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Home My WebLink AboutBook 38 09/07/93 - 06/06/94 r '-- [ [ MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING September 7, 1993 11:00 a.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was called to order by Mayor Tom Minor at approximately 5:24 p.m., on Tuesday, September 7, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Valerie Pope-Ludlam; and Norine Miller. Absent: None. Vacant: Fifth Ward Commission Member. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Ann Harris, Executive Director, Main Street; Dennis Barlow, Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator; Rachel Clark, City Clerk; Melanie Vale, Deputy City Clerk; La Vonda M- Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Tim Sabo, Special Counsel, Sabo and Green; Maria Hunt, The Sun Newspaper. The Commission Members requested that items numbered "7", "9", "12", "13", "14" and "15" be removed from the Consent Calendar. Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items numbered "1" through "15" be adopted, except for items numbered "7", "9", "12", "13", "14" and "15". REGULAR MEETING KJH:lmp:cmin9r1 - 1- COMMISSION MEETING September 7, 1993 ~ The motion carried by the following vote: Ayes: Commission ij Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. ~ Noes: None. Abstain: None. Absent: None. 1. COMMUNJ:TY DEVELOPMENT COMMJ:SSJ:ON MJ:NUTES (Community Development Commission) Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that the minutes of the Community Development Commission of the City of San Bernardino for the meetings of August 9, 1993 and August 16, 1993, be approved as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 2 . REDEVELOPMENT COMMJ:TTEE MJ:NUTES (Community Development Commission) Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that the minutes of the Redevelopment Committee of ] ~~~eI~~a ~~d S~il~~~nardino for the meeting of August 19, 1993, be . ..... The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Public Works Department 3. AUTHORIZATJ:ON TO EXECUTE LJ:CENSE AGREEMENT - J:NSTALLATJ:ON OF SUPPORTS FOR CANOPy - JERSEYS SPORTS GRILL AND BJ:LLJ:ABD CLUB (Mayor and Common Council) Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-341 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF A LICENSE AND AGREEMENT WITH JERSEYS SPORTS GRILL AND BILLIARD CLUB, AT 440 WEST COURT STREET, RELATING TO THE INSTALLATION OF SUPPORT POLES WITHIN THE PUBLIC SIDEWALK. REGULAR MEETING KJH:lmp:cmin9r1 - 2- COMMISSION MEETING September 7, 1993 -, j I t -J [ [ [ The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 4. AWARD OF CON'l'RACT - RE-ROOFING YWCA BUILDING, PER PLAN NO. 8941 - ROY O. HUFFMAN ROOF COMPANY (Mayor and Common Counci..l) Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-342 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO ROY O. HUFFMAN ROOF COMPANY FOR RE-ROOFING YWCA BUILDING AT 567 NORTH SIERRA WAY. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 5. APPROVAL OF PLANS AND AUTHORIZATION TO ADVERTISE FOR BIDS - INSTALLATION OF DIAGONAL PARKING ON "E" STREET FROM 2ND STREET TO 6TH STREET PER PLAN NO 8985 (Community Development Commission) Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that the plans for installation of temporary improvements for diagonal parking on "E" Street, from Second Street to Sixth Street, in accordance with Plan No. 8985, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETING KJH: Imp: cmin9r1 - 3- COMMISSION MEETING September 7, 1993 --. 6. APPROVAL OF PLANS AND AUTHORIZATION TO ADVERTISE FOR BIDS - INSTALLATION OF LANDSCAPING IN WATERMAN AVENUE MEDIAN, PER PLAN NO. 8966 ;A 1/ ~ (Community Development Commission) Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that the plans for installation of landscaping and irrigation system, in the curbed median in Waterman Avenue, from Santa Ana River to Mill Street, in accordance with Plan No. 8966, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Members Negrete; Curlin; Hernandez; Oberhelman; Noes: None. Abstain: None. Absent: None. Development Department Ayes: Commission Pope-Ludlam; Miller. 8. THE MILLENNIUM SENIOR HOUSING PROJECT (Communi ty Development Commi.ssion) Commission Member Negrete made a motion, seconded by Commission Member Hernandez, to approve a Satisfaction and Termination Agreement between the Redevelopment Agency, Cliff Carel and Associates and Escrow Funding Service, reimburse Cliff Carel and Associates the original $10,000 dollar "good faith" development deposit plus interest in the amount of $6,600 for a total of $16,600.00 and authorize the Chairman and Executive Director to execute any documents necessary to effectuate said transaction. " .~ ~ ....J The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 10. FY 1993/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENTS BETWEEN THE CITY AND SUBRECIPIENTS (Mayor and Common Council) Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 343 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND MARY'S MERCY CENTER, INC. ,.., REGULAR MEETING KJH:lmp:cmin9r1 - 4- COMMISSION MEETING September 7, 1993 '1 I -..Ii [ [ [ Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 344 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND BETHLEHEM HOUSE PROJECTS, INC. Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 345 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND BETHLEHEM HOUSE PROJECTS, INC. Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 346 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND MARY'S MERCY CENTER, INC. Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 347 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND LUTHERAN SOCIAL SERVICES OF SOUTHERN CALIFORNIA. Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 348 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDlNO AND MENTAL HEALTH ASSOCIATION OF SAN BERNARDINO COUNTY. REGULAR MEETING KJH:lmp:cmin9r1 - 5- COMMISSION MEETING September 7, 1993 --- Councilman Negrete made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: J RESOLUTION NUMBER 349 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SAN BERNARDINO SEXUAL ASSAULT SERVICES, INC. The motions carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 11. EMBLEM DEVELOPMENT (Community Devel.opment Commission) Commission Member Negrete made a motion, seconded by Commission Member Hernandez, to approve the revised Emblem Development financial assistance proposal and Owner Participation Agreement (OPA) to effectuate construction of fifty-nine (59) high-quality single-family detached homes and authorize the Chairman and Executive Director to execute any document necessary to effectuate said transaction. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. .... TI .....J 7. CONTRACT CHANGE ORDER NO. 6 - IMPROVEMENTS TO DELMANN HEIGHTS COMMUNITY CENTER, PER PLAN NO. 8890 -- KIRKLEY DEVELOPMENT, INC. (Mayor and Common Council.) Councilman Hernandez questioned whether or not the funds proposed for this project would be enough to complete it. Kenneth J. Henderson, Executive Director, Development Department, explained that the requested funds were not enough to complete the entire project, but added that the Department of Park, Recreation and Community Services Department could reapply for additional Community Development Block Grant (CDBG) funds. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, that Change Order No. 6 to the contract with Kirkley Development, Inc., for the improvements to Delmann Heights Community Center, in accordance with Plan No. 8890, be approved, to authorize the Contractor to remodel the existing rest rooms, at an increase in the contract price of $56,960.00, from $566,391.75 to $623,351.75. REGULAR MEETING KJH:lmp:cmin9r1 - 6- COMMISSION MEETING September 7, 1993 .., I -.J r '-- [ [ The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 9. SAN BERNARDINO CIVIC LIGHT OPERA (Community Deve10pment Commission) Commission Member Hernandez questioned the intent of this item. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the proposed loan to the Civic Light Opera would be to supplement its income in order to complete improvements to its building and be ready for the upcoming season. He stated that if the loan could not be repaid, the Agency would purchase the building for a negotiated amount. Commission Member Hernandez commented on his support in assisting the CLO but does not want the Agency to pay more for the building than its worth. Commission Member Oberhelman indicated that the CLO's financial difficulties were due to mis-management. He stated that there was no assurance to the Agency indicating that this would change. He also stated that when reading the agreement, it appeared that any existing debt by the CLO upon foreclosure would become the debt of the City, and he was not in agreement with that. Commission Member Oberhelman questioned the CLO's subsidiary business not being pledged as collateral for this loan. Mr. Steinhaus stated that the CLO representatives were present to address all concerns regarding this item. Commission Member Curlin expressed concern regarding the possibility of the CLO continuing to operate in the red. He also requested additional information regarding the subsidiary business. Commission Member Miller requested additional explanations regarding the agreement for this loan. Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the Agency having control of the CLO. Ron Skipper, 323 West Court Street, San Bernardino, informed the Commission that the CLO was purchased for $150,000, and that over $800,000 had been made in capital improvements. Gene Wood, Board Member, CLO, stated that the Board of Directors for the CLO had just completed a major reorganization. He indicated that during the reorganization process, the new board uncovered many financial problems. REGULAR MEETING KJH:lmp:cmin9r1 - 7- COMMISSION MEETING September 7, 1993 ~ Mr. Wood indicated that the reason the CLO submitted a request i for a short-term loan was because the CLO was faced with a shortfall ~ in operating expenses for the new season. He briefly discussed the additional assets of the CLO which included a new building on 14th Street, an old building on 21st and "E" Street and also Scenic Productions. He stated that the funds received from Scenic Productions were used to offset the theater costs. Mr. Wood explained that the majority of the CLO's financial difficulty was due to the production of Annie Warbuck which was very unsuccessful. He said the new directors had been meeting on a regular basis and they felt the CLO could be very profitable. He emphasized without the assistance of the Agency, the CLO would be unable to continue operating. Mr. Skipper stated that the Agency would not be taking over the CLO's debts by purchasing the building. He said the building would be the security for the loan, and no debt was owed on the building. He also stated that any creditor who wished to foreclose on its loan to the CLO would be a in secondary position to the Agency. Mr. Wood stated that Scenic Productions was a very profitable business which leased sets to other production companies. He indicated that discussions had ensued with the Board of Directors regarding pre-leasing the sets to bring in immediate cash flow. Mayor Minor stated that he had spoken with members of the Board of Directors and recommended to them that they seek a loan through the Agency. He indicated that he would not like to see the CLO close. ., l~ 'l , .....J Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete that Amendment Number One (1) to the Disposition and Joint Development Agreement between the Redevelopment Agency and the San Bernardino Civic Light Opera Association and approve a loan in the amount of $200,000. Further, that the Chairman and Executive Director be authorized to execute all documents in connection with said transaction. Commission Member Oberhelman felt that other properties of the CLO should be pledged as collateral. He recommended all properties of the CLO be pledged. Mr. Skipper stated that discussions with the Board of Directors did not include pledging Scenic Productions as collateral for the loan. Mayor Minor recommended the loan be approved contingent upon the board approving the pledge of Scenic Productions as collateral. Mr. Skipper indicated that Scenic Productions could still operate if pledged as collateral. --- j REGULAR MEETING KJH: Imp: cmin9r1 - 8- COMMISSION MEETING September 7, 1993 ! --J r '-- [ [ f.--~--~---.- - Commission Member Curlin questioned the amount of loss to the CLO due to Annie Warbucks. Mr. Skipper stated the loss amount was approximately $500,000. Discussion ensued regarding the costs to operate the CLO, its expenditures and its assets. Commission Member Pope-Ludlam made an amended motion, seconded by Commission Member Negrete that Amendment Number One (1) to the Disposition and Joint Development Agreement between the Redevelopment Agency and the San Bernardino Civic Light Opera (CLO) Association and approve a loan in the amount of $200,000. Further, that the Chairman and Executive Director be authorized to execute all documents in connection with said transaction contingent upon the CLO Association Board approving the assets of Scenic Production and all property owned by the CLO. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 12. CENTRAL POLICE STATION - FINANCING (Mayor and Common Council) Mayor Minor informed the Council that he requested the Council and Bond Counsel review this item as a way to finance the police facility. Councilman Hernandez noted that if the state continues to take funds from the City, the City would not be able to repay this bond. He felt the City Administrator should become involved with this item. Mayor Minor informed staff that he had spoke with the City Administrator and she opposed the use of the general fund for this project. Councilwoman Pope-Ludlam felt the building of the new police facility was the responsibility of the City not the Agency. She expressed concern regarding the City's constant use of Agency funds to offset its budget. She also was concerned about the Agency's funds being used for a project that would not produce tax increments. Kenneth J. Henderson, Executive Director, Development Department, explained that the first two (2) annual payments on the bond would be made from capitalized interest. He noted that more detailed information regarding the bond process and the repayment of the bond could be made by Miller and Schroeder at the time of the transaction. REGULAR MEETING KJH:lmp:cmin9r1 - 9- COMMISSION MEETING September 7, 1993 ~ Councilman Curlin asked the Agency Administrator his recommendation for this project. Mr. Steinhaus responded by stating that his responsibility was ensure the best interest for the Agency be met. He would recommend that the City fund its own police facility, and that the Council review the bonding issue. Mr. Steinhaus explained that if a different Council should be in place when the bond payments become due and they choose not to pay the bonds, the City would default. He stated that at that time, the City could choose to either refinance the bonds or pay them off. ~ ~1 ..... to Discussion ensued regarding alternative financing for the police facility. Mr. Steinhaus confirmed that if the City elected to approve this item, the option at a later date to sell the facility to the Agency would still exist. Councilman Oberhelman made a motion, seconded by Councilman Negrete, to direct staff to prepare the necessary documents and resolutions to provide for Certificates of Participation financing for the new Central Police Facility in an amount sufficient to provide for construction and furnishing of the facility. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman Hernandez. Abstain: None. Absent: None. J 13. IMPLEMENTATION OF PROPOSED ADJUSTED WORK WEEK SCHEDULE (Comrnuni..ty Devel.opment Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the employees of the Agency were not represented by a union which made it easier for them to discuss the adoption of a 9/80 work week. He stated that a committee had met and Stafford W. Parker, Deputy Director, Development Department, was present to give a brief presentation on this request. Commission Member Oberhelman stated that the Commission had previously heard the presentation at the budget hearing. Mr. Steinhaus emphasized that the trial period for the 9/80 plan would allow the City to observe how the plan would operate and whether or not the entire City in the event the entire City should convert to this plan. -., REGULAR MEETING KJH: Imp: cmin9rl - 10- COMMISSION MEETING September 7, 1993 ......J [ [ [ Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to adopt a synchronized 9/80 adjusted work week schedule for the Economic Development Agency and authorize the Agency to publicize the new work schedule, administer the process and begin implementation September 27, 1993 for a period of three months through December 31, 1993 with subsequent findings and conclusions of the conversion trial period reported to the Commission for further consideration. The motion carried by the following vote: Ayes: Members Negrete; Curlin; Hernandez; Oberhelman. Noes: Members Pope-Ludlam; Miller. Abstain: None. Absent: Commission Commission None. 14. ECONOMIC DEVELOPMENT AGENCY MANAGEMENT AUDIT (Community Development Commissi.on) Mayor Minor spoke briefly on the bids received for the Management Audit. Commission Member Curlin made a motion, seconded by Commission Member Pope-Ludlam to authorize the Agency Administrator to enter into a contract for services with Harvey M. Rose Accountancy Corporation to perform a management audit of the Economic Development Agency for an amount not to exceed $59,125. Judy Thompson, Vice President, Chamber of Commerce, requested that McGladrey & Pullen, a local firm, be awarded the contract to complete the audit. She emphasized that there bid was $26,000 less than Harvey M. Rose. Rod LeMond, McGladrey and Pullen, felt they were well qualified to perform the audit. He reiterated that his firm could complete the audit for $26,000 less than the current bid. Commission Member Pope-Ludlam indicated that she had witnessed their work at other organizations and had not experienced any problems. Commission Member Curlin felt that it was encouraging that they were a local firm and questioned McGladreys qualifications relative to Harvey M. Rose. Mr. LeMond said that his firm had not completed all the objectives listed as Harvey M. Rose, but that they had worked with other Redevelopment Agencies. He listed there experience in cities and counties such as Los Angeles, Pasadena and Colton. REGULAR MEETING KJH:lmp:cmin9r1 - 11- COMMISSION MEETING september 7, 1993 ~ Timothy C. Steinhaus, Administrator, Economic Development Agency, .wl explained that the Mayor and Timothy Sabo, Special Counsel, reviewed the RFQ responses and that McGladrey & Pullen did not show any redevelopment management audit experience. Timothy Sabo, Special Counsel, Sabo and Green, spoke on the audit needed by the City. He stated that he did not see where McGladrey & Pullen had done a complete management audit in their proposal. He indicated that Harvey M. Rose was more expensive due to there expertise. Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, to authorize the Agency Administrator to enter into a contract for services with McGladrey & Pullen, of San Bernardino, to perform a management audit of the Economic Development Agency. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: None. Agency Administration 15. ECONOMIC DEVELOPMENT AGENCY PROCUREMENT POLICY AND PROCEDURES (Community Deve10pment Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Pope-Ludlam, to reinstate the Economic Development Agency Purchasing Policy and Procedures in effect prior to April 19, 1993. J Commission Member Oberhelman indicated that the staff report stated that the current policies and procedures puts them in a bind during emergency situations. He asked for appropriate safeguards if this item is approved. Kenneth J. Henderson, Executive Director, Development Department, explained that before the procedures were amended, the safeguard was the monthly status report which lists all expenditures over $10,000. He also explained that Commission Member Hernandez requested notification of all expenditures for consultants and special projects. Commission Member Hernandez spoke on previous actions by the Agency that were unknown to the Commission. COMMISSION MEMBER MILLER WAS EXCUSED AT 7:11 P.M. Timothy C. Steinhaus, Administrator, Economic Development Agency, confirmed that the Agency still notifies the Commission through its monthly status report. ~ I REGULAR MEETING KJH: Imp: cmin9r1 - 12- COMMISSION MEETING September 7, 1993 i I -J [ [ [ COMMISSION MEMBER MILLER RETURNED AT 7:13 P.M. Mr. Henderson spoke on the policies previous history of working well with both the Mayor and the Council with an Agency spending limit of up to $25,000. Commission Member Miller felt there were enough safeguards to reinstate the old policy. She pointed out that the City Administrator had the $25,000 spending limit. Commission Member Hernandez requested a courtesy call when funding items. Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam to reinstate the Economic Development Agency Purchasing Policy and Procedures in effect prior to April 19, 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. END OF CONSENT CALENDAR Public Works Department 16. AUTHORIZATION TO PREPARE PLANS - CONSTRUCTION OF NT. VERNON AVENUE STORM DRAIN (Communi. ty Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, that the Director of Public Works/City Engineer be authorized and directed to have plans prepared for construction of the Mt. Vernon Avenue Master Plan Storm Drain, from the East Branch Lytle Creek Channel and Medical Center Drive to Mt. Vernon Avenue at Base Line Street. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: None. REGULAR MEETING KJH:lmp:cmin9r1 - 13- COMMISSION MEETING September 7, 1993 Development Department 17. PRECONSTRUCT:ION AND GENERAL CONTRACTOR SERV:ICES - NEW POL:ICE FAC:IL:ITY (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Curlin to designate Millie/Severson as the apparent lowest responsible bidder and direct staff to negotiate and return for Commission review and authorization a contract for general contracting services. Commission Member Hernandez questioned the need for change orders with this project. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this contractor would not be completing any construction. Discussion ensued regarding the management of change orders. Kenneth J. Henderson, Executive Director, Development Department, stated that this item would be brought back to the Commission for approval of the contract. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 18 . UN:IVERS:ITY V:ILLAGE ASS:ISTANCE REQUEST (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, provided the Commission with a supplemental memorandum that was developed after a Special Redevelopment Committee Meeting. He explained that the Committee recommended that a $650,000 contribution be made for off-site improvements and that a loan in the amount of $600,000 be provided. Mr. Henderson discussed the terms of the loan agreement indicating that the loan would be secured with the property and a personal guarantee. Gary Kirby, Citizen, spoke briefly on the need for the Agency to assist developers as needed. Ari Miller, Camden Development, discussed the need to obtain funding due to the cost to develop the hillside. He also spoke on the high cost of permits. REGULAR MEETING KJH:lmp:cmin9rl - 14- COMMISSION MEETING september 7, 1993 --. j ...., , -J ~ I l I \ .....J [ [ [ Mayor Minor spoke on Mr. Miller not being able to repay the loan until Phase II of his project begins. He commented on the excellent design of the facility. Mr. Miller re-emphasized that the loan would be guaranteed by the leases. _._ Commission Member Miller made a motion, seconded by Commission ~ieliUJer Negrete to approve $650,000 off-site contribution to University Village Shopping Center; and that the Community development Commission appro~e a $500,000 loan at an interest rate of 7% all due and payable in five (5) years with principle and interest deferred for the first thirty-six (36) months and that commencing with the month thirty-seven (37) the developer will pay $5,000 quarterly with the $600,000 principle plus accrued interest all due and payable at the end of five (5) years, or month sixty (60) with an estimated accrued balance of $724,000. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent: None. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 7:50 P.M. Council. Office 19. ADMINISTRATIVE ASSISTANT TO COUNCIL/COMMISSION (Mayor and Common Council.) (Councilman Hernandez's Recommendation) C-0uncilman Hernandez explained the confusion regarding his reque~t to hire an Administrative Assistant to assist the Council Office. He stated that there was a need for a person to assist the Council with the hundreds of complaints that Council office has received. He felt the position could be funded by the Agency since the Council provides services for it. COUNCILWOMAN POPE-LUDLAM RETURNED AT 7:55 P.M. Councilman Curlin questioned why the Agency would be funding the position. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the majority of the work to be completed by Mr. Johnston would be for the Agency. Councilman Oberhelman commented on the tremendous work by the Cou~cil staff and the extra efforts given by Phil Arvizo. He stated that he did not see a problem with the Council staff, but with other departments. REGULAR. MEETING KJH:lmp:cmin9r1 - 15- COMMISSION MEETING September 7, 1993 '- ft Councilman Oberhelman did not believe an additional position should be created in the Council Office. He felt that if the funds were going to be spent on a position, they should be used for a position that would assist the City. John Cole, 7756 Marino Avenue, San Bernardino, requested that the Council deny the request submitted by Councilman Hernandez. He explained that he worked for the city for six (6) years as Administrative Assistant to the Council. He stated that after reviewing the complaints submitted by citizens, he developed a system that ~ut the backlog by 70%. Mr. Cole stated that after six (6) years of service, he was laid off with three (3) weeks notice due to economic conditions. He was assured by Mr. Arvizo and certain Council Members that in the event the position was ever refunded, he would be re-hired. He emphasized that his qualifications were just as valid as those of Mr. Johnston. Mr. Cole answered questions relative to his lay-off from the Conncil Office. Gary Kirby, 1505 Yardly, San Bernardino, expressed concern regarding this item being a political pay-off. He urged the Council to approve a position that would benefit the City. Councilwoman Miller stated that there was no vacancy in the Council Office. She felt if the funds were available to hire an Administrative Assistant, that Mr. Cole be rehired. Discussion ensued regarding the need to fill this position, the applicants requesting the position and funding source. J Councilman Curlin indicated that he only became aware of Mr. Cole's existence today. He recommended that two people be hired. Mayor Minor commented on Mr. Arvizo's dedication to the Council Office even when Mr. Cole was an employee. He felt that approving this item with Agency funds would set a uncommon precedent. Councilwoman Pope-Ludlam requested that a Committee be c.3':ablished to discuss this item and conclude it within a timely mai"ttler. Councilman Curlin made a motion, seconded by Councilwoman Pope- Ludlam to continue the matter to September 20, 1993; and that a committee be established to resolve the issue. Councilwoman Pope-Ludlam removed her second for further discussion. REGULAR MEETING KJH: Imp: cmin9r1 COMMISSION MEETING September 7, 1993 - 16- ~ H -" J ~ ~ ..-I [ [ [ Jim Penman, City Attorney, noted that the City Clerk's Office had laid off staff as well as his office. He stated that all departments were in need of additional staff. He felt that the Committee selected to review this item should also take an overall look at staffing problems throughout the City. Councilman Curlin made a motion, seconded by Councilwoman Pope- Ludlam to continue the matter to September 20, 1993; and that a committee be established to resolve the issue. . The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman Hernandez. Abstain: None. Absent: None. Mayor Minor stated that the Council Office would select the Committee. RS-l AWARD OF CONTRACT - PLATT BUJ:LDXNG DEMOLJ:TJ:ON AND ASBESTOS ABATEMENT/REMOVAL (Mayor and Common Council.) Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that this item relates to the demolition of the Platt Building. He stated that staff requests the contract be awarded to LDL Engineering. Councilman Oberhelman made a motion, seconded by Councilman Negrete, to authorize and direct the Executive Director to negotiate Q~d execute a contract with the apparent low bidder - LDL Engineering, Inc., for the demolition and asbestos abatement/removal at the Platt Building in the amount of $181,000, plus 15% (fifteen percent) contingency (total not to exceed $208,150). Councilman Oberhelman made a motion, seconded by Councilman Negrete, to authorize and direct the Executive Director to execute all necessary documents related to the demolition and asbestos abatement/removal of the Platt Building. COUNCJ:LMAN NEGRETE WAS EXCUSED AT 8:50 P.M. ~OUNCJ:LMAN HERNANDEZ WAS EXCUSED AT 8: 50 P. M. ,. Helen Kopczynski, Citizen, stated that she was not in support of the demolition of the Platt Building or the Superblock. Jeff Wright, P. O. Box 2341, San Bernardino, stated that he was against this item. He felt that the Platt Building did not have to be torn down and requested the Council reconsider this item. REGULAR MEETING KJH: Imp: cmin9r1 - 17- COMMISSION MEETING September 7, 1993 ., 11 Mary Jane Wilson, 2796 "Err Street, San Bernardino, stated that I -s4~'had lived in the City since 1947 and opposed the demolition of the __ Platt Building. COUNC:ILMAN NEGRETE RETURNED AT 8:53 P.M. Ms. Wilson informed the Council that she had approximately 1500 signatures of residents in favor of having the Platt Building converted into a theater and historical place for the community. COUNC:ILMAN HERNANDEZ RETURNED AT 8:55 P.M. Ms. Wilson indicated that she was told if a tenant could be found to occupy the building and paid for all improvements, that the City would give them the building. She stated that a tenant had been found and that they were making arrangements to obtain the funding needed to repair the building. C. D. Carter, Architect, spoke on the benefit of the Platt Building to the City. James Wirth, 1980 Sierra Way, San Bernardino, indicated that a structural analysis needed to be done on the Platt Building and questioned the statement in the report regarding structural design flaws in the building. Mr. Steinhaus explained that all structural questions needed to :J be addressed by the Planning Department. Councilman Hernandez emphasized the need to demolish the Platt Building in order to build the new State Building which would bring approximately 1500 people to the downtown area. ~~r. Wirth explained that Mr. Carter had designed an alternative footprint with the Platt Building being part of the State Office Building. Jim Penman, City Attorney, stated that the Council has reviewed this item on several occasions and that legal advice regarding litigation had been discussed. He indicated that the Platt Building did not appear to meet the criteria for a historical site. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. CLOSED SESSION RS-2 ADJOURN TO CLOSED SESS:ION There were no items for discussion in Closed Session. ~ REGULAR MEETING KJH: lilt&>: cmin9r1 - 18- COMMISSION MEETING September 7, 1993 -J [ [ ,... L RS-3 ADJOURNMENT ---+-~ ... At 9:20 p.m., the meeting of the Mayor and Common Counci.l/Community Development Commission was adjourned to Monday, Septenmer 20, 1993 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: RE\;ULAR MEETING KJH: Imp: cmin9r1 ON r/ Commission - 19- COMMISSION MEETING September 7, 1993 ~ -- J ~ -..Ii [ [ [ -+--- MAYOR AND COMMON COUNCIL COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO MINUTES JOINT REGULAR MEETING September 20, 1993 11 :00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 3:04 p.m., on Monday, September 20, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. I~OLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; Norine Miller. Absent: None. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Richard Morillo, Sr. Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator; Rachel Clark, City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Maria Hunt, The Sun Newspaper. CONSENT CALENDAR The Commission Members requested that items numbered "6", "7" and "8" be removed from w(. Consent Calendar. Commission Member Oberhelman made a motion, seconded by Commission Member Miller, that the Consent Calendar items numbered "1" through "8" be adopted except for items numbered "6", "7", and "8", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:Im). :cmin9jr2 - 1 - COMMISSION MINUTES SEPTEMBER 20, 1993 1. JOINT POWERS FINANCING AUTHORITY ..... (Communitv Develonment Commission) .5'J Commission Member Oberhelman made a motion, seconded by Commission Member Miller, that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, October 18, 1993. ...J The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Nune. Purchasine Division 2. TREE TRIMMING. CITY WIDE (Mavor and Common Council) Councilman Oberhelman made a motion, seconded by Councilwoman Miller, that the following resolution be approved and adopted: PESOLUTION NUMBER 93-359 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND WEST COAST ARBORISTS INC., RELATING TO TREE TRIMMING SERVICES FOR TREE TRIMMING PURPOSES. , -J The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: N<.;r.e. Public Worb Deoartment 3. HANDICAPPED RAMPS VARIOUS LOCATIONS (Mavor and Common Council) Councilman Oberhelman made a motion, seconded by Councilwoman Miller, that the followin~ resolution be approved and adopted: RESOLUTION NUMBER 93-360 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO B- 1 ENTERPRISE CORPORATION FOR INSTALLATION OF HANDICAPPED RAMPS AT VARIOUS LOCATIONS. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ~ ......." JOINT REGULAR MEETING KJH:lmp:emin9jr2 -2- COMMISSION MINUTES SEPTEMBER 20, 1993 [ [ [ Develooment Denartment 4. REPROGRAMMING OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBGl FUNDS TO HANDICAPPED ACCESSIBILITY PROJECT (Mavor and Common Council) Councilman Oberhelman made a motion, seconded by Councilwoman Miller, to approve the transfer and reprogramming of Community Development Block Grant (CDBG) funds in the amount of $31,968.44 for the Handicapped Accessibility Project. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 5. TRANSFER OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBGl FUNDS FOR PARKS. RECREATION AND COMMUNITY SERVICES PROJECTS (Mavor and Common Council) Councilman Oberhelman made a motion, seconded by Councilwoman Miller to approve the transfer of Community Block Grant (CDBG) funds between certain Parks, Recreation and Community Services Department projects. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ITEM NOT ON THE AGENDA Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that Mr. Dan Stark, Executive Director, Convention Center and Visitors Bureau would like to give a brief verbal report on the Route 66 event. Dan Stark, Executive Director, Convention Center and Visitors Bureau, thanked the various Cii}' departments and a special thanks to his staff for contributing to the success of the Route 66 Rendezvous. He also thanked Nostalgia Television, Center Chevrolet and LeMans Nissan for their contributions to Route 66. David Anderson, Police Department, stated that approximately 110,000 people attended the three day event with only one arrest. He also thanked the Police Explorers who came out and assisted the Police Officers with traffic control and other minor details. Officer Anderson contributed the success of the event to the volunteer system in San Bernardino and also the Citizens Patrol Unit. Commission Member Pope-Ludlam asked if a report would be done on the economic impact this event had on the city. JOINT REGULAR MEETING KJH:lmp:cmin9jr2 COMMISSION MINUTES SEPTEMBER 20, 1993 -3- Mr. Stark stated that a report would be done and distributed to the Commission. He emphasized that overall, vendors and downtown businesses were pleased with the outcome. ~ SAN BERNARDINO MITSUBISHI CERTIFICATE OF COMPLETION ~,l ~ 6. (Community Develooment Commission) Jeff Wright, P.O. Box 2341, San Bernardino, requested the Commission not negotiate with Mitsubishi due to their participation in the damaging of the rain forest. Commission Member Oberhelman made a motion, seconded by Commission Member Pope- Ludlam, to ratify the execution of a Certificate of Completion and Waiver and Release of Right of Reentry in connection with a refmancing of San Bernardino Mitsubishi's automobile dealership property . The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 7. APPROVAL OF MT. VERNON CORRIDOR TAXING AGREEMENT WITH THE COUNTY SUPERINTENDENT OF SCHOOLS (Communitv Develooment Commission) ., ~ q ...,jJ Commission Member Hernandez questioned why the Agency was negotiating with the Superintendent of Schools. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that by law, negotiations had to take place with all taxing agencies when adopting a new redevelopment project area. He indicated that these negotiations were to clear-up some discrepancies that were in the ~reement. Commission Member Hernandez noted that some offices were renegotiating their agreements due to property values decreasing. Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the following resolution be approved and adopted: RESOLUTION NUMBER 5379 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A CERTAIN FISCAL IMPACT AGREEMENT WITH THE COUNTY SUPERINTENDENT OF SCHOOLS IN CONNECTION WITH THE ADOPTION OF THE MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS AND ..., DETERMINATIONS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33401. ~ JOINT REGULAR MEETING KJH:lmp:cmfn9jr2 - 4- COMMISSION MINUTES SEPTEMBER 20, 1993 [ [ [ The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 8. RESOLUTION OF SUPPORT FOR CAL-EPA ONE-STOP PERMIT CENTER (Mayor and Common Council) Jeff Wright, P. O. Box 2341, San Bernardino, stated that he wanted the Council to make sure that CAL-EP A upholds the law. COUNCILMAN CURLIN WAS EXCUSED AT 3:35 P.M. Councilman Oberhelman made a motion, seconded by Councilman Hernandez that the following resolution be approved and adopted: RESOLUTION NUMBER 93-361 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO SUPPORTING THE LOCATION OF CAL-EPA INLAND EMPIRE ONE- STOP PERMIT CENTER WITHIN THE CITY OF SAN BERNARDINO. The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Curlin. END OF CONSENT CALENDAR COUNCILMAN CURLIN RETURNED AT 3:36 P.M. 9. MACYIBLAKE SEWER (Mavor and Common Council) Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez, to approve CDBG funds in an amount not-to-exceed $25,000 to underwrite the MacylBlake Sewer Project contingent upon the County of San Bernardino paying one-half (1/2) of the required costs. Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-362 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE STATE COLLEGE REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO REDEVELOPMENT AGENCY. JOINT REGULAR MEETING KJH:lmp:,:min9jr2 COMMISSION MINUTES SEPTEMBER 20, 1993 - 5- The motion carried by the followmg vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. END OF CONSENT CALENDAR RS-t. PROJECT ADMINISTRATOR CONTRACT - STATE CONSOLIDATED OFFICES AND CAL TRANS BUILDING (Community Develooment Commission) James Wirth, 1980 Sierra Way, San Bernardino, recommended the Council request the Staubach Company meet with the State Office of Historical Preservation to discuss the preservation of the Platt Building. He stated that the building was safe and that it could be incorporated into the State Office Complexes. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to authorize the Agency Administrator to draft and execute a thirty (30) month contract with the Staubach Company in the amount of $364,000 for project administration services for the Design and Construction of the State Consolidated Offices and Caltrans Building on the Superblock. Timothy C. Steinhaus,. Administrator, Economic Development Agency, stated that staff was working with the consultants, the county, and city department to make sure they comply with all codes. Jeff Wright, P. O. Box 2341, San Bernardino, spoke on the need to address and consider the historical aspects of the Platt Building. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. RS-2 CAMDEN DEVELOPMENT ASSISTANCE AGREEMENTS (Communitv DeveloDment Commission) Commission Member Hernandez made a motion, seconded by Commission Member Devlin to authorize the Executive Director to execute assistance agreements with Camden Development, Ltd., as drafted by Agency Special Counsel; further that the Executive Director be authorized to execute such other documents as are required to carry out the terms of the agreements and be authorized to make such non-substantive corrections as are approved by Agency Special Counsel; and further, that the Economic Development Agency budget of 1992-1993 be amended to provide an additional $1,250,712 to be used for assistance to the University Village Shopping Center development. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:1mp:cmin9jr2 - 6- COMMISSION MINUTES SEPTEMBER 20, 1993 ..... , ...." , .~ ..... 1 I \ -J r ...... [ [ CONTINUED FROM SEPTEMBER 7, 1993 RS-3. ADMINISTRATIVE ASSISTANT TO COUNCIL/COMMISSION (Mavor and Common Council) (Councilman Hernandez's Recommendation) Mayor Minor briefly discussed this item indicating that he did not believe it would solve the problems that exist in the Council Office, nor did he believe it should be funded by the Agency. Richard Morillo, Senior Assistant City Attorney, stated that the AD HOC Committee requested the Attorney's Office to give an opinion on this item. He stated that the Attorney's Office concluded that the Mayor was the only person who had the authority to make an appointment and he clearly was not in agreement with this request. Councilwoman Pope-Ludlam questioned why the motions from the previous Commission Meeting were listed on this Cover Sheet when the AD HOC Committee had discussed and agreed to other motions. Discussion ensued regarding the difference between the Commission and the Common Council and the different rules that apply to each. Councilman Oberhelman felt the Council should discuss the merits of this position. He felt the money used to fund this position would be better if applied elsewhere. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the motions from the previous meeting were listed on this Cover Sheet because no new motions were submitted from the Council Office as suggested at the AD HOC Meeting. Councilman Hernandez reiterated on the need to hire someone to assist the Council Office with its complaints. He stated that the Council Office had made appointments in the past. Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez to continue this item until a meeting is called and at that time an agenda item will be brought back that is constructed by the Committee. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. CLOSED SESSION RS-4. ADJOURNED TO CLOSED SESSION At 4:20 p.m. the Mayor and Common Council and Community Development Commission recessed to Closed Session for the following: D. to give instruction to the Commission's negotiator on the purchase of property pursuant to Government Code Section 54956.8. The real property which the negotiations concern is generally located at: 5055 Hallmark JOINT REGULAR MEETING KJH:lmp:cmin9jr2 -7- COMMISSION MINUTES SEPTEMBER 20, 1993 END OF CLOSED SESSION --------------------- ~ RS-5 ADJOURNMENT - At 4:45 p.m., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, October 4, 1993 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: ~QloIl,~ KENNETH . HEN ERSON Executive Directorl Secretary to the Commission ., J ~ I .....J JOINT REGULAR MEETING KJH:lmp:cmin9Jr2 -8- COMMISSION MINUTES SEPTEMBER 20, 1993 [ [ [ MAYOR AND COMMON COUNCa AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING October 4, 1993 11:00 a.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was called to order by Mayor Tom Minor at approximately 11:37 a.m., on Monday, October 4, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bemardino, Califomia. ROLL CALL Roll call was taken with the following members present: Chaiunan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obethelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Henry Empeno, Deputy City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Ernie Wilson, Affiunative Action, Mayor's Office; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Maria Hunt, The Sun Newspaper. The Commission Members requested that items numbered "1", "4" and "9" be removed from the Consent Calendar. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin, that the Consent Calendar items numbered "I" through "9" be adopted, except for items numbered "I", "4" and "9". The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETING KJH:lmp:cminIOrI COMMISSION MINUTES October 4, 1993 1 2. REDEVELOPMENT COMMITTEE MINUTES (Communitv DevelQpment Commi!l!lion) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of September 2, 1993, be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Public W orb D~partment 3. CONTRACT CHANGE ORDER NUMBER 7 - IMP~OVEMENTS TO MILL COMMUNITY CENTER. PER PLAN NO. 8890 .. KIRKLEY DEVELOPMENT (Mayor and Common Council) Councilman Pope-Ludlam made a motion, seconded by Councilman Curlin, that Change Order No. 7 to the contract with Kitkley development, Inc., for Improvements to the Mill Community Center, in accordance with Plan No. 8890, be approved; to authorize installment of a rubberized flooring system in the gym area, at an increase in the contract price of $18,865.00, from $623,351.75 to $642,216.75. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Development Department 5. DELMANN HEIGHTS WATER SYSTEM UPGRADE (Community DevelQpment Commis!lion) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin, to approve an amount not to exceed $85,000 in bond proceeds to underwrite additional unexpected costs associated with the Delmann Heights Water System Upgrade project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETING KJH:lmp:cminlOrl 2 COMMISSION MINUTES October 4, 1993 .., i ....iI .., J .., j l ~ ......J [ [ [ 6. FY1993/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENT BETWEEN THE CITY AND HOME OF NEIGHBORLY SERVICES (Mayor and Common Council) Councilman Pope-Ludlam made a motion, seconded by Councilman Curlin, that the following resolution be approved and adopted: RESOLUTION NUMBER 93- 386 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUfHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND HOME OF NEIGHBORLY SERVICES. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberl:1elman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 7. SANTA FE AUTOMOBILE DISTRIBUTION FACILITY (Community DevelQpment Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin, to approve a $110,000 contribution toward water facility improvements for the Santa Fe Automobile Distribution Facility and authorize the Chainnan and Executive Director to execute all documentation necessary to effectuate said transaction; and, that the Development Department budget be increased accordingly. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberl:1elman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 8. SMAI~L BUSINESS LOAN COMMITTEE (Communitv DevelQpment Commission) Chairman Minor's Recommendation Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin, to approve the attached five (5) candidates as members of the Small Business Loan Committee as recommended by Chainnan Minor for appointment by the Chainnan and conflnnation by the Commission. REGULAR MEETING KJH:lmp:cminlOrl COMMISSION MINUTES October 4, 1993 3 The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. ., ...., 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Communitv Development Commission) Commission Member Hernandez indicated that he voted yes to Item #16 at the September 7, 1993 Commission Meeting. Commission Member Negrete made a motion, seconded by Commission Member Obemelman, that the minutes of the Community Development Commission of the City of San Bemardino for the meetings of September 7,1993 and September 20, 1993 be approved, as mnended. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 4. 1\DOPTION OF NEGATIVE DECLARATION AND FINDING OF CONSISTENCY WITH CIRCULATION ELEMENT OF (;ENERAL PLAN - CONSTRUCTION OF LANDSCAPE MEDIANS TRAFFlC DIVERTERS --- NEWCOMB ST.. MCKINLEY. AND DUMBARTON A VJj:NUES. BETWEEN 20TH STREET AND HIGHLAND AVENUE -- PUBLIC WORKS PROJECT NO. 93-04 (Mavor and Common Council) , ....", Kenneth J. Henderson, Executive Director, Development Department, explained that the Commission had previously approved $1.5 million for the Arden Guthrie Project. He stated that a portion of those funds were for the completion of common area improvements. Commission Member Hemandez suggested that a report be developed which summarized the effectiveness of the management company located on site in the complex. Mr. Henderson stated that a number of reports had been developed regarding the security in the complex. He also infonned the Commission that escrow on the Multi-Use Facility would be closing soon and that the first task force meeting would take place this week. Commission Member Hernandez asked who was responsible for the security in the complex. Mr. Henderson indicated that the security in the complex was the responsibility of the Equity Management Service, the Agency's designated project managers. ,..... REGULAR MEETING KJH:lmp:cminlOrl 4 COMMISSION MINUTES October 4, 1993 -"" [ Commission Member Miller made a motion, seconded by Commission Member Oberhelman, that the Negative Declaration for Public Wolks Project No. 93-04, construction of landscape medians, 90 degree parking, and traffic diverters in Newcomb Street, McKinley Avenue and Dumbarton Avenue, between 20th Street and Highland Avenue, be adopted. Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that a rroding be made that Public Wolks Project No. 93-04 is consistent with the circulation element of the Geneml Plan. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: None. Arencv Administration 9. MASTf:R SERVI<;ES AGREEME~T BETWEEN THE ECONOMIC DEVELOpMf;NT A(;El'IlC'X ~ND THE DEPt\.RTM~~T OF PLANNING AND BUILDING SERVICES - fROPQSl!;D BUILDI~G INSPECTION (REHABILITATION) AND CODE ENFORCEMENT SERVICES (Community Development Commission) Commission Member Hernandez expressed concern regarding the Planning and Building r Services Department using redeveloprnent funds. I '-- Kenneth J. Henderson, Executive Director, Development Department, stated that the funds requested by Planning and Building Services Department would allow it to keep existing staff employees. He explained that due to the large size of tge Central City Revitilization Stmtegy Area. enhanced code enfolCement would be needed. Commission Member Hernandez commented on the costs incurred by property owners who are cited for remodeling without pennits. Mr. Henderson explained that according to AI Boughey, Director of Planning and Building SelVices, if someone has built on their property without pennits, the fee is the same as if they had went through planning and obtained the proper pennits needed. Al Boughey, Director of Planning and Building Services, stated that when complaints are made regarding property, his department tries to resolve the complaint on a voluntary basis with the owner. However, if the need to take corrective action arises, the complaint is taken to the Board of Building Commissioners and the owner must pay administmtive fees, corrective action costs and any other related costs. Mr. Boughey also explained that if a property owner is building illegally, he must stop building, have a pre-inspection done on the property and pay the pennit fees. [ REGULAR MEETING KJH:lmp:cminlOrl 5 COMMISSION MINUrES October 4, 1993 Commission Member Hernandez reiterated that he wanted the Planning Department to go with a positive pro-active program when investigating complaints. ~ COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 11:54 A.M. ...." Commission Member ObeIhelman made a motion, seconded by Commission Member Miller, to am end the Master Services Agreement between the Economic Development Agency and the Department of Planning and Building Services in an amount not to exceed $208,250 for enhanced building inspection and code enforcement services in the Central City Revitalization Strategy Area. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelmaq.; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 12:00 P.M. END OF CONSENT CALENDAR Afency Administration 10. PROGRAMMING SERVICES-STATE CONSOLIDATED OFFICES AND CALTRANS BUILDING (Community Development Commission) ,., ~ ....J Commission Member Miller made a motion, seconded by Commission Member Negrete, to authorize the Agency Administrator to draft and execute a contract with Keating Mann Jernigan Rottet in an amount not to exceed $90,000 for architectural programming services for the design of the State Consolidated Offices and Caltrans Building on the Superblock site. Timothy C. Steinhaus, Administrator, Economic Development Agency, noted a correction to the Agenda Cover Sheet stating that the motion should read $80,000 and not $90,000. Commission Member Hernandez stated that the City had been criticized for using outside developers. He requested infoDIlation regarding safeguards being used to eliminate this problem. Mr. Steinhaus explained that the Agency would follow the state guidelines regarding the hiring of disabled veterans, women and minorities. He also indicated that the local rules of the City would apply regarding the hiring of local businesses. He stated that if a local vendor is not hired, the Agency must document the reason for hiring a non-local vendor. ,., '. REGULAR l'v1EETING KJH:lmp:cminlOrl 6 COMMISSION MINUTES October 4, 1993 ~ ....; [ r L r ... James Wirth, 1980 Sierra Way, San Bemardino, reported to the Commission that this item was related to the historic Platt Building. He read a letter which referenced the Frank C. Platt Building as a historical building and requested the Commission recommend to the contractor that the State Offices utilize the Platt Building. COMMISSION MEMBER CURLIN WAS EXCUSED AT 12:04 P.M. Commission Member Pope-Ludlam recommended that an Afflunative Action Committee be developed to help in utilizing local flnns for this project. COMMISSION MEMBER CURLIN RETURNED AT 12:05 P.M. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 12:05 P.M. Commission Member Miller infonned the Commission that the project manager selected for the office building would not select the architects for the project, only give recommendations. She stated that the City would make the final selection. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 12:08 P.M. Commission Member Negrete stated that the committee worlc.ing on this project had met on a regular basis to discuss the proposals. He explained that not all local finns had the necessary qualifications to complete this project, but that the selections made were fair. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hemandez. Absent: None. 11. CONSULTANT TO THE COMMISSION/COUNCIL (Community Develo,pment Commission) Councilman Hel'Qandez's Recommendation Mayor Minor stated that this item would be discussed after the Planning Session this afternoon. MEETING ADJOURNED At 12:11 pm. the meeting of the Mayor and Common Council and the Community Development Commission was adjourned until 2:00 pm. REGULAR MEETING KJH:lmp:cminlOrl COMMISSION MINUTES October 4, 1993 7 MEETING RECONVENED At 2:50 pm., the meeting of the Mayor and Common Council and the Community Development Commission was called to order. ROLL CALL Roll call was taken with the following members present: Chaion an Tom Minor, Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jeny Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Hemy Empeno, Deputy City Attorney; Lorraine Velarde, Executive Assistant to the Mayor, Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Cleric; Suzanna Cordova, Deputy City Cleric; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Maria Hunt, The Sun Newspaper. 11. CONSUL T ANT TO THE COMMISSION/COUNCIL (Community Development Commission) Councilman Hernandez's Recommendation Jim Lynas, Citizen, read a letter written by himself to the Commission regarding previous contacts with the Council Office. In his letter he made references to Commission Member Hernandez trying to be involved in all city activities including those outside of his ward. Mr. Lynas concluded his remaries by stating that all the woric in the Council Office funnels through Councilman Hemandez. He stated that the hiring of Mr. Johnston would only increase Councilman Hernandez's ability to become involved with all wards. Commission Member Hernandez commented that the statements made by Mr. Lynas were not true. He emphasized that as a Councilmember for the City, he is required to represent all citizens in the City under the charter. Hemy Empeno, Deputy City Attorney, advised the Commission of the legal matters pertaining to this contract. He stated that Motion C of this item was worded improperly and that it would need to have Council approval. REGULAR MEETING KJH:lmp:cminlOrl 8 COMMISSION MINUTES October 4, 1993 ~ ti J ....J ., J ~ ! .....; [ r L [ Commission Member Hemandez stated that Motion C was being removed from this item. Mr. Empeno explained that as a Consultant, you control your own actions and set your own guidelines. He referred to the Scope of SelVices listed in the back-up as Attachment A and identified certain points within the attachment which specified certain direction and rules which were inappropriate for a Consultant. He also discussed the possibility of a suit arising from this agreement due to the job description being that of a regular employee and not a Consultant. He stated that the wolk proposed for Mr. Johnston is currently being done by other staff employees on a regular basis. Mr. Empeno answered questions relative to the direction and the drafting of this agreement. Commission Member Hernandez stated that he requested the City Attorney's Office to draft a legal document that would enable the hiring of Mr. Johnston as a Consultant. He spoke on previous problems in the past when dealing with that office. Commission Member Miller expressed her comments regarding the approach taken to hire Mr. Johnston to the Council Office. Discussion ensued regarding political appointments being made within City Hall. Commission Member Curlin discussed the actions taken by the Commission at the September 7, meeting and the development of the AD HOC Committee that reviewed the need for this position. COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 3:22 P.M. Commission Member Oberhelman stated that this item still does not address the need to hire someone who can solve the problems being identified in the complaints submitted to the Council Office. COMMISSION MEMBER POPE.LUDLAM RETURNED AT 3:24 P.M. Commission Member Pope-Ludhm spoke of the need to hire additional help in the Council Office. She stated that the Council Office has seven (7) elected officials with only one (1) staff person to assist them and three (3) clerical staff members. Rachel Clark, City Clelk, stated that all vacancies within the City CleIk's Office were open to the public and been filled with applicants who tested and intelViewed through the nonnal hiring process. Mayor Minor stated that he had made public appointments that were done legally and discussed the procedure in which they are made. COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 3:58 P.M. Commission Member Hernandez indicated that the Mayor should not have the right to veto a council appointee. REGULAR MEETING KJH:l.mp:cminlOrl COMMISSION MINUTES October 4, 1993 9 COMMISSION MEMBER POPE-LUDLAM RETURNED AT 4:01 P.M. Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman to direct the legal office to sit down with staff and modify the Agreement and Scope of Services. -- t, ~ '-" Mr. Empeno stated that the current agreement could not be amended to comply with state law unless the facts are provided by staff to change the Scope of Services. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he needed additional direction regarding the services needed for this position. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 4:04 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 4:06 P.M. Commission Member Pope-Ludlam recommended this item be referred to the AD HOC Committee to tIy and make the contract legal and to discuss the type of staff needed in the Council Office. Commission Member Curlin stated that he would not like to participate on the AD HOC Committee due to the polarizing of the Commission regarding this matter. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller, M~~~ ~ R The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; ...J Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: None. CLOSED SESSION 12. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. REGULAR MEETING KJH:lmp:cminlOrl 10 COMMISSION MINUTES October 4, 1993 ~ t 1 -J [ r L ,... L 13. ADJOURNMENT At 4:20 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Thursday, October 21, 1993 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: KE~JNDERSON Executive Director/ Secretary to the Commission REGULAR MEETING KJH:lmp:cminlOrl COMMISSION MINUTES October 4, 1993 11 ~ t ~ ...J .. I ....J .., t l I --' [ [ [ MAYORANDCOMMONCOUNca COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO MINUTES JOINT REGULAR MEETING October 21 , 1993 11:00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 11:44 pm., on Thursday, October 21, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor, Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obemelman; Jerry Devlin; Valerie Pope-Ludlam; Norine Miller. Absent: None. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor, Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerlc; Melanie Vale, Deputy City Clerlc; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. CONSENT CALENDAR The Commission Members requested that item number ""7" be removed from the Consent Calendar. Commission Member Obemelman made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items numbered "1" through "8" be adopted except for items number "7", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cminlOj2 COMMISSION MINUTES OCTOBER 21, 1993 - 1 - 1. JOINT POWERS FINANCING AUTHORITY (Community Development Commission) ,..., Commission Member ObeIbelman made a motion, seconded by Commission Member Hernandez, that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, November 15, 1993. ......- The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIbelman; Devlin; Pope-Ludlllll; Miller. Noes: None. Abstain: None. Absent: None. 2. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Development Commission) Commission Member ObeIbelman made a motion, seconded by Commission Member Hernandez, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of October 4, 1993, be approved as submitted in typewritten fonn. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIbelman; Devlin; Pope-Ludlllll; Miller. Noes: None. Abstain: None. Absent: None. (Community Development Commission) J 3. REDEVELOPMENT COMMITTEE MINUTES Commission Member ObeIbelman made a motion, seconded by Commission Member Hernandez, That the minutes of the Redevelopment Committee of the City of San Bernardino for the meetings of September 23, 1993 and October 7, 1993 be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIbelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. Public Works Department 4. ADVERTISE FOR BIDS. INSTALLATION OF TUBULAR STEEL FENCE AT MILL COMMUNITY CENTER (Mavor and Common Councm Councilman ObeIbelman made a motion, seconded by Councilman Hernandez, that the plans for the installation of tubular steel fencing at Mill Community Center Pool, in accordance with Plan l. ... No. 8830, be approved; and that the Director of Public Works/City Engineer be authorized to advertise ... for bids. -1 JOINT REGULAR MEETING KJH:lmp:cminl0J2 - 2 - COMMISSION MINUTES OCTOBER 21, 1993 [ [ [ The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 5. IMPROVEMENT OF HIGHLAND AVENUE FROM DENAIR AVENUE TO BOULDER AVENUE (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that Change Order No. One to the contract with Bear Valley Paving, for the improvement of Highland Avenue, from Denair Avenue to Boulder Avenue, in accordance with Plan No. 8801, be approved, to authorize the Contractor to install an additional 1,706 feet of 8-inch concrete median curb, and substitute 6-inch concrete median curb for the 8-inch concrete median curb, as shown on the plans, at an estimated increase of $11,391.11 in the contract price, from $552,832.00 to $564,223.11. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. Main Street 6. DECORATIVE LIGHTING PROGRAM (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to authorize the Agency Administrator to contract with Dekra-Lite to provide and install penn anent decorative lighting. The property owners and/or businesses to reimburse the Agency 50% of the cost of private property The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 8. RENEW AL OF SECURITY DISTRICT FOR THE BASELINE AREA BUSINESS ASSOCIA TION (Communitv Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to allocate $34,675 to the Baseline Area Business Association (BABA) for private security selVices subject to the equal and prior matching contribution of $34,675 from BABA, and authorize the Executive Director to develop and execute all necessary documents to effectuate this transaction. JOINT REGULAR MEETING KJH:lmp:c:mlnl0j2 COMMISSION MINUTES OCTOBER 21, 1993 .3. ~ ...,# The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ,.... ......!II Development Department 7. SANTA FE AUTOMOBILE DISTRIBUTION FACILITY (Community Development Commission) Commission Member Hernandez voiced concern regarding the verbiage used in the mutual benefit resolutions for this item. Kenneth J. Henderson, Executive Director, Development Department, explained that the wording used for the mutual benefit resolutions were boiler plates. MAYOR MINOR WAS EXCUSED AT 11:48 A.M. Timothy C. Steinhaus, Administrator, Economic Development Agency summarized the actions surrounding this item, indicating that the Commission approved the construction of the water line at its last regularly scheduled meeting, and that the only funds available to fund this project was from the State College Project area. MA YOR MINOR RETURNED AT 11:50 A.M. ,., I --" Mr. Steinhaus indicated that the water line would benefit the entire City by providing new jobs and facilitating General Motor'sreuse of the Santa Fe Rail yards. Commission Member Obemelman made a motion, seconded by Commission Member Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER 5390 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE STATE COLLEGE REDEVELOPMENT PROJECf AREA OF THE SAN BERNARDINO REDEVELOPMENT AGENCY. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: None. Councilman Obemelman made a motion, seconded by Councilman Negrete, that the following resolution be approved and adopted: ,.... .......;J JOINT REGULAR MEETING KJH:lmp:cmlnl0j2 - 4 - COMMISSION MINUTES OCTOBER 21, 1993 [ r l.. r ~ L (Mayor and Common Council) RESOLUTION NUMBER 93-402 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE STATE COLLEGE REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO REDEVELOPMENT AGENCY. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Oberllelman; Devlin; Pope-Ludlmn; Miller. Noes: Councilman Hernandez. Abstain: None. Absent: None. END OF CONSENT CAT .RNDAR (PUBLIC COMMENTS ON ITEMS NOT ON AGENDA) James Wirth, 1980 Siena Way, San Bernardino, infonned the Commission that when the City purchased the Platt Building, there were approximately 1500 valuable posters inside. He stated that if the posters were still present in the building, he would like to request they be placed in the library for the public's viewing; however, if they are the property of the owner, he would like them to be returned to him. COMMISSION MEMBER CURLIN WAS EXCUSED AT 11:53 A.M. Mayor Minor infonned Mr. Wirth that a report would be given at the next meeting on November 1, 1993 regarding the posters. 9. CALIFORNIA INN (SRO) (Community Development Commission) Redevelopment Committee Recommendations Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that items numbered "9", "10" and "11" are issues that have come to the Commission through Closed Session, Redevelopment Committee Meetings and meetings with the Mayor, the Redevelopment Committee Members and individual loan clients. Commission Member Oberllelman made a motion, seconded by Commission Member Miller that these items be continued for two weeks. Commission Member Miller removed her second for discussion purposes. Discussion ensued regarding the continuance of the remainder of the agenda until November 1, 1993. JOINT REGULAR MEETING KJH:lmp:cminl0J2 COMMISSION MINUTES OCTOBER 21, 1993 - 5 - Commission Member Hemandez made a motion, seconded by Commission Member Pope- Ludlam to continue the agenda at 2:00 pm. ..., The motion carried by the following vote: Ayes: Commission Members Negrete; Devlin; Pope-Ludlam. Noes: Commission Members Obethelman; Miller. Abstain: None. Absent: Commission Member Curlin. ....J At 11:54 am. the Mayor and Common Council recessed until 2:00 pm. MEETING RECONVENED ~ At 2:02 pm. the Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor. ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obethelman; Jeny Devlin; Valerie Pope-Ludlam; Norine Miller. Absent: None. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Cleric; Melanie Vale, Deputy City Cleric; La Vonda M-Pearson, Recording Secretary, Development Department. , ....I OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. COMMENTS Commission Member Curlin gave comments on a seminar he attended regarding smoking and tobacco. He spoke on the hazards of smoking and the results it had on individuals. He infonned the public that the City would be sponsoring a task fon:e to discuss this item and if interested please call (909) 880-5567. I i -..ill JOINT REGULAR MEETING KJH:lmp:cmlnlOJ2 - 6 - COMMISSION MINUTES OCTOBER 11, 1993 [ [ [ 9. CALIFORNIA INN (SRO) (Community Development Commission) Redevelopment Committee Recommendations Kenneth J. Henderson, Executive Director, Development Department, gave a brief history on items numbered "9", "10" and "11". He stated that the Commission was nonnally made aware of the financial status of various projects through the monthly notes receivable report. Mr. Henderson explained that Califomia SRO required additional action to take place in order to come about. He also noted that staff, a member from the Mayor's Office and a representative from LARCON Development met with the Housing Authority regarding financial assistance from its organization for this project. He said that the Housing Authority indicated that it could not provide assistance at this time. Discussion ensued regarding the use of Secretary of Housing and Urban Development (HUD) Discretionary Funds. Commission Member Hemandez made a motion, seconded by Commission Member Pope- Ludlam that the following motions be approved: That the Community Development Commission authorize staff to retain a professional consultant to prepare a Comprehensive Market Analysis on the proposed Califomia Inn Single Room Occupancy (SRO) project. That the Community Development Commission direct staff to take actions, in conjunction with Larcon Development, Inc., to develop a modified project Schedule of Perfonnance. That the Community Development Commission direct staff to investigate, in conjunction with Larcon Development, Inc., potential County of San Bernardino Housing Authority fmancial assistance relative to California Inn project. Mayor Minor stated that at the Committee Meeting, he indicated to Mr. Lara that he was not completely sold on .the site selected, and that Mr. Lara had requested his time be extended for six (6) months. Commission Member Obemelman questioned the Agency resources tied-up with this project. Mr. Henderson stated that the Commission approved fmancial assistance to this project in the amount of $2.005,000 million and the donation of parcel worth $500,000. He noted that those resources would not be available for other projects unless this agreement was tenninated. Commission Member Miller questioned the commitment by the Agency in the new Development and Disposition Agreement (DDA). Mr. Henderson explained the funding sources for this project indicating that the developer anticipated receiving $1 million from other entities. He reiterated that the Housing Authority did not foresee the ability to provide fmancing for the project but the developer they could still apply for the discretionary funds which were very competitive. JOINT REGULAR MEETING KJH:lmp:cminl0j2 COMMISSION MINUTES OCTOBER 21,1993 - 7 - Mr. Henderson clarified the proposed use of the $1 million ftmds stating that it would be used to reduce the rent range from $315 to $440 per month to 325 to 390 per month. Commission Member Hernandez explained that the project could still continue without the $1 million ftmding. He stated that it would only cause the rent to be higher. He emphasized that this project would accommodate and benefit the citizens of San Bernardino. Mr. Henderson mentioned that the location of Fifth and "E" Street for the SRO was selected due to the developer not being able to acquire the Argonant Hotel site and the Great Western location. Commission Member Miller commented on the visit to San Diego to view the SROs, indicating that they were not located on major streets as suggested for the California SRO. Mr. Henderson discussed the schedule of peIfounance for the California SRO. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 3:34 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 3:35 P.M. Commission Member Curlin questioned the feasibility and need for this project. Mr. Henderson answered questions relative to Commission Member Curlin's concerns. Commission Member ObeIbelman commented on the developers comments regarding not being able to obtain financing without a Conditional Use Peunit (CUP) when other projects have obtained financing which were conditional upon receiving all entitlements. He questioned if the financing difficulties experienced by the developer were due to the type of project this was. Mr. Henderson responded by stating that an SRO was still a very new concept to the private lending community and recommended that a market study be completed. Commission Member Pope-Ludlam spoke on the ability to obtain discretionary ftmds especially when the ftmds would benefit low-income individuals. Mayor Minor expressed his concerns regarding the project's stability and location. Lee Lopez, Attorney representing the Saint Bemardine Plaza and the Catholic Diocese, discussed the problems that would be caused by the SRO and those being experienced by the developer. He stated that the developer, who was now requesting additional ftmds and time, was also having difficulties complying with codes. He stressed the need of a market study stating that it would educate the Commission on the decisions they were making in reference to this project. Commission Member Devlin advised the Commission to focus on the technical default status of this project. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Agency was currently in the process of interviewing fiuns to complete the market study. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hemandez; Pope-Ludlam. Noes: Commission Members ObeIbelman; Devlin; Miller. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cmlnl0J2 . 8 - COMMISSION MINUTES OCTOBER 21, 1993 .-.- , ! .~ ..... -, J ....-. I ! I ; --' [ [ [ 10. ARROW VISTA HOUSING DEVELOPMENT PROJECT (Community Development Commission) Redevelopment Committee Recommendations Commission Member Hemandez explained that the Commission was to be provided with a list of buyers for the Arrow Vista Homes. He explained that there was a discrepancy with the list and requested this item be continued to the next regularly scheduled meeting. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to continue this item until November 1, 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 11. ROGER'S BINDERY (Communitv Development Commission) Redevelopment Committee Recommendation's Kenneth J. Henderson, Executive Director, Development Department, explained that Roger's Bindery indicated to staff that it could receive a loan at 18% interest if the fonn motions were approved by the Commission. He stated that the finn currently owed the Agency $56,000, not including interest and penalty charges. Mayor Minor indicated that during discussions with Rogers Bindery, Mr. Imbriani infonned the Committee that he could not pay back his loan and stressed that the Mayor and Committee review the amount of residents he employs. Mr. Henderson explained that staff was currently wOlking under the existing agreement approved by the Commission. He stated that if the motions were approved, staff would need to negotiate a deferral period with Roger's Bindery. Commission Member Obethelman asked for staffs recommendation at the Committee Meeting. Mr. Henderson indicated that staff recommended foreclosure. He summarized the previous attempts to bring Roger's Bindery current on its loan stating that notices had been sent on a regular basis. Commission Member Miller questioned the actions taken by staff if the Commission chooses to foreclose on Roger's Bindery. Mr. Henderson explained that it takes approximately 120 days to foreclose on a business. He mentioned that in most cases when businesses are faced with foreclosure, they manage to come obtain the funds necessary to pay its debts. JOINT REGULAR MEETING KJH:lmp:cmlnl0J2 COMMISSION MINUTES OCTOBER 21, 1993 .9- Commission Member Obethelman made a motion, seconded by Commission Member Pope- Ludlam to initiate foreclosure on Roger's Bindery. .., Commission Member Pope-Ludlam recommended the Commission adjoum to closed session ~ to further discuss this item. ....- Commission Member Hemandez expressed concern regarding the number of employees who worlc for Roger's Bindery and how the foreclosure would affect them. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Agency's security for the loan was the bindery's equipment. The motion failed by the following vote: Ayes: Commission Members Curlin; Obethelman; Devlin. Noes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Abstain: None. Absent: None. Commission Member Negrete recommended a time limit be placed on Motion C. Commission Member Obethelman commented on the risks to the City by continuing to support delinquent loans. Mayor Minor infonned the Commission that during a Committee Meeting, Mr. Imbriani infonned the Committee that he had paid certain elected officials to make his loan a grant. Jim Penman, City Attorney, summarized the actions and comments made by Mr. Imbriani, and also the grounds for suit against the City in reference to this item and the discussion taking place. COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 3:25 P.M. , a .... Mr. Steinhaus recommended staff worlc with Roger's Bindery to obtain infonnation regarding its business operations. COMMISSION MEMBER POPE.LUDLAM RETURNED AT 3:27 P.M. Commission Member Miller made a motion, seconded by Commission Member Obethelman, to reconsider this item. The motion carried by the following vote: Ayes: Commission Members Curlin; Hernandez; Obethelman; Devlin; Miller. Noes: Commission Members Negrete; Pope-Ludlam. Abstain: None. Absent: None. Commission Member Miller made a motion, seconded by Commission Member Devlin, to initiate foreclosure on Roger's Bindery. Commission Member Hernandez requested staff to review books and operations of Roger's Bindery and bring this item back to the next Commission Meeting with a recommendation. Commission Member Obemelman reminded the Commission that if foreclosure was initiated, there would be a time span of 120 days in which staff could review the books, employees and equipment of the bindery. -..Ii ,..... JOINT REGULAR MEETING KJH:lmp:cmlnl0J2 . 10 . COMMISSION MINUTES OCTOBER 21, 1993 r .., r L [ Mayor Minor recommended staff review others businesses of Roger's Bindery outside of San Bernardino. Commission Member Pope-Ludlam questioned staffs ability to look into the other businesses of Mr. Imbriani. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Obemelman; Devlin; Miller. Noes: Commission Member Pope-Ludlam. Abstain: Commission Member Hernandez. Absent: None. 12. PAY INCREASE FOR COMMISSION MEMBERS (Community Development Commission) Commission Member Pope-Ludlam commented on the need to make the position of Council Member more competitive. She stated that the low salary of $50.00 per month which was implemented in 1937, discourages qualified candidates to run for the position. Commission Member Pope-Ludlam spoke on the job being a full-time position and how difficult it was being a Council Member. She stated that San Bernardino had the lowest paid Council Members in the state. She recommended that a regular salary for these positions be implemented. COMMISSION MEMBER MILLER WAS EXCUSED AT 3:40 P.M. Commission Member Obemelman emphasized that the citizens who ran for election in the Fifth Ward were from a wide diversity. He noted his ability to work on the Council due to compressed work weeks and felt that the pay he received as a member of the board was adequate. Commission Member Negrete recommended that if a salary was implemented for the position and a member did not wish to receive the salary, they could donate their portion to charity. Mayor Minor indicated that the board members currently receive $9,000 a year. He stressed that if the members chose to receive $2,500 a month, it would place a burden on the Agency of $200,000. He stated that if the members wished to receive an increase they place it on the ballot for the next election and allow the citizens to vote for it. Commission Member Negrete recommended a salary be implemented in conjunction with that received from other local cities of equal size as San Bernardino, such as Riverside, Long Beach, Oceanside and Huntington Beach. Mayor Minor requested that a specific dollar figure be listed in any motion given by the Commission. He reiterated that this item be referred to the City Clerk's Office and that a Charter Amendment be requested on the June ballot for the increase of board members. Discussion ensued regarding the month for the next primary election. Commission Member Pope-Ludlam recommended that a committee be established to review the salaries of comparable cities and to prepare a charter amendment. JOINT REGULAR MEETING KJH:lmp:cmlnl0j2 COMMISSION MINUTES OCTOBER 21, 1993 - 11 - Commission Member Negrete made a motion, seconded by Commission Member Curlin, that the salary for Council Members be set at $2,300 a month, and that the salary for the Commission remain the sam e. ,., Commission Member Pope-Ludlam made a substitute motion, seconded by Commission Member Miller, to re-activate the charter to review and complete all changes necessary regarding a salary for the Council. .~ . ..... Discussion ensued regarding the members of the charter. COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:10 P.M. COMMISSIOr.j MEMBER CURLIN RETURNED AT 4:11 P.M. Commission Member Pope-Ludlam made a substitute motion, seconded by Commission Member Hernandez, to refer this item to the Redevelopment Committee. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Oberhelman; Devlin. Abstain: Commission Member Curlin. Absent: None. COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:14 P.M. RS-l. POLICY FOR SELECTING VENDORS THAT APPLY FOR RFO (Communitv Development Commission) , ...J Councilman Hernandez's Recommendation Commission Member Hernandez expressed disappointment with the selection of vendors for the State Building. He felt the local vendors were excluded from participating in this project. He proposed a fonnula for the selection of local vendors. COMMITTEE MEMBER POPE-LUDLAM WAS EXCUSED AT 4:16 P.M. Commission Member Devlin agreed that local vendors should receive priority but stated that they would still need to be qualified for the project. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 4:18 P.M. Commission Member Oberhelman questioned the defInition of local vendors. Commission Member Miller stressed the need to hire qualified vendors for this project. She stated that if the qualifications were equal between the local and the outside vendor, the local vendor should be selected. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 4:20 P.M. Commission Member Pope-Ludlam expressed concern regarding local vendors not being selected for this project. ~ ) '--' JOINT REGULAR MEETING KJH:lmp:cmlnIOJ2 - 12 - COMMISSION MINUTES OCTOBER 21, 1993 [ r L [ COMMISSION MEMBER CURLIN RETURNED AT 4:21 P.M. Discussion ensued regarding the selection process for hiring vendors for the State Consolidated Offices. It was noted that both Commission Member Negrete and Commission Member Miller serve on the board. COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:24 P.M. Commission Member Hernandez questioned the Staubach Company's role in this project. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Committee selected for the State Offices had met on several occasions. He revealed that not all local vendors applied for this project and stated that only one (1) local vendor was selected as one of the top five (5). Mr. Steinhaus requested clarification from the Commission as to what they considered a local vendor. He explained that many vendors have small offices in the City, but indicated that their main headquarters was located in other cities. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 4:26 P.M. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 4:27 P.M. Mayor Minor concurred with Mr. Steinhaus emphasizing that many vendors have their banks and corporate headquarters outside of San Bernardino. Commission Member Negrete explained the actions taken place by the State Offices Committee in reference to the selection of vendors. COMMISSION MEMBER OBERHELMAN RETURNED AT 4:34 P.M. Kenneth J. Henderson, Executive Director, Development Department, explained that when the Staubach Company contacted the five (5) finalists for the project, they were infoDIled that MBE/WBE and local vendors were important issues with the City of San Bernardino. Greg Villanuava, 330 North "0" Street, San Bernardino, indicated that he was a local architect in the City and that he had submitted a proposal for this project. He briefed the Commission on previous projects he completed which included the Feldhym Library. He stated that he had invested approximately $300,000 in taxes in the City and that he has held a City business license since 1983. Mr. Villanuava spoke on the lack of development within the City for the past 13 years. He questioned the Commission's process of selection for this project. Commission Member Miller expressed concem regarding the infoDIlation requested by Mr. Villanuava being of confidential nature. James Penman, City Attomey, confiDIled that this infoDIlation should not be discussed. Mayor Minor commented that the Committee for the State Offices was selected to deal with these issues. JOINT REGULAR MEETING KJH:lmp:cminIOJ2 COMMISSION MINUTES OCTOBER 21, 1993 - 13 - Discussion ensued regarding the definition of a "local" vendor and the tenns for hiring a local vendor. ...., Mr. Steinhaus suggested each Commission Member provide him with their defmition of a .~ local vendor, and he would compile each of them and bring it to the Commission for its review in two .... (2) weeks. Commission Member Negrete recommended that two (2) local companies be intetviewed for this project and added to the short list of five (5) architectural finns. Commission Member Miller suggested that the entire Committee be involved with that decision. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:05 P.M. Mr. Penman expressed concem regarding the Commission deviating from nonnal procedure for this type of activity. COMMISSION MEMBER OBERHELMAN RETURNED AT 5:07 P.M. Commission Member Negrete made a motion, seconded by Commission Member Pope- Ludlam, that the State Consolidated Office and Caltrans Building Proposal (Super-Block) Committee be requested to intetview the two local companies. The motion carried by the following vote: Ayes: Commission Members Negrete; Hemandez; Obemelman; .Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: Commission Member Curlin. ,., ~ ~ ...,Jj COMMISSION MEMBER NEGRETE WAS EXCUSED AT 5:09 P.M. NB-l ARROW VISTA LANDSCAPE AND SECURITY (Community Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Hemandez, that the need to take action on this item arose after the posting of the Agenda. The motion carried by the following vote: Ayes: Commission Members Hemandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Members Negrete; Curlin. Kenneth J. Henderson, Executive Director, Development Department, explained that the landscape and security agreement for setvices at the Arrow Vista Housing project expired at the end of the month. He requested the Commission approve an extension to continue the $20,000 a month setvices. Commission Member Obemelman made a motion, seconded by Commission Member Pope- Ludlam, to extend the security and landscape maintenance setvices for the Arrow Vista Housing project for ninety (90) days. ~ -.oJ JOINT REGULAR MEETING KJH:lmp:cmlnl0J2 - 14 - COMMISSION MINUTES OCTOBER 21, 1993 [ r L [ The motion carried by the following vote: Ayes: Commission Members Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Members Negrete; Curlin. RS-2. AD.JOURN TO CLOSED SESSION At 5:13 pm. the Mayor and Common Council and Community Development Commission recess to Closed Session for the following: A. to confer with the attorney regarding pending litigation which has been initiated fODllally to which the Commission is a party pursuant to Government Code Section 54956.9(a) as follows: B. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b)(1), as there is significant exposure to litigation; C. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(c), so that the Commission may decide whether to initiate litigation; D. to give instruction to the Commission's negotiator on the purchase of property pursuant to Government Code Section 54956.8. The real property which the negotiations concern is generally located at: E. to consider personnel matters pursuant to Government Code Section 54957. RS-3 ADJOURNMENT At 5:35 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, November 1, 1993 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: ~~ KENN TH J. NDERSON Executive Directorl Secretary to the Commission JOINT REGULAR MEETING KJH:lmp:cmlnl0j2 COMMISSION MINUTES OCTOBER 21, 1993 - 15 - ..., .ij ~ ....." , ..J I I i -.J [ r L [ .1 MAYOR AND COMMON COUNCa AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING November 1, 1993 11:00 8.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Cham bers, City Hall, 300 North "D" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately 11:01 am., on Monday, November 1, 1993 . ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David OberlIelman; Jerry Devlin; and Valerie Pope-Ludlam. Absent: Commission Member Norine Miller. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; James Penman, City Attorney; Lorraine Velarde, Executive Assistant to the Mayor. Phil Arvizo, Executive Assistant to the Council; Ernie Wilson, Affinnative Action, Mayor's Office; Rachel Clark, City Clerlc; Suzanna Cordova, Deputy City Clerlc; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. The Commission Members requested that items numbered "2" and "3" be removed from the Consent Calendar. Commission Member Devlin made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items numbered "1" through "4" be adopted, except for items numbered "2" and "3". The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; OberlIelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. REGULAR MEETING KJH:lmp:cminl1rl 1 COMMISSION MINUTES November 1, 1993 Public Works Department 1. ADVERTISE FOR BIDS - RICHARDSON STREET STORM DRAIN --, (Mayor and Common Council) .....il Commission Member Devlin made a motion, seconded by Commission Member Hemandez, that the plans for the installation of a stoon drain in Richardson Street, from Davidson Street to Mission Zanja Channel, per Plan No. 8854, be approved and that the Director of Public Works/City Engineer be authorized to advertise for bids. The motion caqjed by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; OberlIelman; Devlin; Pope-Ludlmn. Noes: None. Abstain: None. Absent: Commission Member Miller. Development Department 4. FY19~3/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEJ\'fENT BETWEEN THE CITY AND SALVATION ARMY - SAN BERNARDINO CORPS (Mayor and Common Council) Council Member Devlin made a motion, seconded by Council Member Hemandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-412 -.. j ...,ttM RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SALVATION ARMY - SAN BERNARDINO CORPS. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hemandez; OberlIelman; Devlin; Pope-Ludlmn. Noes: None. Abstain: None. Absent: Councilwoman Miller. ~ REGULAR MEETING KJH:lmp:cminllrl 2 COMMISSION MINUTES November 1, 1993 -..J [ [ r y '- . 1 Public Works Department 2. REJECTION OF BIDS. LANDSCAPE MEDIAN IMPROVEMENTS ON WATERMAN AVENUE (Community DevelQpment Commission) Commission Member Pope-Ludlmn questioned the cost of this item to the homeowners. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item would pose no cost to the homeowners. Commission Member Devlin made a motion, seconded by Commission Member Hemandez, that all bids for landscape median improvements in Watennan Avenue be rejected and that the Director of Public WOlk.s/City Engineer be authorized to re-advertise for bids in accordance with the revised Plan No. 8966. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlmn. Noes: None. Abstain: None. Absent: Commission Member Miller. Fire/Disaster Preparedness 3. APPROVAL OF CONTRACT CHANGE ORDER #1 INSTA~LATION OF EARTHOUAKE RESISTANT BRACING SYSTEM. PER EDA.93.0003 STABILIZER SYSTEMS. INC. (Mayor and Common Council) Councilman Obemelman questioned the selection process used for the selection of the additional five (5) mobilehomes. Kenneth J. Henderson, Executive Director, Development Department, indicated that a resident must be at or below low income levels in order to receive assistance. He stated that a list was generated identifying all residents who met the qualifications and that assistance is granted on a first come, first serve basis. Commission Member Obemelman made a motion, seconded by Commission Member Negrete, to approve Change Order #1 to the Contract with Stabilizer Systems, Inc., to install an additional five (5) mobilehomes Earthquake Resistance Bracing Systems (ERBS) in various mobilehomes within the City of San Bernardino. The motion carried by the following vote: Ayes: Council Members Negrete: Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Councilwoman Miller. END OF CONSENT CALENDAR REGULAR MEETING KJH:lmp:cminllr1 COMMISSION MINUTES 3 November I, 1993 Continued from October 21. 1993 (Communitv Development Commission) ~ ~ W1JI 5. ARROW VISTA HOUSING DEVELOPMENT PROJECT Redevelopment Committee Recommendations Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, that the following motions be approved and adopted: That the Community Development Commission authorize Councilwoman Pope-Ludlam to work with the Agency Administrator and Dukes-Dukes and Associates for the pwpose of removing the existing Small Business Administration (SBA) lien recorded against the Arrow Vista project. That the Community Development Commission allow Dukes-Dukes and Associates to remain as a principal in the Arrow Vista project and to proceed expeditiously with marketing activities and the sale of existing Arrow Vista project standing inventory. That staff and Dukes-Dukes and Associates utilize the San Bernardino Community Hospital list of interested employees as a point of departure in the marketing and sale of the existing Arrow Vista project standing inventory. Commission Member Pope-Ludlam pointed out that John Dukes, Dukes - Dukes and ,..... Associates were working diligently to sell the Arrow Vista Homes. She indicated that he already had '., approximately ten (10) homes in escrow. .... Commission Member Obemelman asked if staff had a list of the names of people who are in escrow. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Agency did not have a list, and added, Mr. Dukes indicated he was utilizing the list received from Community Hospital. Commission Member Pope-Ludlam indicated that the original list from the hospital was lost and because it had to be re-established, a delay resulted in the sale of the homes. Commission Member Obemelman summarized past difficulties with the Dukes-Dukes organizations. He stated that regardless of whether or not the homes are sold, it would have nothing to do with the debt relationship between Dukes-Dukes and the Agency. Mr. Steinhaus noted that the Agency was in the same position it was in two months ago. REGULAR MEETING KJH:lmp:cminl1rl 4 COMMISSION MINUTES November 1, 1993 -, i 1 .....J [ Commission Member Oberhelman emphasized actions taken by the Commission approximately one (1) year ago when the developer was given additional funds for the project. He indicated that he provided the Commission Members a report, completed by Mr. Gene Wood, Consultant, regarding the continuing assistance to Dukes-Dukes. He further noted that the report clearly stated that the developer should be denied additional assistance. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to continue the item until 2:00 pm. to allow the developer to be present to speak. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hemandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. 6. ARROW VISTA - CHRONOLOGY OF EVENTS (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to continue this item until 2:00 pm. to allow the developer to be present to speak to this item. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hemandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission r Member Miller. ~ Alency Administration 7. ROGER'S BINDERY (Communitv Development Commission) Councilwoman Pope-Ludlam's Recommendation Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam to reconsider actions taken with respect to Roger's Bindery on October 21, 1993. The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None. Absent: Commission Member Miller. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to reconsider this item. [ Commission Member Obethelman expressed concern regarding the Commission attempting to reconsider an item that has already failed. REGULAR MEETING KJH:lmp:cminllr1 5 COMMISSION MINUTES November 1, 1993 Discussion ensued regarding the ability to discuss this item in closed session. Mr. James Penman, City Attorney, indicated that the Commission could discuss the item under pending litigation. ,., .Jj I ..., Commission Member Curlin made a motion, seconded by Commission Member Hernandez, to adjourn to closed session. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin. Abstain: None. Absent: Commission Member Miller. CLOSED SESSION 9. AD (OURN TO CLOSED SESSION At 11 :29 a.m. the Mayor and Common Council and the Community Development Commission adjourned to closed session to discuss the following: B. To confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b)(1), as there is significant exposure to litigation. At 11:58 a.m. Mayor Minor made an announcement that the issues concerning Roger's Bindery were not resolved and that the Commission would recess until 2:00 pm. He noted for the audiences infonnation that the issue of Roger's Bindery mayor may not be brought up for discussion in the afternoon session. .... M I Jim Lynas, Citizen, questioned whether or not he would be given the opportunily to speak to ....,. this item at the afternoon session. Mayor Minor infonned him that he would only be allowed to speak if the item was reconsidered. MEETING AD (OURNED At 11:58 a.m. the meeting of the Mayor and Common Council and the Community Development Commission was adjourned until 2:00 pm. MEETING RECONVENED At 2:58 pm., the meeting of the Mayor and Common Council and the Community Development Commission was called to onler. ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. ....., i j REGULAR MEETING KJH:lmp:cminl1rl 6 COMMISSION MINUTES November 1, 1993 - [ r L r I ~ .. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Jim Penman, City Attorney; Dennis A. Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Ernie Wilson, Affinnative Action Officer; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerl<:.; Suzanna Cordova, Deputy City Clerl<:.; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. Development Department 5. ARROW VISTA HOUSING DEVELOPMENT PRO fECT (Communitv DevelQpment Commission) Redevelopment Committee Recommendations Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was held over to the afternoon session to allow the developer the opportunity to speak. Commission Member Miller questioned the small business loan listed in the Chronology of Events and the status of that loan. Mr. Steinhaus explained that the small business loan was a federal loan and that the Agency had no involvement in it. John Dukes, 1875 West Highland Avenue, San Bernardino, stated that as of Sunday, October 31, there were nine (9) applicants who were deemed eligible to purchase a home based on income submitted applications and checks for escrow. He explained that an additional nine (9) applicants who previously "fell-out" of escrow were being re-intetviewed to detennine their qualification for assistance through the Mortgage Assistance Program (MAP). He further stated that residents of the Dorjil Apartments were also being screened to detennine their qualifications for an Arrow Vista Home. He speculated that, given the proper program, home sales could increase to approximately 4 - 7 homes per month. Mr. Dukes explained that the SBA lien against his property was a result of a loan that he co- signed in 1981 that went to judgement. He stated that the interest rate on the SBA loan was being reduced from 11.5% to 6.5% to allow them a better opportunity to repay the loan. Commission Member Obemelman asked what were the number of homes actually in escrow. Mr. Dukes stated that there were two (2) homes in escrow. REGULAR MEETING KJH:lmp:cminllrl COMMISSION MINUTES November 1, 1993 7 Commission Member Curlin asked the am ount of time the homes have been on the market. Mr. Dukes responded that although the homes had been on the market for 18 months, they had gone through several different sales program s. He also stated that the lower the interest rate, the tougher it was for applicants to actually purchase the homes. Discussion ensued regarding the refmancing of Dorjil Estates. Commission Member Negrete asked about the list from Community Hospital of interested homebuyers. Mr. Dukes indicated that of the list of 15 mmes, only one (1) person actually qualified for home ownership based on income. Commission ME411lber Oberhelman asked what was the amount of money owed to the Agency from Dukes-Dukes and Associates and the effect the homes sales would have on that amount. Mr. Steinhaus explained that the total amount owed to the Agency was $5.6 million. He indicated that if all the homes in Arrow Vista were sold, the amount paid back to the Agency through sales would be the land and construction loan costs. He stated that the sewer costs and business reorganization loan would have to be repaid with other funds. Mr. Steinhaus noted that if the Agency took over the project, they would be repaid the same amount minus a sellers fee. Kenneth J. Henderson, Executive Director, Development Department, stated that the land acquisition cost to the Agency was $1.9 million. Commission Member Hernandez gave a brief history on this item and included activities that took place with the previous developer, Mr. Clyde Alexander. Mr. Dukes stated that during the second phase of a housing project, it is best to move individuals into their homes as group at a time. Commission Member Pope-Ludlam voiced concern about the special circumstances regarding development in the west side of San Bernardino. Discussion ensued regarding the sale of the Arrow Vista Homes and the qualifications of the Mitchell Company to complete this task. COMMISSION MEMBER MILLER WAS EXCUSED AT 3:35 P.M. Mr. Henderson summarized the Chronology of Events emphasizing that the $20,000 a month security and landscape costs was necessary due to vandalism that has previous occurred to the homes. Commission Member Hernandez stated that if the Agency takes over the project, there would be no cost savings. COMMISSION MEMBER MILLER RETURNED AT 3:40 P.M. Mayor Minor discussed previous assistance given to the developer of this project. He suggested the sale price of the homes be reduced to increase sales. REGULAR MEETING KJH:lmp:cminllrl 8 COMMISSION MINUTES November 1, 1993 -, if P I """'" ., I ...." ., ~ i ~ ...",. [ r t \..", [ Commission Member Obethelman recommended the developer agreement between the Agency and the developer be tenninated. Mr. Steinhaus stated that there were no plans to lower the prices of the homes, only to provide assistance in lhe fonn of a silent second mortgage not-to-exceed $25,000. He explained that if tbe sales price was reduced by $10,000, those funds would never be recaptured; however, if a silent second was given for $10,000, it would benefit lhe homeowner by allowing them to qualify for the home and also maintain market value. Mr. Dukes made additional comments regarding the Arrow Vista Homes and also the Westside of San Bernardino. Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that the Arrow Vista Housing Development Project be continued and re-evaluated at the fIrst meeting in January 1994. Commission Member Curlin questioned the sincerity of the applicants for Arrow Vista Homes. Mr. Dukes explained that he was thoroughly screening the applicants to make sure they were sincere about the pun:hase of a home. He felt confIdent lhat approximately 75% of the comments in applications he had received to date were candid. The motion carried by tbe following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Curlin; ObedIelman; Devlin. Abstain: None. Absent: None. 6. ARROW VISTA. CHRONOLOGY OF EVENTS (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to receive and fIle the attached staff report and Chronology related to the Arrow Vista Project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObedIelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: None. REGULAR MEETING KJH:lmp:cminllrl COMMISSION MINUTES November 1, 1993 9 Aeencv Adminifltration (Communitv DevelQpment Commission) -, ~ I ...... 7. ROGER'S BINDERY Councilwoman Pope-Ludlam's Recommendation Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludllm to reconsider actions taken with respect to Roger's Bindery on October 21, 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None. Absent: None. Bob Forrest, Chief Financial Officer, Roger's Bindery, stated that the bindery had taken many steps to improve its financial position. He noted that the bindery had complied with all agreements needed to put its financial packet together. Mr. Forrest explained that although the bindery had a 27-year relationship with the community and made a major turn-around with its finances, the recent foreclosure action by the City has caused major problems between the bindery and its customers. Mr. Forrest noted that approximately 726 employees worked for the bindery and he felt an obligation to keep them employed. He stated that the Company needs the foreclosure action to cease J.. ...... in order to obtain approval of a pending financial package. He requested that the City consider .. Roger's Bindery history of being in the community for 27 years and grant a reprieve. Mayor Minor pointed out that originally, during the Ad Hoc Committee Meetings, the Agency subordination of its loan to allow the bindery to obtain another loan was discussed. However, it has been revealed that the Agency currently holds second position on its loan therefore no subordination is needed. Mayor Minor questioned the collateral used for each loan and also the ability of the bindery to repay the City. Mr. Forrest stated that the bindery's equipment was used for each loan obtained. He explained that the bindery would like to request a partial reprieve for interest payments made to the City, for approximately $240,000, with the balance to be amortized over a 10 year period. Commission Member Curlin asked if the bindery was having difficulties with any other taxing agents. Mr. Forrest stated that the City and also the taxing agents. He noted that the bindelY owed the taxing agents due to non-payment of payroll taxes. He explained that the agents were willing to work with them. REGULAR MEETING KJH:lmp:cminllrl 10 COMMISSION MINUTES November 1, 1993 l ...J [ Commission Member Miller questioned the projected actions of the Agency in the event the bindery is foreclosed. Mr. Steinhaus explained that staff had not had sufficient time to devise a plan of action. He stated that due diligence had just begun by having a consultant review the bindery's finances. Dennis A. Barlow, Senior Assistant City Attorney, agreed that additional time was needed to research the Agency's position, and plan a of action. Commission Member Negrete emphasized on the need to receive all pertinent infonnation surrounding this item before foreclosure is initiated. Commission Member Curlin asked what was the number of businesses owned by Mr. Imbriani and the total full-time employees he employs. Mr. Forrest stated that there were binderies located in San Bernardino, Colton, San Francisco and a Mexicali Facility in Mexico. He stated that approximately 200 of all employees were full-time. Jim Lynas, t 160 Sinora, San Bernardino, recommended an audit be done on the businesses to detennine the actual amount of full-time and part-time employees. He also recommended that a complete inventory be taken of the business. Commission Member Hernandez noted that the Bindery had been having difficulties since 1985; however, it has been able to maintain a $10 million payroll. r ; Mr. Forrest explained that its revenues from the Bindery were 50 cents on each dollar earned '-- which went towards payroll, 15% benefits, 10% materials and 20% utilities and rent. Mr. Forrest discussed the payroll taxes owed by the Bindery. He explained that payment arrangements had been made to payback those funds. Commission Member Pope-Ludlam expressed a need to investigate the Bindery more in depth before initiating foreclosure. Mr. Steinhaus stated that staff could bring this item back to the Commission in two (2) weeks with additional infonnation. Mr. Forrest revealed that the Bindery could not delay the banks decision to fund the loan for an additional two (2) weeks. He asked that the Commission rescind the foreclosure to enable them to receive the loan. He said that, if needed, the Bindery would file for Chapter 11 and Mr. Imbriani would still continue to run the operation. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 4:45 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 4:46 P.M. Commission Member Negrete recommended that Motions B and C be approved. r ..... REGULAR MEETING KJH:lmp:cmin11r1 11 COMMISSION MINUTES November 1, 1993 Commission Member Pope-Ludlmn stated that nonnally when employers have that many employees in the City, they are rewarded in some way. .., " , Commission Member Oberllelman spoke about the negative messages being sent to taxpayers regarding this item. He also stressed the seriousness of not paying payroll taxes. j ... Jim Penman, City Attorney, discussed the motions listed and gave direction to the Commission on the proper motions needed to rescind the foreclosure action. Commission Member Negrete made a motion, seconded by Commission Member Pope- Ludlmn, to rescind the foreclosure action on Roger's Bindery. The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludhm. Noes: Commission Members Curlin; Oberllelman; Devlin; Miller. Abstain: None. Absent: None. Discussion ensued regarding the direction of staff regarding Roger's Bindery. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to reconsider this item. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlmn; Miller. Noes: Commission Members Curlin; Oberllelman; Devlin. Abstain: None. Absent: None. Commission Member Miller made a motion, seconded by Commission Member Hernandez, that the foreclosure proceedings e rescinded; and that the matter be continued to November 15, 1993. --. ,j n ...I The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Devlin; Pope-Ludlmn; Miller. Noes: Commission Members Curlin; Oberllelman. Abstain: None. Absent: None. 8. ROGER'S BINDERY. CHRONOLOGY OF EVENTS (Communitv Development Commission) Commission Member Oberllelman made a motion, seconded by Commission Member Pope- Ludlmn, to receive and file the attached staff report and Chronology related to Rogers Bindery. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hemandez; Pope-Ludlmn; Miller. Noes: Commission Members Oberllelman; Devlin. Abstain: None. Absent: None. -., REGULAR MEETING KJH:lmp:cminllrl 12 COMMISSION MINUTES November 1, 1993 ......, r '-' ",.-. j j ~ [ CLOSED SESSION 9. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. 10. ADJOURNMENT At 5:10 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, November 15, 1993 at 11:00 aJIl., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. Respectfully submitted: REGULAR MEETING KJH:lmp:cmin11r1 COMMISSION MINUTES November 1, 1993 13 ~ -.J .. " ',~ .....J ,...., ! I I .....; [ [ [ MA YOR AND COMMON COUNCIL COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO MINUTES JOINT REGULAR MEETING November 15, 1993 11:00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 11:03 am., on Monday, November 15, 1993, in the Council Chambers, City Hall, 300 North "0" Street, San Bemardino, California. ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obemelman; Jerry Devlin; Norine Miller. Absent: Commission Member Pope-Ludlam. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Jim Penman, City Attorney; Shauna Clark., City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Ernie Wilson, Affionative Action; Phil Arvizo, Executive Assistant to the Council; Rachel Clark., City CleIk; Diane Jones, Deputy City CleIk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. PUBLIC COMMENTS NOT ON THE AGENDA Jeff Wright, P. O. Box 2341, San Bernardino, made comments in reference to the Platt Building remnants that were located on the Platt Building site. He discussed the asbestos that was left out in the open and how the wind was blowing it throughout the City. He infonned the Commission that he was in the process of filing litigation against the City due to the medical hazards of those remnants. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 1l:04 A.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 11:05 A.M. Mr. Wright indicated that certain Commission Members were not in favor of demolishing the Platt Building. He said that he would also initiate litigation against the City for not allowing the historic preservation task fooce complete its investigation prior to the demolition of the building. JOINT REGULAR MEETING KJH:lmp:cminllj2 COMMISSION MINUTES NOVEMBER 15, 1993 - 1 - COMMISSION MEMBER POPE.LUDLAM ARRIVED AT 11:07 A.M. CONSENT CALENDAR The Commission Members requested that items nwnbered "3", "5", "7" and "10", be removed from the Consent Calendar. Commission Member Miller made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items nwnbered "1" through "10" be adopted except for items numbered "3", "5", "7" and "10", ~spectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Communitv Development Commission) Commission Member Miller made a motion, seconded by Commission Member Hernandez, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of October. 21, 1993, be approved as submitted in typewritten fODD. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 2. REDEVELOPMENT COMMITTEE MINUTES (Communitv Development Commission) Commission Member Miller made a motion, seconded by Commission Member Hernandez, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of October 28, 1993 be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 - 2 - COMMISSION MINUTES NOVEMBER 15, 1993 ~ f ....,; , ....JIJ ] [ r- ~ r- I' ! ~ Public Works Department 4. ADVERTISE FOR BIDS. MODIFICATION OF INTERCEPTOR SEWER AT MACY STREET AND BLAKE STREET (Mayor and Common Council) Councilman Miller made a motion, seconded by Councilman Hernandez, that the plans for modification of interceptor sewer at Macy Street and Blake Street, in accordance with Plan No. 9016, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; OberlIelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 6. PUBLIC HEARING FOR HUD 108 LOAN APPLICATION. WEST SIDE PLAZA (Mayor and Common Council) Councilman Miller made a motion, seconded by Councilman Hernandez, to establish December 6, 1993 at 11:00 am., as the date and time for a Public Hearing regarding the submission of a U.S. Housing and Urban Development Department (HUD) Section 108 Loan Application for the West Side Plaza Project. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; OberlIelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 8. HOMELESS SHELTER UTILITY ASSISTANCE PROGRAM (Community Develo,pment Commission) Commission Member Miller made a motion, seconded by Commission Member Hernandez, to appropriate $3,200 in Twenty Percent (20%) Set-Aside monies to provide utility assistance payments to Smnaritan Social Services through June 30, 1994, and that the Chainnan and Executive Director be authorized to execute all documents necessary to effectuate this transaction. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; OberlIelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 COMMISSION MINUTES NOVEMBER 15, 1993 - 3 - 9. HOUSING DIVISION OUARTERLY ACTIVITY REPORT lCommunitv Develo9ment Department) ,..., Commission Member Miller made a motion, seconded by Commission Member Hernandez, to ..,.".,J receive and file the attached Housing Division Quarterly Activity Report for the months of July through September, 1993. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Public Works Department 3. AWARD OF CONTRACT. NEW TENANT IMPROVEMENTS 5055 HALLMARK PARKWAY (Mayor and Common Council) other. Councilman Oberhelman asked if this item and Item Number 5 were in conjunction with each Kenneth J. Henderson, Executive Director, Development Department, indicated that the two items were unrelated and that this item was related to the Don's Electric tenancy. .... ~ 1J t~ ...II Council Member Oberhelman made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-425 RESOLUTION OF THE CITY OF SAN BERNARDINO A WARDING A CONTRACT TO BILTMORE CONSTRUCTION CORPORATION FOR INSTALLATION OF NEW TENANT IMPROVEMENTS AT 5055 HALLMARK PARKWAY. Jeff Wright, P. O. Box 2341, San Bernardino, indicated that items numbered "3" and "5" were in conflict with each other and felt the City should stop subsidizing businesses and allow them to stand on their own. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam.; Miller. Noes: None. Abstain: None. Absent: None. ~ ....., JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 - 4 - COMMISSION MINUTES NOVEMBER 15, 1993 5. LEASE SUBSTITUTION. 5055 HALLMARK PARKWAY [ (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Obemelman, to authorize the Executive Director to execute a lease and all other necessary documents for a substitution of lessee at Suites A and B of 5055 Hallm8Ik P8Ikway involving current lessee, Northcutt Manufacturing, and proposed lessee, Riverside Civic Light Opera. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Miller. Noes: Commission Member Pope-Ludlam. Abstain: None. Absent: None. 7. ALLAN STEWARD LOAN AMENDMENT REOUEST (Community Development Commission) Commission Member Obemelman questioned the need to extend the loan granted to Mr. Steward and also the amount of Mr. Stewards own money used to finance this project. , Kenneth J. Henderson, Executive Director, Development Department, indicated that approximately $350,000 of Mr. Stewards money was used for this project. He explained that his bank was taken over by the Federal Deposit Insurance COlporation (FDIC) and infonned Mr. Steward that it r- would need to evaluate his loan before continuing to disburse the loan proceeds. f II..... Mr. Henderson stated that Mr. Steward is planning to refmance his loan within the next three (3) to four (4) months and, at that time, will pay the Agency the complete balance of the loan. Commission Member Obemelman asked if Mr. Steward was current with his other obligations. Mr. Henderson explained that in the past, he has always fulfilled his obligations. Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to grant an. extension of one year for an existing Third Trust Deed loan to Mr. Allan Steward subject to the tenns described in the attached staff report. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Obemelman. Abstain: None. Absent: None. 10. MOBII.E HOME CONVERSION PROGRAM WORKSHOP (Communitv Development Commission) [ Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to establish December 6, 1993 at 12:00 noon as the date and time certain for the conducting of a workshop regarding the City's Mobile Home Conversion Program. JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 .5. COMMISSION MINUTES NOVEMBER 15, 1993 Jeff Wright, P. O. Box 2341, indicated that he pulled this item off the consent calendar so that the public would be infonned of the wotkshop taking place at the next scheduled meeting. .., The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin;M Hernandez; Oberhelman; Devlin; Pope-Ludlan; Miller. Noes: None. Abstain: None. Absent: ...J None. END OF CONSENT CALENDAR 11. ACOUISITION OF 184 SOUTH "E" STREET (Mayor and Common Council) Kenneth J. Henderson, Executive Director, Development Department, explained that this item was discussed in Closed Session and that staff was authorized to negotiate the acquisition of this parcel with Goodwill Industries. Councilman Hernandez stated that it was his understanding that the property in question was to be used for a baseball field. He indicated that he was infonned that the representatives for the ball- field were in negotiations with the Orange Show for property it owns. Councilman Hernandez questioned the cost paid for the Hmmon Motors property. -.. I ...., Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he would provide the amount paid for the Hmmon Motors property this afternoon. Discussion ensued regarding the role and function of the Economic Development Agency. COUNCILWOMAN POPE-LUDLAM WAS EXCUSED AT 11:22 A.M. Councilman Hernandez discussed briefly a law going into effect at the beginning of the year that would put restrictions on the ability of redevelopment agencies to pun:hase property. Mayor Minor clarified comments made by Councilman Hernandez indicating that the new law would not have anything to do with pun:hasing property. He said a fonnal report regarding the pun:hase of the ball-field property will be made on December 6, 1993. Jeff Wright, P. O. Box 2341, San Bemardino, spoke on the property being considered for the ball-field. Councilman Devlin made a motion. seconded by Councilman Cm-Iin, that the following resolution be approved and adopted: ~ ! I ....."J JOINT REGULAR MEETING KJH:lmp:cmlnllj2 - 6 - COMMISSION MINUTES NOVEMBER 15,1993 [ r L [ RESOLUTION NUMBER 93-426 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO REDEVELOPMENT AGENCY. The motion carried by the following vote: Ayes: Council Members Curlin; Oberhelman; Devlin; Miller. Noes: Councilman Hernandez. Abstain: Councilman Negrete. Absent: Councilwoman Pope-Ludlmn. (Community Development Commisdon) Commission Member Devlin made a motion, seconded by Commission Member Curlin, that the following resolution be approved and adopted: RESOLUTION NUMBER 5381 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINA nONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO REDEVELOPMENT AGENCY. Commission Member Devlin made a motion, seconded by Commission Member Curlin, to approve the acquisition of 184 South "E" Street; that the Executive Director be authorized to execute all documentation necessary for said acquisition; also, that the Economic Development Agency Development Department budget be increased accordingly. The motion carried by the following vote: Ayes: Commission Members Curlin: Oberhelman; Devlin; Miller. Noes: Commission Member Hernandez. Abstain: Commission Member Negrete. Absent: Commission Member Pope-Ludlmn. 12. JERSEY'S SPORTS BAR - ALL-INCLUSIVE TRUST DEED (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, stated that approval of this item would allow for a transfer of title for this property. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to approve the transfer and placement of an all-inclusive trust deed on the property occupied by Jersey's Sports Bar; said all-inclusive trust deed to be in a position junior to the Agency's existing trust deed; also, that the Executive Director be authorized to execute any documents necessmy to effectuate said transaction. Mr. Henderson explained that approval of this item would not increase the Agency's risk. JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 - 7 - COMMISSION MINUTES NOVEMBER 15, 1993 Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the Agency owning the Jersey's Sports Bar. ~ Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Agency's involvement with the Sport Bar was only a loan guarantee. .....J The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Commission Member Pope-Ludlam. 13. REVIT ALIZA lION PLAN FOR THE 40TH STREET SHOPPING CENTER (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Miller, to approve funding for the development of a revitalization plan for the 40th Street Shopping Center in an amount not to exceed $45,000 with C & B Enterprises or another selected fInn (in the event that the approved professional services agreement is not executed by C & B Enterprises). Commission Member Hernandez made a motion, seconded by Commission Member Miller that the following resolution be approved and adopted: RESOLUTION NUMBER 5382 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE STATE COLLEGE REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO REDEVELOPMENT AGENCY. ,., J (Mayor and Common Council) Councilman Hernandez made a motion, seconded by Councilwoman Miller, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-427 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE STATE COLLEGE REDEVELOPMENT PROJECT AREA OF THE SAN BERNARDINO REDEVELOPMENT AGENCY. Commission Member Obethelman questioned the selection of C&B Enterprises for this project. Kenneth J. Henderson, Executive Director, Development Department, explained that the finn was recommended based on its familiarity with the area and also, with its experience in revitalization. ,., .~ I .....J JOINT REGULAR MEETING KJH:lmp:cminllJ2 - 8 - COMMISSION MINUTES NOVEMBER 15, 1993 r \... ,... L [ COMMISSION MEMBER POPE-LUDLAM RETURNED AT 11:31 A.M. Mr. Henderson indicated that originally, this revitalization plan was a 50/50 effort between the Agency and the property owners; however, due to a lack of participation, the Agency would now be fmancing the entire project. He explained that the plans for the project would not exceed $45,000. Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the cost for a consultant. Mayor Minor indicated that the funds paid to the consultant would be to develop a plan for the entire 40th Street Shopping Center. Motions A & B carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None Motion C carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None 14. YOUNG HOMES OF CALIFORNIA (Communitv Development Commission) Commission Member Oberllelman made a motion, seconded by Commission Member Hernandez, to approve the attached Owner Participation Agreement (OPA) with Young Homes which provides for the development of thirty-six (36) high quality single-family detached homes. Further, that the Commission allocate to this project $200,000 in previously approved Fiscal Year 93-94 low/mod housing set-aside funds and authorize the Chainnan and Executive Director to execute any document necessary to effectuate said transaction. Commission Member Hernandez indicated that $200,000 was allocated for this project, however, only $180,000 was needed. Mayor Minor recommended changing the motion to read $180,000 instead of $200,000. Commission Member Oberllelman made a substitute motion, seconded by Commission Member Hemandez, to approve the attached Owner Participation Agreement (OPA) with Young Homes which provides for the development of thirty-six (36) high quality single-family detached homes. Further, that the Commission allocate to this project $180,000 in previously approved Fiscal Year 93-94 low/mod housing set-aside funds and authorize the Chainnan and Executive Director to execute any document necessary to effectuate said transaction. Commission Member Miller discussed the high quality of Young Homes and felt it would not be a proper use of 20% set-aside funds to assist this project. Commission Member Curlin expressed concern regarding the selling of homes in these economic conditions. JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 - 9 7 COMMISSION MINUTES NOVEMBER 15, 1993 Kenneth J. Henderson, Executive Director, Development Department, stated that a market feasibility study showed that the homes in that area could be sold. He explained that the Mortgage Assistance Program (MAP) would also be an asset with the selling of those homes. --, .~ 'J '1 W ..."i/J Commission Member Negrete asked for the income limitations used to qualify for the MAP Pro gram. Mr. Henderson stated that for a fmnily of four (4) the income limit is approximately $40,000 per year. Jeff Wright, P. O. Box 2341, San Bernardino, asked for the location of the Young Homes. Mr. Henderson stated that the homes were located in the southwest area of the City between Randall and Meridian Avenues. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlmn. Noes: Commission Members Curlin; Miller. Abstain: None. Absent: None. 15. SAN BERNARDINO COMMUNITY DOSPIT AL MEDICAL OFFICE BUILDING PROJECT (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, explained this item ., indicating that it recommended an extension of the loan guarantee to Community Hospital to facilitate Ii the financing of the proposed office building. ....J MAYOR MINOR WAS EXCUSED AT 11:44 A.M. Mr. Henderson discussed the deal points listed in the staff report stating that the interest rate for the loan was at 7.25%. MAYOR MINOR RETURNED AT 11:45 A.M. Commission Member Hernandez questioned the security for the Agency regarding the loan guaran tee. Mr. Henderson stated that the Agency had the guarantee of both the Community Hospital and Arrowhead Health Care System and a second deed of bUst. Charlie Kraus, Administrator, San Bernardino Community Hospital, indicated that the medical office building would be an important asset in attracting physicians to the facility. He stressed that the hospital was not requesting any funds. only a loan guarantee. Commission Member Pope-Ludlam felt this project would benefit the entire City as well as the hospital. --, I t .....J JOINT REGULAR MEETING KJH:lmp:cminllJ2 - 10 - COMMISSION MINUTES NOVEMBER 15, 1993 r- L Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller to approve a Redevelopment Agency loan guarantee related to the construction by San Bernardino Community Hospital of a 59,000 square foot medical office building based upon the teons and conditions set forth in the staff report and subject only to the review and approval of loan documents by Agency Counsel. Further, that the ChaiDDan and Executive Director be authorized to execute all documents to effectuate said transaction. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; OberlIelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 16. NEW POLICE FACILITY FINANCING (Mayor and Common Council) Kenneth J. Henderson, Executive Director, Development Department, made a correction to this item stating that the cost should read $6,120,000 and requested it be changed by interlineation. He stated that new resolutions would be prepared showing the change. Mr. Henderson explained previous financing requests regarding this item and stated that discussions have now taken place regarding a 50/50 share between the City and the Agency. Jeff Wright, P. O. Box 2341, stated that the Joint Powers Financing Authority would need to reopen hearings in order to take action on this item. "..... I Councilman Hernandez expressed concern regarding the language in the resolutions which l...", allowed the Mayor to make changes without notification of the Council. Mr. Henderson explained that the language in the resolutions was standard and allowed the Mayor to make procedural changes only. COUNCILMAN CURLIN WAS EXCUSED AT 11:52 A.M. Councilman Hernandez spoke on the cost of this project to the City. He stated that the City would pay $12 million over a 30 year period. He asked for the total cost of this project. Mayor Minor stated that the cost was approximately $10 - $11 million plus interest. COUNCILMAN CURLIN RETURNED AT 11:53 A.M. Discussion ensued regarding the need to have some resolutions approved by the Joint Powers Financing Authority (JPFA). Rhonda Connelly, Miller and Schroeder, explained that the JPFA was a combination of hoth the City and the Agency. She stated that using it provides a method of financing that kept the two entities tied together. r ..... COUNCILWOMAN MILLER LEFT AT 11:54 A.M. COUNCILWOMAN POPE.LUDLAM LEFT AT 11:55 A.M. JOINT REGULAR MEETING KJH:lmp:cminllj2 . 11 . COMMISSION MINUTES NOVEMBER 15, 1993 Mr. Henderson explained that the 50/50 share for the police f'mancing would enable the City to make payments of $445,000 a year instead of $980,000 a year. He stated that the payments would ~ not begin until 1995. COUNCILWOMAN MILLER RETURNED AT 11:58 A.M. '-" Councilman Hernandez expressed concern regarding the rising cost of the facility. COUNCIL WOMAN POPE-LUDLAM RETURNED AT 11:59 A.M. Mr. Henderson explained that financing the facility increases the cost due to the interest payments. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the selling price of the existing facility to the State Offices and Calttans Building would reduce the price of the police facility. Shauna Clark, City Administrator, spoke on previous discussions regarding the financing of the police station. She explained that paying for the facility would mean cut-backs in other City departments. She stated that the City would not be able to continue its current level of selVice and pay for the police facility. Councilwoman Pope-Ludlam indicated that the superblock would generate additional monies for the general fund and felt that those monies would assist with the facility payments. Ms. Clark stated that the Superblock would be very beneficial for San Bernardino but did not believe it would have an affect on the general fund. ., ...." Councilwoman Pope-Ludlam made a motion, seconded by Councilman Obemelman, that the following resolutions be approved and adopted: RESOLUTION NUMBER 93-428 RESOLUTION OF THE MAYOR AND COMMON COUNCn.. OF THE CITY OF SAN BERNARDINO, AUlHORIZING THE LEASE OF CERTAIN PROPERTY FROM THE SAN BERNARDINO JOINT POWERS FINANCING AUlHORITY, AUlHORIZING THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUlHORIZING AND DIRECTING THE PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF. ~ \ ......, JOINT REGULAR MEETING KJH:lmp:cmlnllj2 - 12 - COMMISSION MINUTES NOVEMBER 15, 1993 lCommunitv Development Commission) ,... I Commission Member Pope-Ludlmn made a motion, seconded by Commission Member I Oberl1elman that the following resolutions be approved and adopted: ~ RESOLUTION NUMBER 5383 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, APPROVING AND AUTIlORIZING THE EXECUTION OF A CERTAIN GROUND LEASE IN CONNECTION WITH THE FINANCING OF THE SAN BERNARDINO POLICE STATION. (Joint Powers Financinr Authority) RESOLUTION NUMBER JP AlO ,,-. RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY APPROVING THE SALE AND DELIVERY OF NOT TO EXCEED $6,120,000 CERTIFICATES OF PARTICIPATION (1993 POLICE STATION PROJECT) EVIDENCING THE DIRECT UNDIVIDED FRACTIONAL INTEREST OF THE OWNER THEREOF IN LEASE PAYMENTS TO BE MADE BY THE CITY OF SAN BERNARDINO, CALIFORNIA, AS A RENTAL FOR A CERTAIN PROJECT PURSUANT TO A LEASE AGREEMENT WIlH THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF. I.- RESOLUTION NUMBER JP All RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY, APPROVING AND AUTHORIZING THE EXECUTION OF A CERTAIN GROUND LEASE IN CONNECTION WITH THE FINANCING OF THE SAN BERNARDINO POLICE STATION. Discussion ensued regarding payment of utility taxes by the state offices. Ms. Clark indicated that government entities were exempt from utility tax payments. The motions carried by the following vote: Ayes: Council Members Negrete; Curlin; Oberl1elman; Devlin; Pope-Ludlam; Miller. Noes: Councilman Hernandez. Abstain: None. Absent: None. MEETING ADJOURNED r 1 ~ '-- At 12:13 pm., the meeting of the Mayor and Common Council and the Community Development Commission was adjourned until 3:00 pm. JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 - 13 - COMMISSION MINUTES NOVEMBER 15, 1993 MEETING RECONVENED .... The meeting of the Mayor and Common Council and the Community Development Commission was reconvened at 3:55 pm. ....." ROLL CALL Roll call was taken with the following members present: ChaiDDan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberllelman; Jerry Devlin; Valerie Pope-Ludlam; Norine Miller. Absent: None. ST AFF PRESENT , Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Jim Penman, City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Ernie Wilson, Affmnative Action Officer; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Cletk; Diane Jones, Deputy City Cletk; La Vonda M-Pearson, Reconting Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. 17. BOYS AND GIRLS CLUB FINANCIAL ASSISTANCE PROPOSAL (Community Development Commission) ., .~ ...., (Councilwoman Pope-Ludlam's Recommendation) Commission Member Hernandez recommended this item be referred to the Housing Committee. COMMISSION MEMBER CURLIN WAS EXCUSED AT 3:57 P.M. Kenneth J. Henderson, Executive Director, Development Department, gave a brief synopsis of the history on this item and stated that staff had not had enough time to review it sufficiently. Commission Member Pope-Ludlam spoke on the urgency of this item and asked staff if the item would be ready for the Commission on December 6, 1993. Commission Member Hernandez made a motion, seconded by Commission Member Obemelman, to refer this item to the Housing Committee. The motion carried by the following vote: Ayes: Commission Members Negrete: Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam: Miller. Noes: None. Abstain: None. Absent: None. ..., ....." JOINT REGULAR MEETING KJH:lmp:cmlnllj2 - 14 - COMMISSION MINUTES NOVEMBER 15, 1993 I ----.-----.-- 18. ROGER'S BINDERY [ (Community Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, explained previous actions taken by the Commission in reference to Roger's Bindery and stated that Ell. Wood and Associates was retained to complete a study on the bindery. Gene Wood, G. H. Wood and Associates, stated that the numbers in the report were based on the March 31, 1993, year-end statements. Commission Member Miller asked if the income statements from the shareholders were submitted for review. Mr. Wood stated that the personal income statements of the shareholders were not submitted. He indicated that the report included all the facilities of Mr. Imbriani, owner of Roger's Bindery, except for the Mexico facility. Discussion ensued regarding a loan to a shareholder and the total mnount of that loan. Bob Forrest, Chief Financial Officer, Roger's Bindery, spoke on the age of the loan stating that no funds had been borrowed from the finn within the last five (5) years. He stated that the loan in the mnount of $240,000 would be committed for repayment in approximately 90 days. ,-. Li. . Commission Member Obemelman commented on the shareholders liberal use of personal guarantees. Mr. Wood stated that he was not an economist, but felt the company was not healthy. He emphasized that the owners of the bindery were worlc.ing toward improving the bindery. Mr. Forrest explained that although the bindery had made some poor business decisions in the past, they currently have been able to stay on top because of proper management of the cash flow. Discussion ensued regarding the management of the cash flow in 1989 and also the high salaries. Mr. Steinhaus explained that if foreclosure was initiated, the Agency would not know what collateral it would receive until the actual foreclosure was initiated. He stated that the agreement was the instrument needed to foreclose. Mr. Steinhaus stated that if the Agency wished to proceed further with this item and locate the strengths and weaknesses of the bindery, a full fledge audit, including a business reorganization document, would need to be done. He explained that other options for this item would be renegotiation of the existing loan, accept the bindery's proposal or convert the loan to a gnmt. r , ... Mr. Forrest explained that the loan needed to make the payment on the payroll taxes was obtained and that the bindery had already made the payment. JOINT REGULAR MEETING KJH:lmp:cminllj2 - 15 - COMMISSION MINUTES NOVEMBER 15, 1993 Mr. Steinhaus explained that Motions B & C of this item would authorize the Agency to renegotiate the loan, if the Commission wished. --, Commission Member Oberllelman expressed concerns regarding the Agency renegotiating the loan without knowledge of the value of its collateral. ~ COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:36 P.M. Commission Member Oberllelman requested this item be delayed until December 6, 1993, when a more prudent decision can be made. Mr. Wood gave suggestions regarding assisting the bindery out of its defaults. One suggestion that he made was for the Agency to operate the bindery until its loan was paid. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Oberllelman, to continue this matter until December 6, 1993. Discussion ensued regarding the proper motions needed to approve this item. Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, that the following motions be approved and adopted: That the Community Development Commission, using the existing principal balance, develop a new am ortization schedule using an interest rate which reflects the current economic conditions. " g AND -J That the Community Development Commission build into the new amortization schedule a deferred period. The specific length of this deferred period is yet to be detennined. The motion failed by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam. Noes: Commission Members Curlin; Oberllelman; Devlin; Miller. Abstain: None. Absent: None. Mr. Steinhaus recommended staff renegotiate the loan and bring the item back to the Commission for its approval. Commission Member Miller recommended that the points brought out by Mr. Wood also be included in the report brought back by staff. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, that the following motions be approved and adopted: That the Community Development Commission, using the existing principal balance. develop a new amortization schedule using an interest rate which reflects the current economic conditions. -.., I , j - JOINT REGULAR MEETING KJH:lmp:cmlnllj2 .16. COMMISSION MINUTES NOVEMBER 15, 1993 [ r- , I , ~ [ AND That the Community Development Commission build into the new amortization schedule a deferred period. The specific length of this deferred period is yet to be detennined. The motion failed by the following vote: Ayes: Commission Members Negrete; Hemandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain: Commission Member Curlin. Absent: None. Commission Member Obemelman made a motion, seconded by Commission Member Devlin, to continue this matter to December 6, 1993 and that staff be instructed to bring back a specific agreement and supporting infonnation as to any additional collateral that may be offered in support of the agreements. The motion carried by the following vote: Ayes: Commission Members Curlin; Hemandez; Oberllelman; Devlin; Pope-Ludlam. Noes: Commission Members Negrete; Miller. Abstain: None. Absent: None. 19. PAY INCREASE FOR COMMISSION MEMBERS (Community Development Commission) (Redevelopment Committee Recommendation) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to increase pay to Commission Members from $75.00 per meeting to $1,500 per month and to increase the Economic Development Agency FY 93/94 budget by $144,000. COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 5:02 P.M. Jeff Wright, P. O. Box 2341, San Bernardino, indicated that a pay increase for the Commission Members should be voted on by the public. COMMISSlON MEMBER POPE.LUDLAM RETURNED AT 5:03 P.M. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:03 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 5:04 P.M. Robert Castaneda, Citizen, stated that when the new Council Members ran for office, they indicated that they were volunteering their services. He did not feel it was right for them to now request a pay increase. Jim Lynas, Citizen, spoke on the various ways of obtaining an increase. He felt the pay was deserved, but recommended that the Council let the citizens of San Benardino vote on it. Commission Member Hernandez stated that in 1988, a legal opinion was provided explaining that it was legal for the Commission to grant itself an increase. Sam Catalano, Carousel Mall, indicated that he would support a major change in the charter. He believed that the Commission did deserve an increase due to its responsibilities as commissioners. JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 - 17 - COMMISSION MINUTES NOVEMBER 15, 1993 Mr. Catalano stated that the pay for Commission Members should be enough to attract people to run for office. He recommended the Commission review its request and consider other alternatives. ..... ji tJ Commission Member Curlin questioned whether or not annual increases according to the I Consumer Price Index was included in the motion. ..... Commission Member Devlin made a substitute motion, seconded by Commission Member Oberhelman, that raises for the Commission come from the general fund, and that no additional raises be given from redevelopment funds. Commission Member Hernandez indicated that those Commission Members who did not wish to accept the increase did not have to. COMMISSION MEMBER MILLER WAS EXCUSED AT 5:23 P.M. Ricky Van Johnson, P. O. Box 7171, felt the Commission Members deserved an increase and recommended they be paid appropriately. The motion failed by the following vote: Ayes: Commission Members Oberhelman; Devlin; Miller. Noes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Abstain: None. Absent: None. Commission Member Pope-Ludlam made a substitute motion, seconded by Commission Member Negrete, to increase pay to Commission Members from $75.00 per meeting to $1,500 per month with annual increases according to the Consumer Price Index and to increase the Economic Development Agency FY 93/94 budget by $144,000. -, ~:i 'wtIfI The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain: None. Absent: None. The Commission requested the increase become effective immediately. 16. NEW POLICE FACILITY FINANCING (Mayor and Common Council) Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to reconsider Item # 16. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. James Penman, City Attorney, explained that the Council would need to reconsider Item 16c and 16d acting as the Joint Powers Financing Authority. He stated that the Mayor and Common Council adjourned the Joint Powers Financing Authority during the morning session. .., I l ! -J JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 . 18 - COMMISSION MINUTES NOVEMBER 15, 1993 r '--- Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez that the following resolutions be approved and adopted: (.Joint Powers Financine Authoritv) RESOLUTION NUMBER JP A20 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY APPROVING THE SALE AND DELIVERY OF NOT TO EXCEED $6,000,000 CERTIFICATES OF PARTICIPATION (1993 POLICE STATION PROJECT) EVIDENCING THE DIRECT UNDIVIDED FRACTIONAL INTEREST OF THE OWNER THEREOF IN LEASE PAYMENTS TO BE MADE BY THE CITY OF SAN BERNARDINO, CALIFORNIA, AS A RENTAL FOR A CERTAIN PROJECT PURSUANT TO A LEASE AGREEMENT WITH THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF. RESOLUTION NUMBER JP A21 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY, APPROVING AND AUTHORIZING THE EXECUTION OF A CERTAIN GROUND LEASE IN CONNECTION WITH THE FINANCING OF THE SAN BERNARDINO POLICE STATION. ,,-. I I The motions carried by the following vote: Ayes: Council Members Negrete; Curlin; -...... Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. RS-1. STATE OFFICES OUALIFICATIONS REVIEW COMMITTEE (Community Development Commission) Councilman Hernandez's Recommendation Commission Member Hernandez felt the Committee should represent the entire community and recommended that Commission Member Pope-Ludlam be appointed to the committee. Commission Member Miller made a motion, seconded by Commission Member Devlin, to table this item. The motion carried by the following vote: Ayes: Commission Members Negrete: Curlin: Hernandez: Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absen!: None. [ JOINT REHULAR MEETING KJH:lmp:cmlnllj2 - 19 - COMMISSION MINUTESmNOVEMBER 15,1993 RS-2. MINORITY AND WOMEN'S BUSINESS ENTERPRISE POLICY (Community Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 5384 RESOLUTION OF TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE CITY OF SAN BERNj\RDINO ADOPTING A POLICY ESTABLISHING GOALS FOR MINORITY AND WOMEN BUSINESS ENTERPRISES IN AGENCY PROCUREMENT. Commission Member OberlIelman made a motion, seconded by Commission Member Hernandez, to authorize the Chaionan to execute said policy and direct the Agency Administrator to develop Standard Operation Procedures to facilitate implementation within ninety (90) days. The motions carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam. Noes: Commission Member Miller. Abstain: None. Absent: None. CLOSED SESSION RS-3. ADJOURNED TO CLOSED SESSION There were no items for discussion in Closed Session. RS-4 ADJOURNMENT At 5:42 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, December 6, 1993 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. Respectfully submitted: KE~NDERSON Executive Director! Secretary to the Commission JOINT REGULAR MEETING KJH:lmp:cmlnllJ2 - 20 - COMMISSION MINUTES NOVEMBER 15, 1993 lIIIIIIIIt -.III , ..J l ...J [ [ [ MAYORANDCOMMONCOUNCR AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING December 6, 1993 11:00 a.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chmn bers, City Hall, 300 North "D" Street, San Bernardino. California and called to onler by Mayor Tom Minor at approximately 1:00 pm., on Monday, November 1, 1993 . ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor, Commission Members Edward Negrete; David Oberhelman; Jerry Devlin; and Norine Miller. Absent: Dr. F. J. Curlin; Ralph Hernandez; Valerie Pope-Ludlmn. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director. Development Department; Dennis Barlow, Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor, Phil Atvizo, Executive Assistant to the Council; Shauna Clark, City Administrator, Fred Wilson, Assistant City Administrator, Rachel Clark, City Clerl<.; Melanie Vale, Deputy City Clerl<.; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper, Brooks London, DeAnza/London Group; Mike Silvennan, DeAnzajLondon Group. 23. MOBILEHOME WORKSHOP. LUNCHEON WORKSHOP Kenneth J. Henderson, Executive Director, Development Department, stated that in November. 1992, the Commission authorized staff to initiate a Request for Proposal for Mobilehome Conversion. The Commission subsequently selected the DeAnzalLondon Group. Brooks London, DeAnza/London Group. stated that he had been involved with MobiJehome Parks since 1984. He explained that he was a lawyer active in assisting communities anti owners in mobilehome park conversions. REGULAR MEETING KJH:lmp:cminI2rl 1 COMMISSION MINUTES December 6, 1993 Mike Silvennan, DeAnza/London Group, stated that DeAnza is the oldest mobilehome group in the country with over 500 employees. ~ Mr. London discussed the process used in detennining the eligibility of mobilehome parks for conversion. ..-1/ Mr. Silvennan indicated that the report prepared by the group focused on four (4) areas: Residents, owners, property, and market analysis. COMMISSION MEMBER MILLER WAS EXCUSED AT 1:20 P.M. The Commission viewed a videotape, prepared by the DeAnza/London Group of the various mobilehome parks in the City and their conditions. COMMISSION MEMBER CURLIN ARRIVED AT 1:24 P.M. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 1:25 P.M. COMMISSION MEMBER CURLIN WAS EXCUSED AT 1:26 P.M. Chainnan Minor infonned those in attendance that, due to the lack of a quorum, no decisions would be made at this meeting. Mr. Silvennan summarized the videotape and emphasized on the need to convert the mobilehomes in Category I. Mr. London discussed the recommendations for Categories II and III. Sherry Numbly, Mobilehome Owner, asked questions relative to the video. -, II wJ Mr. London stated that he would provide Ms. Numbly with a copy of the report for her review. Mr. Henderson brought to the attention of the Commission the specific policy recommendations, the section of the report dealing with the issue of a city-sponsored mobile home park and stated that this item would be presented to the Commission at the next Commission Meeting on December 20, 1993. Phil Arvizo, Executive Assistant to the Council, explained that after reviewing the report prepared by the DeAnza/London Group, the Commission was very comfortable with the recommendations presented by the group. The Commission Meeting was recessed until 3:00 pm. MEETING RECONVENED At 3:01 pm., the meeting of the Mayor and Common Council and the Community Development Commission was called to order by Mayor Minor. ~ REGULAR MEETING KJH:lmp:cminI2rl 2 COMMISSION MINUTES December 6, 1993 ....tIIiJ [ ".... i I L [ ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obemelman; Jerry Devlin; Valerie Pope-Ludhm; and Norine Miller. Absent: None. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; James Penman, City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Shauna Clark, City Administrator; Rachel Clark, City Clerlc; Melanie Vale, Deputy City Clerlc; La Vonda M- Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. CLOSED SESSION 24. ADJOURN TO CLOSED SESSION At 3:02 pm. the Mayor and Common Council and the Community Development Commission adjourned to closed session to discuss the following: B. To confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b )(1), as there is significant exposure to litigation. MEETING RECONVENED At 3:40 pm., the meeting of the Mayor and Common Council and the Community Development Commission was called to order by Mayor Minor. ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Obemelman; Jerry Devlin; Valerie Pope-Ludhm; and Norine Miller. Absent: None. REGULAR MEETING KJH:lmp:cmin12r1 3 COMMISSION MINUTES December 6, 1993 ST AFF PRESENT ~ Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, J Executive Director, Development Department; James Penman, City Attorney; Lorraine Velarde, -.J Executive Assistant to the Mayor, Phil Arviw, Executive Assistant to the Council; Shauna Clark, City Administrator; Rachel Clark, City CleIk; Melanie Vale, Deputy City CleIk; La Vonda M- Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper. PUBLIC COMMENTS ON ITEMS NOT ON AGENDA Route 66 Rendezvous Commission Member Hernandez expressed concern about the article in the Sun Newspaper regarding Route 66 Rendezvous. He stated that Route 66 Rendezvous was one of the best activities that occurs within the City. Commission Member Pope-Ludlam agreed with Commission Member Hernandez and recommended the subject matter be discussed at the Redevelopment Committee Meeting. Diaional Parkini ,., Jeff Wright, P. O. Box 2341, indicated that he had spoken with several people regarding the diagonal parking on "E" Street and the problems it has caused. He stated that the new parking has taken away two (2) lanes. ~~ -II Larry Singleton, Citizen of San Bernardino, was very upset about the new diagonal parking on "E" Street and criticized the planning efforts that created this type of parking. Sam Catalano, Carousel Mall. emphasized that the diagonal parking was used to make the downtown area pedestrian friendly. He said that the downtown businesses were pleased with the diagonal parking. CONSENT CALENDAR The Commission Members requested that items numbered "3", "4", "6", "7", "8", "9", "10", "12", and "13" be removed from the Consent Calendar. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that the Consent Calendar items numbered" I" through "13" be adopted. except for items numbered "3", "4", "6", "7", "8", "9", "10", "12", Md "13". -, REGULAR MEETING KJH:lmp:cmin12r1 4 COMMISSION MINUTES December 6, 1993 .......,; [ r '-- r L The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Development Commission) Commission Member ObeIhelman, made a motion, seconded by Commission Member Devlin, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of November 1, 1993 be approved as submitted in typewritten fODD. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 2. REDEVELOPMENT COMMITTEE MINUTES (Community Development Commission) Commission Member ObeIhelman made a motion, seconded by Commission Member Devlin, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of November 4, 1993 be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Public Works Department S. AWARD OF CONTRACT. TUBULAR STEEL FENCING AT MILL COMMUNITY CENTER (Mayor and Common Council) Commission Member ObeIhelman made a motion, seconded by Commission Member Devlin, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-452 RESOLUTION OF 1HE CITY OF SAN BERNARDINO A WARDING A CONTRACT TO ALL PRO MASONRY, AJ.V. FOR INSTALLATION OF TUBULAR STEEL FENCING AT MILL COMMUNITY CENTER. REGULAR MEETING KJH:lmp:cminI2r1 5 COMMISSION MINUTES December 6, 1993 The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ~ '--'" Development De9artment 11. EMMERTON SCHOOL PROGRAM (Mayor and Common Council) Commission M~ber ObeIhelman made a motion, seconded by Commission Member Devlin, to approve the Emmerton Pre-school proposal regarding the acquisition of modular building units, approve the utilization of $60.000 in available Community Development Block Grant (CDBG) Program funds and authorize the Mayor and Executive Director to execute any document necessary to effectuate said transaction. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Public Works Department (Community Development Commission) ., ..~~ 'fIItttIIIJ 3. IN-FILL STREET IMPROVEMENTS ON ARTERIAL AND COLLECTOR STREETS Commission Member Hernandez expressed concern regarding one fInn obtaining all the business in the City. He felt that the increase in the net price was excessive and recommended that the City open bids to obtain a better quote. Kenneth J. Henderson, Executive Director, Development Department, stated that in September, 1992, the Commission approved $1 million for infIll. He said that on a number of occasions, the plans and specifIcations could not be prepared due to imprecise infonnation regarding quantities and other typical specifIcations. He indicated that since the initiation of the in-fill improvements, there has been signifIcant increases and decreases to contract prices. Commission Member ObeIhelman commented on the procedure used regarding change orders. He felt a better procedure should be implemented. Commission Member ObeIhelman made a motion, seconded by Commission Member Devlin, that CCO Number 6 to the contract with Bob Britton. mc.. for installation of in-fill street improvements, in accordance with PhUl No. 8842, be approved, to autholize a net increase in the contract price of $210,440.26, from $472,743.85 to $683,184.11, in order to reflect actual contract quantities. ~ REGULAR MEETING KJH:lmp:cminI2rl 6 COMMISSION MINUTES December 6, 1993 ......,;1 r ...., [ [ Commission Member Hemandez discussed the amount of funds being paid to one contractor for work done within the City. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was submitted by Public Works and that the Director of Public Works would answer all questions in reference to this item. Mayor Minor continued this item until Roger Hardgrave, Director of Public Works could attend. 4. ADVERTISE FOR BIDS - CONSTRUCTION OF TRAFFIC DIVERTERS IN HIGHLAND/ARDEN AREA (Community Development Commission) Commission Member Hernandez questioned the amount of funds set aside for Arden Guthrie. He requested copies of the docwnents that authorized staff to spend $2 million plus $500,000 from the Inland Valley Development Agency (IVDA) for use in the Arden Guthrie area. Kenneth J. Henderson, Executive Director, Development Department, explained that one of the motions approved during the discussions for the implementation of the Arden Guthrie Strategy was to direct staff to seek additional funding from IVDA. It was later approved that IVDA would provide its portion of 20% set-aside funds for this project. Mr. Henderson stated that this item would provide for the cul-de-sacing of streets in the area. Commission Member Devlin made a motion, seconded by Commission Member Oberhelman, that the plans for construction of traffic diverters on McKinley Street, Newcomb Street, and Dumbarton Street, between 20th Street and Highland Avenue, in accordance with Plan No. 9030, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. Commission Member Pope-Ludlam expressed concern regarding IVDA not bonding its 20% set-aside funds. Timothy C. Steinhaus, Administrator, Economic Development Agency, reiterated that these actions were all ready approved by the Commission at an earlier meeting. Commission Member Pope-Ludlam reminded the Commission Members of discussions that took place when the implementation strategy was approved and indicated that the Commission believed funding assistance would be provided by IVDA. Commission Member Curlin recommended this item be referred to the Redevelopment Committee. Commission Member Hernandez spoke on the cost of this item to the City. REGULAR MEETING KJH:lmp:cminI2r1 7 COMMISSION MINUTES December 6, 1993 Commission Member ObeIhelman spoke on the approval of the concept by the Commission and stated that he felt that there was no need for further discussion. ~ Timothy Sabo, Special Counsel, Sabo and Green, gave a brief history on NDA, its programs, and its funding soun;es. He spoke regarding an agreement being developed between NDA, the City, -....I and the County which would infOOD the City of the accumulated funds it is entitled to. Jeff Wright, P. O. Box 2341, asked questions regarding traffic circulation in the Arden Guthrie neighboIhood. Commission Member Curlin made a substitute motion, seconded by Commission Member Hernandez, to refer this item to the Redevelopment Committee. The motion failed by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez. Noes: Commission Members ObeIhelman; Devlin; Pope-Ludlam.; Miller. Abstain: None. Absent: None. Commission Member ObeIhelman made a motion, seconded by Commission Member Miller, that the plans for construction of traffic diverters on McKinley Street, Newcomb Street, and Dumbarton Street, between 20th Street and Highland Avenue, in accordance with Plan No. 9030, be approved; and the Director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: None. ., Commission Member Pope-Ludlam requested the $500,000 from NDA be bonded. 11 .....J 3. IN-FILL STREET IMPROVEMENTS ON ARTERIAL AND COLLECTOR STREETS (Community Development Commission) Commission Member Hernandez stated that the initial request from staff allowed this vendor to continue working on certain projects because his equipment was already located on the site, thus making it easier for him to complete the work. He felt that since the equipment is now being moved from site to site, bids should be opened up to other vendors. Roger Hardgrave, Director of Public Works, explained that the vendor in question had completed his work and had closed his operations in San Bernardino and has relocated out of state. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete, that CCO Number 6 to the contract with Bob Britton, Inc., for installation of in-fill street improvements, in accordance with Plan No. 8842. be approved. to authorize a net increase in the contract price of $210,440.26, from $472,743.85 to $683,184.11, in oruer to reflect actual contract quantities. ....... REGULAR MEETING KJH:lmp:cminI2rl 8 COMMISSION MINUTES December 6, 1993 ........". r \., r -....- r ~ The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Aleney Administration 6. CHRISTMAS Cl.OSURE (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to authorize the closure of the Economic Development Agency offices during the Christmas holidays, December 27 - 31, 1993; and authorize the trade of the Christmas Eve holiday from December 23, 1993 to December 27, 1993. Commission Member Hernandez expressed concern regarding the various city departments closing for the Christmas holidays. He felt government entities should remain open to the public. Commission Member Curlin questioned the benefits of the holiday closure. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the closure would not impose any costs on the City. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Oberhelman; Devlin; Miller. Noes: Commission Member Hernandez; Pope-Ludlam. Abstain: None. Absent: None. 7. CAROUSEL MALL AGREEMENT (Communitv Development Commission) Commission Member Curlin indicated that he would like to excuse himself from discussions on items numbered "7" and "9" due to having received campaign contributions from the mall. Jam es Penman, City Attorney, explained that he discussed with Councilman Curlin his reasoning for excusing himself and infonned him that, legally, he could include himself in the discussions. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that a fonnal presentation on this item would be made during a luncheon wodcshop at a later date. REGULAR MEETING KJH:lmp:cmin12r1 COMMISSION MINUTES December 6, 1993 9 Commission Member Hernandez made a motion, seconded by Commission Member Oberllelman, to authorize the ChaiDIlan to execute a Cooperation and Reimbursement Agreement ~ between the Economic Development Agency and Central City Company for an amount not to exceed $35,000.00 relative to consultant selVices for negotiation of leases and operating covenants at the Carousel Mall. .....J Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the City owning the Carousel Mall. Mr. Steinhaus explained that the Agency owned the parking lot and the common walkway at the Carousel Mall. He stated that the department stores and small shops each own their individual pads. The motion carried by the following vote: Ayes: Commission Members Negrete; Hemandez; Obemelman; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Members Curlin; Devlin. Absent: None. 8. COMMUNITY CALENDAR AND OUARTERLY COMMUNITY NEWSLETTER (Community Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Negrete, to authorize a pun:hase order with Crown Printers in an amount not-to-exceed $84,900.00, plus applicable sales tax of $6,503.00, for a total of $90.403.00, for the production and printing of a community calendar and three issues of the quarterly community newsletter, and authorize the expenditure of $7,300.00 for mailing the aforementioned items. -.. I~ 1 ,j~ ...., The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Curlin. Abstain: None. Absent: None. Development Department 9. CENTRAL CITY COMMERCE CENTER. WOOLWORTH BUILDING PARKING LICENSE (Mayor and Common Council) Councilman Hernandez inquired about the am ount of the Agency's annual subsidy for this business. Kenneth J. Henderson, Executive Director, Development Department, stated Ihat the <mulIal subsidy was approximately $30,000 a year. REGULAR MEETING KJH:lmp:cminI2rl 10 COMMISSION MINUTES December 6, 1993 --- I 1 \ ~ ......, COWlcilman Hernandez expressed concern regarding the lIIlOWlt of funds being spent on this r item. I I COUNCILMAN CURLIN WAS EXCUSED AT 4:42 P.M. ......, COWlcilman Obemelman commented that if the lease was tenninated, the parking agreement would be tenninated also. COWlcilwoman Pope-Ludlam made a motion, seconded by COWlcilwoman Miller, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-453 RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER. The motion failed by the following vote: Ayes: COWlcil Members Obemelman; Pope- Ludlam; Miller. Noes: COWlcilman Negrete. Abstain: COWlcil Members Hernandez; Devlin. Absent: COWlcilman Curlin. (Community Development Commission) [ Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller, that the following resolution be approved and adopted: RESOLUTION NUMBER 5385 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION AND THE CITY OF SAN BERNARDINO AND CENlRAL CITY COMMERCE CENTER. The motion failed by the following vote: Ayes: Commission Members Obemelman; Pope- Ludlam; Miller. Noes: Commission Members Negrete. Abstain: Commission Members Hernandez; Devlin. Absent: Commission Member Curlin. Mayor Minor recommended this item be continued when all Council Members were present. 10. INFILL HOUSING DEVELOPMENT PROGRAM (Communitv Development Commission) r L REGULAR MEETING KJH:lmp:cminI2rl 11 COMMISSION MINUTES December 6, 1993 Commission Member Hernandez indicated that there was a discrepancy in the back-up of this item regarding the dollar figures. He stated that the parcel nwnbers listed in the docwnent were the .... sane and requested clarification. COMMISSION MEMBER CURLIN RETURNED AT 4:45 P.M. ......iI Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he would contact the housing staff to clarify the discrepancy. Mayor Minor stated that this item would be discussed when the infonnation was obtained. 9. CENTRAL CI1Y COMMERCE CENTER - WOOLWORTH BUILDING PARKING LICENSE (Mayor and Common Council) item. Councilman Hernandez made a motion, seconded by Councilwoman Miller, to reconsider this The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Councilman ObeIhelman made a motion, seconded by Councilwoman Miller, that the following resolution be approved and adopted: .... RESOLUTION NUMBER 93-453 ..", RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER. The motion carried by the following vote: Ayes: Council Members Curlin; ObeIhelman; Pope-Ludlam; Miller. Noes: Councilman Negrete. Abstain: Council Members Hernandez; Devlin. Absent: None. (Community Development Commission) Commission Member ObeIhelman made a motion, seconded by Commission Member Miller, that the following resolution be approved and adopted: REGULAR MEETING KJH:lmp:cminI2r1 ., 12 COMMISSION MINUTES December 6, 1993 '-"'" [ r L r- L RESOLUTION NUMBER 5385 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A FOURTH AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION AND THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER. The motion carried by the following vote: Ayes: Commission Members Curlin; Oberhelman; Pope-Ludlam; Miller. Noes: Commission Members Negrete. Abstain: Commission Members Hernandez; Devlin. Absent: None. 12. REQUEST FOR ADDITIONAL FUNDING FOR THE PLATT BUILDING DEMOLITION (Mayor and Common Council) Timothy C. Steinhaus, Administrator, Economic Development Agency, discussed the additional costs to this item because of the asbestos and time constraints. Kenneth J. Henderson, Executive Director, Development Department, explained that even with the need for additional funding, the overall costs of the demolition were lower than the second lowest bid. Councilman Oberhelman made a motion, seconded by Councilman Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER 93454 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA OF THE AGENCY. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. (Communitv Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the following resolution be approved mId adopted: REGULAR MEETING KJH:1mp:cmin12rl COMMISSION MINUTES December 6, 1993 13 r"-' RESOLUTION NUMBER 5386 RESOLUTION OF TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE CITY OF SAN BERNARDINO MAKING FINDINGS AND DETERMINATIONS AS TO TIlE BENEFIT OF UNDERTAKING CERTAIN BLIGHT REDUCING ACTIVITIES FOR THE ......., CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA OF TIlE AGENCY. ........ Commission Member Oberltelman made a motion, seconded by Commission Member Negrete, to authorize $12,000 additional funding for the Platt Building demolition and a total approved project cost not-to-exceed $220,150 The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberltelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 10. INFILL HOUSING DEVELOPMENT PROGRAM (Communitv Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, infonned the Commission that the sixth parcel number listed in the back-up should read "144-081-22" instead of "144-123-46". Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to approve the proposed infill housing development program modification, authorize the utilization of $12,000 in available low/mod housing set-aside funds and direct the Chaionan and Executive Director to execute any documents necessary to effectuate said modifications. ..., .,.., Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to approve the designation of Young Homes of California as the Agency sponsored infill developer replacing SSLM Ventures and authorize the Chaionan and Executive Director to execute any documents necessary to effectuate said authorization. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 13. OPTION HOUSE TRANSITIONAL HOUSING DEVELOPMENT CHANGE ORDERS (Mavor and Common Council) Kenneth J. Henderson, Executive Director, Development Department. discussed the difficulties that have occurred regarding this project and the need for the additional funding. ~ REGULAR MEETING KJH:lmp:cminI2rl 14 COMMISSION MINUTES December 6, 1993 -....I COUNCILWOMAN POPE.LUDLAM WAS EXCUSED AT 4:50 P.M. r Councilman Oberhelman indicated that Option House was the primary caretaker for this type L of activity in the City. He recommended approval of the item. COUNCILWOMAN POPE.LUDLAM RETURNED AT 4:52 P.M. Councilman Oberhelman made a motion, seconded by Councilman Devlin, to approve $26,000 in Low/Mod funds for Option House Transitional Housing to complete the project by covering additional costs required by the installation of a donated replacement unit and change onlers that resulted therefrom, as well as a change onler for rehabilitation of a second unit. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. END OF CONSENT CALENDAR 14. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY OPEN PUBqC HEARING CLOSE PUBLIC HEARING ",... I L (Mayor and Common Council) Councilman Oberhelman made a motion, seconded by Councilman Devlin to close the public hearing. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludhm, to receive and file the attached Comprehensive Housing Affonlability Strategy (CHAS) document and authorize staff to submit same to the U.S. Housing and Urban Development Department. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. [ REGULAR MEETING KJH:lmp:cminI2rl 15 COMMISSION MINUTES December 6, 1993 15. PUBLIC HEARING - HUD 108 LOAN APPLICATION - WEST SIDE PLAZA OPEN PUBLIC HEARING CLOSE PUBLIC HEARING ~ ....." (Mayor and Common Council) Councilwoman Pope-Ludlan made a motion, seconded by Councilman Hemandez, to close the public hearing. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Councilman Hemandez made a motion, seconded by Councilman Oberhelman, to approve the U.S. Department of Housing and Urban Development (BUD) Section 108 Loan Application for the West Side Plaza project, and authorize the Mayor and Executive Director to execute all necessary documents. Further, that staff be authorized to submit to HUD said Section 108 Loan Application. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Obe.rhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. .... 16. SALVATION ARMY PAYEE PROGRAM 'eIIIIiJ (Communitv Development Commission) (Councilwoman Pope-Ludlam's Recommendation) Commission Member Pope-Ludlam discussed the Salvation Anny's need for financial assistance to help them with their payee program which provides assistance to the mentally ill and homeless. She explained that the Salvation Anny houses over 350 people including families. Commission Member Devlin agreed that the funds were needed, but stated that redevelopment monies could not be used for this pwpose. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that Community Development Block Grant (CDBG) funds would be the appropriate funding source for this type of project, but indicated that the funds were depleted until spring. Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to table this item. ~ r REGULAR MEETING KJH:lmp:cminI2r1 16 COMMISSION MINUTES December 6, 1993 ~ f .......J [ Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to refer this item to the Redevelopment Committee. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Councilman Obemelman. Abstain: None. Absent: None. 17. SOILS ENGINEERING SERVICES. STATE CONSOLIDATED OFFICES AND CAL TRANS BUILDING (Communitv Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Negrete, to authorize the Agency Administrator to draft and execute a contract with CHJ, Inc., in an amount not to exceed $120,000 for soil engineering services for the design of the State Consolidated Offices and Caltrans Building on the Superblock site, contingent upon fmal verification of Minority Business Enterprise goal compliance. Commission Member Hernandez questioned the use of "local" businesses for this project. James Penman, City Attorney, stated that if the Commission would like the Attorney's Office to come up with ideas on the defmition of "local" businesses, it would do so. ".-. Commission Member Devlin indicated that the fmu selected was from the City of Colton and he felt that was a "local" business. ~ [ Timothy C. Steinhaus, Administrator. Economic Development Agency, explained that the selected finn would be using three (3) subcontractors: a minority finn, a women-owned finn; and a disabled veterans finn. Commission Member Pope-Ludlam expressed concern regarding the need to have qualified minorities participate in the beginning stages of this project. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:12 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 5:14 P.M. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 18. ARCHITECTURAL SERVICES - ST ATE CONSOLIDATED OFFICES AND CAL TRANS BUILDING (Communitv Develooment Commission) REGULAR MEETING KJH:lmp:cminI2rl COMMISSION MINUTES December 6, 1993 17 Commission Member Obemelman made a motion, seconded by Commission Member Devlin, to authorize the Agency Administrator to draft and execute a contract with Keating Mann Jernigan Rottet in an amount not to exceed $4,094,833 (reimbursables included) for structural and interior architectural services for the design of the State Consolidated Offices and Caltrans Building on the Superblock site; and, allocate $250,000 in contingency for unanticipated design changes. ,., I ........tI Commission Member Hernandez discussed the process used to select the contractors. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that neither himself nor staff had any input in the selection of contractors for the Caltrans project. He stated that the committee completed all the interviews and made its selections based on qualifications. .. Commission Member Hernandez commented on a conversation that he had with Mr. Richard Mayo, Caltrans Project Manager, and his concerns with worldng with Caltrans officials. Richard Mayo, State of California, 107 South Broadway, Los Angeles, CA 90012, spoke on the need to proceed quickly with this project. He stated that due to the need to meet a certain deadline, the State could not affonl any time delays . James Penman, City Attorney, recommended Councilman Curlin, Councilman Hernandez, the Mayor and Mr. Mayo meet and discuss any misunderstandings they have had relative to this project. Commission Member Obemelman pointed out that this project would be the most important thing that would happen within the City. He said it would bring approximately 25 agencies and Caltrans to the downtown area. ., Jeff Wright, P. O. Box 2341, San Bernardino, CA, stated expressed concern regarding the cost ..... for this project. Michael Mann, 606 South Olive Street, Los Angeles, CA, stated that he had invited local finns to participate in the project and stated that 15.07% of the total project would be received by local finns. Commission Member Miller indicated that the State Consolidated Offices and Caltrans Review Committee asked the same questions and went through the slIDe review process that the Commission has today. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: None. REGULAR MEETING KJH:lmp:cminI2rl 18 COMMISSION MINUTES December 6, 1993 l .....J [ r L.. [ 19. AGENCY SPONSORSHIP OF PROPOSED COMPLIANCE WORKSHOP (Community Development Commission) Councilman Hernandez's Recommendation Fmncis Grice, 466 Orange Street, Redlands, CA, discussed previous assistance she had given to the City of San Bernardino. Carol Stell, President, EOCO, indicated that the pwpose of the workshop was to establish a forum to discuss the implementation of the program and strategic plan for the Minority Business Entetprise/Women-Owned Business Entetprise (MBE/WBE) program. Ms. Stell announced the various individuals who would speak at the workshop stated how the workshop would benefit the City. She stated that the cost for the one-day workshop would be $8,000. MA YOR MINOR WAS EXCUSED AT 5:53 P.M. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:53 P.M. Ms. Grice stated that the workshop would be set-up for approximately 200 elected and appointed officials - both City and other organizations. She said it has been suggested that the workshop be held in the Council Chmnbers. Ms. Stell reiterated the benefit of this workshop for department heads, and recommended that it be held January 14, 1994. Commission Member Oberhelman asked the Agency Administrator and the City Administrator if it was necessary to seek out external resources to discuss this issue. Timothy C. Steinhaus, Administrator, Economic Development Agency, said the Agency may have a few individuals who would be interested in this workshop. He spoke on the Agency's involvement with MBE/WBE and CDBG projects. He explained that the Agency has been successful in following the federal guidelines established in reference to both of those programs. Mr. Steinhaus suggested that since both the City and the Agency would be participating in this workshop, that the cost of the workshop be shared. He also recommended that individuals be charged a fee to help pay for refreshments. Shauna Clark, City Administrator, stated her staffs willingness to obtain as much training as necessary; however, she felt that is was not necessary for all department heads to attend this workshop. Commission Member Hernandez stated that he would be willing to seek other agencies to help pay for the cost of the workshop. REGULAR MEETING KJH:lmp:cmin12rl COMMISSION MINtITES December 6, 1993 19 r Commission Member Hernandez made a motion. seconded by Commission Member Pope- Ludlam, to approve the sponsorship of a Contract Compliance Workshop for a sum not to exceed $8,000 on January 14, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Oberllelman; Devlin. Abstain: None. Absent: None. 20. RECONSIDERA TION OF COMMISSION COMPENSATION (Community Development Commission) Councilman Curlin's Recommendation Commission Member Curlin made a motion, seconded by Commission Member Hernandez, to table this item. Commission Member Oberllelman made a substitute motion, seconded by Commission Member Devlin to reconsider this item. Commission Member Pope-Ludlam made a substitute motion, seconded by Commission Member Negrete, to table this item. nle motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Oberllelman; Devlin; Miller. Abstain: None. Absent: None. 21. ROGER'S BINDERY (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, explained previous discussions that have taken place at the Commission Meetings regarding Roger's Bindery. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 6:12 P.M. COMMISSION MEMBER HERNANDEZ RETURNED AT 6:14 P.M. Mr. Henderson explained that the staff report identified four (4) major alternatives in reference to the bindery and also recommendations by staff. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 6:18 P.M. REGULAR MEETING KJH:lmp:cminI2rl 20 COMMISSION MINUfES December 6, 1993 ..., , } .....J ., ~ 14 ...... ~ j j I -J [ "...... [ I , i I.- [ Commission Member Oberllelman stated that over the last few weeks, the Commission had reviewed many things about the business. He stated that the Commission agrees that the business does not employ as many employees as originally indicated, that this is a loan, and that the Commission has a duty to the taxpayers of the city. Commission Member Oberllelman felt the business generated sufficient funds to repay its obligation to the Agency. He stated that if the business chose to make significant changes in the way it runs its operations, it could repay its delinquencies. Commission Member Oberllelman made a motion, seconded by Commission Member Miller, to authorize the Agency Administrator to initiate a lawsuit to get the $60,500 owed to the Agency and to set a timefrnme for Roger's Bindery of seven (7) days to bring loan current. If the loan is not current within the seven (7) days, lawsuit will be initiated; if the loan is brought current, authorize the Agency Administrator to renegotiate the full principal balance of the loan in teuns more accommodating to the current cash flow problems of the business. COMMISSION MEMBER POPE.LUDLAM RETURNED AT 6:22 P.M. Roger Imbriani, 1905 Riverview Drive, San Bernardino, CA., commented on the financial difficulties of the bindery due to customers no longer paying their debts to the bindery. He stated that the business had been negotiating with other creditors to make payment arrangements. Commission Member Curlin questioned the salaries and expenses of the business. Mr. Imbriani answered questions relative to Commission Member Curlin's concerns indicating that over the past 10 years, his personal salary has remained at $75,000 a year. He stated that his W -2 fODD submitted to the state lists all his personal and business expenses which totalled approximately $139,000 last year. Mr. Imbriani explained his efforts to try and resolve all of his delinquencies, indicating that one of the agencies he wotked with had set-aside a bindery payable in the amount of $1.7 million. Commission Member Oberllelman indicated that a particular creditor did not appear on the creditor list submitted by the business. Discussions ensued regarding all of the creditor lists submitted by the business and the reasoning for each. Commission Member Pope-Ludlam expressed concern regarding the questioning being done at the Commission Meeting in an open forum. Commission Member Miller commented on documents presented by staff regarding the business. She asked if Mr. Imbriani had reviewed those documents. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that Mr. Imbriani had not reviewed the documents. He explained that staff offered him an opportunity to meet with the other shareholders to discuss the documents and he declined. REGULAR MEETING KJH:lmp:cminI2r1 COMMISSION MINUTES December 6, 1993 21 Mr. Imbriani stated that as CEO of Roger's Bindery, he has complete authority to negotiate all contracts. He felt the other shareholders did not need to be involved with this process. ~ Commission Member Hernandez expressed concern regarding the Commission discussing infoonation of the business when the owner was not infooned of such infoonation. __ Bob Forrest, Chief Financial Officer, Roger's Bindery, discussed the amount of employees who wOIk at the bindery stating that they have a: $10 million payroll. He explained that the bindery is 1/3 of the US Postal Service business in San Bernardino County. He indicated that if the bindery ceases doing business, the Postal Service would incur a $140 million deficit problem. Mayor Minor questioned Mr. 1mbriani's intent to repay the Agency. Mr. Forrest explained to the Commission how delinquencies were prioritized within the business. He stated that a high priority went to maintaining the binding machines since it was the revenue source of the bindery. Mr. Forrest stated that he would be paying the $120 million in labor over the next 10 years to this City. He said that his salary was $75,000 a year, benefits, and that he was entitled to profit sharing when the company made a profit. Commission Member OberlIelman questioned the expenditures of the business at this point in its fiscal year. Mr. Forrest stated that the business expenditures are down due to reductions in personnel. .... Jackie Imbriani, 1601 Barton Road, Redlands, CA, stated that she was a stockholder, officer ....,j and a director of Roger's Bindery. She slaled that the infoonalion provided to lhe Agency staff was taken from the books of Roger's Bindery. She felt the business was hemorrhaging througb poor management, excessive funds being spent to certain employees, and business promotion. The loss of major customers over the last several months have also caused the company to have problems. It Mrs. hnbriani stated that the stockholders were suppose to meet at least monthly to discuss the business. She stated tbat although a meeting had not been held within nine (9) months, they held a meeting three (3) weeks ago to discuss the liquidation of the mailing company. Commission Member OberlIelman explained that his motion was a substantial variation from Option 4, presented by staff. He said that Option 4 was simply to file a lawsuit to collect the delinquency and his motion recognized that the City should do everything in its power to collect the delinquency, but also to negotiate new and more favorable teons for the principle balance of the loan. Timothy Sabo, Special Counsel, Sabo & Green, recommended staff enler into some type of negotiations or possibly some agreement until confionation is made regarding the status of the company. He also suggested that the sluuehulders meet with !vIr. Steinhaus. Gene Woud .Uld the CPA to see if a recommendation could be made amongst the parties. ~ ~ REGULAR MEETING KJH:lmp:cminI2rl 22 COMMISSION MINUTES December 6, 1993 ......, [ [ [ Mr. Sabo felt the Commission should authorize the City Attomey to file a lawsuit and give staff approximately four weeks to come up with a recommendation acceptable to all parties involved before the City Attomey would actually file the lawsuit. He believed that would allow the City to be in a position of strength. Commission Member Miller made a motion, seconded by Commission Member Oberhelman, to direct Mr. Steinhaus, Mr. Gene wood, and Mr. Sabo to meet with the Roger's Bindery shareholders and certified public accountant to resolve the loan delinquency; that Mr. Steinhaus be authorized to file a lawsuit if the loan delinquency is not resolved; and that the matter return on January 10, 1994. Discussion ensued regarding clarification of the motion. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: None. 22. DELINOUENT NOTES AND DEVELOPMENT AGREEMENTS IN DEFAULT- ORAL PRESENTATION Commission Member Oberhelman made a motion, seconded by Commission Member Devlin to continue tins item wItil December 20, 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Miller. Noes: Commission Member Pope-Ludlmn. Abstain: None. Absent: None. 23. AD.lOURNMENT At 7:13 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, December 20, 1993 at 11:00 a.m., in the Council Chmnbers of City Hall, 300 North "0" Street, San Bernardino, California. Respectfully submitted: ~,o~ KENN H J. H NDERSON Executive Directorl Secretary to the Commission REGULAR MEETING KJH:lmp:cminI2rl COMMISSION MINUTES December 6, 1993 23 ...., -.J .; , .....tIJ -, ~ r Ii..., r- L [ MAYOR AND COMMON COUNCIL COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO MINUTES JOINT REGULAR MEETING December 20, 1993 11:00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 4:20 pm., on Monday, December 20, 1993, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chaionan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberllelman; Jerry Devlin; Valerie Pope-Ludlam. Absent: Commission Member Norine Miller. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; James Penman, City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Rachel Clark, City Clerlc; Suzanna Cordova, Deputy City Clerlc; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE None. PUBLIC COMMENTS NOT ON THE AGENDA COMMISSION MEMBER MILLER ARRIVED AT 4:25 P.M. Albert Martinez, P. O. Box 1622, San Bernardino, CA 92401, commented on discussions taking place within the community regarding various council members. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:27 P.M. COMMISSION MEMBER HERNANDEZ RETURNED AT 4:28 P.M. Jeff Wright, P. O. Box 2341, San Bernardino, CA, commented on complaints regarding the diagonal parking on "E" Street. CONSENT CALENDAR JOINT REGULAR MEETING KJH:lmp:cmln12j2 - I - COMMISSION MINUTES DECEMBER 20, 1993 The Commission Members requested that items numbered "5", "6", "7", "9", "10", "11" and "12", be removed from the Consent Calendar. ~ Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the Consent Calendar items numbered "1" through "12" be adopted except for items numbered ...... "5", "6", "7", "9", "10", "11" and "12", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 1. JOINT POWERS FINANCING AUTHORITY (Communitv Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, January 24, 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 2. COMMUNITY DEVELOPMENT COMMISSION MINUTES " .fl ....J (Communitv Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the minutes of the Community Development Commission of the City of San Bernardino for the meetings of November 15, 1993 and December 6, 1993 be approved as submitted in typewritten foon. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 3. REDEVELOPMENT COMMITTEE MINUTES (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of November 18, 1993 be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. l ......J JOINT REGULAR MEETING KJH:lmp:cmin12j2 - 2 - COMMISSION MINUTES DECEMBER 20, 1993 [ [ r- L Public Works Department 4. AGREEMENT FOR ENGINEERING DESIGN SERVICES FOR MT. VERNON AVENUE STORM DRAIN (Mavor and Common Council) Councilman Obemelman made a motion, seconded by Councilman Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-464 RESOLUTION OF TIlE CITY OF SAN BERNARDINO AU1HORIZING TIlE EXECUTION OF AN AGREEMENT WITH BSI CONSULTANTS, INC., RELATING TO THE PROVISION OF PROFESSIONAL ENGINEERING DESIGN SERVICES FOR TIlE MT. VERNON AVENUE STORM DRAIN The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Development Department 8. OFFICE LEASE - 201 NORTH "E" STREET (Community Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Negrete, to authorize the Executive Director to draft and execute a lease and all other necessary documents with the California Southern Small Business Development Corporation for the utilization of approximately 800 square feet of office space on the second floor of the 201 Building. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 5. INVESTMENT POLICY (Communitv Development Commission) Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the approval of this policy. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to approve and adopt the Development Department's Annual Statement of Investment Policy for the year 1994. JOINT REGULAR MEETING KJH:lmp:cmln12J2 COMMISSION MINUTES DECEMBER 20, 1993 - 3 - The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; OberlIelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ~ 6. AWARD OF BID - 4TH & "E" PARKING LOTS -..J (Mavor and Common Council) Timothy C. Steinhaus, Administrator, Economic Development Agency, discussed prior actions to the lots in question and stated that the cost for the improvements would be $194,000. He explained that nominal lighting and landscaping would be required per the planning department. Councilman OberlIelman made a motion, seconded by Councilman Devlin, that the following resolution be approved and adopted: RESOLUTION NUMBER 93465 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF CERTAIN IMPROVEMENTS FOR THE STATE COLLEGE REDEVELOPMENT PROJECT AREA. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; OberlIelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Councilman Hernandez. Absent: None. (Communitv Development Commission) .., ~ wi Commission Member OberlIelman made a motion, seconded by Commission Member Devlin, that the following resolution be approved and adopted: RESOLUTION NUMBER 5387 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF CERTAIN PUBLIC IMPROVEMENTS FOR THE STATE COLLEGE REDEVELOPMENT PROJECT AREA. Commission Member OberlIelman made a motion, seconded by Commission Member Devlin, to award a bid in an amount of $153,885 to Eastland Construction of San Bernardino for the construction of parking lot improvements on the northwest and northeast comers of 4th and "E" Streets, authorize $40,115 for engineering and inspection services and contingency, and allocate bond proceeds in an amount not to exceed $194,000 for the foregoing. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; OberlIelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. ~ Absent: None. - JOINT REGULAR MEETING KJH:lmp:cmln12j2 - 4 . COMMISSION MINUTES DECEMBER 20, 1993 [ r- I --.. [ 7. COURT STREET SOUARE PARKING LOT AND GREAT WESTERN WALL (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, explained that the cost for this item includes the construction of a stairway and demolition of the wall. He also stated that the Agency would need to comply with all City codes when completing this project. Commission Member Curlin questioned the availability of the lot for various activities during the construction process. Mr. Henderson stated the west portion of the lot would remain available for alternate uses. Commission Member Hernandez asked if this project was part of the budget process. Mr. Henderson indicated that this project was not included in the budget. He explained that there was approximately $1 million of bond proceeds from the South Valle Project Area that was available. Timothy C. Steinhaus, Administrator, Economic Development Agency, reminded the Commission that the joint financing between the Agency and the City for the building of the police station released some of the bond proceeds for other use. He clarified that this item was only a request to solicit bids. Commission Member Hernandez recommended this item be referred to the Redevelopment Committee. Mr. Steinhaus stated that this item had been previously discussed at both the Commission and Redevelopment Committee meetings. Discussion ensued regarding priorities set by the Commission during the budget hearings and also the location of the proposed Perfonning Arts Center. Commission Member Hernandez questioned the possibility of a restaurant locating to this site. Mr. Steinhaus indicated that there was only an expressed interest from a restaurant to locate to the downtown area. He stated that nothing was certain. Chainnan Minor discussed the possibility of locating a Perfonning Arts Center in San Bernardino. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Oberllelman, to authorize the Executive Director to advertise for bids for the construction of Court Street Parking lot, initiate negotiations with property owners concerning the demolition of the Great Western Wall and construction of a stairway, with the understanding that funds have not been allocated. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 5:04 P.M. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 5:05 P.M. JOINT REGULAR MEETING KJH:lmp:cmin12J2 COMMISSION MINUTES DECEMBER 20, 1993 - 5 - The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ,.., .....,.; 9. WEST SIDE PLAZA DAY CARE PROJECT (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to approve the West Side Plaza Day Care Project and authorize the Executive Director to develop and execute a lease agreement between the City of San Bernardino Redevelopment Agency and New Frontier CommeICial Properties in order to provide 3,400 square feet of outside play area in connection with the development of a day care facility. Kenneth J. Henderson, Executive Director, Development Department, explained that approval of this item would not impose a cost on the Agency. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 10. ARROWVIEW PLAZA LTD - REFINANCING REOUEST (Communitv Develo.,ment Commission) --, '-'II Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to approve and authorize the Executive Director to draft and execute documents to implement, a restructuring of the Agency's interim construction loan of $900,000 to Arrowview Plaza, Ltd., subject to Chino Valley Bank approval, which, after repayment to the Agency of $400,000 will result in a medium term loan of $500,000 on terms as described in the attached staff report. Commission Member Obethelman expressed concern regarding the current indebtness of Arrowview Plaza Ltd. He questioned the need for the restructuring of the loan as well as the firms credibility . Kenneth J. Henderson, Executive Director, Development Department, answered questions relative to Commission Member Obethelmans' concerns. Michael Geber, Arrowview Plaza Ltd., briefed the Commission on the reasoning for the request presented and answered relative questions. Mr. Henderson stated that the loan guarantee for this item turned into a loan in 1992. He said that the Agency's involvement with this project would terminate in five (5) years or when the building was sold or refinanced, whichever occurs first. ~ 1 ~ JOINT REGULAR MEETING KJH:lmp:cmln12J2 - 6 - COMMISSION MINUTES DECEMBER 20, 1993 r "-' [ r L The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam; Miller. Noes: Commission Member Obemelman; Devlin. Abstain: None. Absent: None. 11. INLAND BEVERAGE - EXTENSION REOUEST (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to approve, and that the Executive Director be authorized to draft and execute a six month extension of the Loan Agreement with Inland Beverage, Inc., subject to Chino Valley Bank approval, in the principal amount of $750,000 and on tenns described in the attached staff report, together with such other documents as are required to carry out the tenns of the Loan Agreement and its extension. Kenneth J. Henderson, Executive Director, Development Department, stated that the Agency was confident it would receive full payment from this loan between May and June of 1994. He explained that Inland Beverage had always been current on its obligations to the Agency. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 12. MOBILE HOME PARK CONVERSION FEASIBILITY STUDY (Communitv Development Commission) Commission Member Hernandez discussed the need to include a provision in the program for new mobilehome parks. Mike Silvennan, De Anza/London Group, stated that the DeAnza/London Group was fonned to conduct the feasibility study. He spoke on the issue of building a new park in the City but indicated that the DeAnza/London Group would not be involved. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:28 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 5:29 P.M. Commission Member Hernandez explained that new parks should be built to accommodate triple-wide trailers who wish to participate in the conversion process. He stated that those trailers were limited to certain parks due to size. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 5:30 P.M. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 5:31 P.M. Kenneth J. Henderson, Executive Director, Development Department, indicated that the building of new parks would be considered throughout the conversion program. JOINT REGULAR MEETING KJH:lmp:cmln12j2 COMMISSION MINUTES DECEMBER 20, 1993 - 7 - Brooks London, De Anza/London Group, explained the process used to detenn ine the starting point for the conversion program. He stated that the DeAnza/London Group would bring back a list of groups for the start of the conversion process in approximately 90 days. .., Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the following motions be approved and adopted: '-"" MOTION A: That the Community Development Commission authorize Phase II of the existing Consultant Agreement with the De Anza/London Group pertaining to the development and implementation of a Mobile Home Park Conversion Program and authorize the Chainnan and Executive Director to execute any documents necessary to effectuate said transaction. MOTION B: That the Community Development Commission authorize De Anza/London Group to undertake all activities appropriate and necessary for the fonnaI development of a Mobile Home Park Conversion Program for all Phase I category Mobile Home Parks. MOTION C: That the Community Development Commission authorize De Anza/London to undertake all activities necessary and appropriate for the fonnaI development of a mobile home park infrastructure and on-site Mobile Home Rehabilitation Program. MOTION D: That the Community Development Commission authorize De Anza/London Group to undertake all activities necessary and appropriate for the fonnaI development of a Mobile Home Park Site Re-use and Resident Relocation Program. .., ~ -J Mel Porter, Citizen, asked the Commission to support staffs recommendation and to aIso consider building new parks within the City. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. END OF CONSENT CALENDAR 13. CIVIL ENGINEERING SERVICES. STATE CONSOLIDATED OFFICES & CAL TRANS BUILDING (Communitv Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Miller, to- authorize the Executive Director to draft and execute a contract with Ludwig Engineering in an amount not to exceed $120,000 for civil engineering services for the design of the State Consolidated Offices and CaItrans Building on the Government Center site, that the Agency's FY 93/94 adopted budget be increased by $120,000 for such services and, further, that the Executive Director be authorized to execute such other documents as are required to carry out the tenns of said contract. -, ......,; JOINT REGULAR MEETING KJH:lmp:cmln12J2 - 8 - COMMISSION MINUTES DECEMBER 20, 1993 r ....... ,.. L r L The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 14. PRECONSTRUCTION COST ESTIMATION SERVICES - STATE CONSOLIDATED OFFICES AND CALTRANS BUILDING (Communitv Development Commission) Commission Member Miller made a motion, seconded by Commission Member Negrete, to authorize the Executive Director to draft and execute a contract with Swinerton & Walberg in an amount not to exceed $70,000 for preconstruction cost estimation and value engineering services for the design of the State Consolidated Offices and Caltrans Building on the Govemment Center site; further, that the Agency's adopted budget be increased by $70,000 for such services and that the Executive Director be authorized to execute such other docwnents as are required to carry out the tenns of said contract. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that no local flnns from San Bemardino had submitted bids for this project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 15. PUBLIC SPACE PLANNING-STATE CONSOLIDATED OFFICES AND CALTRANS BUILDING (Community Development Commission) Commission Member Obethelman made a motion, seconded by Commission Member Miller, to authorize the Executive Director to draft and execute a contract and other necessary documents with Project for Public Spaces in an amount not to exceed $75,000 for public space planning for the design of the State Consolidated Offices and Caltrans Building on the Government Center site, and allocate funds in support of the contract. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that Project for Public Spaces had been retained on several occasions by the Agency to complete work.. He stated that the Agency would be reimbursed the funds used for the space planning by the state. Jeff Wright, P. O. lJox 2341, San Bernardino, CA, expressed concern regarding the amount of funds being spent for the public's benefit. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cmln12j2 COMMISSION MINUTES DECEMBER 20, 1993 - 9 - Arency Administration 16. ADJUSTED WORK WEEK SCHEDULE ...., (Community Development Commission) ~ Stafford W. Parker, Deputy Director, Development Department, discussed the pilot 9/80 program used by the Economic Development Agency. He stated that the start-up period of the program included infonning the public of the Agency's new office hours. Mr. Parker explained that the major benefits accomplished by the 9/80 program was the convenience for citizens to obtain assistance after 4:30 pm., and also meeting the AQMD Standards. He discussed the requirements mandated by the AQMD. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to approve a continuous synchronized "9180" adjusted work week schedule for the Economic Development Agency and authorize the Agency Administrator to make all necessary adjustments to coordinate and synchronize staffing work schedules in the event the City adopts a pilot or pennanent 9/80 schedule. Timothy C. Steinhaus, Administrator, Economic Development Agency, said that the Agency would comply with the action taken by the City regarding its 9/80 schedule. Commission Member Obemelman made a substitute motion, seconded by Commission Member Devlin, to approve a continuous synchronized "9/80" adjusted work week schedule for the Economic Development Agency and authorize the Agency Administrator to make all necessary adjustments to coordinate and synchronize staff work schedules in the event the City adopts a pilot 9/80 schedule for a period of six months. ., ':i l1 -J Commission Member Miller expressed concern regarding the City closing on altemate Fridays. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: Commission Member Miller. Abstain: None. Absent: None. 17. SALVATION ARMY PAYEE PROGRAM (Community Development Commission) (Councilwoman Pope-Ludlam's Recommendation) Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, to continue this item until a funding source could be detennined. Carolyn Carter, Salvation Anny, explained the Salvation Anny Payee Program established in April 1992. She indicated that applicants must have shelter in order to qualify for this program. ~ - JOINT REGULAR MEETING KJH:lmp:cmln12j2 . 10 - COMMISSION MINUTES DECEMBER 20, 1993 r ..... [ [ Commission Member Hernandez felt that since the Salvation Anny assists individuals with maintaining a place to live, the program should qualify for 20% set-aside funds. Timothy Sabo, Special Counsel, Sabo and Green, stated that in order to qualify for the 20% set-aside funds, staff must show how the program provides housing. The Commission took no action on the previous motion to continue. After comments were made by Ms. Carter and Mr. Sabo, a new motion was made. Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the item be continued to January 10, 1994; and that the Economic Development Agency Administrator be directed to meet with the attorney to detennine whether the program provides shelter and with that fact that the program be funded with 20% set aside funds. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 6:02 P.M. Development Department 18. DELINOUENT NOTES AND DEVELOPMENT AGREEMENTS IN DEFAULT (Communitv Development Commission) (Councilman Oberhelman's Recommendation) Kenneth J. Henderson, Executive Director, Development Department, stated that the list included in the staff report showed all agreements the value of same. He said that a vast majority of the delinquencies were for housing assistance. COMMISSION MEMBER HERNANDEZ RETURNED AT 6:03 P.M. Mr. Henderson explained that the Agency held approximately $15,175,000 in loan guarantees which were currently perfonning well. Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the report made by Kenneth J. Henderson, Executive Director, Development Department, be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cmln12j2 COMMISSION MINUTES DECEMBER 20, 1993 - 11 - 19. CALIFORNIA INN SRO (Communitv Development Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to refer this item to the Housing Committee. Commission Member Obemelman commented on the item being referred to various committees. Dennis Barlow, Senior Assistant City Attorney, stated that there must be a specific reason for the item to be referred to another committee. Commission Member Hernandez stated that the item should be referred to the Housing Committee to allow Committee Members to meet with the consultants who provided the Market Analysis. Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed his concern regarding building an SRO in San Bernardino. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: None. RS-l. AMENDMENT OF MOBILE HOME PARK RENT STABILIZATION ORDINANCE (Mayor and Common Council) Councilman Hernandez's Recommendation Councilman Hernandez discussed the urgency of this item. He felt the amendment to the ordinance should be made immediately for the benefit of the mobilehome owners. Councilman Obemelman made a motion, seconded by Councilman Hernandez, to direct the City Attorney's Office to prepare an amendment to the Mobile Home Park Rent Stabilization ordinance which requires mobile home parks to infonn the mobile home board within twenty-four (24) hours of any new rental agreement signed in the park. Discussion ensued regarding the ability of staff to follow-up on this ordinance. Councilman Hernandez expressed concern regarding mobilehome owners not being aware of the 72 hour cancellation period when signing long-tenn leases with park owners. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cmln12J2 - 12 - COMMISSION MINUTES DECEMBER 20, 1993 -.. ! ~ i .-J -, i ....J ~ - r t '- RS-2. FREEWAY HOME CENTER (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to approve a $2.5 million dollar loan guarantee to Allan Steward, Inc., for the purchase and development of the Freeway Home Center project subject to review and approval of Allan Steward's financial capacity, approval by the Community Development Commission of an Owner Participation Agreement and close of escrow within ninety (90) days of Commission approval. Further, that staff be authorized to pay to the Resolution Trust Corporation (RTC) a deposit in the amount of $85,000 with only 75% of such deposit ($63,750) to be repaid by Allan Steward, Inc., to the Agency in the event escrow fails to close. Kenneth J. Henderson, Executive Director, Development Department, explained that there were two motions for this item. The first motion was to approve a loan guarantee, and the second motion was to approve an actual loan for Allan Steward of Steward and Associates. He stated that if Motion B was approved, the Agency would obtain a loan and then reloan those funds to Mr. Steward. r- I i Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Agency L would prefer giving Mr. Steward the loan guarantee. Commission Member Oberhelman expressed concern regarding the lack of infonnation provided for this project. He stated that there was not enough fundamental infonnation to make a decision. Commission Member Pope-Ludlam indicated that this item was thoroughly discussed at the Redevelopment Committee Meeting. Commission Member Hernandez discussed the urgency of this item indicating that a deposit must be made for the property by December 22, 1993. Timothy Sabo, Special Counsel, Sabo and Green, explained the item and stated that Mr. Steward would guarantee 25% of the loan. He said if the direct loan was made, Mr. Steward would be responsible for 100% of the loan if escrow was not closed. He indicated that $25,000 was the most at risk if this item was approved. Mr. Steinhaus stated that the item had been reviewed by the Agency's fmancial consultant. [ Allan Steward, Steward and Associates, explained that he had been working on this project for over a year. He stated that the Agency would receive 25% of the profits gained by the project. He anticipated a 80% lease-up within a year. Discussion ensued regarding the Agency's projections for the project versus the projections of JOINT REGULAR MEETING KJH:lmp:cmin12J2 - 13 - COMMISSION MINUTES DECEMBER 20, 1993 Mr. Steward. --, Commission Member Pope-Ludlam spoke on Mr. Stewards progress within the City on various projects. -' Commission Member Hemandez recommended the Commission adjourn to Closed Session to discuss this item. Dennis A. Barlow, Senior Assistant City Attomey, reminded the Commission that it must discuss real property in Closed Session. Commission Member Oberhelman reitemted his concerns regarding the project. He felt the worse case scenario would be that the Agency would own a shopping center. Phil Harrison, Steward and Associates, commented on the benefit of this project for San Bernardino and the freeway entmnce. He indicated that the Resolution Trust Corpomtion (RTC) was not interested in this property. Chainnan Minor made remarks regarding the funds being used for tenant improvements. COMMISSION MEMBER MILLER WAS EXCUSED AT 6:48 P.M. Mr. Steinhaus confmned that $800,000 would be used for tenant improvements. He stated that the Agency would control the $800,000 approving all costs spent. COMMISSION MEMBER MILLER RETURNED AT 6:49 P.M. --- ;'1 'WIllI Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to approve a $2.5 million dollar loan guarantee to Allan Steward, Inc., for the purchase and development of the Freeway Home Center project subject to review and approval of Allan Steward's financial capacity, approval by the Community Development Commission of an Owner Participation Agreement and close of escrow within ninety (90) days of Commission approval. Further, that staff be authorized to pay to the Resolution Trust Corpomtion (RTC) a deposit in the amount of $85,000 with only 75% of such deposit ($63,750) to be repaid by Allan Steward, Inc., to the Agency in the event escrow fails to close. Kenneth J. Henderson, Executive Director, Development Department, indicated that it was the desire of Mr. Steward to have both motions approved in the event his loan is not approved. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain: None. Absent: None RS-4 AD JOURNMENT At 6:56 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, January 3, 1994 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ~ - JOINT REGULAR MEETING KJH:lmp:cmin12J2 - 14 - COMMISSION MINUTES DECEMBER 20, 1993 r \-, [ [ Respectfully submitted: lG!f..,l.. ~ KENNETHJ.H NDERSON Executive Director! Secretary to the Commission JOINT REGULAR MEETING KJH:lmp:cmln12j2 . 15 . COMMISSION MINUTES DECEMBER 20, 1993 ~ .....; ., ~ WIlli ~ ~ ,.. ~. i '-' r '-- r ..... MA YOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES ADJOURNED REGULAR MEETING January 10, 1994 11:00 a.m. The Adjourned Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chmnbers, City Hall, 300 North "0" Street, San Bemardino, California and called to order by Mayor Tom Minor at approximately 4:03 pm., on Monday, January 10, 1994 . ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David OberlIelman; Jerry Devlin; Valerie Pope-Ludlmn; and Norine Miller. Absent: None. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; David Edgar, Housing Division Manager, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the City not being represented by a Council Member at the SANBAG Meeting. He stated that if the Mayor was unable to attend, a representative should have attended in his absence. Mr. Wright also addressed the issue of a waste center being proposed for the City of Loma Linda. He read a statement printed in The Sun Newspaper which highlighted the medical concerns of a waste center and felt the City should be concerned also. REGULAR MEETING KJH:lmp:cminlrl 1 COMMISSION MINUTES January 10, 1994 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES ~ (Community Development Commission) Commission Member Hernandez questioned why the Salvation Anny Payee Program was not _ placed on the Agenda as indicated in the minutes. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that he met with representatives of the Salvation Anny and Mr. Sabo, and that they were stilI trying to detennine an appropriate funding source for this project. Discussion ensued regarding the appropriate reason for pulling minutes off the consent calendar. Commission Member Oberllelman commented on the two (2) motions listed on Item 17 - Salvation Anny Payee Program, and questioned why there was only one vote count. Commission Member Oberllelman made a motion, seconded by Commission Member Negrete, that the minutes for the meeting of December 20, 1993, be continued until January 24, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Development Department ., ~'l 11 'B ... 2. FY 1993/1994 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENT BETWEEN THE CITY AND FRAZEE COMMUNITY CENTER (Mayor and Common Council) Council Member Hernandez made a motion, seconded by Council Member Oberllelman, that the following resolution be approved and adopted: RESOLUTION NUMBER 93-10 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND FRAZEE COMMUNITY CENTER. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ~ REGULAR MEETING KJH:lmp:cminlrl 2 COMMISSION MINUTES January 10, 1994 - [ END OF CONSENT CALENDAR 3. TRAFFIC IMPACT ANALYSIS STATE CONSOLIDATED OFFICES AND CALTRANS BUILDING (Community Development Commission) Commission Member Pope-Ludlmn made a moHon, seconded by Commission Member Miller, to authorize the Executive Director to develop and execute a contract with Crain and Associates in an mnount not to exceed $67,850 for the preparation of a traffic impact analysis for the State Consolidated Offices and Caltrans building on the government center site; and further, that the Agency's adopted budget be increased by $67,850 for such services and the Executive Director be authorized to execute all other documents required to carry out the tenns of the contract. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Hernandez Group, who was selected to complete the street improvements, was not as qualified as Crain and Associates in traffic studies. He explained that Crain and Associates had a much better understanding of traffic concerns related to the superblock project. Kenneth J. Henderson, Executive Director, Development Department, indicated that out of the seven (7) responses to the RFP, Crain and Associates was selected because they met all requirements. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; r- Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. \- [ 4. AD HOC COMMITTEE. GOVERNMENT CENTER (Communitv Development Commission) (Chairman Minor's Recommendation) Commission Member Miller made a motion, seconded by Commission Member Oberhelman, to fonn an Ad Hoc Committee comprised of COWlcilmembers Negrete, Miller and Oberhelman for the pmpose of reviewing design concepts for the State Consolidated Offices and Caltrans Building 011 the Government Center site. (No vote taken.) Commission Member Pope-Ludlam expressed concern regarding the State Consolidated Offices and Caltrans Building Project. She stated that although the Redevelopment Committee was the designated overseer of the project, it has not been involved with the selection process. She recommended that the Redevelopment Committee act as the Ad Hoc Committee for this project. Commission Member Miller stated that the Ad Hoc Committee had the sam e concerns as the Commission regarding the participation of local vendors. REGULAR MEETING KJH:lmp:cminlrl 3 COMMISSION MINUTES January 10, 1994 Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on previous actions taken in relation to the State Consolidated Offices and Caltrans Building. He ,., discussed the establishment of the Qualifications Review Committee. He explained that the Ad Hoc Committee being requested would only handle architectural matters. ~ Commission Member Hernandez recommended that all Commission Members should be part of the structural design phase of the buildings. Commission Member Negrete made a substitute motion, seconded by Commission Member Curlin, that the Redevelopment Committee review the design concepts for the State Consolidated Offices and Caltrans Building on the Government Center site. Dennis Barlow, Senior Assistant City Attorney, noted that although the Redevelopment Committee would be meeting only to review the design concepts for the buildings, only three Commission Members would be allowed to attend the Redevelopment Committee Meetings. Commission Member Oberhelman requested all final decisions be brought before the full Commission. , The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain: None. Absent: None. 5. CONTINUED FROM NOVEMBER 1. 1993 ARROW VISTA HOUSING DEVELOPMENT PROJECT ... ! 1 -J (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, explained that the Commission previously considered this item in November, 1993. He stated that the matter was continued for 60 days to allow the developer to provide additional infonnation regarding the sales activity and escrows of the Arrow Vista Homes. Mr. Henderson stated that the staff report contained infonnation from Continental Escrow regarding current escrows and carry over escrows. He said that additional infonnation that staff believed was pertinent to this item was also contained in the staff report. Timothy C. Steinhaus, Administrator, Economic Development Agency, said that staff received the infonnation from Mr. John Dukes, Dukes-Dukes and Associates, late Tuesday afternoon, and has not had sufficient time to verify those escrows listed. He requested this item be continued for two (2) weeks for staff to complete this task. Commission Member Oberhelman commented on the previous actions taken by the Commission regarding the Arrow Vista Homes. He indicated that he visited the housing tract and saw no activity of interested home buyers or an open sales office. REGULAR MEETING KJH:lmp:cminlr1 4 COMMISSION MINUTES January 10, 1994 ~ I 1 ...J r i '-- Mr. Steinhaus reiterated the need to have two (2) weeks to verify the accuracy of the infonn ation obtained from Mr. Dukes. Mr. Henderson indicated that the main objective of the 24-hour security service retained for the Housing Project, is to provide security in the evening when the majority of the vandalism occurs. He stated that significant funds were spent to repair the homes before the security service was instituted. He also emphasized the costs incurred by the Agency to maintain the homes. Commission Member Miller made remarks on the previous Agency assistance to Mr. Dukes. She questioned the actions of the Agency, if the Development Agreement was cancelled. Mr. Henderson stated that the Agency would retain a marketing company to sell the standing inventory . Commission Member Miller made a motion, seconded by Commission Member Oberhelman, that the Development Agreement be tenninated. Commission Member Hernandez indicated that there were apparently some homes in escrow. He recommended the Commission allow the Agency two (2) weeks to verify those escrows. Commission Member Pope-Ludlam expressed concern regarding the Agency's inability to verify the escrows before the Commission Meeting. John Dukes, Dukes-Dukes and Associates, briefed the Commission on his procedures for ".... placing homes in escrow. He explained that over 50% of the interested buyers had previous credit ! i problems, but the problems could be resolved. '-- Commission Member Curlin questioned the peocentage of escrows that could possibly be closed. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:06 P.M. Mr. Dukes felt that it was possible for 70% - 80% of the escrows to close. COMMISSION MEMBER OBERHELMAN RETURNED AT 5:07 P.M. Mr. Dukes recommended the Agency be given the two (2) week extension to verify the escrows. Commission Member Curlin questioned the viability of this project. COMMISSION MEMBER HERNANDEZ EXCUSED AT 5:10 P.M. COMMISSION MEMBER HERNANDEZ RETURNED AT 5:11 P.M. Discussion ensued regarding the entire historical background of this project. r .... REGULAR MEETING KJH:lmp:cminlr1 5 COMMISSION MINUTES January 10, 1994 COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 5:12 P.M. COMMISSION MEMBER POPE.LUDLAM RETURNED AT 5:14 P.M. ~ Commission Member Oberllelman reviewed the time, money and technical assistance given to Mr. Dukes over the past year. He spoke on funds being tied-up in this project and not being available .......J for other uses. Commission Member Hernandez discussed the efforts of Mr. Clyde Alexander to build homes in the blighted area. He felt that it would be more difficult for an outsider to sell the homes instead of Mr. Dukes. COMMISSION MEMBER MILLER WAS EXCUSED AT 5:20 P.M. Commission Member Pope-Ludlam commented on Mr. Dukes plans to repay the SBA lien. COMMISSION MEMBER MILLER RETURNED AT 5:25 P.M. Jeff Wright, P. O. Box 2341, San Bernardino, advised the Commission not become involved in real estate activities. Commission Member Hernandez spoke 011 Mr. Dukes efforts to help citizens that live in that area. He again requested the Commission allow staff the two (2) week extension. The motion carried by the following vote: Ayes: Commission Members Curlin; Oberllelman; Devlin; Miller. Noes: Negrete; Hernandez; Pope-Ludlam. Abstain: None. Absent: None. COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 5:27 P.M. -, n WIIIIl All'ency Administration CONTINUED FROM DECEMBER 6.1993 6. ROGER'S BINDERY (Community Development Commission) Commission Member Negrete made a motion, seconded by Commission Member Oberllelman, to continue the matter relating to Roger's Bindery to January 24, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberllelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Commission Member Pope-Ludlam. ....., REGULAR MEETING KJH:lmp:cminlr1 6 COMMISSION MINUTES January 10, 1994 ......., r i..- [ [ 7. LOCAL PREFERENCE CRITERIA (Communitv Development Commission) (Councilman Hernandez's Recommendation) Dennis Barlow, Senior Assistant City Attorney, stated that he had drafted two oIdinances based on requests received from the Mayor's Office and from the Downtown Business Association. Mr. Barlow gave a brief background regaIding local preference oIdinances indicating that the City Attorney's Office had some concerns about this type of ordinance. COMMISSION MEMBER CURLIN WAS EXCUSED AT 5:44 P.M. Commission Member Oberhelman commented on a local preference oIdinance used by the County and recommended the City Attorney's Office discuss this item with County Council. Commission Member Curlin requested this item be continued to allow the Commission sufficient time to review both oIdinances. Commission Member Oberhelman made a motion, seconded by Commission Member Miller, to continue the item until January 24, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman; Devlin; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: Commission Member Curlin; Pope-Ludlam. COMMISSION MEMBER CURLIN RETURNED AT 5:46 P.M. 8. PUBLIC COMMENTS AT CITY COUNCIL/COMMISSION MEETINGS (Communitv Development Commission) (Councilman Curlin's Recommendation) Commission Member Curlin described his proposal for decreasing the time limit allotted for public comments. Jeff Wright, P. O. Box 2341, San Bernardino, felt that this proposal would be an assault on the first am endment and also the Brown Act. He spoke on the need for the public to be allowed to voice its concerns on City business indicated that three (3) minutes was not a sufficient amount of time. COMMISSION MEMBER NEGRETE WAS EXCUSED AT 5:53 P.M. COMMISSION MEMBER NEGRETE RETURNED AT 5:54 P.M. REGULAR MEETING KJH:lmp:cminlrl 7 COMMISSION MINUTES January 10, 1994 Commission Member Curlin stated that after the three (3) minute time limit, the speaker would have the opportunity to request a two (2) minute extension. --, Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin, to amend the existing five-minute public comments time limit on Council/Commission agenda to three ......J minutes. The motion failed by the following vote: Ayes: Commission Members Negrete; Curlin; Pope-Ludlam. Noes: Commission Members Hernandez; ObeIhelman; Devlin; Miller. Abstain: None. Absent: None. Discussion ensued regarding the need to allow the public am pie time to voice their concerns. Commission Member ObeIhelman made a motion, seconded by Commission Member Negrete, to amend the existing five-minute public comments time limit on Council/Commission agenda to three minutes; agenda items limited to three minutes, with possible extension of time of two minutes. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIhelman; Devlin; Pope-Ludlam. Noes: Commission Member Miller. Abstain: None. Absent: None. RS-l. PURCHASE OF CELLULAR PHONES (Communitv Development Commission) -. (Councilman Hernandez's Recommendation) .;1 ~ !! ...J Commission Member Hernandez spoke on the unlimited amount of phone calls received in the Council Office. He expressed a necessity on behalf of the Commission Members to have cellular phones to be able to return or receive calls as needed. Commission Member Devlin commented on the $550 dollar allowance given to Commission Members for expenses. He believed that amount could be used for cellular phones. Commission Member ObeIhelman commented that he uses his allowance for payment on his cellular phone. Dennis Barlow, Senior Assistant City Attorney, explained that the Agency should not pay the total costs for the phone bills since calls will be both Agency and City related. Commission Member Curlin expressed concern regarding the difficulty separating Agency and City calls. Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to pun;hase Cellular Phones for Commission Members. --, REGULAR MEETING KJH:lmp:cminlrl 8 COMMISSION MINUTES January 10, 1994 -J [ [ r .., The motion failed by the following vote: Ayes: Commission Members Negrete; Hemandez; Pope-Ludlam. Noes: Commission Members ObeIhelman; Devlin; Miller. Abstain: Commission Member Curlin. Absent: None. CONTINUED FROM NOVEMBER 1. 1993 5. ARROW VISTA HOUSING DEVELOPMENT PROJECT (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Curlin to reconsider this item. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain: None. Absent: None. Commission Member Curlin stated that he believes the two (2) week extension may prove beneficial for Mr. Dukes. Commission Member Curlin made a motion, seconded by Commission Member Hernandez, to continue this item for two weeks. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain: None. Absent: None. Chainnan Minor requested that Mr. Dukes assist the Agency with its efforts to verify the escrows. Vivian Nash Dukes, Dukes-Dukes and Associates, asked for clarification regarding the two week extension. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the two week extension would be used to verify the individuals in escrow, their deposits, income, and financial situations. Discussion ensued regarding escrow procedures. CLOSED SESSION REGULAR MEETING KJH:lmp:cminlrl 9 COMMISSION MINUTES January 10, 1994 RS-2. ADJOURNED TO CLOSED SESSION At 6:37 pm., the Mayor and Common COWlcil and CommWlity Development Commission recessed to Closed Session for the following: B. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b)(1), as there is significant exposure to litigation; C. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(c), so that the Commission may decide whether to initiate litigation; END OF CLOSED SESSION RS-3. ADJOURNMENT At 7:00 pm., the meeting of the Mayor and Common COWlcil/Community Development Commission was adjourned to Monday, January 24, 1994 at 11:00 am., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. Respectfully submitted: ~~ KENNETHJ.H~NDERSON Executive Directorl Secretary to the Commission REGULAR MEETING Km:lmp:cminlrl 10 COMMISSION MINUTES January 10, 1994 ~ ~ ~ ....." ..., ! i -....II ,.... '-- ,,- , I I ..... r- 4' .... MAYORANDCOMMONCOUNca COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO MINUTES JOINT ADJOURNED REGULAR MEETING January 24, 1994 11:00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 3:26 pm., on Monday, January 24, 1994, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberllelman; Jerry Devlin; Valerie Pope-Ludlam; Norine Miller. Absent: None ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; David Edgar, Housing Division Manager, Development Department; James Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Roger Hardgrave, Director of Public Worlcs; Rachel Clark, City Clerlc; Melanie Vale, Deputy City Clerlc; La Vonda M- Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper. CLOSED SESSION 11. ADJOURN TO CLOSED SESSION At 3:27 pm., the Mayor and Common Council and the Community Development Commission adjourned to closed session to discuss the following: B. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b )(1), as there is significant exposure to litigation; C. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(c), so that the Commission may decide whether to initiate litigation; JOINT REGULAR MEETING KJH:lmp:cminIJ2 COMMISSION MINUTES JANUARY 24, 1994 - 1 - MEETING RECONVENED ~ At 4:50 pm., the meeting of the Mayor and Common COWIcil and the CommWIity Development Commission was reconvened. - ROLL CALL Roll call was taken with the following members present: Chaionan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; Norine Miller. Absent: None ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; David Edgar, Housing Division Manager, Development Department; James Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Roger Hardgrave, Director of Public WoIks; Rachel Clark, City CleIk; Melanie Vale, Deputy City CleIk; La Vonda M- Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special COWIsel, Sabo and Green; Richard Brooks, The SWI Newspaper. ANNOUNCEMENT -. Chaionan Minor annoWIced that during the Closed Session deliberations, a possible agreement ....;i had been reached regarding Item #10 - Arrow Vista Housing Development Project. He stated that the item would be continued WItil the agreement was complete. PUBLIC COMMENTS NOT ON THE AGENDA Jerry Gilbert, 3393 Del Rey, San Bernardino, CA, commented on the morning session of the meeting and stated that he and several college students sympathized with the Commission in dealing with certain members of the public. He concurred with the Commission's efforts to limit the public speaking time to three (3) minutes. Jeff Wright, P. O. Box 2341, San Bernardino, CA, commented on the public's inability to obtain infonnation regarding Closed Session items. Commission Member Curlin thanked Mr. Gilbert for his comments and emphasized that the time limit restrictions would Dot infringe a persons right to speak. CONSENT CALENDAR The Commission Members requested that items numbered "4" and "6", be removed from the Consent Calendar. .... - JOINT REGULAR MEETING KJH:lmp:cmlnIJ2 - 2 - COMMISSION MINUTES JANUARY 24,1994 / Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, .... that the Consent Calendar items nwnbered "1" through "6" be adopted except for items numbered "4" and "6", respectively. ..... ,..- t i '-' ...... ..... \ \ '" The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 1. JOINT POWERS FINANCING AUTHORITY (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, February 21, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. CONTINUED FROM JANUARY 10. 1994 2. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, that the minutes of the Community Development Commission of the City of San Bernardino for the meetings of December 20, 1993 be approved as submitted in typewritten foan. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 3. REDEVELOPMENT COMMITTEE MINUTES (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meetings of December 9, 1993 and January 6, 1994 be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cmlnlJ2 - 3 - COMMISSION MINUTES JANUARY 24, 1994 Development Department ,..... 5. HOUSING DIVISION OUARTERLY ACTIVITY REPORT ........ (Community Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Curlin, to receive and file the attached Housing Division Quarterly Activity Report for the months of October, November and December 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. Public Works Department 4. ADVERTISE FOR BIDS. INST ALLA TION OF LANDSCAPING IN MEDIAN IN HIGHLAND A VENUE (Community Development Commission) Commission Member Devlin asked if the City of Highland would pay its fair share for this project. .... Roger Hardgrave, Director of Public WOIks, stated that Highland had not committed at this time. He explained that a draft agreement was sent to Highland, but no response has been received. .... Jeff Wright, P. O. Box 2341, San Bernardino, had questions regarding Caltrans and Wal-Mart's fair share portion of this project. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the funds provided for this project were tax allocation bond proceeds. He stated that the City agreed to pay up to $800,000 for this project. Commission Member Obemelman made a motion, seconded by Commission Member Miller, that the plans for installation of landscaping in the median in Highland Avenue, from Piedmont Drive to Boulder Avenue, in accordance with Plan No. 9044, be approved, and the Director of Public WOIks/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Obemelman; Devlin; Pope-Ludlmn; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: None. ~ - JOINT REGULAR MEETING KJH:lmp:cmlnlJ2 .4. COMMISSION MINUTES JANUARY 24, 1994 / Development Department ~ 6. MACY/BLAKE SEWER PROJECT ....., (Mayor and Common Council) Jeff Wright, P. O. Box 2341, San Bernardino, asked if the residents would have to pay sewer hook-up fees for this project. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER 94.20 RESOLUTION OF TIlE MAYOR AND COMMON COUNCIL OF TIlE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING TIlE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN TIlE CITY OF SAN BERNARDINO AND TIlE COUNTY OF SAN BERNARDINO. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that this item was for sewer repair only. There would be no new sewer line installed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: r- None. ..... END OF CONSENT CALENDAR Ae-ency Administration CONTmUEDFROMIANUARYILl~4 7. LOCAL BID PREFERENCE CRITERIA (Mavor and Common Council) (Communitv DevelQpment Commission) Commission Member Miller made a motion, seconded by Commission Member Negrete, to continue the matter of Local Bid Preference Criteria to February 7, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ........ .... JOINT REGULAR MEETING KJH:lmp:cmlnlJ2 - 5 - COMMISSION MINUTES JANUARY 24, 1994 Public Works Department .... 8. HANDICAPPED RAMPS - VARIOUS LOCATIONS ...... (Mavor and Common Council) Commission Member Hemandez made a motion, seconded by Commission Member Oberhelman, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-21 RESOLUTION OF THE CITY OF SAN BERNARDINO RESCINDING RESOLUTION 93- 360 AWARDING A CONTRACT TO B-1 ENTERPRISE CORPORATION; AND AWARDING A CONTRACT TO WEST COAST CONSTRUCTION FOR INSTALLATION OF HANDICAPPED RAMPS AT VARIOUS LOCATIONS. Roger Hardgrave, Director of Public Works, explained past problems in dealing with B-1 Enterprise on this project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ..... 9. CONTINUED FROM DECEMBER 20.1993 SALVATION ARMY SUBSTITUTE PAYEE PROGRAM ....... (Mayor and Common Council) Councilman Hernandez made a motion, seconded by Councilman Oberhelman, that the following resolutions be approved and adopted: RESOLUTION NUMBER 94-22 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE SALVATION ARMY EMERGENCY SHELTER PROGRAM; AND AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND THE SALVATION ARMY SAN BERNARDINO CORPS., TO BE DRAFfED IN CONFORMANCE WITH THE ATTACHED STAFF REPORT. RESOLUTION NUMBER 94-23 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE A FIRST AMENDMENT TO THE CDBG FRAZEE COMMUNITY CENTER PUBLIC SERVICES AGREEMENT BY AND BETWEEN THE CITY AND FRAZEE COMMUNITY CENTER. IIlIIIII - JOINT REGULAR MEETING KJH:lmp:cminlj2 - (; . COMMISSION MINUTES JANUARY 24, 1994 / r ...... Kenneth J. Henderson, Executive Director, Development Department, explained that the Community Development Block Grant (CDBG) funds taken from Frazee for the Salvation Anny would be replaced by Home Program funds. He said that since Frazee is a HOME Program Community Housing Development Organization (ClIDO) Project, it would qualify for those funds. Timothy Sabo, Special Counsel, Sabo and Green, indicated that this transaction was legal. He stated that after discussions with the Salvation Anny regarding its program, it was deteunined that CDBG funds were the only funds applicable for use. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Devlin; Pope-Ludlam; MiHer. Noes: None. Abstain: None. Absent: None. Development Department CONTINUED FROM .JANUARY 10. 1994 10. ARROW VISTA HOUSING DEVELOPMENT PRO.JECT (Community Development Commission) Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, that this item be continued to February 7, 1994. ,..... The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; I Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Obethelman. Abstain: None. ...., Absent: None. 12. AD.JOURNMENT At 5:13 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, February 7, 1994 at 11:00 am., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RespectfuHy submitted: KENN~~lNDERSON Executive Directorl Secretary to the Commission r i ~ ...... JOINT REGULAR MEETING KJH:lmp:cmlnlJ2 .7- COMMISSION MINUTES JANUARY 24, 1994 ~ , ,""""" .... :1 \~ '-"'" ---.. ....... [ [ [ - MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING February 7, 1994 11:00 a.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chambers, City Hall, 300 North "D" Street, San Bemardino, California and called to order by Mayor Tom Minor at approximately 12:26 pm., on Monday, February 7, 1994 . ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; John Hoeger, Project Manager, Development Department; Emily Wong, Project Manager, Development Department; Laura Muna-Landa, Development Specialist, Development Department; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator, Roger Hardgrave, Director of Public Wotks; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Cletk; Suzanna Cordova, Deputy City Cletk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Steve Davies, Project for Public Spaces; Fred Kent, Project for Public Spaces; Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. 11. DOWNTOWN PLAN - LUNCHEON WORKSHOP - MIC ROOM (Commun,tv Development Commission) Kenneth J. Henderson, Executive Director, Development Department, introduced Project for Public Spaces, summarized the actions taken since the Downtown Plan was adopted and described the need for updating the plan. He described the l'enderings displayed in the mom. REGULAR MEETING KJH:lmp:cmin2rl COMMISSION MINUTES February 7, 1994 1 " .... Fred Kent, Project for Public Spaces, discussed the projects that had already been implemented since 1992. " Steve Davies, Project for Public Spaces, showed slides of San Bernardino, both past and present in comparison with other cities. He discussed ways to improve the sites downtown in conjunction with the State Consolidated Offices and Caltrans Building. COMMISSION MEMBER MILLER WAS EXCUSED AT 12:35 P.M. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 12:50 P.M. Mr. Davies discussed possible locations for a Perfonning Arts Center and the California fun Single Room Occupancy (SRO) project. Commission Member Hernandez expressed concern regarding the proposed SRO being removed from its present site. Mr. Kent explained that PPS felt an SRO would be better suited if located off of the main thoroughfare in downtown. He recommended it be placed in a more residential location. Commission Member Pope-Ludlam questioned the location of a baseball stadium in the City. Mr. Kent stated that it is possible to locate a stadium in the downtown area. Discussion ensued regarding the locating of a small scale IMAX Theater in San Bernardino. Commission Member Pope-Ludlam discussed the complaints received by citizens regarding the diagonal parking on "E" Street. Mr. Kent explained that in order to draw attention to the downtown area, traffic would need to slow down. Mr. Kent also addressed the need to have the signage project completed for the downtown area. The luncheon wotkshop was recessed until 2:00 pm. MEETING RECONVENED The Regular Meeting of the Mayor and Common Council and the Community Development Commission was reconvened by Mayor Tom Minor at approximately 3:32 pm., on Monday, February 7, 1994 . ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David OberlIelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. REGULAR MEETING KJH:lmp:cmin2r1 2 COMMISSION MINUTES February 7, 1994 ] ,., J -... i Ii .~ ~ ....; ST AFF PRESENT [ Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerlc; Suzanna Cordova, Deputy City Clerlc; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Warner Hodgen, Citizen, discussed and read portions from a letter written by him and submitted to the Mayor and Common Council dated February 7, 1994, regarding the Mayor's comments on a proposed Baseball Stadium to be located in San Bernardino. Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the time limit placed on citizens addressing the Commission for public comments and agenda items. He recommended the Commission repeal its prior action approving the time limit until the Council made a decision on its request for same. r-' The Commission Members requested items numbered "2", "4", "5" and "6" be removed from l the Consent Calendar. [ '-- Commission Member Obemelman made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items numbered "I" through "6" be adopted except for items numbered "2", "4", "5" and "6", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Communitv Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Hernandez, that the minutes of the Community Development Commission of the City of San Bernardino for the meetings of January 10, 1994 and January 24, 1994 be approved as submitted in typewritten foOD. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: ,.... None. ~ l I i .... REGULAR MEETING KJH:lmp:cmin2rl 3 COMMISSION MINUTES February 7, 1994 3. INTERCEPTOR SEWER AT BLAKE STREET AND MACY STREET (Mayor and Common Conncil) ., ~ i ~ ...J Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-28 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO STANLEY F. YELICH, INC., FOR MODIFICATION OF INTERCEPTING SEWER AT BLAKE STREET AND MACY STREET. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Public Works 2. TRAFFIC DIVERTERS IN HIGHLAND/ARDEN AREA (Communitv Development Commission) Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the amount of funds spent in the Arden Guthrie Project Area. J Commission Member Oberhelman made a motion, seconded by Commission Member Miller, that the following resolution be approved and adopted: RESOLUTION NUMBER 5388 RESOLUTION OF TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE CITY OF SAN BERNARDINO A WARDING A CONTRACT TO LAIRD CONSTRUCTION COMPANY, INC., FOR INSTALLATION OF LANDSCAPE IMPROVEMENTS ON NEWCOMB, MCKINLEY AND DUMBARTON STREETS, BETWEEN TWENTIETH STREET AND HIGHLAND AVENUE. Commission Member Oberhelman made a motion, seconded by Commission Member Pope- Ludlam, to authorize staff to develop and issue a pun;hase order to East Valley Water District in the amount of $137,000 which provides for the location of eight (8) fire hydrants required as a result of the proposed Arden Guthrie Street closures. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETING KJH:lmp:cmin2rl 4 COMMISSION MINUTES February 7, 1994 .., ~ W .~ ......J Development Department [ 4. EMPLOYEE COMPUTER PURCHASE PROGRAM lCommnnitv Development Commission) Commission Member ObeIbelman asked if the computers purchased by Agency employees would be comparable to Agency computers. Kenneth J. Henderson, Executive Director, Development Department, explained that the computers purchased by Agency employees would be comparable to Agency computers. Commission Member Hernandez made a motion, seconded by Commission Member Curlin, to approve and adopt a Employee Computer Purchase Program for Economic Development Agency Employees and increase the FY 93/94 EDA budget by $135,000. Commission Member Pope-Ludlam indicated that during the Redevelopment Committee meeting, it was discussed that the Agency receive bids for this program. Mr. Henderson explained that a presentation was made at the Committee meeting from Professional Computing, a local computer consulting finn. He stated that staff visited the site of the finn and recommended the item remain the same. Mr. Henderson briefed the Commission on the purchase program procedures stating that r payments would be made to the Agency by its employees on a semi-monthly basis through payroll I deductions. f ~ Discussion ensued regarding the City's participation in such a plan. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; ObeIbelman; Miller. Noes: Commission Members Devlin; Pope-Ludlam. Abstain: None. Absent: None. 5. 1994-1995 COMMUNITY DEVELOPMENT BLOCK GRANT lCDBG) PROGRAM MIX AND PROGRAM OBJECTIVES lMavor and Common Council) Councilman Hernandez questioned the budget for this program and also the program management costs. Kenneth J. Henderson, Executive Director, Development Department, discussed those items paid for out of these funds. r I ~ Councilman ObeIbelman expressed concern regarding the funds needed to support the program. He questioned whether or not the program was justifiable. REGULAR MEETING KJH:lmp:cmin2r1 5 COMMISSION MINUTES February 7, 1994 Timothy C. Steinhaus, Administrator, Economic Development Agency, reiterated the cost and the need for the program stating that he would provide the Council with a breakdown of all funds connected to this program. ] Mr. Steinhaus indicated that the Agency was requesting approval of this item in order to receive applications from individuals for the upcoming 1994/1995 CDBG program year. Councilwoman Miller made a mOlion, seconded by Councilman Negrete, to approve the 1994- 1995 CDBG Program Mix and Program Objectives, and authorize staff to solicit applications for the 1994-1995 funding cycle. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman Devlin. Abstain: None. Absent: None. CONTINUED FROM .JANUARY 24. 1994 6. ARROW VISTA STANDING INVENTORY (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to tenninate the development agreement. The motion failed by the following vote: Ayes: Commission Members Obedlelman; Devlin; J.......... Miller. Noes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Abstain: None. ". Absent: None. Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that staff attempted to develop a tennination agreement between the developer and the Agency but was unsuccessful. Commission Member Oberhelman made a substitute motion, seconded by Commission Member Devlin, to file a breach of contract and request the development agreement be tenninated. (No vote taken) Discussion ensued regarding the agreement approved at the last week between the developer and the Agency. Commission Member Hernandez requested copies of that agreement. Commission Member Pope-Ludlam made a substitute motion, seconded by Commission Member Negrete, to continue the matter regarding the Arrow Vista Standing Inventory to February 21, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Oberhelman; Devlin. Abslain: None. Absent: None. REGULAR MEETING KJH: Imp: cmin2rl 6 COMMISSION MINUTES February 7, 1994 ] END OF CONSENT CALENDAR [ RECESSED MEETING At 4:18 pm. Chainnan Minor recessed the meeting of the Mayor and Common Council and the Community Development Commission for ten (10) minutes. MEETING RECONV~NED The Regular Meeting of the Mayor and Common Council and the Community Development Commission was reconvened by Mayor Tom Minor at approximately 4:32 pm., on Monday, February 7, 1994 . ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberllelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; r Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording ! Secretary, Development Department. L.- OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. Mayor Minor explained that due to the number of individuals present to speak on certain items of the agenda, the remainder of the agenda would be taken out of sequence. 10. SAN BERNARDINO CIVIC LIGHT OPERA - CALIFORNIA THEATRE (Community DevelQpment Commission) Chainnan Minor gave a brief ovelView of the previous actions related to the Civic Light Opera. He spoke of actions necessary in order to resolve the delinquent CLO loan. He stated that the Commission could forgive the loan, purchase the CLO, make the loan a grant or proceed with foreclosure. He recommended the Commission elect to purchase the California Theatre from the CLO. r ! I ~ REGULAR MEETING KJH:lmp:cmin2rl 7 COMMISSION MINUTES February 7, 1994 Keith Stava, General Manager, CLO, indicated that the CLO would like to sell the theatre to the Agency. Commission Member Curlin asked how the foreclosure would affect the operations of the CLO. Mr. Stava explained that all of the CLO assets were tied up in the theatre. If the Commission elected to foreclose on the building, the CLO would have nothing left. He stated that the CLO was more then willing to sell the theatre. Mr. Stava stated that the CLO had invested approximately $750,000 in capital improvements in the theatre. Commission Member Miller voiced her concern regarding loaning the CLO funds for its operations and the CLO still not peIfonning. Mr. Stava discussed necessities needed in the building such as fire sprinklers in various areas and also things needed in order to eliminate the debt of the theatre. Warner Hodgdon, Citizen, emphasized how the theatre was an important part of the City. He offered his services to the City in assisting with the development of a plan for the CLO. COMMISSION MEMBER CURLIN WAS EXCUSED AT 4:58 P.M. COMMISSION MEMBER CURLIN RETURNED AT 4:59 P.M. Commission Member Oberhelman discussed ways to resolve the CLO delinquent loan. Commission Member Oberhelman made a motion, seconded by Commission Member Miller, to leave the foreclosure action in place, continue this item until the first meeting in March, and to authorize the Chainnan to appoint an Ad Hoc Committee to initiate negotiations with the CLO. (No vote taken) Sam Catalano, Carousel Mall, spoke of previous actions dealing with the California Theatre. Evlyn Wilcox, Board of Directors, CLO, discussed the need of the CLO to sell an asset, appraised at $700,000. Steven Brown, 1231 Michigan Street, Grand Terrace, discussed his employment with the CLO and the importance of keeping the theatre open. Scott Lane, 448 South Eureka, San Bernardino, indicated the necessity to act quickly on this item so that the CLO would not lose any additional capital. Mr. Stava stated that each day that the CLO is closed causes more difficulties. He explained that although it has shows scheduled each month, it has postponed its spring session due to the lack of funding. REGULAR MEETING KJH:lmp:cmin2rl 8 COMMISSION MINUTES February 7, 1994 , ,D ..." ,., J -, i ...J [ ",..... , ~ ~ L Dr. Chuck Terrell, San Bernardino Schools, recommended that the motion read be amended to suspend the foreclosure pending the report from the Ad Hoc Committee. He offered various solutions to the concerns voiced by the Commission Members and offered his services to assist them as needed. Commission Member Hernandez recommended a neutral committee operate the CLO in the event the Agency purchases the property. Commission Member Pope-Ludlam reitemted on the need to preserve the California Theatre. She recommended the Commission act quickly on this item and also that an audit be conducted of the CLO. Chaiunan Minor requested the Commission to authorize him to negotiate the sale of the CLO to the Agency for $500,000 minus the $100,000 currently owed to the Agency. He explained that the funds used to purchase the CLO could be taken from the $1 million set-aside for the Petfouning Arts Center. Commission Member Miller explained that the CLO could never become as established as an Petfouning Art Center due to its size. Jeff Wright, P. O. Box 2341, San Bernardino, California, recommended that benefit concerts be held at the CLO to raise funds for support. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 5:39 P.M. COMMISSION MEMBER HERNANDEZ RETURNED AT 5:43 P.M. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin, to select an auditor to review the books of the CLO, and to deteunine the actions needed to re-open the theatre for the spring session. The motion failed by the following vote: Ayes: Commission Members Curlin; Pope-Ludlam; Devlin. Noes: Commission Members Negrete; Hernandez; ObeIhelman; Miller. Abstain: None. Absent: None. Discussion ensued regarding the need and assignment for the Ad Hoc Committee. Commission Member Negrete recommended that the item be brought back on March 7, 1994, if nothing could be accomplished by February 21, 1994. Commission Member ObeIhelman made a motion, seconded by Commission Member Miller, to receive and file the attached correspondence from the San Bernardino Civic Light Opera Association; that the foreclosure proceedings be suspended; that the matter be continued to February 21, 1994 with the option to continue to March 7, 1994; that the Mayor appoint an Ad Hoc Committee consisting of members of the Community Development Commission, members of the Civic Light Opera Executive Board and members of the community independent of the Community Development Commission and Civic Light Opem; and that negotiations be initiated with the Civic Light Opera. REGULAR MEETING KJH:lmp:cmin2rl 9 COMMISSION MINUTES February 7, 1994 The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; ~::~~m:~~eVlin; Pope-Ludlam; Miller. Noes: Commission Member Curlin. Abstain: None. 1 Chainnan Minor appointed Commission Member Negrete and Commission Member Miller to ...,., sit on the Ad Hoc Committee. RECESSED MEETING At 6:02 pm. Chainnan Minor recessed the meeting of the Mayor and Common Council and the Community Development Commission for ten (lO) minutes. MEETING RECONVENED The Regular Meeting of the Mayor and Common Council and the Community Development Commission was reconvened by Mayor Tom Minor at approximately 6:12 pm., on Monday, February 7, 1994 . ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. ST AFF PRESENT , """" Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. RS-l. SAN BERNARDINO BASEBALL STADIUM (Mavor and Common Council) (Community Development Commission) Mayor Minor stated that in lieu of additional infonnation just received regarding the baseball stadium, he would like to continue the item until February 21, 1994. -, REGULAR MEETING KJH:lmp:cmin2r1 10 COMMISSION MINUTES February 7, 1994 ~1 ~ -J -J Commission Member Hemandez made a motion, seconded by Commission Member Devlin, to "",... continue this item until February 21, 1994. .... The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberllelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Curlin. Absent: None. 8. FREEW A Y HOME CENTER (Communitv Development Commission) (Redevelopment Committee Recommendation) Kenneth J. Henderson, Executive Director, Development Department, stated that on December 20, 1993, the Commission took action directing staff to work with Steward and Associates for the purchase of the Freeway Home Center. He explained that staff and Mr. Gene Wood, Consultant, had attempted to assist Steward and Associates in obtaining a loan guarantee for the $2.5 million, but due to insufficient cash flow, low occupancy factor and non fee simple property, a loan guarantee could not be acquired. Mr. Henderson stated that the RTC had agreed to offer Ofinancing to Mr. Steward, Steward and Associates, for the purchase of this property. He indicated that the Agency would not have to guarantee the RTC loan, only the portion of funds provided by Mr. Steward. ,....... Timothy C. Steinhaus, Administrator, Economic Development Agency, again explained that the loan from RTC was just learned by staff earlier that morning. He indicated that if the loan does ""- not close prior to February 28, 1994, it would cost $50,000 to extend the escrow. Al Steward, Steward and Associates, emphasized that the Agency would only have to guarantee the 20% down payment required for the loan. He indicated he would like for the Commission to approve the fODD motion in the event a problem arose with the RTC loan. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 6:20 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 6:21 P.M. Mr. Henderson explained that if the Commission wished to approve a pass-through loan to Mr. Steward, it could be done in connection with the fODD motion on the agenda. Discussion ensued regarding the loan teDDs for RTC and the Agency. Commission Member Devlin made a motion, seconded by Commission Member Oberllelman, to continue this item until February 21, 1994. The motion failed by the following vote: Ayes: Commission Members Oberllelman; Devlin; Miller. Noes: Commission Members Negrete; Curlin; Hemandez; Pope-Ludlam. Abstain: None. Absent: None. .-- '--' REGULAR MEETING KJH:lmp:cmin2r1 11 COMMISSION MINUTES February 7, 1994 Mr. Steinhaus indicated that staff would like to explore the option of the RTC loan before obtaining a pass through loan for Mr. Steward. ..... Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to authorize and direct staff to submit a $2.5 million loan application to a private lender for the pwpose of reloaning such loan proceeds to Allan Steward, Inc., with the wlderstanding that the loan application submitted by staff will make up only the difference between the acquisition price of $2.5 million and the RTC financing with all of the above subject to review and approval of Allan Steward's financial capacity, approval by the Community Development Commission of an Owner Participation Agreement, execution of a personal guarantee by Allan Steward, and authorize staff to submit $50,000 to extend escrow and Allan Steward would personally guarantee payment of that money. ... COMMISSION MEMBER MILLER WAS EXCUSED AT 6:34 P.M. Mr. Steward explained that he would prefer to have both the above motion and the fOOO motion listed on the Agenda approved in the event he experiences difficulty with the RTC loan. COMMISSION MEMBER MILLER RETURNED AT 6:36 P.M. Mr. Steinhaus indicated that staff could bring this item back to the Commission on February 21, 1994, in the event the RTC loan was not approved. Gene Wood, E. H. Wood and Associates, explained that his only involvement with this item was attempting to find loan guarantee financing for Mr. Steward. He gave comments on his personal ... opinion regarding this type of a loan. Mr. Steward briefed the Commission on various project that he brought to the City of San Bernardino. WIIIJJfJIIII The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain: None. Absent: None. CONTINUED FROM .JANUARY 24.1994 7. LOCAL BID PREFERE~CE (Mayor and Common Council) (Communitv Development Commission) Mayor Minor explained that due to the length of the meeting, an individual who was present to speak to this item had to leave. He requested this item be continued to the next meeting. Commission Member Obemelman made a motion, seconded by Commission Member Negrete, that this item be continued to February 21, 1994. REGULAR MEETING KJH:lmp:cmin2rl .... 12 COMMISSION MINUTES February 7, 1994 - ) ,.... I ....... "...... ~ ,..... 'l..... I. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Curlin. Absent: None. 9. U. S. BANKRUPTCY COURT RETENTION COMMITTEE (Community Development Commission) (Redevelopment Committee Recommendation) Discussion ensued regarding suggestions for the Bankruptcy Court Retention Committee. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to approve the attached list submitted by its Redevelopment Committee for the purpose of establishing a U. S. Bankruptcy Court Retention Committee, with the deletion of Council Members Hernandez & Pope-Ludlam, and that Council Members Devlin and Miller be added. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. CLOSED SESSION 12. ADJOURN TO CLOSED SESSION At 6:58 pm. the Mayor and Common Council and Community Development Commission recessed to Closed Session for the following: D. to give instruction to the Commission's negotiator on the purchase of property pursuant to Government Code Section 54956.8. The real property which the negotiations concern is generally located at: 402 North "0" Street: END OF CLOSED SESSION 13. AD JOURNMENT At 7:10 pm., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, March 7, 1994 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. . Respectfully submitted: REGULAR MEETING KJH:lmp:cmin2r1 COMMISSION MINUTES February 7, 1994 13 KENNETHJ.HENDERSON Executive Director! Secretary to the Commission ..... ...... IIIIlIII ... IIIIlIII REGULAR MEETING KJH:lmp:cmin2r1 14 COMMISSION MINUTES February 7, 1994 - ) 13. ADJOURNMENT r- At 7:10 pm., the meeting of the Mayor and Common Council/Community Development '-- Commission wa~ adjourned to Monday, March 7, 1994 at 11:00 am., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: b4A1 KENNETHJ.H NDERSON Executive Director! Secretary to the Commission ,...... 1......0 ""..... -- REGULAR MEETING KJH:lmp:cmin2r1 14 COMMISSION MINUTES February 7, 1994 JIIIII!I ........ .... ....... - ....... ) J r .... [ [ ~ l MAYOR AND COMMON COUNCn. COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO MINUTES JOINT REGULAR MEETING February 21, 1994 11:00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 11 :29 a.m., on Monday, February 21, 1994, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLLCALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Norine Miller. Absent: Dr. F. J. Curlin; Valerie Pope-Ludlam. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; David Edgar, Housing Division Manager, Development Department; John Hoeger, Project Manager, Development Department; Dennis Barlow, Senior Assistant City Attorney; Fred Wilson, Assistant City Administrator; Ray Salvador, Administrative Assistant; Mayor's Office; Lorraine Velarde, Executive Assistant to the Mayor; Sandra Medina, Administrative Operations Supervisor n, City Clerk's Office; Diane Jones, Deputy City Clerk; La V onda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper. PUBLIC COMMENTS NOT ON THE AGENDA Jeff Wright, P. O. Box 2341, San Bernardino, CA, requested the Commission set its time limitations on public comments back to five (5) minutes, consistent with that of the Council. Mr. Wright also commented on a pothole located in front of the County Law Library. He recommended the hole be repaired before the City is faced with a liability suit. Mr. Wright ended his comments informing the public of a Base Restoration Meeting to be held on March 9,1994 at 7:00 p.m.. COMMISSION MEMBER POPE.LUDLAM ARRIVED AT 11:30 A.M. JOINT REGULAR MEETING KJH:lmp:cmln2J2 COMMISSION MINUTES FEBRUARY 21, 1994 -1- Denis LaBine, Coordinator, 42nd Congressional District, Congress Candidate, informed the Commission and Citizens that he would like to make himself available to answer any questions regarding the base closure. CONSENT CALENDAR The Commission Members requested that items numbered "2", "4", "5" and "6", be removed from the Consent Calendar. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that the Consent Calendar items numbered "1" through "6" be adopted, except for items numbered"2", "4", "5" and "6", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 1. JOINT POWERS FINANCING AUTHORITY (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin. that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, March 21, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 3. REDEVELOPMENT COMMITTEE MINUTES (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin. that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of January 19, 1994 be received and filed. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 2. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Develo,pment Commission) Warner Hodgdon, Citizen, indicated that the statement he read at the meeting of February 7,1994, was from a letter he wrote to the Mayor dated February 7, 1994 and not from The Sun Newspaper as indicated in the minutes. Commission Member Oberhelman indicated that Commission Member Miller's vote was JOINT REGULAR MEETING KJH:lmp:cmJn2J2 .2. COMMISSION MINUTES FEBRUARY 21, 1994 -., 1 I ~ --- J -, . I ..-J ",... I ~ r- i , L-. inadvertently left off of Item Number 6 on Page 6. Commission Member Hernandez made a motion, seconded by Commission Member Miller, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of February 7, 1994, be approved as amended. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. Development Department 4. PROPOSED TRAFFIC MODELER POSITION (Community DevelQpment Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to approve funding of the proposed Traffic Modeler Position in the Traffic Engineering Division of the Public Works Department in an annual amount not to exceed $26,000. Further, that the FY 93194 Economic Development Agency Budget be increased accordingly. Jeff Wright, P. O. Box 2341, San Bernardino, CA, asked for the job description for a Traffic Modeler. Kenneth J. Henderson, Executive Director, Development Department, explained that this item was submitted by the Traffic Engineering Division for this position. He stated that the individual would establish a traffic and circulation impact model for San Bernardino which would be updated annually. Dennis A. Barlow, Senior Assistant City Attorney, explained that the funds requested could be used for the purpose of financing for this position. The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Curlin. 5. APPLICATION FOR FEDERAL EMERGENCY SHRLTER GRANT PROGRAM lESGP) FUNDING FOR FY 1994-1995 ~or and Common Council) Council Member Oberhelman made a motion, seconded by Council Member Hernandez, to approve submittal of the attached Department of Housing and Urban Development (OOD) application for $89,000 in FY 1994-95 Emergency Shelter Grant Program (ESGP) Assistance funds and authorize the Mayor and City Clerk to then execute any documents necessary to effectuate receipt of said funds. ,-. ; Kenneth J. Henderson, Executive Director, Development Department, indicated that the staff report '" listed the proposed uses for this project. He explained that the service providers would be selected through iI..,., JOINT REGULAR MEETING KJB:lmp:cmln2J2 -3- COMMISSION MINUTES FEBRUARY 21, 1994 an RFP process and that final funding approval would be approved by the Council. ,.... The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Council Member Curlin. ....., Agency Administration 6. AMENDMENT TO THE AGENCY'S CONFLICT OF INTEREST CODE RELATIVE TO THE REQUIREMENT FOR FILING STATEMENT OF ECONOMIC INTEREST FORMS (Community DevelQpment Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Miller, that the following resolution be approved and adopted: RESOLUTION NUMBER 5389 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AMENDING RESOLUTION NO. 4420 (AS AMENDED BY RESOLUTION NOS. 4852, 5048, 5057 AND 5356) ENTITLED, IN PART, "RESOLUTION. . . . ADOPTING A CONFLICT OF INTEREST CODE. . .", BY AMENDING APPENDIX "AIf TO ADD THE REQUIREMENT THAT CONSULTANTS TO THE ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MUST FILE STATEMENTS OF ECONOMIC INTEREST. --. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was ..." prepared at the request of the City Clerk's Office in order to expand the resolution to include consultants. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. END OF CONSENT CALENDAR Development Department CONTINUED FROM FEBRUARY 7.1994 7. SAN BERNARDINO BASEBALL STADIUM (l\1ayor and Common Councm (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, stated that the Commission conducted a workshop where a report was received from the Baseball Stadium Ad Hoc Committee selected to work on this project. He discussed a memorandum received from the Mayor's Office regarding other cities .... approach to building baseball stadiums. .......J JOINT REGULAR MEETING KJH:lmp:cmJn2J2 .4. COMMISSION MINUTES FEBRUARY 21, 1994 [ r I [ , \- ".,. I L. Mayor Minor indicated that the Council must first consider if it would like to build a stadium. Jim Wehmeier, General Manager, Spirit Baseball, explained that the ownership of the team is very interested in staying in San Bernardino. He explained that they would be willing to discuss a longer term lease with the City. He indicated that the team was not tied to a major league club. COUNCILMAN OBERHELMAN WAS EXCUSED AT 11:51 A.M. Councilman Hernandez expressed his concern about building a stadium in the City at this time. He felt that the City had other priorities that needed to be attended to before the stadium. COUNCILMAN OBERHELMAN RETURNED AT 11:52 A.M. Mayor Minor believed that the stadium would be a means of attraction to the City. He indicated that the stadium would not impact the general fund. Mr. Wehmeier stated that the team owners would be willing to sign the lease extension before the stadium was built to show its commitment to San Bernardino. Superintendent Terrell, Past Chairman of the Baseball Committee, spoke on the commitment of the committee members in search for a stadium location. He recommended that the City build a stadium that could be used for both baseball and soccer. Mr. Terrell commented on the Orange Show site being the best location to build the stadium. He encouraged the Council to move ahead with this project indicating it would bring funding to the City through other resources. Larry Graham, Past President, Chamber of Commerce, stated that the Chamber supports the building of a new stadium. He believed this could be part of the Rediscover San Bernardino efforts of the City. He also believed that the stadium could bring funding to the City through hotels, restaurants, and other resources within the City. COMMISSION MEMBER MILLER WAS EXCUSED AT 12:04 P.M. Councilwoman Pope-Ludlam expressed concern regarding the fmancing of this item. The Council Members discussed the concept of a new stadium in the City. COMMISSION MEMBER MILLER RETURNED AT 12:05 P.M. Councilman Hernandez reitemted his concern regarding other needs in the City. Jeff Wright, P. O. Box 2341, San Bernardino, believed that the City could build a multi-use facility that could be used for a variety of activities. Robert Castaneda, citizen. agreed with Councilman Hernandez. He felt the City had other priorities that it should handle fllst before building a new stadium. Jim Deskus, General Manager, Radisson Hotel, believed that the stadium would bring improvement JOINT REGULAR MEETING KJB:lmp:cmID2J2 COMMISSION MINUTES FEBRUARY 21, 1994 .5. to the City as well as businesses within the City. Eddie Muir, Marlborough Homes, agreed that the baseball stadium would be an improvement for the City and also a selling point when dealing with home sales. A very Cates, citizen, indicated that San Bernardino could be a leader if it undertakes this project and moves forward. Ann Atkinson, 1335 "E"Street, San Bernardino, stated that the City should do anything that would provide jobs and enhance the City. She said that this project could make San Bernardino a better place to live. Denis LaBine, Coordinator, 42nd Congressional District, Congressional Candidate, spoke on the various changes taking place in San Bernardino including the closure of Norton Air Force Base. He advised the Council to take advantage of the opportunity it has before them. He also commented on building the stadium to be used for multiple purposes. Councilman Negrete made a motion, seconded by Councilman Oberhelman, to approve a new stadium concept. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. Mayor Minor recessed the meeting of the Mayor and Common Council and the Community Development Commission until 2:30 p.m. MEETING RECONVENED The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was reconvened by Mayor Tom Minor at approximately 2:35 p.m. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Ralph Hernandez; David Oberhelman; Valerie Pope-Ludlam; and Jerry Devlin. Absent: Dr. F. J. Curlin; Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; David Edgar, Housing Division Manager, Development JOINT REGULAR MEETING K.JH:lmp:cmln2J2 -6- COMMISSION MlNUTF,s FEBRUARY 21, 1994 .., ~ ~ , .... ., '!~ ~ ...,j ,.... ~ i -J [ [ [ Department; John Hoeger, Project Manager, Development Department; Dennis Barlow, Senior Assistant City Attorney; Fred Wilson, Assistant City Administrator; Ray Salvador, Administrative Assistant, Mayor's Office Lorraine Velarde, Executive Assistant to the Mayor; Sandra Medina, Administrative Operations Supervisor n, City Clerk's Office; Diane Jones, Deputy City Clerk; La V onda M-Pearson, Recording Secretary. Development Department. OTIlERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper. CONTINUED FROM FEBRUARY 7. 1994 7. SAN BERNARDINO BASEBALL STADIUM (J\1ayor and Common Council) (Community Development Commission) Mayor Minor gave a brief overview on the discussion of this item during the morning session. Councilman Hernandez indicated that the site would need to be determined before the financing. COUNCILWOMAN MILLER ARRIVED AT 2:36 P.M. Timothy Sabo, Special Counsel, Sabo and Green, discussed possible financing methods to pay for the stadium. He explained that two or more methods could be used if the Commission desired. Mr. Sabo indicated that off-season uses for the stadium could also be a means for funding the stadium. He recommended the Commission complete further study on this item, stating that if a multi-use facility is considered, they must determine the additional costs for that type of facility. Discussion ensued regarding comments made by Mr. Sabo. Lud Benson, Vice President, Local Carpenters Union, informed the Council that the Union has previously assisted in funding projects such as baseball stadiums. He indicated that the Executive Director of the union would be in town within a week, and he would like to meet with the Commission regarding his assistance. Commission Hernandez recommended hiring a consultant to view other stadium's and also the possibility of building a multi-use facility. Jeff Wright, P. O. Box 2341, San Bernardino, made comments regarding the stadiums location and also the ownership of the stadium. John Stephens, citizen, discussed the high crime rate in the City and also the costs to attend a baseball game. Warner Hodgdon, citizen, discussed his familiarity with ownership of multi-use facilities. He expressed concern regarding the need to build a new stadium for the City as well as the Spirit. JOINT REGULAR MEETING KJH:lmp:cmln2J2 COMMISSION MINUTES FEBRUARY 21, 1994 .7. Commission Member Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to hire a consultant to look at the feasibility of the stadium as a multi-use facility. ] Commission Member Pope-Ludlam recommended that a comprehensive plan of the City be reviewed along with the location for the stadium. Commission Member Hernandez stated that a comprehensive plan could be looked at and that the Ad Hoc Committee should work with the consultants. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. Francine Wixen, Broker, gave a brief report to the Commission regarding the site location for the facility. She recommended the Southern Pacific site located in the central city south portion of the City. She felt it would be a major improvement to a blighted area. Ms. Wixen stated that she owned property in that area near the railroad. Scott Meam, Southern Pacific, extended his desire to work with the City in conjunction with this project. He explained that Southern Pacific would be willing to enter into a long term lease or a purchase plan to provide for this stadium. (Community DevelQpment Commi4ision) J 8. WELLS FARGO LINE OF CREDIT EXTENSION Kenneth J. Henderson, Executive Director, Development Department. explained that this item had been before the Commission on several occasions. He stated that the Line of Credit with Wells Fargo was established in 1990 for the purpose of completing several projects. He indicated that there was currently a balance of $800,000 available. Commission Member Hernandez made a motion, seconded by Commission Member Devlin, to authorize a one year extension of certain Lines of Credit with Wells Fargo Bank and authorize the execution of said documents. (No vote taken) Commission Member Oberhelman questioned the possibility of paying off Wells Fargo and reopening a line of credit with another f'mancial institution. Mr. Henderson stated that staff had discussed this possibility indicating that this would probably be the last time the Agency would request a renewal. Commission Member Oberhelman recommended the Agency see what other lending institutions had available. He felt the market was very competitive and that the Agency could possibly obtain a better interest rate than that with Well Fargo. Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to ] continue Ibis item until March 7, direct slaff to determine the Dllllket, and to obtain a 30 day extensioo from i JOINT REGUI.AR MEETING KJH:lmp:c:mln2J2 -8. COMMISSION MINUTES FEBRUARY 21, 1994 n I Wells Fargo if the market cannot be determined before the March 7, Commission Meeting. r ...... Mr. Henderson explained that the line of credit was used to fund projects such as the Westside Plaza, Portugal and Neal and the HAB Land Development. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 9. STORAGE SPACE LEASE - 201 NORTH "E" STRRRT (INLAND EMPIRE SYMPHONY) (Community Develqpment Commission) Conunission Member Miller made a motion, seconded by Conunission Member Hernandez, to authorize the Executive Director to draft and execute a lease and all other necessary documents with the Inland Empire Symphony for the utilization of approximately 3,600 square feet of the old "Thrifty Building" space, with said space to be utilized by the Symphony for storage purposes on the second floor of the 201 building. Kenneth J. Henderson, Executive Director, Development Department, noted that the storage would be on the "first floor" and not the "second floor" as indicated in the motion. Commission Member Oberhelman questioned the $1 a year lease indicating that the documents to be r stored were possibly revenue producing documents. I L Conunission Member Miller explained that the documents to be stored were from the James Guthrie Library. She stated that the documents needed to be organized and categorized before they could become revenue producing. Jeff Wright, P. O. Box 2341, San Bernardino, conunented on the location where the files would be stored. He questioned whether or not the condition of the location would cause damage to the files. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 10. OFFICE LEASE - 201 NORTH "E" STREET (SABO & GRRRN) (Community Development Commission) r i ! ...... Conunission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to authorize the Executive Director to draft and execute a lease and all other necessary documents with Mr. Timothy Sabo, of Sabo and Green, for the utilization of approximately 720 square feet of office space on the second floor of the 201 Building. JOINT REGULAR MEETING KJH:lmp:cmln2J2 .,. COMMISSION MINUTES FEBRUARY 21, 1994 The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhehnan; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. CONSTRUCTION CONTRACTSIBIDDING 11. CENTRAL POLICE STATION (Community Development Commi4ision) Commission Member Oberhelman made a motion. seconded by Commission Member Devlin, to authorize the execution of a Construction Management contract with Millie and Severson, Incorporated, for general contracting and construction management services in connection with the construction of the Central Police Station; further, that the Commission authorize advertisement for Trade Contractor bids for construction of the Station; further, that the Commission increase the Agency budget in an amount of $369,714 for construction management services; and, further, that the Commission direct staff to prepare financing documents for a Certificates of Participation issue to yield approximately $5,000,000 in construction funds, and a Tax Allocation Bond issue in an amount necessary to provide for completion of construction and furnishing of the Station. Commission Member Hernandez questioned the rising cost of building a new police station. COMMISSION MEMBER POPE.LUDLAM WAS EXCUSED AT 3:32 P.M. Commission Member Miller discussed the costs needed to acquire the land for the police station. COMMISSION MEMBER POPE-LUDLAM RETURNED AT 3:33 P.M. Timothy C. Steinhaus, Administrator, Economic Development Agency, discussed the funding set- aside for the police facility during the budget hearing. He indicated that the cost to build the new police station, plus the land acquisition costs, would be approximately $14 million. Mr. Henderson explained that the costs to demolish the existing police station would be included in the State Building costs. He stated that since interest rates vary, fInal costs for the police station could not be determined at this time. Timothy Sabo, Special Counsel, Sabo and Green. indicated that a $14 million bond would cost about 2 112 times the face value of the bonds over a period of 25 - 30 years. Mr. Henderson explained that a survey taken of similar facilities built in other areas showed the estimated costs of the City's to be signifIcantly less than others. Commission Member Negrete expressed a need to continue with this item while the market was good. Jeff Wright, P. O. Box 2341, San Bernardino, recommended the City have smaller multiple police stations rather than one large station. He felt that this would help the offIcers reach their destinations quicker. Chairman Minor explained that police officer are usually dispatched from the field and not from the central station. JOINT REGULAR MEETING KJH:lmp:cmln2J2 -10. COMMISSION MINUTES FEBRUARY 21, 1994 ,., I I ....J -... '\'1. . ...." -, i 1\ ! ! ......J r '-' r- The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Curlin. CONTINUED FROM FEBRUARY 7.1994 12. ARROW VISTA STANDING INVENTORY (Community Develqpment Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, explained the previous action taken by the Commission regarding the Arrow Vista Housing Project. He discussed the agreement in principal which was prepared and signed by both the Agency and the developer regarding the homes. He emphasized that the agreement only addressed the standing inventory and not the other loans held by Mr. Dukes from the Agency. Kenneth J. Henderson. Executive Director, Development Department, briefed the Commission on all the existing loans held by Mr. Dukes such as the business reorganization loan and the sewer capacity loan. He indicated that the developer wanted to change the terms of the agreement and also be forgiven for the sewer capacity loan. He also indicated that the developer wanted to delay the repayment of the business reorganization loan until the reorganization of one of his other properties. Commission Member Pope-Ludlam expressed concern regarding the agreement being modified after it was reviewed in Closed Session by the Commission. Mr. Henderson stated that the items added to the list were added by Mr. Dukes and not by the ~ Agency. ~ , , '-' Discussion ensued regarding the terms of the agreement presented and signed by Mr. Dukes. Commission Member Devlin commented on the amount of forgiveness that the developer was requesting. Mr. Henderson discussed the new terms that Mr. DukeS was requesting from the Agency. He reminded the Commission of its prior decision to give the developer the three models to allow him to increase his cash flow. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:00 P.M Commission Member Oberhelman questioned the timeframe when the restructuring of the developers other property would be complete. Mr. Henderson indicated that the restructuring of the property should be complete by the end of the year. COMMISSION MEMBER HERNANDEZ RETURNED AT 4:01 P.M. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin. to direct the counsel to take whatever appropriate legal action necessary, foreclosure or breach of contract, to JOINT REGULAR MEETING KJH:lmp:cmln2J2 COMMISSION MINUTES FEBRUARY 21, 1m -11- terminate the development agreement between Dukes-Dukes and Associates and the Agency so that the Agency could obtain total control of the project. ...... Commission Member Pope-Ludlam questioned the agreement included in the staff report. ....-II Chairman Minor commented that the agreement listed was only an agreement in principal. He explained that the agreement was suppose to be brought back before the Commission by January 31, 1994. Dennis A. Barlow, Senior Assistant City Attorney, indicated that the agreement expired on its own terms since no action was taken by January 31,1994. Mr. Henderson reiterated the terms requested by the developer, stating that he would like to have forgiveness of his loans. He indicated that late Friday afternoon, the developer sent a fax to the Agency listing his new terms. Commission Member Pope-Ludlam informed the Commission that the developer was not present because he believed this item would be continued. Commission Member Oberhelman felt that the developer had refused to accept the agreement in principal which the Commission agreed upon. Chairman Minor discussed the amount of time, effort and money that has been put into this project. He recommended the Commission come to some type of resolution to this project. The motion failed by the following vote: Ayes: Commission Members Oberhelman; Devlin; Miller. Noes: Commission Members Negrete; Hernandez; Pope-Ludlam. Abstain: None. Absent: Commission Member Curlin. --- '1: ..." 13. CAMDEN DEVELOPMENT ASSISTANCE AGREEMENTS (Community DeveIQJ)ment Commission) Kenneth J. Henderson, Executive Director, Development Department, gave a brief overview of this item and stated that it had been reviewed by the Agency Counsel and signed by the developer. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete, to authorize the Executive Director to execute assistance agreements with Camden Development, Ltd., as drafted by Agency Special Counsel; further that the Executive Director be authorized to execute such other documents as are required to carry out the terms of the agreements and be authorized to make such non- substantive corrections in the agreements as are approved by Agency Counsel; and further, that the Economic Development Agency budget of 1993-1994 be amended to provide an additional $1,250,712 to be used for assistance to the University Village Shopping Center development. Mr. Henderson indicated that there were two additional motions that would need to be considered in connection with this project listed in a memorandum submitted by the Public Works Department. ., ....." JOINT REGULAR MEETING KJH:lmp:cmJn2J2 -12 . COMMISSION MINUTES FEBRUARY 21, 1m r L ,.... L [ Commission Member Pope-Ludlam made a motion, seconded by Commission Member Negrete, that the (1) Agreement with Camden Development be revised by interdelineation to delete the $125,000 for installation of traffic signals at University Parkway and Varsity/State Street; and (2) authorization be granted to reimburse Hughes Market for one-half (112) of the total project cost, for installation of traffic signals at University Parkway and Varsity/State Street, up to the amount of $62,500, subject to acceptance of the traffic signals by the Director of Public Works/City Engineer. Chairman Minor asked if the property had been completely leased up. Ari Miller, Camden Development, stated that he had four tenants and in negotiations with two additional tenants. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent: Commission Member Curlin. CONTINUED FROM FEBRUARY 7, 1994 14. LOCAL BID PREFERENCE CRITERIA (M~or and Common Council) (Community Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this was a joint item between the Agency and the City. Fred Wilson, Assistant City Administrator, explained that his office had completed a detailed analysis of both ordinances. He indicated that although staff was not recommending anything, they would prefer the option similar to the County of San Bernardino. He stated that that option could be implemented immediately. Councilwoman Pope-Ludlam spoke on the pros and cons of local preference as stated to her by a local businessperson. Mayor Minor emphasized that the problem incurred by local businesses is that they can only bid on projects located in their own cities. Councilman Hernandez stated that the City should continue to take bids from other city vendors but allow preference to the local vendor when they are both equally qualified. Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to allow a 1 % local preference criteria in the City. Bill Yates, local businessman, 741 South Lugo, San Bernardino, stated that he opposed this issue. He spoke on cities having a 1 % to a 3% preference. He indicated that if the City chose a preference of more than 1 %, it could cause difficulty for businesses. Mr. Yates gave the Commission various examples of how the preference criteria could cause problems for businesses. JOINT REGULAR MEETING KJH:lmp:cmln2J2 -13 - COMMISSION MINUTES FEBRUARY 21, 1994 Dennis A. Barlow, Senior Assistant City Attorney, stated that if the City chose to allow a 1 % preference, the attorney's would need to bring back an ordinance to implement the change as mandated by the City Charter. ...., Discussion ensued regarding the control of local preference when using subcontractors. Councilman Hernandez recommended informing contractors about the City's policy regarding the preference criteria. ......iI Councilman Oberhelman expressed concern regarding the contractors need to control costs at his expense. He felt that the City could not tell the contractor who he can or cannot hire. Councilman Oberhelman made a substitute motion, seconded by Councilman Devlin, that the local preference criteria be utilized whenever possible. Jeff Wright, P. O. Box 2341, San Bernardino, believed that the current market would make it possible for local businesses to submit lower bids. The motion failed by the following vote: Ayes: Council Members Oberhelman; Devlin; Miller. Noes: Council Members Negrete; Hernandez; Pope-Ludlam. Abstain: None. Absent: Councilman Curlin. Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to allow a 1% local preference criteria in the City. The motion failed by the following vote: Ayes: Council Members Negrete; Hernandez; Pope- Ludlam. Noes: Council Members Oberhelman; Devlin; Miller. Abstain: None. Absent: Councilman Curlin. , It '} ..... 15. CALIFORNIA INN SRO (Community Development Commission) Chairman Minor stated that this item would be discussed in Closed Session. 16. FREEWAY HOME CENTER (Community Development Commission) A lengthy discussion ensued regarding the need to discuss this item in closed session. It was suggested that the item be brought up in closed session, and if the need was not present, the discussion on the item would continue in the open forum. CLOSED SESSION 17. ADJOURN TO CLOSED SESSION ~ At 5: 11 p.m., the Mayor and Common Council and the Community Development . Commission adjourned to Closed Session to discuss the following: ....-I JOINT REGULAR MEETING KJH:lmp:cmln2J2 -14 - COMMISSION MINUTES FEBRUARY 21, 1994 r ~ r I ~ r L.. A. to confer with the attorney regarding pending litigation which has been initiated fonnally to which the Commission is a party pursuant to Government Code Section 54956.9(a) as follows: B. to confer with the attorney regarding pending litigation pursuant to Government Code Section 54956.9(b)(I), as there is significant exposure to litigation; 12. ADJOURNMENT At 6: 16 p.m., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, March 7, 1994 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: ~R4ii KENN THJ. NDERSON Executive Director! Secretary to the Commission JOINT REGULAR MEETING KJH:lmp:cmln2J2 COMMISSION MINUTES FEBRUARY 21, 1994 .15. - '- ~ '-' .., g r, .""., -, -...J r .., r L ,... L MAYOR AND COMMON COUNCIL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING March 7,1994 11:00 a.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately 3:40 p.m., on Monday, March 7, 1994. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F.1. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth 1. Henderson, Executive Director, Development Department; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator; Jim Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Diane Jones, Deputy City Clerk; La V onda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. 11. ADJOURN TO CLOSED SESSION At 3:41 p.m., the Mayor and Common Council and Community Development Commission recessed to Closed Session for the following: D. to give instruction to the Commission's negotiator on the purchase of property pursuant to Government Code Section 54956.8. The real property which the negotiations concern is generally located at: 300 North "E" Street. REGULAR MEETING KJH:lmp:cmin3rl COMMISSION MINUTES March 7, 1994 MEETING RECONVENED The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately 4:00 p.m., on Monday, March 7, 1994. ..., t j -.J ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F.I. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; and Valerie Pope-Ludlam. Absent: Commission Member Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth I. Henderson, Executive Director, Development Department; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator, Jim Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE ... ,I 1 'WIllI Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Bob Nelson, Star Route 11, Summit, California, expressed concern regarding the three (3) minute time limit placed on citizens speaking at Commission meetings. He spoke of the Commission trying to take away citizens' freedom of speech. COMMISSION MEMBER HERNANDEZ WAS EXECUSED AT 4:02 PM COMMISSION MEMBER MILLER ARRIVED AT 4:03 PM Jeff Wright, P.O. Box 2341, San Bernardino, California, discussed Police Department's use of Harley Davidson Motorcycles for patrolling the City. He also commented on the time limit placed on citizens addressing the Commission for public comments and agenda items. COMMISSION MEMBER HERNANDEZ RETURNED AT 4:04 PM COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 4:04 PM The Commission Members requested items number "1" "2" "3" "4" "5" and "6" be , , , , removed from the Consent Calendar. ~ ..~ ....J REGULAR MEETING KJH:lmp:cmin3rl COMMISSION MINUTES March 7, 1994 [ [ [ Commission Member Devlin made a motion, seconded by Commission Member Miller, that the Consent Calendar items numbered "1" through "7" be adopted except for items numbered "1", "2", "3", "4", "5" and "6" respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Miller. Noes: None. Abstain: Commission Member Oberhelman; Absent: Commission Member Pope-Ludlam. 7. YMCA YOUTH - TEEN CENTER PROJECT (Mavor and Common Council) Councilman Devlin made a motion, seconded by Councilwoman Miller, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-52 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Miller. Noes: None. Abstain: Commission Member Oberhelman; Absent: Commission Member Pope-Ludlam. CLOSED SESSION 1. APPROVAL OF IMPLEMENTATION AMENDMENT WITH THE SAN BERNARDINO COMMUNITY COLLEGE DISTRICT - MT VERNON CORRIDOR (Community Develooment Commission) Commission Member Devlin made a motion, secnded by Commission Member Negrete, that the following resolution be approved and adopted: REGULAR MEETING KJH:lmp:cmin3rl COMMISSION MINUTES March 7, 1994 ~- RESOLUTION NUMBER 5390 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A CERTAIN IMPLEMENTATION AMENDMENT TO AGREEMENT WITH THE SAN BERNARDINO COMMUNITY COLLEGE DISTRICT IN CONNECTION WITH THE ADOPTION OF THE MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33401. Timothy C. Steinhaus, Administrator, Econmic Development Agency, explained that the documents for this item had been rewritten to provide better clarification. COMMISISON MEMBER POPE-LUDLAM RETURNED AT 4:11 PM Commission Member Hernandez questioned the financing for this item. Mr. Steinhaus briefly explained the financing for the item, indicating that it would remain the same. Mr. Steinhaus explained that Valley College had agreed to share a percentage of the costs for this project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 2. CALIFORNIA INN (SRO) - TERMINATION AGREEMENT (Community Development Commission) Commission Member Oberhelman requested an explanation be given regarding the amount of funding being given to the developer for the termination of this project. Kenneth 1. Henderson, Executive Director, Development Department, discussed the original agreement between the Agency and the developer and the amount of personal funds invested by the developer. He explained that staff and the developer were in agreement with the terms in the termination agreement. Commission Member Oberhelman commented on the summary documentation submitted by the developer and questioned the interest rate on his loan. Mr. Henderson stated that the loan rate was at prime plus three. REGULAR MEETING KJH:lmp:cmin3r1 COMMISSION MINUTES March 7, 1994 ., J .. i ~ ] r ...... r L [ Commission Member Hernandez commented on the negative effect this project has had on the developer. He indicated that if the project had succeeded, all invested funds from the City would have been returned. Discussion ensued regarding the legality of paying the developer with 20% set-aside funds. Timothy Sabo, Special Counsel, Sabo and Green, stated that the 20% set-aside funds would be appropriate since the proposed project was a housing project. Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to approve the attached Agreement terminating the existing Disposition and Development Agreement between the Redevelopment Agency and Main Street Inn, A California Limited Partnership (California Inn SRO). Jeff Wright, P.O. Box 2341, San Bernardino, California, believed that funding the survey for this project was not an obligation for building the project. Commission Member Hernandez recommended the check for the developer be processed immediately. Jim Penman, City Attorney, commented on using 20% set-aside funds for this purpose. he recommended that Agency use 80% funds instead. Commission Member Hernandez made a substitute motion, seconded by Commission Member Pope-Ludlam, to approve the attached Agreement terminating the existing Disposition and Development AGreement between the Redevelopment Agency and Main Street Inn, A Califonia Limited Partnership (California In SRO)~ and that any legal funding nethod be used as the funding source, and that the check be issued immediately. The motion carried by the following vote: Ayes: Commission Members Negrete~ Curlin; Hernandez~ Pope-Ludlam. Noes: Commission Members Oberhelman~ Devlin~ Miller. Abstain: None. Absent: None. 3. AWARD OF BID - COURT STREET PARKING LOT (Mavor and Common Council) Councilman Hernandez questioned the use of a benefit resolution for approval of this item. He also questioned the type and cost of the improvements being made to the temporary parking lot. REGULAR MEETING KJH:lmp:cmin3rl COMMISSION MINUTES March 7, 1994 j Kenneth J. Henderson, Executive Director, Development Department, emphasized that although the improvements being made were temporary, there was no time limit as to how long the temporary improvements would be used. He emphasized that the current temporary improvements to the lot were made approximately 15 years ago. Councilman Oberhelman concurred with Councilman Hernandez regarding the use of a benefit resolution for this project. Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-53 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF CERTAIN IMPROVEMENTS FOR THE STATE COLLEGE REDEVELOPMENT PROJECT AREA. (to facilitate a transfer offunds from the State College to the Central City Redevelopment Project regarding construction of Court Street Parking Lot.) The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Council Members Curlin; Oberhelman; Devlin. Abstain: None. Absent: None. Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, that the following resolution be approved and adopted: RESOLUTION NUMBER 5391 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF CERTAIN IMPROVEMENTS FOR THE STATE COLLEGE REDEVELOPMENT PROJECT AREA. (to facilitate Court Street Parking Lot.) Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to award a bid in the amount of$271,575 to Larry Jacinto Construction for the reconstruction of the Court Street Parking Lot, authorization of $52,250 for engineering/inspection services and contingency, and allocate bond proceeds in an amount not-to- exceed $323,825 for the foregoing. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Commission Members Curlin; Oberhelman; Devlin. Abstain: None. Absent: None. REGULAR MEETING KJH:lmp:cmin3r1 COMMISSION MINUTES March 7, 1994 ,., .~ i ~ -" ..., .~ ..." .... I I .....J 2 4. REDEVELOPMENT AGENCY LINE OF CREDIT r I L (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, commented on the Agency's efforts to obtain quotes from the other banks aside from Wells Fargo regarding the Agency's Line of Credit. He explained that staffs findings were listed in the attached report. Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to receive and file the attached staff report. Commission Member Oberhelman expressed concern regarding the efforts made to pursue the request of the commission to seek quotes from other banks. Mr. Henderson explained that the Agency would be willing to check with banking firms outside of the City ifhe desired. Jeff Wright, P.O. Box 2341, San Bernardino, California, commented on the amount and the use of the line of credit. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: ".... None. j , i L- 5. REVITALIZATION PLAN FOR THE 40TH STREET SHOPPING CENTER (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Miller, to authorize and direct the Executive Director to negotiate and execute an agreement for professional services with Richard Pope and Associates for the development of a revitalization plan for the 40th Street Shopping Center in an amount not-to-exceed $56,550. Kenneth 1. Henderson, Executive Director, Development Department, explained the process used to select the consultant team. Jeff Wright, P.O. Box 2341, San Bernardino, expressed concern regarding the funds being spent on this project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. "... '-- REGULAR MEETING KJB:lmp:cmin3rl COMMISSION MINUTES March 7,1994 J 6. FISCAL YEAR 1994-95 HOME PROGRAM DESCRIPTION ~ ; (Mavor and Common Council) ....", Kenneth 1. Henderson, Executive Director, Development Department, gave a brief description of the HOME Program. Councilman Hernandez made a motion, seconded by Councilman Oberhelman, to approve the attached Fiscal Year 1994-95 HOME Program Application and authorize the Mayor and Executive Director to execute any documents necessary to effectuate the submittal of said application in a timely manner. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 8. INLAND PLAZA REFINANCING - PUBLIC HEARING (Mavor and Common Council) OPEN PUBLIC HEARING Kenneth 1. Henderson, Executive Director, Development Department, explained the owner's request for assistance for this project. He indicated that the Committee recommended assisting Inland Plaza. .... ..,., Councilman Devlin questioned Miller and Schroeder's involvement with this project. Mr. Henderson stated that Miller and Schroeder was the Agency's bond underwriter and would be utilized for this project. CLOSE PUBLIC HEARING Councilwoman Pope-Ludlam made a motion, seconded by Councilman Oberhelman to close the public hearing. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Councilman Hernandez made a motion, seconded by Councilwoman Pope-Ludlam, to approve an extension of the Inland Plaza Industrial Development bond due date from October 15, 1994 to October 15, 1994. ,., .....J REGULAR MEETING KJH:lmp:cmin3rl COMMISSION MINUTES March 7, 1994 :z r ~ '-- The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Councilman Devlin. Absent: None. (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlam, to direct staff to pursue, with the assistance of Miller and Schroeder, an Industrial Development Bond refinancing for Inland Plaza, which would not require a Redevelopment Agency loan gurantee. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: None. 9. MOBILEHOME PARK CONVERSION PROGRAM (Community Development Commission) Brooks London, DeAnza London Group, explained that the mobilehome conversion process would cost approximately $30,000 per park. He stated that they were currently budgeted for four (4) parks. r Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that staff ! would like to approach the conversion process slowly instead of all at once. He explained that ~ even if it was determined to complete the conversion process on all 11 parks, there was not sufficient staff resouurces available to accomplish the simultaneous conversion of 11 parks. Mr. London agreed with Mr. Steinhaus in approaching the conversion process slowly. Commission Member Oberhelman made a motion, seconded by Commission Member Miller, that the following motions be approved and adopted: A. To receive and file the Mobilehome Park Conversion Report from DeAnza- London dated March 2, 1994; B. To approve implementation of the Mobilehome Park Conversion Program fro selected Category I Parks, and authorize the utilization of approximately $120,000 in housing set-aside funds, for said purposes; C. To authorize the Chairman and Executive Director to execute any documents necessary to effectuate said implementation; and r ! '-- D. To refer the issue of review of strategy implementation and funding for Catergories II and ill to the Housing Committee for review and input. REGULAR MEETING KJH:lmp:cmin3rl COMMISSION MINUTES March 7, 1994 ? COMMISSION MEMBER CURLIN WAS EXCUSED AT 5:19 PM ,., Commission Member Hernandez expressed concern regarding parks feeling neglected. He wanted to ensure that the conversion of parks would not become limited. -....j Mr. Brooks confirmed that there would be no limits placed on the conversion of parks within the City. COMMISSION MEMBER CURLIN RETURNED AT 5:20 PM The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. RS-l. AGREEMENT WITH WATER COMMISSIONERS. COMMUNITY DEVELOPMENT COMMISSION TO FUND 1/3 CONSULTING SERVICES WITH SIMON AND COMPANY (Community Develooment Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that the following resolution be approved and adopted: .... RESOLUTION NUMBER 5392 ...." RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION AUTHORIZING THE EXECUTION OF AN AGREEMENT TO JOINTLY FUND CONSULTING SERVICES BY AND BETWEEN THE CITY OF SAN BERNARDINO, THE BOARD OF WATER COMMISSIONERS OF THE CITY OF SAN BERNARDINO AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND SIMON AND COMPANY. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: None. .., ~ ~ ~ ~ ....,;I REGULAR MEETING KJH:lmp:cmin3r1 COMMISSION MINUTES March 7, 1994 [ [ [ 11. ADJOURNMENT At 5:28 p.m., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, March 21, 1994 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted: ~T~qIENDERSON Executive Director/ Secretary to the Commission REGULAR MEETING KJH:lmp:cmin3rl COMMISSION MINUTES March 7,1994 ] J .., I ~ r- ~ ~ ...., r- ; ! \-, [ MAYOR AND COMMON COUNCn. COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO MINUTES JOINT REGULAR MEETING March 21, 1994 11:00 a.m. The Joint Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 3:05 p.m., on Monday, March 21, 1994, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; Norine Miller. Absent: Dr. F. J. Curlin. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; James Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Roger Hardgrave, Director of Public Works; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE ~::;- ,:... . ~ Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper. PUBLIC COMMENTS NOT ON THE AGENDA Jeff Wright, P. O. Box 2341, San Bernardino, CA, stated that he would like to make comments regarding the public comments time limit at Commission Meetings. Mayor Minor informed Mr. Wright that the public comments item was on the Agenda and that he could speak to the item when it was presented to the Commission. COMMISSION MEMBER CURLIN ARRIVED AT 3:10 P.M. Albert Martinez, P. O. Box 222, San Bernardino, asked if the Commission could answer questions regarding items on the Agenda. Mayor Minor explained to the public that public comments are only for items not on the Agenda. JOINT REGULAR MEETING KJH:lmp:cmin2j2 COMMISSION MINUTES MARCH 21, 1994 .1. Bob Nelson, Citizen, expressed concern regarding the restrictions placed on individuals when addressing the Commission. He spoke of the freedom of speech as protected in the Constitution. ~ ....... CONSENT CALENDAR The Commission Members requested that items numbered "2", "3", "4", "5", "6", "7" and "8", be removed from the Consent Calendar. Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items numbered "1" through "8" be adopted except for items numbered "2", "3", "4", "5", "6", "7" and "8", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 1. JOINT POWERS FINANCING AUTHORITY (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, April 18, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. .... .... 2. COMMUNITY DEVELOPMENT COMMI..~SION MINUTES . (Community Develqpment Commission) :'\:,..:- \~'... ;. Jeff Wright, P. O. Box 2341, San Bernardino, stated Page 1 of the minutes under public comments would read "County Law Library" instead of "County Library". Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the minutes of the Community Development Commission of the City of San Bernardino for the meetings of February 21, 1994 be approved as amended. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 3. INSTALLATION OF LANDSCAPING IN W ATERMAN AVENUE AND HIGHLAND AVENUE MEDIANS (Community Develqpment Commission) .... Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding citizens being ...... JOINT REGULAR MEETING KJH:lmp:cmin2j2 -2- COMMISSION MINUTES MARCH 21, 1994 [ r I L r L assessed to pay for medians that will benefit business owners. Commission Member Hernandez questioned MBEIWBE on this project. Roger Hardgrave, Director of Public Works, explained the process used in selecting the contractor for this project. He indicated that there was no back-up included with this item that showed good-faith efforts in abiding by the MBEIWBE. Commission Member Hernandez stated that he would like to have this item continued until back-up was provided which would include proof of compliance with MBEIWBE. Commission Member Hernandez made a motion, seconded by Commission Member Curlin, that the matter be continued to April 4, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam. Noes: Commission Members Devlin; Miller. Abstain: None. Absent: None. 5. HOUSING DIVISION QUARTERLY ACTIVITY REPORT (Community Development Commi~sion) Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, to receive and file the attached Housing Division Quarterly Activity Report for the months of October, November and December 1993. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. :....; '- \/... . ": ;. l' 4. BETHLEHEM HOUSE (Mayor and Common Council) Councilman Oberhelman stated that the synopsis which reads "September 1994" should read "September 1993" Councilman Oberhelman made a motion, seconded by Councilman Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-75 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO. JOINT REGULAR MEETING KJH:lmp:cmin2j2 COMMISSION MINUTES MARCH 21, 1994 .3- The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. ..... 5. STANDARD MORTGAGE COMPANY. INC.. LOAN GUARANTEE ...... (Community Develqpment Commission) Kenneth J. Henderson, Executive Director, Development Department, explained that a new list of properties to collateralize the loan guarantee for Standard Mortgage was submitted by Mr. SteUer and distributed to the Commission Members. Commission Member Oberhelman commented on the values placed on the properties listed in the previous list submitted by Mr. Steiler. He felt that some of the values listed were very generous considering todays market. Commission Member Curlin questioned the Agency's position if the loan guarantee was approved. Mr. Henderson discussed the terms of the loan and the risks that would be involved. He stated that the Agency would be in second or third trust deed position. Commission Member Oberhelman noted that there was no business plan attached to the back-up for review which would indicate how the funds would be used. Commission Member Curlin suggested that additional research be completed on this project before requesting approval from the Commission. ,., ...... Commission Member Pope-Ludlam indicated that this item was discussed during the Redevelopment Committee. She commented on the various amounts of loan guarantees completed by the Agency. ""~.;_ Ii. Iii . Chairman Minor comment~on Standard Mortgage's. <i:ommitment to the City for over 35 years. Richard W. Steiler, Standard Mortgage, explained the values given to the properties listed in the back-up. He indicated that he had approximately three (3) offices in San Bernardino, and discussed the downsizing in employees that he had completed due to the recent market. Discussion ensued regarding the guarantee of the loan being done by the Agency. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to approve a $1.7 million loan guarantee for Standard Mortgage Co., Inc., for the purposes of obtaining a working capital loan, conditioned upon the provision of adequate real estate collateral. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent: None. ,.... 6. AWARD OF BID. "E" STREET TERRACE -- JOINT REGULAR MEETING KJH:lmp:cmin2j2 .4. COMMISSION MINUTES MARCH 21, 1994 [ [ [ (Community DevelQpment Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that there was a total of six (6) responses received for this bid. Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, that the Community Development Commission: Award a bid in the amount of $65,121.09 to Wyatt construction for the construction of public stairway and seating amenities and authorize $28,558.16 for contingency, engineering and inspection services, and archaeological monitoring; and, Authorize a $93,679.25 increase in the allocation of bond proceeds from State College project area to the Central City project area for the construction; and, Authorize staff to administer and execute change orders, limited to the amount of the contingency ($11,958.16). The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent: None. 7. GALSTIAN FAMILY TRUST LOAN RELIEF REQUEST (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to approve the loan relief request submitted by the Galstian Family Trust subject to the terms and conditions set forth in the attached staff.report, direct Agency Counsel to prepare the necessary amen<4tJ;<<?pt t~. the . agreement between the Redevelopme{lt Agency and th~ Galsqan Family Trust and authorize the Chairman and Executive Director to execute any documents necessary to eff~.;;tuate the transaction as described herein. Kenneth J. Henderson, Execut,i,ve Director, Development Department, discussed the terms and conditions of the proposed loan for this project. Chairman Minor expressed concern regarding the Galstian Family Trust seeking assistance from the Agency first before a lending institution. Commission Member Curlin commented on the lack of maintenance being done to the property. He requested that they be required to provide better upkeep of their property. Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding the City's continued effort to assist small malls when the larger malls are experiencing a high vacancy rate. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: None. JOINT REGULAR MEETING KJH:lmp:cmin2j2 COMMISSION MINUTES MARCH 21, 1994 -5- _J 8. SAN MARCOS STREET IMPROVEMENT PROJECT (Community Development Commission) lRedevelQpment Committee Recommendation) Commission Member Hernandez made a motion, seconded by Commission Member Curlin, that this matter be continued to April 4, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent: None. RECESSED MEETING At 4: 18 p.m., Mayor Minor recessed the meeting of the Mayor and Common Council and the Community Development Commission for five (5) minutes. MEETING RECONVENED The meeting of the Mayor and Common Council and the Community Development Commission was reconvened at 4:26 p.m. ROLLCALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Ralph Hernandez; David Oberhelman; Ierry Devlin; Valerie Pope-Ludlam; Norine Miller. Absent: Dr. F.I. Curlin.~<;- \: -.. . :. 1 . STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth 1. Henderson, Executive Director, Development Department; lames Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Shauna Clark, City Administrator; Lorraine Velarde, Executive Assistant to the Mayor; Roger Hardgrave, Director of Public Works; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo and Green; Richard Brooks, The Sun Newspaper. JOINT REGULAR MEETING KJH:lmp:cmin2j2 COMMISSION MINUTES MARCH 21, 1994 .6- ,., J ., -.J ] [ r I \....., r L 9. PUBLIC COMMENTS AT COMMISSION MEETINGS (Community Develqpment Commission) (Councilman Curlin's Recommendation) COMMISSION MEMBER CURLIN ARRIVED AT 4:27 P.M. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:27 P.M. Jeff Wright, P. O. Box 2341, San Bernardino, CA, commented on the changes being made to the Brown Act effective April 1, 1994. He also commented on the length of time needed to speak during public comments in order to make a specific point. COMMISSION MEMBER HERNANDEZ RETURNED AT 4:28 P.M. Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that this matter be referred to the Legislative Review Committee. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: None. 10. FREEWAY HOME CENTER (Community Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, requested this item be continued for thirty (30) days. Commission Member Pope-Ludlam made a motion, seconded by Commission Me~ lfenimdez, to continue this matter until April 18,11994. . ~ The motion carried by,the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 11. HIRING OF OUTSIDE COUNSEL (Community Development Commission) (Councilman Hernandez's Recommendation) Commission Member Hernandez explained that the audit on the City Attorney's Office indicated that the Mayor and Common Council should hire another deputy attorney for the City Attorney's Office. He felt that since the City's funds are limited, the Redevelopment Agency attorney could be transferred back to the City. He emphasized that the Redevelopment Agency pays approximately 90% of the Agency Attorney's salary . Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to direct staff to prepare all the legal documents required to effectuate termination, including the 30-day JOINT REGULAR MEETING KfH:lmp:cmin2j2 COMMISSION MINUTES MARCH 21, 1994 .7. notice required under the agreement. (No Vote Taken) -, Dennis A. Barlow, Senior Assistant City Attorney, discussed items listed in the executive summary of the audit of the City Attorney's Office. He commented on the costs for hiring outside counsel versus in- house counsel and the savings to the City and the Agency for using in-house counsel. ~ ~ ....J Commission Member Oberhelman spoke of the amount of funds the Agency currently pays to outside counsel. Chairman Minor commented on the City Attorney's Office and the findings of the audit. Commission Member Hernandez discussed various legal opinions prepared by the City Attorney's Office when dealing with controversial issues of the City. Commission Member Curlin related information he had received from the Agency Administrator regarding the work of the City Attorney's Office for the Agency. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the City Attorney's Office would always be involved with Agency projects in order to achieve the best interest of the City. Jim Penman, City Attorney, responded to comments made by the Commission Members regarding the use of outside attorneys versus in-house attorney's and the cost. He explained that attorneys who represent cities, follow the law that the corporation (City) is the client. He stated that their job was to ensure the best interest of the City. ~ ~g ':j Mr. Penman indicated that there had been brief discussions regarding the Agency paying the Agency Attorney on an hourly rate, rather than a flat rate. .,..j COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:23 P.M.....;.;- J"-" \ . Discussion ensued regarding the role of the City Attorney'" Office. COMMISSION MEMBER OBERHELMAN RETURNED AT 5:24 P.M. COMMISSION MEMBER MILLER WAS EXCUSED AT 5:25 P.M. COMMISSION MEMBER MILLER RETURNED AT 5:26 P.M. Commission Member Hernandez requested that an RFQ be initiated for Economic Development Agency general counsel services. Commission Member Hernandez made a substitute motion, seconded by Commission Member Pope- Ludlam, to direct staff to prepare all the legal documents required to effectuate termination, including the 30- day notice required under the agreement; and that an RFQ be initiated for Economic Development Agency general counsel services. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; Miller. Abstain: None. Absent: None. ...... i .....,j JOINT REGULAR MEETING KJH:lmp:cmin2j2 -8- COMMISSION MINUTES MARCH 21, 1994 [ r i ! -....- r- I ! E ...., 12. ADJOURN TO CLOSED SESSION There were no items for discussion in Closed Session. 13. ADJOURNMENT At 5:52 p.m., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, Apri14, 1994 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. 1 . JOINT REGULAR MEETING KJH:lmp:cmin2j2 -9- Respectfully submitted: KENNETH J. NDERSON Executive Direc or/ Secretary to the Commission ,0\,; ;;- ,i,,,, . .. COMMISSION MINUTES MARCH 21, 1994 ~ ......, ... ....." -'t ~ ....." [ [ [ MAYORANDCOMMONCOUNOL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING April 4, 1994 11:00 8.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chambers, City Hall, 300 North "0" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately 4: 16 p.m., on Monday, April 4, 1994 . ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: Commission Member Dr. F. J. Curlin. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator; Jim Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Jeff Wright, P. O. Box 2341, San Bernardino, commented on how selected members of the public were being cut-off when trying to discuss items various items on the agenda. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 4:20 P.M. COMMISSION MEMBER HERNANDEZ RETURNED AT 4:21 P.M. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 4:22 P.M. Bob Nelson, Star Route 11, Summit, California, expressed concern regarding the limitation of freedom of speech being practiced at the Commission Meetings. REGULAR MEETING K.JH:lmp:cmin4rl 1 COMMISSION MINUTES April 4, 1994 COMMISSION MEMBER POPE-LUDLAM RETURNED AT 4:24 P.M. .., i~ ~ ~ ...." Mr. Nelson commented on the need for the Commission to apply its rules equally to all citizens. CONSENT CALENDAR The Commission Members requested items numbered "3", "4", "5", "7" and "8", respectively. Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the Consent Calendar items numbered "1" through "8" be adopted, except for items numbered "3", "4", "5", "711 and "8", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of march 21, 1994, be approved as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. J 2. REDEVELOPMENT COMMITTEE MINUTES (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meeting of January 27,1994, be received and fIled. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. REGULAR MEETING KJH: Imp: cmin4rl 2 COMMISSION MINUTES April 4, 1994 ] r- I I , '-' r ! ~ r L 6. FY 94/95 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING CYCLE. (Mayor and Common Council) Councilman Oberhelman made a motion, seconded by Councilman Hernandez, to receive and me the attached staff report submitted in connection with the FY 94/95 CDBG Funding Cycle. The motion carried by the following vote: Ayes: Council Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Curlin. 3. CONTINUED FROM MARCH 21.1994 INSTALLATION OF LANDSCAPING IN WATERMAN AVENUE AND IDGHLAND AVENUE MEDIANS. (Community Development Commission) Jeff Wright, P. O. Box 2341, San Bernardino, expressed concern regarding the citizens of San Bernardino being assessed in order to pay for the medians for this project. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Economic Development Agency was funding this project indicating that citizens would not be assessed for this project. Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, that the following resolution be approved and adopted: RESOLUTION NUMBER 5393 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO R K. ALLEN LANDSCAPE CONSTRUCTION FOR MEDIAN LANDSCAPE IMPROVEMENTS ON WATERMAN AVENUE AND HIGHLAND AVENUE. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 4. SENATE BILL 1135 (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to approve the use of Bond Proceeds for payment to the Educational Revenue Augmentation Fund, pursuant to Senate Bill 1135, for fiscal Years 1993-94 and 1994-95 and that the Agency's Budget for Fiscal year 1993- 94 be increased by $817,610.95. REGULAR MEETING KJH:lmp:cmin4rl 3 COMMISSION MINUTES April 4, 1994 Jeff Wright, P. O. Box 2341, San Bernardino, CA, read the motion for the public's hearing. Chairman Minor explained the use of this money as required by the State of California. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 5. REDEVELOPMENT AGENCY LINE OF CREDIT (Community Development Commission) Kenneth 1. Henderson, Executive Director, Development Department, commented on the terms and condition of a line of credit presented by First Interstate Bank and emphasized on the need to further explore their proposal. .., j1 * ....., Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to authorize a one year extension of certain lines of credit with Wells Fargo Bank and authorize the execution of said documents. Further, that the Executive Director be authorized to enter into negotiations with First ,.. Interstate Bank of California to establish a certain line of credit.1 .J Jeff Wright, P. O. Box 2341, San Bernardino, questioned the use of the line of credit. . Chairman Minor stated that the line of credit was used for a variety of different items ranging as high as $10 million. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 7. AWARD OF BID - DEMOLITION & EARTHWORK NEW CENTRAL POLICE STATION (Community Development Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, to award a bid in the amount of $173,000.00 to Howard Contracting, Inc., for demolition and earthwork and authorize $26,000.00 for contingency. Further, authorize staff to administer and execute change orders, limited to the amount of the contingency ($25,000). REGULAR MEETING KJH:lmp:cmin4rl 4 COMMISSION MINUTES April 4, 1994 .., i .....J r- ~ ~ r- ~ ~ i ~ ~ -....., The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 8. STANDARD MORTGAGE COMPANY. INC.. LOAN GUARANTEE (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the following resolution be approved and adopted: RESOLUTION NUMBER 5394 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CERTAIN OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND STANDARD MORTGAGE CO., INC. Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to authorize the Chairman and Executive Director to execute implementing documentation in connection with a $1.7 million loan guarantee for Standard Mortgage Company, Inc. Chairman Minor explained that the loan guarantee being proposed for this item would be for operations and business. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: Commission Member Miller. Abstain: None. Absent: Commission Member Curlin. END OF CONSENT CALENDAR 9. EDGEIDLL VILLAGE REINSTALLATION OF GREENBELT (Community Development Commission) Shauna Clark, City Administrator, requested this item be continued due to the need of the new president of the Homeowner's Association to review this item. Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the matter be continued until April 18, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. REGULAR MEETING KJH:lmp:cmin4rl COMMISSION MINUTES April 4, 1994 5 10. PROPOSED SAN BERNARDINO BASEBALL STADIUM (Community Development Commission) '\.' L.ttf.! ~f.f\ ~\,\t Commission MemberC made a motion. seconded by Commission Member i lWIman, to approve the selection ofKPMG Peat Marwick/HOK as San Bernardino Baseball Stadium feasibility consultants, authorize staff to prepare a professional services agreement with compensation not to exceed $30,000 and authorize the Chairman and Executive Director to execute said agreement and related implementation documents. .... ..... The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Curlin. 11. SAN BERNARDINO CIVIC LIGHT OPERA (Community Development Commission) (San Bernardino Civic Lieht Opera Association Ad Hoc Committee Recommendation) ~ ...., Commission Member Oberhelman thanked the members of the Ad Hoc Committee for their time spent working on this project. He discussed the alternatives listed in the staff~~rt. Commission Member Negrete stated that this item was discussed over a period of three (3) meetings. Commission Member Hernandez questioned whether or not there were any implementation plans for this project after purchased by the Agency. Commission Member Oberhelman commented on the concerns of the Ad Hoc Committee and their recommendations regarding the operation of the California Theater after purchase by the Agency. Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that the organizations using the California Theater would be paying rent for its use. Commission Member Negrete recommended that the purchase of the Theater included all fixtures and other items in the Theater that are utilized. ~ REGULAR MEETING KJH:lmp:cmin4rl 6 COMMISSION MINUTES April 4, 1994 -.III ~ f' '-- ".-. I ~ ".... i II..., Chairman Minor recommended the Commission approve Alternative C, and have staff prepare the necessary documents to purchase the facility. Discussion ensued regarding the necessary actions that need to take place in order to purchase the facility in an appropriate legal manner. Commission Member Devlin asked if there was a complete inventory list of all items in the California Theater. Keith Stava, Civic Light Opera, stated that there was a list available for review. Jeff Wright, P. O. Box 2341, San Bernardino, felt the approval of the public should be required before the approval of this item. Commission Member Hernandez made a motion, seconded by Commission Member Miller, that Alternative No.3 be approved in concept; and that staffbe directed to prepare the documents and refer the matter to the Redevelopment Committee. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 12. LOCAL BID PREFERENCE (l\{ayor and Common Council) (Community Development Commission) Councilman Oberhelman made a motion, seconded by Councilman Devlin, to approve 1% local preference on materials, supplies, and equipment and direct staff to prepare the documents. COUNOLMAN OBERHELMAN EXCUSED AT 5:06 P.M. Fred Wilson, Assistant City Administrator, commented on the use of the Local Bid Preference with the Department of Public Works. COUNCILMAN OBERHELMAN RETURNED AT 5:07 P.M. Councilwoman Pope-Ludlam discussed the complexity of having a bid preference. Dennis A. Barlow, Senior Assistant City Attorney, stated that the Council would need to define "local" in connection with this item. REGULAR MEETING KJH:lmp:cmin4r1 7 COMMISSION MINUTES April 4, 1994 Councilman Hernandez explained that he still had concerns regarding the approval of this item. --- The motion carried by the following vote: Ayes: Council Members Negrete; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Councilman Hernandez. Abstain: None. Absent: Commission Member Curlin. ....... 13. PUBLIC COMMENTS AT COMMISSION MEETINGS (Community Development Commission) (Councilman Curlin's Recommendation) Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, that the matter be referred to Legislative Review Committee. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Curlin. 14. SAN MARCOS STREET IMPROVEMENT PROJECT (Community Development Commissioll) ~edevelopment Committee Recommendation) Dennis A. Barlow, Senior Assistant City Attorney, discussed the concerns of the City Attorney's Office regarding the completion of public improvements to a neighborhood street with no homes. ... ..... Commission Member Hernandez stated that this capital improvement project was no different than others that had been previously approved. Timothy Sabo, Special Counsel, Sabo and Green, explained his findings regarding this item. Commission Member Oberhelman commented that the Agency had no proposed development for this area. Commission Member Pope-Ludlam indicated that discussions had been held regarding affordable housing being located in that area. Chairman Minor stated that if the public improvements were done before any developments, there would be no indications as to where the gas and water mains would need to be located. Commission Member Devlin stated that by approving this item, the Commission would be limiting the amount of options available for the area. -. REGULAR MEETING KJH:lmp:cmin4rl 8 COMMISSION MINUTES Apri14, 1994 .....J [ ,..... L ,.... L Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, that this matter be continued to April 18, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent: Commission Member Curlin. 15. ARROW VISTA HOUSING DEVELOPMENT PROJECf (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to approve implementation of the agreement for termination of obligations pertaining to the Arrow Vista Housing Development, authorize the utilization of $ 120,000 in available low income housing monies and authorize the Chairman and Executive Director to execute any documents necessary to effectuate said implementation. (No Vote Taken) Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on previous actions related to this item. He explained that Pridemark Homes would be hired to prepare the homes for sale. Jeff Wright, P. O. Box 2341, San Bernardino, commented on the amount of funds being given to developers for consultant services. COMMISSION MEMBER MILLER WAS EXCUSED AT 5:36 P.M. Commission Member Oberhelman commented on this being a gift of public funds. He spoke on the amount of funds being given to the developer when he owes the Agency money. COMMISSION MEMBER MILLER RETURNED AT 5:38 P.M. Commission Member Pope-Ludlam made a substitute motion, seconded by Commission Member Negrete, that this matter be continued to April 18, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman; Devlin. Abstain: None. Absent: Commission Member Curlin. REGULAR MEETING KJH:lmp:cmin4r1 COMMISSION MINUTES Apri14,1994 9 16. ECONOMIC DEVELOPMENT AGENCY PROCUREMENT AND PROCEDURES POLICY (Community Development Commission) (Redevelopment Committee's Recommendation) Chairman Minor discussed actions taken by staff regarding a project which called for the need to hire consultants in a timely manner. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that staffwas authorized to spend up to $25,000 for consulting services. He indicated that four (4) consultant were hired at a cost less than $23,000. Commission Member Pope-Ludlam expressed concern regarding the need for the Council to be informed of the hiring of consultants. She indicated that Council Members are not aware of various actions taking place within their own wards. Commission Member Hernandez reiterated on the need for the Council Members to be aware of all actions taking place in their wards. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 5:50 P.M. Commission Member Negrete indicated that he was not aware of the situation regarding this project until the Redevelopment Committee Meeting. He stated that he would like to see projects completed in the most equitable way as possible with his knowledge. Esther Estrada, Ramona Senior Housing, Inc., stated that the agreement being referred to was drawn up between the Complex and the City. She indicated that when the items were being discussed, that were discussed independently. Ms. Estrada informed the Commission that the funds used for the hiring of the consultants was not a grant but a loan that would be repaid with interest. Discussion ensued regarding the ability and the difficulty of receiving tax credits. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Devlin, that this matter be tabled. The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Curlin. COMMISSION MEMBER OBERHELMAN LEFT AT 6:04 P.M. REGULAR MEETING KJH: Imp: cmin4rl 10 COMMISSION MINUTES Apri14, 1994 ~ t ~ ~ ...., ... Ii n ..J ., I ....IJ r ~ i '-- r t i ""-' ".... ~ RS-l RAMONA SENIOR HOUSING COMPLEX (J\1ayor and Common Council) Councilwoman Miller made a motion, seconded by Councilwoman Pope-Ludlam, to approve a Grant Agreement among Ramona Senior Complex, the County of San Bernardino and the City for $300,000. (Commission Development Commission) Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, to approve amendments to Owner Participation Agreement by and between Ramona Senior Complex and the Agency in the form of the amended composite OP A as attached. Councilman Hernandez felt the rents for this project were too expensive for the citizens off the center. He believed that there was a need for the center, however, the rental rates were too high. He questioned who would be responsible for the overseeing of this project. COUNOLWOMAN POPE-LUDLAM WAS EXCUSED AT 6:10 P.M. Timothy Sabo, Special Counsel, Sabo and Green, stated that there was no need for an oversight committee since the project was almost complete. COUNOL WOMAN POPE-LUDLAM RETURNED AT 6:11 P.M. Mr. Sabo explained that Ramona Senior Housing, Inc., would not be involved with the day to day activities of the project and would have limited participation with the project. Councilman Hernandez commented that Casa Ramona was suppose to be a self help facility. However, if the tax credits are received, that would not be possible. Mr. Sabo stated that with CHF A, the project would have more options and more control than with the tax credits. The motions carried by the following vote: Ayes: Council Members Negrete; Hernandez; Pope- Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: Commission Member Curlin; Oberhelman. RS-2. GREAT WESTERN WALL DEMOLITION - COURT STREET PARKING LOT (Community DevelQpment Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to approve a change order to the current contract with Larry Jacinto Construction in the amount of $8,466.00 for removal of the southern portion of the Great Western Wall to a height of 42 inches above grade, and allocate funds for same. REGULAR MEETING KJH:lmp:cmin4r1 COMMISSION MINUTES Aprll4, 1994 11 -'.- t_ The motion carried by the following vote: Ayes: Commission Members Negrete; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Curlin; Oberhelman. 17. ADJOURNMENT At 6:30 p.m., the meeting of the Mayor and Common Council and the Community Development Commission was adjourned to Monday, April 18, 1994 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. Respectfully submitted: THI Executive Directo I Secretary to the Commission REGULAR MEETING KJH: Imp: cmin4rl 12 COMMISSION MINUTES April 4, 1994 -. ...... .... -- -. ,'i ...... [ [ [ MAYORANDCOMMONCOUNOL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE OTY OF SAN BERNARDINO MINUTES JOINT REGULAR MEETING April 18, 1994 11 :00 8.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately 4: 16 p.m., on Monday, Apri14, 1994 . ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. 1. Curlin; Ralph Hernandez; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: Commission Member David Oberhelman. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth 1. Henderson, Executive Director, Development Deparbnent; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator; Jim Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Melanie Vale, Deputy City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Deparbnent. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Jeff Wright, P. O. Box 2341, San Bernardino, commented on the discussion of the public comments agenda item at the Legislative Review Committee on Thursday, Apri114, 1994. Mr. Wright also discussed the symbolizing of writing "Pink Floyd" on the wall that was to be demolished. He emphasized on the authorization he was given to do so. CONSENT CALENDAR JOINT REGULAR MEETING KJH:lmp:cmin4j2 1 COMMISSION MINUTES Apri118,1994 The Commission Members requested items numbered "2", "3", and "6", be removed from the Consent Calendar. Commission Member Hernandez made a motion, seconded by Commission Member Devlin, that the Consent Calendar items numbered "1" through "6" be adopted, except for items numbered "2", "3", and "6", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. 1. JOINT POWERS FINANCING AUTHORITY (Community DevelQpment Commission) Commission Member Hernandez made a motion, seconded by Commission Member Devlin, that the Regular Meeting of the Joint Powers Financing Authority be continued to Monday, May 16, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. 4. ADVERTISE FOR BIDS - INSTALLATION OF PLAYGROUND EOUlPMENT AT ENCANTO PARK (Mayor and Common Council) Councilman Hernandez made a motion, seconded by Councilman Devlin, that the plans for the installation of playground equipment and handicap accessible matting at Encanto Park, in accordance with Plan No. 9090, be approved; and the director of Public Works/City Engineer be authorized to advertise for bids. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman. JOINT REGULAR MEETING KJH:lmp:cmin4j2 2 COMMISSION MINUTES April 18,1994 ., I ;1 ....J , -'" ] 5. AWARD OF CONTRACf - CONSTRUCfION OF RICHARDSON STREET STORM DRAINS [ (Mayor and Common Council) Councilman Hernandez made a motion, seconded by Councilman Devlin, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-99 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO CORNISH CONSTRUCTION COMPANY, INC., FOR INSTALLATION OF THE RICHARDSON STREET STORM DRAIN, FROM DAVIDSON STREET TO MISSION CREEK. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman. 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Development Commission) Commission Member Devlin indicated that the dates for Item #8 which reads "October 15, 1994 to October 15, 1994", should be corrected. r Timothy C., Steinhaus, Administrator, Economic Development Agency, stated that the dates should L read, "October 15, 1994 to October 15,1995. Jeff Wright, P. O. Box 2341, San Bernardino, California, questioned whether or not the item on "Public Comments" was discussed at this meeting. Commission Member Devlin made a motion, seconded by Commission Member Negrete, that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of March 7, 1994, be approved as corrected. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. 2. REDEVELOPMENT COMMITTEE MINUTES (Community Development Commission) Jeff Wright, P. O. Box 2341, San Bernardino, California, commented on whether or not the item on "Public Comments" was discussed at the Redevelopment Committee. r-- I I L JOINT REGULAR MEETING KJH:lmp:cmin4j2 3 COMMISSION MINUTES Apri118,1994 Kenneth 1. Henderson, Executive Director, Development Department, explained that the Redevelopment Committee has not discussed that item. Commission Member Hernandez made a motion, seconded by Commission Member Devlin, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meetings of March 10, 1994 and March 28, 1994, be received and flIed. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. 6. RIGHT-OF-WAY ACOUISITION - SAN BERNARDINO COUNTY SUPERINTENDENT OF SCHOOLS (Community Development Commission) Commission Member Negrete made a motion, seconded by Commission Member Miller, to authorize the Executive Director to acquire right-of-way necessary for the construction of the Central Police Station from the San Bernardino County Superintendent of Schools for the price of $85,000.00, plus estimated escrow and title fees of$I,100.00, and execute any and all documents necessary to complete the acquisition. Commission Member Hernandez explained that he would like to vote no on this item. Jeff Wright, P. O. Box 2341, San Bernardino, California, commented on the cost of this item to the City and stated that this item should have been off the Consent Calendar for the publics review. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Hernandez. Abstain: None. Absent: Commission Member Oberhelman. END OF CONSENT CALENDAR 7. CONTINUED FROM APRIL 4. 1994 EDGEHILL VILLAGE REINSTALLATION OF GREENBELT (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, stated that Edgehill Village is compiled of both sales and rental properties. He explained that this item was originally proposed to be funded by revenue bonds from the sales of the properties. JOINT REGULAR MEETING KJH:lmp:cmin4j2 4 COMMISSION MINUTES April 18,1994 ,., i i 'jj .....JJ ,., \~ t- ... .... ...... r ~. L- ,...... I...... ",... -..... Dennis A. Barlow, Senior Assistant City Attorney, recommended that Motion "C" of this item be revised to request the Mayor and Common Council to complete an action rather than give instructions to the City Administrator. Commission Member Curlin commented on the cost to property owners to maintain their property. Shauna Clark, City Administrator, explained that the agreement will require property owners to maintain their property. She indicated that the City would maintain the property at a cost to the owner, or the City would maintain the property and place a lien on the property, if the owner failed to do so. Commission Member Hernandez requested a copy of the document to be sent to the property owners regarding this issue for his review. Commission Member Pope-Ludlam commented on the fire hazards located in this area and the need to approve this item. COMMISSION MEMBER MILLER WAS EXCUSED AT 3:23 P.M. JefIWright, P. O. Box 2341, San Bernardino, California, asked if the property in question is where the bomb factory was previously located. Chairman Minor stated that he was unaware of a bomb factory on this site. Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, that the following motions be approved and adopted: That the Community Development Commission approve a grant in the approximate amount of $23,500.00 utilizing 20% set aside funds for the installation of approximately 62,000 square feet of irrigation and drought tolerant landscaping at Edgehill Village, 1400-1500 Edgehill Road. That the Community Development Commission authorize the preparation of an agreement between the Commission and Edgehill Village Homeowners Association, allowing for the installation of the greenbelt and collection and/or liening or the property should the association fail to maintain the property. That the Community Development Commission request that the Mayor and Common Council direct the Director of the Parks, Recreation and Community Services Department to oversee the repair and installation of the greenbelt. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. JOINT REGULAR MEETING KJH:lmp:cmin4j2 5 COMMISSION MINUTES April 18, 1994 8. FEDERAL BANKRUPTCY COURT RETENTION - YMCA PARKING LOT ... (Community Development Commission) t~ Commission Member Devlin made a motion, seconded by Commission Member Negrete, that the following motions be approved and adopted: ..... That the Community Development Commission approve the construction of parking lot improvements on a vacant parcel owned by the YMCA at an estimated cost of $280,000; further, that the Economic Development Agency budget be increased by $280,000 plus monthly ground lease costs. That the Community Development Commission authorize staff to negotiate an agreement whereby the YMCA would install parking lot improvements on the vacant land parcel.. That the Community Development Commission approve a ground lease from the YMCA to the EDA, as well as a lease of the completed parking lot from EDA to the Bankruptcy Court landlord. Commission Member Hernandez expressed concern regarding the retention of the Bankruptcy Court in the City of San Bernardino. He commented on the architects retained for the Superblock removing the Court from the design. Timothy C. Steinhaus, Administrator, Economic Development Agency, commented on staff's efforts to retain the Bankruptcy Court in San Bernardino. He explained to the Commission that in the event the Court did not remain in the City the parking lot could be used for other projects. .... Discussion ensued regarding the need to show the Bankruptcy Court that the City was committed to .... retaining them in the City. Commission Member Hernandez commented on the cost of this project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Hernandez. Absent: Commission Member Oberhelman. 9. EIR CONSULTANT - SUPERBLOCK (l\fayor and Common Council) Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the costs for this item would be reimbursed by the State. Jeff Wright, P. O. Box 2341, San Bernardino, California, commented on the EIR Report being proposed by staff. ~ JOINT REGULAR MEETING KJH:lmp:cmin4j2 6 COMMISSION MINUTES April 18,1994 ......, Councilman Devlin made a motion, seconded by Councilwoman Miller, to authorize the Mayor and ~ City Clerk to execute a contract with the staff recommended EIR consultant in an amount not to exceed I $150,000.00 L..., The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman. (Community Development Commission) Commission Member Devlin made a motion, seconded by Commission Member Miller, to authorize the Executive Director to reimburse the City of the contracted EIR consultant, including expenses incurred for the City staff environmental consultant (Tom Dodson & Associates, not-to-exceed $15,000.00) and direct expenses, and allocate bond proceeds in the estimated amount of $150,000.00 for same. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. 10. INLAND PLAZA REFINANCING - PUBLIC HEARING OPEN PUBLIC HEARING CLOSE PUBLIC HEARING ,,- (Mayor and Common Council) ; Ir.- Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on the history of this item. JefIWright, P. O. Box 2341, San Bernardino, California, questioned the funding source for this item. Mr. Henderson explained that bond issues were used for this item. Councilwoman Pope-Ludlam made a motion, seconded by Councilman Curlin, to close the public hearing. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman. Councilman Hernandez made a motion, seconded by Councilman Negrete, that the following resolutions be approved and adopted: ,.... RESOLUTION NUMBER 94-100 ........ JOINT REGULAR MEETING KJH:lmp:cmin4j2 7 COMMISSION MINUTES April 18, 1994 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REGARDING THE HOLDING OF A PUBLIC HEARING IN CONNECTION ,... WITH THE EXTENSION OF THE MATURITY OF THE $2,200,000 CITY OF SAN BERNARDINO, CALIFORNIA, INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 1983A (INLAND VALLEY PROJECT). ...... RESOLUTION NUMBER 94-101 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE EXTENSION OF THE MATURITY OF THE $2,200,000 CITY OF SAN BERNARDINO, CALIFORNIA, INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 1983A (INLAND VALLEY PROJECT). The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. 11. WARM CREEK APARTMENTS .. ()fayor and Common Council) .... Councilman Hernandez made a motion, seconded by Councilman Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-102 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A FIRST SUPPLEMENTAL INDENTURE AND A SECOND SUPPLEMENTAL INDENTURE FOR ITS MULTIFAMILY HOUSING REVENUE BONDS (WARM CREEK APARTMENTS PROJECT) SERIES 1985. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. 12. FREEWAY HOME CENTER .... JOINT REGULAR MEETING KJH:lmp:cmin4j2 8 COMMISSION MINUTES April 18,1994 ..... [ r L ~ L (Community Development Commission) (Redevelopment Committee Recommendation) Kenneth J. Henderson, Executive Director, Development Department, explained previous recommendations that have been approved for this item. He explained that R TC had agreed to sell the property to Allan Steward, Steward and Associates. Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to authorize and direct staff to submit a $2.5 million dollar loan application to a private lender for the purpose of reloaning the loan proceeds to Allan Steward, Inc., for purposes of acquiring and renovating the Freeway Home Center and for working capital, subject to review of Allan Steward's financial capacity and, further, authorize the chairman and Executive Director to execute an Owner Participation Agreement to include a personal guarantee pledge by Allan Steward (NO VOTE TAKEN) Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that RTC had informed the Agency of its willingness to sell the property to Mr. Steward despite his current legal problems. Commission Member Devlin expressed concern regarding the Agency loaning funds to Mr. Steward at this time. Chairman Minor spoke of the pass-through loan as requested by Mr. Steward Commission Member Pope-Ludlam emphasized on the need for improvements to the Freeway Home Center. Commission Member Miller commented on the amount of funds being proposed for this project. She indicated that the funds being used for this project were all City funds, and that the developer was not contributing any personal funds to this project. Discussion ensued regarding various projects funded by the City. COMMISSION MEMBER MILLER WAS EXCUSED AT 3:20 P.M. COMMISSION MEMBER MILLER RETURNED AT 3:23 P.M. Commission Member Hernandez asked if the Agency would be repaid for its investment in this project. Mr. Steinhaus, Administrator, Economic Development Agency, stated that if and when the project is sold, the Agency would be repaid with interest. Mr. Steinhaus indicated that the bank would loan the Agency $2.5 million and amortize it over ten (10) years instead of five (5) years. Allan Steward, Steward and Associates, emphasized that the project would only be successful if amortized over 25 years. . Jeff Wright, P. O. Box 2341, San Bernardino, concurred with comments made by Commission JOINT REGULAR MEETING KJH:lmp:cmin4j2 COMMISSION MINUTES April 18, 1994 9 L_n_ Member Miller. Commission Member Curlin recommended this item be continued until additional information is available. --. ~ i ....I Commission Member Pope-Ludlam reiterated the need to fund this project. Esther Estrada, Ramona Senior Housing, Inc., requested an opportunity to correct statements made regarding her project. She explained that Casa Ramona was a non-profit organization which has invested over $300,000 into the project. She stated that the funds received from the Agency would be repaid. RECESSED MEETING At 3:40 p.m., Chairman Minor recessed the meeting of the Mayor and Common Council and the Community Development Commission for five (5) minutes. MEETING RECONVENED At 3:45 p.m., the meeting of the Mayor and Common Council and the Community Development Commission was reconvened. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. 1. Curlin; Ralph Hernandez; Jeny Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: Commission Member David Oberhelman. .., ~ :~ STAFF PRESENT .. Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth 1. Henderson, Executive Director, Development Department; Shauna Clark, City Administrator; Fred Wilson, Assistant City Administrator; Jim Penman, City Attorney; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Melanie Vale, Deputy City Clerk; Diane Jones, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. 12. FREEWAY HOME CENTER JOINT REGULAR MEETING KJH:lmp:cmin4j2 10 COMMISSION MINUTES April 18,1994 ... n ~ i -J [ r- L [ (Community Development Commission) ~edevelopment Committee Recommendation) Evlyn Kenny, San Bernardino, felt this item should not be approved. She expressed concern regarding additional funds need to protect citizens in their homes. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that RTC indicated that there were other interest buyers for this property. Allan Steward, Steward and Associates, explained that he is currently working with 60 square units of tenants to locate to this area. Commission Member Curlin made a motion, seconded by Commission Member Negrete, to authorize and direct staff to submit a $2.5 million dollar loan application to a private lender for the purpose of reloaning the loan proceeds to Allan Steward, Inc., for purposes of acquiring and renovating the Freeway Home Center and for working capital, subject to review of Allan Steward's financial capacity and further, authorize the chairman and Executive Director to execute an Owner Participation Agreement to include a personal guarantee pledge by Allan Steward, contingent upon approval of getting a 25 year amortization, 8% interest, 7 year call. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Devlin; Miller. Abstain: None. Absent: Commission Member Oberhelman. 13. ARROW VISTA HOUSING DEVELOPMENT PROJEcr (Community Development Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez, to approve implementation of the agreement for termination of obligations pertaining to the Arrow Vista Housing Development, authorize the utilization of $120,000 in available low income housing monies and authorize the Chairman and Executive Director to execute any documents necessary to effectuate said implementation. (No Vote Taken) Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Agency was asking that this project revert back to the Agency and that John Dukes, Dukes-Dukes and Associates be hired to act as a consultant for the project. He stated that there was a termination clause in the agreement. Mr. Steinhaus briefed the Commission on the process needed if the Commission elected to foreclose on this loan. Commission Member Devlin questioned whether or not Mr. Dukes was willing to repay the Agency with a portion of his consulting services fee. Jeff Wright, P. O. Box 2341, San Bernardino, California, commented on the amount of funds being JOINT REGULAR MEETING KJH:lmp:cmin4j2 11 COMMISSION MINUTES April 18, 1994 paid to the developer as a consulting services fee. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam; Miller. Noes: Commission Member Devlin. Abstain: None. Absent: Commission Member Oberhelman. 14. SAN MARCOS STREET IMPROVEMENT PROJECT (Community Development Commission) ~edevelopment Committee's Recommendation) Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to continue this item until May 2,1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. RS-l. SAN BERNARDINO COUNTY LAW LIBRARY RETENTION (Commission Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that approval of this item would be a positive move toward gaining the confidence of the Bankruptcy Court. Discussion ensued regarding the various motions listed in the staff report. Commission Member Hernandez made a motion, seconded by Commission Member Miller, to authorize the Executive Director to execute an Agreement of Purchase and Sale and Joint Escrow Instructions between Bank of America National Trust Savings Association and the Redevelopment Agency. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. (M&yor and Common Council) Councilman Hernandez made a motion, seconded by Councilwoman Miller, to set a joint public hearing for May 15, 1994, to consider approval of a Disposition and Development Agreement between the Redevelopment Agency and the San Bernardino County Law Library Board of Trustees. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Councilman Oberhelman. RS-2. LOCAL BID PREFERENCE JOINT REGULAR MEETING KJH:lmp:cmin4j2 12 COMMISSION MINUTES April 18, 1994 -... .~ ..."jj .. .....J -... ~ ~ , -J [ ",...... --- ".... t '-- (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to adopt Section 3.04.125 of the San Bernardino Municipal Code as its Local Bid Preference Policy if said section is actually approved by the Mayor and Common Council. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. RS-3. GENERAL COUNSEL SERVICES (Community Development Commission) Commission Member Miller made a motion, seconded by Commission Member Negrete, to approve the retention of the City Attorney as Economic Development Agency General Counsel until a new Agency General Counsel is selected by the Commission. Commission Member Hernandez recommended that the City Attorney's Office only continue working on existing Agency projects. Timothy C. Steinhaus, Administrator, Economic Development Agency, commented on the need to continue using the City Attorney's Office on a case by case basis until new Counsel for the Agency is obtained. Dennis A. Barlow, Senior Assistant City Attorney, stated that the City Attorney's Office was in agreement with this item. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: Commission Member Oberhelman. ARS-l-l PROPOSED INCREASE IN COMMUNITY DEVELOPMENT COMMISSION MEMBERSCO~ENSATION (Mayor and Common Council) (Councilwoman Pope-Ludlam's Recommendation) Dennis A. Barlow, Senior Assistant City Attorney expressed concern regarding the legality of including annual CPI increases as part of the Commission's raise. Councilman Hernandez indicated that the request to increase the Commission's salary was not a new JOINT REGULAR MEETING KJH:lmp:cmin4j2 COMMISSION MINUTES April 18, 1994 13 issue. He explained that the salary of the Mayor was raised several years ago. Councilwoman Miller voiced her disapproval of this item. ,.... Councilwoman Pope-Ludlam commented on her conversation with the Mayor regarding placing this item on the Commission Agenda. ;4 B ...", Mayor Minor recommended that the citizens of San Bernardino vote to raise the salary of the Commission Members. He stated that he would support a charter amendment on the ballot. Councilman Curlin commented on the negative press that has been received as a result of this item. He suggested that this item be either tabled or continued until a later date when the Mayor has had ample time to thoroughly research and review this item. Jeff Wright, P. O. Box 2341, San Bernardino, concurred that the Commission did deserve a raise but requested that it be done by vote of the people and not the Council. Evlyn Kenny, Citizen, stated that the Council was paid $550.00 a month. Esther Estrada, Ramona Senior Housing Inc., recommended the Council approve a Blue Ribbon Advisory Committee to address this issue. Councilwoman Pope-Ludlam made a motion, seconded by Councilman Hernandez, to approve a resolution increasing the Community Development Commission compensation from $75.00 per meeting to $1500.00 per month and amending the previous actions of the Mayor and Common Council. ... The motion failed by the following vote: Ayes: Council Members Hernandez; Pope-Ludlam. Noes: ...", Council Members Negrete; Curlin; Devlin; Miller. Abstain: None. Absent: Councilman Oberhelman. 17. ADJOURNMENT At 5:23 p.m., the meeting of the Mayor and Common Council and the Community Development Commission was adjourned to Monday, May 2, 1994 at 11:00 a.m. , in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. Respectfully submitted: ~~ERSON Executive Directorl Secretary to the Commission JOINT REGULAR MEETING KJH:lmp:cmin4j2 14 COMMISSION MINUTES April 18, 1994 -, I .~ ......J r '-- [ [ MAYORANDCOMMONCOUNca AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES REGULAR MEETING May 2, 1994 11:00 a.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chambers, City Hall, 300 North "0" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately 11:00 a.m., on Monday, May 2, 1994. ROLLCALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. omERS IN A'ITENDANCE Richard Brooks, The Sun Newspaper; John Husing, ECAP; Timothy Sabo, Special Counsel, Sabo and Green. PUBLIC COMMENTS ON ITEM..C;; NOT ON THE AGENDA Jeff Wright, P. O. Box 2341, San Bernardino, CA, expressed concern regarding statements being made about his comments at the Commission Meetings. Jim Schlata, Citizen, commented on the need for citizens to fight for their rights. Commission Member Hernandez spoke of constant newspaper articles which implement that the City is giving away public funds. He recommended citizens report the misuse of funds to the proper authorities if they have evidence. REGULAR MEETING KJH:lmp:cmin5rl 1 COMMISSION MINUTES May 2, 1994 "--[ Commission Member Curlin requested speakers properly identify themselves when speaking at the podium for validity. ..... Bob Nelson, Citizen, commented on the need to make various changes within the City. ~ I Gary Kirby, 1505 Yardly, San Bernardino, commented on the Commission Members making various statements which attack the public. He explained that the meetings would run more smoothly if various statements were ignored rather than acted upon. Mr. Kirby recommended the Councilman of the Fifth Ward hold public forums to keep the residents of the Fifth Ward informed of all issues. The Commission Members requested item number "5" be removed from the Consent Calendar. Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the Consent Calendar items numbered "1" through "5" be adopted except for item number "5", respectively. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community DevelOJ)ment Commission) --- Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, -II that the minutes of the Community Development Commission of the City of San Bernardino for the meeting of April 4, 1994 be approved as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 2. FY 1994/1995 COMMUNITY DEVELOPMENT BLOCK GRANT CDBG PUBLIC HEARING (Mayor and Common Council) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that May 16, 1994 at 3:00 p.m., be established as the date and time for the FY 1994/1995 CDBG Public Hearing for consideration for various proposals requesting CDBG ftnancial assistance for the period beginning July 1, 1994 and ending June 30, 1995. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETING KJH:lmp:cmin5r1 2 COMMISSION MINUTES May 2, 1994 --. , i ~ ....." r ..... 3. RENDIDEPOSIT GUARANTEE PROGRAM (Community DevelQpment Commission) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to approve designation of the Parks, Recreation and Community Services Department (Westside Community Center) and Frazee Community Center as FY 1993-94 Rent Deposit Guarantee Program recipients. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 4. HOUSING DIVISION QUARTERLY ACTIVITY REPORT (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to receive and file the attached Housing Division Quarterly Activity Report for the months of January, February and March 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; ,....... Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. --.. r ~ , ! j ~ 5. SP COMMERCIAL DEVELOPMENT FIRST AMENDMENT AND CERTIFICATE OF COMPLETION (Community Development Commission) Commission Member Devlin asked if the developer had met all the necessary requirements for this item. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that all requirements were met and that all the fees were paid. Kenneth J. Henderson, Executive Director, Development Department, explained the terms of this agreement. Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, that the following motions and resolution be approved and adopted: That the Community Development Commission approve a First Amendment to an Owner Participation Agreement with SP Commercial Development. REGULAR MEETING KJH:lmp:cmin5r1 COMMISSION MINUTES May 2, 1994 3 That the Community Development Commission authorize the Chainnan and Secretary to execute the subject First Amendment. --. RESOLUTION NUMBER 5395 l? WIllI RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE EXECUTION OF A CERTIFICATE OF COMPLETION FOR SP COMMERCIAL DEVELOPMENT FOR mE DEVELOPMENT OF mE CLUB CENTER The motions carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 6. SUNLAC DEVELOPMENT PROJECT (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on the previous action related to this item and the problems that have incurred since the homes were built. He indicated that the developer spent funds to complete the homes rather than pay other obligations. Mr. Henderson commented on the additional improvements needed before the homes could be sold, emphasizing that without Agency assistance, the homes could not be sold. He stated that the homes had been ,... on the market for nine (9) months. .~ ..... Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to approve a proposal to finalize development of the Falcon Ridge housing development project, allocate $121,400 in available housing set-aside funds and authorize the Chairman and Executive Director to execute any documents necessary to effectuate implementation of said program. Commission Member Oberhelman questioned why the Agency was giving the developer $50,000 and loaning him $71,400. He felt that the entire amount should be in the form of a loan. Discussion ensued regarding the funding for this item from a private banker. Timothy C. Steinhaus, Agency Administrator, Economic Development Agency, commented on the need to assist the developer in order to sell the homes. He stated that the homes are already built. source. Commission Member Oberhelman reiterated on the need to seek assistance from an outside funding Commission Member Devlin asked if there was a completion bond on this project and if so, what it covered. ~ REGULAR MEETING KJH:lmp:cmin5r 1 4 COMMISSION MINUTES May 2, 1994 ...... r L.., r- , ! L ",..., I ....., Commission Member Oberhebnan made a motion, seconded by Commission Member Curlin to continue this item until May 16, 1994. The motions carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 7. ARCHAEOLOGICAL TFSTING. EVALUATION AND TREATMENT - SUPERBLOCK (Communily Development Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that this item was part of the environmental process that must be completed for the superblock. He indicated that since this was an historical area of the City, it had to be identified. Mr. Steinhaus stated that this item would award a contract of up to $45,000 to complete the archaeological testing of the area. He also stated that the Planning and Building Services Department and the consultants had reviewed this proposal. COMMISSION MEMBER MILLER WAS EXCUSED AT 11:40 A.M. Commission Member Devlin questioned the necessity of this item. Mr. Steinhaus explained that the City must go through the EIR process and be certified no later than September. COMMISSION MEMBER CURLIN WAS EXCUSED AT 11:43 A.M. COMMISSION MEMBER CURLIN RETURNED AT 11:44 P.M. Jeff Wright, P. O. Box 2341, San Bernardino, stated that the testing should have been done before the Platt Building was demolished. Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to authorize the Executive Director to draft and execute a contract with Statistical Research, Incorporated for an amount not to exceed $450,512 for archaeological testing, evaluation, and treatment for the construction of the State Consolidated Offices and CALTRANS Building on the Superblock and allocate funds for same, with the understanding that such funds will be reimbursed by the State of California as a cost to this project. Further, that staff be authorized to administer and execute change orders, limited to the amount of the contingency ($45,000). The motions carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhebnan; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. REGULAR MEETING KJH:bnp:cmin5rl COMMISSION MINUTES May 2, 1994 5 ml!..~ .., 8. TENANT SCREENING PROGRAM ~ ...,I (Community DevelQJ)ment Commission) (Councilman Hernandez's Recommendation) Commission Member Hernandez spoke of the nwnerous apartment complexes within the City that are experiencing drug problems. He stated that the problems will continue to get worse if a solution is not met. COMMISSION MEMBER OBERHELMAN WAS EXCUSED AT 12:47 P.M. COMMISSION MEMBER OBERHELMAN RETURNED AT 12:48 P.M. Commission Member Hernandez stated that more code enforcement was needed in those areas experiencing the problems. Commission Member Oberhelman concurred stating that every part of the City is impacted by the lack of tenant screening. Discussion ensued regarding the formation of an Ad Hoc Committee to address this issue. Phil Arvizo, Executive Assistant to the Council, informed the Commission that the City Administrator was also looking into this issue and stated that it would be discussed during the Legislative Review Committee. .... Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to refer this matter to the Legislative Review Committee. 'WtI/IJ The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. RECESSED MEETING Chairman Minor recessed the meeting of the Mayor and Common Council and the Community Development Commission at 12:00 p.m. to the Luncheon Workshop at the EDA Board Room. LUNCHEON WORKf;)HOP The Luncheon Workshop of the Mayor and Common Council and the Community Development Commission was called to order at 12:30 p.m. in the Economic Development Agency Board Room, 201 North "E" Street, Second Floor, San Bernardino, California. .... REGULAR MEETING KJH:lmp:cmin5r1 6 COMMISSION MINUTES May 2, 1994 ..... [ [ [ ROLL CALL Roll call was taken with the following members present: Commission Members Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: Chairman Tom Minor; Commission Members Edward Negrete; Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. omERS IN ATTENDANCE Dave Padrott, Staubach Company; Richard Mayo, State of California; Fred Kent, Project for Public Spaces; Judie Cady, Caltrans; Katherine Spitz, KSA; Paul Danna, KMJR; Rick Keating, KMJR; Mike Mann, KMJR; Cory Ticktin, KMJR; John Husing, ECAP; Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. 11. SCHEMATIC DESIGN: STATE CONSOLIDATED OFFICES AND CALTRANS BUILDING - LUNCHEON WORKSHOP (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department, gave a brief overview on the presentations made to date regarding the State Consolidated Offices and Caltrans Building. Dave Padrott, Staubach Company, commented on the steps taken to date regarding the schematic design and the types of material that could be used in building the project. Paul Danna, KMJR, showed various focal points within the City that helped the Commission Members identify how tall the State Building and the Caltrans Building would be. He suggested to the Commission that the building be built using warm tones and desert colors for a nicer look. He also commented on the benefit of using pre-cast material versus lime stone. Mr. Padrott stated that a mock-up of the project using a variety of materials could be done for the Commissions review. He also commented on a 360 seat auditorium that would be located at the bottom of the parking structure. Discussion ensued regarding the location of parking, easy access to the facilities, and the locating of a heli-port. REGULAR MEETING KJH:lmp:cmin5r I COMMISSION MINUTES May 2, 1994 7 -----::; J ~ Commission Member Hernandez made a motion, seconded by Commission member Oberhelman, to approve schematic design of the State Consolidated Offices and CALlRANS Building on the western two- thirds of the block bounded by Fourth. Fifth, "E" and "D" Streets and instruct staff to proceed with construction design and development. area. Fred Kent, Project for Public Spaces, discussed the impact this project will have on the downtown area. Bob Curci, Carousel Mall, made comments regarding the different facilities located in the downtown Timothy C. Steinhaus, Administrator, Economic Development Agency, made closing remarks regarding the project and stated that the mock-up of the facility will allow the Commission to get a better idea as to how the project will look. Mr. Padrott stated that he would review the possibility of locating a heli-stop on the project and share the costs with Mr. Steinhaus. He indicated that at present, the total project cost is approximately $90 million. The motion carried by the following vote: Ayes: Commission Members Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Members Negrete; Miller. The luncheon workshop concluded at 1 :32 p.m. The meeting of the Mayor and Common Council and the Community Development Commission was scheduled to reconvene at 3:00 p.m. MEETING RECONVENED The Regular Meeting of the Mayor and Common Council and the Community Development Commission was reconvened by Mayor Tom Minor at approximately 3:32 p.m., on Monday, May 2,1994. ROLLCALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; and Valerie Pope-Ludlam. Absent: Commission Member Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. REGULAR MEETING KJH: Imp: cmin5r1 8 COMMISSION MINUTES May 2, 1994 1 I ....J , ~ .,j -, ~~ " ~ ...... [ [ [ OTIlERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; John Husing, ECAP; Timothy Sabo, Special Counsel, Sabo and Green. 6. SUNLAC DEVELOPMENT PROJECT (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam to reconsider this item. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that this item was continued for two (2) weeks at the moming session of the meeting. Kenneth J. Henderson, Executive Director, Development Department, stated that Mr. Otis Lacy, Sunlac Development, was present to address any concerns the Commission may have in reference to this item. He indicated that previous discussions with the bank regarding financing for the project were not promising. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Pope-Ludlam. Noes: Commission Member Devlin. Abstain: None. Absent: Commission Member Miller. Mr. Henderson commented on the need for funding to make the necessary improvements to the homes before they are sold. He recommended the Commission proceed with this item so that the current escrows are not lost. . Commission Member Oberhelman recommended the total amount of funds requested be a loan rather than a partial grant. Otis Lacy, Sunlac Development, informed the Commission that he had incurred additional costs to the project for mandatory City fees and landscaping. He explained that those additional costs added to his funding shortage. Commission Member Curlin questioned whether or not Mr. Lacy owned any abandoned property in the City. Mr. Lacy stated that he owned additional property in the City that was in the process of being cleaned-up. Commission Member Oberhelman questioned the amount of personal funding invested in this project. Mr. Lacy indicated that he had invested approximately $250,000 in the project and expected to receive a profit of 7% on each $75,000. REGULAR MEETING KHI:lmp:cmin5r1 COMMISSION MINUTES May 2, 1994 9 Commission Member Oberhelman made a motion, seconded by Commission Member Devlin, to approve a loan in the amount of $121,400 and that it be repaid at the close of escrow. (No Vote Taken) Commission Member Pope-Ludlam spoke of using the 20% set-aside funds for the indented purpose. She recommended the Commission support the staff recommendation. Commission Member Hernandez made a substitute motion, seconded by Commission Member Pope- Ludlam, to approve a proposal to finalize development of the Falcon Ridge housing development project, allocate $121,400 in available housing set-aside funds with the understanding that $50,000 would be repaid to the Agency, and authorize the Chairman and Executive Director to execute any documents necessary to effectuate implementation of said program. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Oberhelman; Devlin; None. Abstain: None. Absent: Commission Member Miller. 9. ECONOMIC CONDITIONS OF THE CITY WORKSHOP (Community Development Commic;sion) Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Redevelopment Committee recommended Mr. John Husing, ECAP, briefly speak to the Commission regarding this issue. John Husing, ECAP, commented on both San Bernardino and Riverside growing from the recent recession. He spoke of the proper context needed in order for the City to better understand its community. Commission Member Hernandez questioned whether or not redevelopment funds would need to be put back into the economy. Mr. Husing briefly discussed the importance of redevelopment funds in the City. Commission Member Pope-Ludlam commented on the state of the City emphasizing on the problems of the City. She requested staff place an item on the Redevelopment Committee Agency regarding the ovemll economic interests of the City. Discussion ensued regarding the set-up of an Economic Summit Workshop, the attendees and also the host. Commission Member Pope-Ludlam recommended Mr. Husing host the summit due to his various experience and degrees with this subject matter. She explained that he has a better understanding of the problems of the City. City. Jeff Wright, P. O. Box 2341, San Bernardino, indicated that this summit would be a benefit to the REGULAR MEETING KJH:lmp:cmin5rl 10 COMMISSION MINUTES May 2, 1994 ..., i ...." -, ~ ':1 "-'II ~ i i ....J ,... , '- ,..... ! l... ".... ....... Evlyn Kenny, Citizen, requested the Commission not hire any more advisors for the City. Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to establish a date and time certain for the conducting of the Economic Condition of the City Workshop to be held the 3rd or 4th week in September. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. 10. SAN MARCOS STREET IMPROVEMENT PROJECT (Community DevelQJ)ment Commission) Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to continue this item until June 6,1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. 11. SCHEMATIC DESIGN: STATE CONSOLIDATED OFFICES AND CALTRANS BUILDING - LUNCHEON WORKSHOP (Community Development Commission) (This item was acted on during the luncheon workshop in the EDA Board Room) Commission Member Hernandez made a motion, seconded by Commission Member Oberhelman, to approve the schematic design of the State Consolidated Offices and CALTRANS Building on the western two-thirds of the block bounded by Fourth, Fifth, "E" and "E" Streets and instruct staff to proceed with construction design and development. The motion carried by the following vote: Ayes: Commission Members Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Members Negrete; Miller. REGULAR MEETING KJH:lmp:cmin5r1 COMMISSION MINUTES May 2, 1994 11 h RS-l. STANDARD MORTGAGE LOAN COMPANY ~ (Community Development Commission) (Councilwoman Pope-Ludlam's Recommendation) ....... Kenneth J. Henderson, Executive Director, Development Department, briefed the Commission on previous actions regarding this item. He explained recent changes that had been made to the agreement with Standard Mortgage per legal counsel of Riverside National Bank. Mr. Henderson stated that the change to the agreement would allow the bank to call for the Agency's guarantee the day that Standard Mortgage is late with its payment. Commission Member Hernandez asked if the Agency could seek assistance from another financial institution. Mr. Henderson explained that due to the time constraints, it would not be feasible. Commission Member Pope-Ludlam reiterated on the changes that were made to the agreement and the need to assist Standard Mortgage. Commission Member Oberhelman commented on the lack of information presented at the Commission Meeting as well as the risks involved if this item is approved. Mr. Henderson stated that the Agency was currently in negotiations with the bank regarding various terms in the agreement. .. Commission Member Curlin concurred with Commission Member Oberhelman and recommended ...,j this item be continued. Mr. Steinhaus explained that the Agency did not receive the request to place this item on the Agency agenda until Friday, April 29, 1994 at 11 :00 a.m. He indicated that the information from the bank was also not received until Friday by facsimile. Jeff Wright, P. O. Box 2341, San Bernardino, questioned the use for the funds requested. R. W. Steiler, Standard Mortgage, explained to the Commission that this was of urgency to Standard Mortgage. John Nolan, Attorney representing Standard Mortgage, stated that the modification made to the agreement does not increase the fmancial obligation of the Agency as guarantor. He emphasized that Standard Mortgage was pledging 33 trust deeds of property in excess of $2.5 million as collateral. Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam, to continue this matter to Thursday, May 5, 1994, at 3:30 p.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. ..... REGULAR MEETING KJH:lmp:cmin5rl 12 COMMISSION MINUTES May 2, 1994 ....... r ..... r- ! , Ir......" [ l _ 12. ADJOURNMENT At 5:50 p.m., the meeting of the Mayor and Common COWlciVCommunity Development Commission was adjourned to Monday, May 5, 1994 at 3:30 p.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. Respectfully submitted: KEN~ERSON Executive Director Secretary to the Commission REGULAR MEETING KJH:hnp:cmin5rl COMMISSION MINUTES May 2, 1994 13 ~ - ... .... .... D_ ...." [. , ' [ [ MA YOR AND COMMON COUNCILI COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING AUTHORITY OF THE CITY OF SAN BERNARDINO . MINUTES JOINT REGULAR MEETING May 16, 1994 The Joint Regular meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was called to order by Mayor Tom Minor at approximately 11:05 am., on Monday, May 16, 1994, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor, Commission Members Edward Negrete, Dr. F. J. Curlin, Ralph Hernandez, David Obethelman, Valerie Pope- Ludlam. Absent: Commission Members Jerry Devlin, Norine Miller. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Diane Roth, Deputy City Attorney; Shauna Clark, City Administrator, Lorraine Velarde, Executive Assistant to the Mayor, Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City CleJk; Melanie Vale, Deputy City CleJk; Deborah Enay, Administrative Secretary, Development Department. OTHERS IN ATTENDANCE Timothy Sabo, Special Counsel, Sabo & Green; Rhonda Connelly, Miller and Schroeder Financial, Inc. PUBLIC COMMENTS NOT ON THE AGENDA Jeff Wrigbt, P. O. Box 2341, San Bernardino, CA, commented on the newspaper article regarding jobs and endangered species. COMMISSION MEMBER JERRY DEVLIN ARRIVED AT 11:06 A.M. COMMISSION MEMBER NORINE MILLER ARRIVED AT 11:07 A.M. ~:ONSv'NT CALENDAR The Commission Members requested that items Olunbered "2 through 6" be removed from the Consent Calendar. ---------------------------------------------------------------- JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16,1994 KJH:d":MlHU11iSl~-1'.ocIo 1 1. JOINT POWERS FINANCING AUTHORITY . (Community Development Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez that the Regular Meeting of the Joint Powers Financing Authority be called to order. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-LudlllIl; Miller. Noes: None. Abstain: None. Absent: None. DEVELOPMENT DEPARTMENT 2. GTE SMALL BUSINESS INCUBATOR PROJECT GRANT (Community Development Commission) Commission Member Pope-Ludlam stated this item had been reviewed at the Redevelopment Committee level. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Hernandez to receive and file the attached staff report relative to the GTE Small Business Incubator Project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 3. RAY Of' HOPE MINISTRIES HOMELESS SHELTER UTILITY PAYMENTS PROGRA~ (Community Development Commission) Kenneth Henderson, Executive Director, Development Department, clarified the differences between the Good Shepherd Grant, which had been denied, and the Ray of Hope Ministries Utility Payment Program Application which was recommended for approval, as requested by Commission Member Curlin. Commission Member Obemelman made a motion, seconded by Commission Member Negrete to approve a $3,000 grant award to Ray of Hope Ministries under the Homeless Shelter and Utility Payments Program and authorize the Chainnan and Executive Director to execute any documents necessary to effectuate this tramacljrJll. The motion carried '='y the following yote: Ayes: Commission Members Negrete: Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. ---------------------------------------------------------------- JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16, 1994 K./H:cIIe:MlNUlESIOW-11.edo 2 , 1, w ....J -, H WIll ] [ [ r L.. 4. "FOCUS" NEIGHBORHOOD SELECTION (Community Development Commission) Commission Member Obemelman commented on diversifying the use of money throughout the City as oppose to just the Central City area, using the money in more preventive and proactive efforts in areas where deterioration has not reached the extreme. Commission Member Eddie Negrete questioned the parameters of the proposed focused neighbomood. He felt the homes in the area of 6th, 7th, G and H Streets should be included, especially with the City's concentration on the Superblock. He recommended this area be designated as soon as possible. Executive Director Kenneth J. Henderson, Development Department, explained the criteria used in the evaluation process by the Neighbod100d Preservation Team (NPT) which detennined the parameters of the focus neighbomood selection. The area in question (Sixth, Seventh, G and H Streets) was not predominantly owner-occupied; therefore, the area was not recommended for inclusion by the NPT. He infODDed the Commission that the downtown residents could apply for assistance through other city-wide neighbomood property assistance programs offered by the Agency's Housing Division. A number of marketing brochures detail the various programs for the public's infODD ation. Mr. Henderson explained this is a multi-year project with an estimated $1,000,000 in costs on each focus neighbomood. Commission Member Miller noted that 75-80% comes back to the Agency, with interest, in low-interest loans. Commission Member Negrete made a motion, seconded by Commission Member Pope- Ludlam to approve the designation of two (2) "focus" neighbomoods within the Central City Revitalization Strategy area based upon the boundaries set forth below: . 1-215 Freeway on the West, "E" Street on the East, Baseline Street to the North, and 9th Street to the South. . Sierra Way on the West, WateDDan Avenue on the East, Baseline Street to the North, and 9th Street to the South. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hemandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Obed1elman. None. Abstain: None. Absent: None. s. V ALLEY AUTO SUPPLY ACQUISITION (Community Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Pope- Ludlam to authorize the Executive Director to acquire fee title to Valley Auto Supply. ;\Ccessors parcel numbers 134-141-11 & 27, from LaITY G. Haupert and Carolyn S. Haupert for thf~ pl'icl' of $924.000, plus estimated escrow and title fees of $3.600. ,Uld authOlize the Executive DireclCll' tl) execute ,my and all documents necessary to complete the acquisition. ---------------------------------------------------------------- JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16,1994 KJH:cIIe:MlNU11!SfM.lI-1'.odo 3 }" " ti, '-" The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; OberlIelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. 6. CENTRAL POLICE STATION FINANCING (Mayor and Common Council) Councilman OberlIelman inquired as to whether underwriting companies were asked to submit bids. Mayor Minor reported that Miller and Schroeder had already perfoDlled most of the work by the time a decision was made to go out to bid, and that it would cost time to go out to bid. The Mayor suggested to continue with Miller & Schroeder, due to the fast track timeline on the completion of this project. Timothy Steinhaus, Economic Development Agency Administrator, detailed the work which has already been done by Miller & Schroeder on this project. Mr. Steinhaus reported that the cost of the project is estimated at $11.3 million (excluding land costs). Councilwoman Pope-LudImn made a motion, seconded by Councilman Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-118 RESOLUTION OF THE MAYOR AND COMMON COUNCn.. OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ISSUANCE OF NOT TO EXCEED $10,000,000 SAN BERNARDINO JOINT POWERS AUTHORITY, TAX ALLOCATION BONDS, ISSUE OF 1994 (pOLICE STATION FINANCING PROJECT) AND THE BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF THE PROCEEDS THEREFROM PURSUANT TO THAT CERTAIN LOAN AGREEMENT Motion "A" carried by the following vote: Ayes: Council Member Negrete; Curlin; Hernandez; Devlin; Pope-LudImn; Miller. Noes: Council Member OberlIelman. Abstain: None. (Community Development Commission) Commission Member Pope-LudImn, made a motion, seconded by Commission Member Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER 5396 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AUTHORIZING, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. THE BORROWING OF FUNDS FROM THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY r1'J\ TOTAL AGGREGATE PRINCTPAL AMOUNT OF NOT TO EXCEED $10.000.000. ;\UTHORIZING THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO i\ND AUTHORIZING AND DIRECTING THE PREPARATION. EXECUTION AND DELIVERY OF THE FORMS THEREOF ---------------------------------------------------------------- JOINT REGULAR MEEnNG COMMISSION MINUTES DATE: May 16, 1994 KJHld..'MlNUlESIll.....' '.ocIo 4 ., ....", -, ~ ..".j ,..... ~ .~ ~ " " .....tiI r '- "".... """" "".... '-- Motion "B" carried by the following vote: Ayes: Commission Member Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Obemelman. Abstain: None. Absent: None. (Joint Powers Financinr Authority) Council Member Pope-Ludlam, made a motion, seconded by Council Member Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER J-22 RESOLUTION OF TIlE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY AUTHORIZING TIlE ISSUANCE OF NOT TO EXCEED TAX ALLOCATION BONDS, ISSUE OF 1994 (pOLICE STATION FINANCING PROJECT), APPROVING TIlE FORM OF LEGAL DOCUMENTS, RELATED TIlERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF TIlE FINAL FORMS THEREOF Motion "C" carried by the following vote: Ayes: Council Member Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Council Member Obemelman. Abstain: None. END OF CONSENT CALENDAR 7. INSPECTOR OF RECORD.. POLICE FACILITY CONSTRUCTION (Community Development Commission) Timothy Steinhaus, EDA Administrator, asked that this item be approved subject to the Director of Planning and Building Services certifying the person recommended. Commission Member Pope-Ludhm made a motion, seconded by Commission Member Obemelman, to authorize the Executive Director to draft and execute a contract with Converse Consultant Inland Empire for an amount not to exceed $84,000 and estimated reimbursable expenses of $5,000 for Inspector of Record services for the construction of the new Central Police Station and authorize funding for same. Further, authorize staff to administer changes in the scope of services to the amount of the contingency ($6,720) and authorize funding for same. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. MEETING RECESSED At 11:54 am., the Mayor rece~sed the Mayor and Common Council, the C'ol1lmunity Development Commission and the Joillt Powers Financing Authority meeting until 2:(Jo p.Il). JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16,1994 K..H......MINUUSlt...-'..ocIo 5 MEETING RECONVENED At 3:45 pm., the meeting of the Mayor and Common Council, the Community Development Commission and Joint Powers Financing Authority was called to order by Mayor Minor. ROLL CALL ~ i I I I .....J Roll call was taken with the following members present: Chaionan Tom Minor, Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hemandez; David Oberhelman; Jeny Devlin. Absent: Commission Members Pope-Ludlam; Norine Miller. ST AFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Diane Roth, Deputy City Attorney; Lorraine Velarde, Executive Assistant to the Mayor, Phil Arvizo, Executive Assistant to the Council; Shauna Clark, City Administrator, Rachel Clark, City Clerlc; Melanie Vale, Deputy City Clerlc; Deborah Enay, Administrative Secretary, Development Department. OTHERS IN ATTENDANCE None. The Mayor requested item number 25 of the Mayor and Common Council Agenda be taken at the same time. COMMISSION MEMBERS VALERIE POPE-LUDLAM AND NORINE MILLER ARRIVED AT 3:46 P.M. -... .....J Council Office Recommended for ~proval by Lesislative Review Committee on 5/5/94 25. Resolution of the Mayor and Common Council of the City of San Bernardino mnending Resolution No. 9446 relating to time limits for the public to address the Mayor and Common Council. MOTION: That Section 6 of Resolution No. 9446 be amended, limiting members of the public to a total time of ten minutes when they address the Mayor and Common Council on either agenda or public comment items and limiting the time on each item to three minutes. and/or MOTION: That Section 7 of Resolution No. 9446 be amended. applying a three minute time limitation to a member qf the public addressing the f\ lay'" and COllllllon Council with po)sible Iwo minute extensions at Special f\"eetil1g~. -... ---------------------------------------------------------------- KJH:cI..:MlNU1I!S"....-1..edo 6 COMMISSION MINUTES DATE: May 16, 1994 <,' ,0, )/" v -*' JOINT REGULAR MEETING r ~ '-- r I I ~ "... '-- AGENCY ADMINISTRATION 8. PUBLIC COMMENTS AT COMMISSION MEETINGS (Community Development Commission) (Lepslative Review Committee Recommendation) COMMISSION MEMBER RALPH HERNANDEZ WAS EXCUSED AT 3:46 P.M. Public speaker, Jeff Wright, noted his objections to limiting the time for public comments. Mayor Minor requested Jeff Wright's removal from the podium and explained to the public that Mr. Wright was already given his opportunity to speak. on this same subject at the Redevelopment Committee level. Councilpersons Devlin, Miller, Oberhelman, made comments in favor of keeping the current three-minute time limit for public comments. Councilpersons Curlin and Pope-Ludlam were in favor of the fODD motions which would increase the public comments to not-to-exceed ten minutes. However, Councilwoman Pope-Ludlam felt the time should be extended beyond this at "Special" meetings because the public's comments are essential to decision-making process. COMMISSION MEMBER RALPH HERNANDEZ RETURNED AT 3:50 P.M. Discussion ensued regarding adherence of the 72-hour posting timeframe at the Redevelopment Committee and Legislative Review Committee levels; application of the time limits at Regular, Adjourned Regular and Special meetings; clarification of the Brown Act requirements regarding allowance for public comments, and so forth. City Administrator, Shauna Clark, pointed out that a Special meeting usually only has one item for discussion. There should be one rule for Regular and Adjourn Regular meetings (maximum of ten minutes) and another rule for Special meetings (maximum of five minutes). Commission Member Curlin made a motion, seconded by Commission Member Pope-Ludlam to adopt as policy the provisions of Resolution 94-46, as amended, relating to time limits for the public to address the ChaiDDan and Community Development Commission. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlam. Noes: Commission Members Obemelman; Devlin; Miller. Abstain: None. Absent: None. The Mayor vetoed simultaneously items numbered 25 on the Common Council agenda and 8 on the Community Development Commission agenda. Commission Member Hemantk;: staled Ihat the tvlayor cannot veto a Corl1lni~:sip" action according to parliamentary procedure tllJd Slate !tn\!. ---------------------------------------------------------------- JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16,1994 2ft K"H:d":M1NU1E~1'.ocIo 7 Diane Roth, Deputy City Attorney, stated the vetoing of the Mayor and Common Council item number 25, automatically cancels the Community Development Commission item because the motion is worded in such a way that not passing item number 25 negates the Community Development Commission item number 8. -, 1 I -J Council Member Hernandez requested fonn motion, Item No.8, be brought back to the next Commission meeting. DEVELOPMENT DEPARTMENT 9. MEXICAN CONSULATE RELOCATION AND LEASE (Community Development Commission) Kenneth Henderson, Executive Director, Development Department, provided background as detailed in the staff report and sought Commission direction regarding whether or not it wished staff to proceed with finalization of lease conditions and the construction of tenant improvement and necessary code requirements for the relocation of the Mexican Consulate into 532 North "0" Street as sole occupant. The Consulate's present lease expires in September 1994. Discussion ensued regarding the construction costs, financial analysis, the best use of the land, recuperable costs, parking lot spaces for both the Mexican Consulate and U.S. Postal SelVice, the Commission obligation to comply with the substance of fonner Mayor Holcomb's letter dated January 20, 1993, and fonner Commission actions. Commission Member Pope-Ludlmn suggested either negotiating the proposed rent mn ount or immediately start to search for a better quality space, but in a less valuable spot. ,., t~ 3 wIfJI Commission Member Hernandez made a motion, seconded by Commission Member Oberllelman to approve appropriation of $325,000 in bond proceeds to fmance the code-required improvements and tenant improvements related to the relocation of the Mexican Consulate to Agency- owned property at 532 North "0" Street. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberllelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. RECONSIDERA TION OF ITEM NO.8 8. PUBLIC COMMENTS AT COMMISSION MEETINGS AGENCY ADMINISTRATION . (Communitv DeveloDment CommissioJl) ILel!:is!;\the Revi~w Committee Recommendation} Commission Member Heman(/ez mHtk a motion. seconded by Commission Member Curlin to reconsider item number 8. -.. JOINT REGULAR MEETING ---------------------------------------------------------------- K,/H:dle :MlNUlliSIlI4-I-1'.odo 8 COMMISSION MINUTES DATE: May 16,1994 .....J 2A [ [ [ The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlmn; Miller. Noes: Commission Members ObeIhelman; Devlin. Abstain: None. Absent: None. Deputy City Attorney, Diane Roth, reiterated that when the Mayor and Common Council item nwnber 25 was vetoed, it automatically cancelled the Community Development Commission item nwnber 8 due to the wording of the motion being contingent on the adoption of item number 25. Commission Member Hernandez disagreed because item number 8 was recommended to the Community Development Commission from the Legislative Review Committee. The Commission agreed to go with the amendment as recommended by the Legislative Review Committee. Commission Member Hernandez introduced his attorney, Stephen J. Kaufman, DeAguilera & Kaufman Professional Law COIporation, 341 W. Second Street, Suite 6A, San Bernardino, CA 92401. Mr. Kaufman stated the Community Development Commission action is not subject to the veto power of the Mayor. Due to the fact both items were acted on simultaneously, the Mayor does not have the power to veto the Commission item no. 8 in the same action as the Council item number 25. DEPUTY CITY ATTORNEY, DIANE ROTH, WAS REPLACED BY CITY ATTORNEY, JAMES PENMAN AT 4:30 P.M. City Attorney James Penman reminded the Commission that the City Attorney's Office recommended that Council matters not be put on the Commission agenda for just this reason. Mr. Penman reaffiuned that both Attorney Stephen Kaufman and Deputy City Attorney Diane Roth are correct in advising that the vetoing of Council item number 25 would negate the Commission item number 8 by virtue of how it was worded. He recommended putting Item No. 8 back on the agenda, as Commission Member Hernandez requested. Commission Member Hernandez made a motion, seconded by Commission Member Pope- Ludlmn to adopt as policy the provisions of Resolution 94-46, as amended, relating to time limits for the public to address the Chaiunan and Community Development Commission. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Pope-Ludlmn. Noes: Commission Members ObeIhelman; Devlin; Miller. Abstain: None. Absent: None. CITY ATTORNEY JAMES PENMAN WAS EXCUSED AND DEPUTY CITY ATTORNEY DIANE ROTH RETURNED AT 4:39 P.M. COMMISSION MEMBER VALERIE POPE.LUDLAM WAS EXCUSED AT 4:39 P.M. AGENCY ADMINISTRATION 10. S~N BERNARDINO COUNTY LAW LIBRARY RETENTION (CUJlutlunih' JJevelupnJent Commission) Chaiunan Minor opened the Public Hearing at 4:40 pm. ---------------------------------------------------------------- JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16, 1994 2A K./H:d...MINUTI!SIt....-1..odo 9 Economic Development Agency Administrator, Timothy Steinhaus, stated this is a Public Hearing to discuss and take possible action on the purchase and resale of the property on 402 North "D" Street. The Agency plans to buy the building from Bank of America, then sell the building pad, l plus 5,000 square feet additional land to the County Law Library. The Agency will retain the parking area around it, and the Law Library will retain the building. ;, -J There were no public comments. Commission Member Obemelman made a motion, seconded by Commission Member Hernandez to close the Public Hearing. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Pope-Ludlam. (Community Development Commission) Commission Member Obemelman made a motion, seconded by Commission Member Miller to approve the resolution as follows: RESOLUTION NUMBER 5397 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN DISPOSmON AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO COUNTY LAW LffiRARY BOARD OF TRUSTEES Motion "A" carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Pope-Ludlam. Commission Member Obemelman made a motion, seconded by Commission Member Miller to authorize the Executive Director to execute an Assignment and Assumption Agreement (pertaining to an asbestos removal contract) between the Redevelopment Agency and Bank of America National Trust and Savings Association. Motion "B" carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Pope-Ludlam. Commission Member Obemelman made a motion, seconded by Commission Member Miller to reaffinn its motion from the meeting of April 18, 1994, authorizing the Executive Director to execute an Agreement of Purchase and Sale and Joint Escrow Instructions between Bank of America National Trust and Savings Association and the Redevelopment Agency. Motion "C" carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obemelman; Devlin: Miller. Noes: None. Abstain: None. Absent: P(lI'~:-Lt1dlml1. ---------------------------------------------------------------- JOINT REGULAR MEETlNG COMMISSION MINUTES DATE: May 16, 1994 K.lH"'Ie,MlNUTESIN+1'.odo 10 Zit- J i f i~ ....." [ ,.... I L r ! L., . I DEVELOPMENT DEPARTMENT 11. ALLOCATION OF LOW .A~p l\-JODERA 'I:~.INCOME HOUSING FUNDS WITH THE INLAND V ALLEY DEVELOPMENT AGENCY (Community Developaqent Commission) Commission Member Obethelman made a motion, seconded by Commission Member Hernandez to approve the resolution as follows: RESOLUTION NUMBER 5398 RESOLUTION OF TIIE COMMUNITY DEVELOPMENT COMMISSION OF TIIE CITY OF SAN BERNARDINO APPROVING AN AGREEMENT REGARDING TIIE ALLOCATION OF LOW- AND MODERATE-INCOME HOUSING FUNDS WITH TIIE INLAND VALLEY DEVELOPMENT AGENCY The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Pope-Ludlan. COMMISSION MEMBER POPE.LUDLAM RETURNED AT 4:41 P.M. 12. ARROW VISTA HOUSING DEVELOPMENT PROJECT (Community Development Commission) Commission Member Hernandez made a motion, seconded by Commission Member Miller to approve item no. 12. Commission Member Obethelman summarized past Commission actions relative to the Arrow Vista Housing project and Dukes-Dukes and Associates. He recommended dropping the price of the homes to expedite sales and/or availing monetary allowances to the buyer for improvements as oppose to paying Pridemark Homes. Discussion ensued relative to making repairs or improvements to the homes until a buyer has been found to avoid any further vandalism, the proposed use of funds on repairs/ improvements, the quality of selVice provided by the security company and so forth. Commission Member Pope-Ludlam stated she wanted more infonnation on Inland Cities and its marketing selVices (Motion B). She recommended Motion B be sent back to the next Housing Committee and subsequently return to the Commission meeting on June 6, 1994. Commission Member Pope-Ludlam made a motion. seconded by Commission Member Hernandez to approve (Motj(lo "A" I the utjJi7--ation d Pridemark Homes to provide nrious contractor selVices in conjunction with the Arrow Vis.a Housing Development Project. allocl1e tIlt' utilization of $300,000 in low to moderate income housillg funds and authorize the Chainnan and Executive Director to execute any documents necessmy to effectuate implementation of said contractor selvices. JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16, 1994 KJH"''':MINU'MS,,"-11.ecIo 11 2* ,. 1 The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hemandez; Pope-Ludlmn; Miller. Noes: Commission Members Obethelman; Devlin. Abstain: None. Absent: None. .., I ......J Commission Member Pope-Ludlmn made a motion, seconded by Commission Member Hernandez to send Motion "B" back to the Housing Committee and subsequently return to the Community Development Commission meeting on June 6, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Obethelman; Pope-Ludlmn; Miller. Noes: Commission Members Devlin. Abstain: None. Absent: None. COMMISSION MEMBERS CURLIN AND HERNANDEZ WERE EXCUSED AT 4:49 P.M. ECONOMIC DEVELOPMENT AGENCY ADMINISTRATOR TIMOTHY STEINHAUS WAS EXCUSED AT 4:59 P.M. 13. FY 1994.1995 COMMUNJTY DEV~LOPMENT BLOCK GRANT (CDBG) PUBLIC HEARING. SCHEDULED FOR 3:00 P.M. (Mayor and Common Counc:iI) Mayor Tom Minor opened the Public Hearing at 4:59 pm. Kenneth J. Henderson, Executive Director, Development Department summarized the infonnation detailed in the Staff Report. "lit R . ....fIll Community Development Citizens Advisory Committee member Bill Lusk reported on the four-day application review process, organization presentations, as well as the voting procedures used for preliminary and final recommendations of program funding. He commended staff for their worlc and conduct. The following individuals requested that the Mayor and Common Council reconsider Community Development Block Gmnt funding of their programs: Mr. Seiuli Noa, 1604 Ninth Street, San Bernardino, CA, Vice President, Boys and Girls Club of San Bernardino, for facility renovations and program administration. RACHEL CLARK, CITY CLERK, LEFT THE COUNCIL MEETING AND WAS REPLACED BY DEPUTY CITY CLERK, MELANIE VALE AT 5:01 P.M. COUNCIL MEMBER F. J. CURLIN ARRIVED AT 5:01 P.M. Mr. Jerry Herndon, 6130 Rogers Lane, San Bernardino, CA. Executive Director of the Boys and Girls Club of San Bernardino. Ms. Lori Panzino. P. O. Box 8127, ReuhUlus. CA. spoke in support of Belhlehem House for road repair improvements. -. a ---------------------------------------------------------------- KJH"'Ie,MlNU'1ESIO<W-tl.odo 12 COMMISSION MINUTES DATE: May 16, 1994 ....,j; JOINT REGULAR MEETING 2ft- [ ".... '- [ COUNCIL MEMBER DAVID OBERHELMAN WAS EXCUSED AT 5:12 P.M. Ms. Peggy Huber, 25167 Besel Drive, Crestline, CA, representing Inland Empire Deaf Community Services. Mr. David Bell, 2596 Macy Street, San Bemardino, CA, representing Easter Seal Society, Head Injury Support Services. COUNCIL MEMBER DAVID OBERHELMAN RETURNED AT 5:14 P.M. Ms. Dianne Von Habsburg, 477 West 14th Street, San Bemardino, CA, representing Easter Seals Society, Head Injury Support Services. Mr. Mike Blatnick, 879 West Edgemont, San Bemardino, CA, representing the Easter Seal Society, Head Injury Support Services program. Mr. Walter Sneider, 119 East Highland, San Bemardino, CA, Police Liaison for Kids Against Crime. Reverend Dennis Brown, 1599 North Mt. Vernon, San Bernardino, CA, representing Impact Ministries and Crusades, crime prevention and drug program. CITY CLERK, RACHEL CLARK, RETURNED AT 5:22 P.M. Ms. Jean Stephens, President, 567 North Sierra Way, San Bernardino, CA, representing Young Women Christian Association (YWCA), rear building construction and reroofmg of pool area. Ms. Linda Drew, Teddy Bear Tymes, for additional $5,000 of tuition assistance for day care services. Pastor Ray Turner, 1583 West Union Street, San Bernardino, CA, representing Boys & Girls Club of San Bemardino. Dr. S'Ann Freeman, Ed.D., Feldheym Library, 555 West 6th Street, San Bemardino, CA, representing the Theatrical Adult Literacy Program. Council Member Obemelman made a motion, seconded by Council Member Miller to close the Public Hearing. The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hemandez; Obemelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Council Member Obemelman made a motion, seconded by Council Member Miller to approve and adopt the Community Development Citizen Advisory Committee (CDCAC) recommendations for FY 94/95 CDBG-funded prognuns. pf()jects ~md activitie~ ood authorize the Executive Dirr'ctor 10 submit the FY 1994-1995 COBG Statement or Ohjectives and Projected Use of Funds to the II,S, Depm'tment of Housing and Urban Development tHUD), ---------------------------------------------------------------- JOINT REGULAR MEE11NG COMMISSION MINUTES DATE: May 16, 1994 K...llcl..:MINUTE.~-1..aclo 13 '/ .-It LT\ Council Member Oberhelman made a motion, seconded by Council Member Miller to approve the resolution as follows: RESOLUTION NO. 94-121 .., I ~ .......J RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE CDBG FUNDING AGREEMENTS BETWEEN THE CITY OF SAN BERNARDINO AND THE ORGANIZATIONS IDENTIFIED IN THE 1994-1995 CDBG FINAL STATEMENT OF OBJECTIVES AND PROJECTED USE OF FUNDS APPROVED BY THE COMMON COUNCIL ON MAY 16, 1994. The above motions carried by the following vote: Ayes: Council Members Negrete; Curlin; Hemandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. COUNCIL MEMBER CURLIN WAS EXCUSED AT 5:32 P.M. Discussion ensued regarding alternative sources of funding for the Boys & Girls Club, Bethlehem House, Easter Seal Society, Kids Against Crime and Adult Literacy programs which were not recommended for funding. COUNCIL MEMBER CURLIN RETURNED AT 5:40 P.M. Development Department Executive Director, Kenneth J. Henderson, reminded the Council that the Community Development Citizens Advisory Committee established a Contingency List of priority for additional program funding which should be considered before additional programs are reconsidered. ... ;'i Council Member Pope-Ludlmn made a motion, seconded by Council Member Hernandez to refer unfunded programs (1) Boys & Girls Club, (2) Bethlehem House, (3) Easter Seals Society, (4) Kids Against Crime, (5) Adult Literacy Program and the Community Development Citizen's Advisory Committee contingency list recommendations to the Redevelopment Committee to explore additional funding sources. ...", The above motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. MEETING RECESSED At 5:50 pm., the Mayor recessed the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority meeting for a five-minute break. MEETING RECONVENED At 5:59 pm., the meeting of the M"ynr and Conunon Council, the Comn)1lJ).il\" Development Commission and Joint Powers Fimmcillg AUllwrily was caJIed to order by Mayor Millor. ...... \i JOINT REGULAR MEETING ---------------------------------------------------------------- K.lH:cI":MINU1I!SIIW-11.odo 14 COMMISSION MINUTES DATE: May 16, 1994 ....,J 7+ \. r- I ... r- , ! f. '-- [ ROLL CALL Roll call was taken with the following members present: Chainnan Tom Minor; Commission Members Edward Negrete; Ralph Hernandez; David ObeIhelman; Jerry Devlin. Absent: Commission Members F. J. Curlin; Pope-Ludlam; Norine Miller. ST AFF PRESENT Kenneth J. Henderson, Executive Director, Development Department; Diane Roth, Deputy City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil AJvilO, Executive Assistant to the Council; Shauna Clark, City Administrator; Rachel Clark, City Clerk; Melanie Vale, Deputy City Clerk; Deborah Enay, Administrative Secretary, Development Department. OTHERS IN ATTENDANCE None. COMMISSION MEMBERS VALERIE POPE-LUDLAM AND NORINE MILLER ARRIVED AT 6:00 P.M. COMMISSION MEMBER F. J. CURLIN ARRIVED AT 6:01 P.M. COMMISSION MEMBER RALPH HERNANDEZ WAS EXCUSED AT 6:01 P.M. RS-l. FREEW A Y HOME CENTER (Community Development Commissioq.) (Councilwoman Pope-Ludlam's Recommendation) MOTION: That the Community Development Commission consider providing financial assistance to AI Steward and Associates, Inc., based upon the documentation submitted by Valley Bank of Moreno Valley. Kenneth Henderson, Executive Director, Development Department reported that new infonnation was received this morning. Chino Valley Bank (CVB) is willing to make the $1 million loan necessary to complete the proposed project. The tenns would be for five years (fully amortized), unsecured collateral at prime 6.75% plus one 1 % interest rate. He stated the Commission may wish to consider this infonnation in light of the fonn motion proposed by Councilwoman Pope-Ludlam. COMMISSION MEMBER RALPH HERNANDEZ ARRIVED AT 6:04 P.M. Commission Member ObeIbelman made a motion, seconded by Commission Member Curlin to end this issue and not pursue it further. Discussion ensued relnfive In fhe pp)posed loan tenns. lease payments (In lanrl :tIld huildings. loan penalties. and so forth. JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16, 1994 K,/H:d..:MINUlESltW-1..odo 15 Mr. Henderson asked the Commission to consider either voting to conclude the Agency's process with respect to this project; or, insbuct staff to pursue the necessary financing, with the understanding that if this project is to worlc, the Agency will have to provide Steward and Associates more liberal tenns than Chino Valley Bank to make the project worlc. ...., j I .....J A lengthy discussion ensued regarding monthly costs for debt service and ground lease. Mr. Henderson mentioned the banking institutions evaluation of the loan was based on Mr. Steward's originally submitted pro fonna. Based on the center's 144,000 square feet, assuming the lease mte is 70~ per square foot, with a lease up scenario of 50% first year; 60-65% second year, and up to 85&-90% occupancy. It also assumes the project cannot support additional debt service, over and above the lease payments. Under this scenario, without additional Commission action that would in fact subsidize the project, the debt service is about $30,000 per month. While the infonnation is not very specific, the numbers at present would not allow the project to go forward as proposed. A letter from Chino Valley Bank was just received this morning. Mr. Henderson emphasized that if Commission desires staff to move forward, direction to do such would need to be provided. Mr. Steward stated that his understanding was that the City was going to put up the $1 million. Based on the new infonnation from Chino Valley Bank, Mr. Steward stated he cannot accept a five-year, fully amortized loan. Mr. Henderson noted that Mr. Steward is back to approximately a $20,000 per month payment, to make the land lease payments plus the bank fmancing worlc. He explained that the current $20,276 a month payment would need to be reduced to approximately $7,000. The only way this can be done is by increasing the loan teon. The bank is not going to increase the tenn by that amount, so the Agency would have to assume the bank's assistance with the obligation of paying it off in five years. In turn, Mr. Steward would be provided a fifteen-year tenn or a twenty-year tenn - whatever it takes to reduce the monthly payment to $7,000 per month. .... .~ 'f~ -II Commission Member Pope-Ludlam made a motion, seconded by Commission Member Curlin to continue this item to the June 6, 1994 Community Development Commission meeting. The motion carried as follows: Ayes: Commission Member Negrete; Curlin; Hernandez; Miller. Noes: Commission Member Obemelman; Devlin; Pope-Ludlam. Abstain: None. Absent: None. 14. ADJOURNMENT Council Member Ralph Hernandez made a motion, seconded by Council Member Edward Negrete to adjoum the Joint Powers Financing Authority meeting to Monday, June 20, 1994, at 11:00 a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. The motion carried as fol\(nvs: Ayes: Council Member Negrete; Curlin: HeJtlandez: Obemelman; Devlin; Pope-Ludlall1: fl.lillcr. Noes: None. Abslain: None. Absellt: h)'Hle. ... ---------------------------------------------------------------- KJH:d..:MINIJ1E'''......1..odo 16 COMMISSION MINUTES DATE: May 16,1994 .... JOINT REGULAR MEEllNG [ [ [ 15. ADJOURNMENT At 6:26 pm., Council Member Dave Oberhelman made a motion, seconded by Council Member Hernandez to adjourn the Community Development Commission meeting to Monday, June 6, 1994, at 11:00 a.m., in the Council Chmnbers of City Hall, 300 North "0" Street, San Bernardino, California. The motion carried as follows: Ayes: Council Member Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlmn; Miller. Noes: None. Abstain: None. Absent: None. Respectfully submitted, W{.~, KENNETH J. HENDERSON, Executive Director Development Department ---------------------------------------------------------------- JOINT REGULAR MEETING COMMISSION MINUTES DATE: May 16,1994 K.lH:d":MlNU11!SI9W-11.odo 17 l ~ "wtIIIII ,., I ;1 .... --, ~ , ~ ~ .-J [ [ [ MAYOR AND COMMON COUNOL AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE OTY OF SAN BERNARDINO MINUTES REGULAR MEETING June 6.1994 11:00 8.m. The Regular Meeting of the Mayor and Common Council and the Community Development Commission was held in the Council Chambers, City Hall, 300 North "0" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately 11:04 a.In., on Monday, June 6, 1994. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. 1. Curlin; Ralph Hernandez; David Oberhelman; Jeny Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA There were no public comments. CONSENT CALENDAR The Commission Members requested items numbered "2", "3" and "4" be removed from the Consent Calendar. Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the Consent Calendar items numbered "I" through "4" be adopted except for items numbered "2", "3" and "4", respectively. REGULAR MEETING KJH:lmp:cmin6rl 1 COMMISSION MINUTES June 6, 1994 The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. lIIIlIIIIIIit ......." 1. COMMUNITY DEVELOPMENT COMMISSION MINUTES (Community Develooment Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the minutes of the Community Development Commission of the City of San Bernardino for the meetings of April 18, 1994 and May 2, 1994, be approved as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 2. REDEVELOPMENT COMMITTEE MINUTES (Community Develooment Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, indicated that the minutes for the Redevelopment Committee Meeting of May 19, 1994 were incomplete. He requested the Commission approve the minutes of April 7, 1994, and April 21 , 1994 and allow the Agency to complete the minutes for May 19, 1994. ...... Commission Member Negrete made a motion, seconded by Commission Member Hernandez, that the minutes of the Redevelopment Committee of the City of San Bernardino for the meetings of April 7, 1994 and April 21 , 1994 be received and filed. - The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 3. AWARD OF BIDS - NEW CENTRAL POLICE STATION (Community Develooment Commission) Commission Member Hernandez expressed concern regarding the use of Minority Business Enterprise/W omen Business Enterprise (MBElWBE) firms for this project. Commission Member Pope-Ludlam concurred indicating that she would appreciate hearing a short presentation regarding the use of MBElWBE. She also asked the amount of funds being bonded for this project. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Agency was bonding $10 million and the City, $5 million for the construction of the facility. ~ REGULAR MEETING KJH:lmp:cmin6r 1 2 COMMISSION MINUTES June 6, 1994 ....." !r I .., r- ~ [ Commission Member Miller requested the Commission Members be provided a list showing all the funds spent to date on this project. Rocko Davis, Contractor, stated that he met with the Mayor, several members of the Commission and staff about concerns he had regarding the concrete bid package. He questioned the good faith effort that was put forth in the bid Mr. Davis explained that he contacted one of the MBElWBE developers listed on the bid sheet and they informed him that they were never contacted by the low bidder nor the Agency for participation in this project. Mr. Davis then stressed the need for the Agency to contact developers to ensure proper use of MBElWBE. Charles Montgomery, Contractor, stated that there could possibly be a problem with the way the contract for the police facility was set-up and awarded. He recommended the City review the policy used to award the bids to ensure that nothing was illegally done. Commission Member Hernandez stated that CAL TRANS provided him with a huge document that listed the businesses in the area who qualify as MBElWBE businesses. Kenneth J. Henderson, Executive Director, Development Department, discussed previous actions by the Commission regarding this item. He commented on the local preference criteria used when selecting contractors and also the selection process used to select MBElWBE. Commission Member Hernandez questioned the difference in costs for concrete construction between Bogh Construction with a bid amount of $791,900 and Guy Yocom Construction at $646,094. Mr. Henderson explained that the bid received from Guy Yocom Construction was incomplete at the time it was considered for award. Dennis A. Barlow, Senior Assistant City Attorney, explained the process previously used when hiring contractors for large projects. He stated that staff elected to hire independent contractors for each trade needed r~ther than hiring a general contractor who would be required to subcontract for services. He indicated that a project administrator would oversee the entire project. Commission Member Pope-Ludlam expressed concern regarding the process used to contract this project. She stated that more time was needed to review this issue and requested a special meeting be held Commission Member Oberhelman questioned the possibility of the police department locating to the San Bernardino International Airport Authority (SBIAA) until the completion of the new station. He also commented on the different dollar amounts listed in the staff report versus the bid sheet for the same contract. He also felt more time was needed to review this project before proceeding. Mr. Henderson explained the discrepancy in dollar amounts listed in the staff report indicating that after the low bid was awarded to the contractor, staff conducted value engineering with the apparent low bidder which resulted in the bid amounts being lowered. REGULAR MEETING KJH:lmp:cmin6rl COMMISSION MINUTES June 6, 1994 3 Chairman Minor stated that the general contractor was already awarded for this project. He questioned the legality of making any changes at this time. .... Mr. Steinhaus stated that all bids received were good for thirty (30) days. -- Commission Member Negrete stated that the Commission Members need as much information as possible when making decisions on this project. He requested staff attach all pertinent documents to the staff report for the Commission's review. Commission Member Curlin questioned whether or not a two (2) week time delay would have a major impact on this project. Mr. Steinhaus stated that the bids were received May 9, 1994. Therefore, they would be good until June 9,1994. He also stated that the grading was about 95% complete. Commission Member Miller asked if there was a written agreement that verified that the contractors were in agreement with the lower amount listed in the staff report. Mr. Henderson stated that there was a verbal agreement made during negotiations of the project which would be included in the contract if the Commission awarded the bid. Discussion ensued regarding the process used to request information from staff regarding this project and also the need to ask the contractors to extend their bids. Commission Member Oberhelman made a motion, seconded by Commission Member Curlin, that ,., the matter be continued to June 20, 1994, to give Commission Members an opportunity to address questions to the Economic Development Agency staff, that the response be put in writing; and that EDA staffbe .....J directed to extend the bids to a date past the next meeting. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. RECESSED MEETING Chairman Minor recessed the meeting of the Mayor and Common Council and the Community Development Commission until 3:00 p.m. MEETING RECONVENED The meeting of the Mayor and Common Council and the Community Development Commission was reconvened by Chairman Tom Minor at approximately 6:08 p.m., on Monday, June 6, 1994 . REGULAR MEETING KJH:lmp:cmin6r 1 ~ .~ 4 COMMISSION MINUTES June 6, 1994 ..-i .......- -- [ [ ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; Ralph Hernandez; David Oberhelman; Jerry Devlin; Valerie Pope-Ludlam; and Norine Miller. Absent: None. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Suzanna Cordova, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. 4. INLAND EMPIRE SYMPHONY: STORAGE SPACE IN 201 NORTH "E" STREET BUILDING (Community Develonment Commission) Commission Member Oberhelman stated that the Guthrie Library could possibly generate income for the Symphony. He objected to the Agency providing them assistance of up to $5,000. Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, to authorize an amount not-to-exceed five-thousand dollars ($5,000) to improve prior approved lease storage space to the Inland Empire Symphony on the first floor of the old "Thrifty Building" located at 201 North "E" Street, subject to the Symphony matching each dollar the Agency contributes. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the Commission previously approved this lease to the symphony in February, 1994. However, due to the condition of the space, the symphony elected to locate to another site. Mr. Steinhaus stated that the symphony was unsuccessful in its search; therefore, it is requesting the Agency assist with the repairs needed for the 201 location. He indicated that Main Street had a potential tenant for use of this space and that the City Telecommunications Division was also interested in the space. Commission Member Devlin questioned whether or not $5,000 was an accurate estimate for repairs to the space. Mr. Steinhaus stated that it was staffs estimate that $5,000 would complete all necessary repairs to the space. He indicated that the Symphony was also requested to obtain bids on the repairs needed for a price comparison. He also indicated that the tenant improvements made which include electricity and bathrooms, would be consistent with improvements required by any other user. REGULAR MEETING KJH:lmp:cmin6r 1 COMMISSION MINUTES June 6,1994 5 Commission Member Pope-Ludlam recommended the Symphony use the space that was previously reserved for the Chamber of Commerce. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller, that the Inland Empire Symphony be relocated to the space previously reserved for the Chamber of Commerce; that the Community Development Commission authorize an amount not-to-exceed five-thousand dollars ($5,000) in matching funds for improvements; and that the issue of fire sprinklers be addressed. Dennis A. Barlow, Senior Assistant City Attorney, stated that the space must be equipped with fire sprinklers per the Fire Department. Commission Member Devlin asked if the space was acceptable to the Symphony. Susan Feller, Inland Empire Symphony, agreed that the square footage of the space would be acceptable. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 5. FINANONG OF CENTRAL POLICE STATION (Community DeveloDment Commission) Councilman Oberhelman made a motion, seconded by Councilman Hernandez, to close the public hearing. The motions carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. Councilman Oberhelman made a motion, seconded by Councilman Negrete, that the following resolution be approved and adopted: RESOLUTION NUMBER 94-132 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF A POLICE STATION FACILITY TO STATE COLLEGE PROJECT NO. 4 Commission Member Oberhelman made a motion, seconded by Commission Member Negrete, that the following resolution be approved and adopted: REGULAR MEETING KJH:lmp:cmin6rl 6 COMMISSION MINUTES June 6,1994 , , .....I " 'f! " ...J , ..~ ...J r ...... [ [ RESOLUTION NUMBER 5399 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPROVING THE PROVISION OF FUNDS FOR THE ACQUISITION AND CONSTRUCTION OF A POLICE STATION FACILITY AND MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT OF SAID FACILITY TO THE STATE COLLEGE PROJECT NO.4 Timothy C. Steinhaus, Administrator, Economic Development Agency, commented on use of the funding sources of the State College Project Area. Councilwoman Pope-Ludlam stated that this project would drain the State College Area. She said that if a major project was to be built in this area, there would be no funding available. Mr. Steinhaus explained that there have been various discussions regarding the funding of the police facility. He indicated that there would still be bonding capability left in the State College Area. Timothy Sabo, Special Counsel, Sabo and Green, briefed the Council on the previous discussion held regarding the financing for the facility. He then explained how the Agency became involved in the fmancing process and the need to use the funds available from the State College Project Area. Councilwoman Ludlam spoke of requests received from developers who indicate that they can build a police station for the City and sell it back to the City at the end of a certain time period for SI. Mr. Sabo explained that it would cost the City more in the long run to participate in such a plan versus building the facility itself. The motions carried by the following vote: Ayes: Council Members Negrete; Curlin; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Councilman Hernandez Absent: None. 6. SAN BERNARDINO COUNTY LAW LIBRARY RETENTION (Community Develooment Commission) Commission Member Oberhelman made a motion, seconded by Commission Member Miller, to approve the expenditure of an additional S600,000 to purchase 402 North "0" Street from Bank of America with said amount to be reimbursed to the Agency by the Law Library upon sale of the property to the Law Library. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that the Law Library was contributing $400,000 of the total ofSl million for this project. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETING KJH:lmp:cmin6rl COMMISSION MINUTES June 6, 1994 7 7. EMPOWERMENT ZONESIENTERPRISE COMMUNITIES GRANT APPLICATIONS (Mavor and Common Council) (Community Develooment Commission) ~ i Councilwoman Pope-Ludlam made a motion, seconded by Councilman Negrete, that the following motions be approved and adopted: ......!II That the Mayor and Common Council and the Community Development Commission authorize the execution of a Nominating Local Governments Responsibilities Agreement, between the City of San Bernardino and the State of California. That the Mayor and Common Council and the Community Development Commission authorize the execution of an application form (HUD-40003) for the nomination of an area for Empowerment Zones/Enterprise Communities status. That the Mayor and Common Council and the Community Development Commission approve the submission of a yet-to-be-developed Strategic Plan, a critical component of an Empowerment Zones/Enterprise Communities application package. That the Mayor and Common Council approve an appropriation of $300,000 in funding, to assist in the implementation of Empowerment Zones/Enterprise Communities programs and activities, subject to receipt of a federal zone designation; also that the Economic Development Agency budget be increased accordingly. Kenneth 1. Henderson, Executive Director, Development Department, stated that the proposed target area was determined by meeting certain eligibility requirements set forth in the Federal Register. ,..., 'J -.J The motion carried by the following vote: Ayes: Council Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Councilman Oberhelman. Abstain: None. Absent: None. 8. FEDERAL BANKRUPTCY COURT RETENTION - YMCA PARKING LOT (Community Develooment Commission) Commission Member Miller made a motion, seconded by Commission Member Pope-Ludlam, to authorize the execution of a Parking Agreement with the YMCA to provide 30 parking spaces, on a temporary basis, at a rental rate not-to-exceed $780 per month for usage by the Bankruptcy Court. Commission Member Hernandez commented on actions taken on this item at a previous Commission Meeting at a cost to the Agency of $280,000. He also commented on the need to find a site for the Social Security Office since this space was being used for parking. Discussion ensued regarding the locating of the Social Security Office to Hospitality Lane. The Commission Members also discussed transportation needs for the elderly to the Social Security Office. REGULAR MEETING KJH:lmp:cmin6r 1 ~ f'J, :,1 8 COMMISSION MINUTES June 6, 1994 --" r ..... [ [ Commission Member Negrete spoke about all the vacant buildings within the City. He felt a new location for the Social Security Office could be found in one of those buildings. Commission Member Oberhelman stated that he would abstain from voting on this item since he was on the Board of Directors for the YMCA. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Member Oberhelman. Absent: None. 9. PA YffRA VEL VOUCHER SUBMISSION AND REIMBURSEMENT PROCESS (Communitv Develooment Commission) Commission Member Curlin made a motion, seconded by Commission Member Pope-Ludlam, that this item be tabled. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 10. SAN MARCOS STREET IMPROVEMENT PROJECT (Communitv Develooment Commission) Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that staff would like to continue this item until August 1, 1994, and that staffbe allowed to issue an RFP for this project. Commission Member Curlin made a motion, seconded by Commission Member Miller, that the matter be continued to August 1, 1994, and that staff be directed to issue an RFP for the San Marcos Improvement Project. The motion carried by thefollowing vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 11. FREEWAY HOME CENTER (Communitv Develooment Commission) Commission Member Hernandez made a motion, seconded by Commission Member Negrete, that this matter be referred to the Redevelopment Committee. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETING KJH:lmp:cmin6rl COMMISSION MINUTES June 6, 1994 9 The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam. Noes: None. Abstain: None. Absent: Commission Member Miller. ..... RS-2. OFFICE LEASE - 201 NORTH "E" STREET - JAOUESS AND ASSOCIATES (Community DeveloDment Commission) Kenneth 1. Henderson, Executive Director, Development Department, indicated that the proposed lease agreement with Jaquess and Associates would be for $1.00 a square foot. He recommended the Commission approve the agreement and allow staff to draft and execute a lease with the proposed tenant. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to authorize the Executive Director to draft and execute a lease and all other necessmy documents with John Jaquess and Ken Topping, Professional Planning Consultant Firm, for the utilization of approximately 1,258 square feet of office space on the second floor of the 201 Building. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. RS-3. OFFICE LEASE - 201 NORTH "E" STREET - A.P. ENGINEERING COMPANY (Community Development Commission) ...... Commission Member Oberhelman made a motion, seconded by Commission Member Hernandez, to authorize the Executive Director to draft and execute a lease and all other necessmy documents with A. P. Engineering Company, for the utilization of approximately 154 square feet of office space on the second floor of the 201 Building. -"" Kenneth 1. Henderson, Executive Director, Development Department, stated that this lease would have the same terms as the previous lease (Agenda item #RS-2). Commission Member Oberhelman questioned whether or not the Agency Administrator could have executed this type of lease without Commission approval. Mr. Henderson stated that the Agency Administrator could have executed this lease as long as it is month-to-month tenancy. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. REGULAR MEETINGpKJH:lmp:cmin6r 1 ~. 10 COMMISSION MINUTES June 6, 1994 . - [ [ L RS-l. OFFICE LEASE - PUBLIC ENTERPRISE CENTER - THE COMMUNITY DEVELOPMENT CORPORATION (Community Develooment Commission) Commission Member Pope-Ludlam excused herself from voting on this item since she was affiliated with this organization. COMMISSION MEMBER POPE-LUDLAM WAS EXCUSED AT 7:04 P.M. Commission Member Hernandez made a motion, seconded by Commission Member Negrete, to authorize the Executive Director to draft and execute a lease and all other necessary documents with the Community Development Corporation for the utilization of approximately 1,501 square feet of office space in the Public Enterprise Center. Kenneth J. Henderson, Executive Director, Development Department, stated that this lease was for the Agency-owned Public Enterprise Center (PEC) Building. He stated that the cost for the space would begin at $.50 a foot and top out at $.65 a foot. COMMISSION MEMBER CURLIN WAS EXCUSED AT 7:05 P.M. COMMISSION MEMBER CURLIN RETURNED AT 7:06 P.M. Commission Member Hernandez expressed concern regarding the condition of the PEC Building and the need for management at the building. He recommended the staff and Commission Members tour the facility. Timothy C. Steinhaus, Administrator, Economic Development Agency, stated that staff would tour the facility and prepare a report on its condition. Commission Member Oberhelman concurred with Commission Member Hernandez regarding the condition of the building. He questioned whether or not the cost for the space was a competitive rate to other tenants in the building. Mr. Steinhaus stated that most tenants in the PEC building were Community Services tenants. Therefore, their rates were either lower or at no cost. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Miller. Noes: None. Abstain: None. Absent: Commission Member Pope- Ludlam. REGULAR MEETING KJH:lmp:cmin6r 1 COMMISSION MINUTES June 6,1994 11 12. ADJOURNMENT At 7:09 p.m., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Monday, June 20, 1994 at 11 :00 a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. Respectfully submitted: KE~~NDERSON Executive Director/ Secretary to the Commission REGULAR MEETING KJH:1mp:cmin6rl 12 COMMISSION MINUTES June 6, 1994 ..... ~J ........., --. -J ~. --' ,... l -- c .... ., ......... COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO MINUTES ADJOURNED REGULAR MEETING June 24, 1994 11:308.m. The Adjourned Regular Meeting of the Mayor and Common Council, the Community Development Commission and the Joint Powers Financing Authority was held in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California and called to order by Mayor Tom Minor at approximately 11:34 a.m., on Friday, June 24,1994. ROLL CALL Roll call was taken with the following members present: Chairman Tom Minor; Commission Members Edward Negrete; Dr. F. J. Curlin; David Oberhelman; Jerry Devlin. Absent: Commission Members Ralph Hernandez; Valerie Pope-Ludlam; and Norine Miller. STAFF PRESENT Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis Barlow, Senior Assistant City Attorney; Lorraine Velarde, Executive Assistant to the Mayor; Phil Arvizo, Executive Assistant to the Council; Rachel Clark, City Clerk; Melanie Vale, Deputy City Clerk; La Vonda M-Pearson, Recording Secretary, Development Department. OTHERS IN ATTENDANCE Richard Brooks, The Sun Newspaper; Timothy Sabo, Special Counsel, Sabo and Green. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA There were no public comments CONTINUED FROM JUNE 20, 1994 1. AWARD OF BID - NEW CENTRAL POLICE STATION (Community Development Commission) Chairman Minor read a portion of a faxed letter received from Rocco Davis, Chief Investigator, Center for Contract Compliance. The letter informed the Commission that the center would take no legal action against the City regarding the award of bids. Commission Member Hernandez expressed concern regarding the amount of funds available for change orders. He stated that it would be encouraging to the contractors to submit change orders since the funds were available. ,...... Commission Member Devlin expressed concern regarding the Commission micro-managing this project. f -i Commission Member Oberhelman commented on the language used in the agreement stating that it would not be easy for contractors to submit change orders and have them approved. Commission Member Negrete recommended the verbiage in the agreement be changed from "change orders" to "contingencies". Chairman Minor recommended staff closely monitor this project. Commission Member Devlin made a motion, seconded by Commission Member Negrete, that the bids be awarded in the following amounts to the following companies for work as noted: D. E. F. G. H. A. B. C. $726,500 to Boih Construction. . . . . . . . . . for concrete construction $141,893 to B & B Steel. . . . . . . . . . . . . . . . for concrete reinforcement $973,307 to Columbia Steel ............ for structural steel, metal fabrications, and metal stairs $154,640 to Rowest Company .......... for steel floor and roof deck $ 87,200 to Anninf Johnson COlI\PaIlY '" for composite insulating concrete $ 79,900 to U.S. Elevator. . . . . . . . . . . . . . for hydraulic elevators $336,172 to Continental Plumbirli- Inc. '" for plumbing $ 3,885 to New Frontier Ente(prises . . . . . for underslab electrical --,;/ ~ Commission Member Devlin made a motion, seconded by Commission Member Negrete, to authorize staff to administer and execute contingencies fund limited to the amount of $243,570. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. NB-l. LOAN GUARANTEE - RUBA ENTERPRISE.~ - MR. ATEF FAKHOURY _ AM.PM MARKET. 5985 PALM A VENUE (Community DevelQpment Commission) Commission Member Negrete made a motion, seconded by Commission Member Devlin, that the need to take action arose after the posting of the agenda. Timothy C. Steinhaus, Administrator, Economic Development Agency, explained that the ARCO Station was in immediate need of a loan guarantee that could not wait until the meeting of July 5, 1994. The motion carried by the following vote: Ayes: Commission Members Negrete; Curlin; Hernandez; Devlin; Pope-Ludlam; Miller. Noes: Commission Member Oberhelman. Abstain: None. Absent: None. ....... '!II! "* r -- r L r~ ........, Kenneth J. Henderson, Executive Director, Development Department, explained that Upland Bank, Ruba Enterprises' Construction Lender, committed in writing to also provide Ruba with permanent financing after the construction of the station. Upland Bank has since informed Ruba Enterprises it will no longer be able to provide Ruba with permanent fmancing. Mr. Henderson explained that Valley Bank. was willing to provide Ruba Enterprises with permanent financing, but only with an Agency guarantee on the complete amount of the loan. He stated that staff provided Valley Bank with a counter-offer of a $300,000 loan guarantee, but was denied. COMMISSION MEMBER HERNANDEZ WAS EXCUSED AT 11:50 A.M. Mr. Henderson stated that the bank could possibly release the Agency's guarantee after one or two years if the applicant remains current on his loan; however, a normal guarantee remains in effect the entire length of the loan. Commission Member Devlin questioned the type of deal this would be for the Agency. Mr. Henderson emphasized that the creditworthiness of the applicant was excellent. The only concern faced by the Agency was guaranteeing a AM-PM Market. Commission Member Devlin commented on the applicant's intent to build a Denny's Restaurant across the street from the AM-PM Market. COMMISSION MEMBER HERNANDEZ RETURNED AT 11:54 A.M. Discussion ensued regarding the letter sent to the Agency regarding its guarantee. Commission Member Pope-Ludlam reminded the Commission that the AM-PM Market generates sales tax and hires entry level positions for the City. She commented on the success of the market. She reiterated the need to approve a loan guarantee for the applicant in order to avoid foreclosure proceedings on his construction loan. Mr. Henderson stated that the property was already in foreclosure and the applicant is personal property was at risk. Commission Member Pope-Ludlam stated that once property is in foreclosure, it becomes difficult to obtain fmancing. Atef Fakhoury, owner of Ruba Enterprises, stated that the property was in foreclosure because his construction was not completed on time. He explained that he had a construction loan for nine (9) months and a take-out loan for three (3) months. He indicated that due to various reasons, his construction was not completed within the time limit, and therefore, Upland Bank decided not to award him permanent fmancing. He stated that he had tried over 16 different institutions with no success. Mr. Fakhoury indicated that foreclosure on the property began March 24, 1994. Commission Member Miller questioned comments she was told regarding problems with the City Planning Department. Mr. Fakhoury stated that he was told by the Planning Department that they were short staffed; therefore, he received his permits later than anticipated. ..... Commission Member Hernandez asked if there was any paperwork prepared for this item. ~ -..J Commission Member Pope-Ludlam requested the Commission grant contingent approval to the applicant for the loan guarantee. Mr. Steinhaus explained that staff would continue negotiating with Valley Bank to try and place a time limit on the loan guarantee. Commission Member Devlin made a motion, seconded by Commission Member Pope-Ludlam, to approve in concept, providing a loan guarantee in the amount of $1.3 million to Mr. AtefFakhoury on his loan from Valley Bank. The motion carried by the following vote: Ayes: Commission Members Negrete; Oberhelman; Devlin; Pope-Ludlam; Miller. Noes: None. Abstain: Commission Members Curlin; Hernandez. Absent: None. 2. ADJOURNMENT At 12:18 p.m., the meeting of the Mayor and Common Council/Community Development Commission was adjourned to Tuesday, July 5, 1994 at 11:00 a.m., in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. ~ _~ .i Respectfully submitted: KENNETHJ.H NDERSON Executive Direct r/ Secretary to the Commission ""... ..", - ....