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HomeMy WebLinkAbout08-07-1991 Minutes MINUTES MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING AUGUST 7, 1991 COUNCIL CHAMBERS This is the time and place set for a joint adjourned regular meeting of the Mayor and Common Council and the Community Development Commission of the City of San Bernardino at the regular meeting held at 8:30 a.m., Monday, August 5, 1991, 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 Adjournment of said meeting held on August 5, 1991, 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 9:00 a.m., Tuesday, August 6, 1991, on the door of the place at which said meeting was held. The joint adjourned regular meeting was called to order by Mayor Holcomb at 11:37 a.m., Wednesday, August 7, 1991, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Hernandez, Maudsley, Minor, Pope-Ludlam; City Attorney Penman, City Clerk Krasney, City Administrator Clark. Absent: Council Member Miller. ORD. MC-803 - AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO AUTHORIZING THE APPOINTMENT OF HEARING OFFICER(S) AND PROVIDING FOR SAID HEARING OFFICER(S) TO HEAR ANY ITEM ON THE AGENDA OF THE BOARD OF BUILDING COMMISSIONERS IN THE ABSENCE OF A QUORUM AND ANY CONDITIONAL USE PERMIT REVOCATION ITEM ON THE PLANNING COMMISSION AGENDA IN THE ABSENCE OF A QUORUM AND PROVIDING FOR SAID HEARING OFFICER(S) TO HEAR ANY ITEM REFERRED TO SAID HEARING OFFICER (S ) BY THE BOARD OF BUILDING COMMISSIONERS OR THE PLANNING COMMISSION AND DECLARING THE URGENCY THEREOF. Uraency (1) City Clerk Krasney read the title of the ordinance. Council Member Reilly made a motion, seconded by Council Member Maudsley, and unanimously carried, that further reading of the ordinance be waived. 1 8/7/91 Council Member Reilly made a motion, seconded by Council Member Maudsley, that said urgency ordinance be adopted. Discussion ensued regarding procedures for selecting the hearing officer and whether or not a hearing officer can be a City employee. City Attorney Penman explained that according to State law, administrative hearings can be held by the Mayor and Council, City Administrator, any designated employee, or department head. An administrative hearing officer can be anyone who is over the person who has made the decision. Mr. Penman explained that the Planning Commission selected Fred Wilson as the hearing officer to hear conditional use permit revocations on the Golden Eagle and Budget Motels, subject to the approval of the Mayor and Common Council. The Mayor and Council expressed concern that the officer be selected by the Commission since members Commission collectively show community representation. hearing of the City Attorney Penman answered questions and stated that the Commissions have complete power to appoint a hearing officer to hear one issue or an entire hearing, and that the decision of the hearing officer can be overruled by the Mayor and Common Council. City Administrator Clark explained that the Planning .and Building Commissions are having difficulties in maintaining a quorum to hear C.U.P. revocation cases. She pointed out that the Commissioners are not paid for their time and that many have full time jobs and cannot volunteer enough time to sit through lengthy hearings. COUNCIL MEMBER MILLER ARRIVED At 11:49 a.m., Council Member Miller arrived at the Council meeting and took her place at the council table. A discussion ensued regarding the process for handling appeals when an appellant cannot afford the appeal fee. City Administrator Clark stated that under the Board of Building Commissioners' appeals procedure, the Council can refund the appeal fee, if the Council upholds the appeal. Mayor Holcomb indicated that the hearing officer would also hear weed abatement cases. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Maudsley, Minor, Pope-Ludlam, Nays: Council Member Hernandez. Absent: None. Council Miller. 2 8/7/91 CLOSED SESSION - SALE OF CITY HALL, COURT & "E" STREET PARKING LOT AND POLICE STATION New Business Mayor Holcomb stated that the subject of selling the City Hall building for refinancing purposes was originally discussed in closed session, but felt that it would be appropriate to discuss this matter in open session. Mayor Holcomb explained that the City currently has an option to purchase City Hall from the Civic Center Authority. Under the proposed refinancing plan, the City would be leasing the building from the Economic Development Agency. City Attorney Penman advised the Council that action should be taken since the need to discuss this matter in open session arose subsequent to the posting of the Council agenda. Council Member Minor made a motion, Member Estrada, and unanimously carried, discussing the proposed City Hall financing to the posting of the Council agenda. seconded by Council that the matter of plan arose subsequent Tim Sabo, Economic Development Agency Counsel, explained the financial aspects of the proposal to refinance City Hall. He stated that the proposed refinancing plan would allow the City to pay on the interest for ten years, and at the end of those ten years, the City would make a final payment of the remaining principal payable to the Civic Center Authority. The Civic Center Authority would then establish an escrow account for these bonds, which would then be delivered free and clear of title to the City. The City may then simultaneously transfer these bonds to the Economic Development Agency. Mr. Sabo answered questions regarding the remaining number of years the City has to pay the Civic Center Authority before the City can purchase the City Hall building. He stated that the City has five to six years of payments for an approximate amount of $565,000 per year. Mr. Sabo answered questions regarding the benefits of refinancing City Hall. He stated that the number one benefit is that the City would receive between 10 to 12 million dollars; the second benefit is that the City would be able to reduce its total debt service from $565,000 to approximately $300,000 a year. Mayor Holcomb pointed out another advantage in that the City would be paying a much lower interest rate than what is currently being paid, if the City borrowed the money from a financial institution. He proposed that the cost savings be used to fund the City's various deficit accounts such as Worker's Compensation, Liability Insurance, and Unemployment Insurance. 3 8/7/91 A discussion ensued regarding language being incorporated into the necessary documents to restrict use of the bond proceeds money to replenish the negative balances in the City's General Fund. Mr. Sabo pointed out that prior to the issuance of the City Hall bonds, it would be necessary for the City to reappropriate those restricted funds from the General Fund's budget to fund all or a portion of the deficit fund balances in order to remain within the guidelines of the Federal Tax Laws and Regulations. City Administrator Clark answered questions regarding the types of accounts within the City's budget that could be paid off utilizing CDBG funds. She indicated that prior to the completion of this transaction, the City would have to move money designated for salaries and other City operations from the General Fund into a specific sub-account that holds those deficit balances. This money would then be used to replenish the General Fund. Tim Sabo answered questions regarding when the City can realize the bond proceeds money, and whether or not the transaction would affect the City's bond rating. He explained that documentation would be prepared within thirty to forty-five days. Final approval of those documents would be forthcoming in approximately one to two months. Mr. Sabo indicated that the City's credit rating would not be affected by this transaction. The Council requested that the City Administrator prepare a list of recommended expenditures to be replenished with the anticipated bond proceeds prior to the Council finalizing the documentation. Mr. Sabo answered questions regarding potential savings if the City Hall building was sold to a private enterprise. City Administrator Clark pointed out that the City has no reserves and in the event the City receives a judgment, the City would have to borrow the money from a financial institution to pay the judgment. Under the proposed City Hall refinancing plan, the City could borrow the money at a much lower interest rate from the Economic Development Agency. Mr. Sabo answered questions regarding the Civic Center Authority. He stated that the Civic Center Authority is comprised of the City, the Economic Development Agency, and the County. He also answered questions regarding whether or not the County would have entitlement to the proceeds received from the sale of the certificates of participation to the bondholders. 4 8/7/91 Discussion ensued regarding the Economic Development Agency's funding source for the purchase of the Court and "E" Street parking lot and existing police station. City Administrator Clark answered questions and stated that the City has a 15 million dollar deficit excluding any potential judgments. Council Member Miller made a motion, seconded by Council Member Pope-Ludlam, that the proposed City Hall re-financing plan be approved in principle; and that the Council be authorized to proceed. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Maudsley, Minor, Pope-Ludlam, Nays: Council Member Hernandez. Absent: None. Council Miller. AUTHORIZATION TO ADVERTISE FOR BIDS - WIDENING OF "E" STREET BRIDGE New Business Council Member Minor made a motion, seconded by Council Member Pope-Ludlam, and unanimously carried, that the matter of authorizing the City Engineer to advertise for bids on the "E" Street bridge project, arose subsequent to the posting of the Council agenda. Mayor Holcomb stated that SANBAG has approved four million dollars for the widening of the "E" Street Bridge. He stated that plans have been approved and the project is ready to be advertised for bids. Mayor Holcomb recommended that the Council authorize the City Engineer to proceed and advertise for bids on the "E" Str.eet Bridge project. Council Member Miller made a motion, seconded by Council Member Estrada, and unanimously carried, that the City Engineer be authorized to advertise for bids on the widening of the "E" Street bridge. CLOSED SESSION The Mayor and Common Commission did not recess to (2) Council and Community Development closed session during this meeting. 5 8/7/91 ADJOURNMENT (3) At 12:30 p.m., Mayor Holcomb adjourned the joint adjourned regular meeting of the Mayor and Common Council and Commun'ity Development Commission to 8:30 a.m., Monday, August 19, 1991, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. Rachel Krasney City Clerk By D es, Deputy City Clerk No. of Items: 5 No. of Hours: 1 hr. 7 min. 6 8/7/91