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HomeMy WebLinkAbout12-07-1989 Minutes . . . City of San Bernardino, California December 7, 1989 This is the time and place set for an Adjourned Regular Meeting of the Mayor and Common Council/Community Development Commission of the City of San Bernardino at the Regular Meeting held at 8:40 a.m., Monday, December 4, 1989, 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 Monday, December 4, 1989, 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 11:45 a.m., Tuesday, December 5, 1989, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The Adjourned Regular Meeting of the Mayor and Common Council/Community Development Commission of the City of San Bernardino was called to order by Mayor Holcomb at 5:34 p.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken by Deputy City Clerk Reese with the following being present: Mayor Holcomb; Council Members Reilly, Minor, Pope-Ludlam, Miller; Deputy City Clerk Reese. Absent: Council Members Estrada, Flores, Maudsley; City Attorney Penman, City Administrator Julian. PUBLIC COMMENTS There were no public comments. (1) MAYOR'S COMMENTS - USE OF NORTON AIR FORCE BASE FACILITY Mayor Holcomb referred to the recent newspaper articles regarding a proposal for use of a portion of Norton Air Force Base by Lockheed, which had not been accepted. He stated that he felt that the stories and editorials were misleading. He announced that he has called a news conference for Monday, December 11, 1989, at 9:30 a.m., in the Management Information Center (MIC), Sixth Floor of City Hall, to clarify the issue. The news conference will not be televised live, but will be aired on Channel 3 that evening at 5:00 p.m., 7:00 p.m., and 9:00 p.m. Mayor Holcomb explained that the Lockheed proposal came before the Norton Economic Expansion Committee without any prior briefing, and many details need to be worked out. He expressed confidence that the Committee will consider this and other proposals for providing the best use for the facilities at Norton Air Force Base. 1 12/7/89 . SENIOR ASSISTANT CITY ATTORNEY BARLOW ARRIVED At 5:35 p.m., Senior Assistant City Attorney Barlow arrived at the Council meeting. COUNCIL MEMBERS FLORES AND MAUDSLEY ARRIVED At 5:36 p.m., Council Members Flores and Maudsley arrived at the Council meeting and took their places at the council table. ENCROACHMENT FEE FOR UTILITY LANE CLOSURE In a memorandum dated December 6, 1989, Manuel P. Moreno, Jr., Director of Public Services, presented a proposed resolution and urgency ordinance relative to the imposition of a fee for encroachments on city streets by utility companies performing repair or construction work. (4) RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ESTABLISHING AN ENCROACHMENT FEE FOR UTILITY LANE CLOSURE. ( 4 ) AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO ADDING SECTION 12.04.055 TO THE SAN BERNARDINO MUNICIPAL CODE RELATING TO AN ENCROACHMENT FEE FOR UTILITY LANE CLOSURE. (4) . Mayor Holcomb expressed concern about traffic congestion when utility companies make repairs on underground utilities and block off travel lanes on major thoroughfares during heavy traffic hours. Lorraine Velarde, Executive Assistant to the Mayor, stated that Fred Wilson, Assistant to the City Administrator, and she had talked with a representative of each of the utilities companies and that a meeting has been scheduled for City staff and utility company representatives on December 13, 1989, at 10:00 a.m., to discuss these concerns. Jim King, District Manager for Southern California Gas Company, 624 West Fourth Street, San Bernardino; Sue Noreen, Area Manager for Southern California Edison, Pepper and Foothill, San Bernardino; and Bob Traister, District Manager for GTE, California, San Bernardino' District, 1796 North "I" Street, San Bernardino, were present. They requested that this item be continued to provide an opportunity to discuss the problems with City staff. CITY ADMINISTRATOR JULIAN ARRIVED At 5:43 p.m., City Administrator Julian arrived at the Council meeting. . Sue kept its Noreen explained that California Edison Company has crews out of the downtown area during the holiday 2 12/7/89 . seasons because of the concern regarding stated that Edison has spent much time and utilities to improve the City's appearance. maintain the utilities, it is necessary to heavy traffic. She money to underground However, in order to work on the streets. COUNCIL MEMBER ESTRADA ARRIVED At 5:45 p.m., Council Member Estrada arrived at the Council meeting and took her place at the council table. Mr. Traister also stated that GTE does not do repairs on major thoroughfares during the holiday seasons. He explained that GTE would cooperate with the City and try to work evenings and week-ends, but in emergency situations this is not always possible. Mr. King stated the Southern California Gas Company also recognizes the holiday season and does not do any non-essential work. He explained the Gas Company works with the City to determine the best hours to do repairs. Council Member Minor made a motion, seconded by Council Member Estrada and unanimously carried, that the proposed encroachment fee resolution and urgency ordinance be continued to December 18, 1989, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. . CAPITAL IMPROVEMENTS PROJECTS - UTILIZING RDA AND CITY BOND PROCEEDS AND OTHER FUNDS - RECOMMENDATIONS, PRIORITIZATION AND IMPLEMENTATION In a memorandum dated December 7, 1989, City Administrator Julian presented five lists marked Items 1 through 5 with suggested projects to be considered for prioritization and implementation of capital improvements utilizing RDA and City bond proceeds. (2) Item 1 provided a list of residential street and city facilities paving - $497,500 (RDA share: $196,500) Item 2 provided a list of proposed improvements to major arterials - $270,000 (RDA share: $595,000) Item 3 provided suggestions relative to improvements to Council Chambers and City Hall lobby. Item 4 provided a list of additional projects prepared by the Public Works/Engineering Department for consideration within RDA project areas. Item 5 was a memorandum from the City Clerk regarding priorities for the expenditure of bond proceeds. . 3 12/7/89 . Barbara Lindseth, Accounting Manager, RDA, explained concerns that were discussed at the RDA Committee meeting held shortly before the beginning of this Council meeting. The discussion centered around ways the agency funds the administrative costs relative to project areas. Mayor Holcomb stated that precise dollar amounts are not needed at this time, but rather, a list of proposed capital expenditures for various projects to be considered. He requested that the Council identify projects that could be included for use of future tax increment bond monies. He stressed the fact that changes can be made in the list of proposed projects. It was pointed out that there are several issues regarding financing within the Central City Project area that are important and should be addressed. . Mr. Jim Iverson, Executive Vice President with Miller & Schroeder, San Diego, California, explained that the numbers indicate there will be approximately $34,700,000 available to do redevelopment projects and an additional amount of approximately $5,000,000 - a total of approximately $40,000,000 to do both housing and redevelopment projects. The $5,000,000 represents the 20% set aside amount for housing. This excess tax increment would be flowing from the following RDA project areas: State College, Southeast Industrial Park, Northwest, Tri-City, South Valle and Uptown. Mayor Holcomb stressed the importance of leverage of the funds. He explained that there may be other monies available from other sources, such as state, federal, county, and possibly private matching funds, so that the best use of the bond monies would be made. Roger Hardgrave, Director of Public Works/City Engineer, read a list of proposed projects in the following Redevelopment Project areas: Southeast Industrial Park, State College, Northwest, Tri-City, South Valle and Uptown. Mr. Hardgrave answered questions regarding various projects on the lists. A suggestion was made that a signalized intersection be created on Hospitality Lane between Waterman and "E" Street to alleviate the heavy traffic congestion and to facilitate access onto Hospitality Lane for property users on the north side of Hospitality Lane. Mr. Hardgrave suggested that Hospi tali ty Lane and Commercenter East would be an appropriate location. . 4 12/7/89 . . . The following improvements were also suggested to be added to the list of proposed projects: 1. Palm Avenue, north of Kendall - widen to four lanes. Reimbursement for this project may be provided by developers. 2. Pine Street, north from Kendall - widen and realign. Mr. Hardgrave answered questions regarding funding for other proposed projects. He explained that some of the projects have been funded by FAU funds. It was pointed out that most of the money proposed for the Northwest Project area is to be spent outside the area. Concern was expressed regarding the deficit condition of the project area. It was suggested that the proposed funds be spent on infrastructure and recreational programs in that project area, as Delmann Heights Center and Johnson Hall both need a great deal of repair work. A discussion ensued regarding the Northwest Project area. the financial condition of Tim Sabo, of Hawkins, Delafield and Woods Law Firm, 6320 Canoga Avenue, Suite 400, Woodland Hills, California 91367, explained that basically, tax increment funds have to be used within a redevelopment project area for public improvements. If the funds are being used outside the area, findings have to be made that those improvements will benefit that particular project area. He gave the following example: a major thoroughfare, such as Pepper-Linden, would allow traffic to go in and out of the project area more easily. Mayor Holcomb stated that RDA funds can be used for public infrastructure improvements or for elimination of blight. He questioned whether recreational facilities fall within either of those categories. Mr. Sabo stated that other cities increment monies for public facilities. priorities and determine the types of generate new increments. have worked with tax It is necessary to set improvements that will Mr. Sabo answered questions, stating that decisions regarding projects made tonight are not binding. He explained that it is necessary to establish a list of needed projects in order to have the bond issue. There has to be a certainty that there are potential projects on which to spend those monies. He stated that projects can be added, deleted, or substituted. 5 12/7/89 . Mr. Sabo answered questions regarding the use of tax increment money for law enforcement uses. He stated it could be used for capi tal expenditures, such as a substation, police station, jailor communications equipment, but recommended that it not be used for salaries or maintenance. Council Member Estrada made a motion, seconded by Council Member Flores and unanimously carried, to approve the list of proposed projects as submitted by Roger Hardgrave, Director of Public Works City Engineer for consideration, with the following additions: signalized intersection on Hospitality Lane between Waterman and "E" Street (possibly Hospitality Lane and Commercenter East); widen Palm Avenue north of Kendall to four lanes; widen and realign Pine north of Kendall; improvements to infrastructure and park facilities in the Northwest Project area, such as Delmann Heights Center and Johnson Hall, if they qualify as public improvements. (See page 6 for further action) LOAN WITH FIRST INTERSTATE BANK - EARLY PAYOFF - CONTINUED FROM DECEMBER 4, 1989 This is the time and place continued to for regarding authorization of the early payoff of the First Interstate Bank. discussion loan with (3) . In a memorandum dated November 27, 1989, Robert J. Temple, Acting Executive Director, Redevelopment Agency, explained the background of the loan of $1,300,000 from the First Interstate Bank of California for the acquisition of the Northwest Project area shopping center site. It was recommended that this loan be retired before the maturity date of February 20, 1994. Mr. Temple, Acting Director, Redevelopment Agency, answered questions regarding the financial benefits the Agency would receive by early payoff on the loan to the First Interstate Bank. He explained that the payoff would affect the cash position of the Agency, but would save.the Agency money. Council Member Miller made a motion, seconded by Council Member pope-Ludlam and unanimously carried, to authorize the Agency staff to payoff, before the maturity date of February 20, 1994, the loan with First Interstate Bank for the shopping center site in the Northwest Project area. CAPITAL IMPROVEMENT PROJECTS (CIP) - PRIORITIZATION AND IMPLEMENTATION, UTILIZING RDA AND CITY BOND PROCEEDS AND OTHER FUNDS - RECONSIDERATION (See page 6) Council Member Estrada made a motion, seconded by Council Member pope-Ludlam and unanimously carried, that the item regarding capital improvement projects prioritization and implementation utilizing RDA and City bond proceeds and other funds be reconsidered. (2) . 6 12/7/89 . City Administrator Julian answered questions regarding his memorandum dated December 7, 1989, with recommendations for prioritization and implementation of capital improvement projects. He explained that the five lists attached to his memorandum list proposed projects submitted by City staff for consideration. No monies would be spent until each project came before the Council for approval. Council Member Estrada made a motion, seconded by Council Member Minor and unanimously carried, that approval be given to include the following lists for consideration of the use of tax increment funds: Item #1 City share of residential street and city facilities paving - $497,500 (RDA share: $196,500). Item #2 - City share of improvement of major arterials- $270,000 (RDA share: $595,000). Item #4 - List of additional projects for consideration within RDA project areas. Council Member Estrada made a motion, seconded by Council Member Minor, that approval be given to include the following list for consideration for use of tax increment funds: . Item #3 - Improvements to Council Chambers and City Hall lobby. The motion carried by the following vote: Ayes: Members Estrada, Reilly, Flores, Minor, Pope-Ludlam, Noes: Council Member Maudsley. Absent: None. Council Miller. City Administrator Julian explained that form motion #1 on his memorandum dated December 7, 1989, contained a reference to money that has already been budgeted for 1989, and that bond refinancing would be substituted for that amount. This would free up approximately one-quarter of a million dollars in the general fund. Council Member Estrada made a motion, seconded by council Member Minor and unanimously carried, that the sum of $257,600 be allocated from bond proceeds for street improvement projects included in the 1989-90 budget. MUTUAL BENEFIT RESOLUTION FOR VERDEMONT INFRASTRUCTURE Documentation relative to this item was not available at the time of this meeting. (5) . Mayor Holcomb requested that this item Community Development Commission/Redevelopment the meeting of December 18, 1989. be placed on the Agency agenda for 7 12/7/89 . . . JPFA-7 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY, APPROVING A LOAN AGREEMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO. (Thrifty Building) (R-1A) JPFA-8 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY, AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO. (Thrifty Building) (R-1C) A discussion ensued regarding the financial condition of the Central City Project area. It was agreed that the acquisition of the Thrifty Building would be an asset to the project area. Mayor Holcomb explained that the loans authorized by said resolutions are being made to provide funds to close escrow on the Thrifty Building. Once escrow closes on December 8, 1989, then decisions will be made regarding further financing. Mr. answered area. Temple, Acting Director of the Redevelopment Agency, questions regarding finances of the Central City Project Jim Iverson, Executive Vice President, Miller & Schroeder, answered questions regarding the financial condition of the State College Project area. He explained that it is in very sound financial condition. Sr. Assistant City Attorney Barlow explained that the portion of the Thrifty Building not occupied by the City can be rented or leased to private enterprise, thereby creating tax revenue for the city. Council Member Miller made a motion, seconded by Council Member Estrada that said resolutions be adopted. Resolution following vote: Mauds1ey, Minor, None. Nos. JPFA-7 and JPFA-8 were Ayes: Council Members Estrada, Pope-Ludlam, Miller. Noes: adopted Reilly, None. by the Flores, Absent: JPFA-9 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY, AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO. (First Interstate loan) (R-2A) JPFA-10 - RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY, APPROVING A LOAN AGREEMENT WITH THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO. (First Iriterstate loan) (R-2C) 8 12/7/89 ,-------..-- . . . Council Member Estrada made a motion, seconded by Council Member Pope-Ludlam, that said resolutions be adopted. Resolution Nos. JPFA-9 and JPFA-IO were following vote: Ayes: Council Members Estrada, Maudsley, Minor, pope-Ludlam, Miller. Noes: None. adopted Reilly, None. by the Flores, Absent: CLOSED SESSION At 7:07 p.m., Council Member Estrada made a motion, seconded by Council Member Miller and unanimously carried, that the meeting recess to Closed Session pursuant to the following: to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b)(1), as there is significant exposure to litigation; (6d) to confer with which has been party pursuant follows: the attorney regarding pending litigation initiated formally to which the City is a to Government Code Section 54956.9(a) as (6f) C.F.B. Investments. Ltd. vs. Citv of San Bernardino- United States District Court - Case No. SA CV89-862 JSC (RSRx) CLOSED SESSION At 7:07 p.m., the closed session was called to order in the conference room of 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, Flores, Maudsley, Minor, pope-Ludlam, Miller; City Attorney Penman, Deputy City Clerk Reese. Absent: City Administrator Julian. Also present: Sr. Assistant City Attorney Barlow. EXECUTIVE ASSISTANT LORRAINE VELARDE ARRIVED At 7:08 p.m., Executive Assistant to the Mayor Lorraine Velarde arrived at the closed session. CITY ADMINISTRATOR JULIAN ARRIVED At 7:09 p.m., City Administrator Julian arrived at the closed session. DEPUTY CITY CLERK REESE EXCUSED At 7: 10 p. m. , Deputy Ci ty Clerk Reese left the closed session. 9 12/7/89 . . . ADJOURN CLOSED SESSION At 7:23 p.m., the closed session adjourned to the Adjourned Regular meeting of the Mayor and Common Council/Community Development Commission/Redevelo{lment Agency in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RECONVENE MEETING At 7:23 p.m., the Adjourned Regular meeting of the Mayor and Common Council/Community Development Agency/Redevelopment Agency reconvened in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken by Deputy City Clerk Reese with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; Sr. Assistant City Attorney Barlow, Deputy City Clerk Reese, City Administrator Julian. Absent: None. ADJOURN MEETING At 7:24 p.m., Council Member Estrada made a motion, seconded by Council Member Flores and unanimously carried, that the meeting be adjourned to 8:30 a.m., Monday, December 18, 1989, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. (7) It~ Deputy ~k No. of items: 9 No. of hours: 2 10 12/7/89