-156 - RESOLUTION ADOPTING A HOUSING FINANCE REVENUE BOND PROGRAM IN COOPERATION WITH THE COUNTY OF SAN BERNARDINO AND AU- THORIZING THE MAYOR TO EXECUTE FOR AND ON BEHALF OF THE CITY A COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO. (R-9) Council Member Marks made a motion, seconded by Council Member Castaneda, that said resolution be adopted. 2 4/29/B5 . Resolution No. B5-l56 was adopted by the following vote: Ayes: Council Members Castaneda, Reilly, Hernandez, Marks, Quiel, Frazier, Strickler. Noes: None. Absent: None. ENCANTO PARK IMPROVEMENTS - CHANGE ORDER NO. TWO - BOB BRITTON, INC. In a memorandum dated April 26, 19B5, Roger Hard- grave, Director of Public Works/City Engineer, explained the need for Change Order No. Two to the contract with Bob Britton, Inc., for improvements at Encanto Park. He rec- ommended approval of the Change Order and stated that the total estimated project cost contained an amount of $3,400 for contingencies, which can be used to finance the cost of this change order. (R-13) . Council Member Reilly made a motion, seconded by Council Member Strickler and unanimously carried, to ap- prove Change Order No. Two to the contract with Bob Brit- ton, Inc., for the construction of irrigation, landscaping and lighting improvements at Encanto Park, in accordance with Plan No. 6376; and to direct the Contractor to fur- nish and install an additional sub panel and breakers for ballfield lights, at an increase in contract price of $500, from $59,600 to $60,100. RESOLUTION OF THE CITY OF SAN BERNARDINO DESIGNATING THE AREA CONTAINED IN THE EN- TERPRISE ZONE BOUNDARIES TO BE A DEPRESSED AREA AND IN NEED OF DESIGNATION AS AN EN- TERPRISE ZONE IN ORDER TO ATTRACT PRIVATE BUSINESS FOR FUTURE DEVELOPMENT, GRANTING CERTAIN INCENTIVES IN THE ENTERPRISE ZONE, AND AUTHORIZING APPLICATION FOR DESIGNATION TO BE FILED. (R-14) Council Member Marks made a motion, seconded by Council Member Hernandez and unanimously carried, that the resolution relative to the Enterprise Zone be referred to the Ways and Means Committee. . RAMADA HOTEL - HERMAN ENGLISH - REQUEST FOR FUNDS - $4,000,000 In a letter dated April 26, 19B5, R. E. GOblirsch, Deputy Director of the Redevelopment Agency, presented a proposal from Mr. Herman English on the Ramada Hotel. Mr. English is requesting the agency to acquire funding for completion of the project based upon a guarantee from Mr. Robert L. Chamness of Investment Administrators, Colton, California. Mr. Goblirsch's letter was accompanied by a letter dated April 25, 19B5, from Mr. Chamness. (R-ll) Mr. English's proposal is based upon the following: 1. Mr. Robert Chamness has agreed and has delivered to First Colonial Trust Company collateral which has been accepted by First Colonial Trust to enable the trust company to guarantee the proposed $4,000,000, repayment within three years. 2. Mr. Chamness has agreed to assign the purchase document from Colonial Trust Company to Herman English in order that Mr. English can assign said documents to the Agency. . 3 4/29/B5 . 3. Mr. English proposes that an escrow be entered into wherein the Agency lends to English $4,000,000 to complete the Ramada Hotel. Under the terms of this escrow, if English does not repay the loan upon the terms agreed upon, Colonial Trust will guarantee the repayment and assume the collateral deposited by Robert Chamness. 4. It was discussed that if negotiations proceeded, a separate document needed to be drafted wherein all of the parties concerned would agree to the method in which these funds would be released. 5. It was further discussed whether First Colonial and Robert Chamness would increase the guarantee and collateral from $4,000,000 to $5,000,000; the additional $1,000,000 being that requested by Mr. English for completion of the Convention Center. . Mr. Goblirsch's letter also stated that if the Agency is to consider lending these funds, the funds must be borrowed from a third party. As Mr. English does not propose paying interest on this loan, the cost to the Agency could be substantial. Mayor Holcomb stated that the Agency cannot borrow $5,000,000 without a financial statement from Mr. English and an assurance that the hotel will be successful. Mr. Robert Chamness answered questions and stated that he had no experience in hotel management, but that was not the issue. If necessary, he would hire someone to operate the hotel in the event of a default. Mr. Herman English spoke regarding the benefits that would corne to the City by opening the hotel. Mayor Holcomb explained that the Agency too would have to borrow the money and would have to show an ability to repay the borrowed funds before a bank would make a loan. . Mr. English accused the Board of placing roadblocks before him. Mr. Robert Chamness stated that he has told Deputy Director Goblirsch that he will supply the financial data necessary for a loan from the Agency. Council Member Frazier made a motion, seconded by Council Member Hernandez, that the Redevelopment Agency Board cooperate in every way to find a loan for Mr. Eng- lish in the amount of $5,000,000, as long as it is risk- free to the Agency. Mr. Herman English stated that he has provided a guarantor that will keep the City in a risk-free position. The Mayor and Council discussed the motion made by Council Member Frazier. . MAYOR HOLCOMB LEFT At 11:50 a.m., Mayor Holcomb left the Council Meet- ing, and Council Member Castaneda, Vice Chairman of the Community Development Commission, assumed the duties of Chairman. 4 4/29/B5 Mr. Herman English clarified his request for funds. . Council Member Marks made a substitute motion, sec- onded by Council Member Reilly, that the request by Herman English be continued; that the Redevelopment Agency Com- mittee be authorized to continue negotiations with Mr. English to present a proposal back to the Redevelopment Agency Board which, in addition to other considerations, is consistent with the following parameters: 1. That the unconditional irrevocable letter of credit or facsimile thereof would provide for a risk free situation to the Agency. 2. That there be no additional substantial costs to the Agency for providing the conduit. 3. That to a reasonable degree the parties ascertain there will be an expectation of success for opening and continuation of the hotel. . Mr. Ray Marshall from Ontario and Mr. Brad Pie, 1601 Wellington, Los Angeles, objected to the proceedings and opposed the substitute motion as being out of order. City Attorney Prince stated the Council acted within its rules. Council Member Marks amended his substitute motion, and Council Member Reilly amended the second, by adding that the Redevelopment Agency Committee will meet with Mr. English as soon as possible and that their recommendation be continued to Thursday, May 2, 19B5, at 4:00 p.m., in the Redevelopment Agency Board Room. (The location of the meeting was later changed to the Council Chambers. See page 9). Ayes: Marks, Absent: The amended substitute motion carried as follows: Council Members Castaneda, Reilly, Hernandez, Quiel, Strickler. Noes: Council Member Frazier. None. . Mr. James Elder from the Living Water Church of God in Christ also objected to the proceedings and spoke on behalf of Mr. English's contributions to the community. No further action was taken. COUNCIL MEMBERS QUIEL, FRAZIER, STRICKLER LEFT At 12:25 p.m., Council Members Quiel, Frazier, Strickler left the Council Meeting. VALLEY TRUCK FARM AREA - SOUTH WATERMAN - REPORT AND REJECTION OF BIDS- SEWER MAINS In a memorandum dated April 25, 19B5, Roger Hard- grave, Director of Public Works/City Engineer, stated that four bids were received for the project of installing sewer mains in the Valley Truck Farm Area on South Water- man Avenue and explained the concerns relative to this project. He recommended that all bids be rejected and that authorization be given to revise the plans and re- advertise. (R-12) . Roger Hardgrave, Director of Public works/City Engi- neer, answered questions on the cost estimates for the pr oj ect. 5 4/29/B5 . COUNCIL MEMBERS QUIEL, FRAZIER, STRICKLER RETURNED At 12:30 p.m., Council Members Quiel, Frazier, Strickler returned to the Council Meeting. Mrs. Willie Brue, 1063 S. Lincoln; asked how long the redesign would take. Roger Hardgrave, Director of Public Works/City Engi~ neer, stated that the redesign would take three weeks. Council Member Quiel made a motion, seconded by Council Member Frazier and unanimously carried, that the bids received on April 4, 19B5, for construction of sewer mains in the Valley Truck Farm Area, in accordance with Plan No. 660B, be rejected, and the Director of Public Works/City Engineer be authorized to revise the plans and specifications; to incorporate sewer mains on minimum grades, and a lift station; and to re~advertise for bids. .. ECONOMIC DEVELOPMENT COUNCIL ~ RECOMMENDATION FOR DEFUNDING Council Member Hernandez presented his recommendation for the defunding and abolition of the Economic Develop~ ment Council and presented a letter dated April 26, 19B5 from R~ E~ Goblirsch; Deputy Director of the Redevelopment Agency. The Council discussed at length loans made to various businesses by the Economic Development Council. COUNCIL MEMBER CASTANEDA At 1:10 p.m., Council Council Meeting and Council duties of Mayor Pro Tempore. LEFT Member Member Castaneda left the Strickler assumed the The Council also discussed a request from Wesley Jefferson, a member of the Economic Development Council and an employee of Operation Second Chance, that an Econ~ omic Development Council loan to Operation Second Chance be changed to a grant. . Deputy Director Goblirsch explained why the Economic Development Council is a non~profit non~governmental agency. Council Member Marks made a motion, seconded by Council Member Strickler and unanimously carried, to di- rect the Legislative Review Committee to provide a report on the issue of a Conflict of Interest Code and other appropriate codes previously referenced for review, at the next regularly scheduled Council Meeting. Counci 1 Member Marks made a motion, seconded by Council Member Strickler and unanimously carried, that the Redevelopment Agency staff be instructed to provide a report on the responsibility of the Economic Development Council with respect to OEDP and any other appropriate program, and, if in fact, the Economic Development Coun~ cil is exercising responsibility on such programs, that they prepare for Council a rescinding action incorporating those responsibilities within the Redevelopment Agency. . Council Member Marks made a motion, seconded by Council Member Strickler and unanimously carried, that as a condition of the contractural relationship between the Economic Development Council and the Redevelopment Agency, 6 4/29/B5 the Economic Development Council provide each elected official of the City with a copy of the minutes and agenda for each Economic Development Council meeting. . COUNCIL MEMBER HERNANDEZ LEFT Council Member Hernandez left the Council Meeting. RES. B5~157 - RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE STAFF OF THE PARKS, RECREATION AND COMMUN~ ITY SERVICES DEPARTMENT OF THE CITY OF SAN BERNARDINO TO SUBMIT AN APPLICATION TO THE UNITED STATES DEPARTMENT OF AGRICULTURE, FOOD AND NUTRITION SERVICE, FOR A SUMMER LUNCH PROGRAM FOR CHILDREN, AND AUTHORIZING THE DIRECTOR OF PARKS, RECREATION AND COM~ MUNITY SERVICES TO EXECUTE SAID APPLICATION ON BEHALF OF THE CITY OF SAN BERNARDINO. The City Clerk read the title of the resolution. . Council Member Frazier made a motion, seconded by Council Member Strickler and unanimously carried, that further reading of the resolution be waived and that said resolution be adopted. Resolution No. B5~157 was adopted by the following vote: Ayes: Council Members Reilly, Marks, Quiel, Frazier, Strickler~ Noes: None. Absent: Council Mem~ bers Castaneda, Hernandez. RES. B5~15B ~ RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ACCEPTANCE OF A COVENANT RUNNING WITH THE LAND FROM CLIFF R. CAREL & ASSOCIATES, A LIMITED PARTNER~ SHIP, WAIVING CLIFF R~ CAREL & ASSOCIATES' RIGHT TO MAKE APPLICATION TO THE CITY FOR ANY DENSITY BONUS FOR THE REAL PROPERTY DESCRIBED IN CHANGE OF ZONE NO. B4~29. The City Clerk read the title of the resolution. . Council Member Quiel made a motion, seconded by Council Member Reilly and unanimously carried, that fur~ ther reading of the resolution be waived and said resolu- tion be adopted. Resolution No. B5~15B was adopted by the following vote: Ayes: Council Members Reilly, Marks, Quiel, Frazier, Strickler. Noes: None. Absent: Council Mem- bers Castaneda, Hernandez. RES. B5-159 - RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ACCEPTANCE OF A COVENANT RUNNING WITH THE LAND FROM CLIFF R. CAREL & ASSOCIATES, A LIMITED PARTNER- SHIP, WAIVING CLIFF R. CAREL & ASSOCIATES' RIGHT TO MAKE APPLICATION TO THE CITY FOR ANY DENSITY BONUS FOR THE REAL PROPERTY DESCRIBED IN CHANGE OF ZONE NO. B4-3l. The City Clerk read the title of the resolution. . Council Member Quiel made a motion, seconded by Council Member Reilly and unanimously carried, that fur- ther reading of the resolution be waived and that said resolution be adopted. 7 4/29/B5 . Resolution No. B5~159 was adopted by the following vote: Ayes: Council Members Reilly, Marks, Quiel; Frazier; Strickler. Noes: None. Absent: Council Mem':: bers Castaneda, Hernandez. City Attorney Prince explained the purpose and provi~ sions of the two resolutions and two ordinances being proposed at this time. . ORD. MC'::453 .:: ORDINANCE OF THE CITY OF SAN BERNARDINO REZONING A CERTAIN PARCEL OF LAND, AMENDING THE LAND USE ZONING MAP, WHICH IS INCORPORATED BY REFERENCE IN SEC~ TION 19~06~020 OF THE SAN BERNARDINO MUNI':: CIPAL CODE (PETITION NO. B4~29; AN IRREGU':: LARLY'::SHAPED PARCEL OF LAND CONSISTING OF APPROXIMATELY 2.36 ACRES HAVING A FRONTAGE OF APPROXIMATELY 329 FEET ON THE SOUTH SIDE OF COURT STREET AND A FRONTAGE OF 42B FEET ON THE NORTH SIDE OF THIRD STREET AND BEING LOCATED APPROXIMATELY 241 FEET EAST OF THE CENTERLINE OF SIERRA WAY), ADOPTING THE NEGATIVE DECLARATION FOR ENVIRONMENTAL REVIEW, AND DECLARING THE URGENCY THEREOF. The City Clerk read the title of the ordinance~ Council Member Quiel made a motion, seconded by Council Member Reilly and unanimously carried, that final reading of the ordinance be waived and that said ordinance be adopted. Ordinance MC'::453 was adopted by the following vote: Ayes: Council Members Reilly, Marks, Quiel; Frazier, Strickler. Noes: None. Absent: Council Members Castaneda, Hernandez~ . ORD. MC~454 ~ ORDINANCE OF THE CITY OF SAN BERNARDINO REZONING A CERTAIN PARCEL OF LAND, AMENDING THE LAND USE ZONING MAP, WHICH IS INCORPORATED BY REFERENCE IN SEC~ TION 19.06.020 OF THE SAN BERNARDINO MUNI~ CIPAL CODE (PETITION NO. B4~3l, LOCATED ON THE EAST SIDE OF ALLEN STREET, APPROXIMATE- LY 171 FEET SOUTH OF THE CENTERLINE OF FOURTH STREET), ADOPTING THE NEGATIVE DEC- LARATION FOR ENVIRONMENTAL REVIEW, AND DECLARING THE URGENCY THEREOF. The City Clerk read the title of the ordinance. counci 1 Member Quiel made a motion, seconded by Council Member Reilly and unanimously carried, that final reading of the ordinance be waived and that said ordinance be adopted. Ordinance MC-454 was adopted by the following vote: Ayes: Council Members Reilly, Marks, Quiel, Frazier, Str ickIer. Noes: None. Absent: Counci 1 Members Castaneda, Hernandez. tive of a ASSESSMENT BOND FINANCING ~ WORKSHOP This is the time and place set for a discussion rela':: to various assessment bond acts and the establishment City policy for their use. . Participating in the discussion with the Council members were members of the firm of Miller & Schroeder Municipals, Inc.: Jim Iverson, Sr. Vice President and Norman K. McPhail, Vice President; Attorney F. MacKenzie B 4/29/B5 Brown, and Timothy Sabo, Bond Counsel. Also participating in the discussion were Craig Graves; City Treasurer; and Director of Public Works/City Engineer Roger Hardgrave. . CITY CLERK LEFT City Clerk Clark left the Council Meeting. DEPUTY CITY CLERK REESE ARRIVED Deputy City Clerk Reese arrived at the Council Meeting. Norman K. McPhail, Vice president, Miller & Schroeder Municipals, Inc., suggested several aspects of assessment bond financing to be considered by the Council in their discussion on setting a City policy. He also introduced a brochure entitled "City of San Bernardino ~ Special As~ sessment Bond policy Workshop" dated April 29, 19B5, by Miller & Schroeder Municipals; Inc. Mr. McPhail answered questions relative to the estab~ lishment of criteria to justify a bond issue. He sug- gested that this can be done by an assessment review com~ mittee or administratively. . Mr. Mcphail discussed criteria concerning the via- bility of a project on which bonds should be issued. A major criteria is the amount of the lien levied against the property vs. its improved value. A standard rule is normally at least a three to one ratio, in which the as~ sessments levied are not in excess of 1/3 of the value of the lot after improvements. Attorney MacKenzie Brown answered questions pertain~ ing to financing development infrastructure or "backbone" major improvements in comparison to internal streets and utility lines of a subdivision. The 1915 Act is normally found to be a more appropriate financing tool on the lar- ger infrastructure. A lengthy discussion ensued with the bond consultants offering explanations and comparisons of the 1915 Act Special Assessment Bonds, 1911 Act Special Assessment Bonds and the Mello~Roos Community Facilities Act of 19B2. . Council Member Marks made a motion, seconded by Council Member Reilly, that the Council establish a spe~ cia 1 ad hoc committee on assessment bonds policy and ap- point Council Members Marks, Quiel, Strickler as members. The motion carried by Council Members Reilly, Marks, Council Member Quiel, Absent: Hernandez. the following vote: Ayes: Frazier, Strickler. Noes: Council Members Castaneda, ADJOURNMENT At 3:40 p.m., the meeting was adjourned to Thursday, May 2, 19B5, at 4:00 p.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ~/nl.?/~#/ / City Clerk ~~~ C~k . 9 4/29/B5