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HomeMy WebLinkAbout03-30-1998 Minutes MINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING MARCH 30, 1998 ECONOMIC DEVELOPMENT AGENCY BOARD ROOM This is the time and place set for a joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino from the joint regular meeting held at 8:05 a.m., Monday, March 16, 1998, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The City Clerk has caused to be posted the order of the adjournment of said meeting held on Monday, March 16, 1998, and has on file in the Office of the City Clerk an affidavit of said posting together with a copy of said order which was posted at 8:00 a.m., Tuesday, March 17, 1998, on the door of the place at which said meeting was held. The joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission was called to order by Mayor Valles at 8:57 a.m., Monday, March 30, 1998, in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Mayor Valles; Council Members Estrada, Lien, Schnetz, Devlin, Anderson, Miller; City Attorney Penman, City Clerk Clark, City Administrator Wilson. Absent: Council Member Arias. Also present: Economic Development Agency Administrator Steinhaus and Special Counsel Sabo. COMMUNITY DEVELOPMENT COMMISSION/SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY /SAN BERNARDINO PARK ACQUISITION JOINT POWERS FINANCING AUTHORITY/SAN BERNARDINO ASSOCIATED COMMUNITIES FINANCING AUTHORITY - JOINT ADJOURNED REGULAR MEETING At 8:57 a.m., Chairman Valles called the joint regular meeting of the Community Development Commission/San Bernardino Joint Powers Financing Authority/San Bernardino Park Acquisition Joint Powers Financing Authority/San Bernardino Associated Communities Financing Authority and Mayor and Common Council to order. 1 3/30/1998 At this time the Community Development Development Commission Mayor and Common Council, Commission, took action items. acting as the on Community NOTE: Commission Development Minutes of items are Agency. actions taken on Community Development distributed separately by the Economic COUNCIL MEMBER ARIAS ARRIVED At 9:02 a.m., Council Member Arias arrived at the meeting. ECONOMIC EXCUSED At 9:55 Steinhaus left DEVELOPMENT AGENCY ADMINISTRATOR STEINHAUS a. m., Economic Development Agency the meeting. Administrator STUDY SESSION - STATUS OF SAN BERNARDINO INTERNATIONAL AIRPORT AUTHORITY (SBIAA) LEASE & LEASEBACK FINANCING - POSSIBLE CITY JOINT OWNERSHIP OF AIRPORT - APPROVE IN CONCEPT (Continued from March 16, 1998) (1) Timothy Sabo, General Counsel to the San Bernardino International Airport Authority (SBIAA), submitted a document titled, Current Development at the San Bernardino Airport and International Trade Center, dated March 1998, and a packet of backup material which included a history of what information had been submitted to the SBIAA relative to the title transfer from the Air Force and the lease/leaseback finar.cing. Mr. Sabo explained that the Council was only being asked for conceptual approval of whether the City should proceed with acquiring title to the airport and the lease/leaseback financing program. He noted that the County Board of Supervisors had already given their approval. City Attorney Penman stated that he had spent the weekend reviewing the extensive legal documents provided by Mr. Sabo, and that one thing was very evident--if the City does not participate, the County would become the owner of the airport and the City could end up being totally out of the airport with the County exercising complete control. Attorney Sabo answered questions regarding the financing status and current debt structure of the SBIAA; financing options available to the SBIAA; the structure of lease/leaseback financing, and various issues relative to the County and the City holding title to the airport. He pointed out that the goal of the lease/leaseback financing would be to repay members in whole, repay a portion of the Inland Valley Development Agency loan, and provide working capital for operations and other capital improvements. 2 3/30/1998 Council Member Devlin stated that he felt it was critical that the City be on the title to the airport; that the day would come when the airport would make millions and millions and the City would lose out if it doesn't move ahead at this time. Council Member Devlin made a mot ion, seconded by Council Member Schnetz, that the Mayor and Common Council approve in concept that the City of San Bernardino, in conjunction with the County of San Bernardino and each city member of the San Bernardino International Airport Authority, acqulre title to the airport properties and be jointly and severally liable pursuant to the lease and leaseback financing documents. Council Member Lien stated that it was her understanding that Mr. Sabo would be making a two-hour presentation on all aspects of this project, and she was not prepared to vote on the matter without an in-depth review. Discussion ensued wherein Attorney Sabo eXplained that the smaller cities were not being asked to be on the title; however, they were still very much members of the Airport Authority. He answered questions regarding changes to the Joint Powers Agreement and the fees being charged by Merrill Lynch and O'Melveny & Myers. Mr. Sabo assured City Attorney Penman and the Council that all final documents would come back to the Council for approval and that the City Attorney's Office would be involved in drafting and reviewing said documents over the next couple of months. Council Member Anderson stated that she wanted to stress that she did not support a fifty-fifty division of title, but wanted to see a one-third/two-thirds division, with the City retaining two- thirds ownership. Jeff Wright, P.O. Box 2341, San Bernardino, CA, speaking as a member of the former Restoration Advisory Board, voiced opposition, stating that he was very concerned with this "financial scheme." He ascertained that there is plutonium in the sewers, expressed concern regarding threatened and endangered species, and asked the Council to consider these issues before casting their votes. The motion Members Estrada, None. Abstain: carried by the following vote: Arias, Schnetz, Devlin, Anderson, Council Member Lien. Ayes: Council Miller. Nays: 3 3/30/1998 ADJOURNMENT (2) At 11:08 a.m., the meeting was adjourned. The next scheduled meeting of the Mayor and Common Council and Community Development Commission will be held at 8:00 a.m., Monday, April 6, 1998, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RACHEL G. CLARK City Clerk By ~H~ Deputy City Clerk No. of Items: 2 No. of Hours: 2 4 3/30/1998